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Speakers: 

Mr. Wu Hao, secretary-general of the National Development and Reform Commission (NDRC)

Mr. Zhu Bing, director general of the Department of Foreign Investment Administration at the Ministry of Commerce

Mr. Hua Zhong, a person in charge of the Department of Foreign Capital and Overseas Investment at the NDRC

Ms. Zhou Yu, a person in charge of the International Department at the People's Bank of China

Mr. Jia Tongbin, a person in charge of the Department of Foreigners Management at the National Immigration Administration

Chairperson:

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

Date:

March 20, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to the regular briefing on the State Council's policies held by the State Council Information Office (SCIO). The Action Plan to Steadily Promote High-Level Opening-Up and Enhance Efforts to Attract and Utilize Foreign Investment has already been released to the public. To provide deeper insights, we are pleased to invite Mr. Wu Hao, secretary-general of the National Development and Reform Commission (NDRC), to introduce the action plan's details and answer your questions. Also attending today's briefing are Mr. Zhu Bing, director general of the Department of Foreign Investment Administration at the Ministry of Commerce; Mr. Hua Zhong, a person in charge of the Department of Foreign Capital and Overseas Investment at the NDRC; Ms. Zhou Yu, a person in charge of the International Department at the People's Bank of China; and Mr. Jia Tongbin, a person in charge of the Department of Foreigners Management at the National Immigration Administration.

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

Wu Hao:

Thank you, Ms. Shou. Good afternoon. Recently, the General Office of the State Council issued the Action Plan to Steadily Promote High-Level Opening-Up and Enhance Efforts to Attract and Utilize Foreign Investment. Yesterday, the full text was published on the Chinese government's official website. Next, I will briefly introduce the relevant information to you.

General Secretary Xi Jinping emphasized that China will continue to improve its level of opening up, build a new system for a higher-level open economy, and consistently create a business environment that is market-oriented, law-based and international. This year's government work report pointed out that we will promote alignment with high-standard international economic and trade rules, steadily expand institutional opening-up, ensure the overall stable performance of foreign trade and foreign investment, and foster new strengths in international economic cooperation and competition. 

To thoroughly implement the guiding principles of important instructions made by General Secretary Xi Jinping, as well as the decisions and arrangements of the Communist Party of China (CPC) Central Committee and the State Council, the NDRC and the Ministry of Commerce, in collaboration with relevant departments, have adhered to a problem-oriented approach. We have widely solicited opinions and suggestions from foreign-funded enterprises, and deeply analyzed difficulties and bottlenecks, as well as demands and hopes expressed by various parties. In light of the new circumstances and requirements, we actively planned a new round of more vigorous policies and measures to attract foreign investment, culminating in the formulation of the action plan.

In recent years, the Chinese government has continuously intensified its efforts to open up, launching a series of policies to stabilize foreign investment and optimize the environment for foreign investors. The introduction of the action plan once again demonstrates our high regard for attracting foreign investment, enhancing beneficial interactions with the global economy through high-level opening-up, and bolstering international investors' confidence in investing in China through concrete actions. The action plan adopts pragmatic measures to attract more foreign investment by expanding market access, facilitating the flow of innovation factors, and aligning with high-standard international economic and trade rules.

First, it further expands the space for foreign investment. The action plan proposes expanding market access and increasing the level of liberalization for foreign investments. A new version of the negative list for access of foreign investment will be introduced, continuing to reduce restrictions on foreign investment access. Additionally, pilot access programs will be launched in areas of great concern to foreign enterprises, such as health care and value-added telecommunications. At the same time, more qualified foreign institutions will be supported to conduct business in areas such as banking, insurance and bond funds.

Second, it further optimizes the business environment. The action plan proposes optimizing the environment for fair competition and providing good services to foreign-funded enterprises. It pushes for the effective implementation and execution of relevant policies, issues rules for fair competition reviews in the field of bidding and tendering, and focuses on eliminating local protectionism and ownership discrimination. It also introduces standards for government procurement of domestic products, requiring that products produced by both domestic and foreign-funded enterprises that meet the standards be treated equally in government procurement activities. Additionally, the action plan proposes improving the scientific rigor of administrative enforcement and promptly correcting irregular administrative enforcement actions.

Third, it further enhances the facilitation of cross-border factor flows. The action plan proposes facilitating the flow of innovation factors and promoting innovation cooperation between domestic and foreign-funded enterprises. Regarding the travel of business personnel, the action plan specifies that the visa validity period for management and technical personnel in foreign-funded enterprises, as well as their accompanying spouses and minor children, will be extended to two years. Additionally, it will provide greater convenience for foreign talents, facilitating their work, stay, residence and permanent residence in China. In terms of data flow, the action plan will promote the safe and orderly cross-border transmission of data related to research and development, production and sales of foreign-funded enterprises. It will also develop data transfer standards for the Guangdong-Hong Kong-Macao Greater Bay Area to facilitate convenient data flow within the bay area.

Next, the NDRC and the Ministry of Commerce will work with various regions and government departments to ensure the effective implementation of the action plan. We welcome foreign-funded enterprises and all sectors of society to provide suggestions and feedback on the implementation of the action plan. We will consider the satisfaction of enterprises and the public as a significant benchmark, striving to create a world-class business environment that is market-oriented, law-based and international, and provide service guarantees for foreign-funded enterprises investing and operating in China.

That is all for my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Wu, for your opening remarks. We will now move to the Q&A session. Please identify the media outlet you represent before raising your questions.

CCTV:

We noticed that both the Government Work Report and the action plan call for the expansion of the Catalogue of Encouraged Industries for Foreign Investment . What does the NDRC plan to do in this regard? Also, in what areas will foreign investment be encouraged in the future? Thank you.

Wu Hao:

Thank you for your questions. The Catalogue of Encouraged Industries for Foreign Investment is an investment promotion policy stipulated by the Foreign Investment Law and its supporting rules and regulations , encouraging and guiding foreign investors to invest in certain industries, areas and regions. The current 2022 edition of the Catalogue is now under revision. For more details, I will hand over to my colleague, Mr. Hua Zhong, from the Department of Foreign Capital and Overseas Investment.  

Hua Zhong:

Thank you, Mr. Wu, and thanks for the questions from CCTV. Here is more information on what's underway with expanding the Catalogue of Encouraged Industries for Foreign Investment.

The 2022 edition of the Catalogue contains a total of 1,474 items, including 519 items applicable nationwide and 955 items that target priority industries in central and western regions. Currently, eligible foreign investments in encouraged categories can enjoy three preferential policies in accordance with the law: (1) equipment imported for self-use in foreign investment projects within the total investment amount shall be exempt from customs duties (except for those listed in the Catalogue of Imported Major Technical Equipment and Products not Eligible for Tax Exemption and the Catalogue of Products Imported for Foreign Investment Projects and Not Eligible for Tax Exemption); (2) a reduced corporate income tax rate of 15% is applicable for qualified enterprises in encouraged industries in the western region and Hainan; and (3) priority access to land supply is granted to encouraged industrial projects with intensive land use, and the base price for such land may be set at no less than 70% of the national lowest price for industrial land of the same grade as the land in question.

According to the requirements of this year's Government Work Report, the NDRC, in collaboration with relevant departments, has initiated the revision of the Catalogue. During the process, we will engage in extensive consultations through field research, discussion forums and other forms with foreign chambers of commerce and foreign-invested enterprises to gather a wide range of opinions and demands. Our preliminary considerations include: first, the revision of the national catalogue will continue to prioritize foreign investment in the manufacturing sector while also promoting the integrated development of the service and manufacturing sectors. We will increase support for fields such as advanced manufacturing, modern services, advanced and new technologies, and energy-saving and environmental protection. We welcome multinational companies to continue expanding their investments in these areas within China and deepen cooperation with upstream and downstream enterprises for mutually beneficial and win-win development. Second, the revision of the catalogue for central and western regions will fully leverage the local resources and industrial conditions, appropriately increasing support for basic manufacturing, applicable technologies and consumer welfare projects. With rich resources, a vast market and sufficient human resources, China's central, western and northeastern regions enjoy increasingly better business environments. We invite global multinational companies to focus more on these areas and expand their operations there. Thank you!

Economic Daily:

We've noticed that the People's Bank of China (PBC) has frequently organized seminars with foreign-funded institutions to enhance dialogue. Additionally, last year saw the establishment of financial working groups with both the U.S. and the EU . Could you discuss the impact of financial diplomacy in stabilizing foreign investment? Thank you.

Zhou Yu:

Thank you for your interest in the People's Bank of China's work. Since last year, the PBC has intensified its efforts in international communication and collaboration. We've engaged actively with our counterparts in other countries' financial regulatory authorities and enhanced interactions with various international financial organizations and foreign financial institutions, particularly large multinational banks. These efforts have played a significant role in stabilizing foreign investments.

Speaking of our communication with international counterparts, as you might have noticed, the PBC has worked with U.S. and EU counterparts in establishing two working groups, namely, China-U.S. Financial Working Group with the U.S. Department of the Treasury, and the China-EU Financial Working Group with the Directorate General for Financial Stability, Financial Services and Capital Markets Union of the European Commission. These two groups signify the first dedicated communication and coordination mechanisms in the financial sector that the PBC has established with two of the world's leading economies, the United States and the European Union. To date, the China-U.S. Financial Working Group has convened three meetings and we just concluded the first meeting of the China-EU Financial Working Group yesterday. We also maintain similar cooperative and communicative mechanisms with BRICS nations and some neighboring Asian countries. These mechanisms are useful in the following aspects. First, they enhance our policy dialogue concerning macroeconomic issues, monetary policy and financial stability, thereby improving our mutual understanding of each other's policies and aid in our macroeconomic policy formulation.

Yesterday, a counterpart from the European Union offered an excellent description. He said that previously he had only known us by name, but now, through dialogue and interaction, he can connect our names with our lively faces, and that we now know who to contact in order to solve issues through conversation. 

Second, other than policy communication, both sides also offer support for financial institutions to solve specific issues through such exchange mechanisms and arrangements, so they can better operate businesses in each other's markets and jointly help boost the prosperity of the economy and the financial sector. In communication and exchange with major economies, we often compare notes on issues regarding international financial trends and global economic and financial stability. This kind of communication and exchange is also a type of global public good conducive to global financial stability. 

In addition to improving policy-related discussions in financial areas between financial regulators, we also focused on enhancing direct communication with foreign financial institutions. The PBOC has a great tradition of regularly holding talks with foreign financial institutions and enterprises, presided over by PBOC heads. Through face-to-face discussion, we listen to what the foreign institutions have to say, learn about their demands regarding business operations and reply to their questions on regulatory policies. We are more than happy to resolve their doubts and boost trust. Issues are solved on site wherever possible and unsolved ones will be itemized and tackled later on. 

As just mentioned, yesterday we held the first meeting of the China-EU Working Group on Financial Cooperation. As part of this communication mechanism of financial regulators, we specially hosted a China-EU Financial Roundtable yesterday afternoon where financial authorities from both sides heard the ideas and suggestions of nearly 30 banks, security firms, insurers, asset managers and credit bureaus from China and Europe. These financial institutions analyzed key areas to promote China-EU financial cooperation in the next steps while also sharing difficulties they've faced in practice and demands regarding business operations. Financial regulators from both sides readily agreed to take down these issues as "homework" to be completed, tackling these issues as early as possible in order to achieve tangible achievements as the result of cooperation. 

For example, to address the concerns of financial institutions, we focus on two aspects. First, cross-border flow of financial data. There are national regulations with cross-border data flow. The financial sector is data-intensive and subject to strict regulations. The cross-border data flow in this sector has its specificities. We learned about the demands of multinational financial institutions and conducted thorough study and research. On this basis, the PBOC is working with several other financial regulators to design an institutional arrangement for cross-border flow of financial data, to determine key data catalogues for the financial sector and to establish unified regulation and compliance standards. By adopting these measures, we guide foreign institutions with clearer regulations. With ensuring our financial and data security as the prerequisite, we pledge to do our best to help foreign financial institutions lower their compliance costs regarding cross-border data flow and improve efficiency of data transmission, enabling more agility and convenience in their Chinese operations to attract more foreign investment. 

Second, payment-related matters. We all know that China leads the world in terms of mobile payment. But due to varied payment habits, many foreigners have found it difficult to make payments in China. Lately, we issued a number of measures to improve payment services. We also released a payment guide for foreign nationals in China. I brought one with me today after handing out one to each of our EU counterparts yesterday. They thought the guide could come in handy and help them solve payment issues they might encounter while staying in China. We also plan to begin providing help at an earlier stage, offering the guide to foreigners even before they come to China so that, upon arrival, they will be able to enjoy more convenience payment-wise. 

In short, by talking to international peers, multinational financial institutions and foreign financial institutions, we are able to better understand each other's policies and help business entities effectively solve issues encountered in daily operations. These solid efforts improve the business environment and make China's financial sector more appealing. Thank you. 

N Videos at Southern Metropolis Daily:

Since last year, the scale of China's utilized foreign investment has declined. What does the NDRC think about this? And how do you plan to proceed with priority tasks? Thank you. 

Wu Hao:

Thank you for your questions. Indeed, we also noticed that domestic and international media recently showed much interest in the amount of China's actual utilized foreign investment. I believe this reflects concerns over whether or not China will continue to expand openness. General Secretary Xi Jinping stressed repeatedly that China's door of opening up will not be closed, instead it will open even wider. China firmly champions and safeguards economic globalization. We believe that opening up is an important force for boosting globalization. As for the issue of utilized foreign investment that you just mentioned, we may interpret it from three dimensions: 

First, from a global perspective, fluctuation in global cross-border investment is normal. In recent years, with the intertwining of global turmoil and increasingly complex global economic conditions, fluctuation in global cross-border investment has intensified. In 2021, after reaching a comparatively high level, global data showed a sustained decline. In January of this year, the "Global Investment Trends Monitor" released by the United Nations Conference on Trade and Development showed that global cross-border investment had decreased by 18% in 2023 after excluding transshipment factors in multinational enterprise investments. In such a context, China has maintained a robust momentum in attracting foreign investment.

Second, viewing from a longer time frame, China's actual utilization of foreign investment in 2023 remained at a historic high. Since the reform and opening up, China's actual utilization of foreign investment has continued to increase, becoming an important investment destination for global transnational corporations. Despite some fluctuations in the numerical scale of foreign investment in China during 2023, an assessment from both quantitative and qualitative standpoints reveals a more objective picture. In terms of quantity, China's actual utilization of foreign investment exceeded 1.1 trillion yuan last year, ranking the third highest on record. In terms of quality, the structure of foreign investment utilization in China continues to improve. In 2023, the proportion of investment in high-tech industries reached 37.4%, an increase of 1.3 percentage points compared to 2022, and the proportion of investment in the manufacturing sector reached 27.9%, an increase of 1.6 percentage points.

Third, from the perspective of future trends, China has significant advantages in attracting foreign investment, offering vast opportunities. China is the world's largest and most promising market, continuing to release enormous demand in advanced manufacturing, new urbanization and the upgrading of a structure for consumption. At the same time, China has a good and stable policy environment and the most complete industrial system in the world, which can provide multinational companies with efficient and reliable industrial support systems. China's growing infrastructure network, abundant talent resources and rich innovative application scenarios create a good investment space for foreign companies to expand into new technologies, industries and business models. Last year, the number of newly established foreign-funded enterprises in China increased by 39.7%, fully reflecting the enthusiasm of foreign capital in sharing opportunities in the Chinese market and their confidence in future investment prospects.

We believe that for multinational companies, partnering with China means embracing opportunity, and investing in China means investing in the future. Moving forward, the NDRC will work with various regions and departments to advance high-level opening up in accordance with the decisions and deployments of the Party Central Committee and the State Council. The focus will be on four aspects: First, we will steadily expand institutional opening up in terms of rules, regulations, management and standards to accelerate the creation of new hubs for opening up. Second, we will reasonably reduce the negative list for foreign investment entry, implementing measures to eliminate foreign investment restrictions in the manufacturing sector and further relaxing restrictions on foreign investment access. Third, we will continuously optimize the business environment, ensuring equal treatment for enterprises of various types of ownership and improving the direct communication mechanism for foreign-funded firms as well as resolving specific challenges encountered by foreign-funded projects during implementation and operational phases. Fourth, we will strengthen services for foreign-funded projects. We plan to roll out a new batch of major foreign-funded projects, strengthen the guarantee of project components and promote the inflow of foreign capital through flagship foreign-funded projects. Thank you!

Bloomberg: 

My question is about the 24-point plan that was released last year and then how you plan to update that plan. The commentary from various chambers of commerce — the Japanese Chamber of Commerce, the EU Chamber of Commerce, and the US Chamber of Commerce — is that although the 24-point plan was a good plan, very little of it was actually implemented in the time since. The only real thing I can see is the extension of tax changes. That's been the main thing that has been implemented from that point. So is this new plan an updating of the 24-point plan? Will that be continued? How would that be implemented to improve the business environment? Thank you.

Zhu Bing: 

Thank you for your question. First of all, last year, the State Council issued the "Opinions on Further Optimizing the Foreign Investment Environment and Increasing the Attraction of Foreign Investment," which is "the 24-point policy" you just mentioned. Since the introduction of this policy, it has received extensive attention and high praise from the industry. The Ministry of Commerce, together with various departments and localities, has been actively promoting the implementation of various policy measures according to their respective responsibilities. Recently, the Ministry of Commerce, along with relevant departments, conducted a phased assessment and evaluation of the implementation of "the 24-point policy," and adopted methods such as questionnaires and symposiums to solicit feedback from foreign-owned enterprises. Overall, more than 60% of the measures have been implemented or have made positive progress. More than 90% of the surveyed foreign-owned enterprises gave a relatively positive evaluation of our work.

Looking specifically at the progress you asked about, out of the 59 measures in six areas, 10 have been completed. For example, the Cyberspace Administration of China has issued a document explicitly prioritizing "effectively safeguarding the legitimate rights and interests of enterprises online" as a key task in reporting cases of online infringement, established a webpage for online reporting and launched the 12377 hotline number. In December, they highlighted a batch of typical cases, including issues raised by foreign-funded enterprises. The Ministry of Finance and the State Taxation Administration have also issued announcements, extending the implementation period of the tax exemption policy for subsidies received by foreign individuals and the tax refund policy for domestic equipment procurement by foreign-funded R&D institutions until the end of December 2027. They have also lowered the threshold for enjoying the tax refund policy related to domestic equipment. The National Intellectual Property Administration and the Ministry of Justice have issued the opinions on strengthening the adjudication of patent infringement disputes in the new era, further improving the administrative adjudication system and mechanisms. The National Immigration Administration has released a new version of the permanent residence identity card for foreigners, making transportation and daily consumption more convenient for foreign nationals in China. They also introduced measures such as relaxing the conditions for applying for port visas for foreign nationals coming to China. Progress has been made in 28 items at this stage. For example, the Cyberspace Administration of China has formulated relevant regulations on cross-border data flow and is currently seeking public opinions. The Ministry of Finance is actively formulating the definition of "domestically produced" for government procurement products. The National Medical Products Administration has proposed requirements on the application materials for market registration of chemical drugs and therapeutic biological products that are previously produced overseas and now produced domestically, and has sought public opinions on the draft announcement. The State Administration for Market Regulation has issued a work notice with measures to deal with policies that discriminate against foreign-funded enterprises and implement local protection. Meanwhile, 21 items are being continuously promoted. For example, the Ministry of Commerce is leveraging the role of special taskforces focusing on major foreign-invested projects under the coordination and service mechanism for foreign trade and foreign investment. They regularly coordinate and resolve difficulties encountered by these projects. The National Intellectual Property Administration supports relevant localities in setting up intellectual property service stations during exhibitions, strengthening exhibition-related intellectual property services such as issuing exhibition certificates, accepting applications for priority examination of patents, and providing comprehensive consultations.

Last month, we held a dedicated roundtable meeting on the implementation of the 24 Measures for Foreign Investment. We invited nine foreign chambers of commerce in China, including the ones you mentioned earlier — the Japanese Chamber of Commerce and the European Chamber of Commerce, as well as representatives from over 60 foreign-invested enterprises. Many foreign-invested companies and chambers of commerce have recognized and appreciated the tremendous efforts made by the Chinese government to improve the business environment. They have said that the Chinese market has huge potential and numerous opportunities, and they will continue to deepen their presence and expand their investment in China.

Next, the Ministry of Commerce, in collaboration with relevant departments, will continue to promote the swift implementation of various measures, evaluate foreign investment policy implementation, and provide timely updates to foreign-invested enterprises. The action plan is a newly issued document by the Chinese government, which calls for intensified efforts by all regions and departments to attract and utilize foreign investment. With this and the 24 Measures for Foreign Investment, we will strive to excel in this aspect of work. If foreign-invested enterprises encounter any difficulties or issues when trying to take advantages of the policies, then we encourage them to provide feedback to us, to help us better unleash the full benefits of these policies. Thank you. 

Global Times:

We have noticed that at recent State Council executive meetings, strengthening service guarantees in facilitating the flow of innovative elements and reinforcing confidence of foreign investment in China have been emphasized. As such, what additional measures are the National Immigration Administration taking to facilitate the entry of foreign individuals into China to engage in work, study, investment and entrepreneurship. Thank you.

Jia Tongbin:

Thank you for your question. We welcome more foreign friends to come to China to travel, work, study, invest and start businesses. The National Immigration Administration actively provides efficient and convenient immigration management services in terms of policies, mechanisms and procedures. We are collaborating closely with human resources and social security departments to strengthen information sharing, optimize procedures, and integrate application materials, on the basis of law-based and standardized management. We have comprehensively promoted the implementation of a one-stop approval mechanism for work permits and work-related residence permits for foreign nationals, which involves unified acceptance, parallel approval and simultaneous issuance. In order to facilitate efficient processing, the exit-entry administrations of public security authorities can issue residence permits with a validity period of up to five years for foreign nationals who are employed in China and have applied for work-related residence permits for a consecutive period of one or more years. Foreign management and professional technical personnel, as well as members of scientific research and innovation teams, working in well-known enterprises and research institutions, are also eligible for this policy. And for those who meet relevant conditions, permanent residency in China may be granted. Moreover, foreign management and professional technical personnel working in China are allowed to adjust their work positions across regions within the enterprises or institutions they work for or pursue degrees and continue education at domestic universities without needing to reapply for residence permits.  

The NIA has upgraded its services for the convenience of foreigners. For example, after on-site verification by the exit and entry administration departments of the public security organs, foreign nationals who apply for residence permits for the purpose of either investing, starting a business, working or studying in China no longer have to submit their passports during the processing time. If approved, they can receive a residence permit at an agreed time with their passport, thus allowing them to handle relevant affairs that require a passport during the meantime. When foreign nationals apply for visas, they no longer have to submit paper proof of accommodation within China and business licenses of the inviting or employing enterprises, if the relevant information can be verified online through the NIA's trans-departmental information sharing system. In addition, the NIA accelerated its application of information technology to facilitate foreign nationals' access to immigration management services. For example, the NIA launched both a web-based and a mobile edition of its service platform, through which foreign nationals can make online appointments, trace application progress and check personal visa information.

Next, working with relevant departments, the NIA will focus on helping attract talent and investment to foster a world-class business environment in China. We will formulate more active, open and effective entry and exit polices and measures to better serve the country's high-level opening-up, and help attract and utilize more foreign investment. Thank you.

China Daily:

How is China encouraging foreign enterprises to participate in China's high-quality development, especially in the green economy, digital economy and healthcare industry? Is there any specific measure or policy to support foreign enterprises' investment in these fields? Thank you.

Wu Hao:

Thanks for your questions. The green economy, digital economy and healthcare industry are key areas related to new types of consumption to be cultivated as is proposed in this year's government work report. They are also fields with huge potential and hot spots for global cross-border investment. The NDRC is working with relevant parties in this regard. Mr. Hua will give you a detailed introduction.

Hua Zhong:

Thank you, Mr. Wu, and thanks for the questions from China Daily. The NDRC is working with relevant departments on introducing effective measures to encourage and support foreign enterprises' investments in China's green economy, digital economy and healthcare industry, so as to share with them the great opportunities in the country's mega-market.

First, we have launched trials for market access. The action plan proposed that pilot free trade zones (FTZs) in Beijing, Shanghai and Guangdong be allowed to open up fields including the development and application of genetic diagnosis and treatment technologies, on a trial basis, to a few qualified foreign-invested enterprises, and that opening-up measures in information services (app stores only) achieve desired effects in the FTZs. The NDRC will work with relevant departments to effectively implement relevant polices.

Second, we have upgraded services for major foreign-funded projects. Together with relevant departments and provincial governments, the NDRC established a special working group mechanism to accelerate the implementation of major foreign-funded projects by promoting coordination to resolve issues related to project planning, approval, land use, sea use, environmental assessment and energy consumption. For major foreign-funded projects in the green economy, digital economy and healthcare industry, the mechanism will provide whole life cycle service and open green channel to facilitate their early implementation. As of the end of February, a number of such projects, which were listed in the first seven batches of 51 major foreign investment projects, had already started construction and operation in China. 

Last, we have introduced more supportive polices. In recent years, the Chinese government has initiated a series of policies, including the Catalogue for Guiding Industries in Green and Low-carbon Transition (2024 Edition), Three Year Action Plan for "Data Factors x" (2024-2026), and Opinions on Developing the Silver Economy to Enhance the Well-being of the Elderly. Measures have also been introduced to provide financial support for enterprises, including foreign-invested ones, when they invest in the green economy, digital economy and healthcare industry. When amending the Catalogue of Encouraged Industries for Foreign Investment , we fully considered the needs of digital logistics, intelligent manufacturing, biomedicine, energy conservation and environmental protection, and other fields. Thank you.

Nanfang Daily, Nanfang Plus:

We noticed that the action plan requires easing the visa application process for foreign business personnel and their families. Could you brief us on the background and content of relevant policies? Thank you.

Jia Tongbin:

Thank you for your interest in immigration management. The NIA earnestly implements the decisions and arrangements of the CPC Central Committee and the State Council, fulfilling its obligations to serve the country's high-standard opening-up and high-quality development. We continuously deepen reform of immigration management services; advance policy and institutional innovation, as well as system integration and promotion; and promote institutional opening-up in alignment with international high-standard economic and trade rules. These efforts aim to provide better and more convenient immigration management services for foreign investors and business personnel.

Since 2023, more than 20 policies and measures have been introduced to attract and support foreign nationals coming to China, providing services for their work and life in the country.

First, we have been continuously optimizing policies and measures for foreign nationals coming to China. We have promptly resumed and gradually relaxed the conditions for applying for port visas and launched port visa services at more ports. Port visa entry has been streamlined for foreign nationals holding ordinary passports who urgently need to come to China for business cooperation, visits, exchanges, investment, entrepreneurship, tourism, and other purposes. Currently, over 950,000 applications have been processed, bringing the number of issuances back to pre-pandemic levels. The scope of visa-free transit policy has also been steadily expanded. Foreign nationals from 54 countries are currently eligible for up to 72- or 144-hour transit visa-free policies, which are available at 31 ports in 18 provinces (autonomous regions and municipalities directly under the central government) in China. The visa-free transit policy has allowed a total of 550,000 foreigners to come to China for exchanges, cooperation, and business negotiations without visas.

Second, we have actively provided visa facilitation for international business personnel. For foreign nationals engaged in business cooperation, investment, and entrepreneurship in China, a multiple-entry visa can be issued for up to five years if there are legitimate reasons for multiple entries and exits. They can also extend or reissue their visas at the nearest location. After implementing the above policies, the number of visa applicants in China increased by 150% year on year. In accordance with the deployments of the action plan, two-year valid visas have been issued to foreign management and technical personnel of foreign-invested enterprises. Accompanying spouses and minor children are also eligible to apply for visas of the same duration. Extension or reissue procedures can be carried out for these visas. These measures further facilitate the exchange of international business personnel.

Third, we have been continuously improving immigration and entry-exit administration services. We have developed multilingual government websites and new media platforms to provide timely updates on policies and regulations concerning visa applications and the entry of foreign nationals into China. The 24-hour service hotline of the National Immigration Administration's (NIA) 12367 government affairs service platform has been launched globally. Since 2021, the 12367 service platform has provided consultations and resolved issues for more than 7 million people, achieving a service satisfaction rate of 97%. Relevant policies and measures have effectively promoted the exchange of foreign business personnel, stabilized expectations for development in China, and helped create a first-class business and foreign investment environment.

Next, the NIA will continue to focus on attracting and utilizing foreign investment with greater efforts. We will take the initiative to coordinate with relevant authorities and continue to deepen the reform of immigration management services, along with policy and system innovation. We aim to accelerate institutional opening-up, actively support the construction of a new development pattern, and promote a high level of opening-up to the outside world. Thanks.

China News Service:

We have noticed that the action plan calls for continued efforts to build the "Invest in China" brand. What steps will the MOC take to further develop this initiative? Thanks.

Zhu Bing:

Thank you for your question. Last year, in accordance with the State Council's directives, the MOC conducted a series of activities for the "Invest in China Year" campaign. We organized 20 key activities, including launch ceremonies, keynote forums, summit meetings, and special promotional events, to build communication platforms and facilitate the signing of numerous foreign investment projects.

The Central Economic Work Conference and the government work report both called for the building of the "Invest in China" brand. Moving forward, we will earnestly implement the decisions and deployments of the Party Central Committee and the State Council, and develop the "Invest in China" brand across three areas in accordance with the requirements of the action plan.

First, we will create high-quality activities. In 2024, we will combine "go-global" and "bring-in" investment promotion strategies and host over 20 high-quality events both domestically and internationally. On the morning of March 26, we will co-organize the first landmark event with the People's Government of Beijing Municipality at China National Convention Center. Many multinational companies have signed up for the event. According to statistics, over 60 general managers for the China region and higher-level executives have confirmed their participation. Additionally, we will host a series of activities such as "CIIE goes local" and local-themed promotions in various locations, as well as conduct promotions in Europe, the U.S., Japan, South Korea, and the Middle East. We welcome friends from the media to continue paying attention to "Invest in China" activities and help us promote it.

Second, we have provided high-quality services. Last year, we upgraded and established a roundtable conference system for foreign-funded enterprises and actively listened to the opinions, suggestions, and issues raised by these enterprises. So far, we have organized 17 roundtable conferences of various types, coordinated and resolved over 600 difficulties and problems raised by foreign enterprises, and identified a new batch of key foreign investment projects. We will continue to leverage the role of specialized groups for key foreign investment projects and hold monthly roundtable meetings with foreign-funded enterprises. We will make good use of channels such as the system for "collecting and handling problems and issues of foreign-funded enterprises" to address their concerns in a timely manner. In addition, we will further strengthen the "full life cycle" service guarantee for key foreign investment projects. This includes expediting project implementation, accelerating production, and achieving production targets ahead of schedule.

Third is to create a favorable environment. Since the introduction of the 24 pro-foreign investment measures , we have prompted relevant departments to implement support policies in a timely manner, continuously magnifying the benefits brought by our polices. At the same time, we will actively implement the MOC's functions described in the action plan, make continuous efforts in expanding access, promoting investment, improving services, optimizing the business environment and aligning with international high standards. All the efforts will accumulate positive effects in line with the 24 measures, strengthening the sense of fulfillment for enterprises. We will also work with all parties to implement the Foreign Investment Law and its implementation guidelines, comprehensively ensure that foreign enterprises can enjoy the same benefits as local ones, and create a world-class business environment.

Market News International: 

Since the introduction of Northbound Trading of Swap Connect , what is your evaluation of Swap Connect so far? Will the PBOC increase the current trading quota? And what new measures will the central bank take for the further opening of China's bond and derivatives market? Thank you.

Zhou Yu:

Thank you for your question. Swap Connect is indeed an important measure to prompt the opening-up of China's financial market in recent years. Its main function is to assist overseas investors to better manage their interest rate risks, which is very helpful to enhance the attractiveness of the domestic financial market. Since its launch in May last year, from our observations, it has been operating smoothly, achieving a total transaction volume of 1.2 trillion yuan in less than a year as of the end of last month. You also asked about its quota. Based on the current situation, the existing quota is sufficient. Of course, we also considered this, and if the quota is insufficient in the future, we have a communication mechanism with the Hong Kong regulatory authorities. We will consider increasing the quota in a timely manner based on the actual situation of market development.

You also asked about the opening-up of China's bond and derivatives market. I would like to give you a brief introduction. The opening-up of China's financial industry mainly includes two parts: one is the opening-up of financial markets you just asked about, and the other is the opening of financial services. Regarding the opening-up of financial markets, we continue to steadily expand the two-way opening-up of financial markets. The well-known market interconnection mechanisms, such as Shanghai-Hong Kong Stock Connect , Shenzhen-Hong Kong Stock Connect , Bond Connect , and Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (Cross-boundary WMC) , are all operating stably. With the arrangement of these mechanisms, we are also constantly exploring new measures to make investors' investment activities more convenient under these mechanisms.

For example, in January this year, we worked with the Hong Kong Monetary Authority to include bonds under Bond Connect into the scope of eligible collateral for the Hong Kong Monetary Authority's renminbi liquidity arrangements, and opened up the business for overseas investors to participate in domestic bond repurchase . Previously, only overseas central banks, overseas sovereign institutions and overseas renminbi business clearing banks could participate in bond repurchase. However, since this opening-up, all overseas institutions entering China's inter-bank bond market can participate in our bond repurchase. This approach can enhance the attractiveness of China's bond market.

At the same time, we are also continuously optimizing the pilot of the Cross-boundary WMC. For example, a recent measure is that the sales business of renminbi deposit products of mainland banks is now included in the scope of eligible products for Northbound Trading. As of the end of February, the total amount of China's bonds held by overseas institutions was 3.95 trillion yuan, close to 4 trillion yuan, and the growth rate has remained at about 30% in recent years. This also shows the achievements of the opening-up of China's financial market and demonstrates the attractiveness of China's bond market.

Another important aspect of financial openness is the opening of the financial service industry, also known as the access issue of foreign financial institutions. From the perspective of access, since 2018, we have significantly relaxed market access in the financial service industry, which has received positive feedback and attracted more than 110 foreign financial institutions to operate in China. In November last year, we issued a bank card clearing business license to Mastercard NUCC Information Technology (Beijing)Co., Ltd, the joint venture of Mastercard and NetsUnion Clearing Corporation (NUCC) .

For foreign financial institutions, it is not only access that is important, but also their operations. In terms of operations, while treating Chinese and foreign financial institutions equally, we also fully consider the uniqueness of foreign financial institutions and understand some practical difficulties and demands they encounter when operating in China. Under the premise of maintaining fair competition, we are working to create a better business environment for them. For example, the PBOC has introduced a carbon reduction supporting tool, a structural monetary policy tool, through which low-cost loans are provided to financial institutions. When it was first launched, only Chinese-funded financial institutions could enjoyed such low-cost loans.. However, many foreign institutions showed interest. In a safe and secure manner, we fully considered the demands of foreign institutions and continuously expanded the scope of financial institutions that can participate in the scheme for carbon reduction.. To date, 13 foreign banks have now been included, which is a practical measure demonstrating our continuous expansion of opening-up.

Overall, we have been constantly improving our financial supervision capacity. On the premise of maintaining financial security and financial stability, we have coordinated openness and security, continued to strengthen the connectivity of domestic and overseas financial markets, and created a market-oriented, law-based and international world-class business environment to attract more foreign investment and long-term capital to do business in China, take root and bear fruits. Thank you.

Shou Xiaoli:

We will have one last question.

ThePaper.cn: 

Aligning with international high-standard economic and trade rules and deepening reforms in relevant domestic fields are important tasks for attracting foreign investment. What work has MOFCOM done in this area? What are the considerations for the work in the next stage? Thank you.

Zhu Bing:

Thank you for your questions. In September last year, General Secretary Xi Jinping emphasized the need to be more proactive in aligning with international high-standard economic and trade rules and steadily expand institutional opening up with regard to rules, regulations, management and standards, when presiding over the eighth group study session of the Political Bureau of the CPC Central Committee . Setting out from its responsibilities, MOFCOM is actively implementing the work from both internal and external aspects.

In the external area, we have taken the initiative to align with high international standards and promote the construction of free trade zones. In 2023, we signed free trade agreements (FTAs) with Ecuador, Nicaragua and Serbia, respectively, and signed a protocol to further upgrade the FTA with Singapore. In February this year, we signed an FTA early harvest arrangement with Honduras. At present, we have signed 22 FTAs with 29 countries and regions, covering more than one-third of total foreign trade. Moreover, the level of our negotiation and signing of FTAs is getting higher and higher. For example, in the new agreements signed with Nicaragua and Singapore, we made commitments to high-level trade in services and investment openness in the negative list. At the same time, we are actively promoting negotiations on FTAs such as Version 3.0 China-ASEAN Free Trade Area , and actively driving accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA) , conducting multi-channel communication and consultation with members in accordance with the CPTPP accession procedures, and holding over 10 rounds of consultations with DEPA members at all levels to complete the preliminary discussions on all terms. Next, we will actively promote relevant FTA negotiations or upgrade negotiations, continue to expand the global network of high-standard free trade zones, further increase the proportion of zero-tariff products in trade in goods during the negotiations. We will expand the openness of trade in services and investment in the form of negative lists, expand the opening-up of telecommunications, medical and other service industries in an orderly manner, expand market access for digital products and other markets, and actively align with high-standard economic and trade rules such as the digital economy, green economy, standards certification and government procurement, and promote institutional opening-up.

In the internal area, we have taken the initiative to align with international high-standard economic and trade rules and conduct pilot reforms in relevant fields. Currently, in accordance with the decisions and plans of the CPC Central Committee and the State Council, we have actively aligned with international high-standard economic and trade rules such as the CPTPP and DEPA to deepen reforms in relevant domestic fields, and have achieved positive results. At the same time, we have also taken the initiative to conduct preliminary trials in the alignment of international high-standard economic and trade rules. Last year, we submitted to the State Council and issued the Several Measures for Conducting the Pilot Program of Aligning with International High Standards and Promoting Institutional Opening Up in Eligible Pilot Free Trade Zones and the Hainan Free Trade Port, the Overall Plan for Comprehensively Aligning with International High-standard Economic and Trade Rules and Promoting High-level Institutional Opening-Up of China (Shanghai) Pilot Free Trade Zone , and the Work Plan to Support Beijing in Pursuing the Initiative for the National Comprehensive Demonstration Zone for Further Opening-Up of the Service Sector . We have put forward more than 180 pilot measures in total. Next, MOFCOM will follow the decisions and plans of the CPC Central Committee and the State Council, and work with relevant departments to proactively align with high-standard economic and trade rules, further promote legislation, amendments and policy adjustments in relevant domestic fields, and deepen domestic reforms. At the same time, we will promote the implementation of various pilot measures to deliver results, organize reviews and evaluations in a timely manner, and do a good job in replicating and promoting the pilot measures. We will also give full play to the role of platforms such as pilot free trade zones, free trade port and national comprehensive demonstration zones for expanding opening-up in the service sector, promote preliminary trials at a deeper level and in a wider range of areas to accumulate more experience for the country's high-level institutional opening-up, serve to build a new development pattern, and promote high-quality development. Thank you.

Shou Xiaoli:

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

Translated and edited by Zhang Rui, Wang Qian, Guo Yiming, Liu Sitong, Xiang Bin, Liu Qiang, Liu Caiyi, Yan Xiaoqing, Lin Liyao, Ma Yujia, Wang Ziteng, Yuan Fang, Yan Bin, Zhang Junmian, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Yin Yong, deputy secretary of the Communist Party of China (CPC) Beijing Municipal Committee and mayor of Beijing

Mr. Xia Linmao, a member of the Standing Committee of the CPC Beijing Municipal Committee and executive vice mayor of Beijing

Mr. Jin Wei, a member of the Standing Committee of the CPC Beijing Municipal Committee and vice mayor of Beijing

Mr. Yu Yingjie, a member of the Standing Committee of the CPC Beijing Municipal Committee, secretary of the Education Work Committee of the CPC Beijing Municipal Committee, and a member of the Leading Party Members Group of the Beijing Municipal People's Government

Chairperson:

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

Date:

March 19, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This year marks the 75th anniversary of the founding of the People's Republic of China (PRC), and is also a crucial year for achieving the objectives and tasks laid out in the 14th Five-Year Plan (2021-2025). We will hold a series of press conferences themed "Promoting High-Quality Development," inviting relevant departments from the 31 provinces, autonomous regions and municipalities as well as from the central government. They will introduce measures and achievements in implementing the decisions and arrangements made by the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core. Today, we are holding the first press conference in the series. We have invited Mr. Yin Yong, deputy secretary of the CPC Beijing Municipal Committee and mayor of Beijing, to brief you on leveraging Beijing's strategic role as the national capital and initiating a new chapter in high-quality development, and to take your questions. Also present today are Mr. Xia Linmao, a member of the Standing Committee of the CPC Beijing Municipal Committee and executive vice mayor of Beijing; Mr. Jin Wei, a member of the Standing Committee of the CPC Beijing Municipal Committee and vice mayor of Beijing; and Mr. Yu Yingjie, a member of the Standing Committee of the CPC Beijing Municipal Committee, secretary of the Education Work Committee of the CPC Beijing Municipal Committee, and a member of the Leading Party Members Group of the Beijing Municipal People's Government.

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

Yin Yong:

Friends from the media, good morning. It gives me great pleasure to meet you here and brief you on leveraging Beijing's strategic role as the national capital and initiating a new chapter in high-quality development. I would like to begin by extending, on behalf of the CPC Beijing Municipal Committee and the Beijing Municipal People's Government, our heartfelt appreciation for your long-standing support for Beijing-related work.

The CPC Central Committee attaches great importance to Beijing's high-quality development. General Secretary Xi Jinping has conducted several inspection tours of Beijing and provided personal guidance on key issues, critical plans and priorities related to the capital's long-term development. In line with the grand blueprint for the capital's development, we have outlined specific tasks and worked hard to bring the overall vision to reality. Last year, Beijing's gross regional product (GRP) grew by 5.2% from the previous year to 4.4 trillion yuan ($611.23 billion). General public budget revenue increased by 8.2%, exceeding 600 billion yuan. Per capita GRP remained the highest among provincial-level regions in China, while energy and water consumption per 10,000 yuan of GRP were the lowest. All in all, solid progress has been made in the capital's high-quality development.

This year marks the 75th anniversary of founding of the PRC, and is a crucial year for achieving the objectives and tasks laid out in the 14th Five-Year Plan. Beijing will fully act on the guiding principles of the Central Economic Work Conference and implement the plans made at the annual "two sessions." With high-quality development as our top priority in the new era and Chinese modernization as our principal political objective, we will adhere to the general principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will further incorporate the Five Key Initiatives [namely, building Beijing into an international center for innovation; making progress in building the "two zones" — the Integrated National Demonstration Zone for Opening up the Services Sector and the China (Beijing) Pilot Free Trade Zone; developing the digital economy; stimulating and creating new demand through supply-side structural reform; and making greater headway with Beijing-Tianjin-Hebei coordinated development through relocation of functions non-essential to the role of the capital] into the new development dynamic and redouble efforts to promote the capital's development in the new era.

First, we will reinforce Beijing's role as the national capital and actively fulfill our responsibilities in promoting the coordinated development of Beijing, Tianjin and Hebei province. This year marks the 10th anniversary of advancing Beijing-Tianjin-Hebei coordinated development. With further implementation of the Master Plan of Development for Beijing (2016-2035), we will improve the incentives and set mandatory targets to relieve Beijing of its non-capital functions in a steadfast and orderly way, improve the city's services for the central Party and government bodies, and enhance the city's overall living environment. We will continue to support Xiong'an New Area, with its development as part of our own duties, and set well-conceived annual targets to drive the high-quality development of the Beijing Municipal Administrative Center. In collaboration with Tianjin and Hebei, we will develop a metropolitan area around the capital featuring integrated transport networks, joint eco-conservation actions, seamless sharing of public services, and coordinated functions. Our goal is to turn the Beijing-Tianjin-Hebei region into a pilot and demonstration zone for Chinese modernization.

Second, we will enhance the development of Beijing as an international center for scientific and technological innovation to fully unleash the city's strengths in nurturing new quality productive forces. We will coordinate education, technology and talent resources of Beijing to bolster our scientific and technological capabilities. We will continue to implement action plans to secure the city's leading position in basic research and achieve breakthroughs in core technologies within key fields. Forward-looking plans will be adopted to open up new grounds in future-oriented industries. We will build a modernized innovation-led industrial system and accelerate a number of landmark projects in such sectors as integrated circuits, new energy vehicles and biomanufacturing. To establish Beijing as a global pacesetter in the digital economy, we will strengthen and expand our lead in artificial intelligence, high-level autonomous driving and among other domains. We will work quickly to foster an innovation ecosystem. Pilot reform measures for the Zhongguancun Science Park will be implemented on a rolling basis to elevate it into a world-class science park that better empowers the capital's high-quality development.

Third, we will strive to become a pilot zone for the Beautiful China Initiative, demonstrating Beijing's resolve in fighting against pollution. We will cut carbon emissions, reduce pollution, expand green development and pursue economic growth in a coordinated way. We will step up efforts to keep the skies blue. We will consolidate our gains in air quality improvement. We will work actively and prudently toward peaking carbon emissions and achieving carbon neutrality. To further improve the energy mix, we will scale up green electricity transmissions to our city and work to raise the share of renewable power to 25%. We will continue to turn Beijing into a national forest city, implant vitality into urban park spaces and design a picturesque garden city, enabling citizens to fully enjoy the pleasures of park visits and allowing the city to flourish with natural beauty.

Fourth, we will advance the "two zones" development to further explore Beijing's path toward more in-depth reform and wider opening-up. We will expedite the implementation of the latest work plan to accelerate the development of the Integrated National Demonstration Zone for Opening up the Services Sector and further develop the China (Beijing) Pilot Free Trade Zone in order to cultivate more experiences that can be replicated in other parts of China. We will make "Beijing services" a recognizable brand representing excellent governmental support for business operation by introducing more favorable policies that are readily and swiftly accessible with no requirement for enterprises to complete applications. In doing so, we aim to create a top-class business environment characterized by stability, fairness, transparency and predictability.

Fifth, we will ensure and improve people's well-being to establish Beijing as a model for precision urban governance. By focusing on improving people's well-being in seven aspects and meeting their expectations for a better life in five areas, we will enhance our reform in delivering swift responses to public complaints, effectively addressing issues that our people are most concerned about. We will ensure comprehensive management of the city's transportation system with the goal of raising the rate of green commuting to 75% in the downtown districts. More will be done to support dependent elders and toddlers, including expanding care services for elderly individuals with physical and mental challenges and adding 10,000 public-interest nursery slots for children under the age of three. We will continue to deepen the integrated reform of medical treatment, medical insurance and medicine supplies to better meet the healthcare needs of our citizens. A total of 70,000 units of rental housing for low-income groups will be made available and 80,000 units of government-subsidized housing will be established. To ensure both development and security, we will make our city more resilient, intelligent and livable while stepping up post-disaster recovery and reconstruction efforts. Our goal is to ensure that our people experience a growing sense of fulfillment, happiness and security through solid improvements in our work.

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

Chen Wenjun:

Thank you, Mr. Yin. Now, the floor is open for questions. Please identify the news agency you represent before asking questions.

CCTV:

We all know that the international center for innovation is one of the strategic stances in the "four centers" urban strategy plan that is designated for Beijing by the central government. Mr. Yin, how does Beijing plan to establish itself as the international center for innovation and a hub for high-caliber personnel?

Yin Yong:

Alright, I'll answer your question. Building Beijing into an international sci-tech innovation center is the mission entrusted to the city by the CPC Central Committee. Beijing has a prominent advantage in educational and technological talent and has the foundation and conditions to contribute to the country's self-reliance and strength in science and technology. From a hardware perspective, Beijing is home to 92 universities and more than 1,000 research institutes. It leads the nation in the number of national laboratories and major scientific facilities. Additionally, our R&D intensity has remained at around 6% for many years, ranking at the forefront both nationally and globally. From a software perspective, we have introduced a series of regulations, including those on commercializing scientific and technological achievements and protecting intellectual property rights. We have implemented 24 pilot reform measures in Zhongguancun, continuously solidifying the institutional environment that supports comprehensive innovation. From a talent perspective, Beijing is home to over 550,000 scientific researchers, nearly half of the academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering, and more than a quarter of the experts from the "Ten Thousand Talents Program." We have achieved 411 selections to the global "Highly Cited Researchers" list, ranking first among cities worldwide. Our talent advantage is also prominent in cutting-edge scientific and technological fields. For example, in the highly regarded field of artificial intelligence, Beijing's top AI talents account for about 43% of the national total.

In recent years, Beijing's efforts in building itself into an international sci-tech innovation center has yielded significant results. From the perspective of scientific research outcomes, we have surpassed 262 patent ownerships per 10,000 people and published 1,292 highly cited papers, both of which rank first in the nation. We have also seen the emergence of major innovative achievements such as the new generation quantum computing cloud platform, Quafu, and the ultra-large-scale intelligent model, Wudao 3.0. From the perspective of industrial commercialization, in 2023, the transaction volume of technology contracts in Beijing exceeded 850 billion yuan, with an average of 337 technology-based enterprises being established daily. The numbers of national high-tech enterprises, "little giant" enterprises that utilize special and sophisticated technologies to produce novel and unique products, and unicorn companies all rank first among cities nationwide. From a comprehensive evaluation, Beijing has been ranked first in the Nature Index Science Cities globally for eight consecutive years, entering the forefront of global innovative cities.

Facing a new round of global technological and industrial changes, we will continue swiftly seizing opportunities and maintaining momentum in the following areas.

First, in terms of enhancing our capacity for scientific and technological breakthroughs, we must concentrate firmly on three aspects. First, focus on "breakthroughs" by thoroughly implementing action plans for key and core technologies, striving to overcome technical "bottlenecks" in various fields. Second, focus on "taking the lead" by targeting over 20 areas, such as future information, health, manufacturing, energy, materials, and space, actively seizing the upper hand in future industrial development. Lastly, focus on "upgrading," which involves concentrating on more than 30 sub-fields in sectors of high-end, sophisticated and cutting-edge technologies, bolstering scientific and technological innovation, and continuously enhancing the core competitiveness of our key industries.

Second, we must deepen the reform of the scientific and technological system, focusing on solving four types of problems. To address the disconnection between industry, universities, and research institutes, we emphasize establishing enterprise-led innovation consortia, making effective use of the open competition mechanism for selecting the best candidates to lead research projects, and promoting better coordination between industry, universities, and research institutes. To tackle the difficulties in commercializing scientific and technological achievements, we need to effectively implement the regulations on achievement commercialization, genuinely protect the rights and interests of R&D personnel, and allow them to fully enjoy the benefits of commercialization. Regarding the issue of science and technology parks being "small, scattered, and weak," we adopt a "one park, one plan" strategy to optimize and enhance the development quality of each park. We employ a bottom-out mechanism to compel all parks to improve their operational and management capabilities. To address the lack of vitality among scientific research entities, we grant greater autonomy to new-type R&D institutions. While the government does not interfere with daily activities, we will strengthen third-party assessments and evaluations. For those with poor evaluation results, we will gradually "phase out" support in terms of funding, aiming to bolster the excellent and eliminate the weak.

Third, we will strengthen the training and introduction of talents, and coordinate four types of talents in a systematic way. For leading scientists, we will establish a mechanism for their rapid discovery, introduction and arrangement, and provide special support and guarantee policies for innovative teams. For young scientists, we must make good use of and launch more support programs such as the “Beijing Young Scholars” and “New Scientific and Technological Stars”, provide more long-term and stable scientific research funding, and encourage young talents to take the lead. For outstanding engineers, we will deepen the pilot reform of engineering master and doctor training that integrates industry and education, and cultivate talents that are urgently needed in the industry. For master craftsmen and highly skilled workers, we will strengthen the construction of studios for them and cultivate high-quality industry talents.

Talents are the future and source of vitality in a city. We will make more meticulous efforts in talent-related work, and widen the door for talent recruitment, so that all kinds of talents can find a place in Beijing and give full play to their abilities. Thank you.

Reuters:

Beijing has several high-tech projects in the pipeline, including the expansion of autonomous driving projects by Baidu and Pony.ai and new factories for CATL’s batteries and Xiaomi’s EV production. What more can we expect this year in terms of regulatory efforts to attract more investment in these areas? And what aspirations does Beijing have for its role in EV and AV development?

Yin Yong:

Thank you for your questions. You have noted the layout and development of companies such as Baidu, Pony.ai, Xiaomi and CATL in Beijing. These are closely related to Beijing's high-level autonomous driving projects.

New energy vehicles (NEVs) and autonomous driving (AD) are important forces behind smart transport and may profoundly change the way people travel and urban governance. From the perspective of urban management, we are paying particular attention to the changes that AD may bring. In the past few years, Beijing has conducted in-depth research on the development of AD technology. Through comparative analysis, we found that although the current AD technology is developing rapidly, the cost is still relatively high, and there is still a long way to go to achieve safe and reliable commercial applications. At the same time, it seems that there is no connection between smart AD and the smart development of Beijing. Therefore, Beijing took the lead in adopting vehicle-infrastructure cooperated autonomous driving (VICAD) technology three years ago to promote the development of AD technology. We started in the Beijing Economic-Technological Development Area (located in Yizhuang, southeast Beijing), designating an area of 60 square kilometers for the pilot, which we gradually expanded to 600 square kilometers. The pilot has now entered its third stage. We have created a VICAD system that feeds various data back to self-driving vehicles through intelligent sensing devices on the roadside and the cloud dispatching system. This significantly improves the safety of AD vehicles and reduces the costs and dependence for AD capabilities. We have opened AD vehicle application scenarios from Beijing Daxing International Airport to Yizhuang, and from the three cultural landmarks in Beijing’s sub-center to the subway station, launched an AD freight transport pilot from Beijing to Tianjin Port, and implemented unmanned sanitation vehicles for road cleaning at night. Driverless taxis have also been put into commercial operation. We have achieved exciting results. We are planning a larger-scale construction to connect some of Beijing’s suburban areas. These promotions and applications have brought unexpected results. For example, the AD vehicle service launched by Beijing Daxing International Airport provides passengers arriving at night with more choices; unmanned sanitation vehicles can clean at night no matter the weather conditions, and without getting tired or falling asleep; and driverless taxis provide passengers with greater privacy — with some passengers arranging meetings during their rides. Through the construction of a roadside sensing system, there is improved perception of traffic flow at intersections. Formerly, the signal light timing method at these intersections was relatively fixed, that is, the intervals between light changes were fixed. Now in the pilot area, the daily setting of traffic light intervals at each intersection will be dynamically adjusted 110 times on average per day based on the actual traffic flow on the roads. Take the 160 square kilometers in the Beijing Economic-Technological Development Area as an example. Last year, despite a 20% increase in traffic volume, vehicle speed in the area increased by more than 15%, which contributed toward solving the problem of urban traffic congestion through the optimization of traffic light interval scheduling. 

These exciting practical results inspire us to further deepen the interplay between autonomous driving and smart city construction. We will continue to attract more leading enterprises and research institutions in this field, improve upstream and downstream support for the industrial chain, and welcome various types of capital, especially long-term capital, to increase investment in this area. Our explorations have also attracted significant attention from domestic and international counterparts. Institutions and companies from countries such as the United States, France, Japan and Singapore have come to exchange and discuss ideas. We are willing to share the explorations and practices carried out in Beijing to collectively address the common challenges we face in urban management and social development.

Thank you.

China News Service:

As an international metropolis, how does Beijing continue to enhance its functions as a center for international exchange in the new era? How can it further provide more friendly and convenient government services for foreign-invested enterprises and foreign nationals? Also, we are aware that Beijing has proposed the development of a new pattern for a center for international exchange, known as "one core, two axes and multiple zones." What significant progress has been made so far in this regard, and what are the key priorities for future work?

Yin Yong:

Thank you for your questions. I would like to invite Mr. Xia to answer.

Xia Linmao:

Thank you for your questions. Beijing has always paid a lot of attention to the needs of foreign-invested enterprises and foreign nationals, striving to work on details to make foreign nationals’ work, study, life and travel in the city more convenient. We have created an international version of official portal website in nine languages, including English, French and Russian. Additionally, information services can be obtained by following the English-language "Beijing Service" official account on WeChat. Furthermore, we have built a foreign-related service system covering the entire city, consisting of 416 government service centers at the municipal, district and subdistrict (township) levels. We have 338 service windows dedicated to foreign languages, ensuring multi-linguistic support for various services. The 12345 government service center you are all aware of responses to public needs promptly and is able to handle calls in eight languages; foreign nationals in Beijing can receive many services with their passports; and many services can be provided online, such as hospital appointments, booking tickets for scenic spots and setting up businesses, all from the convenience of their own homes, saving time, effort and money.

Next, we will make greater efforts to address issues that foreign nationals are concerned about. For example, in terms of payment methods, we are focusing on making payments by cash, foreign bank cards and electronics means more convenient. In terms of transportation, we are also in the process of developing an English map of Beijing city, and are collaborating with railways, subways, buses and car rental services to provide better services.

In terms of education and healthcare, in places where significant numbers of foreign professionals live and work, such as the "three cities and one area,” namely, Zhongguancun Science City, the Huairou Science City, the Beijing Future Science City, and the Beijing Economic and Technological Development Area, as well as the Chaoyang district and the Beijing Municipal Administrative Center, we are focusing on strengthening the development of international schools and international hospitals and are optimizing the service experience for foreign nationals, including improving services related to medical insurance settlements and commercial insurance.

In terms of communication, we are further improving the process for both online and in-person registration of phone cards. Regarding airport services, we have established overseas guest payment service centers at both Beijing Capital International Airport and Beijing Daxing International Airport. Additionally, we are expanding the construction of airport integrated service centers to provide services in areas such as consultations, payments, tourism, transportation and telecommunications, so that everyone arriving in Beijing can enjoy a comprehensive range of services.

Regarding the spatial pattern of "one core, two axes and multiple sections" for international exchanges, specifically: "One core" refers to the core functional area; "two axes" refers to the Central Axis and Chang'an Avenue and its extensions; and "multiple sections" include various areas such as the embassy districts and the two international airports, which provide robust support for state diplomacy affairs and people-to-people exchange activities within the city. The quality of traditional areas for hosting national events, such as Tiananmen Square and the surroundings along Chang'an Avenue, has been continuously enhanced in recent years. The international communication function along the Central Axis and its extensions continues to improve. The capacity of the venues around Yanqi Lake to host international conventions has been expanded and upgraded, with both the Yanbai Villa and the Qihu Hotel now operational. Next, we will focus on exploring the potential of historical buildings, themed museums, and characteristic hutongs in the core area, aiming to establish a batch of "national reception halls." We will coordinate efforts to improve the infrastructure construction of the Fourth Embassy District. Progress will steadily continue in upgrading the supporting facilities around Yanqi Lake and the major project of the Beijing base of the China Conservation and Research Center for Giant Panda. Simultaneously, we will focus on improving the service capabilities of the Beijing Olympic Park. By the end of this year, the main construction of the second phase of the National Convention Center will be completed, and the second phase of the New China International Exhibition Center will also finish construction. The ongoing optimization of the hardware and software environment that is internationalized will further burnish Beijing's global image as a historical and cultural hub.

Science and Technology Daily:

It is well known that the annual Zhongguancun Forum is an important platform for China's global cooperation and exchange in science and technology innovation. Could you please provide an update on the preparations for this year's forum? What are the new highlights compared to previous years? Thank you.

Yin Yong:

Thank you for your questions. Mr. Yu will answer them.

Yu Yingjie:

Thank you for your interest in the Zhongguancun Forum. As you mentioned, it is a state-level platform for global sci-tech innovation exchanges and cooperation, consistently emphasizing innovation and development as its core themes. Since 2007, we have successfully convened this event 14 times. Last year's forum was successfully conducted under the strong leadership of the CPC Central Committee and the State Council, with the participation of all parties involved. Over 5,000 guests from 86 countries and regions attended the event, with more than 1,160 domestic and foreign participants delivering speeches. During the main session of the forum, 129 projects were signed with a total value exceeding 81 billion yuan. Additionally, over 1,400 journalists from nearly 200 domestic and foreign media outlets provided comprehensive and in-depth coverage of the 2023 Zhongguancun Forum. We would like to take this opportunity to sincerely thank our media friends for their long-term attention and support for this event.

Approved by the State Council, the 2024 Zhongguancun Forum will be held for the first time at the newly finished permanent venue from April 25-29. This year's theme is "Innovating for a Better World." We will continue to uphold a high-end profile, with a heightened focus on its state-level and internationalized features. The forum continues to be jointly organized by the Ministry of Science and Technology, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission of the State Council, the Chinese Academy of Sciences, the Chinese Academy of Engineering, the China Association for Science and Technology, and the Beijing Municipal Government. Nearly 10 ministries and organizations support the event, including UNESCO, the World Intellectual Property Organization (WIPO), the International Association of Science Parks and Areas of Innovation, and the Ministry of Education. Notably, UNESCO will participate as a supporting organization for the first time. We will adhere to a goal-oriented approach, placing greater emphasis on effectiveness and leadership, closely following international trends in science and technology development. We have planned five main sections, including the opening ceremony and plenary session, nearly 60 parallel forums, the Zhongguancun International Technology Trade Fair, and the Zhongguancun International Cutting-edge Technology Competition, among other key events. Furthermore, the forum will unveil a series of groundbreaking scientific and technological innovations to the rest of the world, effectively showcasing Beijing's achievements in pursuing sci-tech innovation. In addition to the main sessions, we will also host a series of activities throughout the year. Since the beginning of this year, we have organized 28 events focusing on cutting-edge topics such as large-scale model applications, cellular and genetic therapies, and quantum computing. Overall, preparations for the 2024 Zhongguancun Forum are progressing smoothly, and we are committed to ensuring that it becomes a vibrant and effective global platform for sci-tech innovation exchanges and cooperation.

We would like to extend a cordial invitation here to scientists, entrepreneurs, investors, business starters and media from home and abroad to attend the 2024 Zhongguancun Forum to discuss cutting-edge technologies, industrial development trends, innovation rules, and scientific and technological governance, and to share innovative ideas and development concepts, making innovative contributions to the construction of a better world.

Thank you.

Bloomberg:

I had a question about real estate. For Beijing this year, in terms of stabilizing the real estate market, in terms of building more affordable social housing, in terms of redeveloping more parts of the city, are there any plans for 2024 that you can share with us? And in terms of restrictions on home purchases, is there more room to loosen those restrictions either in more districts of Beijing or at a greater degree across the city? Thank you.

Xia Linmao:

Thank you for your questions. Following the decisions and requirements of the Party Central Committee and the central government, the Beijing Municipal Government will scale up "three major projects" — the building of government-subsidized housing, the construction of dual-use public infrastructure that can accommodate emergency needs, and the redevelopment of urban villages — to accelerate the formation of a new real estate model. Just now, Mr. Yin explained that we will raise funds to build 70,000 government-subsidized rental housing units and complete 80,000 affordable housing units this year. We will increase the supply of "one bed" and "one room" products, focusing on resolving the housing problems of new urban residents, young people and migrant workers. In terms of choosing where to locate this housing, we will prioritize areas around subway stations and industrial zones where people work and live, and areas with good support infrastructure. 

At present, some villages located in the city's urban-rural fringe area, where is covered mostly by barriers for afforestation, urgently need improving and upgrading. We call these "urban villages," which have common problems, such as high public health risks, housing with significant fire hazards, underdeveloped support facilities, dirty environment, and challenging social governance. Citizens living in these areas are eagerly awaiting improvements. We will adopt three models in accordance with the functional orientations and development situations of different regions. The first model is demolishing and rebuilding, the second is upgrading and improving, and the third is a combination of the first and second. We will carry out critical tasks and focus on key parts in inner city areas and key ecological nodes. This year, we plan to redevelop 20 urban villages, eliminate potential safety hazards, improve people's quality of life and living environment, and upgrade the quality of urban development. We also hope that some demonstration projects will emerge during the process of redeveloping the urban villages.  

You also asked about real estate policy. We remain committed to the principle that housing is for living in and not for speculation, and are fully implementing Beijing's overall plan. We continue to adopt district-specific policies and targeted measures, and adhere to the principles of encouraging both housing rentals and purchases, integrating urban areas and industries, balancing job opportunities and housing provisions, and fostering an environment conducive to living and working in. We have been improving policies on real estate regulation to meet people’s demand for buying their first home or improving their housing situation, better meeting the multilevel and diverse needs of homebuyers, and promoting the healthy development of the real estate market in Beijing. Thank you.

China Daily:

It is widely accepted that fostering a world-class business environment is an important measure to offset downward risks to the economy and bolster confidence of market entities. We understand that the Meeting of International Business Leaders Advisory Council for the Mayor of Beijing will kick off soon and leading multinational companies will be invited to attend. My question is, how will Beijing further improve its business environment to boost the economic driving forces? Thank you.

Yin Yong:

Thank you for your question. I will answer this one. Fostering a good business environment provides a strong support for enterprises. We have continued to carry out various measures, and listened to enterprises' opinions and advice on Beijing's business environment, such as by visiting enterprises. Last weekend, we visited companies in Beijing such as PwC, Meituan and Alibaba. In a few days, we will hold the Meeting of International Business Leaders Advisory Council for the Mayor of Beijing, which you just mentioned. We will communicate in person with the heads of a dozen leading multinational companies and listen to their insights on Beijing's business environment.

We are keenly aware that there is always room for further improvement in the business environment. Over the years, we have facilitated its development and made leapfrog progress annually. To date, we have introduced more than 1,200 reform measures in this regard, leading to a reduction of over 60% in approval items, a 71% decrease in processing time, a 74% cut in mandatory materials, and the elimination of more than 320 previously-required permits. We have also rolled out the "one integrated license" policy across more than 40 sectors and introduced 62 one-stop government services. In addition, an integrated and comprehensive supervision system has been applied in 50 scenarios in a bid to streamline oversight efforts and prevent disruptions to business activities caused by redundant supervision procedures. Over 90% of business oversight is conducted through the random selection of both inspectors and inspection targets. Looking forward, we will adhere to a problem-oriented approach, improve businesses' sense of gain, and take it as our ultimate goal to enhance the city's strength in business-related services.

We need to make additional efforts in the following aspects:

First, we need to emphasize both top-level design and the experience of businesses. We must adopt both top-down and bottom-up approaches. Regarding top-down measures, we need to study advanced practices from various countries and cities and draw on their useful experience, including the World Bank's business environment evaluation framework. We should take a systemic approach and roll out reform measures across all aspects and links of the business environment, in a bid to comprehensively improve our service capacity and administrative efficiency. As for bottom-up measures, we need to heed the needs of businesses and base our policymaking efforts on their requirements. By addressing specific issues, we need to summarize our experience, develop a sound mechanism in this regard, and continue to tackle the most pressing difficulties and concerns of businesses. Take, for example, the hosting of economic and technological exhibitions involving foreign enterprises. Previously, obtaining approval for such events required 34 working days, 26 pieces of documentation, and nine procedures. However, after streamlining administrative procedures, we now only need six working days and 16 pieces of documentation. Building on this progress, we have extended our efforts to introduce more one-stop government services for approving large-scale commercial performances and sporting events.

Second, we need to provide businesses with both inclusive and tailored services. Inclusive services refer to measures that improve the overall business environment and benefit all enterprises with our reform measures. For instance, when encountering difficulties, many businesses opt to reach out to the service hotline 12345. Currently, this hotline receives an average of over 500 calls per day, redirecting business inquiries to relevant government bodies for further assistance. With general issues resolved within seven days and complex ones within 15 days, the hotline has achieved a satisfaction rate of 96.9% among enterprises. Another example is the mini-program of the People's Government of Beijing Municipality. This versatile mobile application is widely used by citizens to access government services. We have launched a dedicated section for business-related services within this mini-program, providing convenient access to solutions for 158 frequently asked business issues. In addition, recognizing that enterprises used to face difficulties accessing numerous and complex government policies, we have adopted AI models that integrate all sorts of policies and offer precise recommendations to businesses, ensuring more policies are accessed and enjoyed by businesses without the need for application. As for tailored services, we will provide customized services tailored to the needs of each enterprise. We have introduced a package of service policies and a "steward-style service" mechanism, and adopted a list-based management for the needs of enterprises. Both municipal and district-level governments have also established special task forces to deliver tailored services to specific sectors and regions. These task forces regularly visit relevant enterprises and provide all sorts of assistance directly at their doorstep. Such service policy packages and the "steward-style service" mechanism have become key highlights of Beijing's business environment.

Third, we need to focus on both development and security. We have always placed equal emphasis on upholding standardized management and fostering enterprise growth. We also encourage fair competition and compliant development among businesses. We will continue to improve the effectiveness of government supervisory efforts, making them more precise and well-conceived through the utilization of credit- and big data-based supervisory methods. In addition, we will reinforce comprehensive supervisory approaches, significantly increasing remote supervision in daily regulation and reducing the frequency of site inspections. These measures aim to create a safe and high-quality operating environment for businesses.

Thank you.

Hong Kong Bauhinia Magazine:

The Central Financial Work Conference was held in Beijing in late October last year, making arrangements for current and future financial work and setting a target to accelerate the building of a strong financial sector. Being that finance is a very important and competitive industry in Beijing's economic structure, what considerations are being taken into account with promoting high-quality development of the financial industry and ensuring both development and security? Thank you.

Yin Yong:

Thank you for your question. Mr. Jin Wei will answer this question.

Jin Wei:

Thank you for your question. Beijing is the national financial management center, and its total financial assets have amounted to 215 trillion yuan, accounting for approximately half of the country's overall financial assets. The added value of its financial industry makes up one fifth of the city's added value of all industries, and local tax revenue from this sector also accounts for one fifth of the city's total. With a great sense of responsibility, we will strengthen our commitment to fulfilling our mission in financial work.

First, we will coordinate development and security and assume a greater role as the national financial management center. Beijing is the location of central financial management departments with many well-known domestic and foreign financial institutions gathered here. Our primary task is to provide good services. We actively support the construction of infrastructure facilities such as the National Fintech Risk Monitoring Center in order to create a favorable environment for the implementation of financial policies. The number of listed companies on the Beijing Stock Exchange has tripled since its opening, and we will continue to support its strong development. At the same time, we adhere to our responsibilities and duties, continuously improving the quality and efficiency of supervision, strengthening collaboration between the central and local governments, enhancing risk prevention mechanisms at the source, preventing and defusing risks in key areas in a prudent and orderly way, and promoting high-quality development of the financial industry while safeguarding the bottom line of risk control.

Second, we will observe the principle of serving the people and focus on five key areas. These five key areas are very familiar to journalists, so here I will briefly introduce our ideas. In terms of technological finance, we will focus on building the Zhongguancun Pilot Financial Reform Zone for Scientific and Technological Innovation, exploring new models to integrate support through equity, loans, bonds and insurance, establishing government investment funds, deepening the pilot comprehensive service for the registration and transfer of stock options, and maintaining double-digit growth in loans to high-tech enterprises. In terms of green finance, we will explore green financial standards that are in line with international standards and support the China Beijing Green Exchange in building a voluntary emissions trading institution. In terms of inclusive finance, we will carry out special actions, providing more products and more convenient services at lower costs to micro and small businesses. In terms of pension finance, we will guide financial institutions to improve the quality and efficiency of their services in the elderly care industry and accelerate the development of third-pillar pension plans and long-term care insurance, among others. In terms of digital finance, we will leverage Beijing's position as a global benchmark city for the digital economy, accelerate the digital transformation of finance, build 10 application scenarios of digital RMB and 10 demonstration zones for its use, and expand pilot programs for the regulation on fintech innovation. Additionally, we will guide financial institutions to implement the coordination mechanism for urban real estate financing, support the "three major projects" regarding new infrastructure, such as the construction of affordable housing, continue to explore the pilot program for catastrophic insurance, and increase support for post-disaster reconstruction.

Third, we will follow the principle of seeking progress while maintaining stability and take solid steps to promote institutional opening up. We will firmly seize the important opportunities during the construction of the "two zones" and carry out pilot programs such as the integrated capital pooling of domestic and foreign currencies for multinational companies. A number of landmark foreign-funded institutions have successively settled in Beijing.

This year, we will also explore and improve the negative list management for capital projects, continue to advance the QDLP and QFLP pilot schemes, host the Financial Street Forum and Sibos 2024, and promote the opening up of the financial industry to a higher level. Thank you.

Beijing Youth Daily:

Education is an indispensable part of high-quality development for the capital. With the overall decline in the national birthrate, many kindergartens in Beijing have redundant seats and some private kindergartens are experiencing operational difficulties. What considerations does the Beijing municipal government have for these situations and how will it promote the better development of preschool education?

Yu Yingjie:

Thank you for your questions. Preschool education is an important component of basic education and has always been a focus of our government's work. Over the years, Beijing has consistently monitored and analyzed changes in the birthrate and school-age population. As you mentioned, considering the decline in birthrate, empty preschool seats are gradually becoming abundant, especially in private kindergartens where there are more and more vacancies. We have conducted a comprehensive assessment and, based on analysis and study, will simultaneously promote the quality improvement of preschool education and its structural optimization in order to ensure its high-quality development.

First, we will comprehensively improve the quality of preschool education. We will further optimize the resource structure and ensure the availability of resources for public-interest preschool education, responsive to the trends of the eligible population for preschool enrollment. We will further promote the development of the Ministry of Education's experimental zones for improving the quality of preschool education, strengthen the construction of the teaching and research system at the three levels of city, district and kindergarten, and rely on preschool education and research bases to drive the overall improvement of regional preschool education quality. Additionally, we will improve the quality evaluation system and explore scientific evaluation methods.

Second, we will actively promote childcare services. We will conduct childcare work as a forward extension of each child's growth and education chains, implementing an integrated design. We support eligible kindergartens to participate in the pilot program of childcare services, establishing childcare classes for 2- to 3-year-olds while fully meeting the enrollment needs of 3- to 6-year-olds, aiming to provide abundant preschool places for children under three by converting preschool places for children above three. Just now, Mr. Yin said in his opening remarks that, building on the 6,000 new preschool places for children under three last year, 10,000 new places will be added this year to effectively address the needs of childcare services for toddlers.

Third, we will improve our work on private kindergartens. Through enrollment plan management, we will guide private kindergartens to set reasonable enrollment sizes following the supervision and evaluation requirements of the popularization of preschool education for the benefit of all. Simultaneously, we support eligible private kindergartens, especially public-interest ones, in establishing childcare classes. We also support the transformation and development of private kindergartens.

Next, Beijing will maintain the correct direction for preschool education development, enhance the preschool education system and mechanisms, and improve various policy guarantee systems for preschool education. We strive to promote the popularization as well as safe and quality development of preschool education for the benefit of all, meeting the public's expectations for nurturing young children. Thank you!

Chen Wenjun:

The press conference has been going on for nearly an hour, and we will now take the last two questions.

Beijing Radio & Television Station:

Mr. Yin, as Beijing residents, we often call the 12345 citizen service hotline when we encounter problems in our daily lives. We find its response and resolution processes to be effective and convenient, and we hope that the hotline can become even more effective and convenient in the future. How will Beijing deepen the reform of the mechanism of prompt handling of public complaints to better serve the people in the future? Thank you.

Yin Yong:

Thank you for your question. The mechanism of prompt handling of public complaints is a practice that originated from grassroots efforts in serving our citizens. It is an effective means for us to solve pressing difficulties and problems that concern the people most and carry out urban governance that is attentive to detail. It is also an important means for us to implement the philosophy of "the city is built by the people, and the city is for the people."

This reformative practice of serving the people with practical actions has gone through three stages: "departments responding to the call of the township government," "prompt handling of public complaints," and "resolving problems before receiving the public complaints." As early as 2017, a working mechanism of "departments responding to the call of the township government" was established in Jinhaihu, a town in Pinggu district, Beijing, to address the issue of illegal mining. In 2018, we completed a review of and promoted the experiences, implementing the mechanism of "all departments responding to the call of the sub-district and township governments" citywide to improve the efficiency of solving problems for the people. This marked the first stage. In 2019, we improved the mechanism, requiring all departments responding to the call of the sub-district and township governments to process public complaints without delay, and established a service mechanism centered on the 12345 citizen service hotline. This approach allowed for quick responses, efficient handling, and prompt feedback on public complaints and demands. This was the second stage. In 2021, in response to several high-frequency issues commonly reported by the public, we established a "solving one problem per month" working mechanism and proactively addressed major concerns before receiving the public complaints, which marked the third stage. The reformative practice of prompt handling of public complaints has yielded significant results. Last year, the 12345 hotline received an average of nearly 60,000 calls daily and processed 21.44 million complaints from citizens throughout the year, roughly equating to one complaint per resident. The public complaints were 100% responded, of which 95.5% were resolved, and the satisfaction rate reached 96.1%.

Going forward, we will strive to meet citizens' needs for a better life, assuring to handle public complaints promptly. As for the reform this year, we will focus on three key areas: First, we will continue to optimize hotline services and improve the whole working system for receiving complaints, assignments, handlings, and assessments. Particularly, we will improve the mechanism for assessment, effectively utilizing assessment as a tool to ensure more reasonable allocation of public service resources. We will strengthen language services for foreigners, gradually improving the service capabilities of the city as an international exchange center. We will further optimize hotline services for enterprises and dispel enterprises' concerns to make requests. We will enhance integrated hotline services in the Beijing-Hebei-Tianjin region to reduce the need for cross-regional travel. Second, we will conduct monthly campaigns. Based on big data analysis focused on citizens' complaints, we have specified 13 specialized governance tasks, including improving park management services and solving difficulties related to people's well-being. Third, we will leverage data resources, taking public complaints and requests as a means to precisely analyze public opinion, and transform their voices into a reference for decision-making, further improving the ability of joint and precise urban governance. 

Our effort to ensure prompt handling of public complaints is an ongoing process, and there's no end to it. We will do our best to serve our citizens. Thank you.

Economic Daily:

This year marks the 10th anniversary of the coordinated development of the Beijing-Tianjin-Hebei region. What will Beijing do to better leverage its wealth of innovation to benefit the entire region, promoting collaborative innovation and industrial cooperation across Beijing, Tianjin and Hebei? Thank you.

Yin Yong:

Thank you for your question. I will answer it. The coordinated development of the Beijing-Tianjin-Hebei region is a major national strategy. In advancing the implementation of the strategy in recent years, we have continuously deepened our understanding and increasingly felt that the Beijing-Tianjin-Hebei region is a region with the most complementary resource endowments in China. Why do we say that? As is widely known, Beijing boasts advantages in technology, talent and capital. Tianjin has favorable conditions in terms of key industrial layout, port trade and freight logistics. Hebei is highly competitive in natural resources and labor force and has great development potential. Therefore, the three regions are complementary in their advantages, and can realize coordinated development.

In the past 10 years, we have built and improved an integrated working mechanism in the three regions according to arrangements and decisions of the CPC Central Committee, and have accomplished various tasks and objectives in integrated regional development through lists and programs. We accelerated the formation of "one core and two wings," with the framework in Beijing's sub-center now fully operational. Before the Spring Festival this year, we completed the relocation of a second batch of municipal administrative agencies. So far, nearly 30,000 municipal agency staff members work at the sub-center. Xiong'an New Area is developing with sound momentum. Three colleges and one hospital there are already in operation with support from Beijing. The Zhongguancun Science and Technological Park in the Xiong'an New Area is also in operation. The development of regional integrated transportation has yielded fruitful results with travel among Beijing, Tianjin, and Xiong'an only taking half an hour. The commute time of major cities in the Beijing-Tianjin-Hebei region has been shortened to 1 to 1.5 hours. Joint prevention, control and governance of ecological environment has been  continuously deepened. The average density of fine particulate matters in the three regions was reduced by about 60% compared with 10 years ago in 2013. Collaborative innovation and industrial cooperation have been continuously deepened. In 2023, the value of Beijing's technological contracts with Tianjin and Hebei increased tenfold compared to 10 years ago.

Next, Beijing will work with Tianjin and Hebei to focus on technological innovation and industrial coordination, to accelerate developing new quality productive forces and to build a pioneering and demonstration zone for Chinese modernization. We plan to step up efforts in several aspects: First, we will continue to enhance interconnectivity of infrastructure. In a bid to ensure the smooth circulation of people, goods and other elements, we will improve the regional highway network, speed up the construction of inter-city railways and promoting interconnectivity of regional air, land and sea ports. Second, we will deepen coordination of innovation chains and industrial chains. Centering on industrial chains such as hydrogen power and bio-manufacturing, we will roll out tailored policies for each industry to further expand industrial chains and provide supporting facilities, as well as jointly build advanced manufacturing clusters. Third, we will work together to optimize local conditions for development. We will build integrated regional business environments and advance the release of an action plan for fostering first-class business within the Beijing-Tianjin-Hebei region. In terms of administrative services, we will set equal standards for similar items. For example, we will increase the number of enterprises' mutual recognition of qualifications and certifications to over 20. As for public services, joint construction and shared benefits will be enhanced so that high-quality education and medical resources in Beijing will serve more people in the region. Thank you. 

Chen Wenjun:

Thank you, Mr. Yin, other speakers and friends from the media. Today's briefing is hereby concluded. Goodbye.

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

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Read in Chinese

Speakers:

Mr. Li Chao, vice chairman of the China Securities Regulatory Commission (CSRC)

Mr. Yan Bojin, chief risk officer of the CSRC and director general of the Department of Public Offering Supervision of the CSRC

Mr. Shen Bing, director general of the Department of Fund and Intermediary Supervision of the CSRC

Mr. Guo Ruiming, director general of the Department of Listed Company Supervision of the CSRC

Mr. Zhang Chaodong, a person in charge of the Department of Personnel and Education of the CSRC

Chairperson:

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

Date:

March 15, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Li Chao, vice chairman of the China Securities Regulatory Commission (CSRC), to brief you on strengthening regulation and forestalling risks to promote high-quality development of the capital market, and to take your questions. Also present at today's press conference are Mr. Yan Bojin, chief risk officer of the CSRC and director general of the Department of Public Offering Supervision of the CSRC; Mr. Shen Bing, director general of the Department of Fund and Intermediary Supervision of the CSRC; Mr. Guo Ruiming, director general of the Department of Listed Company Supervision of the CSRC; and Mr. Zhang Chaodong, a person in charge of the Department of Personnel and Education of the CSRC.

Now, I will give the floor to Mr. Li Chao for his introduction.

Li Chao:

Friends from the media, good afternoon. Today, we are releasing four key documents. I'd like to take this opportunity to introduce the main background and summarize the contents of these documents.

To thoroughly implement the guiding principles of the Central Financial Work Conference and in accordance with the relevant work arrangements of the State Council, the CSRC, in collaboration with relevant parties, has formulated and issued four documents after careful investigation and research, and gathering opinions from all involved parties. The first document focuses on tightening scrutiny over initial public offerings (IPOs) and improving the quality of listed companies from the source. The second document aims to strengthen the supervision of listed companies. The third document focuses on enhancing the supervision of securities companies and public funds, as well as expediting the establishment of first-class investment banks and investment institutions. Lastly, the fourth document emphasizes implementing strict standards for political integrity, capability development and disciplined conduct, thereby comprehensively enhancing the self-improvement of the CSRC system. Of these four documents, the first three will be released in full today, while the main content of the fourth document on self-improvement will be announced through a press release.

In formulating these documents, we have paid attention to the following aspects:

First, we have adhered to goal orientation and problem orientation. We have focused on accelerating the construction of a safe, regulated, transparent, open, dynamic and resilient capital market, enhancing the market's functions and roles. We did not avoid contradictions, faced problems directly, effectively responded to market concerns, and developed a path for the capital market with Chinese characteristics.

Second, we have firmly focused on the key priorities of strengthening supervision, preventing risks and promoting high-quality development. Strong supervision and risk prevention are essential for high-quality development and are areas in which investors and market participants have voiced many opinions and suggestions. This document emphasizes "strengthening the foundation" and "strict supervision and management." On one hand, it focuses on improving the quality of listed companies, protecting the legitimate rights and interests of investors, and further enhancing market supervision measures. On the other hand, it also emphasizes the need to address internal challenges and strengthening the management of the CSRC. 

Third, we have maintained a systematic approach and implemented comprehensive strategies. The documents issued this time form an organic whole, systematically proposing policy measures from various aspects such as IPOs, continuous supervision of listed companies, and supervision of intermediaries.

Now, I will briefly introduce the main contents of the documents.

Firstly, the document on tightening scrutiny over stock listings aims to improve the quality of listed companies from the source. It comprehensively and strictly strengthens the supervision of IPOs, tightening the responsibilities of all relevant parties in the entire issuance supervision chain. It includes a total of eight policy measures. These are: strictly controlling the quality of declarations of companies planning to list, prohibiting the blind pursuit of listings and excessive financing for profit-making purposes, and promptly and strictly pursuing responsibilities for financial fraud, false statements and misleading packaging in accordance with the law; implementing a system of regular and periodic inspections to ensure comprehensive and continuous oversight, and strengthening the accountability of intermediaries as "gatekeepers"; highlighting the primary responsibility of the exchange review, closely monitoring whether companies planning to list engage in last-minute dividend distributions prior to listing, and strictly supervising overpricing and overfunding; considering the secondary market's capacity and implementing necessary adjustments for the issuance of new shares; significantly increasing the proportion of random inspections on companies planning to list and intensifying problem-oriented on-site inspections; studying the enhancement of listing standards and conducting strict reviews of unprofitable companies; strengthening the thorough supervision of shareholders of companies planning to list to prevent illegal wealth accumulation through unlawful practices; and strengthening the entire chain of supervision and accountability mechanisms. If members of the listing committee and registration reviewers are found to have committed serious negligence or violated disciplinary integrity, they shall be held accountable to Party discipline and administrative responsibilities for life.

The second guideline focuses on enhancing the supervision of listed companies. Aimed at boosting investment value and protecting investors, it outlines 18 measures to address key issues of wide concern, including combating financial fraud, strictly regulating share reduction, improving dividend oversight, and bolstering market value management. According to these measures, efforts will be made to promote the establishment of a comprehensive system for preventing and penalizing financial fraud in the capital market and enhancing thorough supervision capacities to ensure transparent performance and authentic data. Share reduction will be appropriately linked to dividends and situations where the stock price falls below net asset value or below the issue price. Entities found in violation will be ordered to buy back unlawfully reduced shares and submit the price discrepancies. Oversight of cash dividends will be fortified to increase investor returns. Actions will be taken to ensure that listed companies take primary responsibility for managing their market value and to encourage high-quality companies to actively engage in share buybacks.

Li Chao:

The third is the guideline on enhancing the supervision of securities firms and public offering funds. This document concentrates on rectifying the positioning of industry institutions, promoting their functional performance, improving their professional services, and enhancing oversight effectiveness. According to the 25 measures outlined in the guideline, industry institutions will be urged to rectify their operational ethos, prioritize their functions, and effectively fulfill their fiduciary duty. Efforts will be made to refine the mechanism for preventing conflicts of interest and rigorously crack down on illegal acts by shareholders and actual controllers compromising the interests of institutions and investors. Determined efforts will be made to combat misconduct such as the pursuit of money, extravagance, seeking quick profits, and flaunting wealth. Personnel management and supervision will be strengthened to maintain integrity within the industry. Cooperation will be provided to competent departments to continue improving the remuneration management system for industry institutions. The guideline also proposes vigorously developing equity funds and fortifying the core investment and research capacities of public offering funds to improve services for investors. Additionally, the access management of shareholders and businesses will be reinforced, and the qualification criteria and associated systems for senior executives will be upgraded. At the same time, the document places equal emphasis on penalizing both institutions and individuals, imposing both economic and disqualification punishments, and ensuring regulatory accountability and self-discipline, thereby encouraging industry institutions to enhance their own capabilities.

The fourth document focuses on enhancing the self-improvement of the CSRC. Strengthening self-improvement is organizationally crucial for the CSRC to comprehensively fulfill its primary regulatory responsibilities and to promote the high-quality development of the capital market. This document emphasizes a commitment to strictness, facing issues head-on, being strict with the CSRC itself, and leading self-development through self-reform. It advocates for further promoting the exercise of full and rigorous Party self-governance, improving Party conduct and building integrity, and combating corruption. It outlines measures in three respects. First, it emphasizes political integrity, upholding and strengthening the Party's overall leadership in the capital market and implementing the requirements of political and people-oriented specific regulatory tasks, effectively safeguarding the legitimate rights and interests of the vast number of small- and medium-sized investors. Second, it highlights capability development, striving to cultivate a team of regulatory officials capable of shouldering significant responsibilities. Additionally, policies incentivizing officials to take on responsibility, be proactive in their work, and strictly enforce accountability will be refined. Third, it underscores disciplined conduct, ensuring the strict tone, measures, and atmosphere are consistently upheld. Furthermore, rigorous actions will be taken to address the issue of officials entering the business sector after leaving government or vice versa and to rectify pointless formalities, bureaucratism, hedonism, and extravagance. A tough stance will be continuously maintained against corruption.

Following the release of the four documents, we will expedite the introduction of supporting rules and institutional measures. Through these policies and measures, we aim to promote the establishment of institutional mechanisms conducive to the long-term stability and development of the capital market, thus advancing its progress with Chinese characteristics more effectively.

That's all for my introduction. Thank you!

Shou Xiaoli:

Thank you for your introduction, Mr. Li. The floor is now open for questions. Please identify your media outlet before asking questions.

Red Star News:

The introduction mentioned the importance of strictly managing access to IPOs to enhance the quality of listed companies from the outset. What specific measures will be taken in this regard? Thank you.

Yan Bojin:

Thank you for your question. This time, the CSRC issued a document dedicated to enhancing access to IPOs, outlining several targeted measures. Some of these measures reinforce past effective practices, while others introduce new arrangements. The core objective is to fortify the regulatory chain for IPOs, enforce stricter oversight, and enhance the various functions of the market. Practical observations have revealed deficiencies such as unsound internal control mechanisms, irregular corporate governance among some prospective listed companies, and even instances of financial fraud. In response, we will strengthen supervision across all links of the entire IPO chain. Prospective listed companies must adopt a correct IPO mindset, effectively implement the modern corporate system, and assume primary responsibility for the quality of information disclosure. Intermediary institutions must diligently fulfill their role as "gatekeepers" by fully employing methods such as verifying cash flow to ensure financial authenticity. We will also establish a regular and ongoing on-site supervision mechanism for intermediary institutions, aiming for full coverage within a three-year cycle. Exchanges must fulfill their duty as the primary reviewing party, enhance their examination of prospective listed companies, and stringently regulate overpricing and over-funding. Additionally, the CSRC will intensify institution establishment, implementation, and coordination, and significantly increase the proportion of on-site inspections. We will deepen interdepartmental oversight cooperation and ensure retrospective checks and accountability for fraudulent issuance and other activities violating laws and regulations throughout the entire IPO chain.

We have also fully drawn on the opinions and suggestions of all parties in the market, and there will be stricter requirements for the listing threshold, mainly in three aspects. First, modern corporate systems must be established before listing. The funds of investment projects should be reasonable, complete with well-conceived short-, medium- and long-term plans. Sudden "clearance-style" dividend payment should not be carried out, and the "key minority" should have a good reputation. Second, we will study and improve the listing indicators for some boards. From the perspective of regulatory practice, the current financial indicators for listing in some boards are relatively low and the comprehensive indicators are insufficient. They do not fully guide the diversion of enterprises to appropriate boards. We have also heard many market voices suggesting improvement to listing indicators. We will carefully analyze and systematically study this matter, especially by referring to the situation of newly listed enterprises in recent years and enterprises now under listing application review, and then guide the Shanghai and Shenzhen Stock Exchanges to revise the listing rules, appropriately raising the financial indicators for some boards and enriching comprehensive indicators, so as to enable enterprises at different stages of development, in different industries, and with different sizes to list in appropriate boards. Third, we will strictly regulate the listing of unprofitable enterprises. In practice, the development of technology companies may have an unprofitable stage, which does not necessarily mean that these companies have poor continuous operating capabilities. Some high-quality technology companies can grow better and faster through listing, but they must not be "pseudo-technology" enterprises that piece together technologies. In this regard, we will seek the opinions of relevant industry authorities on the technological quality of unprofitable enterprises, and better coordinate the support for technological development and the protection of investors' interests. Thank you. 

CCTV:

We have just heard Vice Chairman Li Chao talk about the CSRC's efforts to further advance full and rigorous Party self-governance, improve Party conduct, build integrity, and fight corruption. Could you please elaborate on the important measures and work arrangements in this regard to provide critical support for the high-quality development of the capital market? Thank you.

Li Chao:

Thank you for your question. We deeply understand that the capital market is a highly regulated and transparent market, which requires an incorruptible market environment. Financial corruption not only seriously hinders the effectiveness of the capital market in serving the real economy but also seriously undermines the authority of regulatory departments and their image in society. The people, especially investors, deeply abhor this. With a deep understanding of General Secretary Xi Jinping's important thoughts on the Party's self-reform, the CPC committee of the CSRC and the discipline inspection and supervision group stationed at the CSRC fully implement the spirit of the Third Plenary Session of the 20th CPC Central Commission for Discipline Inspection and continue to advance efforts in exercising full and rigorous Party self-governance, improving Party conduct, building integrity, and fighting corruption. A systematic approach is adopted, focusing on coordinated and sustained efforts to ensure officials do not have the audacity, opportunity or desire to be corrupt.

First, we have strengthened the deterrent effects towards corruption. The area of public offering review is at high risk for corruption, which the market is highly concerned about. In accordance with the unified deployment of the CPC Central Commission for Discipline Inspection and the National Supervisory Commission, the discipline inspection and supervision group stationed at the CSRC has continuously intensified its efforts and conducted a special campaign against corruption in the area of public offering review. So far, we have investigated and handled 16 typical corruption cases with those under investigation including Zeng Changhong, Wang Zongcheng, Feng Henian, Liu Ti and Cao Jian. These cases have involved CSRC officials at the director-general level, stock exchange executives, members of the public offering review committee and employees of market intermediary institutions. Through the investigation and handling of these cases, we have resolutely combated new and hidden forms of corruption in the capital market, such as abandoning regulatory responsibilities, disrupting regulatory order, creating financial risks and infringing on the rights and interests of small and medium-sized investors. 

Second, we have improved the mechanisms for reducing corruption opportunities by making relevant institutions tighter and stricter. Reducing corruption opportunities relies primarily on institutions. In accordance with the opinions of the discipline inspection and supervision group stationed at the CSRC on "promoting better practices through cases," "promoting good governance through cases," and urging stricter supervision, and in view of the new characteristics of corrupt behaviors reflected in the cases, such as "equity corruption" and "shadow shareholders," we have improved the regulatory system from multiple dimensions, including strengthening institutional supply and enhancing penetrative supervision. To adapt to the characteristics of power exercise after full implementation of the registration-based IPO system, we have focused on key powers such as policymaking, administrative approval, regulatory law enforcement, punishment and accountability to improve institutions and mechanisms and strengthen supervision and restraints on the exercise of public power. We have enhanced the transparency of supervision in a bid to promote supervision and standardization through openness and worked to eliminate the space for power rent-seeking from the source. We have implemented the central government's deployment on investigating both bribe taking and giving, and established a comprehensive mechanism for punishing bribe givers in the capital market to strengthen the deterrent effect of one-time bribe giving leading to restrictions everywhere.

Third, we enhanced the awareness of officials to not have the desire of corruption. The key lies in voluntary self-discipline. Every time the Disciplinary Inspection and Supervision Team stationed at the CSRC investigates a case, it conducts an in-depth analysis of the case's characteristics and specially produces a warning video for education. We worked together with the team and carried out warning education on a regular and comprehensive basis to deepen the use of cases to promote reform. In 2023, we collaborated with the team to build the first regular integrity education base in the CSRC system, and organized all cadres to receive on-site education by stages and in groups. Transparency is the best way to fight against corruption. We warmly welcome supervision from all parties in the market and all sectors of society. At the same time, we will always keep a clear mind, persist in fighting corruption, and get used to working under supervision of different parties.

Going forward, the CSRC Party Committee will work with the Disciplinary Inspection and Supervision Team stationed at the CSRC to effectively shoulder the political and primary responsibilities to conduct thorough and strict Party self-governance, improve Party conduct and build integrity, and prevent corruption, ensuring that Party self-governance becomes stricter, tougher and more effective. Thank you.

China Securities Journal:

The Central Financial Work Conference emphasized the need to comprehensively strengthen financial supervision and effectively prevent and defuse financial risks. You just mentioned the opinions (tentative) on strengthening supervision of securities companies and public funds to accelerate construction of first-class investment banks and investment institutions. According to the opinions, what important measures should be taken to enhance supervision of sponsor institutions and make sure investment banks fulfil their responsibilities as "gatekeepers". Thank you.

Shen Bing:

Thank you for your question. The supervision and professional quality of sponsor institutions are the general concerns of business entities. As a supervisory body, the CSRC urges intermediaries including investment banks to fulfill their responsibilities and truly play their role as "gatekeepers." This is not only the deep expectation of investors, but also a critical element to improve the quality of listed companies at the source and to promote high-quality development of the market. Based on the opinions you just mentioned, I would like to introduce some relevant measures in supervision of institutions. The supervisory efforts can be summarized as implementing strict supervision, strengthening accountability and functions, and optimizing the ecosystem. 

In terms of strict supervision, we have made it clear in the mechanisms and rules that problems such as "IPOs withdrawal after investigation" must be investigated to the end and the person responsible shall be held accountable. In daily supervision, we pay special attention to the prominent issues that are of great concern to the market such as relatively high withdrawal-and-rejection rate and dramatic changes in performance. We strictly implement the principle of "declaration means taking responsibility" and urge sponsors to effectively strengthen internal control and perform verification and inspection responsibilities. We also strengthen information sharing and coordination of supervision and law enforcement in on-site inspections to improve supervisory synergy and effectiveness.

In terms of strengthening accountability, Mr. Li Chao has just made some introductions. We must adhere to see-through supervision and comprehensive accountability, implement dual penalty for institutions and personnel, and make good use of qualification penalty and maximum punishment and other practices in accordance with the law. In particular, penalties will be increased for investment bank directors and senior executives who are responsible for violations to laws and regulations, even including general managers and companies' chairmen. In accordance with the law, we strictly investigate and deal with intermediaries and their employees suspected of committing serious illegal conducts, especially those involving facilitating fraud, and those suspected of committing crimes will be transferred to judicial authorities. We will truly and thoroughly implement the three-dimensional accountability system covering civil, criminal and administrative responsibilities.

In terms of strengthening functions, investment banks are urged to put functionality first, take it as their responsibility to serve the high-quality development of the real economy and protect the legitimate rights and interests of investors, strengthen the construction of core capabilities of investment banks, such as project screening and evaluation and pricing, and recommend truly high-quality companies to the market and investors while firmly blocking those problematic companies from the market.

In terms of optimizing the ecosystem, the professional quality of investment banks will ultimately be reflected in the quality of sponsored listed companies. We attach great importance to the existing classified evaluations of securities companies and the assessment mechanism of investment banking businesses, so that they can truly play their influencer role. In addition, we will improve the system for disclosing negative reviews of sponsor representatives to truly tighten reputation constraints. At the same time, we will strengthen supervision for the integrity of investment banks and their employees, and focus on fighting prominent problems such as improper shareholding and transfers of interests. We set up and improved the comprehensive disciplinary mechanism for bribers, so the black sheep in the sector can be rejected and restricted all around, creating a clean and healthy industry ecosystem. We will fully implement the spirit of the Central Financial Work Conference, pay close attention to the implementation of the opinions, further implement the requirements of intensifying efforts in supervision, and urge intermediaries to play their role as "gatekeeper," making sure listed companies are truly qualified. Thank you.

Nanfang Daily, Nanfang+: 

All parties abhor financial fraud practices in listed companies. We have noticed that the CSRC has repeatedly said that it will focus on preventing and cracking down on fraud. How will the CSRC intensify its crackdown on financial fraud of listed companies? 

Guo Ruiming:

Financial fraud undermines the bottom line of the capital market, and must be cracked down on resolutely. The CSRC has a very firm attitude on this. In recent years, we have invested heavily in regulatory resources. Some of the cases that have attracted people's attention have reflected our efforts. However, frankly speaking, there is still a long way for us to go to meet the expectations of all parties in the market. Going forward, we will work with all regions and departments to strengthen synergy to build a comprehensive punishment and prevention system for cracking down on financial fraud, which mainly includes the following aspects:

Our top priority is to crack down on five types of illegal practices. The first is long-term and systemic fraud, and fraud involving third-party collusion. Targeting these practices, we will seriously investigate the responsibilities of scammers and their accomplices, and resolutely abolish the "ecosystem" of the fraud. The second is fraudulent issuance of stocks and bonds. We will resolutely block fraudsters from entering the capital market and firmly eliminate those who sneak inside. The third involves the abuse of accounting policies and accounting estimates to manipulate profits. The fourth is falsification through activities like financing trade. The fifth is the fraudulent actions that harm the interests of listed companies. These five types are where we will focus our efforts on.

Second, we will hold those responsible to account through comprehensive means in an all-round way. In addition to administrative punishment, we will also adopt a variety of disciplinary measures. For criminal cases, we will make full use of the institutional advantages of the public security and procuratorial organs stationed in the CSRC to jointly investigate and punish a number of typical and malignant cases. In terms of civil cases, we will implement a system of advance compensation, litigation support and commitment of parties involved in administrative law enforcement to compensate investors for their losses and significantly raise the cost of illegal activities. We will also launch more cases to solidify the results. We will resolutely ban those who are most responsible from market entry. Those who meet the standards for mandatory delisting due to major violations will be resolutely delisted.

Third, we will strengthen the internal control and defense lines of companies. An effective internal control system in listed companies is a crucial foundation for preventing systemic financial fraud. Therefore, our focus is on strengthening the functions of the company's board of directors, especially boards of auditors and independent directors in anti-fraud, thus leveraging the internal checks and balances in corporate governance. At the same time, we will encourage internal reporting, and we are exploring increasing the amount of rewards for reporting. Finally, we will strengthen the responsibilities of intermediaries as "gatekeepers." For those intermediaries that lose professional ethics or collude in fraud, we will resolutely impose severe penalties, including industry bans and other penalties. Moreover, we will urge the audit evaluation agencies to timely uncover and proactively report clues of financial fraud in listed companies. We will apply lenient or mitigated punishment in accordance with the law for those who proactively report. The purpose of these measures is to leave fraudsters with nowhere to hide. Thank you.

Phoenix TV:

We have noticed that the documents mention strengthening the random selection of companies to be listed and intensify problem-oriented on-site inspections. What are the considerations behind this approach? What are the specific arrangements for the next step? Thank you.

Yan Bojin:

Thank you for your interest in IPO on-site inspection. On-site inspection is an administrative law enforcement measure granted to the CSRC by the Securities Law. In the field of issuance supervision, it serves as an extension and supplement to the written review for IPO applications. In January 2021, the CSRC issued and implemented the "Provisions on On-site Inspection of Initial Public Offering Companies," which stipulated the procedures, methods, and requirements for on-site inspections of IPO companies. Since the implementation of this system, the CSRC has mobilized resources across the entire system and conducted on-site inspections of 100 IPO companies in an orderly manner. Based on the inspection findings, the CSRC has taken various measures, including initiating investigation against three companies that were suspected of financial fraud in accordance with the law. Through rigorous on-site inspections, regulatory pressure has been transmitted to all levels, and the on-site inspection system has played a key role in improving the standardization of information disclosure and preventing financial fraud.

Recently, we have revised the "Provisions on On-site Inspection of Initial Public Offering Companies" based on our practical experience. One of the most important amendments, which has drawn considerable attention, is the clarification that companies withdrawing their listing applications during the on-site inspection process will still undergo thorough investigations. In other words, even if the listing application is withdrawn, we will still conduct the inspections, hold it accountable if necessary. This is to fundamentally address the issue of "withdrawing after inspection" that has occurred in some companies. At the same time, the new regulations have further improved on-site inspection procedures, introduced a mechanism for conducting inspections without prior notification, and emphasized unifying the standards for processing.

Next, we will significantly increase the proportion of on-site inspections. The primary consideration is to simultaneously increase the number of random sampling and problem-oriented on-site inspections, ensuring that the on-site inspection coverage rate is no less than one-third of the companies to be listed. For signs of fraudulent issuance and financial fraud discovered during on-site inspections, once verified, we will severely punish them. Through this approach, we will effectively deter those attempting to list companies with hidden issues, thereby improving the quality of listed companies from the outset. Thanks.

Market News International:

The CSRC stepped up regulation on shareholding reduction last August, but it has not completely prevented major shareholders from implicitly liquidating shares at high prices after listing. I would like to ask what more stringent and specific measures will be introduced in the future to improve regulation on reductions by major shareholders. Thank you.

Guo Ruiming:

I will take this question. Next, we will comprehensively improve the regulations on shareholding reductions and prevent shareholders from implicitly reducing their shareholdings in accordance with the principle of substance over form. The main measures include: First, we need to clarify the reduction rules in cases such as divorce and dissolution of controlling shareholders. Second, we must clarify the reduction rules for scenarios like stock pledge liquidation and gifts. Third, we need to prohibit major shareholders, directors, and senior executives from engaging in derivative transactions involving the company's stocks, forbid restricted stocks from being used in refinancing and lending, and prevent shareholders with restricted stocks from selling securities. For illegal reductions of holdings, we will order the repurchase of stocks, pay the price differences, and impose severe penalties on those who refuse to correct their actions. Thank you.

China News Service:

Just now, Mr. Li Chao mentioned that the CSRC is implementing strict standards for political integrity, capability development and disciplined conduct, comprehensively improving itself and promoting the high-quality development of the capital market. May I ask, in this regard, what are the key considerations and important measures of the CSRC? Thank you.

Zhang Chaodong:

Thank you for your question. the CSRC's work, including its self-improvement, has always received great attention from all sectors of society. There are many expectations and numerous suggestions that have been put forward. We listen to them carefully and strive to make improvements. On March 6, Wu Qing, chairman of the CSRC, emphasized at a press conference on economy, during the second session of the 14th National People's Congress, that strict supervision and management are essential. Strict management means strict self-discipline and strict control over our team. On the first day after the Spring Festival, the discipline inspection and supervision team stationed at the CSRC also held a special meeting to put forward strict supervisory requirements for strengthening the self-improvement of the CSRC. Through years of practice, we have deeply realized that the effectiveness of the CSRC's self-improvement is crucial for the overall situation of the reform, development and stability of the capital market. It also concerns the image and credibility of the CSRC.

To this end, we have thoroughly studied and comprehended the guiding principles of General Secretary Xi Jinping's series of important speeches, instructions, and directives. We have earnestly implemented the relevant requirements from the Office of the Central Financial and Economic Affairs Commission and the Central Financial Work Commission. Approaching self-improvement from a political standpoint, we have formulated specific opinions on comprehensively strengthening the self-improvement of the CSRC system.

During the drafting process of the opinions, we focused on the "three ones": The first is "one standard," which refers to the implementation of strict standards for political integrity, capability development and disciplined conduct. The second is "one goal," which is to provide a strong guarantee for high-quality development of the capital market. The third is "one orientation," which is to adhere to strictness as the priority, using rigorous management to promote stern supervision. Along with the rapid development of the capital market, the young team at the CSRC has been tested and has grown. However, we are also acutely aware that there is still a significant gap between the requirements of the CPC Central Committee and the expectations from a broad array of investors, and that some prominent issues exist. As vice chairman Li Chao just mentioned, we must be strict with ourselves and engage in self-revolution, confront substantive issues, deeply probe the ideological roots, maintain strict control and management with unwavering resolve all the way through, making great efforts to resolve these issues and to truly achieve a major transformation in thought, perspective and action. The opinions mainly propose the following key measures:

In terms of upholding the political nature and people-oriented focus of capital market regulations, we propose strong advancement in the building of political institutions and in the education and guidance of regulatory officials to uphold their original aspirations of serving the nation through finance and serving the people with finance. They must loyally fulfill the functions and duties entrusted by the Party and the state, carrying out all tasks with a sense of mission and responsibility. In the practice of strengthening regulation, preventing risks and promoting high-quality development, we must keep a firm political direction and persistently adhere to the people's standpoint.

In terms of strict management, we emphasize the need to continuously advance the normalization and long-term implementation of central inspections and rectifications, highlighting the governance of people, authority and affairs through systems. We observe a strict tone and measures, forming and consolidating a strict atmosphere. Issues such as the "revolving door" phenomenon between government and business, as well as "evasive resignations," have severely damaged the credibility of regulation and the healthy ecology of the capital market, attracting widespread criticism. Moving forward, we will address the fundamental issue raised by the discipline inspection and supervision team stationed at the CSRC, which is to diminish the "value of official status" for departing personnel. We will implement comprehensive measures from both ends of business and management, govern across the entire chain and deepen specialized rectifications.

In terms of strict supervision, we resolutely implement the requirement that supervision must be "sharp and thorny," with defined boundaries, reflecting the strict orientation in aspects such as stringent systems, enforcement and outcomes. Focusing on strict supervision, we optimize the regulatory system and enhance the guarantee of regulatory strength. Concurrently, we improve the supervisory capacities of our cadres, strengthen regulatory accountability and promote assertive regulatory actions.

In terms of changing work styles, we emphasize the need for practical actions and immediate execution, rigorously ensuring task implementation and resolutely rectifying pointless formalities, bureaucratism, hedonism and extravagance. We strictly investigate and deal with behaviors that violate the guiding principles of the central Party leadership's eight-point decision on improving work conduct and deeply promote exercising full and rigorous governance in compliance with the Party, improving Party conduct, building integrity and fighting corruption. We insist on in-depth investigation and research, to listen earnestly and respond sincerely to the market's concerns and doubts with a humble and cautious attitude, to make the utmost effort to solve prominent issues and to work wholeheartedly to build a positive image for the CSRC.

Self-improvement is an ongoing journey. Next, we will earnestly ensure the implementation of the opinions and with new achievements in our self-improvement. We will promote the high-quality development of the capital market. Thank you.

Economic Daily:

What specific considerations has the CSRC made in enhancing the inclusiveness and adaptability of capital market regulatory rules, promoting improvements in the quality of listed companies, and better serving the development of new quality productive forces? Thank you.

Li Chao:

During this year's "two sessions," General Secretary Xi Jinping emphasized the importance of developing new quality productive forces in accordance with local conditions, during his participation in the deliberations of the Jiangsu delegation. The CSRC has earnestly studied the important instructions and requirements of General Secretary Xi. As for how to effectively leverage the role of the capital market to better serve the development of new quality productive forces, considerations have primarily been taken into account in the following areas:

First, from the source, which is in the aspect of IPOs, efforts are being made to enhance the inclusiveness, adaptability and precision support of new quality productive forces. However, basic offering standards must of course be maintained.

Second, for companies that have already been listed, leveraging capital market tools such as mergers and acquisitions, corporate restructuring and equity incentives is crucial to facilitate the development and growth of listed companies involved in new quality productive forces.

Third, it is important to further improve the multi-tiered capital market system, including areas such as venture capital funds, with the aim of continuously enhancing the quality and effectiveness of serving the development of new quality productive forces. Thank you.

Yicai:

Mr. Wu Qing, chairman of the China Securities Regulatory Commission, stated at a press conference during this year's "two sessions" that enhancing the construction of the intrinsic stability mechanism in the capital market includes, at least, "one bedrock " and "five pillars." Among these, higher-quality professional services are one of the pillars. In the previously mentioned opinions regarding strengthening oversight over institutions, what are the key measures for promoting the securities and fund institutions to better play their roles to provide higher-quality services? Thank you.

Shen Bing:

Thank you for your question. In our recent announcement regarding the strengthening of regulation for securities firms and public funds, and the accelerated cultivation of first-class investment banks and institutions, we have outlined the development goals for the securities and fund industry. Specifically, we have identified 25 key measures, focusing on phased tasks for the next five years. These measures provide a timetable, roadmap and blueprint for expediting the cultivation of first-class investment banks and institutions. Allow me to provide a brief overview:

First, we aim to rectify the positioning of institutions in the industry. There are gaps in terms of operational concepts, functional effectiveness, governance levels, compliance awareness and other aspects within the institutions in the industry according to the requirements set forth in the Central Financial Work Conference for cultivating first-class investment banks and institutions. The issuance of the opinions this time emphasizes the need to strengthen the leadership of the Party. Through measures such as improving classification evaluation and risk control indicator systems, institutions in the industry are urged to rectify their operational concepts and prioritize functionality, while consistently adhering to the development principle of financial services for the nation and the people.

Second, we aim to enhance corporate governance. Sound and robust corporate governance and compliance risk control are crucial for financial institutions. The opinions systematically put forward requirements for the governance framework of institutions in the industry. For instance, the document highlights the need for a clear equity structure, streamlined organizational structure, well-defined responsibilities, comprehensive information disclosure, reasonable incentive and restraint mechanisms, effective internal controls, and an architectural framework conducive to fostering ethical conduct within the industry. Additionally, institutions in the industry are required to improve mechanisms for preventing conflicts of interest such as related-party transaction management. For high-risk businesses, the principle of "if it cannot be properly supervised, it should not be conducted" should be adhered to. It is essential to enhance assessment mechanisms for compliance risk control and implement the requirements of comprehensive risk management and compliance management across organizations.

Third is to promote cultural progress. In recent years, some practitioners in the sector have led lavish lifestyles, seeking short-term successes and quick profits while flaunting their wealth. Such harmful trends severely damaged the reputation of the sector. Now "The Opinions" urges related financial institutions to vigorously advocate and implement the five financial ethics of Chinese characteristics, which are being honest, fulfilling social responsibilities, exercising prudence, innovating while upholding traditional values and abiding by the law. Vetting and regulation procedures should be strengthened in key processes such as enrollment and appointment. Practitioners with unlawful or immoral behaviors should be removed from the sector with firm resolve. Supervisory bodies should enhance accountability and punitive measures, improve information disclosure regarding penalties and better utilize practitioners' credit records, so as to legally and rigorously prevent law-breaking personnel from continuing to work in the profession. In collaboration with other departments in charge of related work, the supervisory bodies should also continue to improve the salary management system for the sector. Different parties should poll strengths to quickly create an environment of strict disciplines for industry practitioners in order to maintain a good reputation of the sector. 

Fourth is to level up the capacity for providing professional services. This is key to cultivating top-notch investment banks and other investment institutions. "The Opinions" urges related financial institutions to focus on their primary responsibilities and core businesses, fulfil their important roles in ensuring stable and sound performance of the financial market, in discovering value and curbing risks; in facilitating inflow of medium and long-term capital to the market, in improving long-term returns for investors and in supporting high-standard opening up of the financial market. For this purpose, we will provide oversight and recommend to related financial institutions that they strengthen core capabilities, optimize financial services and product supplies and provide products and services that truly suit investors. Also, we will offer support to realize the strategic plans that promote technology-related financing, green financing, inclusive financing, pension financing and digital financing. Thank you. 

Shou Xiaoli:

Due to time limitations, we will have one last question. 

ThePaper.cn:

Investors buy stocks to invest in listed companies. Can you discuss the measures to be taken by the CSRC to elevate the investment values of listed companies and improve sense of gain for investors? Thank you. 

Guo Ruiming:

Thank you for your question. Listed companies comprise the cornerstone of the capital market. In recent years, the overall performance of listed companies has improved. However, we still have a long way to go in terms of increasing investment values and boosting investors' sense of gain. Our efforts will mainly focus on three aspects:

First, we will encourage listed companies to pay attention to investors' returns. Listed companies are the best performers in different sectors. They should act like best performers and provide more benefits to investors, because this is the only way to attract and keep investors engaged. Next, we will formulate guidance for market value management of listed companies, guiding major index stocks to be more willing to benefit investors. We will also push relevant departments to include listed companies' work in improving investment values and market value management into the internal and external examination and appraisal systems, so that best performing listed companies can set good examples and play a guiding role. For companies with stock prices lower than net values, we will offer oversight and urge them to come up with measures for improving investment values. 

Second, we will push more listed companies to pay dividends and buy back their shares. For companies that haven't paid dividends or have only paid extremely small amounts of dividends for years, we will issue warnings and urge them to pay dividends, with other criteria being considered as well. We will also push best performing companies to pay dividends more than once a year with consideration of half-year reports and third-quarter reports, thus to improve investors' sense of gain. Meanwhile, we will offer guidance and support for more listed companies to buy back their shares and encourage cancellation after repurchase, because this is another issue investors pay attention to. 

Third, we will support companies to cement fundamentals. As Mr. Li just mentioned, we will support the mergers and acquisitions of listed companies as well as corporate restructuring, encouraging listed companies to improve performance through capital market tools such as equity incentives so they can excel and strengthen. We will also offer oversight and urge listed companies to improve communication with investors and learn more about investors' demands. Competitive products need effective promotional efforts just the same. So, listed companies should do a good job in managing relationships with investors and take proactive measures to stabilize investors' expectations. 

Last but not least, strict regulation will be implemented on backdoor listings and reckless conglomerate mergers. We will also resolutely crack down on speculative behaviors surrounding backdoor listings, so the principle of survival of the fittest can be better exerted and a healthier ecosystem can be created in the sector. Thank you. 

Shou Xiaoli:

Thanks to all speakers and journalists for attending this press conference. It is hereby concluded. 

Translated and edited by Wang Yiming, Wang Qian, Xu Xiaoxuan, Wang Ziteng, Yuan Fang, Liu Sitong, Yan Bin, Zhang Tingting, Li Huiru, Yan Xiaoqing, Zhang Rui, Liu Caiyi, Huang Shan, Ma Yujia, David Ball, Rochelle Beiersdorfer and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speaker:

Mr. Huang Shouhong, head of the government work report drafting team and director of the State Council Research Office

Chairperson:

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

Date: 

March 5, 2024

Chen Wenjun:

Hello, ladies and gentlemen, and welcome to this briefing held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Huang Shouhong, head of the government work report drafting team and director of the State Council Research Office, to elaborate on the Report on the Work of the Government.

Now, let's give the floor to Mr. Huang.

Huang Shouhong:

Hello, friends from the press. It's a pleasure to meet you and introduce the drafting of the report.

As you know, last year was the first year for implementing the guiding principles from the 20th National Congress of the Communist Party of China (CPC). This year marks the 75th anniversary of the People's Republic of China (PRC). It is also a crucial year for achieving the objectives and tasks laid out in the 14th Five-Year Plan. Against the backdrop of a complex and changing global economy, how has China, the world's second-largest economy, done in the past year? How should we view it? What new goals have we set for this year? What are our plans? And what are the development prospects? These questions are not only of concern to the Chinese people, but also to the international community. The Report on the Work of the Government delivered by Premier Li Qiang this morning reviewed the work of the past year, made requirements for this year's work, put forward the policy orientation, and responded to the concerns of all parties.

The CPC Central Committee and the State Council have attached great importance to the drafting of the government work report. General Secretary Xi Jinping has issued important instructions and specific requirements on multiple occasions when presiding over meetings of the Standing Committee of the Political Bureau of the CPC Central Committee and the Political Bureau of the CPC Central Committee, and during the deliberation on the report, providing guidance and fundamental guidelines for the drafting of the report. Premier Li Qiang presided over the drafting of this year's report. He chaired executive and plenary meetings of the State Council to discuss the draft, and convened several themed symposiums to study and revise the report and formulate relevant policies.

This year's Report on the Work of the Government follows the conventions of previous reports. As you know, the Report on the Work of the Government is a programmatic document for government governance and is normative to a certain degree. Therefore, this year's report follows the established norms, but also has some new characteristics, which can be summarized in many ways. In my personal opinion, they can be viewed from the following three aspects:

First, the report this year both reflects "top-down alignment" and is "down-to-earth." "Top-down alignment" means that the report precisely keeps to the correct political direction and fully adheres to the decisions and plans of the CPC Central Committee with Comrade Xi Jinping at its core. This can also be said to be the most prominent and important feature of this year's report. As we all know, at the beginning of its term of office last year, the current government made it clear that it would act as a faithful executor and an action-oriented and pragmatic team for the implementation of the decisions and plans of the CPC Central Committee. When the drafting work began this year, Premier Li Qiang clearly requested that the report thoroughly implement the decisions and arrangements of the CPC Central Committee. The main content of the report this year, including the review of last year's work and the overall requirements, main targets for development, macro policy orientations, and key tasks of government work this year, were all drafted in accordance with the guiding principles of the important speech delivered by General Secretary Xi Jinping at the Central Economic Work Conference last year. The report this year includes 10 major tasks, nine of which are the key tasks deployed by the general secretary in his speech at the Central Economic Work Conference. At the same time, considering that education, science and technology, and talents are the foundational and strategic pillars for building a modern socialist country in all respects, and considering that the 20th CPC National Congress has listed "science and technology, education and talents" in a separate section, the report has added a new section on "invigorating China through science and education and consolidating the foundations for high-quality development." Meanwhile, following established practice, the report also incorporates content on culture, social governance, government self-improvement, ethnic and religious affairs, overseas Chinese affairs, national defense and military development, Hong Kong and Macao, Taiwan, and diplomacy. These parts have all been drafted in line with the relevant directives of the CPC Central Committee. Following the Central Economic Work Conference, the CPC Central Committee convened a series of important meetings, including those of the Central Commission for Comprehensively Deepening Reform and the Central Commission for Financial and Economic Affairs , which also resulted in the formulation of key measures. After each meeting, the drafting team promptly studied and grasped the new initiatives and incorporated them into the report. Consequently, during the solicitation of opinions, all parties unanimously agreed that this year's report effectively embodies the "three full reflections." This means that it fully reflects Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; fully reflects the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee, and the Central Economic Work Conference; and fully reflects the important instructions and directives of General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee.

Huang Shouhong:

The "down-to-earth" aspect of this year's report is reflected in the fact that it accurately reflects the pulse of society, fully represents the aspirations and concerns of the people, and responds to the concerns of all stakeholders, especially those at the grassroots level, the general public and businesses. All the policies and measures are practical, aligned with the needs of the people, and beneficial to businesses. How has this been achieved? By extensively listening to opinions. Extensive consultation is not unique to this year's report; it is a cornerstone of the Party's approach to developing important documents and policies. This aligns with the principle of "from the people and to the people " — the "mass line" leadership and work method of the CPC. General Secretary Xi Jinping has made clear requirements for policy and document formulation, emphasizing the importance of transparent decision-making and collective wisdom. The general secretary embodies this principle through his own actions. For instance, in preparation for last year's Central Economic Work Conference, General Secretary Xi Jinping presided over a series of symposiums to gather opinions. He also undertook research visits to various locations on many occasions. As shown on TV and in news reports, the general secretary has actively engaged with people at all levels, visiting factories, workshops and farms to talk with local officials and ordinary people, hearing their opinions and suggestions. The general secretary's commitment to listening to the voices of the people, understanding their needs and learning about their living standards serves as a benchmark for us all. The major decisions made by the CPC Central Committee are a culmination of this very principle — gathering diverse perspectives to make informed decisions. It is even more important to openly seek advice and pool wisdom to ensure the standard of the draft report and implement the decisions and arrangements of the CPC Central Committee.

Huang Shouhong:

During the drafting and revising of the government work report, Premier Li Qiang visited grassroots communities for many occasions, and heard opinions and suggestions from representatives of all walks of life at three symposiums, including one attended by experts in various fields, businesspeople , and representatives from sectors such as education, research, culture, and health; and one attended by leaders of non-CPC political parties and the All-China Federation of Industry and Commerce, and representatives of persons without party affiliation. He also presided over a symposium to listen to the opinions and suggestions of local officials at provincial, municipal, county and township levels on the draft government work report. Other leaders of the State Council also listened to opinions and suggestions through a range of methods.

During the drafting process, the report's drafting team was open to the opinions and suggestions of local authorities and government departments as well as those from all sectors of society. The draft report was based on the opinions and suggestions on the work that were put forward by local authorities and government departments. After the draft report was finished, it was printed and distributed to all localities, government departments and units to solicit opinions. This year, more than 4,000 copies were handed out, from which more than 1,100 pieces of feedback were sorted through. All sectors of society paid great attention to the drafting of the government work report and put forward a large number of suggestions through various methods. Many news media, online platforms, Weibo, forums and so on, collected netizens' opinions. For example, this year, the gov.cn website teamed up with 29 online media platforms to launch @State Council, Share Your Views on 2024 China's Government Work Report campaign. As of yesterday, more than 1.6 million comments have been received from netizens, an increase of 82% over last year. The gov.cn website selected 1,150 representative suggestions and forwarded them to the drafting team. After preliminary sorting, a large stack of opinions and suggestions was forwarded to us each time with very detailed content, including reasons and suggestions. Some netizens even provided a feasibility analysis and timelines for the introduction of their suggested policies. This was very thoughtful. The netizens who left comments included both young and old, male and female. The oldest one was 82 years old and the youngest was 12 years old. Some netizens praised the practice of extensive listening to opinions on the draft work report. One of them commented: "Asking the people for their needs and suggestions makes the government work report more down-to-earth, well-grounded and engaging."

During the solicitation campaign, we also received suggestions from netizens from more than 40 countries, including investors, economists, teachers and doctors. They provided opinions and suggestions on topics such as investing and starting businesses in China, visa processing, and travel and shopping in China, among others. This year, the number of participating foreign netizens and the countries they come from increased significantly compared with previous years. This also reflects the fact that more and more people around the world are interested in China. They are optimistic about China's future, and are willing to cooperate with China and walk side by side with the Chinese people.

Overall, a large number of people made suggestions for this year's government work report. A total of 1.6 million people made suggestions on the gov.cn website alone, and millions more participated through other media-organized events. As such, the number of participants is huge and they represent all different occupations and age groups.

Approximately 10,000 people directly participated in the revision of the government work report. This includes the more than 4,000 relevant local and department officials mentioned earlier, as well as deputies to the people's congresses, members of the Chinese People's Political Consultative Conference, and other relevant individuals.

Huang Shouhong:

We considered all these suggestions one by one, including those from netizens, to see if we could incorporate them either fully or partly. Even if we could not incorporate an entire suggestion, we still carefully examined each one, considering whether it contained reasonable elements and practical guidance at the operational level. Following the principle of incorporating as much as possible, we put forward our recommendations, which were submitted to the CPC Central Committee and the State Council for approval in accordance with the procedures and then written into the report. In the following days, we will continue to revise the report in accordance with the opinions of lawmakers and political advisors.

Second, the report integrates top-level plans with demands of grassroots communities. It combines the decisions and plans of the CPC Central Committee and the State Council with the demands and suggestions from all sectors of society, transforming them into specific task lists, blueprints and policy agendas for the government and its departments. As you know, the Central Economic Work Conference sets the overall tone, draws the big picture and outlines major policies, while enterprises and the public express their specific desires and demands. All of these need to be refined and translated into concrete policies and feasible measures. The report, after thorough research and deliberation, has formulated specific work tasks and policy measures, organically aligning the CPC Central Committee's decisions and plans with the wishes and demands of enterprises and the public.

The government work report covers a wide range of topics. Due to space limitations, we strived to condense the text while ensuring each sentence is carefully revised. We aimed to express richer content and meaning using concise language. Meanwhile, following Premier Li Qiang's instructions, we paid special attention to ensuring better connection between the government work report and the draft plan for national economic and social development as well as the draft budgets. The government work report primarily focuses on key points and summaries. It currently consists of 16,900 Chinese characters. The draft plan for national economic and social development and draft budgets, on the other hand, delve into specifics and details. The development plan report contains 58,900 Chinese characters, and the budget report contains 19,500 Chinese characters. These three reports complement each other, forming an organic whole. Therefore, when reading the government work report, it is essential to also consider the other two reports in order to gain a comprehensive understanding of the government's overall work arrangements this year.

Third, the report adheres to the principles of truthfulness, pragmatism and simplicity. Some journalists who were present for Premier Li Qiang's delivery of the report may have been deeply impressed by this aspect. This year's report follows the stylistic norms, aiming to be informative while also simple. When discussing last year's achievements, the focus is on presenting facts and data without embellishment. The report highlights the distinctive features of last year's work without attempting to cover every detail. In outlining this year's work, the emphasis has been placed on new arrangements and initiatives. For important tasks that require continuous progress and major strategies that require continuous implementation, concise summaries are provided. When introducing various policies and measures, the focus is on practical content — which is what the public are most interested in. The report strives to be targeted, proposing effective policies and measures that genuinely address the concerns of society. The language used aims for simplicity and clarity, to ensure that it can be understood by ordinary people.

Huang Shouhong:

Earlier, I introduced the drafting of the government work report and its characteristics. Recently, I have read some international reports where some people often get confused about confrontation with complex and severe international environments and various risks and challenges. Many countries often find that their development goals cannot be achieved as expected or the results may fall short of their expectations. With regards to that, they ask one question: how can China always accomplish its goals and tasks in these years and continue to attain new achievements in its development ? There are many reasons for this. One reason is that when the CPC and the Chinese government make development goals and put forward important policies, we implement the mass line, bring democracy into full play and seek the biggest common ground possible, which thus lay a solid popular and social basis, instead of decisions being made by a few people behind closed doors and reflecting the will and aspiration of only a few people. This year's government work report fully demonstrates the bond between the Party and the people as well as the resonance between policymaking and public opinion. It also fully reflects the will, aspiration and demand of the people nationwide. I believe that after the deliberation and approval at the second session of the 14th NPC, the report will be jointly followed and acted upon accordingly by the people nationally and will gather strong driving force for economic and social development. The goals and tasks put forward in the report will definitely be accomplished. As a Chinese saying that many are familiar with goes, "People with one mind and heart have the power to move a mountain."

The report is comprehensive, systematic, and rich in content. To understand it, we must grasp its main ideas and purpose. According to my personal understanding, the soul of the report is Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and its essence is the guiding principles of the Central Economic Work Conference. The main idea that runs through the report is that upholding high-quality development is of paramount importance in the new era. The report focuses on the central task of economic development and the priority task of high-quality development. Advancing high-quality development requires full and faithful application of the new development philosophy on all fronts and a good grasp of its general logic of reform, opening up and innovation as well as the starting point and ultimate goal of safeguarding and improving people's wellbeing.

Due to time constraints, that's all for my brief introduction. Next, I would like to discuss the drafting of the report with you. Thank you.

Chen Wenjun:

Thank you, Mr. Huang. Now the floor is open for questions. Please identify your media outlet before raising questions.

CCTV:

This year's government work report reviewed the work accomplished and achievements attained last year. What's your thoughts of these achievements? When reviewing the achievements of last year, the report described that these achievements "did not come easily." What's the difference in last year's difficulties? How were these difficulties overcome? Thank you.

Huang Shouhong:

We have all experienced the past year together. Different people may have different opinions towards the achievements we made last year. Generally speaking, I believe that these achievements are commendable and carry weight. They demonstrate both significant progress and great potentials, and consist of both material and cultural wealth.

We can see external, tangible, and visible achievements that can be measured by data. For instance, China's economic aggregate surpassed 126 trillion yuan, with a growth rate of 5.2%. We can make comparisons both horizontally and vertically. By a vertical comparison, the growth rate of 5.2% is 2.2 percentage points faster than last year, and is faster than the average annual growth rate of 4.5% in the past three years during the COVID-19 pandemic. By a horizontal comparison, China takes a leading position among major global economies and is still the largest driver of growth for the global economy, contributing about 30% to total global economic growth.

There are also achievements that cannot or are difficult to be quantified but can be perceived and felt by everybody. For example, new industries, new business forms and models continue to emerge; public transportation is more convenient and there is a larger variety of goods and services for people.

In addition to that, there are also many intrinsic, profound and silent changes, such as the transformation of concepts, consistent improvement to institutions, improvements in conduct and accelerated shift with the growth model.  

Overall, we can perceive the achievements we made last year from multiple dimensions and perspectives. This is like what a Chinese poem says, "One gets different impressions of a mountain when viewing it from the front, sideways, at a close range or from afar." We will have different feelings about these achievements when viewing them from different perspectives. Generally speaking, China's economic development last year saw both growth in quantity and improvement in quality as well as intangible positive trends. It can be said that these achievements are high-value additions. In his 2024 New Year message, General Secretary Xi Jinping spoke profoundly about the work and achievements in the previous year. In 2023, we marched forward with solid and robust steps, in high spirits and with great confidence.

These achievements have been attained with tremendous efforts and are extraordinary. In your question, you mentioned that when we talk about these achievements we often say that these achievements came with difficulty. During the process of soliciting opinions, many organizations and individuals put forward suggestions, and the word "uneasily" in their comments was always preceded by a word, some by "very," some by "particularly," some by "extremely," and so on. As mentioned earlier, this year's report values plainness and simplicity, so these adverbs, including "very," "extremely" and "particularly," were not added. However, last year was indeed not easy. You all experienced last year personally and must have deep feelings. At the beginning of last year, we achieved a smooth transition with our COVID-19 response efforts. The transition itself was a complex process and all parties have made tremendous efforts, which in itself is a great achievement.

In terms of economic development, according to the report, we were faced with a combination of multiple difficulties and challenges, which can be said to be rarely seen in our work. It is the interlacing of multiple factors such as pandemic factors and complicated economic recovery factors. During the last three years of the pandemic, we have made great achievements in protecting people's lives and health. At the same time, the COVID-19 pandemic has affected China's economic performance and damaged its economy. In addition, contradictions and risks that have been building up over the years are becoming more evident, including the risks in the real estate sector, local government debt and small and medium-sized financial institutions. We also encountered many new conditions and problems, such as insufficiency with domestic demand and decline in external demand as well as co-existence of cyclical and structural problems. Honestly speaking, it would not be easy to cope with just one of these challenges. It would be harder to effectively handle all these challenges. Therefore, faced with an extremely complicated and severe situation, it was not easy for us to maintain stable economic performance and complete the tasks for economic development in 2023. In many areas, just as mentioned in the report, there are many positive trends, which are even harder to achieve. Therefore, to understand the achievements of last year, we must combine background and situational circumstances. It is just like when we look at a painting, we need to look at the background.

What does China owe to its commendable achievements that did not come easily in the past year? The report notes that we owe our achievements in 2023 to General Secretary Xi Jinping, who is at the helm charting the course, to the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, and to the concerted efforts of the whole Party, the armed forces, and Chinese people of all ethnic groups. At the same time, these achievements once again demonstrate the decisive significance of establishing Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era while fully demonstrating the strong resilience, potential and momentum of China's economy.

Huang Shouhong:

There are three characteristics of our macro policies and efforts last year worth summarizing.

First, giving priority to consolidating the foundations of the economy. The expression "consolidating the foundations," used in the report is frequently found in traditional Chinese medicine. After three years of COVID-19, the Chinese economy has entered an overall recovery stage, analogous to the process of "recovering from a serious illness." At the same time, it faces multiple difficulties and challenges, exerting increased pressure on our economy. There are two ways to respond to this circumstance. One approach is to implement a deluge of stimulus policies and strong stimulus measures to increase the growth rate in the short term. If we did so, we would certainly achieve a higher growth rate in the short term but would suffer its after-effects. The other approach is to pursue progress while ensuring stability, just like how traditional Chinese medicine helps patients who just recovered from a serious illness to recuperate and restore their vitality. After analysis and comparison, we opted for the approach of consolidating the foundations of the economy to ensure stable growth and sustain momentum. We implemented a number of measures conducive to both current and future development.

Second, strengthening interplay between policies to see that together they deliver greater outcomes. Since we faced multiple challenges last year, each with its own nature and characteristics, we could hardly adopt a single policy that would address all challenges. Therefore, last year, we placed greater emphasis on coordinating policies to ensure that, collectively, they deliver greater outcomes. To address tasks including expanding domestic demand, improving the economic structure, bolstering confidence, and preventing and defusing risks, we adopted a comprehensive range of robust and effective policies, including well-coordinated fiscal, monetary, and employment policies, to create synergy.

Third, placing an emphasis on taking targeted steps. In view of different contradictions and problems, we implemented varied targeted measures. Last year, for example, we introduced policies to support the development of state-owned enterprises, private companies, and foreign investment in response to the specific situations and needs of different business entities. There were both shared policies and targeted measures to address different difficulties and needs.

On the whole, we achieved commendable accomplishments last year and accumulated valuable experience. A thorough understanding of these achievements last year ensures a deeper insight into the reasons behind China's economic achievements in the past few years and boosts confidence in achieving development goals this year, as the logic and fundamental driving factors are the same. This is also why I spent more time elaborating on it.

Thank you.

Market News International:

According to the government work report, China has set a GDP growth target of around 5%. Why has the GDP target been set at this level? And what measures will authorities implement to ensure this target can be met?

Huang Shouhong:

In setting the growth rate for this year at around 5%, we considered evolving dynamics at home and abroad, along with other relevant factors, as well as what is needed and what is possible. It can be said that we have set this target based on current needs and with a long-term view. To be specific, from the perspective of current needs, we require a certain rate of economic growth to expand employment, increase people's incomes, and prevent and defuse risks. There is relatively high employment pressure this year, with more than 12 million new urban jobs to be created. If we do a rough calculation based on the relationship between employment and economic growth, or how economic growth will stimulate employment, the economy needs to maintain a growth rate of around 5% to meet the employment target. Certainly, other needs should also be taken into account.

In the long term, or in the medium to long term, we will basically realize socialist modernization by 2035, which entails reaching a per capita GDP level comparable to moderately developed countries. While no specific quantitative requirement is stated, there is an implicit requirement for the economic growth rate. According to comprehensive estimates, to basically realize socialist modernization by 2035, we will need to maintain an economic growth rate of around 5%. This target is set based on a comprehensive analysis of the supporting conditions and favorable factors for China's economic growth.

Actually, this has been the way that the Party and the government have set development goals over the years, considering both what is needed and what is possible. While higher targets may be desirable in terms of what is needed, setting targets unattainable due to lack of support would not work. As for whether we can achieve the growth target we have set, I believe there are conditions and support to achieve a growth rate of 5% this year.

Recently, there have been forecasts for China's economic growth rate this year. Some major international organizations, including the International Monetary Fund, along with some economists, have made their forecasts and shared their views. As for why we have expressed confidence in our ability to achieve this target, I will elaborate on it here not from an academic or theoretical perspective, but based on a basic logic and common sense.

First, the fundamental driving factors for China's economic growth, including the 5.2% growth achieved last year, have remained unchanged, with some even growing significantly stronger. According to the report, China possesses several advantages for developing its economy, including vast market demand, a complete industrial system to ensure supply, and a huge and highly skilled workforce. For example, in recent years, new driving forces have been rapidly developing and growing stronger year by year. The new energy vehicle sector, for example, has expanded from scratch to what it is now in just over a decade. Last year alone, the production and sales volume exceeded 9 million, accounting for more than 60% of the global share.

Second, positive factors for economic development have been on the rise since the beginning of this year, while some of the unfavorable factors hindering economic development last year are weakening. In January and February of last year, we were still working hard for a smooth transition in epidemic response following a major, decisive victory in the fight against COVID-19. This year, the lingering effects of the epidemic are waning. For example, progress was made last year in preventing and defusing risks in real estate, local government debt, and small and medium financial institutions, thanks to the concerted efforts of all stakeholders. Real estate investment and sales improved overall. Certainly, some conditions are still changing. Local debt risks have been alleviated on the whole, and the reform of small and medium financial institutions to defuse risks is accelerating. In terms of preventing these major risks and potential dangers, we still face challenging tasks, as well as new situations and problems. But in any case, we are in a better situation this year than last year, not worse. The same applies to some other factors as well. By no means am I ignoring the difficulties and challenges in saying so. In fact, China still faces challenging and complex evolving dynamics at home and abroad in its economic development, and the report describes at length the difficulties and challenges we face. However, despite difficulties every year, we have consistently improved our quality of life. Zooming out, we can see that in recent years, China has been developing, progressing, and growing stronger in addressing difficulties and challenges.

Third, some major policy measures taken since last year gradually started to take effect this year. It takes some time for policies to take effect after they are implemented, so the effects of policies adopted in the second half of last year are expected to be revealed this year.

Moreover, we have gathered extensive experience while dealing with the difficulties over the past couple of years, especially those problems last year that have not been seen for several years. Fiscally and financially speaking, China's government debt ratio is below 60%, and its financial systems operated in a robust and stable manner. The country has ample space in macroeconomic policies. The government work report pointed out a lot of major policies to achieve this goal. There are also various tools in reserve that will enable us to deal with any unexpected shocks to the Chinese economy, or unexpected changes in the international environment.

According to the report, generally speaking, there will be both strategic opportunities and challenges, with favorable conditions outweighing unfavorable ones. China's economy expanded by 5.2% last year, so it is entirely possible that the economy will achieve the growth target of around 5% this year. Of course, hard work is necessary to make things happen. In order to achieve this year's target of 5% growth, we must meet challenges head-on and overcome difficulties, and all sides need to make continued efforts. In this regard, the report pointed out that as long as we fully implement the decisions and plans of the Party Central Committee, make good use of all favorable opportunities and conditions, and fully leverage the motivation, dedication and creativity of everyone , we will undoubtedly overcome any difficulties and challenges, promote sound and steady economic growth, and achieve this year's projected growth target.

Thank you. 

People's Daily:

We noted that this year's government work report put forward a lot of new policies and measures to ensure and improve the people's well-being, which we have all been looking forward to. What new benefits will the people receive this year? Can all these promises be fully met given the fact that some local governments are facing fiscal pressure? Thank you. 

Huang Shouhong:

Thank you for your questions. Improving the people's well-being is the fundamental purpose of development. This year's report focused on the public's concerns, and put forward a lot of policies and measures. Efforts to ensure and improve the people's well-being are reflected in many places in the report with various requirements.

For example, the overall requirements section and other parts of the report mention improving the people's well-being. In the section on education, the report stressed efforts to improve the conditions in boarding schools in rural areas. There are more than 30 million boarding students in compulsory education nationwide, many of whom are left-behind children. Although the conditions of boarding schools in rural areas have improved remarkably in recent years, many weak links remain. As such, the report emphasized increasing efforts to shore up such weak links so as to ensure these children can attend school and study well.

Regarding medical and health services, the report pointed out that subsidies for basic medical insurance will continue to increase, with government subsidies for basic medical insurance for rural and non-working urban residents increasing by 30 yuan to 670 yuan per person per year. Moreover, regarding difficulties in receiving medical treatment and getting reimbursement, the report noted that efforts will be made to implement and refine the policies on settling medical expenses where they are incurred, to improve medical services with a patient-centered approach, and to promote mutual recognition of medical examination results between hospitals.

Regarding social security, the report pointed out that continued efforts will be made to increase basic pensions for retirees, and the minimum basic old-age benefits for rural and non-working urban residents will be raised by 20 yuan per month. I'd like to briefly introduce this point. Currently, more than 170 million elderly people across the country have been receiving old-age insurance benefits for urban and rural residents. The minimum standard will be raised by 20 yuan this year, an increase of 19.4%, which is the largest increase in recent years.

The report contains a lot more measures to ensure people's well-being, but I will not list them all due to time constraints. 

Huang Shouhong:

As mentioned previously, some local governments are facing fiscal pressure. As such, there have been concerns raised about whether there will be sufficient financial support for the measures proposed in the government work report, as well as the reports on budgets, national economic and social development plans, and whether the promises can be fulfilled. The government work report made special emphasis in this regard, and made arrangements accordingly. In the section on proactive fiscal policy, it stressed that it will further improve the structure of government spending, and ensure sufficient funding for major national strategic tasks and efforts to meet people's basic living needs. The central government will increase transfer payments to local governments this year, with its budget being more than 10 trillion yuan. Governments at the provincial level, meanwhile, should allocate more fiscal resources to lower-level governments to ensure that at the primary level, basic living needs are met, salaries are paid and governments function smoothly. The budget report also made detailed arrangements on spending to meet basic living needs, which you may also refer to. 

I believe the arrangements for improving the people's well-being made this year will be fully implemented with the concerted efforts by all of us throughout the country. The government work report also emphasized efforts to address inadequacies in public well-being from the perspective of development. This is very important. Improving the people's well-being is also a driving force for economic development. Addressing problems regarding employment, elderly care and medical care will not only improve people's well-being, but also unleash the enormous potential of domestic demand. Therefore, we need to deal with issues regarding people's well-being, such as ensuring elderly care and child care, and facilitating kindergarten and school enrollment of children. As such, we need to increase investment, which will lead to expenditures in other areas. All the measures to ensure and improve people's well-being can be achieved, as we have made sure that the measures and targets are entirely feasible, and the government has studied and formulated supporting measures. While ensuring and improving the people's well-being, our fundamental principle is to do everything we can within our capacity. The government needs to fulfill its responsibility to meet people's basic needs, and provide a cushion for those most in need. On top of this, the government will do its best to improve people's well-being. Thank you. 

Beijing Youth Daily:

My question is about people's well-being. Employment is pivotal to people's well-being. In recent years, the employment of young people, especially college graduates, has generated widespread concern. The latest Report on the Work of the Government proposed adding no fewer than 12 million urban jobs this year. What were the considerations in setting this goal when faced with relatively high pressure in this regard? And can this goal be achieved? Thank you.

Huang Shouhong:

Thank you for your questions. Employment is pivotal to people's well-being. It concerns the most fundamental interests of both the country and individuals. Employment of the younger generation is the most important concern of every family.

In recent years, the CPC Central Committee and the State Council have put great emphasis on employment, and taken a slew of measures. This year's government work report highlights an employment-first approach and makes a series of measures. First, this year's report projects the number of added urban jobs to exceed 12 million, compared to "about 12 million" in last year's report. This demonstrates that the Party and the central government's strong efforts, determination and clear policy orientation in stabilizing employment. 

The report proposes an array of policies and measures in three aspects to achieve employment objectives, especially those about guaranteeing employment for young people and college graduates: First, policy support will be bolstered, including macro policy support. The report requires further support of fiscal and financial policies for employment, rolling out more policies conducive to stabilizing expectations, maintaining growth and guaranteeing employment. Meanwhile, specialized policies promoting employment are enhanced, such as policies on unemployment insurance premiums refunds, special loans for stabilizing and increasing employment, and employment and social insurance subsidies. 

Second, support for enterprises in key industries and key groups will be strengthened. The report requires to provide more support to sectors and enterprises with a large capacity for creating jobs, and more assistance for key groups like college graduates. The report also arranges work to ensure fair employment and guarantee the rights and interests , which are of great social concern.  

Third, vocational skills training will be enhanced. In China, the pressure on aggregate job creation coexists with the related structural issues. In many industries, fields and regions, some people don't have jobs, while some jobs are in urgent need of employees. Shortages of talented workers occur in many industries and sectors. For example, the manufacturing sector faces a shortage of 30 million employees. The potential need for elderly care workers amounts to more than 10 million, but the number of such workers is only over 300,000. Families with elders, especially those having elders with disabilities, may find it difficult to find skilled and practiced elderly care workers. Now, China has more than 5 million nurses, with an annual increase of 300,000 people. But the average number of nurses for each 1,000 people is only 3.7, lower than the average number of developed countries, which is from eight to 15 nurses. The shortages indicate our employment potential and the key lies in taking measures to align labor supply with demands and coordinate labor force's employment skills, professions and abilities with demands. The report points out that we will enhance vocational skills training to meet job demands in sectors such as advanced manufacturing, modern services, and elderly care. These policies shall ease current employment pressure and improve labor force's caliber in a bid to meet needs for high-skilled workers during economic development. 

In general, we face great pressure in stabilizing employment while seeing to the huge potential that lies in employment, and we strive to fully unleash this potential. The employment condition this year certainly will be promising. Thank you.

Lianhe Zaobao:

Chinese Premier Li Qiang mentioned in this year's government work report that the targeted fiscal deficit-to-GDP ratio is set at 3%. Why does China set the number at 3% this year? How to interpret this percentage? Thank you. 

Huang Shouhong: 

As is widely recognized, the fiscal deficit-to-GDP ratio serves as a crucial indicator reflecting the strength of fiscal policy and degree of fiscal risk. Globally, there is a "red line" of a 3% fiscal deficit ratio, but it is not a golden rule as many countries' deficit-to-GDP ratio may far surpass 3% at times, with some reaching double digits. In China's case, our deficit-to-GDP ratio has been kept within a reasonable and moderate range over the years, taking into account factors such as supporting economic growth, preventing fiscal risks and achieving fiscal sustainability. Over the years, China's deficit-to-GDP ratio only exceeded the 3% mark in 2020 and 2021, during the response to the COVID-19 pandemic. Otherwise, it has remained below the level. In the beginning of 2023, the central government set a deficit-to-GDP ratio of 3% when arranging the budget. With the issuance of an additional 1 trillion yuan in special treasury bonds in the fourth quarter, which counted towards the deficit, the ratio rose to approximately 3.8%. This year, we have set the deficit-to-GDP ratio at 3%, the same as the budget arranged at the beginning of last year. Although this year's deficit ratio is slightly lower compared with last year's after the issuance of 1-trillion-yuan government bonds , the overall level is appropriate. The fiscal arrangement is in line with the overall positive trend of China's economic operations, sending an optimistic message to the international community, which is also conducive to controlling the government debt ratio and enhancing fiscal sustainability. It also reserves policy space to address potential future risks and challenges. After considering these elements, we have set the deficit-to-GDP ratio for this year at 3%.

Recently I noticed that some experts, scholars and institutions are discussing what China's deficit-to-GDP ratio should be. Some suggest a little bit over 3% while some say a little lower than 3%. Fiscal deficit-to-GDP ratio should be set according to the general fiscal policy tools. The report says the country will appropriately enhance the intensity of proactive fiscal policy and improve its quality and effectiveness this yea r, which requires coordinated deployment of various policy tools to unleash overall effects. These include deficit, as well as other policy tools such as special bonds of local governments, national debt and preferential tax and fees policies. Therefore, this year's lower deficit after last year's adjusted budget doesn't mean the proactive fiscal policy abates. Rather, proactive fiscal policies mentioned in the report shall be considered as a whole. Though the deficit-to-GDP ratio maintains at 3%, the expanded GDP leads to a total of 4.06-trillion-yuan deficit this year, which is 180 billion yuan more than the budget at the beginning of last year. Besides, 3.9 trillion yuan of special-purpose bonds for local governments will be issued this year, an increase of 100 billion yuan over last year. The fiscal revenue this year will sustain a growing trend, and the fiscal expenditure will be quite large. This year, general public expenditures in the government budget are projected to reach 28.5 trillion yuan, an increase of 1.1 trillion yuan over last year. Hence, the fiscal policy this year is appropriately strengthened, and the key is to spend the budget wisely on vital sectors. By doing so, we will guarantee sufficient funding for major national strategic tasks and efforts to meet the people's basic living needs as required by the work report. 

Thank you. 

Zhinews of Shenzhen Satellite TV:

Last year, China saw a decline in actual foreign investment utilization, raising concerns about the confidence and outlook of some foreign enterprises in the country. How should we interpret this situation? What policies and measures will be implemented this year to attract foreign investment? Thank you.

Huang Shouhong:

From a data perspective, there was a decline in the actual utilization of foreign investment last year. Short-term fluctuations are normal and result from various factors, including many elements that are incidental or only last for a certain period. In addressing this issue, the focus should be on assessing the overall trend and trajectory.

Last year, according to data from the United Nations Conference on Trade and Development, global foreign direct investment (FDI) declined by 18% after excluding the rapid growth of FDI intermediaries. At the same time, countries worldwide are intensifying their efforts to attract investment, resulting in increased competition in this area. Last year, China's growth in attracting foreign investment decreased by 8% when denominated in RMB. However, the overall size remains relatively big, considering both horizontal and vertical comparisons. Vertically, China is currently at its third-highest level, slightly lower than in 2021 and 2022. Horizontally, China continues to rank first among developing countries in attracting foreign investment, with its share of global FDI exceeding 10% and remaining relatively stable.

Of course, attracting foreign investment faces some disruptive factors, and there are indeed some noteworthy new situations and issues to consider. However, it's important to note that investors are rational and focus on medium and long-term returns. According to statistics from relevant authorities, foreign investors who have invested and operated in China in recent years have enjoyed a direct investment return rate of around 9%, which is relatively high internationally. Therefore, China remains globally attractive for foreign investment. With China's vast market and immense potential, many technologies get adopted and promoted quickly here once brought in, including new ones in the field of digital economy. With over a billion smartphone and internet users in China, any new technology introduced here can be promoted quickly. The investment potential and opportunities in China are enormous, which is why foreign investors maintain a high level of enthusiasm for investing in the country. Recent surveys by some foreign chambers of commerce have shown that the vast majority of companies investing in China have no plans to reduce their investments, with a high proportion continuing to regard China as their top or one of their top three global investment destinations.

The government work report outlines several key measures to attract foreign investment. First, it emphasizes the steady expansion of institutional openness. Second, it underscores the ongoing efforts to relax market access for foreign investment. Over the years, the negative list for foreign investment access have consistently shortened. In 2013, the first version of the negative list contained 190 items, but the current nationwide version has been reduced to 31, and the version for free trade zones to 27. This year's report proposes abolishing all restrictions on foreign investment in the manufacturing sector. Market access restrictions will also be reduced in services sectors such as telecommunications and healthcare. Additionally, it stresses the need to regularly remove policy measures that undermine fair competition between domestic and foreign enterprises. Third, it emphasizes strengthening services for foreign investors, including the need to make China a favored investment destination and facilitate easier work, study and travel for foreign nationals in China. Thank you.

ThePaper.cn:

We have observed that some private enterprises currently lack confidence and are pessimistic about their development prospects, resulting in a reluctance to invest and expand production, further affecting private investment and employment. What effective measures will be taken this year to boost the expectations and confidence of private enterprises?

Huang Shouhong:

The private sector is a crucial component of the Chinese economy and a key driver of modernization. The CPC Central Committee and the State Council have attached great importance to the development of private enterprises and the private economy. In recent years, General Secretary Xi Jinping has delivered a series of important speeches, and the CPC Central Committee and the State Council issued documents last year to promote the development and growth of private enterprises. The government work report outlines the following measures in this regard:

First, it requires the implementation and refinement of various supportive policies. Over the years, numerous supportive policies have been introduced to promote the development of private enterprises. The overall implementation of these policies has been positive, but there are areas where full implementation has been lacking. It is imperative to continue refining and meticulously implementing these policies. Additionally, new measures addressing the concerns of enterprises should be introduced. For instance, regarding the issue of overdue payments frequently raised by private enterprises, the report calls for the improvement of the long-term mechanism to prevent and resolve overdue payments owed to private enterprises. Furthermore, to address the challenges of difficult and expensive financing faced by private enterprises, the report suggests increasing the proportion of loans to private enterprises and expanding the scale of bond financing, among other measures.

Second, it calls for efforts to optimize the business environment to address enterprises' concerns. The report highlights the importance of tackling the prominent issues faced by private enterprises concerning market access, access to factors of production, impartial law enforcement, and the protection of rights and interests. These issues are frequently reported by private enterprises. Additionally, measures will be taken to deepen the construction of a unified national market while ensuring a market order based on fair competition.

Third, it proposes support for the innovative development of the private economy. Since the beginning of reform and opening up, many private enterprises have made bold explorations and exhibited a keen entrepreneurial spirit, significantly contributing to economic growth, job creation, and the enhancement of people's livelihoods. This entrepreneurial spirit is a valuable asset. The report underscores the importance of encouraging entrepreneurship and supporting entrepreneurs to focus on innovative development and lead their companies to greater success. On the one hand, the government should cultivate a sound environment and provide platforms for private enterprises. On the other hand, private entrepreneurs should proactively pursue opportunities and overcome challenges. Reflecting on the past 40 years of reform and opening up, private enterprises have thrived despite various obstacles. While they currently face numerous difficulties and problems, it's helpful to consider the progress made compared to 40 years ago, 10 years ago, or even five years ago. Conditions for the development of private enterprises and various other factors have greatly improved. China's market mechanisms, legal environment and credit system have all seen significant enhancements. In the past, with the support of the Party and the government, private enterprises have continuously flourished. In today's landscape, by responding proactively to the requirements of the CPC Central Committee, private enterprises, which have achieved remarkable success in the past, are poised to achieve great new accomplishments in the future.

That's all from me for this question. Thank you.

Yicai:

The Central Economic Work Conference, held at the end of last year, pointed out that insufficient effective demand is a difficulty and challenge that needs to be addressed currently. This year's government work report makes arrangements for expanding domestic demand. What efforts will be made in this regard? Thank you.

Huang Shouhong:

Domestic demand has always been the main driving force of China's economic development. In recent years, it has accounted for more than 90% of economic growth. Following a smooth transition in epidemic response last year, China has seen a fast recovery in domestic demand. However, difficulties and issues also emerged during the expansion of domestic demand. The government work report has made arrangements in this regard, mainly focusing on three aspects:

First, we will promote steady growth in consumer spending. This year, we will take a full range of steps to unlock potential demand by increasing incomes, improving supply, and reducing restrictions. Potential demand is evident. Since last year, activities such as Village Super League football games, village Spring Festival galas, ice and snow tourism, and crossover collaborations have gained immense popularity. Street shopping in cities and leisurely tours in rural areas have become new trends, while domestic brands are gaining traction with consumers. These trends highlight the significant potential of new consumption patterns, which we plan to expand further this year. At the same time, we will boost spending on automobiles, home appliances, and other big-ticket items. That will include both newly added items as well as equipment renewal and trade-in of consumer goods. Additionally, we will propel the expansion and improvement of service consumption. In recent years, with economic development and the improvement of people's living standards, the demand for services has surged and service consumption has enjoyed sustained growth. This year, new measures will be taken to respond to this trend.

Second, we will work to increase effective investment. On the one hand, we will fully leverage the stimulating effect of government investment. In terms of volume, both central budgetary investment and local special bonds will increase compared to last year. In terms of investment areas, these investments primarily target areas where we need to address deficiencies and boost momentum, such as scientific and technological innovation, energy conservation, emission reduction, and ensuring people's well-being. On the other hand, we will stabilize and expand private investment. Relevant departments formulated policies to promote private investment last year, and this year, they will further implement and enhance some new measures proposed in the government work report.

Third, we will promote the integration of investment and consumption. This year, more emphasis will be placed on coordinating the expansion of domestic demand and deepening supply-side structural reform to create a virtuous cycle of mutual promotion between consumption and investment. For instance, not long ago, the Central Commission for Financial and Economic Affairs and a State Council executive meeting assigned an important task: to promote large-scale equipment renewal and trade-in of consumer goods. This initiative is significant for boosting both consumption and investment. The combination of these two aspects is one way of coordinating investment and consumption and tapping into the potential of domestic demand. Additionally, we will actively advance people-centered new urbanization, which offers comprehensive benefits. From the perspective of domestic demand, it serves as a large platform integrating investment and consumption. Last year, China's proportion of permanent urban residents in the total population was 66.2%, which still lags behind the rates of over 80% seen in developed countries. The urbanization rate of registered residents was even lower. From this perspective, there is still considerable room for development and improvement in China's new urbanization. An increase in urbanization will generate significant demand for both consumption and investment. According to relevant estimates, the consumption demand brought by a person moving to the city is significantly higher than that of a rural resident. This year, as a matter of priority, we will move faster to grant permanent urban residency to eligible people who have moved to cities from rural areas , as outlined in the government work report.

Thank you.

Red Star News:

The CPC Central Committee has reiterated multiple times the need to enhance the consistency of macro policy orientation to build a stable, transparent, and predictable policy environment. Thus, what aspects will the government pay attention to when formulating policies? Thank you.

Huang Shouhong:

Consolidating and building momentum for economic recovery and growth require us to enhance the consistency of macro policy orientation. In this regard, related arrangements have already been made at last year's Central Economic Work Conference and in this year's government work report.

First, we must enhance understanding, which means achieving unity in thinking with the CPC Central Committee. All localities and government departments have their own duties. When fulfilling these duties, they have to bear in mind the overall situation of the cause of the Party and the country. This year, our goal is to fulfill the main targets and tasks and promote high-quality development. Therefore, all localities and government departments have a responsibility to adhere to and serve this goal. They should actively consider what to do, and adopt more policies conducive to maintaining stable expectations, economic growth, and employment. They must exercise caution in formulating measures that could be contractionary or inhibitive in nature, and ensure the proper timing, intensity, and effect in introducing policies. Unity in thinking and enhanced understanding will lay a solid foundation for the consistency of macro policy orientation.

Second, we must set up and improve effective coordination mechanisms, thereby fully leveraging the roles of assessment, gatekeeping, and coordination. On the one hand, government departments under the State Council will conduct comprehensive and holistic assessments before introducing new policies to ensure they are conducive to steady growth and high-quality development. On the other hand, based on this, the National Development and Reform Commission will carry out further assessment using its policy and document evaluation mechanism. Policies and documents will only be released and implemented if they are proven, through the evaluation mechanism, to have no negative impact on stabilizing the macroeconomy and market expectations. Since many non-economic policies might directly or indirectly affect social expectations and economic operation, they will be included in the evaluation of the consistency of macro policy orientation according to the Central Economic Work Conference, in a bid to enhance policy coordination.

Third, in policymaking, all localities and government departments should heed and draw on the propositions and views of all concerned parties. They should pay attention to the views of business entities and respond to their concerns when formulating policies related to enterprises. Last year, relevant authorities established a regular communication mechanism between the government and enterprises, which has been well-received by enterprises. This mechanism will continue to be upheld and improved this year. Additionally, we should communicate policies to the public in a targeted manner to avoid misinterpretation and misjudgment by business entities. By doing so, we will effectively boost people's confidence in development and improve public expectations.

Thank you.

Chen Wenjun:

The press briefing has lasted nearly 100 minutes. We now have time for one last question.

CRNTT:

A good policy hinges on its implementation. The government work report this year proposed a number of policies and measures. How can we ensure that they are fully implemented? What does the government plan to do this year to transform its functions and improve its performance? Thank you.

Huang Shouhong:

Successful implementation is central to a good policy. No matter how good a policy is, it is meaningless if it is not implemented. This is like a flower reflected in a mirror or a moon reflected in water. Following the requirements of General Secretary Xi Jinping on policy implementation, which are to take prompt, pragmatic, resolute and effective steps to fully deliver on all work initiatives, the State Council has established and improved a mechanism to ensure the full implementation of this year's policies. This mechanism requires joint efforts from all levels to address challenges at the initial, intermediate and final stages of policy implementation.

First, we should see that all those involved assume their full responsibilities. Efforts to this end must start with the departments under the State Council. The government work report will have legal validity once it is deliberated and approved by the National People's Congress. Then, the State Council will break down and disseminate all policy requirements in the report to the related departments and set deadlines for formulating detailed and effective measures, as well as supporting policies. Arrangements have already been made in this regard, and related departments have conducted studies into the implementation of the policies and measures set out in the report concurrently with its drafting. As a result, we will see some specific policies and measures being released after the "two sessions." Localities should align with the guiding principles of the CPC Central Committee, the arrangements in the government work report, and their local conditions, and make proactive plans and fully utilize drivers and levers in their work, which are also necessary for policy implementation.

Second, we should enhance coordination among all involved parties. All localities and government departments should adopt a holistic approach to the government's operations. From the perspective of the public, enterprises, and external stakeholders, the government is a single entity, regardless of the region or department. The government will be blamed if any department or locality fails in policy implementation. That is why adopting a holistic view is crucial. We should promote efficient coordination between central government departments and local governments, as well as between and within different departments, and establish corresponding rules. We should adopt list management and closed-loop management for implementing major policies to address problems wherever they arise throughout the entire process, from policy design and implementation to feedback.

Third, we should strengthen supervision and inspections of policy implementation. Since last year, the new term of the State Council has improved its supervision and inspection mechanisms and made many specific arrangements in this regard. Meanwhile, the government work report emphasizes the need to strengthen follow-up evaluations of policy implementation and make timely adjustments and improvements to address various problems such as inadequate and superficial implementation.

Fourth, all involved parties, including the news media, the public, and enterprises, should play supervisory roles in policy implementation. The public and enterprises are most aware of which policies have not been implemented. Their joint participation in supervision will create synergy to ensure the full implementation of policies. This will ensure that the final outcomes of our work align with the Party Central Committee's decisions and intentions, meet the people's expectations, and ensure that the objectives and tasks for this year's economic and social development are accomplished.

Regarding your question on transforming functions and improving performance, the report emphasized the need to "improve government performance across the board." This includes accelerating the building of a digital government and promoting one-stop government services to enhance our service levels. We will firmly tackle pointless formalities and bureaucratism and improve oversight, inspection and evaluation. I will say no more due to time limits.

In short, the CPC Central Committee and the State Council attach great attention to the issue of implementation. They have already taken measures and will consistently adopt measures to ensure that the content of the government work report and promises made by the government are effectively fulfilled, living up to the great hopes and expectations of people across the country.

That's all from me. Thank you.

Chen Wenjun:

Thank you, Mr. Huang, and thank you to all our friends from the media. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Li Huiru, Huang Shan, Xu Kailin, Zhou Jing, Zhang Jiaqi, He Shan, Gong Yingchun, Wang Qian, Liu Jianing, Qin Qi, Yuan Fang, Mi Xingang, Lin Liyao, Wang Wei, Li Xiao, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Han Wenxiu, executive deputy director of the Office of the Central Financial and Economic Affairs Commission and director of the Office of the Central Rural Work Leading Group

Mr. Zhu Weidong, deputy director of the Office of the Central Financial and Economic Affairs Commission and deputy director of the Office of the Central Rural Work Leading Group

Chairperson:

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

Date:

Feb. 4, 2024

Chen Wenjun:

Ladies and gentlemen, good afternoon. China unveiled its "No. 1 central document" for 2024 yesterday, outlining deployments for studying and applying the Green Rural Revival Program's experience to effectively advance rural revitalization across the board. To offer you a precise and thorough understanding of this important document, we invited Mr. Han Wenxiu, executive deputy director of the Office of the Central Financial and Economic Affairs Commission and director of the Office of the Central Rural Work Leading Group, and Mr. Zhu Weidong, deputy director of the Office of the Central Financial and Economic Affairs Commission and deputy director of the Office of the Central Rural Work Leading Group, to introduce and interpret this document as well as to take your questions.

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

Han Wenxiu:

Ladies and gentlemen, greetings to you all. Under the strong leadership of the Communist Party of China (CPC) Central Committee, with Comrade Xi Jinping at its core, our work related to agriculture, rural areas and rural residents yielded notable results last year with agricultural output increasing, incomes for rural residents rising and rural areas' development flouring. Today marks Lichun, or the beginning of spring, the first of the 24 solar terms in the traditional Chinese lunar calendar. As the saying goes, with the arrival of Lichun, all living things come to life, signaling the start of a busy year for farming. Yesterday, the 2024 "No. 1 central document" on studying and applying the Green Rural Revival Program's experience to effectively advance rural revitalization across the board was released to the public. This signifies the 12th "No. 1 central document" that gives guidance for agricultural work, rural areas and rural residents successively being issued by the central government since the 18th CPC National Congress. It fully demonstrates such work's strategic significance as a top priority on the Party's work agenda, delivering a substantial "gift package" of policies to the rural residents for the new year. 

General Secretary Xi Jinping places great importance on agriculture, rural areas and rural residents, always caring for the rural population. At the Central Economic Work Conference held at the end of last year, he emphasized making sustained efforts to deliver in rural-focused work and made vital instructions on many occasions. This year's "No. 1 central document" presents a distinct theme and coherent structure, aiming to thoroughly implement the guiding principles of General Secretary Xi Jinping's important speeches and instructions as well as adhering to and strengthening the Party's overall leadership on work regarding agriculture, rural areas and rural residents. Anchoring the goal of building a strong agricultural sector, focusing on advancing rural revitalization across the board and drawing on the experience of the Green Rural Revival Program, the document systematically lays out procedures for current and future work regarding agriculture, rural areas and rural residents, and specifies priorities and approaches for rural revitalization. The overall framework of the document can be summarized as "ensuring two aspects, improving three sectors and enhancing two points."

"Ensuring two aspects" refers to ensuring national food security and no large-scale return to poverty. Ensuring national food security prioritizes implementing the food crop production strategy based on farmland management and technological application, maintaining stable farmland area while increasing per unit crop yield and guaranteeing that the grain output remains above 650 million metric tons. Ensuring no large-scale return to poverty prioritizes monitoring and applying assistance mechanisms to prevent people from slipping back into poverty, reinforcing industrial and employment support and striving to help areas and people that have just shaken off poverty build their own momentum for growth.

"Improving three sectors" means the cultivation of rural industrial development, rural construction and rural governance. Improving rural industrial development prioritizes spurring agricultural development by bolstering industries, raising quality standards and promoting green development, accelerating efforts to build a modern rural industrial system and transforming agriculture into a modernized large-scale industry. The key to improve rural construction lies in consistently upgrading rural infrastructure, living environments and public services based on local conditions and the needs of rural residents. Improving rural governance focuses on bettering the rural governance model based on self-governance, rule of law and rule of virtue, under the leadership of the Party, promoting cultural and ethical progress as well as ensuring social stability and harmony within rural areas.

The "two strengthenings" mean strengthening technologies and reforms as dual driving forces and strengthening measures for increasing farmers' income. The key to the former is to coordinate and promote sci-tech innovation and institutional innovation, further boosting rural revitalization with more vitality. The key to the latter is to implement actions that increase farmers' income and offer support to ensure continued income growth, allowing farmers to gain wealth and continuously improve their lives.

This year's "No. 1 central document" emphasizes the approach of pursuing progress while maintaining stability, promoting stability through progress, and establishing the new before demolishing the old. It also maintains that we should be goal-oriented and problem-oriented, focus on major tasks and overall deployments simultaneously, and balance work arrangements for the whole year and for different periods. Our work should be targeted and effective, driving innovation in policies and systems to tackle challenges and bottlenecks in rural revitalization, as well as addressing prominent issues of concern to farmers. The document contains several key points, proposing concrete policies and measures to improve agricultural insurance, refine the benefits compensation mechanism for main producing areas, enhance high-standard farmland development, and facilitate the transition of farmers to urban residents. The aim is to achieve solid results through effective measures and firm efforts, promoting comprehensive rural revitalization to attain new accomplishments and bring more tangible benefits to the farming population.

That's all from me for now. Next, my colleague Mr. Zhu and I will take your questions.

Chen Wenjun:

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

CCTV:

This year's "No. 1 central document" focuses on learning from the experience of the Green Rural Revival Program to advance comprehensive rural revitalization. However, situations differ in various localities. So, what should different regions learn from the program? And how should they go about learning it? Thank you.

Han Wenxiu:

The Green Rural Revival Program was a major policy decision that was personally planned and promoted by General Secretary Xi Jinping during his tenure in Zhejiang. It started with improving the rural environment and addressing issues of insanitation, disorder, and dilapidation. Over the past 20-plus years, the program has expanded its scope to cover all aspects of rural revitalization and has become a systematic effort. It has not only profoundly transformed the overall appearance of rural Zhejiang but has also become a successful example of promoting comprehensive rural revitalization through its pioneering efforts.

What should we learn from the program experience? I believe the key is to understand and apply the philosophies and methodologies used in the process. Zhejiang has gone through different stages to implement the program, with cities and counties differing in their foundations and conditions. However, the philosophies and methodologies have remained consistent throughout. These widely applied philosophies and methodologies include committing to the goals, making solid efforts, and perseverance; adopting a people-centric approach by setting objectives based on farmers' needs and aspirations; maintaining a holistic mindset by coordinating urban and rural development; adopting a region-specific, category-based method to foster and boost rural industries to enrich farmers; improving Party-building efforts as the guiding force while strengthening primary-level structures; and continuously enhancing and improving rural governance. These development philosophies, methodologies, and mechanisms for carrying forward our work reflect our values and derive effective measures. They are the essence of the program and are worth learning from.

How do we learn from the program experience? The key is to start from reality and make breakthroughs based on actual conditions. China's vast countryside results in significant variation. Natural conditions, customs and traditions, development levels, and foundations for carrying out work all differ from one place to another. Therefore, while learning from and using the experience of the program, we should grasp its essence and adapt it flexibly to local realities. It is important to closely align with the actual situation and, by addressing prominent issues of great concern to farmers, determine the focus and clarify the steps to proceed with the work. We should innovate based on local conditions, and progress step by step, and pool strengths to accomplish concrete results that ordinary people can feel and see. As we continuously achieve phased results in rural revitalization, the sense of gain, happiness, and security among rural residents will continue to increase. Thank you.

People's Daily:

The "No.1 central document" emphasized "two ensures," with the first being to ensure national food security. Could you please outline the practical measures that will be taken to stabilize food production and ensure food security at a higher level? Thank you.

Zhu Weidong:

Food security is of utmost importance to any country. In recent years, facing challenges such as a severe global food security situation and frequent domestic natural disasters, we have prioritized feeding our population of 1.4 billion as the top task in our work related to agriculture, rural areas and farmers. We have made every effort to boost production and secure good harvests. In 2023, China's total grain output reached a historic high of 695.41 million metric tons, up 8.88 million metric tons from the previous year. This ensures we have a sufficient food supply and full reserves, providing strong support for sustained economic recovery.

However, we should be aware that structural problems in the food supply remain prominent, and the tight balance between grain supply and demand has not fundamentally shifted. Therefore, we must redouble our efforts to ensure national food security at all times. This year's "No. 1 central document" coordinated work on grain production, circulation, and consumption, introducing a series of policies. Centering on ensuring food production and supply, the document outlined major measures such as stabilizing grain acreage and increasing per-unit crop yield, so as to maintain grain output above 650 million metric tons.

First, we will keep grain acreage stable. The key is to motivate farmers to grow grain and local governments to prioritize grain production. To encourage farmers, we will strengthen policies and measures regarding prices, subsidies, and insurance. In terms of prices, we will appropriately increase the minimum purchase price for wheat and set a reasonable minimum purchase price for rice to protect farmers from being harmed by low grain prices. In terms of subsidies, we will continue to provide subsidies for purchasing agricultural supplies with the aim of protecting the soil fertility of cultivated land. We will offer subsidies for corn and soybean producers, as well as for growing paddies. We will improve subsidies for purchasing and using agricultural machinery, optimize the mechanism for ensuring the supply and stabilizing the price of agricultural materials, and enhance the effectiveness of subsidies. In terms of insurance, we will expand the coverage of full-cost insurance and planting income insurance policies. We will work to ensure that the insurance policies are implemented across the country for the three staple grains — rice, corn and wheat, and cover more areas for beans in an orderly manner. Implementing these policy measures will ensure that farmers can profit from growing grain. To motivate local governments, we will emphasize both responsibility and support. We will ensure that both Party committees and governments assume responsibility for food security and step up efforts to support major grain-producing counties. Efforts will also be made to develop an inter-provincial horizontal compensation mechanism for the major grain producing and marketing regions. These efforts will motivate local governments to focus on grain production without suffering losses. 

Second, we will focus on increasing per-unit crop yield. Given the limited arable land and minimal room for expansion, the potential for growth primarily lies in enhancing per-unit crop yield. The document clearly states that the focus for increasing grain output should be on significantly boosting per-unit crop yield on a large scale. This will be achieved by launching a grain yield improvement project and promoting high-quality fields, seeds, machinery, and practices. The focus should be on seeds and cultivated land. In terms of seeds, we will move faster to invigorate the seed industry and achieve breakthroughs in core technologies in key fields, striving for significant progress. We will strengthen agricultural infrastructure for cultivated land, raise the investment standards and quality of high-standard farmland development, and improve water conservancy facilities. Efforts will also be made to enhance the capacity for disaster prevention, reduction, and relief in agriculture. We will implement multiple measures to promote a new round of action to increase grain output by 50 million metric tons.

Third, we will expand food sources. Ultimately, food security is about food sufficiency. Meat, eggs, milk, fruits, vegetables, and fish are all necessities for a high-quality life, and none should be missing from the dining table. Solving the food problem requires an all-encompassing approach to agriculture and food. While protecting the ecological environment, we will utilize all available land resources and establish a diversified food supply system to ensure that people across the country have enough to eat, a varied diet, and a healthy diet.

Fourth, we will enhance grain conservation and reduce food losses and waste. In a sense, conserving grain and reducing food loss is equivalent to increasing grain output and supply. Currently, there is significant grain loss at all stages of production, transportation, storage, processing, and consumption, with food waste at the dining table being particularly alarming. The document emphasizes the need to deepen food-saving actions, promote the value of thrift, cultivate healthy eating habits, and resolutely curb food waste, making grain conservation a widespread social practice. Thank you.

The Paper.cn:

Major grain-producing areas serve as an important anchor for ensuring national food security. However, these areas are often stuck in a long-time financial dilemma, which is the negative correlation of grain yields and the fiscal revenue. May I ask, what policies and measures have been adopted to incentivize major grain-producing areas? Thank you.

Han Wenxiu:

Major grain-producing areas play a big part in increasing grain production capacity and ensuring grain supply. China's 13 major grain-producing areas produce more than 80% of the country's total output. Meanwhile, we should also notice the poor economy and government finances of these areas, which is a prominent problem. Major grain-producing counties are often weak economically and face fiscal difficulties. This problem, if it remains unsolved, will discourage them from wanting to continue to grow grain and will affect the overall grain production and supply. This year's No. 1 central document has made targeted arrangements for this with a focus on refining the interest compensation mechanism for major grain-producing areas. 

On the one hand, we will step up support to major grain-producing counties. We will focus on further increasing rewards and subsidies to major commercial grain-producing counties that make more contributions to national food security, and cancel the matching requirements for funds used in high-standard cropland development in major grain-producing counties. We will also address the weaknesses of major grain-producing counties in their public services and launch an initiative to improve their relevant capacity. This year, trials will first be launched in four major grain-producing provinces and an autonomous region, including Jilin, Heilongjiang, Anhui, Henan, and Inner Mongolia, and then gradually be promoted in other places.

On the other hand, we will establish an interest compensation mechanism for major grain-producing areas. This year, we will strive to make solid progress in solving the long-time challenge. The No. 1 central document has proposed exploring the establishment of a trans-provincial interest compensation mechanism for grain-producing and grain-selling areas and deepening production-marketing coordination through multi-channels. At present, relevant departments are busy developing specific implementing measures. In overall consideration of factors such as grain production, circulation, and consumption in major grain-producing and grain-selling areas, a basic approach has been put forward that requires major grain-selling areas to provide a certain level of financial support for major grain-producing areas so as to deliver real gains to them through horizontal interest compensation. Also, the two sides should further expand collaboration in industries, talent, and technological services and take more solid measures to ensure major grain-producing areas won't suffer losses from growing grains. 

In terms of industrial development, we will expand and extend the industrial chain. Major grain-producing areas are endowed with abundant grain resources, yet their small-scale grain processing industry has a poor conversion rate of on-site processing. The No. 1 central document has proposed to promote the layout of agro-processing industry in major grain-producing areas, including supporting the construction of agro-processing industrial parks in major production areas of grains and other important agricultural products, supporting the development of the whole-industrial-chain processing of soybeans and other agricultural products in the northeastern region, creating food and feed industry clusters, and promoting value-added transformation on-site and in the vicinity so as to speed up our efforts to bring prosperity to major grain-producing counties and their residents.  

That concludes my brief answer. Thank you.

Beijing Youth Daily:

Thriving industries are the prerequisite for rural revitalization. An important experience drawn from the Green Rural Revival Program is to take industries as our foundation. May I ask what measures you will take to develop local rural industries so that they have a competitive edge? Thank you.

Zhu Weidong:

Industries serve as the foundation for rural revitalization. During these years, all localities have laid a good foundation for developing rural industries, while weak business entities, short industrial chains, inadequate capacity to drive development, and homogeneous competition remain prominent problems. This year's No. 1 central document has stressed that we should adhere to spurring agricultural development by invigorating industries, raising quality standards, and promoting green development. We should also accelerate the construction of a modern rural industrial system that coordinates the planting of grain, feed, and cash crops; gives equal consideration to agriculture, forestry, animal husbandry, and fishery; improves the interconnection of production, processing, and marketing; and promotes the integration of agriculture, culture, and tourism. By doing so, we will turn agriculture into a large modern industry.

First, we should prioritize local specialties. Different regions in China, although differing greatly from each other, are blessed with a rich endowment of natural resources. So there is huge potential for developing local specialties. We should adopt modern operating concepts, standards, and models to fully demonstrate the competitive edge of local specialties, create brands with distinct local characteristics, and accelerate the conversion of resource strengths into product and industrial strengths.

Second, we will focus on industrial integration. During this year's Spring Festival holiday, rural homestays saw high demand in various regions, which emerged as a new highlight of holiday consumption. To meet new consumption needs, we will explore the multiple functions of agriculture, the diverse values of villages, and develop new industries and business formats, including ecological tourism, forest healthcare, and leisure camping. We will promote the integrated development of the primary, secondary, and tertiary industries in rural areas to create new growth points for the rural economy.

Third, we will strengthen the processing of agricultural products. To meet residents' demands for convenience and improved quality in consumption, we will advance the coordinated development of agricultural product production, primary processing, fine processing, and deep processing. We will renovate and improve processing facilities and further expand the breadth and depth of agricultural product processing.

Fourth, we will enhance rural logistics. Currently, some areas face difficulties in selling fine products and achieving good prices due to insufficient logistics distribution capacity, which hinders industrial development. The document makes plans on improving the logistics distribution system in counties and villages, optimizing the cold chain logistics system for agricultural products, and implementing high-quality development projects for rural e-commerce. In particular, rural e-commerce has become a crucial engine driving the development of rural industries. Through e-commerce platforms, local specialty products from remote mountain valleys can reach urban households. We will provide greater support to accelerate development in this area. Thank you.

China Rural Periodicals, Crnews.net:

Income is the most concerning issue for rural residents. What arrangements will be made to promote sustained income growth for farmers? Thank you.

Zhu Weidong:

Increasing rural income is the central task of our work related to agriculture, rural areas and farmers. In recent years, rural income growth has shown sound momentum. In 2023, the per capita disposable income of rural residents reached 21,691 yuan, growing 7.6% year on year in real terms. The income gap between urban and rural residents has narrowed to a ratio of 2.39-to-1. However, there are also difficulties and challenges in maintaining this momentum. This year's document places a strong emphasis on measures to strengthen income growth for farmers, focusing on four key areas.

First, we will tap the potential of industrial operations to increase rural income. Promoting rural household businesses remains a key focus for increasing farmers' income. The document proposes implementing campaigns to facilitate rural income growth and supporting the development of family-operated projects such as specialized planting and breeding, handicraft workshops, and those related to the non-timber forest-based economy. It also calls for optimizing monitoring and early-warning mechanisms for the whole industrial chain, strengthening coordinated regulation across various kinds of products, increasing the effectiveness of consumer assistance actions to support income growth for farmers, and ensuring price stability to promote income growth. Meanwhile, we will intensify policy support for integrating rural and industrial development, enhancing mechanisms that ensure new agricultural business entities and agriculture-related enterprises enjoy supporting polices which also help drive rural income growth. This will better engage farmers in industrial development and allow them to share in the benefits of added value.

Second, we will stabilize the income of rural migrant workers. Wage income has become the primary pillar of farmers' income. The document emphasizes advancing vocational skills training for farmers, optimizing mechanisms for cross-region information sharing and well-organized labor collaboration, supporting senior migrant workers in finding jobs, and actively promoting work-relief programs in major projects as well as agricultural and rural infrastructure construction, thereby advancing rural employment through various channels. To address issues concerning wage arrears owed to rural migrant workers, the document proposes enhancing prevention and control at the source, strengthening risk warning, and improving long-term mechanisms to address the root causes. As this year comes to an end and the Chinese New Year approaches, relevant departments are conducting campaigns to combat back pay, striving to ensure a happy new year for rural migrant workers.

Third, we will expand rural transfer income. Transfer income is an important part of income for general rural households and particularly for the low-income population. We will continue to beef up policy support to strengthen agriculture, benefit farmers, and raise rural living standards, and gradually increase social security levels in rural society. The document emphasizes strengthening supervision over agricultural-related capital and projects and carrying out a severe crackdown on illegal activities such as embezzlement and fund fraud. We will ensure that all subsidies and allowances for farmers are fully allocated and that farmers receive the true benefits.

Fourth, we will give farmers more comprehensive property rights and interests. There is still significant potential for property income growth. The document proposes encouraging the revitalization and utilization of resources and assets, including idle rural residential land, vacant houses, and barren land, through methods such as renting, cooperative development, and equity participation. These measures aim to create conditions to increase farmers' property income through multiple channels. Thank you.

China News Service: 

Ensuring that a large-scale return to poverty does not occur is the bottom-line requirement for promoting comprehensive rural revitalization. Could you please tell us about the current situation in consolidating the results of poverty alleviation? How can we ensure this bottom line and help areas that have been lifted out of poverty move from "receiving aid" to "becoming self-sufficient?"

Han Wenxiu: 

Eliminating absolute poverty is a historic achievement recognized worldwide, attained through the hard work of the entire nation under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core. Preventing a large-scale return to poverty is a critical task in work related to agriculture, rural areas, and rural residents. In recent years, effective mechanisms and measures have been established across various regions, and the achievements in poverty alleviation have been consolidated. By the end of 2023, over 60% of those monitored to prevent a return to poverty had eliminated the risk. Support measures have been implemented for the remaining individuals, effectively preventing a large-scale return to poverty.

For a family or community, poverty alleviation is not a one-time effort. Structural unemployment, illness, disasters, accidents, and other factors can still push people back into poverty. Preventing a large-scale return to poverty is both a major economic and political task that requires continuous effort. We cannot afford to slacken our efforts in either thinking or action. This year's No. 1 central document emphasizes three key areas:

First, we must improve monitoring and support. Monitoring factors and dynamic changes that could lead to a return to poverty must be timely and effective, with immediate support measures to eliminate risks. We must ensure responsibilities are fulfilled, make good use of big data early warning systems, and further enhance the timeliness of monitoring and the precision of support to secure the bottom line of preventing a return to poverty. Additionally, efforts should be accelerated to promote interconnectivity between the poverty prevention monitoring system and the dynamic monitoring information platform for low-income populations, strengthening cross-departmental information integration and sharing to avoid redundant construction and information silos.

Second, we must strengthen industrial and employment support. These are fundamental measures to consolidate and expand the achievements of poverty alleviation. In recent years, a batch of industrial projects have been implemented as part of the poverty alleviation efforts. Strengthening industrial support should focus on improving the quality, efficiency, and sustainability of industries, providing targeted guidance, and addressing shortcomings in technology, infrastructure, and marketing in accordance with the requirements made in this year's No. 1 central document on consolidating, upgrading, revitalizing, and adjusting industries. Additionally, enhancing the performance management of funded projects will ensure that the local population has a stable industrial foundation. Last year, a total of 33.969 million people who have been lifted out of poverty found jobs outside their hometowns, an increase of 1.19 million over the previous year, showing a stable increase. To strengthen employment support, the focus should be on stabilizing the employment scale of the people who have shaken off poverty, advancing initiatives to prevent a return to poverty through employment, and leveraging the roles of labor collaboration between eastern and western regions, employment support workshops, and public welfare jobs. This will ensure that those with the ability to work have stable jobs.

Third, we must enhance self-development capabilities. With less than two years left in the transition period for consolidating and expanding the results of poverty alleviation and effectively linking them with rural revitalization, it is fundamentally necessary to enhance internal motivation and focus more on "self-sufficiency" for the continuous development of areas that have shaken off poverty and the sustained income growth of people who have gotten rid of poverty. The goal is to transition from "receiving aid" to "becoming self-sufficient." The No. 1 central document specifies that for key areas, such as counties receiving focused support for rural revitalization and concentrated resettlement areas for relocation, further preferential support policies in fiscal, finance, land, talent, and paired assistance should be implemented. These policies aim to improve development conditions, enhance development capabilities, and help these areas achieve income growth and prosperity through their own efforts, thereby enhancing their living standards. Thank you.

Tide News under Zhejiang Daily Press Group:

The 20th CPC National Congress proposed building a beautiful and harmonious countryside that is desirable to live and work in. So, what are the current priorities for rural development? And how can we advance this goal? Thank you.

Zhu Weidong:

Rural development is the focal point of solving the imbalance between urban and rural areas. It also has great potential to expand domestic demand and promote high-quality economic development. Rural development has made positive progress in recent years, and rural infrastructure and public services have been greatly improved, but there still are many weak links. The "No. 1 central document" for 2024 emphasizes that rural development should be based on the actual conditions of each locality and the needs of farmers. It should seize opportunities to benefit all and focus on accomplishing specific tasks effectively.

First, we will enhance the guiding role of rural development plans. It is necessary to comply with the principles of rural development and the trend of urbanization, and provide classified guidance for village planning. Plans should be formulated only if necessary; if there is no need, plans can be temporarily set aside. We should not recklessly require villages to formulate plans. The practice in some places of setting unrealistic targets and schedules must be corrected promptly. It is necessary to adhere to "open-door planning" to ensure that the plans align with the actual situation of the village and the wishes of the farmers. This way, rural officials and residents can understand, abide by, and utilize the plans effectively.

Secondly, we must continue to improve the living environment. Different regions have varying levels of economic development and natural geographical conditions. Therefore, we should upgrade rural toilets and sewage and refuse treatment facilities based on local conditions. We should explore a reward and subsidy model where farmers voluntarily renovate their toilets according to standards, and receive subsidies from the government after passing inspection. This clarifies the roles of the government and farmers. We should fully leverage the motivation of farmers. We must continue to fight against pollution in agriculture and rural areas and promote the integrated protection and restoration of the rural ecology, ensuring that rural areas have bluer skies, greener lands, and clearer waters.

Third, we need to address inadequacies in infrastructure. We will list prominent issues reported by farmers and resolve them one by one. In response to safe drinking water issues in some places, the document requires to improve the rural water supply facilities based on local conditions. The increasing number of new energy vehicles (NEVs) in rural areas calls for strengthening the planning and construction of charging and battery-swapping facilities in key villages and towns. We will address the poor seismic resistance of rural houses in some areas. This requires continuing the renovation of dilapidated rural houses and the seismic retrofitting of rural houses to ensure that farmers can live safely and with peace of mind.

Fourth, we will improve public services. We will focus on public services that are inclusive, meet essential needs, and ensure basic living standards for people in difficulty, and address the concerns of farmers. In education, we should strengthen the construction of boarding schools and properly run necessary small-scale rural schools to improve the quality of rural education. In healthcare, we should channel more medical resources towards rural areas, gradually increase the proportion of medical insurance funds used in rural medical and health institutions, and accelerate the inclusion of village clinics into the designated medical insurance institutions, making it more convenient for rural residents to seek medical treatment and obtain medication. In elderly care, we should improve the rural elderly care services and the incentive mechanism for basic pension schemes to incentivize urban and rural residents to pay more to get more, resolving their worries about the future.

Fifth, we must grasp the proper timing, intensity, and effectiveness of rural development. Rural development should prioritize building for the benefit of farmers and focus on sustainability. In some areas, phenomena such as boastfulness, wasting manpower and money, implementing a one-size-fits-all approach, and issuing coercive orders in rural development must be resolutely rectified. We must adhere to the principles of proceeding from reality, prioritizing quality over quantity, and emphasizing progress based on effectiveness. We oppose rash and reckless moves or unthinkingly borrowing money to carry out construction beyond the current development stage. Thank you.

Science and Technology Daily:

We understand that rural governance is a key and challenging aspect of modernizing the national governance system and governance capacity. So, how can we address the current prominent problems in rural governance and improve the level of rural governance?

Han Wenxiu:

China's rural areas are undergoing major changes, including profound shifts in the size and structure of rural population, ways of life and work, way of thinking and cultural concepts, and the traditional rural order. These changes have put forward new requirements for modernizing the rural governance system and governance capacity. The "No. 1 central document" for 2024 focused on improving the level of rural governance and made arrangements in several aspects.

First, strengthening primary-level Party organizations in rural areas. As the saying goes, a train can only run fast because of its locomotive. Primary-level Party organizations serve as the "locomotive" in driving the development of various rural undertakings. The document emphasizes advancing rural revitalization through Party-building and keeping a clear focus on the primary level in strengthening Party organizations. The Party committees at the county level should ensure their role in promoting the development of townships in a bid to boost the development of villages, effectively playing the political and organizational functions of the primary-level Party organizations in rural areas. Currently, Party committees at village and township levels take on many responsibilities and have limited resources and heavy burdens, so it is crucial to address the problem of "a little horse pulling a big cart" in community-level governance. A strict entry system for higher-level departments' involvement in grassroots affairs must be implemented, along with a sound list of grassroots responsibilities and tasks. It is essential to strengthen management responsibilities of towns and townships over representative offices and personnel of county-level departments, increase the allocation of staffing resources to townships, optimize various agriculture-related inspections and assessments, and reduce the burden of superfluities surrounding inspections and assessments. This will allow grassroots Party committees to focus more on connecting with the people and serving the people. 

Second, improving the rural governance system under the Party's leadership. The key is to continue to shift the focus of social governance to the community level, channel resources down to the community level, and combine traditional governance resources with modern governance methods. The document calls for applying and further developing the "Fengqiao model" in the new era and implementing the practices of going into communities to communicate the Party's lines and policies, carry out research and studies, address people's complaints, and conduct fieldwork, improving mechanisms for preventing social tensions and disputes at the source, screening and providing early warnings, and settling issues through multiple means. It also calls for promoting effective methods, such as the accumulated points system and the list system, to resolve problems at the community level and nip them in the bud. Some areas have been struggling with recurring natural disasters and safety incidents for a long period. The document emphasizes the need to promote the construction of disaster prevention and mitigation projects in rural areas, an information-based emergency management system, and public fire safety facilities, aiming to enhance risk avoidance, self-rescue, and mutual rescue capabilities. Additionally, the document calls for continued efforts to crack down on various illegal activities to make rural areas safer.

Third, enhancing public civility in rural areas. The modernization of agriculture and rural areas should cohere with material and cultural-ethical advancement. We adhere to the combination of dredging and blocking, addressing both symptoms and root causes via a two-pronged approach. On one hand, we must ensure the supply of high-quality cultural and intellectual products, promote a flourishing rural culture, and strengthen the protection, inheritance, and innovative development of fine rural traditional culture. In recent years, activities like "village BA" basketball tournaments, "village super league" football games, and "village spring festival galas" have been very popular. This year, many activities were held across the country during the Spring Festival holidays, empowering farmers to take the lead, and ensuring that mass cultural and sports activities thrive and flourish. On the other hand, priority should be given to addressing undesirable rural customs. In some regions, extravagant weddings and funerals have become a heavy burden on farmers, causing significant distress. The document calls for a comprehensive approach to address the pressing issues of excessive betrothal gifts and lavish weddings and funerals, promoting social reforms so as to provide farmers with more convenient social services. It also calls on empowering the system of villager autonomy and strengthening the incentive and constraint functions of village rules and regulations, aiming to eliminate bad habits and foster new trends in rural areas. Thank you.

Economic Daily:

The migration of rural populations to urban areas remains a dominant trend. Given this, what efforts will be made to ensure coordinated development between new urbanization and rural revitalization and better promote the urbanization of the migrating agricultural population? Thank you.  

Zhu Weidong:

As the journalist pointed out, China is witnessing rapid urbanization, and this process is expected to continue for a long period. In 2022, China's permanent rural population was 491 million. Experts estimate that over 100 million more rural residents will move to urban areas by 2035. We need to foster a welcoming and supportive environment for those moving to urban areas while ensuring a comfortable and satisfying life for those who stay. We will coordinate new urbanization with rural revitalization across the board and ensure integrated design and coordinated implementation in a bid to facilitate the two-way flow of various factors and foster a new development paradigm of integrated development of urban and rural areas. This year's "No. 1 central document" has made specific deployments in this regard.

First, it is about solidly advancing the granting of permanent urban residency to eligible individuals who have moved from rural areas to cities. The emphasis is on implementing a new round of actions to grant permanent urban residency to these individuals, improving the system for providing basic public services in areas of permanent residence, and accelerating the expansion of urban public services to cover all permanent residents. The document stresses the importance of encouraging eligible counties (cities, districts) to include all urban permanent residents in the housing security policy, thereby helping farmers who are able and willing to move to cities better integrate into urban life.

Second, it focuses on protecting the legal rights and interests of farmers who move to and settle in cities. The process of farmers relocating to urban areas is lengthy, and before they have fully settled, we should not hastily cut off their option to return to the countryside. It is essential we safeguard their rights to rural land contractual management, the use of rural land designated for housing, and collective income distribution.

Third, it focuses on accelerating the integrated development of urban and rural areas within counties. Over the years, urbanization in county areas has developed rapidly, with more farmers moving to counties for employment and residence. The document emphasizes enhancing the comprehensive accommodation capacity and governance ability of counties, promoting the functional integration and complementarity of counties, townships, and villages, and optimizing the allocation of resources and factors. The key is to employ a dual approach. On the one hand, we will advance urbanization with counties as key hubs, enhancing these counties as leaders and leveraging their role in driving rural areas. On the other hand, we will adapt to trends in rural development and demographic changes, optimizing the layout of villages, industrial structures, and the allocation of public services. We will work to ensure that basic livelihood needs are met while avoiding the wastage that occurs when villages are newly built and then abandoned as people move away. Thank you.

Chen Wenjun:

The last two questions.

Southern Metropolis Daily:

To address the issues facing agricultural and rural development, we ultimately must rely on reform. Could you please tell us what arrangements this year's "No. 1 central document" has laid out for rural reform? What new reform measures have been introduced? Thank you.

Zhu Weidong:

To promote rural revitalization, we must effectively utilize the powerful tool of deepening reform. On the new journey of the new era, the tasks related to agriculture, rural areas, and rural residents are more challenging, and the issues are more complex. We must further deepen rural reform, break institutional obstacles, and liberate and develop productive forces. This year's "No. 1 central document" has outlined key tasks for deepening rural reform.

First, we need to consolidate and improve the basic rural operational system. The policy direction to extend rural land contracts by another 30 years upon the expiration of the second-round contracts has been clarified. This year, we will conduct province-wide trials, exploring specific implementation methods, thereby laying a solid foundation for nationwide expansion. The document also proposes building a modern agricultural operation system based on small agricultural households, with a focus on new types of agribusinesses, and supported by commercial agricultural services. We aim to rapidly develop a high-quality production and operation force suitable for modern agricultural development, with a specific focus on addressing the issue of "who will farm the land."

Second, we need to deepen the reform of the collective property rights system. The preliminary phase of this reform, which included asset inventory and share quantification, has been completed. As we focus on completing the second half of this reform, we will encourage various localities to explore diversified approaches, such as property rentals, intermediary services, and asset-based shareholding, based on local conditions and under strict risk control. This aims to promote the healthy development of new rural collective economies.

Third, we must uphold fundamental principles and break new ground. Rural reform has entered uncharted territory, affecting the vital interests of hundreds of millions of farmers. We must stick to the bottom line of rural reform, encourage local exploration and system innovation, enhance the integration and efficiency of reform measures, and stimulate the vitality and dynamism needed for rural revitalization. Thank you.

China Daily:

Agriculture is fundamentally based on land. Could you please tell us what new requirements this year's "No. 1 central document" has put forward regarding the protection and development of farmland? Thank you.

Han Wenxiu:

Farmland is the backbone of food production, and there can be no food security without secure farmland. Over the past two years, various regions have implemented stringent measures to enforce farmland protection systems, yielding positive results. According to statistics, China's total farmland area has witnessed a net increase for three consecutive years from 2021 to 2023. This year's "No. 1 central document" emphasizes improving the comprehensive system for protecting farmland quantity, quality, and ecology. Efforts will be focused on three main areas to ensure the amount of farmland is guaranteed and its quality is improved.

First, the total amount of farmland must be strictly maintained. The red line of 1.8 billion mu (120 million hectares) of farmland must not be crossed. The latest round of national land space planning has specified the protection tasks for 1.865 billion mu of farmland and 1.546 billion mu of permanent basic farmland, with responsibilities allocated to each region. The document sets clear requirements for implementing these tasks. For the lawful occupation of farmland, the focus is on reforming and improving the balance system of occupation and compensation, adhering to the principle of "compensation determines occupation," strengthening the quality acceptance system for compensated farmland and preventing situations where more land is occupied than compensated or higher-quality land is replaced with lower-quality land. For illegal acts such as unauthorized occupation or destruction of farmland, including the unauthorized construction of "greenhouses," destruction of black soil, and illegal soil extraction, a zero-tolerance policy must be maintained, with resolute rectification and severe punishments enforced, investigating and addressing every case that is discovered. Regarding the issue of converting farmland to non-grain uses, it requires a careful balancing act. It is crucial to consider the relationship between grain production, the security of important agricultural products, and farmers' income, and to clearly define the scope of rectification, arrange restoration schedules reasonably, and carry out the rectification and restoration of illegally occupied farmland in a classified and steady manner. The implementation of central policies must be strictly followed, with attention paid to the methods used for implementation, avoiding oversimplification or one-size-fits-all approaches.

Second, farmland quality must be improved. The "No. 1 central document" emphasizes the construction of high-standard farmland to enhance farmland quality. It prioritizes transforming farmland in the northeast black soil region, plains regions, and areas with water irrigation conditions into high-standard farmland, ensuring that limited funds are used effectively. In response to widespread concerns about low investment standards for high-standard farmland construction, a firm commitment has been made to raise central and provincial investment subsidies this year. Additionally, quality supervision will be strengthened to ensure that every plot of land transformed into high-standard farmland meets the rigorous standards set forth. Rural collective economic organizations, new agricultural business entities, and farmers are encouraged to participate directly in constructing and maintaining high-standard farmland.

Third, we must tap into the potential of reserved farmland resources. The focus is on two types of land: abandoned land and saline-alkali land. For abandoned land, regions are encouraged to utilize it according to local conditions, planting grain where suitable or engaging in other economic activities where appropriate. In cases where genuine challenges prevent cultivation, rural collective economic organizations are supported in effectively using it through various means such as land transfer, trusteeship, and unified management. Saline-alkali land, which is abundant in our country, holds immense development potential with technological advancements. The approach combines "suitable land for crops" and "suitable crops for land," matching seeds with saline-alkali land to carry out zonal and classified management and improvement of saline-alkali farmland, and exploring effective ways to comprehensively utilize saline-alkali land. Thank you.

Chen Wenjun:

Thank you, Mr. Han Wenxiu and Mr. Zhu Weidong, and thank you to all the journalists. This concludes today's press conference. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Qian, Liu Sitong, Ma Yujia, Cui Can, Zhang Junmian, Li Xiao, Zhou Jing, Liu Jianing, Wang Wei, Xiang Bin, Yan Bin, Huang Shan, Gong Yingchun, Yang Xi, Li Huiru, Zhang Rui, Yuan Fang, Wang Yiming, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Dongwei, vice minister of finance

Mr. Wang Jianfan, director general of the Budget Department of the Ministry of Finance (MOF)

Mr. Li Xianzhong, director general of the Department of Treasury of the MOF

Mr. Hou Junming, director general of the Department of Asset Management of the MOF

Chairperson:

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

Date:

Feb. 1, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Wang Dongwei, vice minister of finance, to brief you on fiscal revenue and expenditure in 2023, and to take your questions. Also present today are Mr. Wang Jianfan, director general of the Budget Department of the Ministry of Finance (MOF); Mr. Li Xianzhong, director general of the Department of Treasury of the MOF; and Mr. Hou Junming, director general of the Department of Asset Management of the MOF.

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

Wang Dongwei:

Ladies and gentlemen, good morning. I'd like to express my gratitude for your long-term interest and support in the fiscal work. Today, I'm very glad to be here to brief you on fiscal revenue and expenditure in 2023.

The year 2023 marked the first year of the full implementation of the guiding principles of the 20th National Congress of the Communist Party of China (CPC), and a year of economic recovery and growth following three years of COVID-19 pandemic prevention and control. The MOF has adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and thoroughly implemented the guiding principles of the 20th CPC National Congress, the second plenary session of the 20th CPC Central Committee, and the Central Economic Work Conference. In line with the decisions and deployments of the CPC Central Committee and the State Council, the MOF has enhanced macro fiscal regulation, steadily executed positive fiscal policy, and promoted the recovery and high-quality development of the economy. In 2023, the fiscal and budgetary work had five features.

First, fiscal revenue maintained a rebound trend. Thanks to such factors as economic recovery and large-scale value-added tax (VAT) credit refunds lowering the base, fiscal revenue rebounded in 2023. Revenue in the national general public budget exceeded 21 trillion yuan, up by 6.4%. Specifically, the fiscal revenue in eastern, central, western and northeastern China increased by 6.7%, 6.9%, 10.7%, and 12%, respectively. The fiscal revenue of all 31 provinces in China registered positive growth. 

Second, fiscal expenditures continued to grow. At the beginning of 2023, the deficit-to-GDP ratio was projected to be 3%. To support post-disaster recovery and reconstruction and improve the disaster prevention, mitigation and relief capacities, a further 1 trillion yuan of government bonds were issued in the fourth quarter, all of which were allocated to local governments through transfer payments. Expenditures in the national general public budget reached 27.46 trillion yuan in 2023, up by 5.4%. Key areas were guaranteed effectively, with expenditures on social security and employment increasing by 8.9%, education by 4.5%, technology by 7.9%, agriculture, forestry and water by 6.5%, and urban and rural community development by 5.7%. 

Third, tax and fee reduction policies continued to be improved and optimized. At the beginning of 2023, some tax and fee policies were extended and optimized. In the second half of last year, a number of expiring tax and fee policies were extended and refined based on changes to the economic situation, further reducing the tax and fee burdens on business entities and providing targeted support to the high-quality development of the real economy, including the manufacturing industry. In 2023, newly implemented tax and fee reductions, tax refunds and postponements for fee payments nationwide exceeded 2.2 trillion yuan. 

Fourth, special-purpose bonds policy exerted higher effectiveness. In 2023, 3.8 trillion yuan of local government special-purpose bonds were allocated, prioritizing support for mature and ongoing projects. The focus remained on key areas, avoiding a scattered approach and expanding the investment scope of special-purpose bonds into 11 sectors. The range of utilization of special-purpose bonds as project capital was also broadened to cover 15 aspects. At the same time, efforts were intensified in the issuance and utilization of special-purpose bonds, effectively driving the construction of key projects with both immediate and long-term benefits in areas such as transportation, water resources and energy.

Fifth, the bottom line for risk prevention was further consolidated. For one thing, efforts were made to formulate a package of plans to address local government debts. Solid progress was made in defusing hidden debt risks of local governments as well as addressing existing risks and curbing new ones. For another, more transfer payments were made to local governments, with such payments in 2023 reaching 10.29 trillion yuan. The policy for rewards and subsidies to ensure basic funding for county-level governments was improved, channeling more funds toward regions with relatively weak financial resources and greater burden on ensuring basic living, salary payments and normal government functioning. Simultaneously, we guided provincial-level governments to channel more financial resources toward lower levels of government, with the aim of ensuring basic living, salary payments and normal government functioning at the primary level.

Since the beginning of this year, the basic trend of a solid rebound, improvements, and long-term growth in economic performance has not changed. Macroeconomic policies have continued to take effect, and steady progress has been made in pursuing high-quality development, laying a solid foundation for revenue growth. Fiscal revenue will continue to rebound. In terms of government expenditure, we will maintain its necessary intensity and a certain scale of transfer payments to local governments. The specific budget for revenue and expenditure in 2024 will be refined and perfected in accordance with the decisions and deployment of the CPC Central Committee and the State Council, and we will submit it to the National People's Congress for deliberation and ratification as per procedure.

Next, the MOF will continue to adhere to the principles of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will coordinate the strategy of expanding domestic demand and deepening supply-side structural reform, new urbanization and all-round rural revitalization, and high-quality development and high-level safety. We will intensify fiscal macro-regulation and effectively implement a proactive fiscal policy, consolidating and building on the momentum of recovery in economic performance.

That's all for my introduction on fiscal revenue and expenditure in 2023. My colleagues and I are ready to take questions. Thank you!

Chen Wenjun:

Thank you, Mr. Wang. Now, the floor is open for questions. Please identify the news agency you represent before asking questions.

Reuters:

According to the Central Economic Work Conference, China will implement its 2024 fiscal policy by appropriately strengthening it to improve quality and effectiveness. I would like to ask, how does the MOF assess the trend of fiscal revenue and expenditure this year? How can fiscal policy effectively support the economic recovery? Thanks.

Wang Dongwei:

Thank you for your questions. As you mentioned, the Central Economic Work Conference set a clear goal for strengthening counter-cyclical and cross-cyclical adjustment of macro policies and implementing a proactive fiscal policy by appropriately strengthening it to improve its effectiveness.

Appropriately strengthening the proactive fiscal policy involves four aspects. First, China will maintain an appropriate level of fiscal spending, sending a positive signal. Second, China will rationally arrange the scale of government investment, spurring more investments and amplifying their effects. Third, China will improve transfer payments to further equalize access to basic public services, ensuring basic living needs, salary payments, and normal government expenditures at the primary level. Fourth, China will optimize and adjust tax policies to make them more precise, targeted and effective.

Improving the effectiveness of the proactive fiscal policy focuses on six aspects: tightening the government's belt, improving the composition of government spending, strengthening performance-based management, tightening financial discipline, boosting fiscal sustainability, and strengthening policy coordination. We will improve fiscal management in a sound, standardized, and law-based manner. We will ensure that every cent is used where it is needed most, and that the same amount of spending creates the greatest benefit.

We will work with a focus on the following seven priorities:

First, we will expedite our efforts to modernize the industrial system. On the one hand, we will make full use of policy instruments such as government subsidy policies, loan interest subsidy policies, and preferential tax treatment to tackle vexing issues in terms of basic products, core technologies, and key software, especially in key industrial chains such as the new generation of information technology and integrated circuits. On the other hand, we will fully leverage the guiding role of government investment, such as funds to support the transformation and upgrading of the manufacturing sector and industrial investment in advanced manufacturing. We will find market-based solutions to encourage non-government capital to invest in key manufacturing areas and open up new industrial sectors.

Second, we will vigorously boost domestic demand in two ways: investment and consumption. In terms of investment, we will expand investments that generate good returns. We will fully harness related government bonds, continue to issue a certain amount of local government special-purpose bonds, and rationally expand investment within the central government budget, giving full play to government investment's guiding and leveraging role. In terms of consumption, we will inject new impetus into consumption. In 2024, we will follow the trend of upgrading consumption by citizens, forge new drivers of growth in culture, tourism, education, and elderly care, enhance adjustment measures such as social security and transfer payments, increase incomes of urban and rural residents, and encourage consumer spending and improve spending power.

Third, we will further implement our strategies for invigorating China through science and education. We will step up investment in education and ensure the implementation of the requirement that government budgetary spending on education remains no less than 4% of GDP. Additionally, we will guarantee that education spending allocated through the government's general budget and the average education spending allocated per student continue to increase, promoting the development of a high-quality education system. We will fully support the achievement of breakthroughs in core technologies in key fields, meet the funding needs of major national science and technology projects, and make efforts to achieve greater self-reliance and strength in science and technology.

Fourth, we will support efforts to ensure and improve people's well-being. We will implement the employment priority policy, coordinate and make good use of policies on tax and fee reductions, social insurance premiums and loan interest subsidies, and support startups and employment through multiple channels. We will improve the multi-tiered and categorized social assistance system. At the same time, we will enhance budget management and channel more financial resources toward lower levels of government to maintain basic living needs, salary payments and normal government functioning, ensuring the bottom line at the primary level.

Fifth, we will step up efforts to promote comprehensive rural revitalization. We will support the implementation of a new drive to increase annual grain production capacity by 50 million metric tons, enhance investment in high-standard cropland development, ensure the incomes of grain growers, and improve the reward policy for major grain-producing counties. Another important step is to expand the scope of the full cost insurance policy and planting income insurance policy for the three major staple food crops to achieve full nationwide coverage. We will improve the ability to ensure food security, as part of our major work in implementing the national food security strategy of food crop production based on farmland management and technological application. At the same time, we must make good use of bridging funds from the central government to strengthen industrial and employment assistance, and support the consolidation and expansion of poverty alleviation achievements. What's more, we will learn and utilize the experience of the Green Rural Revival Program  to advance rural development according to local conditions.

Sixth, we will promote urban-rural development and regional development . We will vigorously promote new urbanization and support local governments in granting permanent urban residency to eligible people who move from rural to urban areas. We will further improve fiscal and tax policies that support major national strategies for regional development, and increase support for regions with unique features such as old revolutionary base areas, areas with large ethnic minority populations, and border areas.

Seventh, we will support efforts to strengthen ecological conservation. We will maintain investment, improve fiscal and tax policies, cultivate the endogenous driving force for green and low-carbon transformation and development, and promote the construction of Beautiful China pilot zones.

That's all from me. Thank you.

ThePaper.cn:

In 2023, China added 2.22899 trillion yuan in new tax and fee reductions and tax rebates and deferrals. Could you introduce the specific situation? In addition, which market entities have been the main beneficiaries? And what new considerations are there in 2024 in this regard? Thank you.

Wang Jianfan:

Thank you for your questions. In 2023, in accordance with the requirements of the proactive fiscal policy to be more efficient, more targeted and more sustainable, we coordinated the needs of corporate relief and fiscal affordability, and gave further priority to make our work more forward-looking, consistent and targeted. We extended and further refined preferential tax and fee policies. At the same time, we focused on certain areas and key links, accurately implemented a batch of new preferential tax and fee policies, truly supported the development of enterprises facing difficulties, and promoted the sustained recovery of the national economy, ensuring that the economy maintained growth momentum.

On the one hand, more than 70 expired preferential tax and fee policies were extended and refined in batches. Early last year, we had clearly extended and refined some of the preferential tax and fee policies before they expired. In the second half of the year, we continued to extend and refine a group of expired preferential tax and fee policies based on changes in the economic situation. Most of the policies will be extended directly until the end of 2027. With a focus on improving supply quality and expanding effective demand, these policies aim to provide major support for micro and small enterprises and self-employed individuals, help the real economy to get stronger and do better, build our self-reliance and strength in science and technology, increase incomes and expand consumption to meet people's basic living needs, stabilize foreign trade and investment, and support the healthy development of capital markets.

On the other hand, we focused on certain areas and key links to accurately implement new preferential tax and fee policies, mainly through the following actions. We implemented the policy of value-added tax (VAT) credit refunds in the advanced manufacturing sector to support high-quality development of manufacturing. We increased the super deduction rate of research and development expenses of integrated circuit and industrial mother-machine enterprises to enhance scientific and technological innovation. We raised the standard for special additional personal income tax deductions for care of infants and young children under the age of 3, children's education, and care of the elderly, to further reduce the burden of childbearing, childrearing and elderly care. Preferential tax treatment was given to construction and transactions of government-subsidized housing to ensure and improve people's well-being.

According to statistics from related departments, among all the newly implemented tax and fee reductions and tax rebates and deferrals nationwide in 2023, new tax and fee reductions totaled approximately 1.57 trillion yuan, and VAT credit refunds were around 650 billion yuan. In terms of industries, the manufacturing and related wholesale and retail industries added nearly 950 billion yuan in tax and fee reductions and tax rebates and deferrals, accounting for 42.6% of the total, the highest proportion of tax preferential treatment among all industries. In terms of the scale of enterprises, the new tax and fee reductions and tax rebates and deferrals for micro, small and medium-sized enterprises were about 1.43 trillion yuan, accounting for 64% of the total, and they were the most obvious beneficiaries.

In 2024, we will fully implement the deployments of the Central Economic Work Conference, carry out structural tax and fee reduction policies, maintain the continuity and stability of policies, enhance their accuracy and pertinence, and focus on supporting technological innovation and manufacturing development. We will strengthen policy supply, and promote the economy to achieve effective qualitative improvements and reasonable quantitative growth. Thank you.

China Financial and Economic News:

Data assets have become important strategic resources for promoting the development of the digital economy. We have also noticed that the MOF recently issued the Guidelines on Strengthening Data Asset Management. What are the considerations of the MOF regarding strengthening the management of data assets and promoting the development of the digital economy? Thank you.

Hou Junming:

Thank you for your concern for and attention to data asset management. As you mentioned, data assets have become important strategic resources for promoting the development of the digital economy. Therefore, it is crucial to emphasize and strengthen data asset management. In recent years, China has emerged as one of the fastest-growing countries in the global digital economy. By the end of 2022, China's digital economy had reached 50.2 trillion yuan, accounting for 41.5% of the country's GDP. General Secretary Xi Jinping has pointed out that the development of the digital economy holds great significance and represents a strategic choice to seize new opportunities in the new round of scientific and technological revolution and industrial transformation. The CPC Central Committee has made a series of decisions and deployments regarding the development of the digital economy, clearly putting forward the requirements for data asset compliance, standardization, and appreciation.

Compared with traditional assets, data, as a new type of asset, is replicable and non-excludable. These characteristics impose higher requirements on data asset management. The MOF has actively implemented the decisions and deployments of the CPC Central Committee and successively formulated and issued the Interim Provisions on Accounting Treatment of Enterprise Data Resources and the Guidelines on Data Asset Evaluation. Recently, the MOF also issued the Guidelines on Strengthening Data Asset Management, making clear provisions on the development and utilization, value evaluation, income distribution, and information disclosure of data assets. All these efforts aim to promote compliant and efficient circulation and use of data assets, unlock the full value of data assets, and enhance total factor productivity.

Next, we will focus on the following three areas:

First, we will strengthen the full-process management of data assets. We will standardize data asset registration, storage, use, disclosure, and disposal. By establishing a clear and complete management framework for data assets, we will promote data resources as assets in an orderly manner and better leverage their economic and social value.

Second, we will advance the development and utilization of data assets. We will encourage the effective supply of public data assets in accordance with laws and regulations, increase the release or disclosure of data asset information, and improve the transparency of data asset flow. We will support diversified development and utilization models in data-rich industries such as finance, transportation, healthcare, and energy. Furthermore, we will establish a reasonable income distribution mechanism to fully incentivize all participants.

Third, we will ensure the compliant and safe utilization of data assets. We will strengthen the monitoring and supervision of data assets, harness advanced technologies effectively, and rigorously mitigate management risks such as data leakage, damage, and loss. At the same time, reasonable procedures will be set up in data asset evaluation, transactions, and related processes to prevent the inflation of data asset value. 

Through these efforts, we aim to standardize and fortify data asset management, further stimulate the development of the digital economy, and facilitate equitable access to the dividends of the digital economy for all. Thank you.

Bloomberg:

Fiscal spending actually contracted in the first several months of last year. How will China pace fiscal spending and central and local government bond sales throughout this year? Secondly, what is the front-loaded quota for new local special bonds and general bonds this year, and how does it compare with last year? Thank you.

Li Xianzhong:

Thank you for your questions. Your questions actually involve two aspects: fiscal spending arrangements and government bond issuance arrangements.

Regarding fiscal spending arrangements, you just mentioned that fiscal spending contracted in the first few months of last year. In fact, during January-May 2023, the national general public budget expenditure reached 10.48 trillion yuan, an increase of 580 billion yuan compared to the same period in 2022, representing a growth of 5.8%. It should be noted that fiscal spending was substantial and progressed rapidly in the initial five months of last year. However, in June and July last year, the national general public budget expenditure slightly declined, mainly due to a one-time large expenditure during the same period in 2022. That raised the base and led to a temporary decrease in the growth rate in June and July 2023. It was in line with expectations, and there was no contraction in fiscal spending. Looking at the whole of last year, as Mr. Wang Dongwei just mentioned, the national general public budget expenditure exceeded 27 trillion yuan for the year, up 5.4% year on year. The expenditure reached a new high, demonstrating the effectiveness of proactive fiscal policies and providing strong support for economic recovery.

Regarding this year's fiscal expenditure plans, as vice minister Wang Dongwei mentioned, we are currently detailing and refining these plans in line with the directives of the CPC Central Committee and the State Council. These plans will be announced to the public following the approval of the NPC according to standard procedures. What I can confirm is that, in 2024, we will maintain the necessary intensity of fiscal spending.

These are some of our arrangements for government bond issuance. For national bonds, we plan to front-load the issuance within the NPC-approved ceiling for the outstanding balance to support necessary spending intensity. For local government bonds, under the requirements of the CPC Central Committee and the State Council, and as authorized by the NPC Standing Committee, the MOF has established and improved a management system since 2019 to allocate in advance new local government debt limits. This guides local governments to improve budget management and reasonably schedule the issuance of new local government bonds, effectively reducing financing costs and accelerating fund allocation. According to our statistics, from the establishment of this system in 2019 to 2023, the MOF allocated new local government debt limits of 1.39 trillion, 2.85 trillion, 2.36 trillion, 1.79 trillion, and 2.62 trillion yuan in respective years, totaling over 11 trillion yuan. In December 2023, after completing legal approval procedures, the MOF allocated part of the new local government debt limits for 2024 to support major project construction so that work can begin on them the moment government funds are received , leveraging local government bonds to drive economic growth.

This is all for my report. Thank you.

CCTV:

As we know, scientific and technological innovation is the logical starting point and the key driver for high-quality development. My question is, what have national finances done to improve the allocation of innovation resources and build China's self-reliance and strength in science and technology? Also, could you share any new measures planned for 2024? Thank you.

Wang Dongwei:

Thanks for your question. I'll take this one. Implementing the innovation-driven development strategy and building high-level self-reliance and strength in science and technology requires the improvement of the new system for mobilizing resources nationwide to better allocate innovation resources, boost China's strength in strategic science and technology, and promote deeper integration of the innovation, industrial, capital, and talent chains . In recent years, national finances have prioritized science and technology expenditure. From 2018 to 2023, fiscal spending on science and technology increased by an annual average rate of 6.4% from 832.7 billion yuan to 1.06 trillion yuan. At the same time, we've been utilizing various policy tools such as tax incentives, government procurement, asset management, and fiscal financing to support scientific and technological innovation. In 2023, through a series of central government policies and strong fiscal support, we saw rapid progress in establishing a national laboratory system and constructing large-scale scientific facilities. We also witnessed the successful launch of the Shenzhou-17 spaceship, the debut commercial flight of the C919 large passenger airplane, and the constant emergence of innovative outcomes in fields like artificial intelligence, quantum technology, and biomanufacturing.

In 2024, finance departments will take more robust and effective measures to drive the construction of a modern industrial system led by scientific and technological innovation and develop new productive forces. I would like to elaborate on this from two perspectives.

First, in terms of policy orientation, we should focus on four "key areas." First is emphasizing the primary role of enterprises in innovation. We'll implement structural tax cuts and fee reductions with a focus on supporting technological innovation and the development of the manufacturing sector. We aim to leverage fiscal funds to catalyze significant investment in technology innovation from financial resources and private capital, encouraging the flow of innovation resources towards enterprises. Second, we will harness the power of demand to drive innovation. By capitalizing on our vast domestic market, we aim to significantly encourage the application and iteration of innovative outcomes. This includes implementing and refining policies of subsidy for insurance for the first use of major technological equipment and new materials, addressing initial application bottlenecks in a market-oriented manner. Third, we will be committed to enhancing the resilience and security of our industrial and supply chains. This involves integrating and optimizing related fiscal special projects, focusing on key industrial chains, and supporting technological breakthroughs in critical weak areas. We will implement fiscal policies to support innovative small and medium enterprises (SMEs) that use special and sophisticated technologies to produce novel and unique products , encouraging more companies to specialize in niche markets and pursue excellence and innovation. Fourth, we will focus on boosting the enthusiasm and creativity of scientific researchers. Two important pilot reforms in this area include supporting the advancement of salary system reforms in universities and research institutes and accelerating the reform of the ownership or long-term use rights of on-the-job inventions by scientific researchers. The goal is to fully stimulate the initiative and creativity of these researchers.

Second, in terms of the use of funds, we should advance reform of the mechanisms for the allocation and use of fiscal science and technology funds. In this regard, we need to achieve the "four strengthens." First, we need to strengthen our foundations. We will increase investment in basic research, applied basic research and cutting-edge research, and improve our capabilities in original innovation. Second, we need to strengthen our ability in tackling key problems. We will double our efforts to achieve breakthroughs in core technologies in key fields, thus gaining the high ground in the scientific and technological endeavor. Third, we need to strengthen our capabilities. We will focus on national laboratories, national research institutions, high-level research universities and leading scientific and technological enterprises to support the strengthening of national strategic scientific and technological capabilities. Fourth, we need to strengthen efficiency. Projects, funds, talents as well as base innovation resources will be coordinated so as to comprehensively strengthen performance management, and strive to improve the effectiveness of government research funds.

That's all from me. Thank you.

Xinhua:

As we all know, agriculture, rural areas and rural residents serve as the ballast of China's economic development, with food security as its top priority. Last year, China had a bumper harvest in grain production. What role has the MOF played in supporting grain production and ensuring food security? And what are the plans going forward? Thank you.

Li Xianzhong:

Thank you for your questions. Food security is a matter of national importance. In 2023, the central government consistently made ensuring national food security a top priority of its financial policies to support agricultural development, providing strong and effective support for China's grain output hitting a record high. Specifically, the central government mainly focused on two aspects:

On the one hand, we optimized policy support by focusing on the foundation of food security. First, we improved and adjusted the central government's transfer payment policies related to agriculture. For example, the grain and oil production guarantee fund was set up, which was mainly used to support the construction of centralized seedling cultivation facilities, including strip-intercropping of soybean and corn. Second, we gave full play to the role of fiscal funds as the main channel, fully implemented the strategy of conserving and using arable land as well as promoting grain output through high technology, allocated 92 billion yuan to support 80 million mu of newly-built and improved high-standard farmland, actively advanced the protection and utilization of black earth, and initiated pilot projects for comprehensive utilization of saline-alkali land. We supported the campaign to revitalize the seed industry and vigorously enhanced the mechanization level in agriculture. Third, we continued to improve the policy systems for prices, subsidies and insurance. We raised the minimum purchase price for wheat, steadily implemented policies relating to farmland fertility protection subsidies and rice subsidies, increased support for major grain-producing counties, and expanded the coverage of full cost insurance and planting income insurance for the three major grain crops to all major grain producing counties across the country. Fourth, we optimized diverse input mechanisms, gave full play to the leveraging role of finance, and actively guided financial and private capital to participate in investment. We launched a pilot program to discount interest on loans for high-standard farmland.

On the other hand, we strengthened financial support focusing on the critical periods of grain production. First, at the key time of spring ploughing, we issued a 10-billion-yuan fund for granting one-off subsidies to crop-growing farmers to stabilize their expectations and reduce the cost of grain planting. Second, to prevent diseases and pests, dry and hot winds, and the collapse of summer wheat, we allocated 1.6 billion yuan to support the "three prevention measures" by crop-dusting in major wheat producing areas. Third, in response to the impact of protracted rainfall during the reap period in Henan province and typhoons and floods in some parts of northern and northeastern China, we accelerated the allocation of disaster relief funds to support wheat harvest and drying while resuming agricultural production in disaster areas, thus effectively reducing food losses due to disasters. Fourth, at the critical stage of fall harvest, 2.4 billion yuan was allocated to support "spraying to promote growth" measures for corn and soybeans in key northern areas to help increase the fall harvest.

In 2024, the central government will increase the central and provincial investment subsidy levels for the construction of high standard farmland, and continue to support campaigns including those for revitalizing the seed industry and complementing the weak links in agricultural machinery equipment. We will continue our efforts to upgrade agricultural socialized services, explore the establishment of an interest-compensation mechanism between grain production and marketing areas, optimize the diversified investment mechanism, and at the same time, strengthen the supervision of capital use and policy implementation to better safeguard national food security.

That's all from me. Thank you.

Thecover.cn:

Issues regarding the sustainability of the pension system and the timely and full payment of pensions are of concern to the public, given China's rapidly aging population. How would you respond to the public's concern? Thank you.

Hou Junming:

Thank you for your question. The issue is of great concern to everyone. It is important to ensure people's access to elderly care and improve their well-being as China's population ages rapidly. Pension payments potentially concern the interests and well-being of every Chinese citizen and their families. In recent years, finance departments at all levels have fulfilled their responsibilities to ensure pensions are paid on time and in full. Efforts have been made in the following three areas:

The first is to increase government subsidies. In 2023, the central government allocated about 1 trillion yuan in fiscal subsidies for basic pension insurance, which was weighted towards the central and western regions and old industrial bases. Local governments have proactively fulfilled their responsibilities in this regard to ensure that basic pensions are paid on time and in full.

The second aspect involves the nationwide pooling system for pension funds. Initiated in 2022, as planned by the central authorities, this system enables pension funds to be properly transferred from regions with a surplus to those facing deficits nationwide. In 2023, a total of 271.6 billion yuan of pension funds were transferred nationwide, effectively addressing the problem of pension fund surpluses in some regions and payment difficulties in others.

The third aspect concerns the management of pension funds. We have worked with relevant departments to regulate fund collection and distribution, ensuring that the policies for financing and receiving pension benefits are fairer and more reasonable. This aims to make the old-age pension system more equitable and sustainable.

Remarkable improvements have been witnessed in terms of pension fund collection and distribution thanks to the aforementioned efforts in recent years. By the end of 2023, the balance of China's pension insurance funds for urban workers stood at nearly 6 trillion yuan, ensuring timely and full pension payments.

Moreover, according to decisions and plans made by the CPC Central Committee and the State Council, we have allocated special funds to support the program to improve home- and community-based basic care services for senior citizens, as well as the program to provide concentrated care services for elderly people who cannot perform essential self-care and who are economically disadvantaged. We have introduced a series of preferential tax and fee policies to support the development of the elderly care service sector and the "silver economy" (economic activities that offer products and services to seniors). By doing so, elderly people will not only have the financial support they rely on to support them through old age but also access to affordable and high-quality care services.

In 2024, our efforts will focus on two priorities. First, the central government will allocate more financial subsidies and ensure the implementation of the nationwide pooling system for pension funds. We will intensify efforts to improve relevant systems and mechanisms to protect the funds people rely on to support them through old age. Next, we will step up support for elderly care services and improve the networks for institution, community and at-home elderly care services. We will promote the coordinated development of elderly care programs and services and improve the quality and efficiency of elderly care services. Thank you.

Chen Wenjun:

The last two questions, please.

CNR Business Radio:

Performance-based budgetary management plays a crucial role in improving the efficiency of fiscal funds. What new progress and achievements have financial authorities made in this regard? What efforts will be made to further improve the efficiency of performance-based budgetary management in 2024?

Wang Jianfan:

Performance-based budgetary management is a crucial component in improving the modern budget system. In September 2018, the CPC Central Committee and the State Council issued a guideline to establish a performance-based budgetary management system, making specific arrangements for performance-based budgetary management. Following the guidelines, the MOF established and improved the performance -based budgetary management system, enhancing its quality and efficiency. As a result, a whole-process performance-based budgetary management mechanism has taken shape, guiding all regions and departments to develop a performance-awareness culture, and improving the efficiency of fiscal policies and the quality of public services.

In 2023, we stepped up our efforts to shore up weaknesses in a targeted and problem-oriented manner, and to improve the quality and efficiency of our work in key links. We have ramped up efforts in the following six aspects:

The first aspect involves efforts in conducting trials on performance evaluation prior to the implementation of programs and policies. By combining budget reviews with project approvals, we conducted ex-ante performance evaluations for major projects that are newly added or extended by central departments and ministries, as well as newly established transfer payments, to make the budget-making process more science-based from the very beginning.

The second aspect is to strengthen the management of performance targets. We achieved full coverage in managing performance targets for project expenditures by central departments and ministries, transfer payments under shared fiscal powers, and special transfer payments. Moreover, we provided guidance to ensure that central departments, ministries, and local financial departments set their performance targets in a scientific manner. We also made greater efforts to review performance targets for key projects, improving the quality of the performance targets set.

Third, we strengthened oversight of budget performance. During the budget execution, we relied on the integrated central budget management system to carry out oversight of budget performance, analyzed key projects' implementation progress and attainment of performance targets, as well as fixed performance deviations and fund management loopholes in a timely manner.

Fourth, we improved the quality and effectiveness of performance assessment. We have organized a comprehensive performance self-assessment of central authorities' project spending, integrated transfer payments under shared fiscal powers , and special transfer payments. In accordance with the principles of priority and quality, we assessed the performance of 52 projects in key areas such as education, sci-tech, and agriculture and rural areas.

Fifth, we stepped up the application of performance assessment results. Linking the assessment results with budget arrangements, we lowered to different extents the budget for central projects with lower scores in the key fiscal performance assessment in 2023. For regions with poorer performance, we reduced transfer payment allocation modestly.

Six, we worked to report and disclose performance information. The performance goal and assessment results of key projects were reported to the National People's Congress. Together with the public disclosure of the budget and final accounts of central authorities, we organized central authorities to disclose the performance goal of 811 projects and assessments results of 745 projects, increasing from the previous year. 

Next, the MOF will continue to improve the budget performance management system in accordance with the overall requirements for a sound and modern budget system and give better play to the role of budget performance management in optimizing the allocation of resources and improving the effective use of funds. Thank you.

Phoenix Satellite Television:

The central economic work conference has made arrangements for the building of a modern industrial system. What has the MOF done to support the building of such a system? What are the policy considerations for 2024? Thank you.

Wang Dongwei:

Thank you for your questions. Your questions are very important and have been closely followed by business entities. I will answer your questions.

General Secretary Xi Jinping stressed that a modern industrial system is the material and technological foundation of a modern country and the focus of economic development must be placed on the real economy. In 2023, the MOF has taken a host of measures in a targeted way to accelerate the building of a modern industrial system underpinned by the real economy. We have taken the following measures:

First, we have accelerated the development of strategic emerging industries. We have introduced the policy of granting extra value-added tax credits for advanced manufacturing enterprises, improved the special funds for the manufacturing industry, government investment funds, insurance compensation for the application of newly developed major technical equipment, and other supporting policies. We have accelerated the advancement of key technologies and industries to make up for shortcomings and enhanced the resilience and security of industrial and supply chains. This has given rise to new industries, business models, and new momentum. Let me give you an example. For the implementation of the insurance compensation policy for the application of newly developed major technical equipment , the central government subsidized 80% of the premiums of insured companies and supported the application of more than 30,000 units or sets of major technical equipment. 

Second, we have quickly promoted the transformation and upgrade of traditional industries. By utilizing the special central fund for boosting the manufacturing sector, we rendered stronger support to new-generation information technologies and industrial internet platforms to provide technological support for the digital transformation of traditional industries. We have allocated 3 billion yuan to pilot the digital transformation of SMEs in various cities. A total of 30 pilot cities have been identified in the first batch on the basis of merit to guide local governments, strengthen policy coordination, and promote the in-depth integration of the digital economy and the real economy.

Third, we have vigorously promoted the development of enterprises that use special and sophisticated technologies to produce novel and unique products. We have continued to provide financial awards and subsidies for such SMEs and guided them to be more innovative and specialized. By the end of 2023, we had fostered more than 12,000 national-level "small giant" enterprises that use special and sophisticated technologies to produce novel and unique products, and over 100,000 provincial ones in China. The national fund for the development of SMEs has been fully tapped into to mobilize non-government capital to support innovation and development of seed and startup-stage SMEs with growth potential. By the end of 2023, the SME development fund had invested in 36 sub-funds, with an accumulative investment of 47.76 billion yuan, of which more than 70% was invested in seed and startup-stage, growth SMEs. 

In 2024, the MOF will focus on developing new types of industrialization and enhancing the core competitiveness of industries. We will give full play to the leading role of fiscal funds and the credit enhancement role of government investment funds to create a lever effect, supporting the rapid development and expansion of strategic emerging industries. Efforts will also be made to promote the transformation and upgrade of traditional industries at a faster pace, promote the cultivation and exploration of new tracks of industries in an accelerated way, and effectively serve the building of a modern industrial system. 

That's all for my answers to the questions. Thank you.

Chen Wenjun:

Thanks to all the speakers and journalists here. Today's briefing is now concluded. See you all.

Translated and edited by Xu Xiaoxuan, Wang Qian, Wang Yanfang, Liu Sitong, Yan Bin, Wang Wei, Yan Xiaoqing, Guo Yiming, Li Xiao, Zhang Tingting, Li Huiru, Gong Yingchun, Huang Shan, Cui Can, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration

Mr. Ren Duanping, director general of the Business Registration Bureau of the SAMR

Mr. Xu Lefu, director general of the Antitrust Enforcement Department II of the SAMR

Mr. Liu Sanjiang, director general of the Quality Development Bureau of the SAMR

Chairperson:

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

Date:

Jan. 31, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration, who will brief you on stimulating the vitality of business entities to promote high-quality economic development. We are also joined by Mr. Ren Duanping, director general of the Business Registration Bureau of the SAMR; Mr. Xu Lefu, director general of the Antitrust Enforcement Department II of the SAMR; and Mr. Liu Sanjiang, director general of the Quality Development Bureau of the SAMR.

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

Pu Chun:

Good morning. Thank you for your long-term interest in and support for the efforts concerning market regulation. It is my pleasure to speak with you on the topic of stimulating the vitality of business entities to promote high-quality economic development, and to take your questions. I will now start with a brief introduction.

The Central Economic Work Conference has underscored the need to fully stimulate the endogenous power and innovation vitality of various business entities. Through our market regulation practices over the years, we have recognized the role of business entities as major participants in economic activities, key suppliers of job opportunities and main drivers of technological advancement. Effectively stimulating the vitality of business entities and fully unleashing their endogenous power is of great significance to consolidating and strengthening the momentum of economic recovery and fostering high-quality economic development. Responsible for market regulation and law enforcement, the market regulator is the guardian of business entities' lawful rights and interests and the driver of economic growth. It is our responsibility to provide sound services and help business entities address difficulties and problems occurring during production and business operation. We will earnestly carry out the guiding principles of the Central Economic Work Conference, innovate regulatory methods and improve regulatory effectiveness, with a focus on the following aspects:

First, we will carry out further reform work and advance innovation. Reform and innovation are the sources of stimulating vitality. We will continue improving the rules on market access as well as the exit mechanism for business entities, in a bid to provide them with greater convenience. By comprehensively adopting credit rating-based regulatory measures and those assisted by smart technologies, we will work to improve the effectiveness of ongoing and ex post regulatory efforts and create a sound regulatory environment featuring less disruption and timely response. In the meantime, we will optimize the evaluation methods for business entities, and attach greater importance to the comprehensive and multi-dimensional evaluation system involving business size and structure, the levels of staying active, law compliance, innovation and competitiveness, economic returns and corporate social responsibility. We will provide guidance to localities and government departments on paying more attention to the development quality of business entities, in a bid to effectively achieve higher-quality growth based on a reasonable increase in their total number.

Second, we will work to promote fair competition. An inclusive and fair market environment is a crucial prerequisite for stimulating market vitality. We will speed up the development of a unified national market, taking stronger action against administrative monopolies and local protectionism. We will also work to remove policy measures that impede the functioning of a unified market and fair competition, and safeguard business entities' right to independent management. Moreover, we will investigate and deal with monopolistic cases as well as those concerning unfair competition in accordance with the law. In addition to leveraging the strength of large enterprises' size and helping to improve core competitiveness, we will also safeguard the development and innovation vitality of micro, small and medium-sized enterprises. We will strive to develop and carry forward the culture of fair competition, and work to create a social environment that acknowledges and practices fair competition.

Third, we will work to ensure that the law is enforced in a strict, procedure-based, impartial and non-abusive way. The rule of law secures the best business environment, and provides fundamental support for stimulating market vitality and ensuring orderly operation. We will perform our duties in strict accordance with the law, bring all administrative activities into line with the rule of law, and create a more stable, transparent, procedure-based and predictable environment for business entities to develop. We will also expedite efforts to improve the system of baselines for administrative discretionary powers regarding market regulation, and establish and implement the case guidance system, so as to avoid excessive punishments for minor misconducts and differentiated punishments for similar cases. We will make better use of measures such as admonition and administrative guidance, patiently communicate and explain our regulatory measures, and proactively seek understanding and support, in a bid to demonstrate a human touch in law enforcement.

Fourth, we will work to improve assistance measures. Well-conceived and targeted favorable policies for enterprises are an effective method for stimulating vitality. We will further improve our regular communication mechanism with business entities, understand their demands and suggestions in a timely manner, and help resolve prominent issues facing them. Based on our duties in market regulation, we will formulate more practical, heart-warming and higher-quality policy measures in terms of developing incentives for good-faith actors, providing assistance in quality-related issues and technological aspects, and supporting self-employed individuals. We will redouble our efforts to end unjustified charges levied on businesses and help reduce their burden.

Fifth, we will make efforts to regulate market order. Taking action against violators is a strong protection of law-abiding behavior and a means to stimulate vitality. We will strictly deal with infringements of intellectual property, the production and sale of counterfeit goods, and other illegal activities that disrupt market order in accordance with law. Enhanced protection of trade secrets will be implemented to firmly safeguard the legitimate rights and interests of business entities. In the meantime, initiatives will be undertaken to expedite the improvement of compliance management systems in key areas, fostering an enhanced awareness of compliance and integrity among business entities, with the aim of achieving more regulated, sustainable and dynamic development.

That is all for my introduction. Thank you.

Xing Huina:

Thank you Mr. Pu for your introduction. The floor is now open for questions. Please identify your news outlet before asking your question.

ThePaper.cn:

As the Spring Festival approaches, we have noticed that the SAMR has recently intensified efforts to stabilize prices and ensure the quality of essential consumer goods during the holiday season. Could you please provide more details about this initiative? Thank you.

Pu Chun:

I will answer this question. The New Year and the Spring Festival represent traditional peak seasons for consumption, and the prices and quality of essential consumer goods are major concerns for all people. In order to ensure the stability of prices and the quality of important consumer goods during the New Year and the Spring Festival, and to guarantee that people can enjoy a joyful and harmonious start to the new year, the SAMR has stepped up efforts to stabilize prices and ensure quality during this period. This includes establishing regulatory lists for four major categories: food, industrial products, life services and pharmaceuticals, focusing on key areas of holiday consumption.

First, we will closely follow the consumption hotspots of New Year and Spring Festival, and strengthen the monitoring of price fluctuations. We will focus on key areas of consumption related to people's everyday lives, including rice, vegetables, fruit and heating-related issues. We will concentrate on holiday-related consumption, including rice, flour, cooking oil, vegetables, meat, eggs, dairy products, New Year's Eve dinner reservations, cultural and entertainment activities, hotel bookings, transportation logistics, as well as the increased demand for medicine and energy due to cold weather. We will conduct thorough online and offline price monitoring and tracking analysis to make informed judgments.

Second, we will strengthen the enforcement of price regulation laws to stabilize market price levels. We will closely monitor early signs and trends of issues that emerge, proactively estimate potential risks that may affect market order, increase the frequency of market inspections, and effectively intensify regulatory efforts on the prices of key consumer goods.

Third, we will strictly control food quality and safety, guarding the red line of consumption safety. We will fully leverage the mechanism that targets differentiated responsibilities to ensure effective results, intensify efforts to see that all responsibilities are fulfilled, namely, the primary responsibility of the enterprise itself and the regulatory responsibility of the government in the locality where the enterprise is located, precisely prevent and control risks, decisively eliminate issues such as the sale of expired, spoiled and counterfeit or substandard food, and rigorously guard against regional and systemic food safety problems. Efforts will be intensified to identify potential quality and safety hazards, with a focus on industrial clusters, wholesale markets and rural markets. We will conduct continuous inspections of potential hazards in product quality and safety, strengthening quality supervision and spot checks, implementing a "ledger-style" management approach, and effectively eliminating quality and safety hazards.

Market regulation departments across various regions, fully considering local consumption characteristics, are making full use of a tiered regulatory toolbox. They comprehensively employ methods such as reminders, administrative guidance and administrative law enforcement. This includes the launch of a platform for price and fee regulation, monitoring and early warning services, organizing supermarket and department store price policy reminder briefings, conducting a series of actions, such as regulation on food safety, rectification of safety hazards in special equipment, and addressing quality and safety issues in gas appliances. These actions aim to guide business entities to operate in accordance with the law and regulations. As of Jan. 16, market regulation departments across the country had deployed inspection personnel on a total of 481,100 visits, inspecting 322,100 units. In terms of pricing, 252 cases had been filed, resulting in 80 penalized cases with a total amount of 533,600 yuan being penalized or returned. In terms of product quality, 1,108 cases had been filed, resulting in 279 penalized cases with a total penalty amount of over 2.62 million yuan. In terms of food safety, 2,681 cases had been filed, resulting in 2,197 penalized cases with a total penalty amount of around 10.74 million yuan. Thank you.

Cover News:

The Central Economic Work Conference has proposed proactively developing the digital economy. Currently, regular oversight of the platform economy is receiving significant attention. Regarding the anti-monopoly supervision for the concentration of business operators, what measures has the SAMR taken to conduct regular oversight? Thank you.

Xu Lefu:

Thank you for your question. The SAMR attaches great importance to the regular oversight of the platform economy, actively planning high-quality measures to support its development. Regarding the anti-monopoly supervision for the concentration of business operators, we are steadily advancing the routine regulatory approach of ensuring pre-compliance, conducting mid-process reviews and implementing post-accountability measures to promote high-quality development of the platform economy.

The term "pre-compliance" entails promoting adherence to regulations in advance with an emphasis on ensuring enterprises to shoulder due responsibilities. We have emphasized enhancing enterprises' compliance awareness and released a guideline on anti-monopoly compliance for the concentration of business operators. We have also established routine communication mechanisms with platform enterprises, taking proactive steps to assist businesses in their compliance operations. We have observed, in recent years, platform enterprises, particularly major platform enterprises have greatly enhanced their compliance awareness. They have commonly established internal anti-monopoly compliance systems and dedicated appropriate human resources to this endeavor. Currently, due to the substantial increase in anti-monopoly compliance awareness, there have been no newly added illicit practices associated with business operator concentration by platform enterprises since the new Anti-Monopoly Law came into effect on Aug. 1, 2022.

Efforts have focused on providing review services and improving review efficiency in the review process. We revised and released the Provisions on the Review of Concentration of Undertakings, and launched an antitrust review system for the concentration of operators, clarifying internal work requirements for simple cases. Specifically, such cases must be addressed within 20 days of enterprises registering applications, and the review must be completed within 20 days of application acceptance. The system will issue notifications if the handling of cases exceeds the required 20 days, and the staff responsible for the cases should provide explanations, aiming to offer enterprises clear and stable expectations for supervision. In 2023, the average review time for operator concentration cases was 25.7 days; for straightforward cases, it was 17.7 days. This efficiency is among the highest in major anti-monopoly jurisdictions. Since the amended Anti-Monopoly Law took effect on Aug. 1, 2023, we have unconditionally approved 29 cases of concentration of platform operators in accordance with the law, without any approvals with conditions or prohibited cases. 

Follow-up accountability refers to law enforcement, deterrence, and investigation into responsibility. Currently, we are expediting research and development of standards for discretion in administrative penalties for illegal business concentration, and the Rules for Dealing with Ineligible Cases of Concentration of Operators with Possibilities of Excluding or Restricting Competition. This aims to intensify regulation on illegal business concentration and so-called "killer mergers," including those that fail to meet thresholds but still exclude or restrict competition or have the potential to do so after the enforcement of the Anti-Monopoly Law. The goal is to enhance deterrence with mechanisms to champion fair market competition.

We always believe that pro-competition policies are pro-development policies. Anti-monopoly regulation aims to encourage enterprises to grow stronger in accordance with the law and to champion sound and sustainable industrial development, thereby providing consumers with more high-quality and economical goods and services. Going forward, the SAMR will continue to act on the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will promote development as well as strengthen supervision and regulation, adopt an open-minded and prudent attitude in supervision, and continuously improve regular supervision capabilities to support the sound and standardized development of the platform economy. Thank you.

Red Star News:

Self-employed individuals are the capillaries of the national economy, underpinning employment expansion and the improvement of people's livelihoods. May I ask what progress the SAMR has made in promoting their development? What measures will be taken to promote their development quality? Thank you.

Pu Chun:

These are very good questions. Let's invite Mr. Ren to answer the questions.

Ren Duanping: 

Thank you for your questions. Self-employed individuals, which are the largest in number among China's market entities and an essential part of the private economy, play a critical role in stabilizing economic growth, promoting employment, and improving people's livelihoods. General Secretary Xi Jinping has emphasized the importance of taking effective measures to support the development of self-employed individuals. The State Council released regulations on boosting the development of self-employed individuals, providing legislation guarantee in this regard. The SAMR will earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, and continue to take effective measures to advance the sound and orderly development of self-employed individuals.

First, the SAMR has established a regular communication mechanism between itself and self-employed individuals. In line with the State Council's arrangements and requirements for building a regular communication mechanism, officials from the SAMR hosted three symposiums on self-employed individuals, engaged in face-to-face communication with representatives of self-employed individuals, and learned about their conditions, problems, and suggestions. By improving the problem transfer and supervision mechanism, we have better addressed common issues of concern to self-employed individuals and continued to optimize assistance measures.

Second, the SAMR launched a service month campaign and worked with 13 departments to establish a diverse assistance mechanism. In July 2023, the second session of the National Self-Employed Individuals Service Month campaign was initiated, during which a total of 29,200 symposiums on self-employed individuals were held. We visited approximately 4.3 million self-employed individuals, addressing problems and difficulties through 174,600 cases.

Third, the SAMR advanced targeted assistance for different categories and types of self-employed individuals. Based on the experience of 12 pilot provinces, the SAMR, along with 14 departments, including the National Development and Reform Commission, the State Taxation Administration, and the National Financial Regulatory Administration, released a guideline on targeted assistance for self-employed individuals of various types and categories. This guideline clarifies classification methods and cultivation measures for four types of self-employed individuals, including those striving for subsistence, growth, and development and those that are renowned, specialized, high-quality, and innovative.

With concerted efforts from various regions, local relevant departments, and all sectors of society, self-employed individuals nationwide have achieved stable and sound development, with an improved level of activity and increased revenues. By the end of 2023, the total number of registered self-employed individuals in the nation reached 124 million, accounting for 67.4% of business entities across China and providing employment for nearly 300 million people. The year 2023 saw 22.582 million newly registered self-employed individuals, marking an 11.4% increase year on year. Self-employed individuals act as the capillaries of industrial and supply chains and the nerve endings of markets. Their stable development sustains the hustle and bustle on the streets and maintains the livelihoods of hundreds of millions of families, demonstrating the strong vitality and resilience of the Chinese economy.

Next, the SAMR will focus on the following aspects to improve the quality of development of self-employed individuals in accordance with the deployments of the Central Economic Work Conference:

First, we will comprehensively promote targeted assistance based on different types and categories. We will guide local authorities to refine classification criteria, establish a unified national "List of Self-Employed Individuals," leverage the leading and exemplary role of enterprises featuring novel, special products of famous brands with high quality, and encourage various regions and departments to introduce more targeted policies and measures to support the development of self-employed individuals.

Second, we will give full play to the role of the "National Self-Employed Individuals Development Network," which was initially established and is being enriched in content and service resources. We will explore market-oriented means to provide services, including laws and policies, market supply and demand, recruitment information, entrepreneurship training, and financial support for self-employed individuals.

Third, we will create a favorable atmosphere. We will enhance the regular communication mechanism between the SAMR and self-employed individuals, address challenging issues, and continue to carry out the third edition of service activities for self-employed individuals nationwide. We will increase incentives and publicity for outstanding self-employed individuals, continue to monitor their activity, and thus better support their high-quality development. Thank you.

CCTV:

The Central Economic Work Conference highlighted the importance of maintaining positive interactions between high-quality development and high-level safety. Food safety is a critical issue affecting people's well-being. We want to know what the SAMR has done to strengthen supervision over food safety and what are your plans moving forward? Thank you.

Pu Chun:

Thank you for your question; I'll answer it. Food safety relates to people's health and safety. Since the 18th CPC National Congress, General Secretary Xi Jinping has made a series of important statements, providing theoretical guidance and fundamental instructions for our work regarding food safety. The SAMR has firmly implemented the important instructions given by General Secretary Xi Jinping, carried out the decisions and arrangements of the CPC Central Committee and the State Council, adopted a problem-oriented approach, prevented and defused risks, never allowed the bottom line to be crossed on major food safety issues, and ensured the steady and positive momentum of food safety.

First, we have strengthened localized management responsibility and corporate principal responsibility for food safety. We guided local authorities to establish and improve a mechanism featuring a multi-level targeted prevention approach, implemented the system of "three lists plus one commitment letter" (responsibility list, task list, inspection list, and food safety responsibility and task commitment letter), and further fulfilled localized management responsibilities. We encouraged enterprises to appoint food safety officers and directors in accordance with laws and regulations, establish a risk control list, and strictly implement the "daily control, weekly investigation, and monthly scheduling" work mechanism. When problems occur, we can find the responsible parties and conduct investigation.

Second, we have established a robust food safety standard system. The SAMR has revised the Food Safety Law and its implementation regulations, formulated and introduced 16 supporting regulations on food safety, and issued 87 supplementary methods for food testing and 49 methods for quick inspection, providing a strong institutional guarantee and technical support for law-based supervision.

Third, we have continued to enhance our supervision to ensure food safety. We coordinated pre-incident, during-incident and post-incident supervision, optimized the registration management process for special foods, strengthened on-site inspections of food production and operation licenses, and strictly controlled market access. We fully implemented risk-based graded supervision, formulated a supporting checklist of key inspection points, increased inspection frequency for high-risk foods and their enterprises, and guide local governments to strengthen random inspections. In 2023, we completed 7.0349 million batches of food safety supervision and sampling inspections, with a failure rate of 2.72%, a reduction of 0.14% from the previous year. 

Fourth, we have combined punishment and clemency in punishing illegal acts. We focused on addressing prominent issues of public concern while strengthening the handling and investigation of food safety cases. The first three quarters of 2023 saw 334,500 food safety violation cases nationwide, 33,500 of which were exempted from punishment, and the average fine per case was 4,900 yuan, showing a downward trend. These figures not only reflected the effectiveness of food safety supervision, but also showed an improvement in our concept and modes of law enforcement, which was recognized by the public.

Moving forward, the SAMR will continue to keep in mind the worst scenarios, strengthen risk management, pay close attention to the delivery of duties, improve the food safety risk prevention and control system, improve the consultation, major accident and public opinion emergency response mechanism, and effectively protect the food safety of the people. That's all from me. Thank you.

Hong Kong Bauhinia Magazine:

The Central Economic Work Conference proposed enhancing quality support and standard leadership. Would you please introduce the efforts made by the SAMR on quality support and standard leadership? Thank you.

Pu Chun:

I'll invite Mr. Liu to answer the question.

Liu Sanjiang:

Thank you for your interest in quality issues. To build a modernized industrial system and advance high-quality economic and social development, it is essential to fully leverage the roles of quality support and standard leadership. In accordance with the plans of the Central Economic Work Conference, we will strive to establish quality benchmarks and advanced standards based on fully implementing the outline to improve the overall quality of China's economy.

In terms of setting up quality benchmarks, we will promote high-quality development to empower enterprises, industrial and supply chains, as well as counties in a systematic manner.

First, we will identify a group of leading enterprises that help improve the overall quality of China's economy, better leveraging the role of quality in fostering enterprise growth. Focusing on areas such as quality technological innovation, improvement in quality management, and enhancement of brand competitiveness, we will select a group of companies known for their pursuit of quality to serve as models for other companies in key sectors such as information and communication, engineering machinery, and new energy vehicles.

Second, we will initiate a series of major signature projects to enhance the quality of industrial and supply chains, thereby bolstering industries with high-quality growth. Focusing on key industrial chains such as integrated circuits, artificial intelligence, and quantum information, we will outline the quality profile of these industrial chains, formulating lists of quality issues, research topics, and policies to strengthen comprehensive quality management of industrial chains. We will also enhance our quality infrastructure and promote coordinated quality improvements throughout industrial and supply chains.

Third, we will foster a group of counties, districts and towns of high-quality development, giving more play to the role of quality in promoting sustainable urban development. We will establish a comprehensive system to evaluate the development quality of counties. Counties, districts and towns are encouraged to formulate and implement their urban quality development strategies based on their own mission and resources. Modern quality management concepts and tools are also used to advance refined, high-quality and intelligent urban development, thus strengthening the grassroots foundation for China to improve the overall quality of its economy.

In terms of strengthening the advancement of standards, we will take three measures. First, we will raise technical, emissions, and energy consumption standards to better leverage the role of standards in boosting domestic demand. We will improve the quality and safety requirements for consumer commodities such as home appliances and furniture, along with service standards. We will upgrade smart manufacturing, green manufacturing, and service-oriented manufacturing standards to promote new infrastructure standards for infrastructure such as data centers and electric vehicle charging stations. We will also improve fuel consumption standards for passenger cars and heavy commercial vehicles. We will enhance standards on energy consumption quotas and for terminal product energy efficiency of key industries. In particular, we will strengthen the development and implementation of mandatory national standards for key industrial products and special equipment that are safety-critical, ensuring these standards are as strong as possible. We aim to leverage standards to pioneer large-scale equipment updates and consumption product replacement programs.

Second, we will steadily expand institutional opening up for standards to enhance our performance in international competition and cooperation. We will establish a more open standardization system, actively participate in the governance of international standard organizations, strengthen the interactive development of standardization with technological innovation, and contribute more of China's visions to improving the international standard system. In combination with cooperation demands in industries, trade, engineering, etc., we will accelerate the compilation of foreign language versions of Chinese standards.

Third, we will implement a series of major signature projects to better leverage the role of standards in safeguarding the stability of industrial chains. We will focus on important industrial chains such as integrated circuits, industrial robots, and the large-scale application of the BeiDou Navigation Satellite System. We will develop technological standards for key areas such as artificial intelligence security and driving assistance systems. We will accelerate the conversion of independent technologies into independent standards and establish a standard system that adapts to industrial chains. Thank you.

Guangming Daily:

We have noted that last year, the SAMR released regulations on credit restoration for business operators. These regulations have played a positive role in assisting business entities to correct their mistakes and rebuild their credit. Could you please provide an introduction to this? Thank you.

Pu Chun:

This is a very important question, and I will answer it. In recent years, the SAMR has prioritized adhering to high-quality development in the new era. We have actively innovated institutional mechanisms, vigorously promoted credit restoration for business entities, and helped them improve their credit levels and market competitiveness, fully promoting high-quality economic development of China.

By the end of December 2023, market regulation departments across the country have restored 850,000 administrative punishment records for various business entities, restored 4.96 million pieces of information on the list of abnormal business operations, and resolved the abnormal status of 17.76 million individual businesses. These business entities were relieved from restrictions in tendering and bidding, investment and financing, and the awarding of honorary titles in accordance with the law, unleashing the vitality of business entities and creating a market-oriented, law-based and world-class business environment.

The SAMR has introduced the Administrative Measures for Credit Repair in Market Supervision and Management and the Regulations on Procedures for Credit Repair Regarding the Lists of Entities with Serious Acts of Bad Faith and Disclosed in Administrative Penalty Announcements (Trial Implementation). These measures aim to establish a credit repair framework that features hierarchical and categorized management with phased exits. Relying on the National Enterprise Credit Information Publicity System, we provided guidance for local authorities to establish and enhance online credit restoration systems, enabling credit restoration to be available online nationwide. This facilitates efficient and convenient credit restoration services for business entities. Extensive publicity and interpretation efforts have been conducted to enhance enterprises' awareness of credit restoration policies, guiding them to actively repair their credit and elevate their credit standing. Proactive guidance has been given to local market supervision departments to establish and improve mechanisms for information sharing and mutual recognition with the Credit China website, promoting mutual recognition and synchronization of credit restoration results, and contributing to the construction of a unified national market.

Market supervision departments in various regions have innovated their credit restoration mechanisms, continuously improving their service capabilities and levels. Shandong, Jiangxi, Yunnan, and Xizang have established a mechanism for the simultaneous delivery of administrative penalty decisions and credit restoration notifications, promptly informing business entities of credit restoration methods and procedures. Beijing and Yunnan have shortened the processing time for credit repair applications, efficiently assisting business entities in rebuilding their credit. Jiangsu has implemented personalized reminders for credit restoration, enhancing the precision of credit restoration services. Anhui has explored the implementation of three credit restoration models: "commitment with further delivery," "commitment for verification-free services," and "instant application, instant handling." These models use commitments to facilitate credit restoration. It also set up "credit restoration stations" to provide one-stop services for "registration" and "credit restoration." Active guidance is provided to local innovations in work mechanisms to enhance credit repair efficiency. Thank you.

CNR:

The recently revised Provisions of the State Council on the Declaration Standards for the Concentration of Business Operators have come into force. Could you please provide some background information and the main content of this revision? Moreover, what positive effects will it have in terms of stimulating the vitality of business entities? Thank you.

Xu Lefu:

Thank you for your concern about antitrust work. The declaration standards for business concentration are an important part of the antitrust review system. The Provisions of the State Council on the Declaration Standards for the Concentration of Business Operators, promulgated and implemented in 2008, set specific turnover thresholds for declaring business concentration. This has played a key role in clarifying businesses' obligations to declare, defining the scope of supervision, screening for competition risks, and improving the efficiency of antitrust reviews. As of the end of 2023, antitrust enforcement agencies under the State Council have concluded reviews of 5,789 cases of business concentration. Among these, three cases were prohibited, and 61 cases were approved with additional restrictive conditions, effectively preventing monopolistic behavior, maintaining a market environment of fair competition, and promoting the healthy development of the socialist market economy.

Over the past decade, as China's economy has continued to flourish, the turnover declaration criteria established in 2008 have become inadequate for promoting high-quality development. From 2008 to 2022, China's GDP grew from 31 trillion yuan to 121 trillion yuan, the number of corporate entities increased from 4.96 million to over 28 million, and the number of enterprises with annual turnover exceeding 400 million yuan rose from 32,800 to over 90,000. The number of business concentration declarations surged, reaching 867 in 2022, a tenfold increase from the 77 declarations in 2009. As a result, some small- and medium-sized business concentrations, which clearly did not have exclusionary or restrictive effects on competition, were included in the declaration scope, raising the institutional transaction costs of business concentration. Therefore, it is necessary to raise the declaration criteria. 

The new regulations have increased the global aggregate turnover threshold for participating operators in the concentration in the previous fiscal year from above 10 billion yuan to above 12 billion yuan, the aggregate turnover threshold in China from over 2 billion yuan to over 4 billion yuan, and the unilateral turnover threshold in China from above 400 million yuan to above 800 million yuan. Additionally, it is stipulated that the implementation of the revised standards will be evaluated in light of the economic development situation.

The new declaration criteria will offer at least two benefits to businesses. First, they will help reduce the costs of investment and merger and acquisition transactions for companies. According to estimates, the threshold increase will result in an annual average reduction of over 200 declarations for small- and medium-sized M&As, accounting for over 30% of all declarations. Second, the criteria will contribute to improving the overall efficiency of economic operations. With the higher declaration criteria, the efficiency of corporate investment and M&A activities will significantly improve, boosting market confidence and stimulating the vitality of business entities. This will further consolidate and enhance the positive momentum of China's economic recovery.

In the next step, the SAMR will focus on promoting and implementing the new regulations. While facilitating business declarations, it will efficiently conclude concentration cases with no anticompetition behavior in accordance with the law and address the adverse effects of concentrations on competition. This will help create a level playing field for various types of business entities, providing strong support for building a new development paradigm and promoting high-quality development.

Xinhua News Agency:

Last year, the CPC Central Committee and the State Council released the national outline of building a quality-powered nation. Could you brief us on the progress and achievements made by the SAMR in implementing the outline and promoting quality development? Thank you.

Liu Sanjiang:

Thank you for your question. Quality is the foundation of development, a benefit to the people and a strategy for strengthening the nation. Building China into a quality-powered nation is a crucial aspect of comprehensively advancing the noble cause of building China into a great modern socialist country in all respects and advancing the rejuvenation of the Chinese nation on all fronts. The CPC Central Committee and the State Council issued the national outline of building a quality-powered nation, providing guidelines to take a coordinated approach in this regard. Since the release of the outline, various regions and departments have focused on the development goals, key tasks, and major projects, vigorously implementing them and achieving positive progress and accomplishments. To summarize, there are four main aspects as follows:

First, we've enhanced work mechanisms for product quality. Through restructuring, the State Council established the National Leading Group for Coordinating and Promoting Building China into a Quality-powered Nation, with the number of member departments increasing to 33. We conducted a central quality inspection and assessment for the first time, effectively strengthening the endeavor. Various localities also issued implementation documents tailored to their realities, promoting quality enhancement in provinces, regions and cities. We held comprehensive and multi-channel publicity activities, successfully hosting events such as the China Quality Conference in Chengdu and China's "Quality Month" campaign. The public's overall awareness of product quality has been further improved, and the collaborative effort to transform China into a quality-powered nation has been consistently consolidated. 

Second, we implemented actions to enhance quality. Eighteen departments jointly issued an action plan to further improve the quality of products, projects, and services, accelerating quality improvements and upgrades. The qualification rate of products in the manufacturing industry increased steadily to 93.65%, and the consistency of major consumer goods standards with international standards reached 96%. The satisfaction scores for life services and public services have risen to 78.01 and 79.85, respectively, placing them in the relatively satisfied range and moving more towards the satisfied range.

Third, we have strengthened quality and safety supervision. We have improved quality supervision systems, including risk monitoring, supervision, random inspections, and defect recalls, and addressed quality issues in over 20 key consumer products, such as firefighting products and gas stoves. Special operations like the "Double Punch" and "Iron Fist" campaigns were conducted to severely crack down on quality violations. In 2023, a total of 56,700 cases of quality violations were investigated and handled, resulting in the recall of 6.728 million defective vehicles and 10.42 million defective consumer products.

Fourth, we have solidified the foundation for quality infrastructure. We have issued guidelines and management measures for the construction of national quality standard laboratories, and the selection and construction work for the first batch has been initiated. A total of 192 national measurement benchmarks, 65,000 social public measurement standards, 877 national quality inspection centers, and over 1,400 comprehensive service platforms for quality infrastructure have been established. The total number of various standards has exceeded 3.3 million items, and the number of certified organizations for quality certification has surpassed 1 million, further highlighting the effectiveness of quality infrastructure services in supporting industrial and enterprise development.

Promoting quality development and building China into a quality-powered nation requires the active participation of the entire society, perseverance, and sustained efforts. In this regard, we hope the media will contribute more to quality publicity, creating a strong societal atmosphere that highly values quality and pursues high quality. Let's work together to advance this pursuit. Thank you.

China Daily:

The Central Economic Work Conference proposed implementing structural tax reduction and fee reduction policies. The SAMR recently announced the results and data of the previous stage of work related to enterprise fees. What arrangements and work plans does the administration have for managing arbitrary charges on enterprises in the future?

Ren Duanping:

Thank you for your question. The SAMR has steadfastly implemented the decisions and arrangements of the CPC Central Committee and the State Council, launching special rectification initiatives to combat unjustified charges levied on businesses for five consecutive years. Through regulatory law enforcement aimed at eliminating unjustified fees and rectifying disorder, a total of 320,000 charging units have been inspected, and over 18 billion yuan has been refunded to enterprises. Recently, in line with the Central Economic Work Conference's decisions and arrangements to implement structural tax and fee reduction policies and support scientific and technological innovation and the development of the manufacturing industry, the administration has conducted targeted surveys into some scientific and technological innovation and manufacturing enterprises. This effort comprehensively addresses the problems businesses face with enterprise-related charges, improving the relevance and effectiveness of managing enterprise-related fees.

During the surveys, enterprises reported noticeable improvements in the business environment after years of continuous rectification, and the collection of unjustifiable fees has been effectively curbed. However, scientific and technological innovation and manufacturing enterprises still have expectations for fee reduction and burden alleviation. For instance, these enterprises want to reduce the costs associated with protecting new inventions and technologies, hoping for a smoother commercialization of technological achievements with lower costs. Manufacturing enterprises are more focused on the progress of new projects and the renovation of equipment, seeking faster approval, lower financing costs, and more transparent charges for intermediary services. Additionally, enterprises have various demands regarding fair competition, electricity and energy consumption, transportation and logistics, industry associations, and other aspects.

Focusing on the sci-tech innovation and real concerns of manufacturing enterprises, we have carefully reviewed the relevant situation and will adopt targeted measures to respond to the needs of enterprises, and take practical steps to advance sci-tech innovation, boost the confidence of manufacturing enterprises, ensure their stable expectations and promote their growth. Next, the SAMR will prioritize work in the following three aspects:

First, we will carry out a special safeguarding campaign through market regulation. Giving priority to regulating charges on enterprises, we will step up our efforts to regulate charges on sci-tech innovation and manufacturing enterprises and strictly investigate and prosecute illegitimate charges on enterprises, to safeguard the healthy development of sci-tech innovation and the manufacturing industry, maintain a sound business environment and competition order, and ensure stable and smooth industrial and supply chains.

Second, we will improve services for sci-tech innovation and manufacturing enterprises. In response to the concerns of enterprises learned during inspections and surveys, we will enhance cooperation with the relevant authorities, develop positive interactions between oversight and law enforcement and policy formulation, promote the optimization of structural fee reduction policies, and strengthen coordination among departments, to form a synergy for governance.

Third, we will release guidelines on regulations for charges on enterprises. At present, the public is solicited on its opinions on rules for handling illegal charges on businesses, and we will release the rules in due course after making revisions and improvements based on the opinions of all parties. We will also accelerate the introduction of guidelines of compliance for charges on enterprises by industry associations and chambers of commerce in accordance with procedures. The SAMR will improve the quality and efficiency of institutional supply, and consolidate the results of regulating charges on enterprises. Thank you.

Xing Huina:

Last question, please.

Economic Daily:

While requiring the unleashing of consumption potential to promote the recovery of consumption, the central government also clearly stated that we should oppose waste and excessive consumption. We have noticed that the SAMR has done a great deal of work to curb food waste. Could you explain a little about this work? Thank you.

Pu Chun:

I'll answer this question. Food is of primary importance to the people. As the saying goes: "Consider how difficult it is to obtain rice and grain." Frugality is a traditional virtue of the Chinese nation and has consistently been the fine tradition of our Party. In 2023, the SAMR fully implemented General Secretary Xi Jinping's important instructions on curbing food waste, and launched a three-month nationwide campaign to curb food waste, achieving positive results. 

First, we have tightened regulations and strengthened inspections and law enforcement. Focusing on key areas including food delivery, wedding banquets, buffets, and canteens, we have launched campaigns such as random checks on restaurants and inspected 4.67 million canteens and restaurants, among which 78,100 were found to have food waste, with 92,000 problems rectified. We have strictly and quickly investigated, prosecuted and corrected illegal conduct including failing to actively and promptly remind customers when they order more food than they could eat, and encouraging and misleading customers into ordering excessive quantities of food. We have promoted procedures to simplify the handling of cases involving minor violations of the law. 29,800 cases were handled with orders for rectification and warnings, and 6,201 typical cases were published in a timely manner.

Second, we have focused on regulating services on food delivery platforms. We have worked with the Ministry of Commerce to issue the Guiding Opinions on Giving Play to the Leading Role of Online Catering Platforms and Effectively Preventing Delivery Food Waste," urged leading food delivery platforms to play an exemplary role, and guided them to take specific measures including whole-process reminders, giving detailed portion descriptions, adjusting the thresholds for discounts, promoting small portions of food, and establishing reward mechanisms for food conservation, thereby promoting the well-regulated and sound development of the food delivery industry. 

Third, we have continued to improve the long-term working mechanism. The SAMR published the Opinions on Further Improving the Work on Curbing Food Waste and put forward clear requirements on preventing food waste at wedding banquets together with the Office of the Spiritual Civilization Development Steering Commission and the Ministry of Civil Affairs. Since the launch of the special campaign last year, we have successively issued five national standards such as the General Rules for Anti-Food Waste Management in the Catering Industry and guided relevant industry associations to formulate six group standards. Local regions have also formulated and revised 111 relevant local standards and group standards.

Fourth, we have strengthened organization and guidance of publicity and education work. We have carried out anti-food waste activities in 371 universities to popularize information, launched a discussion using the hashtag #CleanPlatesAreVirtuous on Douyin, organized 28,700 large restaurant chains to remind their customers to reduce food waste, and guided localities to make 10.35 million publicity products, reaching more than 900 million people. We have advanced the publicity of relevant standards and laws on food waste prevention in various places, covering 55,000 catering service units and 130,000 employees. 

Curbing food waste cannot be accomplished overnight and we must make sustained and consistent efforts. We hope that everyone in society will take action to participate in, publicize and safeguard the "Clean Plate" campaign, fight together in the protracted battle against food waste, and foster a new social value where waste is seen as shameful and thriftiness is applauded. We also hope that journalists can raise awareness in this regard and jointly foster a sound atmosphere which advocates frugality and cherishing food. Thank you.

Xing Huina:

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

Translated and edited by Zhu Bochen, Qin Qi, Liu Jianing, Zhang Tingting, Wang Ziteng, Liu Caiyi, Mi Xingang, Xu Kailin, Wang Wei, Huang Shan, Zhang Rui, Li Huiru, Zhou Jing, Zhang Junmian, Wang Yanfang, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Wentao, minister of commerce

Mr. Wang Shouwen, China international trade representative and vice minister of commerce

Ms. Guo Tingting, vice minister of commerce

Chairperson:

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

Date:

Jan. 26, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very pleased to have invited Mr. Wang Wentao, minister of commerce; Mr. Wang Shouwen, China international trade representative and vice minister of commerce; and Ms. Guo Tingting, vice minister of commerce, to brief you on seeking progress through stability and promoting stability with progress for new breakthroughs in high-quality commerce development, and to take your questions.

Now, I will give the floor to Mr. Wang Wentao for his introduction.

Wang Wentao:

Ladies and gentlemen, good afternoon. I am very happy to be attending this SCIO press conference to brief you on the business operations in 2023 and the work plans for implementing the deployments of the Central Economic Work Conference in 2024. First of all, on behalf of the Ministry of Commerce (MOFCOM), I would like to express my heartfelt thanks to everyone for your long-term concern and support for commercial work.

In the past year of 2023, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, united as one, and overcame difficulties to promote overall stable business operations throughout the year and take a step forward in high-quality development. I think this progress can be summed up simply using three terms:

The first is "ensuring stability." Our business work is all related to China's three drivers of growth: consumption, investment and net exports. Specifically, total retail sales of consumer goods reached unprecedented levels, with final consumer spending contributing 82.5% to economic growth in 2023. Building upon a robust starting point, we witnessed a positive upturn in foreign trade denominated in RMB. The share of our exports in the international market remained consistently stable at around 14%. Two-way investment also flourished, with the actual utilization of foreign capital marking the third-highest in history, and non-financial outbound direct investment increasing by 16.7% in RMB. On the whole, these areas maintained a stable foundation and made substantial contributions to the overall recovery of the national economy.

The second term is "improvement." This signifies the constant optimization of structures and the continuous enhancement of development quality and substance. For instance, in terms of consumption, online retail sales surged by 11%, maintaining a rapid growth rate, while service retail sales experienced a remarkable 20% increase, revealing substantial growth potential. In foreign trade, China's import and export proportion of intermediate goods reached 61.1%, marking a historical high. Notably, the import and export share of private enterprises increased by 3.1 percentage points, reaching 53.5%, firmly establishing their significant role. Foreign investment also witnessed an upswing in high-tech industries and manufacturing. The growth rate of foreign investment in manufacturing, wholesale and retail outpaced the average, while foreign investment collaboration in green, digital and blue industries continued to expand.

The third term is "empowerment." New development dynamics continued to emerge in various sectors. For instance, the share of online retail sales of physical goods in total retail sales reached a record high of 27.6%. Green, health and smart products as well as domestic "trendy products" have gained immense popularity, evolving into fresh patterns of consumer preferences. Notable achievements include a 50% increase in automobile exports and a 19.6% rise in cross-border e-commerce exports, both of which have emerged as new engines for foreign trade growth. The number of newly established foreign-funded enterprises surged by 39.7%, reflecting the enthusiasm of foreign investors to participate in opportunities within the Chinese market. There have also been new developments and breakthroughs, such as the successful completion of text negotiations for the World Trade Organization (WTO) Investment Facilitation for Development Agreement, which is the first major issue that China has taken the lead in at the WTO. We have signed or upgraded free trade agreements with four countries including Nicaragua. The release of China's inaugural plan on enhancing international economic and trade cooperation in digital and green fields received positive responses from more than 30 countries and international organizations.

This year marks the 75th anniversary of the founding of the People's Republic of China and holds paramount significance in achieving the goals and tasks outlined in the 14th Five-Year Plan (2021-2025). The MOFCOM will continue to adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee. We will implement the directives of the Central Economic Work Conference and the Central Conference on Work Relating to Foreign Affairs. Upholding the "three important" positioning, we will propel consumption from post-pandemic recovery to sustained expansion, fortify the foundations of foreign trade and investment, expand high-level opening-up to the global community, and through tangible actions and outcomes in high-quality business development, contribute positively to economic recovery and the promotion of Chinese modernization.

Now, my colleagues and I are ready to answer your questions. Thank you.

Shou Xiaoli:

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

ThePaper.cn:

In 2023, China's total foreign trade volume reached 41.76 trillion yuan, showcasing significant resilience. Global institutions generally anticipate increased uncertainties in the world's economic and trade development for 2024. What is your perspective on China's foreign trade situation in 2024? Additionally, could you elaborate on the policies and measures that the MOFCOM plans to implement to stabilize the development momentum of foreign trade? Thank you.

Wang Wentao:

Thank you for your questions. Since last year, under the strong leadership of the CPC Central Committee, we have concentrated on policy, entities, markets and other aspects. We have taken proactive and targeted measures to promote the overall stability of foreign trade operations. The scale of imports and exports reached 41.76 trillion yuan, achieving the goal of ensuring stability and enhancing quality. This accomplishment has been hard-earned and can be evaluated from three dimensions:

Looking from a longitudinal perspective, China's imports and exports achieved a positive growth of 0.2% compared to the high base of 2022, and an increase of over 30% compared to the pre-pandemic year of 2019. Especially, as mentioned earlier, our exports are expected to maintain a stable market share of around 14% in the international market.

Looking horizontally, the United Nations Conference on Trade and Development estimated that global trade in goods likely declined by 7.5% in 2023. In comparison, China's foreign trade performance was better than the global average and that of most major economies.

Upon closer examination, the structure of foreign trade has continuously been optimized, with two notable breakthroughs. First, China's exports of "new three" products — new energy vehicles, photovoltaic products, and lithium-ion batteries — surpassed 1 trillion yuan for the first time, with a growth of nearly 30%. This indicates a continuous improvement in the structure of our export commodities. Second, the number of business entities engaged in real import and export activities topped 600,000 for the first time, reaching 645,000. This demonstrates the continuous growth and optimization of foreign trade entities.

You just asked about the outlook for 2024, which is a question that everyone is concerned about. In general, this year, the development of China's foreign trade will face a more complex and challenging external situation. On the one hand, there is weak demand, and the global economy is still sluggish. The International Monetary Fund predicted that global economic growth will decrease to 2.9%. On the other hand, the environment is unfavorable, with rising trade protectionism and increasing geopolitical conflicts. There is a significant increase in spill-over risks. For example, the recent disruption in the Red Sea shipping channel has disrupted international trade. However, it is important to recognize that China's foreign trade development still has many favorable conditions. For example, the competitiveness of the foreign trade industry continues to improve, new business formats and models are flourishing, and digitalization and green development are accelerating. We have confidence and determination in implementing the arrangements made at the Central Economic Work Conference and consolidating the foundation of foreign trade and foreign investment. Specifically, our work will focus on four aspects:

First, we will promptly introduce new policies. The earlier these policies and measures are implemented, the greater their impact will be. Last April, we formulated policies aimed at stabilizing the scale and optimizing the structure of foreign trade, which have yielded positive results. We will continue to ensure their effective implementation. Additionally, in line with the new situation and tasks for this year, we will conduct policy research and add more tools to our toolbox. We recently conducted a survey to understand the suggestions and demands from localities and enterprises. Currently, we are actively conducting a new round of policy research and evaluations, with the aim of releasing new policies as soon as possible. These policies will be combined with existing ones to form a package so that they will have a synergistic effect to the largest extent.

Second, we will accelerate the cultivation of new growth drivers. Specifically, we will enhance the competitiveness of our industries. Leveraging our advantages, such as our complete industrial foundation and comprehensive manufacturing sector, we will expand trade in raw materials, semi-finished products, components, and other intermediate goods. We will seek vitality through innovation, promoting the development of new business formats and models in areas such as cross-border e-commerce, bonded maintenance, and market procurement. We will draw motivation from reforms, establishing an import and export catalog of green and low-carbon products, accelerating the digitalization of international trade documents, and driving green trade development and full-chain digital transformation.

Third, we will assist in exploring new markets. In the foreign trade industry, there is a saying: "A thousand emails are not as effective as one face-to-face meeting." Therefore, we will continue to organize important expos such as the Canton Fair and the China International Fair for Trade in Services. We will actively support companies in participating in overseas exhibitions and promote cross-border business personnel exchanges. We will create more opportunities for communication and exchanges between enterprises, helping them better connect with markets and customers and strive to secure more orders.

Fourth, we will unleash new potential for imports. We not only aim to expand exports but also to increase imports. The market is the most scarce resource, and China's super-large-scale market advantage provides vast market space and cooperation opportunities for enterprises from various countries. We will expand imports of high-quality consumer goods, advanced technologies, important equipment, and key components. We will also increase imports of energy and resource products as well as domestically scarce agricultural products. We will leverage platforms such as the China International Import Expo to enhance diversified import channels and improve the facilitation of import trade. We will also foster the development of national import trade promotion and innovation demonstration zones. The goal of these efforts is to transform China's super-large-scale market into a shared global market, injecting new momentum into the development of our national economy and the global economic recovery. Thank you.

Bloomberg:

My question is about foreign investment in China. Recently, the Chinese government introduced 24 measures aimed at expanding efforts to attract foreign investment. Not long ago, a representative from the Japanese Chamber of Commerce and Industry in China mentioned that while the Chinese government has made efforts to ensure personal income tax reductions and facilitate visa applications, there are still specific issues in other areas that have not been implemented. Additionally, there are no further detailed rules regarding the new regulations on cross-border data transmission. What measures will the MOFCOM take to address the concerns of businesses in these areas?

Wang Wentao:

Last year, the State Council issued the Opinions on Further Optimizing the Foreign Investment Environment and Increasing Efforts to Attract Foreign Investment, commonly referred to as the "24 Measures to Attract Foreign Investment." After the release of these measures, the MOFCOM, together with relevant departments and local governments, further refined work tasks, implemented measures, and set timelines. We also conducted promotion and interpretation through press conferences, roundtable meetings with foreign-invested enterprises, and other events. Many journalists present here also contributed to the extensive promotion and introduction of these measures.

You just asked about the implementation of these measures. I would like to first provide an introduction to friends from the media. The guidelines to further optimize China's foreign investment environment and beef up foreign investment inflow contain 59 specific policies and measures. Over the past five months, we have worked hard with relevant departments to advance their implementation. Overall, over 60% of the policies and measures have been implemented or made positive progress. To be specific, among 59 policies and measures, we have completed 10 items, made phased progress in the implementation of 28 items, and continued to advance the implementation of 21 items. Just as you mentioned, policies such as tax exemption for foreign personal allowances and benefits and tax refunds for foreign-funded R&D institutions purchasing Chinese-made equipment have been extended until the end of 2027. For another example, the new version of the foreign permanent resident ID card has been officially put into use, and the guide for foreign businesspeople working and living in China has been released. These measures have facilitated travel, life, and consumption for foreign friends in China.

With regard to the regulations you mentioned to regulate and promote cross-border data flows, what I can tell you is that our competent authorities are driving forward the issuance of these regulations. Concerning 59 policies of the guidelines, local governments are also making supporting implementation arrangements and introducing some policies based on the characteristics of local foreign-funded enterprises.

I would also like to point out that foreign-funded enterprises have the best say on how these measures are implemented and whether they are effective. We are now making assessments by means of questionnaires and symposiums to get to know the real thoughts of foreign-funded enterprises. At present, over 90% of foreign-funded enterprises have given positive feedback. Of course, they also raise many opinions and expectations. We have attached great importance to them and will work on them in our follow-up work. The MOFCOM will continue to accelerate the implementation of these measures and release information about the work concerning government procurement, standard formulation, and investment facilitation, which are of general concern to foreign-funded enterprises, in a timely manner. Here, I would like to tell you that whatever difficulties and problems foreign-funded enterprises encounter, they can report them to the MOFCOM through at least three channels. The first one is the special work group on key foreign capital programs; the second one is the roundtable meeting of foreign-funded enterprises; and the third one is the online system for the collection and handling of problems and appeals of foreign-funded enterprises. We will actively promote the solution of these problems and the implementation of relevant policies and measures.

Thank you.

Nanfang Daily, Nanfang+:

In 2023, the Regional Comprehensive Economic Partnership (RCEP) entered into full effect. China signed free trade agreements with many countries and continued to enlarge its circle of friends via free trade. What progress has been made by China in the development of its free trade areas? What follow-up measures will be taken by the MOFCOM to advance the high-standard development of free trade areas? Thank you.

Wang Shouwen:

Thank you for your questions. General Secretary Xi Jinping put forward that we should expand the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress. The MOFCOM has resolutely implemented the decisions and plans of the CPC Central Committee and adopted a series of measures last year, achieving good results. 

First of all, just as Mr. Wang mentioned, in 2023, we made a new record in terms of the negotiation and signing of free trade agreements. We have recently signed four agreements, including free trade agreements with Ecuador, Nicaragua, and Serbia, and the protocol on further upgrading the free trade agreement with Singapore. We have also completed negotiations on the early harvest arrangements for the free trade agreement with Honduras. As of today, we have signed 22 free trade agreements with 29 countries and regions, accounting for about one-third of China's total foreign trade volume.

In terms of the content of the free trade agreement, new progress has been achieved concerning high standards. For example, China committed to a negative-list model of services and investment opening-up by signing an FTA with Nicaragua and reaching a protocol to further upgrade the FTA with Singapore, which marked a historic moment in China's FTA negotiation history. In addition, free trade agreement negotiations at present all include cooperation on standards, including digitization of trade documentation.

The RCEP you just mentioned is indeed worth highlighting in our introduction. RCEP has been in effect for two years, and it has brought tangible benefits to Chinese enterprises and our free-trade agreement partners. Last year, the trade volume of China with other 14 RCEP member countries reached 12.6 trillion yuan, up 5.3% from 2021 before the agreement came into force. China's exports to RCEP member countries increased by 16.6%, 4.6 percentage points higher than the growth rate of China's total exports over the same period. What is worth mentioning is that China's exports of NEVs, lithium-ion batteries, and photovoltaic products have a more impressive performance.

In terms of tariff reduction and exemption, under the framework of the RCEP agreement, tariff concessions on import products for Chinese enterprises amounted to 2.36 billion yuan last year. While enterprises of RCEP countries benefited from 4.05 billion yuan of tax breaks for products imported from China in 2023. Clearly, that's the result of mutual benefits. We have also helped local enterprises and industries to enjoy the benefits brought by these free trade agreements. 

At the same time, we have actively worked towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). On Aug. 18, 2022, China set up a working group to advance talks on joining the DEPA . We have completed over 10 rounds of negotiations at the ministerial level, bureau level, and technical level. Mr. Wang has had full exchanges with ministers of DEPA member countries, and primary discussions of all items have now been completed.

This year, it can be said that we will have a richer agenda for our free trade agreement negotiations. We will strive to complete the negotiations on the China-ASEAN Free Trade Agreement 3.0, which will be held in Hangzhou next week. We will also complete the negotiation with Honduras, negotiations with Peru about the upgrading of our free trade agreement, and continue to work towards joining the CPTPP and DEPA.

In addition, we will launch negotiations on free trade or upgrading free trade agreements with the Gulf Cooperation Council, New Zealand, South Korea, and Switzerland to further implement the requirement of expanding the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress. 

In terms of high standards, we will also add some new content, including raising the proportion of zero-tariff treatment in trade in goods; promoting negative-list model of services and investment opening-up, including the opening up of telecommunications, health care, and other service industries; expanding market access for digital and other products; and incorporating high-standard economic and trade rules concerning digital economy, green economy, and standard certification, and government procurement into new free trade negotiations.

Thank you for your questions.

CCTV:

We have noticed that at the National Business Work Conference, the MOFCOM proposed focusing this year on the "Year of Consumption Boost" to promote the continued expansion of consumption. Could you provide a detailed introduction to the relevant situation? Thank you.

Wang Wentao:

I will answer this question. Thank you for your interest in business work, especially in consumption promotion. The issue you raised concerns the "Year of Consumption Boost" and the aim to continually expand consumption. I will offer a detailed introduction to our plans.

First, we will ensure the success of a series of activities themed "Year of Consumption Boost." Last year, we organized numerous activities centered on the recovery and expansion of consumption, achieving significant results. This year, adhering to the keyword "sustained expansion," as mentioned at the Central Economic Work Conference, we aim to enhance the rebound momentum of the consumer market. We have designated this year as the "Year of Consumption Boost" following last year's designation as the "Year of Consumption Promotion." Focusing on the keywords of "sustained expansion," we will collaborate with relevant departments and other parties to organize various consumption promotion activities. These initiatives will create a strong consumption atmosphere and provide residents with diverse and richer consumption experiences. For example, we plan to spotlight the festive season, combining traditional festivals, public holidays, and other peak consumption periods, and organize activities such as an online Spring Festival-themed shopping fair, a digital agricultural promotion fair, and an ice and snow consumption season. The online Spring Festival-themed shopping fair is currently underway, and we invite everyone to participate. Additionally, we will highlight local characteristics, guiding and supporting each region to leverage its unique advantages. This will involve combining local characteristics and folk customs to cultivate iconic event brands, such as the Beijing-Tianjin-Hebei Consumption Season , Shanghai's "May 5 Shopping Festival ", Zhejiang's "Zheli Lai Xiaofei" or "Shopping in Zhejiang" campaign, and the "Love Chongqing " consumption campaign, among others, to boost spending.

Second, we will promote the trade-in of cars, home appliances, etc. This is a key point in promoting consumption this year. According to statistics, China's automobile and home appliance markets have transitioned from a pure "era of increment" to an "era that emphasizes both increment and stock." In 2023, there were about 340 million cars in existence, and the number of major categories of home appliances, such as refrigerators, washing machines, and air conditioners, exceeded 3 billion. Some home appliances have been used for more than 10 or 20 years, and there is a great demand and potential for replacement. At the same time, we have also observed a systematic trajectory for the replacement of old consumer goods such as automobiles and home appliances, requiring coordinated integration and comprehensive policies across production, supply and marketing, upstream and downstream industries, government, enterprises, and consumers, as well as online and offline channels. We will strengthen support and guidance, take the improvement of technology, energy consumption, emissions, and other standards as the driving force, remove difficulties and bottlenecks in replacing old products with new products, and stabilize and expand traditional consumption to better meet the needs of replacing and upgrading consumer goods. All of this will be carried out based on respecting the wishes of consumers.

Third, we will promote the consumption of "China-chic" domestic products. Nowadays, high-quality products designed and made in China embody the national spirit and fine Chinese traditional culture, while "trendy products" represent the trend of fashion and quality consumption. We have observed that the crossover collision and integration of domestic products with trendy products have stimulated a new consumption focus in people's lives. The MOFCOM will continue to focus on the consumption of domestic trendy products and has carried out a series of related activities. For example, since 2006, we have been recognizing China's time-honored brands. Last year, we improved the dynamic rotation management mechanism by eliminating long-underperforming brands while also planning to incorporate new ones. In accordance with relevant regulations and standards, we plan to identify a new group of more than 300 Chinese time-honored brands. Many products from these brands are well-known domestic goods to us. In response to the fashionable, customized, and personalized needs of consumers, they have launched many trendy products that are deeply loved by consumers, especially modern young people. This year, we will also organize the "Time-honored Brands Carnival" and the "Time-honored Brands Digital Museum." Through these methods, we aim to promote the protection, inheritance, and innovative development of time-honored brands, laying a solid cultural and commercial foundation for the consumption of "China-chic" products.

Fourth, we will continue to optimize the consumption environment. The consumption environment and the development of circulation facilities differ between urban and rural areas in China, necessitating different methods, policy guidance and promotion. In cities, we will continue to promote the cultivation and construction of international consumption centers, gradually improve the urban commercial system led by pedestrian streets, supported by smart business districts, and based on convenient living areas, and continuously improve the consumption capacity of cities. In rural areas, we will thoroughly implement the three-year action plan aiming to strengthen the nation's county-level commerce system , accelerate the shoring up of weak links in rural commerce, build a well-equipped and smooth two-way rural circulation network, encourage industrial products to go to the countryside and agricultural products to go to the city, and continue to release rural consumption potential.

Thank you.

CNBC:

The scale of foreign investment attracted by China declined in 2023. What are the main reasons for this? What measures will the MOFCOM take to attract more foreign investment this year? What areas will the MOFCOM pay more attention to? Thank you.

Wang Wentao:

Thank you for your questions. These are pressing questions that everyone is closely monitoring. I will elaborate on them.

Domestic and international media have closely monitored fluctuations in the scale of China's foreign investment attraction, with many reports on the subject. First, instead of delving into a series of data analyses, let me start with perspective and vision. What I want to emphasize is that this issue should be observed and analyzed from multiple perspectives. Premier Li Qiang, in a recent speech in Davos, mentioned that one must broaden their vision and take a panoramic view to see the whole picture in an objective and comprehensive manner . This is how I will answer your question.

If we take a longer-term perspective, China's foreign investment scale has remained high in recent years. Last year, China actually utilized foreign investment of $163.25 billion, equivalent to 11.3 trillion yuan. Although this was a year-on-year decline, the scale was only surpassed by two exceptional years, 2021 and 2022, ranking as the third highest in history.

From a structural analysis perspective, we look not only at the numbers but also at the structure of foreign investment, which involves analyzing its quality. The structure of foreign investment in China has continuously been optimized, with the proportion of high-tech industries reaching 37.4%, up 1.3 percentage points from 2022, reaching a historical high. In particular, the proportion of foreign investment in the manufacturing sector has increased by 1.6 percentage points to 27.9%. However, the rankings of countries can be influenced by certain foreign projects, especially large-scale projects from specific nations, introducing a level of uncertainty. Looking at the country-specific investment situation in 2023, developed countries such as Canada, the United Kingdom, France, Switzerland, and the Netherlands have significantly increased their investments in China. The number of newly established foreign-funded enterprises in China from the European Union, the United States, and Japan has also seen growth.

As mentioned earlier, short-term foreign investment data may experience fluctuations. This is a normal phenomenon in accordance with economic laws. In particular, the implementation of large-scale projects often affects the fluctuations of the current and following years. The fundamental strength of China's long-term economic growth remains unchanged, especially with China's commitment to the fundamental national policy of opening up to the outside world. China has always embraced an open attitude and sincerely welcomes enterprises from all countries to invest in China. We firmly believe China will continue to be a popular destination for foreign investment.

Last year, following central deployments, the MOFCOM conducted the "Invest in China" campaign to attract foreign investment. Throughout the year, we hosted 20 key events and facilitated over 600 supporting activities in various regions. These efforts led to the signing of several major projects and resolved numerous issues. We also established a system of roundtable meetings with foreign-funded enterprises to enhance regular communication and exchange with them and foreign business associations. At the ministerial level, my colleagues and I organized 15 roundtable meetings last year, with the participation of over 400 foreign-funded enterprises and foreign business associations. Through face-to-face interactions, we gained insights into the suggestions and needs of these enterprises and continued to work towards resolving their issues. We have also heard from some foreign-funded enterprises that these activities not only address specific issues but also demonstrate China's determination to openness and its welcoming attitude toward foreign investment. They have also recognized the pragmatic and efficient approach of the Chinese government, which has further strengthened their confidence in the Chinese market and economy. Some foreign-funded enterprises have asked where the next "China" will be. However, they firmly believe that the "next China" will still be China. They will continue to choose China and establish their businesses here.

Building on last year's "Invest in China" campaign, we are continuing to develop the "Invest in China" brand this year. We have preliminary plans to organize over 20 investment promotion activities, both domestically and internationally. These activities will include a flagship event, the 2024 "Invest in China" Summit, as well as 10 overseas activities and 12 domestic activities. We will support local governments in hosting complementary events under the "Invest in China" brand, leveraging their regional advantages, resource endowments, and industrial characteristics. This coordinated approach will create a unified national investment promotion strategy. Many of you in the media have shown interest in or reported on the "Invest in China" campaign last year. We kindly request your continued coverage of our "Invest in China" brand series of activities this year. We hope you will provide comprehensive and in-depth reporting to enhance the impact of these events.

In addition to building the "Invest in China" brand, we will continue implementing the 24-point guidelines for attracting foreign investment introduced last year. Our efforts will focus on easing access to foreign investment, continuously optimizing the investment environment for foreign businesses, and effectively utilizing the Foreign-Funded Enterprises Roundtable Meetings. We will also maintain the system for gathering and responding to the concerns and needs of foreign-funded enterprises. The Foreign-Funded Enterprises Roundtable Meetings have now been institutionalized, with a monthly schedule in place. These meetings will cover different industries, regions, or countries, totaling 12 sessions. Our aim is to make these roundtable meetings a platform for open and practical communication and exchanges with foreign-funded enterprises.

Yesterday afternoon, I had a discussion with a Japanese business delegation visiting China. They all expressed their hope for a secure and reassuring environment to develop in China. We are also willing to ensure a secure and reassuring environment for all foreign-funded enterprises, including Japanese companies, to develop in China. In other words, we are committed to making efforts to realize the vision put forward by foreign-funded enterprises that the "next China" will still be China. Thank you all.

Hong Kong Bauhinia Magazine:

Chinese President Xi Jinping announced eight actions to promote the high-quality development of the Belt and Road Initiative at the third Belt and Road Forum for International Cooperation (BRF). May I ask what new considerations and measures the MOFCOM has in place to implement and deepen mutually beneficial cooperation with Belt and Road partner countries? Thank you.

Guo Tingting:

Thank you for your question. In last October, the third BRF was successfully held in Beijing. Chinese President Xi Jinping delivered an important speech and announced eight actions to promote the high-quality development of the Belt and Road Initiative. This has set the direction and provided fundamental guidance for the next "golden decade" of Belt and Road cooperation.

Over the past year, the MOFCOM, in collaboration with relevant parties, has made substantial efforts to promote new progress and achievements in Belt and Road economic and trade cooperation. This can be summarized in three main aspects:

First, the scale has steadily expanded. In 2023, the total merchandise trade volume between China and Belt and Road partner countries reached 19.5 trillion yuan, up 2.8%. This accounted for 46.6% of China's total foreign trade, an increase of 1.2 percentage points. Our non-financial direct investment in Belt and Road partner countries amounted to 224.09 billion yuan, growing by 28.4%. The turnover of contracted projects reached 930.5 billion yuan, showing a 9.8% increase.

Second, the quality has continuously improved. The turnover of contracted projects in energy conservation and environmental protection sectors has increased by 28.3% among BRI partner countries. A batch of signature projects and small-scale yet impactful programs have been successfully promoted, with the implementation of nearly 700 various assistance projects among these countries.

Third, cooperation has become more tight-knit. During the third BRF, we successfully held the thematic forum on trade connectivity, and launched the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development alongside more than 30 countries. Twenty-three memorandums of investment and cooperation in green, digital and marine sectors were signed last year. So far, we have set up trade connectivity working groups with 22 BRI partner countries and working groups on investment and cooperation with 55 BRI partner countries, and signed MoUs on e-commerce cooperation with 30 countries.

In the next steps, we will fully implement the guiding principles of President Xi Jinping's speeches and focus on carrying out eight major steps, adding more substance to BRI economic and trade cooperation. Next, we will deepen our work in four aspects.

First is to deepen trade and investment cooperation. In trade, we will actively expand the import of quality goods from BRI partner countries, enhancing the balanced development of trade. We will expand trade in services in a positive manner and better leverage the trade corridors such as the China-Europe Railway Express and the New International Land-Sea Trade Corridor. In investment, as Mr. Wang Wentao introduced earlier how to deliver a satisfactory performance in the work related to foreign investment, we will provide environment and services with higher quality for investment from BRI partner countries, sharing China's development opportunities with BRI partner countries. At the same time, we will encourage enterprises to develop new ways for outbound investments, including expanding the tri-party and multiparty market cooperation and improving and upgrading overseas economic and trade cooperation zones.

Second is to promote the construction of cooperation projects. We will promote both signature projects and "small-scale yet impactful" livelihood programs. We will enhance communication with BRI partner countries, and advance joint infrastructure projects in fields such as energy, transportation, and communication, building a multidimensional Belt and Road connectivity network. Additionally, we will focus on health, education, environment protection, and poverty reduction, and promote the completion of more projects benefiting local people, boosting the economic and social development of BRI partner countries.

Third is to explore new areas of cooperation. In green development, for example, we will continuously make ‘green' a defining feature of the Belt and Road Initiative, sign memorandums of investment cooperation on green development with more countries, and encourage enterprises to carry out further practical cooperation in fields such as green infrastructure, green energy, and green transportation. In the digital field, we will expand e-commerce cooperation with BRI partner countries, accelerate the construction of pilot zones for Silk Road e-commerce cooperation, and ensure the success of the third Global Digital Trade Expo .

Fourth is to deepen the implementation of cooperation achievements. We will strive to implement the outcomes of the third BRF and carry out and promote the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development . We will advance the construction of the pioneering zone for in-depth China-Africa trade and economic cooperation and build joint demonstration zones for innovative development of economy and trade with ASEAN countries. Furthermore, we will enter into or upgrade free trade agreements and investment protection treaties with more BRI partner countries, providing strengthened institutional safeguards for high-quality Belt and Road cooperation.

Thank you.

Market News International:

In 2024, does the Ministry of Commerce expect any progress in China's application to join the CPTPP? And what new measures will the Ministry of Commerce take this year to support China's application? Thank you. 

Wang Shouwen:

Thank you for your questions. We highly value China's application for CPTPP and have organized relevant departments and industries to carry out full, encompassing, and deep evaluations on all terms within CPTPP. We have also conducted comprehensive, in-depth, and abundant research on CPTPP's rules with regard to trade in goods and services and investment. We conclude that we are confident and able to meet CPTPP's high standards. Therefore, last year we prepared a document for the application, making introduction and interpretation on matters involving all obligations of the CPTPP from our position. We have presented the document to all CPTPP member countries.

You asked about our measures this year. First, we will proceed to conduct in-depth communication with CPTPP member countries at all levels, including in-depth communication in multilateral international conferences like G20 and APEC. Second, in 2023, following the decisions and deployment of the CPC Central Committee and the State Council, and aligning with high-standard international economic and trade rules, including those within CPTPP, we have released two important documents, including measures on promoting institutional opening-up in eligible pilot free trade zones and the free trade port in line with high-standard international economic and trade rules and an overall plan for promoting the high-standard institutional opening-up of China (Shanghai) Pilot Free Trade Zone in line with high-standard international economic and trade rules . Emphasizing these high international standards, we have formulated measures for domestic institutional opening-up for practices in China. If effective, we will replicate and apply these practices elsewhere. Therefore, we will enhance international communication and advance domestic pilot practices. I believe our conditions for joining CPTPP will be right this year.

Phoenix TV:

At last year's summit meeting in San Francisco, the Chinese and U.S. presidents fostered a future-oriented San Francisco vision . We have also noted that the MOFCOM and its U.S. counterpart established a multi-tiered communication and exchange mechanism last year. How does the MOFCOM view the trend of Sino-U.S. economic and trade relations for this year? What specific considerations are there for the economic and trade cooperation? Thank you.

Wang Wentao:

I'll answer your questions. This year marks the 45th anniversary of the establishment of diplomatic relations between China and the U.S. Looking back, bilateral trade has grown by more than 200 times during the past 45 years, with two-way investment stock exceeding $260 billion. According to our statistics, over 70,000 American enterprises have invested and operated in China. China and the U.S., being the world's largest developing and developed countries, respectively, are each other's important trade partners, with two-way trade and investments surging and the industrial and supply chains closely integrated. Sino-U.S. economic and trade collaboration has expanded from a singular focus to various sectors of the economy, contributing substantially to the economic and social development of both countries as well as the well-being of the two peoples. 

The Chinese and U.S. presidents met in San Francisco last November, fostering a future-oriented San Francisco vision . This has pointed to the direction for the development of bilateral economic and trade relations and greatly bolstered the confidence and expectations of the business communities in both countries in engaging in economic and trade cooperation. We always believe that the common interests of China and the U.S. in economic and trade sectors far outweigh our differences. Both parties should enhance dialogues and exchanges, work to help enterprises address various challenges encountered in practical economic and trade cooperation, and explore the potential of such collaboration. For example, many enterprises from the two countries, especially those from the U.S., have expressed that their main concerns relate to the current state of Sino-U.S. relations, worrying about the politicization of economic and trade issues. If "de-risking" is to be executed, this is the greatest risk, without doubt, as some American enterprises told us. They also expressed hope that I could share their concern with my American counterpart on an appropriate occasion. In addition, the enterprises are concerned about some other issues, including a substantial increase in operational costs due to additional tariffs and obstacles to market access due to two-way investment limitations. Sanctions have posed uncertainties to enterprises and their partners, highly elevating their compliance costs. These are all issues both sides need to discuss in the future and work to resolve. We are sincerely committed to driving the resolution of issues that concern businesses.

Next, China is willing to faithfully implement the San Francisco vision with the U.S. and fully leverage the communication and exchange mechanism developed by the MOFCOM and its U.S. counterpart and the export control information communication mechanism. The former mechanism includes ministerial talks, biannual, vice-ministerial conferences, and monthly negotiations at the director level. The two countries should maintain regular communication, properly manage differences, strengthen mutual understanding and trust, promote practical cooperation, and strive to create a favorable environment for economic and trade cooperation, especially the stability of enterprises. 

Thank you.

Shou Xiaoli:

Due to the limited time, the last question, please.

Southern Metropolis Daily:

China's cross-border e-commerce imports and exports maintained rapid growth in 2023. What were their overall characteristics? The Central Economic Work Conference emphasized the expansion of cross-border e-commerce exports. To this end, what specific measures will the MOFCOM take this year?

Wang Shouwen:

Thank you for your questions. General Secretary Xi Jinping underscored the promotion of the accelerated development of cross-border e-commerce and other new business forms and models. Cross-border e-commerce is one of the new growth drivers of foreign trade. Just now, Mr. Wang Wentao introduced that cross-border e-commerce played a crucial role in China's positive growth in foreign trade last year. China's cross-border e-commerce imports and exports recorded 2.38 trillion yuan last year, an increase of 15.6% and 15.4 percentage points higher than the nation's overall growth rate of imports and exports.

The entities of cross-border e-commerce are constantly expanding. Preliminary statistics indicate that there are now 645,000 enterprises across China with actual imports and export performance, among which more than 10,000 are cross-border e-commerce players. This represents a remarkable force. 

Our cross-border e-commerce ecosystem is continuously improving. Previously, well-known cross-border e-commerce platform companies were predominantly from the U.S. Now China also boasts powerful and renowned cross-border e-commerce platforms, with their app downloads ranking among the top globally. We also have mature platforms and overseas warehouses. By the end of last year, we had 1,800 overseas warehouses and 255 all-cargo airplanes, an increase of more than 200 and 32 from 2022, respectively.   

Additionally, we have made marked progress in brand building. For instance, one notable aspect of cross-border e-commerce lies in its direct engagement with foreign consumers, bypassing intermediaries and directly presenting the brands of Chinese export businesses. By the end of last year, the number of overseas trademarks we registered exceeded 30,000, up from 20,000 by the end of 2022. 

This year, we will continue to nurture cross-border e-commerce as a new growth driver for foreign trade. The measures are as follows: First, we will introduce "Measures for Expanding Cross-Border E-Commerce and Promoting the Development of Overseas Warehouses." Second, we will develop "cross-border e-commerce plus industrial belts," encourage traditional foreign trade enterprises to transition into cross-border e-commerce, support leading enterprises in driving the coordinated development of upstream and downstream supply chains, and incubate more startups based on the cross-border e-commerce industrial parks nationwide. Third, we will strengthen industry exchanges and training. Yesterday, we organized an on-site meeting for cross-border e-commerce overseas warehouses in Shenzhen, inviting representatives from government departments, the industry, and cross-border e-commerce enterprises for discussion. This year, we plan to intensify training efforts to train 100,000 individuals. Fourth, we will promote the issuance of the "Guidelines for Cross-Border E-Commerce Intellectual Property Protection." In the development of cross-border e-commerce, we aim to ensure the protection of intellectual property in all links of the first stage, the last stage, payment, marketing, and overseas warehousing. Ms. Guo just mentioned the Belt and Road cooperation. Cross-border e-commerce represents an important part of cooperation with Belt and Road partner countries. We will support international exchanges within cross-border e-commerce integrated pilot zones and pilot zones for Silk Road e-commerce cooperation . We believe that cross-border e-commerce will play a more significant role as a new growth driver for foreign trade. Thank you. 

Shou Xiaoli:

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

Translated and edited by Wang Yiming, Wang Qian, Zhang Rui, Wang Wei, Xu Kailin, Yang Xi, Yan Bin, Liu Caiyi, Li Huiru, Wang Ziteng, Wang Yanfang, Ma Yujia, Xu Xiaoxuan, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA)

Mr. Li Mingxiao, spokesperson of the NFRA and director general of the Policy Research Department of the NFRA 

Mr. Liu Zhiqing, spokesperson of the NFRA and a person in charge of the Statistics and Risk Surveillance Department of the NFRA

Mr. Guo Wuping, director general of the Financial Inclusion Department of the NFRA

Mr. Yin Jiang'ao, a person in charge of the Property and Casualty Insurance Supervision Department of the NFRA

Chairperson:

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

Date:

Jan. 25, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA), who will brief you on how the financial sector contributes to the high-quality development of economy and society, and take your questions. Also present today are Mr. Li Mingxiao, spokesperson of the NFRA and director general of the Policy Research Department of the NFRA; Mr. Liu Zhiqing, spokesperson of the NFRA and a person in charge of the Statistics and Risk Surveillance Department of the NFRA; Mr. Guo Wuping, director general of the Financial Inclusion Department of the NFRA; and Mr. Yin Jiang'ao, a person in charge of the Property and Casualty Insurance Supervision Department of the NFRA. 

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

Xiao Yuanqi:

Thank you, Ms. Xing. Ladies and gentlemen, greetings to you all. I'm very pleased to have this opportunity today to speak with you. My colleagues and I are happy to answer your questions, and we'd like to express our gratitude to you for your great support and care for the financial regulation work and the development of the financial sector. Now, I'll give a brief introduction. 

The NFRA adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and comprehensively implements the guiding principles of the 20th National Congress of the Communist Party of China (CPC) and the second plenary session of the 20th CPC Central Committee. We have thoroughly studied, taken on board and executed the guiding principles of the Central Financial Work Conference, the Central Economic Work Conference, and the important speech delivered by General Secretary Xi Jinping at a study session on promoting high-quality development of finance, attended by principal officials at the provincial and ministerial level at the Party School of the CPC Central Committee (National Academy of Governance). Following the principle of seeking progress while maintaining stability, promoting stability through progress and establishing the new before abolishing the old, we fully and faithfully apply the new development philosophy on all fronts and accelerate efforts to foster a new pattern of development, in a bid to vigorously promote high-quality economic and financial development.  

We adhere to the CPC Central Committee's centralized, unified leadership over the financial work. We will ensure that the financial work maintains political integrity and people-centeredness, and constantly deepen reform of the financial management system and the exercise of full and rigorous Party self-governance. By doing so, we aim to ensure that we will advance the financial work in the right direction and effectively implement the major decisions made by the CPC Central Committee regarding this sector. 

We abide by the fundamental purpose of the financial sector supporting the real economy. We will continuously satisfy the financial needs in economic and social development as well as the public's ever-growing demands for finance, and work to safeguard the legitimate rights and interests of financial consumers. In addition, we will actively provide support to expand effective demands and investments that generate returns, guarantee the financing needs of major projects and those for the people's well-being, and contribute to integrated urban-rural development and coordinated regional development. We will increase support for the manufacturing industry, emerging strategic industries, and science and innovation sectors. We will improve the green financial system, and support the building of a green, low-carbon development hub. We will also boost the integrated development of the digital economy and real economy. Furthermore, we will bolster financial supply to areas important to people's lives and weak links, vigorously promote inclusive finance, improve the quality of services for private enterprises, micro and small enterprises, and new urban residents (permanent residents without local household registrations), and enhance financial services to advance rural revitalization and build up China's strength in agriculture. We will accelerate the development of pension finance, continuously further the third-pillar pension plans, and fully back the development of the health industry and silver economy. We will enhance comprehensive financial services for foreign trade, and support and consolidate the overall stability of foreign investment and trade. In addition, we will expand and enrich financial instruments to meet people's multi-tiered and diverse financial needs.

We always take preventing and controlling financial risks as a constant pursuit. We will prudently guard against and defuse the financial risks of key institutions and areas, and ensure that no systemic risks arise. Following the market-oriented, law-based principle, and grasping the right timing, extent and effectiveness, we will promote small and medium-sized financial institutions in defusing their risks through reform in an orderly manner. We will unswervingly consolidate and develop the public sector and unswervingly encourage, support and guide the development of the non-public sector. We will equally meet the reasonable financing needs of real estate enterprises of different ownerships, and energetically advocate the construction of the "three major projects," including establishing public infrastructure for both normal and emergency use and renovating urban villages. Additionally, we will actively work to defuse risks of outstanding local government debt and strictly control new debt. We will conduct supervision in accordance with laws and regulations, strengthen oversight on institutions, behaviors and functions as well as carry out penetrating and continuous oversight, and promote the building of a financial supervision system and mechanism with full coverage and with no blind spots left, so as to render financial regulation more effective. 

We always promote high-quality development of finance. We will guide financial institutions to optimize their business structures and growth models, so that they can realize the transformation from extensive expansion driven by quantity to refined management focused on quality, and achieve high-quality, sustainable development. We will deepen financial supply-side structural reform, constantly consolidate the corporate governance of financial institutions, steadily improve their operation and management capabilities, and continue to establish and improve the modern financial enterprise system with Chinese characteristics. In addition, we will steadily advance high-standard institutional opening up in the financial sector, further facilitate cross-border investment and financing, attract more foreign financial institutions and long-term capital to operate and expand business in China, and encourage Chinese and foreign financial institutions to enhance cooperation for common, mutually beneficial development. 

Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the NFRA will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, fully strengthen financial regulation, prevent and defuse financial risks, and ensure that no systemic risks arise. We will also focus on supporting the "five priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance, so as to provide strong financial support for the high-quality development of economy and society as well as for the realization of Chinese modernization and the great rejuvenation of the Chinese nation. 

That is all for my introduction. Now, my colleagues and I are ready to take your questions. 

Xing Huina:

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

ThePaper.cn:

The Central Economic Work Conference put forward actively and prudently defusing real estate risks and equally meeting the reasonable financing needs of real estate enterprises of different ownerships. What plans does the NFRA have for the real estate sector at present and what plans will be taken going forward? Thank you.

Xiao Yuanqi:

Thank you very much for your questions, which are of great concern and importance to the public and the NFRA. Recently, we have actively assisted industrial authorities and local governments to adopt a comprehensive approach on both supply and demand sides amid our efforts to step up financial support. The Ministry of Housing and Urban-Rural Development (MOHURD), the People's Bank of China (PBC), and the NFRA introduced the policy to recognize households with mortgage records but no local property ownership as first-time homebuyers, making them eligible for favorable down payments and mortgage rates. The PBC and the NFRA jointly released a set of 16-point financial measures to support the stable and sound development of the real estate market. They also studied and established a dynamic mechanism to adjust mortgage rates for first-time homebuyers, lowered the bottom line of mortgage rates for second-time homebuyers, and encouraged banks to lower the interest rates of outstanding loans for first-time homebuyers. All these policies and measures have delivered positive results in enhancing financial services in the real estate sector, satisfying the legitimate financing needs from the real estate market, and promoting the stable and sound development of the real estate market.

This January, the MOHURD and the NFRA jointly released a notice on establishing a financing coordination mechanism for the real estate sector at the city level. The notice urged cities at and above the prefecture level to set up a financing coordination mechanism for the real estate sector, establish a platform for facilitating communication between governments, banks, and enterprises, and promote coordination between real estate companies and financial institutions. 

We all know that the real estate sector entails a long industrial chain and covers a wide range of areas, thus playing an important role in the economy and people's lives. Therefore, the financial sector must endeavor to fulfill its responsibility to give strong support to the real estate sector. At present, banks finance the real estate sector mainly by the following means: First, by property developer loans and individual housing loans, also known as mortgage loans. To date, outstanding developer loans and individual housing loans stood at 12.3 trillion yuan ($1.72 trillion) and 38.3 trillion yuan, respectively. In 2023 alone, 3 trillion yuan in developer loans and 6.4 trillion yuan in housing mortgage loans were issued. That is to say, together, the banking sector provided nearly 10 trillion yuan in loans – a remarkable amount – to the real estate sector. Second, via banks' investment in bonds issued by real estate companies. At the end of last year, outstanding property developer bonds held by banks totaled 427.5 billion yuan. In 2023, banks invested heavily in such bonds, increasing 15% from a year earlier. In addition, banks' merger and acquisition loans and extensions for outstanding loans to real estate companies topped 1 trillion yuan in 2023.

We have actively cooperated with the MOHURD and the PBC, and provided financial support to ensure that overdue housing projects were completed and delivered. By the end of 2023, most of the 350 billion yuan worth of lending set aside for this special purpose had been delivered to such projects. Commercial banks have also provided funds to ensure the construction and delivery of presold projects.

The NFRA will guide financial institutions to make full use of existing support policies, continue to provide better financial services for the real estate market, maintain the stability of credit lines to the sector, meet legitimate financing needs, and make their contribution to promoting the stable and sound development of the real estate market. In the near future, we will focus on the following major work: 

First, we will accelerate the implementation of the financing coordination mechanism for the real estate sector at the city level to ensure it will produce effects. Under the mechanism led by municipal governments, a list of projects eligible for financing assistance will be provided on a just and fair footing to financial institutions within their respective administrative regions. All these are elucidated in the notice released by the NFRA and the MOHURD. Based on assessments of property projects using market-oriented and legal principles, financial institutions are expected to proactively meet the legitimate financing needs of projects that are making smooth progress and have sufficient collateral, reasonable liabilities, and guaranteed repayment sources. For projects that are experiencing temporary difficulties but maintaining a basic fund balance, financial institutions are expected to provide stronger support by extending outstanding loans, rescheduling repayments, and issuing additional loans rather than making hasty withdrawals, suspension, and withholding of loans. We will also meet with banks in the near future to urge them to take timely action so that with joint efforts from municipal governments and the housing and urban-rural development authorities, they will make good use of independent policy tools according to each city's own conditions to better satisfy the legitimate financing needs of real estate projects.

Second, we will urge financial institutions to effectively meet the requirements in managing operating property loans. Last night, the NFRA and the PBC jointly released a notice on managing operating property loans. The notice, which is quite targeted and made after conducting preliminary investigations and soliciting opinions and suggestions from the relevant sectors, financial institutions, and relevant authorities, allows banks to provide operating property loans for property developers. Such loans, provided by national banks on the basis of controllable risks and business sustainability, are permitted to be used by rule-following and promising real estate companies to repay their outstanding loans and bonds by the end of this year.

Third, we will continue to provide quality housing loan services for customers. According to each city's own conditions, we will support local municipal governments and housing and urban-rural development authorities to further improve housing loan policies involving down payments and mortgage rates. We will also guide and urge banks to provide better financing services to meet people's demand for buying their first homes or improving their housing situation.

Fourth, we will guide and require banks and other financial institutions to strengthen their support for the "three major projects" that include the construction of public infrastructure used for daily life and emergency situations and the rebuilding of "villages" inside cities. Meanwhile, solid progress is expected as soon as possible. Thank you.

CMG:

I would like to ask, how did the banking and insurance industries perform overall in 2023, especially in the aspects of risk and stability? And what predictions does the NFRA have regarding their development prospects this year? Thank you.

Liu Zhiqing:

Good afternoon. Thank you for your questions. Here, I will give you a brief introduction about the stable operation and overall performance in the banking and insurance sectors of last year. The total assets and main business in these two industries grew steadily. As of the end of 2023, the assets of financial institutions in China's banking sector grew 9.9% year on year to 417.3 trillion yuan. China's yuan-denominated loans rose by 22.75 trillion yuan, and the year-on-year increase was 1.31 trillion yuan more than registered in the previous year. The total debt stood at 383.1 trillion yuan, up 10.1% year on year. New yuan deposits hit 25.74 trillion yuan, down by 510.1 billion yuan from the previous year. By the end of last year, insurance company assets increased 10.4% year on year to 29.96 trillion yuan. Approximately 25.4 trillion yuan in financing support was provided for economic and social development through bonds, stocks, equity investment, and other measures, increasing 2.9 trillion yuan compared with the beginning of last year. Claim and benefit payments reached 1.89 trillion yuan, up 21.9% year on year. Agricultural insurance provided 4.98 trillion yuan to guarantee reductions in agricultural development risks.

Asset quality remained stable generally. At the end of 2023, the outstanding balance of NPLs of financial institutions in China's banking sector was 3.95 trillion yuan, up by 149.5 billion yuan compared with the beginning of last year, according to preliminary statistics. The NPL ratio was 1.62%, and the ratio of loans overdue more than 90 days to NPLs stood at 84.2%, remaining at a relatively low level. Last year, China's banking sector disposed of 3 trillion yuan in non-performing assets.

The ability to defuse risks has been strengthened. According to preliminary statistics, commercial banks had accumulated net profits of 2.38 trillion yuan in 2023, up 3.24% year on year. The balance of loan loss provisions reached 476.8 billion yuan, and the provision coverage ratio was 205.1%, staying at a relatively high level. The capital adequacy ratio of commercial banks reached 15.1%, and the tier 1 CAR was 10.5%. Among those, the capital adequacy ratio of large commercial banks reached 17.6%, and the tier 1 CAR was 11.7%. The leverage ratio of commercial banks was 6.8%, remaining stable. China's insurance sector demonstrated adequate solvency. As of the end of 2023, the comprehensive solvency ratio of the insurance sector was 196.5%, and the core solvency ratio was 127.8%. Among those, the comprehensive solvency ratio and the core solvency ratio of property insurance companies were 236.5% and 204.3%, respectively. The comprehensive solvency ratio and the core solvency ratio of life insurance companies were 186.2% and 110.3%, respectively. 

The liquidity of Chinese banks remained sound. At the end of 2023, the liquidity coverage ratio of banks with total assets no less than 200 billion yuan was 151.6%, with a net stable funding ratio of 125.5%. The high-quality liquid assets adequacy ratio of banks with assets below 200 billion yuan was 269.4%. The liquidity indicators of all kinds of institutions remained at a relatively high level. The ratio of various deposits to total liabilities reached 69.2% due to banks' steady capital sources. In 2023, the net cash flow from insurance companies' operating activities hit 1.71 trillion yuan.

Looking ahead to 2024, the fundamentals of China's economy remain unchanged, and they will maintain long-term growth. Thanks to an increasingly improved industrial foundation, factor endowments, and innovation capacity, new driving forces will be formed in new urbanization, green transformation, and other fields, which will inject strong impetus into the banking and insurance industries and provide more opportunities rather than challenges. The banking industry is expected to maintain steady growth momentum, with institutional and structural regimes becoming more reasonable and financial resource allocation also improving. In the past three years, the average growth rate of total assets in China's insurance industry remained at 8.7%, showing a sound momentum. The industry contains huge potential and strong capability to serve economic and social development, which will play more effective roles as both an economic shock absorber and a social stabilizer. Thank you.

Chengdu.cn:

How about the growth rate of loans in the manufacturing industry and for new and high-tech enterprises? What kinds of supportive measures did the NFRA take? What else will you do to encourage banking and insurance institutions to provide more financial resources to sci-tech innovation and advanced manufacturing? Thank you.

Li Mingxiao:

The NFRA has adhered to the fundamental purpose that finance is to serve the real economy. Focusing on key areas like sci-tech innovation and advanced manufacturing, we have continuously improved financial supervision policies, encouraged financial institutions to increase financial support and advance financial services, to practically promote high-quality economic and social development.

In the aspect of sci-tech innovation, we issued a circular to improve full life-cycle financial services for tech companies, allocating more financial resources to advance sci-tech innovation, as well as providing differential and various financial services to meet the needs of tech firms at different development stages. We also encourage banking institutions to diversify models for IP pledge financing services and the means of insurance to offer protection so as to attract more tech companies to apply for their initial loans with banks. We also encourage banking and insurance institutions to set up branches in places where science and technology resources are concentrated, with a focus on providing better financial services for tech firms. We have improved the mechanism applied for loans to tech companies which ensures that those who have fulfilled their duties are not held accountable. Tolerance of non-performing loans to small- and micro-technology enterprises can be relaxed by no more than 3 percentage points compared with the other loans. By the end of 2023, the balance of loans granted to new and high-tech enterprises registered an increase of 20.2% year on year. Among those, medium- and long-term loans and credit loans both accounted for more than 40%.

In the aspect of advanced manufacturing, we have improved key monitoring and daily supervision and worked together with relevant departments to jointly issue a series of policies, such as guidelines on quality projects in the manufacturing industry and guidelines on accelerating the transformation and upgrading of traditional manufacturing industry. In doing so, the policy environment of high-quality development in the manufacturing sector has been optimized, and the efforts to increase medium- and long-term loans for manufacturing companies have been made an institutionalized and regular practice. We have also guided financial institutions to give priority to supporting high-quality development in manufacturing through themed conferences and special training, which provided concrete support for the manufacturing sector to move toward higher-end, smarter, and greener production. As of the end of 2023, the balance of loans granted to manufacturing companies increased 17.1% year on year, of which the balance of medium- and long-term loans grew 29.1% year on year.

Next, the NFRA will fully implement the decisions and plans of the CPC Central Committee and the State Council, make all-out efforts to promote techfin, and promote the building of a multilevel techfin service system. Under the premise of keeping risks under control, we will work with relevant departments to steadily advance the construction of financial reform pilot zones for sci-tech innovations, intensify financial support for the manufacturing industry, and guide financial institutions to fully implement all measures and requirements. Efforts will be made to diversify financial products and services, strengthen the support for sci-tech innovation and advanced manufacturing, and foster new productive forces, thereby providing strong financial support for accelerating the establishment of a modern industrial system. Thank you!

Market News International:

How should banks optimize their credit structure and revitalize existing loans? And is there currently arbitrage trading in the banking system, and if so, what are the policies needed to address these issues? Thank you.

Liu Zhiqing:

Thank you for your questions. Over previous years, the credit structure of China's banking industry has continued to optimize, and financial support for the real economy has become more targeted and robust. Financial resources have been delivered in more key areas and weak links, such as sci-tech innovation, advanced manufacturing, green development, inclusive finance support for small and micro-businesses, and infrastructure. Our focus is on promoting high-quality economic development. My colleagues have talked about the statistics on how the financial sector supports the real economy. Through the efforts of financial regulatory authorities, banking institutions have increased their disposal and recovery of non-performing assets over the years. Since 2017, a total of 18 trillion yuan of non-performing bank assets have been disposed of. A significant amount of financial resources that were occupied were put into more efficient use and allocated to sectors that are more promising and in need. In terms of the use of funds, the vast majority of the funds are used for the real economy to meet the financing needs of enterprises, residents, and other market entities, thereby supporting the recovery of the economy and boosting effective demand.

Going forward, the NFRA will continue to guide and support the banking institutions in increasing credit support and optimizing the structure. We will focus on five key areas: techfin, green finance, inclusive finance, elderly care finance, and digital finance. Our goal is to remove obstacles to the flow of funds into the real economy and increase the efficiency of capital use so that the real economy can be better served by financial resources. Thank you.

China Banking and Insurance News:

The central financial work conference pointed out that economic and financial risks remain relatively high and require relevant departments to timely handle the risks of small and medium-sized financial institutions. What measures will the NFRA take in 2024 to address such potential risks? Thank you.

Xiao Yuanqi:

Thank you for your question, which many of you may be concerned about. I'll be happy to answer it. First, I want to share with you some statistics. Currently, there are 3,912 small and medium-sized banks in China. These are mainly city commercial banks, rural credit cooperatives, and rural banks, with total assets of 110 trillion yuan, accounting for 28% of the total assets of the banking industry. For these 3,912 banks, the outstanding agricultural loans and small and micro enterprise loans stood at 21 trillion yuan and 29 trillion yuan respectively, accounting for 38% and 44% of that of the entire banking industry. These small and medium-sized banks play a vital role in supporting private, small, and micro businesses, as well as rural development and revitalization. The operations of China's small and medium-sized banks are generally stable, with stable asset quality, strong capital strength, and good performance in terms of capital adequacy ratio, provision coverage ratio, and asset quality. These are all reasonable and healthy indicators of their operation and regulation. However, a small number of small and medium-sized banks have accumulated some problems and risks in the past, and the risks of some small and medium-sized banks remain relatively high. Compared to the whole banking industry or the small and medium-sized banking system, these high-risk banks account for a small proportion in terms of number, assets, and non-performing assets. For these small and medium-sized banks with relatively high risks, we will conduct strict regulations to gradually reduce their risks. Additionally, we will work with local party committees, governments, and relative departments to roll out customized plans and measures for deepening reform and addressing risks. In general, we are using multiple methods to resolve and dispose of the existing risks in a prudent and orderly way, as well as controlling the new risks in a strict manner. As a result, a large number of such banks have reduced their risks and achieved sustainable operations. Our measures to deepen reform and address risks are paying off.

The financial regulatory authorities will fully implement the decisions and plans of the CPC Central Committee and the State Council, work with local party committees, governments, and relevant departments to push forward reform, prevent and control risks of small and medium-sized banks, and improve their management. Our work will focus on the following aspects:

First, strengthen corporate governance. We will integrate party leadership with company management, optimize the equity structure, standardize the duties of corporate governance entities, and establish a balanced and efficient corporate governance mechanism. In particular, we will make efforts to guard against manipulation by major shareholders and insiders and prevent the transfer of interests and illegal and irregular transactions.

Second, we will work with local party committees and governments to select and appoint qualified personnel for key positions in local small and medium-sized banks according to the standards of political strength, competence, and discipline. We should also strengthen the construction of the executive team and the talent pool. Efforts will be made to require large banks and national joint-stock banks, as well as some leading small and medium-sized banks, to transfer talents and technology to other local small and medium-sized banks, including the core customer system and the risk control system. This work has already begun, and the results are significant. For example, China Merchants Bank has provided great support to Liaoshen Bank in terms of risk control, talent, and information systems. We will enhance the behavior management of executives and key personnel, improve their political integrity, legal awareness, and professional competence, and ensure that they operate banks in line with laws and regulations.

Third, category-based policies will be implemented to deepen reforms. For the system of rural credit cooperatives, the focus is on transforming the functional positioning of provincial rural credit unions and standardizing their performance. The "one province, one policy" initiative has been launched to implement reforms in rural credit cooperatives, achieving phased results. Some reform plans for rural credit cooperatives have been approved by the State Council, some are actively being organized and implemented, and some have already started operations. We have conducted a phased assessment, achieving the expected results and demonstrating the effect. We have adopted a combination of measures to advance reforms in  city commercial banks. The "one bank, one policy" initiative has also been launched. The overall goal is to fundamentally enhance small- and medium-sized banks' long-term sustainable operation and development by further reforming the systems and mechanisms. This will better serve the real economy and numerous households and enhance risk prevention and control.

Fourth, we will urge small- and medium-sized banks to focus on their main businesses. Small- and medium-sized banks must firmly adhere to their market positioning of serving the local community, small and micro businesses, agriculture, rural areas and farmers, contributing to rural revitalization. They should base themselves locally, become more refined, and deeply cultivate their local markets. Small- and medium-sized banks have a natural advantage in being familiar with the local environment. Small- and medium-sized banks should have the will and ability to resist the temptation of disregarding risks and recklessly pursuing rapid and complete development. Small- and medium-sized banks should carry out differentiated and characteristic operation and give full play to their unique advantages. Small- and medium-sized banks have many advantages, and they are very familiar with customers in the local area. This advantage must be fully utilized, and the future development prospects of small- and medium-sized banks are quite broad.

Fifth, we will adhere to results-oriented and problem-oriented approaches, seeking stability while making progress, addressing both the symptoms and root causes, and comprehensively strengthening supervision to prevent and resolve risks. We will strictly regulate the entry standards of small- and medium-sized banks, strictly regulate the access qualifications of shareholders and executives, and thoroughly examine the sources of capital, utilizing capital's role in controlling leverage, allocating resources, and absorbing losses. Capital supervision is crucial and a key focus of our regulatory efforts. We will implement early identification, warning, mitigation, and disposal of risks, adhering to the "four earlies" approach and the principle of early prevention and control of small risks. We will establish a robust corrective mechanism with stringent constraints. Efforts will be made to prevent and control risks in small- and medium-sized banks, as well as in larger institutions. Efforts should be directed towards preventing and controlling existing risks, and the most important is controlling new risks. We will focus on the "key individuals," "key events," and "key behaviors" associated with financial risks, strictly enforce the law, take an unequivocal stance, and resolutely crack down on financial corruption and illegal activities. It is necessary to stimulate and enhance the endogenous mechanism of financial institutions to prevent and control risks, and further strengthen and solidify it, so as to prevent, control and manage risks fundamentally and at their source. We will actively promote a financial culture with Chinese characteristics and resolutely follow the path of developing finance with Chinese characteristics. Thank you.

China Economic Information Service: 

We know that in recent years, China has continuously promoted the specialized development of old-age financial institutions, and old-age financial reforms are steadily advancing. Could you please introduce the current situation of this work and the arrangements for the next steps? Thank you.

Yin Jiang'ao: 

This question is closely related to each of us. The NFRA adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, continuously deepens the reform of commercial old-age finance, and has achieved certain results in guiding old-age insurance institutions to focus on the transformation and development of their main businesses, and serving the construction of China's multi-level and multi-pillar old-age insurance system.

First, we have vigorously developed commercial insurance annuities. We support insurance institutions in leveraging their advantages in long-term, stable investment and old-age risk management to continuously expand the supply of commercial insurance annuities. Currently, the accumulated scale of pension funds has exceeded 6 trillion yuan, covering nearly 100 million people.

Second, we have initiated a pilot program for old-age wealth management products. These products adopt asset allocation strategies that meet old-age needs, realizing the long-term and stable appreciation of investors' pension benefits. Since the pilot program started in September 2021, 11 wealth-management companies have issued 51 products in 10 pilot cities, attracting approximately 470,000 subscribers and reaching a scale of more than 100 billion yuan.

Third, we have promoted the development of specific old-age deposit pilots. These deposit programs are piloted by the four banks — Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank — in five cities. The terms are divided into four categories: five years, 10 years, 15 years, and 20 years, with interest rates slightly higher than those of five-year deposits at large banks. Since the pilot programs began in November 2022, approximately 200,000 depositors have participated, and the total balance is nearing 40 billion yuan.

Fourth, we have initiated a pilot program for commercial pension businesses. Commercial pension is offered by old-age insurance companies, encompassing old-age planning, account management, and financial products to deliver comprehensive life-cycle pension fund management services to consumers. Since the pilot program commenced in January 2023 in 10 provinces (municipalities), more than 590,000 accounts have been opened.

Fifth, we have promoted the regular operation of exclusive, commercial, old-age insurance. This product offers universal old-age insurance with simplified insurance process, flexible payments, and stable returns. It ensures annuity payments are received after reaching the age of 60. The pilot program began in June 2021 and was officially launched in October 2023. As of the end of the previous year, the number of policies stood at approximately 740,000, with the accumulated old-age reserve exceeding 10.6 billion yuan.

Sixth, we have actively fostered the growth of the personal pension system. We provide guidance to commercial banks, wealth-management companies, insurance firms, and other entities to actively participate in personal pension offerings. We also encourage the establishment of a comprehensive industry information platform and the creation of product display areas to simplify consumer decision-making.

Seventh, we have consistently advanced the professional development of old-age insurance companies. In November 2023, the interim measures for the supervision and management of pension insurance companies were issued, laying out precise requirements for corporate governance, business management, and the enhancement of risk prevention and control within pension insurance companies.

Next, we will thoroughly study and implement the guiding principles of the Central Financial Work Conference, focusing on the critical task of developing financial services for elderly care and implementing policies related to the silver economy. We will encourage insurance institutions to leverage their advantages in offering insurance protection to vigorously develop commercial insurance annuities. We will use exclusive commercial pension insurance as a key approach to actively meet the pension security needs of people in new industries and business models. We will further optimize the supply of financial products related to private pensions and improve the related regulatory rules in accordance with the characteristics of private pensions. We will promptly summarize experiences and continuously promote the pilot of commercial pension finance. We will also steadily push forward the transformation and development of pension insurance companies, guiding them to leverage their professional advantages and better participate in and serve the construction of China's multi-tiered and multi-pillar old-age insurance system. Thank you!

Yicai: 

I would like to ask, how will the NFRA optimize the structure of inclusive loans to small- and micro-businesses and loans to agriculture, rural areas and farmers in the future in order to promote a stable reduction in comprehensive financing costs? Additionally, how will the administration comprehensively utilize inclusive credit and insurance to support the development of enterprises that use special and sophisticated technologies to produce novel and unique products? Thank you.

Guo Wuping:

Thank you. The development of inclusive finance was proposed at the third plenary session of the 18th Central Committee of the Communist Party of China in 2013. After more than a decade of development, inclusive finance in China has made significant progress. The NFRA has continuously strengthened regulatory guidance. Most banks have established special departments for inclusive finance, increased the proportion of inclusive finance in their internal assessments, and continuously improved their service quality and efficiency in key areas such as small- and micro-businesses, agriculture, rural areas, and farmers to serve the real economy. As of the end of last year, outstanding loans to small- and micro-businesses reached 29.06 trillion yuan, a year-on-year increase of 23.27%. This rate is 13.13 percentage points higher than the average growth rate of all loans. Additionally, the interest rate has been decreasing annually, with the average interest rate for newly issued inclusive loans to small- and micro-businesses last year being 4.78%, a year-on-year decrease of 0.47 percentage point. Inclusive loans for agriculture, rural areas, and farmers reached 12.59 trillion yuan by the end of last year, a year-on-year increase of 20.34%, which is a relatively fast growth rate, exceeding the average growth rate of all loans by 10.2 percentage points. The interest rate also recorded a year-on-year decrease of 0.87 percentage point. These are manifestations of the inclusive financial system with Chinese characteristics.

This year, we will follow the decisions and deployments of the Central Financial Work Conference, implement the requirements regarding inclusive finance, and integrate loans to small- and micro-businesses, loans to agriculture-related entities, and loans to private enterprises to form a unified regulatory approach for inclusive credit. We will carry out assessments, evaluations, and data disclosure and, at the same time, clarify regulatory focuses. There are several aspects to this:

First, we will require banks and other financial institutions to focus on the capital needs of small- and micro-businesses and agriculture-related entities, reasonably determine the pace of credit issuance, and strive to ensure that the growth rate of inclusive loans in these two areas is not lower than the average growth rate of all loans.

Second, we will actively develop first-time and follow-up loans, ensuring that follow-up loans continue wherever possible. We encourage medium- and long-term loans that match the production and operation cycle, and promote revolving loans that can be borrowed and repaid at any time to meet the diversified financing needs of market entities.

Third, we will gradually increase the proportion of collateral-free loans for small- and micro-businesses, which reached 19.19% at the end of last year, a year-on-year increase of 2.29 percentage points. This year, we will continue to encourage banks to relax collateral requirements and increase the issuance of credit loans.

Fourth, we will strengthen regulatory oversight of financial institutions in areas such as product sales, information disclosure and fee pricing to protect private enterprises' legitimate right to autonomous choice and fair trade. At the same time, we will increase credit support for private small- and micro-businesses, ensuring that their loan growth rate is not lower than the growth rate of all loans. We will also enhance credit support for small- and micro-business owners to raise the proportion of loans and the number of accounts for small- and micro-businesses. Additionally, we will reasonably increase the loan-to-deposit ratio in counties, allocate a certain proportion of new county deposits for local loans, and provide comprehensive financial services in counties to promote balanced development between urban and rural areas and contribute to common prosperity.

For enterprises that use special and sophisticated technologies to produce novel and unique products, we will encourage banks, in terms of inclusive credit, to consider the characteristics of these enterprises. Banks are advised to apply big data, artificial intelligence, and other technologies to support credit decisions. We will actively use information about these enterprises' technological research and development, patent innovation, intellectual property, and so on, to develop exclusive financial products for them and expand the scale of credit. Additionally, inclusive insurance can be utilized. We will encourage insurance companies to strengthen insurance services throughout the entire lifecycle of these innovative SMEs. For example, we will promote distinctive insurance products such as property insurance for research and development equipment, product liability insurance, product quality assurance insurance, patent insurance, export credit insurance, and insurance for the first set of major technical equipment. These products are designed to help enterprises mitigate disasters and losses, expand foreign trade, and pursue sci-tech innovation.

We will uphold a people-centered approach in financial work, bear in mind its political significance, make more efforts in inclusive finance, and strive to build China's characteristic inclusive financial system that is accessible, beneficial, and affordable in order to better serve the real economy and the people. Thank you!

China News Service: 

In promoting green finance, what specific implementation plans and incentive measures does China have to promote green and low-carbon transformation and the development of the environmental protection industry?

Li Mingxiao: 

Thank you for your question. We have always placed great importance on green finance, and China's green finance is at the global forefront. In recent years, the NFRA has adhered to the guidance of Xi Jinping Thought on Ecological Civilization. It has encouraged the banking and insurance systems to increase financial support for green development, continuously improving the service quality and efficiency of green finance, and thus promoting the green transition of economic and social development. We have carried out work in the following five aspects:

First, we have strengthened regulatory guidance. We have promoted the implementation of the "Guidelines for Green Finance in the Banking and Insurance Industries." We have enhanced tracking, monitoring, and supervision, organized symposiums on green finance services, and guided banking and insurance institutions to develop green finance from a strategic height. This includes increasing support for green, low-carbon, and circular economies, preventing environmental, social, and governance risks, and improving their own environmental, social, and governance performances. We have also worked with relevant departments to promote the construction of a green finance standard system. We will research and improve green finance support measures in the fields of industry, construction, and ecological and environmental protection, guide localities in exploring green finance practices, and improve various supporting policy measures. 

Second, we improved statistical monitoring. We regularly organized banks to tally green financing data, used all sorts of funding to offer support, and guided banks' credit funds to support the development of green and low-carbon industries in a market-oriented and law-based manner. As of the end of 2023, 21 major banks' green credit balance reached 27.2 trillion yuan, up 31.7% year on year. We improved the statistical standards for green insurance and pushed for insurers to enhance risk protection in the fields of environmental resource protection and social governance, green industries, and green living consumption. In 2023, green insurance premiums reached 229.7 billion yuan, with insurance indemnities reaching 121.46 billion yuan. 

Third, we optimized performance appraisals. We organized 21 major banks to conduct green credit self-evaluation and urged self-examination and prompt rectification in accordance with relevant supervision mechanisms and criteria. We guided the China Banking Association to conduct green banking reviews. Green financing has been seen as an important reference for the regular supervisions, on-site inspections, and corporate governance requirements of banks and insurers, enhancing the incentives and constraints to promote the development of green financing. 

Fourth, we enriched products and services. We encouraged banks and insurers to fulfill their duties and develop climate-friendly green financing products, lawfully, with controllable risks and business sustainability, and meet green and low-carbon projects' financing and risk management requirements so as to provide diversified and differentiated financing services. We broadened the coverage of green insurance, developed green trust funds and green leasing, and expanded green consumption credit services in an orderly manner. We steered insurance funds to support green projects' investment and construction. 

Fifth, we strengthened risk management. We set up information-sharing mechanisms with other departments in charge of these industries to promote regulatory coordination. We urged banks and insurers to establish and improve green financing management systems and include environment, society, and governance-related requirements into the comprehensive risk management system. We strictly controlled new financing projects related to carbon emissions and firmly curbed the unbridled development of projects with high energy consumption, high emissions, and low quality, so as to reduce carbon emissions and ensure energy safety and industrial and supply chain safety. We guided banks and insurers to explore and address climate-change related financial risks and enhance risk management and information disclosure. 

In the next step, the NFRA will firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, fully advance the grand strategy of promoting green financing, improve the policy system for developing green financing, optimize financial products and services, and guide banking and insurance sectors to provide financial services and contribute to achieving peak carbon emissions and carbon neutrality and building a beautiful China. Thank you.  

Zhinews of Shenzhen Satellite TV:

Digital financing has been developing rapidly. What new plans and strategies have been formulated to strengthen digital financing regulation and risk control, as well as promote innovation in financial technology? Thank you.

Liu Zhiqing:

Thank you for your question. People are concerned with the progress made in digital financing as well as related regulation. At present, digital technologies, such as internet technology, big data, cloud computing, artificial intelligence, and blockchain, are developing rapidly and transforming our way of living and production. The central financial work conference proposed five initiatives, including one targeting digital financing. We are paying great attention to this sector and have adopted a series of measures to promote digital financing and to steer the digital transformation of the financial sector. For example, we encourage banks and insurers to continue to enrich digital financing products and services in the important fields involving small and micro-sized businesses, green development, agriculture, rural areas, and rural residents, sci-tech innovation, and global trade. We continue to follow up on the implementation of the previously released guidelines on the digital transformation of banking and insurance sectors, advance the objectives and tasks of digital transformation of financing step by step, and promote exchanges of digital transformation experiences between institutions. We support large institutions to fully mobilize internal resources, offer risk control tools and technologies to small and medium-sized financial institutions under market-oriented and law-based principles, and help small and medium-sized financial institutions enhance risk management. Mr. Xiao just mentioned several examples of cooperation. Through collective efforts of financial institutions and supervisory departments, the financial sector's digital transformation advanced quickly, offering products and services with better quality and effect to benefit the real economy. 

We will continue to strengthen supervision and guidance and promote digital financing with diversified measures. We will guide financial institutions to improve the quality and effect of services and thoroughly enhance risk management. 

First, we will continue to promote digital transformation in the banking and insurance sectors. We will conduct assessments of digital transformation-related work and incorporate them into the supervisory and rating system of banking and insurance sectors' use of information technology. We will guide financial institutions to strengthen top design and coordinated planning, devise science-based development strategies, increase investment in resources and factors of production, and reform management and services. 

Second, we will enhance the effectiveness of digital empowerment. We will fully mobilize financial institutions to initiate actions, continue to optimize digital financial products and services, provide financial support in important areas such as sci-tech innovation, advanced manufacturing, green development, and development of micro, small and medium-sized enterprises, and effectively reduce corporate financing costs. Financial institutions will actively expand service channels, including mobile internet terminals, reach out through digital technologies to clients that traditional financial services have difficulty attracting, and continue to elevate the inclusiveness and accessibility of financial services. 

Third, we will improve the risk prevention and control capabilities of related industries. We will push banks and insurers to integrate digital risk control tools into their workflows, fully utilizing digital capabilities to level up risk management, internal control and compliance.

Fourth, we will improve the supervision of network safety and data security risks. We will push banks and insurers to improve regular monitoring of network safety risks and emergency response capabilities, effectively protecting data security and client information, and enhancing the risk management of technology outsourcing in digital ecosystem scenarios. 

Fifth, we will regulate digital innovation and secure the bottom line of risk control. We will demand that banks and insurers establish prudent approval processes, assess the technological and business logic changes brought by new products, new businesses, and new modes, and make sure that the use of new technologies is prudent and compliant with regulations so as to secure the bottom line and prevent risks while going through digital transformation. Thank you. 

Xing Huina:

Due to time constraints, we will now take one last question.

Economic Daily:

The Central Financial Work Conference stressed that we should work hard to advance high-level opening-up of the financial sector, steadily expand institutional opening-up, and attract more foreign financial institutions and long-term capital to invest and operate in China. How will the NFRA implement the guiding principles of the conference to promote the high-level opening-up of the banking and insurance industries? Thank you.

Xiao Yuanqi:

Thank you for your question. I'll answer this one. We recently launched over 50 measures to promote opening-up of the financial sector, which can be summarized in the following aspects:

First, we have scrapped restrictions on the ratio of foreign shareholding in banking and insurance institutions, including restrictions on equity investment, acquisition and capital increase in financial institutions. Foreign investors can now hold 100% of shares of a banking or insurance institution in China, gaining full ownership. There are now such institutions, including wholly foreign-owned insurance companies, wealth management companies with foreign majority ownership, wholly foreign-owned money brokerage companies, and wholly foreign-owned insurance asset management companies. They have all been approved to open for business and are operating well at present. In addition, all the restrictions concerning the financial sector in the negative list for foreign investment have been removed.

Second, we have significantly eased the quantitative entry thresholds for foreign institutions. Requirements in the past regarding total assets and operation terms for foreign-funded banks and insurance institutions have now all been canceled. More emphasis is now laid on comprehensive assessment of the qualification of foreign investment. For another example, the types of institutions have also been greatly enriched. Now various foreign financial institutions, including banks, insurance companies, brokerage companies, wealth management subsidiaries and asset management companies, have been established in China and are operating well. There are now five wealth management subsidiaries with foreign majority ownership in China and they have very good experience and practices concerning product design and risk control and prevention. For another example, foreign-funded banks and insurance institutions now have exactly the same business scope as their Chinese counterparts and receive full national treatment.

As of the end of last year, foreign-funded banks had established 41 legal-person banks, 116 branches of foreign and Hong Kong, Macao and Taiwan banks, and 132 representative offices in China. The number of operating institutions totaled 888 and total assets reached 3.86 trillion yuan. Overseas insurance institutions had established 67 operating institutions and 70 representative offices in China. The total assets of foreign-funded insurance companies reached 2.4 trillion yuan and their market share in the domestic insurance sector had reached 10%, a relatively high proportion. With in-depth participation in the development of China's economy and finance and in the operation of the financial market, foreign-funded financial institutions have become a very important force in China's financial sector. 

We will further align with relevant rules and regulations in the financial sector in international high-standard economic and trade agreements, and resolutely continue to advance high-level opening-up in the financial sector. On the basis of implementing the pre-establishment national treatment plus negative list management system, we will adhere to the market-based, law-based and international principles and welcome various foreign-funded institutions and long-term capital to China to set up and develop businesses. We will encourage foreign-funded financial institutions to carry out extensive cooperation with their Chinese counterparts in equity management and product development, such as through exchanges and training for technologies and personnel.

At the same time, we also welcome foreign-funded institutions with professional expertise in wealth management, asset management, asset utilization and disposal, as well as climate change response, green finance and sustainable operations to come to China to engage in various forms of cooperation. We will also support foreign financial institutions to deeply engage in supporting Shanghai and Hong Kong to cement their positions as international financial centers. China will continue to expand the opening-up of the financial sector.

That's all for my answer to your question.

In addition, I would like to add a few words to the earlier question with regard to improving the credit structure of banks. In terms of regulation, we have introduced two very important quantitative regulatory measures and rules for optimizing the structure of credit assets. First is the regulation of credit and loan concentration where credit granting and loans to a single customer, a single group and a single sector are all linked to capital, with very strict proportions, to prevent financial resources only flowing to large enterprises. There is another very important regulatory indicator. We have launched a joint credit granting mechanism where banks are able to share information concerning credit granting and financing regarding the same enterprise. By doing so, we will ensure that the corporate debt ratio will not be pushed up to a high level and financial resources are utilized in areas where they are most needed, so as to meet the actual and reasonable financing needs of different enterprises, individuals and market entities, avoid funds circulating within the financial sector without entering the real economy, and increase the efficiency of the use of funds. 

That is all from me. I would like to thank you and all the friends from the media for your questions. Thank you all again for your interest in and support for the work on finance, especially the regulation work of the NFRA. Thank you.

Xing Huina:

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

Translated and edited by Xu Xiaoxuan, Wang Wei, Li Xiao, He Shan, Lin Liyao, Huang Shan, Cui Can, Li Huiru, Xiang Bin, Wang Yanfang, Zhang Lulu, Wang Qian, Liu Sitong, Zhang Rui, Xu Kailin, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers: 

Mr. Pan Gongsheng, governor of the People's Bank of China (PBC)

Mr. Zhu Hexin, deputy governor of the PBC and administrator of the State Administration of Foreign Exchange (SAFE)

Mr. Xuan Changneng, deputy governor of the PBC

Chairperson:

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

Date:

Jan. 24, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Pan Gongsheng, governor of the People's Bank of China (PBC); Mr. Zhu Hexin, deputy governor of the PBC and administrator of the State Administration of Foreign Exchange (SAFE); and Mr. Xuan Changneng, deputy governor of the PBC, to brief you on implementing the decisions of the Central Economic Work Conference and providing financial support for the high-quality development of the real economy, and to take your questions.

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

Pan Gongsheng:

Thank you. Good afternoon. I'm very glad to speak with you today alongside Mr. Zhu and Mr. Xuan. 

First of all, I'd like to express my gratitude to you all for your interest in and coverage of reform and development of the financial sector as well as for the work of the PBC and the SAFE.  

The CPC Central Committee with Comrade Xi Jinping at its core highly values financial work. General Secretary Xi Jinping delivered an important speech at the Central Financial Work Conference last year, underlining that China will remain committed to the path of financial development with Chinese characteristics, boost high-quality development of the financial sector , and accelerate the building of China into a strong country in finance. The Central Financial Work Conference held at the end of last year outlined the overall requirements, policy orientation and key tasks for the financial work in 2024. Recently, General Secretary Xi Jinping addressed the launch ceremony of the special seminar on provincial and ministerial-level key officials promoting high-quality development of finance. His important speech provided renewed mobilizations and deployments for effectively handling current and future financial tasks in the coming period.

The PBC and the SAFE, in the spirit of being professional and down-to-earth, will effectively implement the decisions and deployments of the CPC Central Committee, and adhere to the fundamental purpose of providing financial support for the real economy. We will intensify macro regulation, enhance counter- and cross-cyclical adjustments, consolidate and cement the recovery momentum of the economy, and continuously promote the high-quality development of the economy. 

In 2024, we will focus on the following work:

First, we will adhere to the prudent monetary policy, faithfully implement the requirements of maintaining flexible, appropriate, precise and effective policies, and continue to foster a favorable monetary and financial environment for the steady growth of the real economy. Last year, we appropriately enhanced counter-cyclical adjustments, reduced the required reserve ratio two times, and cut policy rate two times. We also guided an orderly reduction of the existing housing loan rate, and steered financial institutions to maintain an appropriate aggregate of credit and ensure a stable issuance pace. These measures yielded positive results. In 2024, in terms of the aggregate, we will comprehensively leverage multiple monetary policy tools, maintain reasonably ample liquidity, and ensure that the aggregate financing and money supply are in step with the targets of economic growth and price levels. Regarding the pace, we will ensure balanced issuance of new credit and enhance the stability of credit growth. Concerning the structure, we will continually optimize the credit structure, and boost financial support for private companies as well as micro and small enterprises. Additionally, we will earnestly implement the recently issued 25 measures on strengthening financial support for the private economy, and improve the quality and effectiveness of providing financial support for the real economy. At the same time, we will focus on putting inefficiently used financial resources to work and make more efficient use of idle funds. As for prices, we will consider internal and external balance, promote steady reduction of overall financing costs, and keep the RMB exchange rate generally stable at an adaptive, balanced level.  

Second, we will strengthen financial support to major strategies, key areas and weak links, and focus on supporting the "five priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance . In 2023, we further increased the effectiveness of monetary policy in promoting economic structure adjustment, transformation and upgrading, and the transformation from old to new growth drivers. In addition, we guided financial institutions in increasing credit support to key areas and weak links. The growth rates of inclusive loans to small enterprises, loans to technology-based small businesses, medium and long-term loans to the manufacturing sector, and green loans were much higher than the average growth rate of all lending in 2023. Going forward, we will continue to use monetary policy tools to adjust both the monetary aggregate and the monetary structure, and enhance tool innovation. We will also continue to guide financial institutions in focusing on supporting the "five priorities." To this end, the PBC will set up a credit market department under central approval.

Third, we will prudently and effectively prevent and defuse financial risks in key areas. Preventing and controlling financial risks is an ongoing pursuit in the financial work. At present, China's financial risks are generally manageable, the overall operation of financial institutions are stable and the financial market operation is steady. Next, we will strengthen the capacity for financial risk monitoring, early warning and assessment, and work toward establishing a financial risk liability management mechanism that aligns responsibilities with authority and integrates incentives and constraints. Employing market-oriented, law-based measures, we will cooperate with local governments and relevant departments in prudently and effectively preventing and defusing financial risks in key areas and institutions. Furthermore, we will refine the financial safety net and continue to promote legislation on financial stability.

Fourth, the PBC will continuously carry out financial reform and opening up. In terms of advancing financial reform, the PBC will strive to build a financial market that is rule-based, transparent, open, vibrant, and resilient. It will further optimize the financing structures, market systems and product systems, in a bid to offer better and more efficient financing services for the growth of the real economy. The PBC will also further bolster the development of the market related to credit and payment. Recently, the PBC has been working with the provincial government of Zhejiang to guide Qiantang Credit Rating through its application for a licensed personal credit firm. As for resolutely promoting high-quality financial opening up, the PBC will expand institutional opening up in the financial sector and boost connectivity between domestic and overseas financial markets. It will also take prudent and solid measures to step up the internationalization of the RMB and continue supporting Hong Kong and Shanghai in improving their statuses as international financial centers.

Fifth, the PBC will proactively participate in global financial governance and further forge international financial cooperation. The PBC will put multilateralism into action, strengthen communication, and promote coordination in global macro-economic and financial sectors through platforms such as the Group of 20 (G20), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS). The PBC will honor the consensus reached at the China-U.S. presidents' meeting in San Francisco and take the lead in carrying out the tasks of the China-U.S. and China-EU financial working groups.

This year marks the 75th anniversary of the founding of the People's Republic of China. We firmly believe that, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we will surely make progress along the path of financial development with Chinese characteristics and contribute to building a great country on all fronts through a Chinese path to modernization via the financial sector.

That concludes my introduction. Next, my colleagues and I will take your questions.

Shou Xiaoli:

Thank you, Mr. Pan. The floor is now open for questions. Please identify the media organization that you work for before asking your questions.

CNBC:

If the U.S. Federal Reserve (Fed) doesn't raise interest rates again this year, will the PBC have greater flexibility to adjust its monetary policy? Thank you.

Pan Gongsheng:

Thank you for your question. I usually spend half an hour every morning at work to stay updated with news from CNBC, and I noticed that there are a lot of discussions on this issue as many experts have shared their insights on your channel. As far as I'm concerned, this is a very good question. Currently, the changes in this year's monetary policies by major central banks, such as the Fed, have attracted great attention, and the PBC also continues to monitor the situation. As we know, since the Fed started to raise interest rates in March 2022, its interest rates have seen a cumulative increase of 525 basis points to the current 5.25-5.5% range. The European Central Bank (ECB) has also raised its interest rates 10 consecutive times, with its main refinancing rate surging from 0% to 4.5%. Therefore, interest rates in both the U.S. and the European region currently stand at record highs. In the meantime, it has also become evident that the rapid increase in interest rates is gradually affecting economic growth, inflation, and the financial markets of developed economies. There has been a lot of discussion from actors in these markets, who expect a possible interest rate cut by the Fed and the ECB in 2024. In general, the Fed's monetary policy direction indicates it will shift this year.

Over the past year, due to the impact of market expectations toward the interest rate policies of the U.S., the U.S. dollar exchange rate has seen certain fluctuations. The U.S. Dollar Index (USDX) surged as high as 114 in 2022, its highest level since 2002. It generally remained above 100 throughout 2023 and is currently fluctuating around 103. The changes in the USDX are closely tied to the expectation of interest rate policies. Therefore, as the Fed halted this round of interest rates increase, the market in general is also anticipating a weak momentum for a significant strengthening of the USDX in the future.

What impact does the shift of the Fed's monetary policies have on those in China? Well, China's monetary policies have always given prominence to the country's own development, whilst balancing both domestic and overseas situations. In 2023, in the face of the spillover effect of major economies' monetary policies, the PBC worked in accordance with domestic economic growth and reduced both the interest rates and the reserve requirement ratio (RRR) twice. This helped maintain reasonably sufficient liquidity, optimized credit loan structure, and effectively bolstered the real economy. In the meantime, based on the supply and demand of the foreign exchange market, the PBC and the SAFE also managed to stabilize market expectations through macro policies and prudent management measures. In general, the RMB exchange rate has remained basically stable despite complex situations.

To sum up, the monetary policies of developed economies are expected to put less pressure on other countries in 2024, and the cyclical difference of monetary policies between China and the U.S. is narrowing. This shift in the external environment objectively strengthens the autonomy of China's monetary policy measures and makes them more flexible.

Thank you.

China Daily:

The Central Economic Work Conference has underscored the importance of coordinating high-quality development with high-level security. It has also called for efforts to advance reform in key sectors and stabilize the overall performance of foreign trade and foreign investment. How does the PBC evaluate China's cross-border capital flow? How does it plan to reform measures related to foreign exchange facilitation? Thank you.

Pan Gongsheng:

Throughout last year, the change in both the domestic and overseas environment did have a certain impact on China's foreign exchange market, but it remained stable in general. I'll give the floor to Mr. Zhu for these questions.

Zhu Hexin:

Thank you for your questions. Governor Pan Gongsheng has already summarized and commented on them, and I'm happy to follow up as his successor at the SAFE. We have navigated through many challenges last year. According to the statistics of the SAFE, China's recent cross-border capital flows have become more stable, as reflected in the continued high-scale net inflow of the current account. The full-year current account surplus for 2023 is expected to reach around $280 billion, with the merchandise trade surplus exceeding $600 billion, marking the second-highest figure in history. Moreover, recent foreign investment in China has shown a positive trend. It is worth noting that since September of last year, foreign capital has increased its net holdings of Chinese domestic bonds for four consecutive months, with a cumulative increase of over $64 billion. We predict that the stability of cross-border capital flows in China will further improve this year, the current account will maintain a reasonable surplus, and foreign capital inflows under the capital account will be more active.

On the one hand, our industrial chain is complete, and we are constantly promoting industrial upgrading. Our production and manufacturing capabilities are robust, contributing to the competitiveness of our trade in goods. Foreign trade products and markets are becoming increasingly diversified. Policies aimed at stabilizing foreign trade and regional cooperation are gradually showing effects, with new export growth points continuously emerging. The number of business entities is increasing, and their products are gaining more competitiveness. Our cooperation will extend to more countries and regions, enhancing the stability of foreign trade.

On the other hand, foreign capital inflows under the capital account will become more active. Governor Pan Gongsheng, in his response to the first question, mentioned anticipated changes in the Fed's monetary policies for 2024. He also mentioned the gradual decrease in their spillover effects, which will ease our external financial conditions. This is expected to encourage a resurgence of international investment and a stabilization or even a rebound in foreign investment. At the same time, with our complete industrial chains and vast market, the diversification of RMB assets and investment in recent years will gradually paying off. We are confident in this aspect.

Regarding the second question about facilitation, our overall direction is to continue coordinating high-quality development with high-level security, deepening reform, and promoting facilitation. We aim to serve the real economy and ensure a stable and positive long-term economic trend. We will focus on the following five aspects:

First, we will continue to promote facilitation in cross-border trade, investment and financing. Our focus is primarily on technology innovation and SMEs, with continually expanding coverage. We aim to empower cross-border financial service platforms through technology, solving real problems for SMEs. We will also support the development of new trade formats, such as cross-border e-commerce and overseas warehouses. Through facilitation, we aim to make cross-border financing more convenient for innovative and technological enterprises. We will support SMEs and sci-tech innovation enterprises in their startup stage with more benefiting foreign exchange policies. Meanwhile, exchange rate fluctuations can be a concern for businesses. If not managed properly, they may lead to losses even for profitable businesses. Therefore, we should proactively improve services in exchange rate risk management for enterprises. In December 2023, we introduced nine measures in the fields of cross-border trade, investment, and financing to support foreign trade and investment. The key issue is not just having policies but ensuring their implementation and continuous evaluation and improvement, so as to truly offer convenience to enterprises and benefit both enterprises and individuals. This will be an important aspect. 

Second, we will continue to steadily promote high-standard institutional opening up. We will expand trials on high-level opening in cross-border trade and investment and improve the pilot program for integrating domestic and foreign currency for multinational corporations. Many of our corporations have demands in this respect, and we need to consider how to promote the measures based on the trial effects. We will unify management rules for foreign investment in Chinese domestic securities and futures, support regional opening-up and innovation, promote interconnectivity between domestic and foreign financial markets, and attract more foreign financial institutions and long-term capital to open and expand businesses in China.

Third, we will continue to promote the internationalization of the RMB in a prudent and solid manner. RMB internationalization is a clear direction and trend. Last year, the proportion of RMB cross-border payments in the trade of goods increased rapidly, reaching 25%, the highest level in recent years. In the next phase, our focus will be on facilitating trade and investment. We will strengthen the coordination between domestic and foreign currencies and further improve policies and infrastructure related to cross-border RMB transactions. Our aim is to better meet the needs of overseas investors for RMB asset allocation, holding, and risk hedging. We will actively support the steady development of the offshore RMB market, with a particular emphasis on enhancing the hub function of the offshore RMB market in Hong Kong.

Fourth, we are intensifying efforts to improve the management system, characterized by being prudent at the macro level and regulating the micro level. On the one hand, we are enhancing the monitoring and early warning response mechanism for cross-border capital flows, improving market communication and expectation guidance, and maintaining the basic stability of the RMB exchange rate. On the other hand, we are strengthening comprehensive regulation in the foreign exchange field, enhancing oversight of cross-border RMB transactions, promptly identifying and addressing abnormal situations, and taking tough action against illegal activities. Meanwhile, many of you may have noticed the recently introduced management approach for bank foreign exchange businesses, which has been well-received by banks. We are currently in the pilot phase of implementing this initiative. A core issue here concerns ensuring that those who have fulfilled their duties are not held accountable, which is of great concern to all banks. We have addressed this issue in the approach mentioned earlier. If the pilot phase progresses smoothly, we aim to include more banks in our system. The ultimate goal is to further enhance facilitation and better serve business entities.

The last aspect drawing widespread attention involves the continuous effort to improve the management of foreign exchange reserves with Chinese characteristics. We will spare no effort to ensure the secure and value-preserving flow of foreign exchange reserve assets.

Thank you.

Reuters:

Last year, the Chinese economy maintained a low inflationary trend, with certain months experiencing simultaneous CPI and PPI declines. This raised concerns in the market about deflationary pressures. How does the central bank view the price trends this year? What policy measures will be taken to address potential deflation risks?

Pan Gongsheng:

Thank you for your questions. Price trends are a matter of great concern. I would like to share some perspectives on this.

The issue has drawn widespread attention from media journalists and scholars. When discussing this matter, it's important to analyze it from a broader perspective and over a slightly longer period. We need to examine the trajectory of price changes in major global economies and China over the past few years and the underlying logic behind them. I remember, a few years ago, when the pandemic hit, that to tackle the crisis effectively, major global economies generally implemented loose fiscal and monetary policies. The pandemic caused significant disruptions to the global supply chain, compounded by geopolitical events like the Russia-Ukraine conflict. As a result, major economies saw a rapid increase in inflation. The CPI inflation rate in the U.S. peaked in June 2022 at 9.1%, while the highest rate in the eurozone was 10.6% in October 2022.

For China, we adhered to normal monetary policies during the pandemic, avoiding excessive tightening or loosening. Our industrial chain and supply capacity remained robust, ensuring stable operations. Despite global high inflation, our country's price levels remained generally stable, without significant issues of inflation or deflation. In 2021 and 2022, China's CPI increased by 0.9% and 2%, respectively.

After the pandemic, major central banks in the U.S. and Europe swiftly and intensively adjusted their monetary policies in response to high inflation. In just over a year, the Federal Reserve increased interest rates 11 times, raising the policy interest rates by 525 basis points. Similarly, the European Central Bank raised its rates 10 times, with an upward adjustment of 450 basis points. From a historical perspective, it's quite rare to see such rapid and intense adjustments to policy interest rates within such a short period. Meanwhile, the global supply chain has gradually recovered since the end of the pandemic, leading to an overall decline in commodity prices. We have noted that inflation levels in the U.S. and Europe have fallen from the previous high of around 10% to the current level of approximately 3%. We believe that the rapid and unexpected decline in inflation levels in developed economies also has implications for prices in China. I just provided a global perspective on this issue. Figuratively speaking, it's like inflation levels in developed economies falling from the 10th floor to the third floor, while China's decline is from the second floor to the ground. This gives us the overall macro context.

From a domestic perspective, there is insufficient effective demand, overcapacity in certain industries, weak social expectations, and low price levels. In 2023, the CPI increased by only 0.2%, marking a significant decline compared to the previous year. International financial organizations, such as the International Monetary Fund, along with various financial institutions in the market, also predict that China's price levels will experience a moderate rebound in 2024, driven by sustained improvements in domestic demand and changes in external price conditions.

Referring to the second question, what measures will the PBC take? We will intensify cross- and counter-cyclical adjustments when employing monetary policy tools, fostering a conducive monetary and financial environment for economic growth and price stability. I would like to share three key points with you all.

First, we will prioritize the maintenance of price stability and fostering a moderate price rebound as a crucial aspect of our monetary policy. This entails a steadfast commitment to monetary policy objectives, ensuring currency stability to promote economic growth.

Second, we will optimize the allocation of financial resources. We will guide financial institutions to scientifically assess risks, restricting financing supply to industries with overcapacity, and meeting reasonable consumer financing needs in a more targeted manner. 

Third, we will enhance coordination between financial policies and other measures. This extends beyond the financial domain, addressing broader macroeconomic considerations. It involves leveraging policy synergies to boost household income, create more employment opportunities, strengthen the social security system, and fully implement a consumer-driven strategy. The primary objective is to support the expansion of domestic demand, facilitate supply-demand alignment, and promote a positive economic cycle. Thank you.

Economic Daily:

China's economic development is facing and will face challenges and opportunities. Given this, how will the central bank determine the orientation of monetary policy? Thank you. 

Pan Gongsheng:

I believe the vast majority of journalists here today would like to ask the same question, which is very important and is of great public concern .

In 2023, China's economy witnessed rapid recovery after the country's smooth transition in its COVID-19 response. The Chinese economy sustained its recovery momentum, and steady progress was made in pursuing high-quality development. According to data released recently by the NBS, China's GDP grew 5.2% last year, sustaining high-speed growth. China's economy is still facing some difficulties and challenges, such as the aforementioned lack of effective demand, overcapacity in some industries, weak market expectations , and external uncertainties. However, there are many positive factors from the perspective of the central bank. We should adopt a big-picture mind. China's monetary policy was prudent over the past few years compared to some developed economies which “”tend to make drastic changes to their monetary policy Moreover, the country's monetary policy adjustment and the transmission mechanism have improved, which has created favorable conditions for supporting its economic growth in a sustainable way.

There is currently ample space for monetary policy. We will ensure a balance between short-run and long-run equilibrium, maintain steady growth while guarding against risks, and maintain a fine balance between internal and external equilibrium. We will strengthen counter-cyclical and cross-cyclical adjustments, and create a good monetary and financial environment for high-quality economic development. The central bank will lower the reserve requirement ratio (RRR) by 50 basis points on Feb. 5 to inject long-term liquidity of about 1 trillion yuan ($140 billion) into the market. The central bank will also lower the interest rates for re-lending and re-discount for loans to the agriculture sector and small enterprises by 0.25 percentage point from tomorrow. Moreover, we will continue to promote a steady reduction in social comprehensive financing costs. I'd like to make a detailed introduction from the following four aspects:

First, we will maintain the growth of total social financing within a reasonable range. We will continue to make use of tools for improving liquidity, including the RRR, re-lending and re-discount facilities, the medium-term lending facility and open market operations, in a bid to provide strong support for promoting the growth of credit and social financing within a reasonable range. China's average RRR is 7.4%, meaning China still has ample room to maneuver compared to other major economies. The RRR is an effective tool to supplement medium- and long-term liquidity in the banking system. The lowering of the RRR by 50 basis points will take effect on Feb. 5, which will inject long-term liquidity of about 1 trillion yuan ($140 billion) into the market.

Second, we will focus on equilibrium of both the interest rate and foreign exchange rate of the RMB. Monetary policy operations will mainly serve the domestic economy when it comes to interest rates. There is still a gap between current price levels and price targets. You may be aware that major Chinese banks cut deposit rates in November and December. We will lower the interest rates for re-lending and re-discount for loans to the agriculture sector and small enterprises to 1.75% tomorrow, down from 2%. All these measures will lower the loan prime rate, or LPR, a market-based benchmark lending rate. Moreover, expectations that the U.S. Federal Reserve will shift its monetary policy can help expand China's room for monetary policy operations.

We will maintain the flexibility of the foreign exchange rate of the RMB, and ensure that the exchange rate serves as an automatic stabilizer in adjusting the macro economy and for the balance of payments. We will adhere to the principle that the exchange rate should be mainly determined by the market, and prepare for worst-case scenarios. Efforts will be made to expand policy tools to deal with the situation, and prevent unilateral consistent expectations and their self-reinforcement. By doing so, we aim to keep the RMB exchange rate basically stable at a reasonable and balanced level.

Third, we will improve efficiency of monetary policy in terms of structure. Increased efforts will be made to manage the relationship between quantity and structure, and between the existing amount and the incremental amount, in a bid to support the "five priorities." Credit lines for inclusive loans to micro and small businesses will be raised from 10 million yuan per borrower to 20 million yuan per borrower. We will continue to leverage support tools for inclusive loans to micro and small businesses and the targeted re-lending facilities to boost public-interest elderly care services. We will also increase the re-lending and re-discount quotas for the agriculture sector and small enterprises, and expand carbon-reduction support tools to ensure that more enterprises in more areas can receive support. Furthermore, efforts will be made to integrate existing tools and plans and develop new ones for supporting technological innovation and digital finance. Following market-oriented and law-based principles, we will support debt restructuring and other methods to revitalize financial resources that have been inefficiently allocated, so as to make better use of funds.

Fourth, we will ramp up efforts to improve policy coordination and pool strengths. The overall debt scale of government departments, especially that of the central government, is not high compared to some other countries. There is still ample room for proactive fiscal policies. China issued an additional 1 trillion yuan (about $137 billion) in treasury bonds in the fourth quarter of 2023, and the large majority of them will be used in 2024, in an effort to let investments really work. Given the low cost for issuing government bonds and a lower share of domestic holdings of government bonds, there is much room for increasing government bonds purchases. China's monetary policy is more capable of maintaining liquidity ample, issuing large-scale government bonds and supporting investment projects.

Thank you.

Thecover.cn:

What do you think of China's credit supply in 2023? How do you view the relatively large fluctuations in certain quarters or months? Will China continue to maintain a strong credit expansion in 2024? Thank you. 

Pan Gongsheng:

Since Mr. Xuan is responsible for the monetary policy department, he is in the position to answer your questions. 

Xuan Changneng:

This issue I believe is of great concern to the market entities and media. Mr. Pan provided some information earlier about credit support for the real economy. 

In 2023, the PBC utilized the dual functions of monetary policy tools in terms of aggregate and structure , guiding financial institutions to enhance loan support for the real economy. Consequently, the total scale of credit loans registered steady and rapid increase. By the end of 2023, outstanding RMB loans stood at 237.6 trillion yuan, marking a 10.6% increase year on year. This represented an increase of 22.7 trillion yuan in 2023, 1.3 trillion yuan more than that of 2022. The structure of loans also continued to improve. By the end of 2023, outstanding inclusive loans to micro and small businesses had increased by 23.5% year on year. The growth rates of loans to enterprises that use special and sophisticated technologies to produce novel and unique products, as well as to technological SMEs, were 18.6% and 21.9% year on year, respectively. Outstanding medium- and long-term loans to the manufacturing sector grew by 31.9% year on year, with loans to high-tech manufacturing industries surging by 34% and outstanding medium- and long-term loans to the infrastructure industry increasing by 15% year on year. The growth rates of loans to major sectors and weak links significantly exceeded the 10.6% growth rate of total loans.

Additionally, you mentioned that loan data fluctuated widely in certain quarters and months. According to previous years' data, the first quarter, especially the first month of the year, typically sees bigger increases in loans, while April, July, and October usually experience smaller increases. These seasonal changes are caused by objective economic and financial factors. As the saying goes, "The whole year's work depends on a good start in spring." Market entities often anticipate a strong start at the beginning of the year, and major projects typically commence early in the year. Spring plowing and wage payments before the Chinese New Year also lead to substantial financing needs. With pandemic prevention and control entering a new phase, the accumulated loan needs of the past three years were simultaneously released, resulting in a significant rise in loans in the first quarter of 2023. Economic recovery needs stable and sustainable loan support. The key is moderate control, respecting objective laws while avoiding abnormal loan behavior substantially diverging from previous levels. 

Regarding the loan situation in 2024, it is projected to maintain rapid growth in the first quarter, resulting from strong starts by banks and the benefits delivered by policies in the second half of 2023. The PBC will continue to guide financial institutions to ensure stable and sound support for the real economy, with loans being issued more evenly throughout the year.

Last but not least, I suggest not over-interpreting credit loan data for a single month. Rather, we should adopt diverse approaches to evaluate financial support to the economy, such as referring to the social financing scale, which covers a wider range, and observing changes in financing costs by referring to interest rates. Thank you.

Yicai:

Preventing and defusing financial risks, especially forestalling systemic risks, is essential for our financial work these years. Can you introduce measures to prevent financial risks, especially systemic risks? Thank you.

Pan Gongsheng:

Thank you. Preventing and controlling financial risks has always been a critical issue for the financial industry. The central government attaches great importance to this and has made systemic arrangements at the Central Economic Work Conference and the Central Financial Work Conference. I would like to share some points from a macro perspective on preventing and defusing financial risks based on the central government's arrangements.

First, balancing economic growth, economic structural adjustment, and financial risk prevention is essential. The economy underpins finance, and finance reflects economic performance. Many problems in economic performance can lead to financial issues and intertwine with financial risks. The key to eradicating the root of financial risks lies in balancing economic growth, economic structural adjustment, and financial risk prevention, namely achieving a balance between development, reform, and stability, which is often mentioned.

Second, we should strengthen financial supervision, improve mechanisms for risk prevention, early warning, and disposal, and ensure a robust financial safety network. Here are several points. First, we should enhance enterprise governance and risk management within financial institutions, which serve as the first line of defense for preventing and defusing major risks. Second, we need to tighten financial supervision, leverage the role of macro-prudential management, micro-prudential supervision, and behavioral supervision , and strengthen coordination among them to form an integrated effort. Third, advancing the construction of a financial safety network is essential. We need to improve our ability to monitor and evaluate risks and give early warning, and optimize early rectification mechanisms for financial risks with stringent restrictions. We need to establish a risk disposal responsibility mechanism that aligns authority with responsibility and is compatible with incentives. We should fully utilize the role of industry guarantee funds and financial stability guarantee funds and enhance the function of professional risk disposal of deposit insurance. Fourth, we will strengthen legal guarantees for financial stability, accelerating the creation of laws and regulations, including a law on financial stability.

Third, we should defuse risks in major sectors in an orderly way and mitigate overall financial risks. In recent years, a number of major risks have been effectively addressed, and financial institutions have generally maintained steady performance. Since 2023, various departments and localities have implemented effective measures to support the resolution of risks in real estate and local debts. Under the guidance of financial management departments, financial institutions have provided significant support to ensure the stability of financing channels for real estate enterprises, especially top enterprises. Recently, the PBC, in conjunction with the NFRA, will issue a policy on improving operating property loans, encouraging prominent real estate enterprises to revitalize stock assets, expand capital usage, and thus improve liquidity. The policy will be released either this evening or tomorrow evening. Local government debts are highly localized, and it is primarily a few underdeveloped areas that are facing debt repayment difficulties, exerting limited impact on the economic and financial aggregate. I provided a comprehensive explanation on this at a conference in Hong Kong in November 2023. The PBC will continue to collaborate with administrative departments of industries and local governments to provide financial support and defuse risks. 

Fourth, we will coordinate financial openness with security, continually enhancing the level of financial risk prevention and control within the framework of an open macroeconomic landscape. First, in recent years, we have systematically promoted the opening of the financial services industry and financial markets, continually improving the facilitation of cross-border trade and investment. Second, we are deepening the reform of the RMB exchange rate mechanism, increasing exchange rate resilience, while simultaneously strengthening balanced macroeconomic governance of cross-border financial flows to maintain the stability of the foreign exchange market. Mr. Zhu Hexin provided some specific interpretations earlier. Currently, the foreign exchange hedging ratio for enterprises is around 25%, and enterprises have greatly increased their awareness of exchange rate hedging. At the same time, the proportion of RMB in cross-border trade payments has reached around 25%, reducing currency mismatch risks. These two 25% figures do not overlap because one pertains to exchange rate hedging and the other to using the RMB. Additionally, China's foreign exchange market operates more resiliently, with more mature market participants, and regulatory authorities in the foreign exchange market are more composed and experienced in the face of market changes. Third, we will advance international financial cooperation, actively participate in global financial governance, strengthen multilateral and bilateral dialogues, lead the establishment of China-U.S. and China-EU financial working groups, enhance coordination of macroeconomic policies, and jointly reinforce the global financial security network. Last week, the PBC and the U.S. Treasury Department convened the third meeting of the China-U.S. Financial Working Group, with Deputy Governor Xuan Changneng leading the Chinese delegation. Fourthly, we will refine measures for the secure management of financial industry data, ensuring safer and more convenient cross-border data flows with clearer regulations.

In the next steps, the PBC will resolutely implement the Central Committee's various arrangements for guarding against and defusing financial risks. We will adhere to a systemic approach and consider worst-case scenarios to ensure that the bottom line of preventing systemic financial risks is maintained. These are the four aspects I shared with you at the macroeconomic level. Thank you.

Market News International:

The RMB depreciated against the U.S. dollar in 2023. How does the central bank view the outlook for the RMB exchange rate this year? And what factors might affect the exchange rate? Thank you.

Pan Gongsheng:

Thank you for your question. The questions we addressed earlier are somewhat related to the points you just raised.

Last year, the onshore RMB exchange rate against the U.S. dollar fell by 2%, while the offshore rate declined by 2.5%. The currency index of emerging market countries dropped by 3.8%. In our neighboring countries, Japan experienced a 7.3% decline in the yen, and the South Korean won depreciated by 2.7%. Combining these factors provides a more comprehensive view of the changes in the RMB exchange rate last year. Short-term factors influencing exchange rates are diverse, including economic growth, monetary policy, financial markets, geopolitical factors, and risk events. However, the medium- to long-term trends fundamentally depend on economic fundamentals. Therefore, our assessment indicates that in 2024, the RMB exchange rate will continue to maintain basic stability at a reasonable and balanced level.

The factors supporting the stability of the RMB exchange rate can be summarized as follows:

First, the domestic economy is performing steadily and robustly. China's economy exhibits a solid fundamental base, maintaining a long-term positive trend. This forms a crucial foundation for the overall stability of the RMB exchange rate.

Second, there have been some changes in the external international financial environment. As I mentioned earlier, recent market shifts regarding the U.S. Federal Reserve's monetary policy and the diminishing momentum of the U.S. dollar appreciation are widely recognized, in my opinion. The anticipated improvement in the alignment of monetary policy cycles between China and the U.S. is expected to contribute to the alleviation of interest rate differentials, fostering greater stability and balance in the RMB exchange rate and cross-border financial flows.

Third, RMB assets possess appealing investment and hedging value. The continuous opening up of China's financial markets has made RMB bonds, as one of the few globally stable financial markets, highly attractive to overseas investors. Since September of last year, China's RMB bond market has witnessed four consecutive months of net inflows, with overseas investors holding nearly 500 billion yuan of domestic bonds.

Fourth, the microeconomic foundation for exchange rate stability becomes more solid. A basic balance in international payments, with the ratio of the current account balance to GDP staying within a reasonable range, standing at 1.6% in the first three quarters of 2023. Cross-border trade and investment facilitation continue to improve, ensuring balanced bidirectional cross-border financial flows. The foreign exchange market has enhanced resilience, and the participants have become more mature. I have been serving as the administrator of the SAFE since 2015, and comparing the current situation with that time over the past eight years, I believe the maturity of China's foreign exchange market has significantly improved. Moreover, there is a more extensive use of exchange rate hedging tools, and the RMB's internationalization level has rapidly increased. Business entities are now better equipped to cope with external shocks and exchange rate fluctuations.

The Central Economic Work Conference and the Central Financial Work Conference emphasized the need to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Historical practices have repeatedly demonstrated that the PBC and the SAFE, as regulators of the foreign exchange market, possess the experience, capability, and confidence to address various shocks and challenges, ensuring the stable operation of China's foreign exchange market.

In the next phase, the PBC and the SAFE will adhere to the decisions and deployments of the CPC Central Committee and the State Council, maintain the market-driven determination of the exchange rate, ensure the resilience of the RMB exchange rate, and leverage the exchange rate as a macroeconomic and automatic stabilizer for international balance. Simultaneously, considerations on worst-case scenarios will be maintained, with the enrichment of response tools to prevent the risk of excessive exchange rate adjustments and the formation of unilateral consensus expectations and self-reinforcing expectations.

As we discuss financial market operations, including the foreign exchange, bond, and stock markets, I would like to share some insights into my views on the trends and changes in the foreign exchange market for this year and beyond.

The CPC Central Committee and the State Council attach great importance to the stable and sound development of the capital market. On Jan. 22, the State Council held an executive meeting to conduct targeted research and make arrangements. At present, China's macro-economy has sustained the momentum of recovery. There is ample room for macro policies and for maneuver, and the capital market has a solid foundation for stable and healthy growth. The PBC will faithfully implement the guiding principles of the State Council executive meeting and strengthen counter-cyclical and cross-cyclical adjustments of the monetary policy. With a focus on stabilizing the market and strengthening confidence, we aim to consolidate and enhance the momentum of economic recovery, and create a sound monetary and financial environment for the operation of financial markets, including the capital market.

Thank you.

Financial Times:

Currently, the interest rate spread between domestic banks' deposits and loans is gradually narrowing. We have also observed that the LPR has remained unchanged recently. How does the PBC guide commercial banks in managing their assets and liabilities? How does the PBC effectively promote the reduction of comprehensive financing costs? Thank you.

Xuan Changneng:

Thank you for your questions. These issues were also mentioned by Mr. Pan when he answered related questions just now. In particular, he just announced the relevant policies and measures that we will be launching soon. Here, I will provide an overall introduction to the work of the PBC in this regard for 2023, as well as our policy orientation.

In 2023, the PBC effectively implemented a series of interest rate policies aimed at promoting a significant reduction in comprehensive financing costs. Just as Mr. Pan mentioned, first, we lowered policy interest rates twice. In June and August 2023, we cut the interest rates of reverse repos and the medium-term lending facility by 20 and 25 basis points , respectively, leading to a continued decline in the LPR. Second, we adjusted and optimized housing credit policies. We continued to implement the dynamic adjustment mechanism for first-home mortgage rates , and promptly reduced the lower limit of second-home mortgage rates by 40 basis points at the end of August, encouraging banks to lower interest rates on existing first-home mortgage loans. Third, we further promoted the liberalization of deposit interest rates. Based on the rapid growth of household savings and the significant decline in lending rates, major banks lowered deposit rates three times, with medium- and long-term deposit rates falling even further.

Overall, these measures have effectively promoted a significant decline in the costs of corporate financing and consumer credit. In 2023, the weighted average interest rate of corporate loans was 3.88%, down 0.29 percentage point over the previous year, continuing to hit a new low since statistics were collected. Interest rates on more than 23 trillion yuan of existing mortgage loans were lowered, with an average decrease of 0.73 percentage point, resulting in a reduction of approximately 170 billion yuan in annual interest payments for mortgage borrowers. The overall decline in interest rates has effectively reduced the interest burden on enterprises and residents, thereby stimulating loan demand, optimizing the allocation of financial resources, and improving the unimpeded flow of domestic economic circulation.

As Mr. Pan mentioned, the PBC will lower re-lending and rediscount rates to support agriculture and small businesses, and domestic banks have already moderately lowered deposit rates. These measures will contribute to reducing comprehensive financing costs. Moving forward, the PBC will continue to enhance the relevance and coordination of interest rate policies through reform, giving priority to China's monetary policy, balancing internal and external policies, and further leveraging the positive role of interest rate policies in promoting consumption, stabilizing investment, and expanding domestic demand. There are several aspects to consider:

First, we will reasonably maintain the level of interest rates. Based on our assessment of future price changes, we will proactively manage the actual interest rate level, ensuring it aligns with the requirements for achieving potential economic growth.

Second, we will comprehensively consider the relationship between deposit interest rates, financial management rates of return, dividend rates, and more, and better utilize the market-based adjustment mechanism for deposit interest rates. We will support banks in reducing liability costs while maintaining a reasonable and orderly market competition environment, thereby creating opportunities to lower loan interest rates.

Third, we will encourage banks to increase government bond sales among residents. This initiative aims not only to provide residents with more investment products that offer safety, liquidity, and profitability but also to further open up diversified channels for converting savings into investments.

Fourth, we will improve the formation mechanism of the LPR and encourage quoting banks to improve quotation quality on the premise that banks ensure sustainable support for the real economy and risks are kept under control. Meanwhile, we will strengthen monitoring of loan interest rates and enhance self-discipline management to prevent funds from idling in the corporate sector and to curb arbitrage.

Fifth, we will implement a dynamic adjustment mechanism for first-home mortgage rates. We will cooperate with local governments to adopt the lower limit of mortgage rate policies according to local conditions, and optimize interest rate structures for personal loans, including mortgage loans, consumer loans, and business loans. This will support the stable and healthy development of the real estate market.

Additionally, the PBC will continue to cooperate with relevant departments to rectify and regulate unreasonable enterprise-related service charges by banks, and effectively reduce the comprehensive financing costs for enterprises.

CCTV:

The CPC Central Committee has issued a clarion call to move faster to build China into a financially strong country. What considerations does the PBC have in terms of implementation? Thank you.

Pan Gongsheng:

Thank you. I will take this question. Since the 18th CPC National Congress, China's reform of the financial system has made significant progress. The construction of a modern financial regulation system, financial supervision system, financial institution system, financial product and service system, and financial infrastructure system continues to advance. The role of finance in contributing to the real economy and preventing and controlling risks has been significantly enhanced. With China's rise in political and economic status, the international influence of the PBC and the level of RMB internationalization have greatly improved. These developments have laid a good foundation for boosting China's strength in finance.

Currently, China's banking industry ranks first globally in terms of asset size. Its bond market ranks second in the world, and its foreign exchange reserves have ranked first worldwide for 19 consecutive years. The development of digital finance, green finance, and inclusive finance is at the forefront of the world. The RMB holds the third-largest overall share within the International Monetary Fund's Special Drawing Rights currency basket, and over 80 countries and economies have included the RMB as a reserve currency.

Building China into a financial powerhouse is a long-term goal and a systematic project. It requires adhering to the basic principles of marketization, rule of law, and internationalization, and it requires long-term efforts and perseverance. We must continue the reform aimed at improving the socialist market economy and continuously enhance and improve financial market's role in allocating resources. We need to continuously improve the rule of law in finance and enhance the transparency, stability, and predictability of financial systems and policies. We should coordinate deep-level financial reform and high-standard financial opening-up, continuously promote the opening up of the financial service industry and financial market to the outside world, enhance the level of trade and investment facilitation, and strengthen the building of financial security capabilities and make sure they are compatible with the level of openness.

General Secretary Xi Jinping has pointed out that a financial powerhouse should have six key core financial elements and emphasized the need to have a strong currency and a strong central bank. Currency is the foundation of the financial system as well as an overall reflection of a nation's comprehensive strength, international competitiveness, and macroeconomic governance capabilities. A strong currency can better fulfill the functions of measure of value, medium of exchange, methods of payment, and store of value. It enhances the confidence of currency holders, meets the needs of opening up and cross-border investment and financing, and provides a favorable monetary and financial environment for the healthy development of the national economy.

We will focus more on establishing a two-pillar regulation framework comprising of sound monetary policy and macro-prudential policy in order to achieve the dual objectives of currency stability and financial stability. We will accelerate the construction of a modern central bank system, with responsibilities centered around monetary policy, prevention and control of systemic financial risks, financial stability and national financial security, international financial governance and cooperation, financial markets, financial infrastructure construction, and financial management and services. We will continue to promote supply-side structural reforms in the financial sector, optimize the system of financial institutions and the structure and distribution of the financial market, and accelerate the development of a modern financial system with Chinese characteristics.

Meanwhile, the People's Bank also undertakes important responsibilities in key tasks such as building strong financial institutions, strong international financial centers, robust financial supervision, and high-caliber teams of financial professionals. We will adhere to the centralized and unified leadership of the CPC Central Committee in financial work, deeply understand and grasp the political and people-oriented nature of financial work, firmly follow the path of developing finance with Chinese characteristics and effectively carry out various tasks. We will continue to promote high-quality development of the financial sector and vigorously build China into a financial powerhouse. Thank you.

21st Century Business Herald:

Currently, small and micro enterprises are showing an uneven recovery. In terms of financial support for private enterprises, what further measures can be taken to better stimulate the development of business entities? Thank you.

Zhu Hexin:

Thank you for your question. Just now, Governor Pan Gongsheng announced two important measures that directly benefit the development of our private economy. Supporting the development of the private economy has been the consistent policy of the CPC Central Committee, and the private economy is an essential component of our economic system. The private economy is characterized by its large volume and extensive coverage, encompassing various aspects related to the national economy and people's well-being. Therefore, we must spare no effort in supporting its development. The private economy plays a crucial role in stabilizing growth, improving people's livelihoods, promoting entrepreneurship, and increasing job opportunities. The private economy is of high importance – a few years earlier, it had accounted for more than 50% of tax revenue, more than 60% of GDP, more than 70% of technological innovation achievements, more than 80% of urban employment and more than 90% of enterprises. 

In our financial services for the real economy, the private economy is an important field. Therefore, the People's Bank has made significant and effective efforts in this regard. On one hand, it is about how to implement this concept. As everyone knows, according to the requirements of the central authorities, we have always upheld and improved China's fundamental socialist economic systems and worked unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. We see the private economy as equal to the public economy and treat private enterprises the same as state-owned enterprises. On the other hand, it is not just about the concept but also about putting it into action. This involves effectively implementing our financial policies through financial institutions. The most pivotal part is how to fully dedicate ourselves to implementing measures in the private economy and promote the private economy as a vital production force and a significant source of growth. In this regard, we have achieved significant results. Previously, there were concerns about the difficulties and high costs of financing. However, in reality, we have made significant progress in recent years. Here, we can use a set of data to illustrate the achievements we have made in serving the private economy. By the end of last year, outstanding loans to privately owned enterprises exceeded 41.2 trillion yuan, with an increase of 3.8 trillion yuan for the entire year. This represents a year-on-year increase of 950 billion yuan. The number of private enterprises that were granted credit lines reached 7.16 million, with an increase of 1.16 million for the entire year, marking a year-on-year increase of 80,000. In November, the weighted average interest rate for newly issued loans to privately owned enterprises was 4.24%, which decreased by 23 basis points compared to the same period in the previous year.

This time, everyone also noticed the central financial work conference's emphasis on the five priorities of technology finance, green finance, inclusive finance, pension finance, and digital finance. These five priorities are closely related to the private economy and private enterprises. Therefore, when carrying out these tasks, we must pay more attention to providing financial support for the development of the private economy. The People's Bank will primarily focus on the work in the following areas:

First, we will focus on the implementation of policy incentives. We will continuously improve policy tools. To start with, the People's Bank has announced significant positive news and two major measures. These two measures are part of our policy toolbox. Who will implement them? Financial institutions. What should financial institutions do? We must make every effort to promote the implementation of policies, fulfilling the aspirations of financial institutions and the requirements of private economy development. For example, by effectively integrating aspects, such as due diligence and exemption from accountability, and performance examination, we can ensure that our policy tools play a greater role.

Secondly, we will enhance our service capabilities, with a primary focus on financial institutions. Through the utilization of technology and the dismantling of information barriers, we can address certain gaps in supporting the private economy and enterprises. Specifically, issues such as credit loans and initial funding requirements for private enterprises can be resolved through technological empowerment and shared information.

Thirdly, we will ensure diversification of fund sources. This involves traditional credit support as well as direct financing markets such as bonds, a domain in which the PBC has made significant strides. It is noteworthy that technology companies also require support from the capital market. Meanwhile, it's worth noting that there is a significant presence of technology-oriented private enterprises within the private sector, a focus area for the PBC. On one hand, there is an emphasis on increasing loans to tech-focused businesses and issuing innovation and technology-related financing instruments, aiming to support private enterprises in boosting their investments in technology and research and development. The second aspect involves collaborating with relevant enterprises and departments to promote the smooth flow of various stages in the venture capital industry, including fundraising, investment, management, and exit processes for equity investment. This is aimed at delivering high-quality services for the development of early-stage private technology enterprises. To sum up, the private economy and private enterprises hold great importance, and financial institutions and enterprises should step up to play a more substantial role. Thank you.

Shou Xiaoli:

Due to time constraints, we'll take the last question.

Phoenix TV:

We would like to inquire about the progress made by the PBC in recent years towards enhancing the openness of the mainland's financial industry to Hong Kong. Additionally, could you share how the new measures implemented by the PBC will further financial cooperation between the mainland and Hong Kong and integrate Hong Kong more effectively into the overall national development? Thank you.

Pan Gongsheng:

Thank you for your questions. Over the past few years, the PBC, along with relevant Hong Kong institutions, has consistently worked towards implementing major projects annually. The high-level opening up is a fundamental national policy. Hong Kong is a major international financial center, the world's largest offshore RMB market, and a crucial asset management and private wealth management center in Asia. The PBC has consistently supported the development of Hong Kong as an offshore RMB hub, promoting high-level openness of the mainland's financial industry to Hong Kong and safeguarding Hong Kong's status as an international financial center and its long-term prosperity and stability.

In recent years, the PBC, in collaboration with mainland financial regulatory authorities, has initiated and continuously refined programs such as the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects, the Bond Connect program, the Cross-boundary Wealth Management Connect, and Swap Connect. These programs make it much easier for international investors to manage mainland stocks and bonds in Hong Kong. Similarly, they provide Hong Kong residents with convenient access to mainland wealth management products.

To further advance the high-level openness of the financial sector of the Chinese mainland, deepen financial cooperation between the mainland and Hong Kong, and solidify and enhance Hong Kong's status as an international financial center, the PBC and the Hong Kong Monetary Authority (HKMA), building on thorough preparatory work, have decided to introduce six policy measures. Now, I invite Xuan Changneng, vice governor of the PBC, to elaborate on these six measures. Mr. Xuan oversees international business at the PBC. 

Xuan Changneng:

Now, I will detail the six measures aimed at deepening financial cooperation between Hong Kong and the mainland. The PBC and the HKMA have jointly launched six financial measures, including various aspects such as financial market interconnection, cross-border capital facilitation, and the deepening of financial cooperation. These measures can be summarized as "three connections and three conveniences."

Specifically: First, RMB bonds under the Bond Connect program will be deemed eligible collateral for the HKMA's RMB Liquidity Facility. Second, there will be a further opening up for foreign investors to participate in the onshore repurchase agreement market, supporting all foreign institutional investors that have entered the inter-bank bond market to engage in bond repurchasing, including through the Bond Connect channel. Third, detailed implementation guidelines for optimizing the Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) will be released to expand and facilitate individual investment channels in the GBA. Fourth, policies will be implemented to facilitate measures on the remittances for property purchases by Hong Kong and Macao residents in the mainland cities in the GBA to better meet the housing needs of residents. Fifth, the scope of pilot projects for collaboration on cross-boundary credit referencing between Shenzhen and Hong Kong will be expanded to facilitate cross-boundary financing for Shenzhen and Hong Kong enterprises. Sixth, the cross-boundary e-CNY pilot zones will be expanded to bring more convenience to Hong Kong and mainland residents and enterprises.

Next, the PBC will closely collaborate with the mainland and Hong Kong financial management departments to jointly promote the implementation of these policies, further optimize financial services, strengthen financial cooperation, and support the continued development of Hong Kong as an international financial center. Thank you.

Pan Gongsheng:

In preparation for the policy measures just announced by Mr. Xuan, the PBC, along with relevant mainland financial management departments and the HKMA, has undertaken substantial preparatory work. Some of the policy documents for these measures will be released later this evening by the PBC and the HKMA in coordination with other relevant departments.

As the Chinese Spring Festival is approaching, with fewer than 20 days to go, I would like to take this opportunity to extend my warmest wishes to all the reporters and your family members for a joyful, prosperous, and healthy Chinese New Year! Thank you all.

Shou Xiaoli:

Thank you to all the presenters, and thanks to all the reporters for your participation. That concludes today's press conference.

Translated and edited by Xu Xiaoxuan, Wang Qian, Zhu Bochen, Wang Yiming, Mi Xingang, Liu Sitong, Qin Qi, Huang Shan, Gong Yingchun, He Shan, Liu Jianing, Yuan Fang, Wang Ziteng, Ma Yujia, Yan Bin, Wang Wei, Zhang Rui, Li Huiru, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Yuan Ye, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

Mr. Zhuang Shuxin, secretary general of the SASAC

Mr. Li Bing, deputy secretary general of the SASAC and director of its Bureau of Financial Oversight and Operational Evaluation

Mr. Xie Xiaobing, a person in charge of the Bureau of Property Right Management of the SASAC

Chairperson:

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

Date:

Jan. 24, 2024

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Yuan Ye, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), to brief you on enhancing core functions, improving core competence and better realizing the high-quality development of centrally administered state-owned enterprises (SOEs), and take your questions. We are also joined by Mr. Zhuang Shuxin, secretary general of the SASAC; Mr. Li Bing, deputy secretary general of the SASAC and director of its Bureau of Financial Oversight and Operational Evaluation; and Mr. Xie Xiaobing, head of the Bureau of Property Right Management of the SASAC.

Now, let's give the floor to Mr. Yuan Ye for a brief introduction.

Yuan Ye:

Thank you. Ladies and gentlemen, good morning. I am delighted to meet with friends from the media and brief you on state assets and SOEs.

The year 2023 that has just passed was the first year of fully implementing the guiding principles of the 20th National Congress of the Communist Party of China (CPC), and a year of economic recovery and development after three years of COVID-19 prevention and control. It was also a crucial year for state-owned assets and SOEs to remember their mission and responsibilities and restart on a new journey with continued efforts. General Secretary Xi Jinping issued important instructions on the work of state-owned assets and SOEs. He presided over several important meetings to review significant documents regarding state-owned assets and SOEs, inspected multiple SOEs, and delivered important speeches. At the recently held Central Economic Work Conference, he made significant arrangements for the reform and development of SOEs. This has provided clear guidance on the direction and fundamental principles for us to solidly carry out the work related to state-owned assets and SOEs, promote the high-quality development of SOEs, and better fulfill their functions, missions and responsibilities.

Over the past year, we have thoroughly implemented the guiding principles of General Secretary Xi Jinping's important speeches and instructions, earnestly carried out major arrangements made by the CPC Central Committee and the State Council, focusing on enhancing core functions and improving core competence. We have adhered to the comprehensive leadership of the Party over SOEs, deepened the reform of state-owned assets and SOEs, enhanced the ability to create value, intensified efforts in technological innovation, accelerated the development of strategic emerging industries, and promoted SOEs to better fulfill their economic, political and social responsibilities. Remarkable achievements have been made in various aspects, making significant contributions to starting the new journey on a positive note. In 2023, central SOEs achieved operating income of 39.8 trillion yuan, with a total profit of 2.6 trillion yuan and a net profit attributable to the parent company of 1.1 trillion yuan, realizing steady and high-quality growth. The cumulative completion of fixed asset investment (including real estate) was 5.09 trillion yuan, a year-on-year increase of 11.4%, among which, strategic emerging industries completed investment of 2.18 trillion yuan, a year-on-year increase of 32.1%; and research and development funding reached 1.1 trillion yuan, surpassing the 1-trillion mark for two consecutive years.

This year marks the 75th anniversary of the founding of the People's Republic of China and is a crucial year for achieving the goals and tasks of the 14th Five-Year Plan. State-owned assets and SOEs will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, comprehensively implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee, thoroughly implement the arrangements of the Central Economic Work Conference, adhere to the general principle of seeking progress while maintaining stability, and firmly grasp the necessity of adhering to high-quality development in this new era. We will deeply implement actions to enhance the reform of SOEs, focus on improving the innovation and value creation capabilities of central SOEs, further optimize and restructure the state-owned economy, accelerate the construction of a modern industrial system, and better leverage the roles of technological innovation, industrial control and safety support. This is aimed at continuously driving the economy to achieve efficient improvements in quality as well as reasonable growth in quantity and make new contributions to China's endeavor to build itself into a stronger country and rejuvenate the Chinese nation on all fronts by pursuing Chinese modernization.

Next, my colleagues and I are willing to answer your questions. Thank you.

Xie Yingjun:

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

China News Service:

The Central Economic Work Conference stated that we should seek progress while maintaining stability, promote stability through progress, and establish the new before abolishing the old. What work will the SASAC and central SOEs take as priorities to better contribute to consolidating and strengthening the momentum of economic recovery? Thank you.

Yuan Ye:

Thank you for your question. I’ll answer this. As you mentioned, the Central Economic Work Conference issued plans and arrangements for the work this year. The SASAC has conscientiously implemented the plans of the conference. We made detailed and overall arrangements for implementation at a meeting of heads of central SOEs held not long ago. At the meeting, we proposed that in the next stage of development, central SOEs should pay more attention to high-quality development and focus on improving value creation capacity during the process. In terms of value creation capacity, we encourage central SOEs to enhance value in five aspects. First is value-added; second is functional value; third is economic value added; fourth is the proportion of income and value added of emerging strategic industries; and fifth is brand value. The purpose is to guide enterprises to resolutely implement the guiding principles of the Central Economic Work Conference; to seek progress while maintaining stability, promote stability through progress and establish the new before abolishing the old; to continue to strengthen core functions and improve core competitiveness; to grow bigger, better, and stronger in the process of serving national strategies; and to better achieve unity between economic, political and social benefits. 

To be specific, by encouraging central SOEs to enhance value added, we guide them to promote the development of the state-owned sector and strive to achieve satisfactory returns for shareholders, profits for companies, income for employees and tax revenues for the country, thereby making a greater contribution to national economic growth. By emphasizing improvement in functional value, we guide central SOEs to play a proactive role in serving national strategies, safeguarding national security, and safeguarding and improving people’s well-being, and to help bring into full play the strategic support of the state-owned sector. By calling for greater economic value added, we guide central SOEs to optimize investment direction and layout, curb the impulse for blind investment, reduce inefficient and ineffective capital investment, and generate more profitable income and profit with operating cash flow. By emphasizing increased proportion of income and value added of emerging strategic industries, we encourage central SOEs to accelerate the shift to innovation-driven growth, and to play a leading role in developing new productive forces and making new growth drivers stronger at a faster pace. By highlighting brand value, we encourage central SOEs to enhance capacity-building and image-building, improve the added value and leading role of brands, and accelerate the building of world-class enterprises. 

Specifically, we will give priority this year to work in five aspects.

First, we will focus on improving quality and performance and make every effort to advance the continued recovery of China’s economy. At the beginning of this year, the SASAC launched a special action to enhance quality and performance and ensure stable growth and give play to the key role of effective investment. At the same time, efforts are being made to improve the quality of listed companies controlled by central SOEs and to enhance returns for investors. We will strengthen lean management and make more contributions to economic and social development by comprehensively improving the quality and efficiency of central SOE operations.

Second, we will focus on advancing industrial innovation through scientific and technological innovation, and develop new productive forces and advance new-type industrialization at a faster pace. We encourage enterprises to further reinforce their principal role in scientific and technological innovation and make greater efforts to gather innovative resources, strengthen organization of innovation and build a better innovation ecosystem, and speed up efforts to secure breakthroughs in core technologies in key fields. We will keep working on both emerging strategic industries and traditional industries, actively develop new industries and new arenas, and accelerate efforts to consolidate the foundation of and transform traditional industries, and make industrial and supply chains more resilient and secure, so as to provide more support for modernizing the industrial system.

Third, we will focus on deepening the reform of state-owned capital and SOEs and accelerate the building of new modern SOEs. We will carry out the action to deepen the reform of SOEs, establish a sound modern corporate system with distinctive Chinese features and a market-oriented operating mechanism, further improve supervision methods, and raise service efficiency, so as to add vitality and boost momentum for the high-quality development of enterprises.

Fourth, we will focus on enhancing the capacity for providing strategic support and meeting basic needs and better serve China's overall economic and social development. We will resolutely implement the coordinated regional development strategy and major regional strategies, optimize the distribution of major productive forces, and provide livelihood service and fundamental guarantees. At the same time, we will step up efforts to ensure the market supply and stable prices of food and strategic energy resources so as to serve the building of the new development paradigm.

Fifth, we will focus on strengthening Party leadership and Party building, and guide and safeguard the high-quality development of enterprises through high-quality Party building. In doing this, we will uphold General Secretary Xi Jinping's important thought on Party building as the overarching principle, take the rectification of problems identified in inspections as an opportunity, focus on ensuring the fulfillment of political responsibility for governance over the Party, and give priority to improving the systems for exercising full and rigorous Party self-governance. We will lay more emphasis on addressing inadequacies and shoring up weak points, on promoting standardization and institutionalization, and on giving better play to the role of Party building in enterprises. We will strive to combine strengthening Party leadership with improving corporate governance, and advance in-depth integration between Party building and corporate production and operation, to provide fundamental guarantees for high-quality development of enterprises and effectively translate the political strengths of Party building into innovation, development and competitive strengths of enterprises.

In general, we will keep to our mission in advancing the cause of the Party and the country, and resolutely play a strategic role in serving the building of a great modern socialist country in all respects, a leading role in driving the upgrading of the industrial system, and a supporting role in promoting China’s economic and social development. Thank you.

Nanfang Daily, Nanfang Plus:

Last year, General Secretary Xi Jinping stressed during an inspection tour in northeastern China's Heilongjiang province that resources for sci-tech innovation should be integrated to guide the development of strategic emerging industries and future industries so as to form new productive forces at a faster pace. My question is, what progress was made in 2023 by central SOEs in developing strategic emerging industries and future industries? What major steps will be taken? Thank you.

Yuan Ye:

The question you raised is very important. As I just said, central SOEs will take developing new productive forces as a major task. Now, let's invite Mr. Zhuang to elaborate on this matter.

Zhuang Shuxin:

Thank you for your questions. At present, a new round of scientific and technological revolution and industrial transformation is reshaping the global economic structure and industrial landscape, giving birth to an increasing number of new industries and new business forms and models. Strategic emerging industries and future industries, especially, have become new arenas for businesses from different countries to compete, as well as the primary platform for developing new productive forces.

Since last year, the SASAC and all central SOEs have carefully studied and implemented the principles from General Secretary Xi Jinping's important instructions on accelerating the growth of new productive forces and propelling the advancement of new industrialization. We have regarded developing strategic emerging industries and future industries as a task that possesses big-picture importance and will serve as locomotives. We have made positive progress in this regard.

First, we have identified new directions for development. Two campaigns were launched for central SOEs to boost strategic emerging industries, such as next-generation mobile communications, artificial intelligence (AI), biotechnology, and new materials, and to foster future industries, such as future information. By doing so, we have identified the priority and direction of development and laid out detailed targets and pathways.

Second, we have effectively ignited new growth engines for enterprises. A full range of policies were made in resource investment, core business fostering, and personnel training, providing enterprises with maximum and effective support. The management of their primary responsibilities and core business was optimized, and a dynamic mechanism for adjusting their core business was established and improved. We encouraged enterprises to speed up their transformation and upgrading and look for new growth drivers. We also fostered emerging industries that are of long-term and strategic importance. Enterprises acted quickly to improve their systems and mechanisms to adapt to new industries and new arenas and implement supporting policies. Enterprises have been encouraged to pursue innovation and exploration and take a trial-and-error approach, thus invigorating businesses and increasing efficiency. 

Third, we have made breakthroughs in the layout of industries. Last year, the investment from central SOEs in strategic emerging industries totaled 2.18 trillion yuan, marking an increase of 32.1% year on year. Numerous pivotal projects were initiated in sectors like photovoltaic-based hydrogen production, carbon fiber manufacturing, and automotive chips. New businesses were established across a number of industries, such as laser manufacturing, quantum communications, and satellite internet. We also pursued restructuring and integration efforts in sectors including electronic technology, new energy, environmental conservation, and intelligent connected vehicles. New industries and new business forms are becoming major growth areas of enterprises.

Next, we will improve work mechanisms and optimize supporting policies. Mobilizing the resources of the whole system, we will work ceaselessly and make every effort to develop strategic emerging industries and future industries. Focusing on the two campaigns launched by central SOEs in this regard, we will move faster to achieve pivotal progress in increasing the revenue of strategic emerging industries, as well as the contribution of their value-added to GDP, thus achieving strategy transition in the layout and structure of central SOEs. To be specific, we plan to initiate a number of major projects, select 100 representative projects of strategic emerging industries, foster clusters of strategic emerging industries, launch special actions such as AI+, and act quickly to make landmark advances in key areas such as biotechnology, new materials, and new energy vehicles (NEVs). We will also move faster to make technological breakthroughs in industrial development and cultivate start-up enterprises, leading enterprises, and unicorn enterprises so as to deliver signature products in sectors such as brain-like intelligence, quantum information, deep earth and sea exploration, and laser manufacturing. We will establish a new systematic business environment, create innovative cooperation models among central SOEs, local enterprises, and enterprises of all sizes and forms of ownership, and strengthen coordination across different businesses and sectors so as to jointly build a business environment featuring efficient coordination and sound growth. The funds given to strategic emerging industries will deliver results at a faster pace. We will make solid efforts to promote industrial innovation with technological innovation and ensure central SOEs play a leading role in forming new productive forces and strengthening new growth drivers. Thank you.

Yicai:

In the past year, what progress have central SOEs made in promoting strategic restructuring and professional integration? In the coming year, which key areas will they focus on for restructurings and business integration? Thank you.

Li Bing:

I'll answer these questions. In 2023, the SASAC implemented the arrangements of the 20th CPC National Congress on accelerating efforts to improve the layout of the state-owned sector and adjust its structure. The SASAC intensified its efforts in restructuring the central SOEs and integrating their businesses, yielding positive results in four areas. First, we supported the implementation of national strategies and enhanced our capabilities. We have made continuous progress in optimizing resource allocation in fields such as data and information, leveraging the role of central SOEs as the "national team" to serve the needs of national strategies more effectively. Second, we improved the efficiency of resource allocation and the quality of development. We integrated cruise operation resources to establish platform companies and strengthened professional operational capabilities. The first domestically-built large cruise ship, Adora Magic City, completed its successful maiden voyage for commercial purposes. We facilitated the transfer of China International Water & Electric Corp, a subsidiary of China Three Gorges Corp, to China Communications Construction Co, and the transfer of National Bio Energy Group, under State Grid Corporation of China, to State Power Investment Corporation. We also promoted China Huaneng Group to conduct pilot operation and maintenance services for 22 new energy projects for 13 central SOEs. These efforts enabled companies to focus on their core businesses and achieve high-quality development. Third, we focused on nurturing new growth drivers and promoting the development of strategic emerging industries. We guided central SOEs to focus on mergers and integration, making innovation breakthroughs, and internal collaboration, so as to accelerate the development of strategic emerging industries. We held two centralized signing ceremonies for 25 key projects in business integration, covering strategic emerging industries like environmental protection, biotechnology, and new energy vehicles. Fourth, we have been gathering innovative resources and strengthening research and development capabilities. China Electronics Technology Group Corp completed restructuring of China Hualu Group Co Ltd, consolidating its strengths in the field of electronic information and enhancing its ability to supply key technological products. This helped to shore up key links in industrial chains and created synergistic advantages in areas such as smart manufacturing and data storage.

Next, the SASAC will, in accordance with the requirements outlined by the action plan guiding SOEs to deepen reform, focusing on the goal of steadfastly improving, expanding, and strengthening SOEs, further advance the work of restructuring and integration to deliver a substantive result. First, we will strengthen overall planning and enhance the effectiveness of restructuring and integration. Starting from improving the layout of the state-owned sector and adjusting its structure, and in line with the implementation of the 14th Five-Year Plan, we will carry out overall planning for the main directions and key tasks of restructuring and integration, improving the layout and adjusting the structure in a planned way and with the right pace. Second, we will give priority to serving national strategies and advance strategic restructuring and the establishment of new central SOEs in a prudent manner. We will focus on implementing strategies for innovation-driven development, coordinated regional development, and boosting China's strength in science and technology, manufacturing and cyberspace during the strategic restructuring and the establishment of new central SOEs. We will continue to promote the concentration of state-owned capital in important industries related to national security and the lifeline of the national economy, in important industries related to the national economy and people's livelihood, such as the provision of public services, emergency capacity building, and public welfare, and in forward-looking strategic emerging industries, and fully leverage the role of state-owned capital and central SOEs as the backbone and ballast of the economy. Third, we will focus on developing strategic emerging industries and vigorously promote professional integration. By leveraging the leading role of central SOEs, and in line with the characteristics of the integrated development of strategic emerging industry clusters, we will make greater efforts to conduct professional integration in the fields such as information communication, new energy, and equipment manufacturing. We will actively explore new arenas, seize new highlands, and shape new advantages by deepening strategic cooperation in the industrial chain ecosystem, and expediting our efforts to modernize the industrial system. Thank you.

CMG:

In the report to the 20th CPC National Congress, it is stated that to build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development. Last year, what work did the SASAC carry out to promote the high-quality development of enterprises? What progress was achieved? Are there any new plans for this year? Thank you.

Yuan Ye:

Thank you for your questions. As you mentioned, to build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development, and it is also a distinct feature of the development of central SOEs on the new journey of the new era. Last year, under the guidance of the SASAC, central SOEs focused on the main task of pursuing high-quality development. They emphasized the unity of benefits and efficiency, highlighting their ability to create value. Our aim extended beyond expansion; we also encouraged central SEOs to become stronger and more competitive, and shoulder greater responsibility in effectively upgrading and appropriately expanding China's economic output.

Focusing on this goal, we have fully implemented the guiding principles of the 20th CPC National Congress and further improved our assessment and management system. Centering on high-quality development, promoting enterprises to enhance their core competitiveness and advancing central SOEs into world-class companies, we established the system of management by objectives characterized by "one profit, five ratios". The term "one profit" refers to emphasizing the assessment of profit indicators, fully reflecting the ability of enterprises to create value for society. The "five ratios" include return on equity, overall labor productivity, ratio of spending on R&D to GDP, operating cash flow ratio, and debt-to-asset ratio. Last year's objectives clearly stated that it was essential to ensure steady profit growth. As I mentioned earlier, the goal of achieving steady profit growth was accomplished in 2023. The objectives also included overall stability of the debt-to-asset ratio, and further improvement of return on equity, ratio of spending on R&D to GDP, overall labor productivity, and operating cash flow ratio.

In terms of specific work measures, in accordance with such a target management system, a special action to improve quality and efficiency was launched at the beginning of last year. This move aims to promote China's SOEs to achieve business objectives in line with requirements for high-quality development. We have also set up a quarterly round table meeting system for central SOEs. These meetings focus on the production and market operations of relevant enterprises. Simultaneously, we assist central SOEs in resolving production and operational issues, aiding them in accelerating the transformation of the development model for higher quality and greater efficiency.

Judging from the results, it is evident that central SOEs, with a bigger picture in mind, have taken proactive measures and strengthened confidence to overcome various difficulties. They have delivered solid and substantial results. 

On the one hand, there has been a steady increase in quantity. Despite challenges such as insufficient domestic and international demand and a decline in prices of bulk commodities last year, central SOEs maintained overall operational stability and achieved steady growth in profitability. As highlighted in the opening statement, last year, central SOEs recorded impressive income and profit results. By the end of the year, the total assets of central SOEs reached 86.6 trillion yuan, a year-on-year increase of 6.4%.

On the other hand, there has been a significant improvement in quality. Last year, central SOEs' average return on net assets reached 6.6%, maintaining a good level of shareholder returns. Overall labor productivity per capita reached 784,000 yuan, and the operating cash ratio was 10.1%, showing a steady monthly increase throughout the year. The average asset-liability ratio of central SOEs stood at 64.8% at the end of last year, effectively controlled at around 65%, achieving overall stability. Last year, we also strengthened the governance of loss-making enterprises and the disposal of inventory and accounts receivable. This has also achieved positive effects, playing a crucial role in improving enterprises' performance, as well as enhancing their asset quality.

As we look at the indicators, what is even more gratifying is that the driving forces for enterprise development have been strengthened significantly. For example, the driving role of innovation is accelerating. Last year, central SOEs substantially increased their total research and development spending. As mentioned in the opening statement, we have invested more than 1 trillion yuan for two consecutive years. The driving role of investment is also constantly increasing. With a focus on promoting high-quality and stable development, serving the country's major strategies, and building a modern industrial system, central SOEs completed total investments exceeding 6 trillion yuan last year. The total amount of fixed-asset investment exceeded 5 trillion yuan, with investment in primary businesses accounting for over 95%. Investment in strategic emerging industries increased more than 30% year on year, accelerating the cultivation of new growth drivers.

Overall, central SOEs have worked together diligently and pragmatically, achieving progress while maintaining stability and promoting high quality through progress. With high-quality and stable growth, central SOEs have positively contributed to the steady recovery and improvement of China's economy.

Just now, I also mentioned some of the measures to be taken this year to implement the guiding principles of the Central Economic Work Conference. We will continue to adhere to the target management system of "one profit and five ratios" (total profit, as well as return on net assets, operating cash ratio, asset-liability ratio, R&D investment intensity, and labor productivity), and make efforts to ensure steady profit growth and continuous optimization of the five ratios. Next, we will continue working to steadily improve the performance of central SOEs and achieve improvements in return on net assets, labor productivity, and operating cash ratio. We will continuously enhance the intensity of research and development investment and science and technology input-output efficiency, and maintain a stable overall asset-liability ratio. We will promote high-quality development of central SOEs with tangible actions and results, amid our efforts to better fulfill our economic, political, and social responsibilities and effectively serve Chinese modernization.

Thank you.

Jinan Times APP: 

In 2023, what significant progress did central SOEs make in advancing scientific and technological innovation, especially in building capabilities for developing original technology and national innovation platforms? In 2024, how will we guide enterprises to play a leading role in technological innovation and drive the building of a modern industrial system through scientific and technological innovation? Thanks.

Yuan Ye:

Good questions. As I just introduced, in the past two years, central SOEs have continued to increase investment in research and development, which has exceeded 1 trillion yuan for two consecutive years. We continue to optimize assessment indicators and encourage enterprises to increase investment in research and development. In the assessment of corporate profits, the investment in research and development is also added back to profits to encourage enterprises to strengthen investment in scientific and technological innovation. Mr. Zhuang Shuxin will give you a detailed answer.

Zhuang Shuxin:

Thank you for your attention regarding the sci-tech innovation of central SOEs. Sci-tech innovation is the country’s fundamental interest and the motive force for the development of enterprises. In 2023, the SASAC and central SOEs actively implemented the new system for mobilizing resources nationwide to make key technological breakthroughs, vigorously promoting sci-tech innovation with a strong sense of urgency and firm measures and further advancing the innovation efficacy.

First, central SOEs’ principal role in sci-tech innovation has been strengthened. Central SOEs have been organized to undertake a number of major national sci-tech tasks and key projects in technological innovation. They were deeply involved in the construction of a system of national laboratories and completed the rearrangement of major national laboratories in fields such as energy, engineering, and medicine. They made efforts to establish a number of national technological innovation centers and actively participated in the construction of international sci-tech innovation centers and regional innovation centers.

Second, the construction of innovation systems continued to progress. We have accelerated the breakthrough of key and core technologies, advanced the planning and construction of original technologies incubators, and implemented 11 specialized action plans with one aimed at strengthening target-oriented basic research. As Mr. Yuan mentioned, central SOEs’ investment in research and development exceeded one trillion yuan for two consecutive years, and 29 individuals and 20 teams from central SOEs have been honored with the National Engineer Awards. A group of academicians and experts from central SOEs have entered the pool of national sci-tech experts.

Third, high-quality innovative achievements emerged quickly. The demonstration project of fourth-generation nuclear power technology for fast reactors has been completed and put into operation. High-temperature gas-cooled reactors have been commercialized, the Shenzhou-16 and Shenzhou-17 spaceships were successfully launched, the C919 passenger aircraft had its debut commercial flight, and the 6G network architecture set a world record for long-distance transmission. Direct-drive offshore wind turbines have reached a world-leading level. Significant breakthroughs have been made in key materials, basic components, and foundational software. Central SOEs have led the formulation of a number of international, national, and industry standards.

In 2024, we will focus on strengthening enterprises’ principle role in sci-tech innovation, fully leverage central SOEs' role to boost China's strength in strategic science and technology, and prioritize the four key areas of work as follows.

First is to accelerate technological breakthroughs to foster the resilience of industrial and supply chains. We will promote the deep integration of enterprises into the national innovation system, actively undertaking major national sci-tech tasks. Focusing on key industrial chains in the manufacturing sector, key and core technological research will be carried out, and an updated version of the innovation alliance of central SOEs will be fostered, promoting collaboration among enterprises, universities, and research institutes and connectivity among large, medium, and small-sized enterprises. Utilizing the advantages of SOEs in application scenarios, we will drive the transformation and application of technological achievements.

Second is to enhance the leading role of original innovation and improve the industrial innovation system. We will encourage central SOEs to summarize major scientific subjects from economic, social, and industrial development needs and strengthen applied fundamental research, generating a batch of original achievements in cutting-edge fields. We will encourage central SOEs to steadily increase the research and development funding and advance the efficiency of sci-tech output, fueling development with higher technological contribution.

Third is to fortify the driving force of innovation and accelerate the shaping of new productivity. Highlighting strategic emerging and future industries, we will progress central SOEs with consistent strategic assessments, technological foresight, and benchmarking analysis, strengthening the planning to develop cutting-edge technologies, stepping up to foster innovative SOEs, and relying on technological innovation to open up new fields and channels and foster new driving forces and advantages for development.

Fourth is to create an innovative ecosystem to boost innovation vitality and power. We will guide central SOEs to take advantage of various national sci-tech policies; issue more policies to empower enterprises, deregulate, ease burdens, and reinforce positive incentives; implement in-depth digital transformation initiatives; and enhance digital and intelligent technologies to empower new industrialization. We will vigorously encourage dedication to scientific advancement and entrepreneurship and improve the sustained ability for innovation and value creation. Thank you.

Xinhua News Agency:

As mentioned in Mr. Yuan's response, this year's focus will continue to be on improving the quality of central SOE holding listed companies. With regard to this, as SASAC released a plan for reinforcing the quality of these companies in 2022, I would like to inquire as to the progress of related work and what measures the SASAC will take to promote the quality and efficiency of central SOE holding listed companies? Thank you.

Yuan Ye:

Thank you for your questions. It is crucial to improve the quality of central SOE holding listed companies. As I mentioned earlier, we have emphasized "one profit and five rates" in the target management system to motivate the ability of value creation for central SOEs. The requirement for listed companies is the same. In recent years, we have consistently focused on quality improvement of central SOE holding listed companies to increase investor returns. For detailed information on relevant work, I'll ask Mr. Xie to respond.

Xie Xiaobing:

Thank you. The previous discussions by our colleagues focused on high-quality development. Listed companies account for a large proportion of central SOEs and are an important part of central SOEs, as we have previously explained to our media friends before. Our high-quality assets are primarily held by listed companies. The high-quality development of listed companies is closely related to that of central SOEs. Just now, our work on promoting the high-quality development of central SOEs was introduced. Here, I would like to share what we have done in light of the characteristics of listed companies.

In recent years, we have collaborated with the China Securities Regulatory Commission (CSRC) and other relevant departments to promote the high-quality development of listed central SOEs. Our work has focused on several key areas:

First, we have contributed superior offerings to the capital market and have optimized its layout and function. In recent years, we have listed 21 companies on the A-share market, 14 of which are listed on the Science and Technology Innovation Board. These are companies with strong technological capabilities. At the same time, we have actively utilized these companies' platforms to conduct professional restructuring, incorporating quality assets into the listed companies. According to preliminary statistics, the value of integrated assets in the past two years has exceeded 300 billion yuan.

Second, we have ensured synergy between science, technology, industry, and finance. Through the platform of listed companies, we attracted relevant funds to bolster scientific and technological innovation capabilities. This effectively connected the "technology-industry-finance" chain, and made it more visible in the capital market. According to preliminary statistics, in the first three quarters of 2023, listed companies controlled by central SOEs invested 288.5 billion yuan in scientific research, with an average of 780 million yuan per company.

Third, we have maintained high standards in the disclosure of information from listed companies. Our listed central SOEs have adhered to the regulatory requirement of “taking information disclosure as the core." In the information disclosure quality evaluation conducted by the Shanghai and Shenzhen stock exchanges, nearly half of our listed companies were rated A, indicating a very high standard of information disclosure. At the same time, we have actively expanded our ESG reporting coverage, achieving 80% by the end of last year. According to our plans, we will achieve full coverage in the 2023 annual report disclosure.

Fourth, we have constantly enhanced our value creation and market recognition. We have strengthened regular and multi-level interactions with investors, achieving full coverage in performance briefings for three consecutive years. Both the chairman and general manager have attended the performance briefings of listed SOEs. In 2023, 12 listed central SOEs engaged in stock buy-backs, while 32 saw an increase in holdings by major shareholders. In 2022, the cash dividend payout ratio reached 44.6%. By mid-2023, 20 central SOEs had issued mid-term performance dividends totaling nearly 80 billion yuan.

Overall, listed companies controlled by central SOEs have remained focused on their core businesses, leading to a continuous increase in overall scale. Business performance has maintained a generally stable trend, with the industrial layout becoming more optimized and operation quality steadily improving. According to the third-quarter report of 2023, the total assets and net assets of the 383 listed companies controlled by central SOEs on China’s mainland have reached 53 trillion yuan and 17 trillion yuan, respectively. The operating revenue and net profit attributable to equity holders were reported at 18.63 trillion yuan and 1.06 trillion yuan, respectively. Overall, the return on equity (ROE) reached 7.53%.

Now, 154 out of the 383 listed companies are in strategic emerging industries, representing over 40% of the total. By the end of 2023, the market value of listed companies controlled by central SOEs on China’s mainland had reached 13.5 trillion yuan. We recognize that enhancing the quality of listed companies is a long-term endeavor requiring sustained efforts. Moving forward, we will concentrate on the following aspects to further improve their quality:

First, we will continue to build a listing pattern with a clear definition and incremental development. We will promote the general idea of "strengthening and improving a group of enterprises, adjusting and revitalizing a batch of enterprises, and cultivating and reserving a bunch of enterprises." This approach aims to steadily improve incremental growth, consistently deliver high-quality products to the capital market, and actively improve existing stocks. As a result, listed companies can intensively work in their industries to grow better and stronger, becoming leading entities in their sectors. On the other hand, we have resolved to proactively implement policies and resolutely adjust and revitalize the listing platforms of some enterprises that do not align with their main business or advantages.

Second, we will make continuous efforts to improve the standard operation of listed companies. We will enhance cooperation and communication with securities regulatory authorities to jointly promote the standardized operation of listed central SOEs and further improve the quality of information disclosure. At the same time, we should properly resolve the risks of listed companies and encourage them to set an example for honest and standardized operations in the capital market.

Third, further research will be conducted on incorporating market value management into performance assessments of central SOE leaders. In the early stages, we have encouraged central SOEs to include indicators related to value realization in the performance evaluation system of listed companies. Building on this, we will include the effectiveness of market value management in the assessment of central SOE leaders. This approach aims to guide them to pay more attention to the market performance of listed companies they manage. We will convey confidence and stabilize expectations promptly through market holding increases, buybacks, and other means and enhance cash dividends to better reward investors.

Thank you.

ThePaper.cn:

Recently, there have been widespread cold spells across the country, and all sectors of society are closely monitoring the energy supply. What actions did central SOEs undertake to ensure energy supply in 2023? What progress has been made? What are the key arrangements for follow-up work? Thank you.

Li Bing:

Your question is of great concern to society at present. In 2023, facing multiple severe challenges such as high temperatures, low water levels, typhoons, freezing rain, snow, and earthquakes, the SASAC and central SOEs resolutely implemented the major deployments of the CPC Central Committee and the State Council. They effectively played a crucial role in ensuring people's livelihoods and stabilizing production, supply, and prices. Various measures were taken to successfully complete key supply tasks during the peak demand periods of summer and winter, the Spring Festival, the two sessions, the Chengdu Universiade, and the Hangzhou Asian Games. These efforts effectively maintained economic and social stability and made a significant contribution to the sustained improvement of the domestic economy.

In 2023, central SOEs' safeguarding work in energy and power supply included several aspects:

First, the central power generation enterprises strengthened thermal coal inventory management. The thermal coal inventory was consistently maintained at a high level. Coal power units operated safely and efficiently, generating a total of 5.35 trillion kilowatt-hours of electricity throughout the year. This accounted for 52% of China's installed capacity and contributed to 63% of the country's electricity generation.

Central SOEs responsible for the power grid fully leveraged their strengths in optimizing the allocation of large power grid resources, thereby enhancing mutual support in balancing excesses and shortages. Throughout the year, a total of 4,761 cross-regional and cross-provincial power supports were organized, with the electricity volume reaching 20.9 billion kilowatt-hours. They controlled load management and capacity scale to the maximum extent, firmly maintaining the bottom line against power outages.

Prioritizing safety and compliance, central SOEs in the coal sector expanded their mining operations, spearheaded the implementation of the long-term price agreement mechanism for thermal coal, and maximized thermal coal supply. The cumulative coal production throughout the year was 1.13 billion tons, with an average daily output of 3.083 million tons, a year-on-year increase of 4.5%, hitting another record high.

Central SOEs in the petroleum and petrochemical sector fully utilized the potential of domestically produced and imported gas to ensure a safe and stable oil and gas supply. Cumulative sales of natural gas throughout the year reached 354.39 billion cubic meters, marking a year-on-year increase of 6.1%. Assets totaled 202.85 billion cubic meters, a year-on-year increase of 6.8%, and imports were 147.05 billion cubic meters, reflecting a year-on-year increase of 8.8%.

Moving forward, the SASAC will bear in mind the overall situation of safeguarding national energy security and economic operational security. It will strive to enhance the role of SASAC and central SOEs as the "backbone" and "cornerstone" in critical moments. The SASAC will supervise and guide central power generation SOEs, coal SOEs, power grid SOEs, and petroleum, petrochemical, and natural gas SOEs to follow unified arrangements. This will ensure the supply of essential services for people's livelihood and guarantee a warm winter and enjoyable holidays for the public.

In the long run, we will focus on accelerating the construction of new power systems. We will promote the building of peak-shaving power sources, such as gas power, pumped storage, and electrochemical energy storage, tailored to local conditions. Additionally, we will advance the construction of approved power generation projects and ensure their timely operation and grid connection. We will increase investment in technological innovation in strategic emerging industries such as energy storage, hydrogen energy, nuclear energy, and virtual power plants and continuously improve the long-term mechanism for ensuring energy supply. Thank you.

Securities Time:

Could you share the overall achievements of the campaign organized by SASAC for closer cooperation across industrial chains in 2023, and also the plans for this year? Thank you.

Zhuang Shuxin:

Thank you for your question. As we know, China has a large and comprehensive industrial system, but it also faces numerous bottlenecks and challenges. These require not only guidance from policy departments but also proactive efforts from enterprises, especially industry leaders, to efficiently link upstream and downstream operations and ensure smooth production and supply cycles.

Last September, SASAC, along with the Ministry of Industry and Information Technology, initiated the common chain campaign aiming to build closer collaborations across the industrial chain. By establishing platforms for cooperation and supply-demand matchmaking, we have promoted deeper collaboration between central SOEs and those in the industrial chains, working to build a new pattern of orderly competition and integrated development among large, medium, and small enterprises.

On one hand, we focused on building a new mechanism for cooperation across the industrial chain. Through joint ventures, increased investments, mergers, and acquisitions, we established mechanisms for supply-demand matching, joint project development, and shared results, enhancing the efficiency of industrial chain collaboration. We have also leveraged the strengths of industry leaders to create a new ecosystem featuring openness, shared benefits, integration, and win-win cooperation.

On the other hand, we focused on laying a solid foundation for the security and development of the industrial chain. We have strengthened innovation cooperation with enterprises in the industrial chain, jointly undertaking projects to strengthen foundations, improve weaknesses, and remake industrial basic capabilities, aiming to resolve the issues of a lack of foundational components and core technologies in the industrial system. We opened up the application scenarios of central SOEs to allow more products and services from the industrial chain to be included in the procurement catalog, starting from initial installations and editions. This has created conditions for the large-scale application of new products and technologies and accelerated the advancement of new industrialization.

By the end of last year, central SOEs hosted 13 events under the campaign, covering areas like machine tools, mobile information, rail transit, and low-carbon metallurgy in Beijing, Shanghai, Guangzhou, Shenyang, and other places. They released over 1,000 supply and demand lists, signed off over 5,000 agreements, and established deep cooperation with numerous enterprises.

Notably, the State Grid created the world's largest new energy cloud platform, providing a one-stop service for new energy planning, grid connection, and transactions. The platform hosts 17,000 companies, providing grid connection services for over 12,000 projects.

State Power Investment Corporation Limited (SPIC), through its contract-based cooperation model, has made solid strides in industrial chain development surrounding the "Guohe One" project, achieving 100% domestic substitution capability for entire machines by the end of 2023.

CRRC Corporation Limited has led the coordinated development of over 6,900 enterprises in the rail transit equipment chain, forming two world-class industrial clusters in Zhuzhou and Qingdao, with a global new vehicle sales market share exceeding 30%.

China Mobile fully upgraded its partnership program to connect and cooperate with enterprises across the industrial chain, conducting over 550 collaborative projects with key industry enterprises and providing over 150 billion yuan in supply chain finance services.

Going forward, SASAC and central SOEs will take more substantial measures to consolidate the campaign, significantly enhancing the resilience and competitiveness of the country's industrial chain.

We will further enhance coordination between the supply and demand sides. To further promote industrial integration and development, we will conduct more high-quality thematic activities, release more supply-demand lists, and attract more enterprises to join our campaign.

We will also innovate in how we conduct the campaign, organizing joint, high-level events in large-scale industries and enhancing cooperation to jointly build industrial clusters in regions with relatively sound industrial foundations.

We will continue to create cooperation outcomes. With continuous efforts in supply-demand connection, collaborative support, innovative cooperation, resource sharing, industry empowerment, and industrial integration, we aim to develop a number of effective, replicable cooperation models and create high-quality, influential demonstration projects. The goal is to promote the integrated development of upstream, midstream, and downstream enterprises as well as among big, medium, and small enterprises. Thank you.

Xie Yingjun:

Due to time limitations, we'll take one last question.

Cover News:

As indicated at the Central Economic Work Conference, China will deepen and upgrade its SOE reforms to strengthen their core functions and core competitiveness. 2023 marks the first year for China to implement the campaign for deepening and upgrading the SOE reform. Could you share with us the major progress since the campaign's launch and the future plans for advancing SOE reforms more effectively and substantially? Thank you.

Yuan Ye:

I'll take this last question. The three-year reform campaign from 2020 to 2022 has yielded positive results. The CPC Central Committee with Comrade Xi Jinping at its core has made the strategic plan of deepening and upgrading the SOE reform riding on the current positive momentum.

The latest round of SOE reform has distinctive characteristics of the era. Regarding the reform tasks, they can be broadly categorized into two main aspects. The first one refers to institutional reform, mainly aiming to consolidate the achievements made over the past three years of reform so as to realize the transition from a focus on quantity to a focus on quality. The emphasis is on breaking through some systemic and institutional obstacles that constrain the high-quality development of central SOEs and encouraging enterprises to genuinely operate in accordance with market-oriented mechanisms. The second task pertains to functional reform. It mainly involves the mission and responsibilities assigned by the new journey, focusing on the country's major needs. The goal is to continuously enhance the core functions and improve the core competitiveness of enterprises, effectively leveraging their roles of technological innovation, industrial control, and security support in the construction of a modern industrial system and the establishment of a new development pattern. 

The CPC Central Committee has made top-level designs for the new round of SOE reform, officially issuing the guidelines last year. The State Council has established a specialized work coordination mechanism and convened mobilization and deployment meetings to ensure comprehensive planning. Various regions, departments, and SOEs across the country have regarded the deepening and enhancement of reform as a vital political task. They are actively concentrating on practical measures, organizing support, and initiating the new round of reform with a commitment to a high standard and quality.

Currently, various regions and central enterprises nationwide have developed relevant implementation plans for the reforms. Related work is progressing steadily according to the schedule, and the effects are gradually becoming evident.

For example, in terms of optimizing the layout, over the past year, central SOEs have advanced strategic restructuring through market-oriented approaches, and have established a batch of new enterprises. Some 29 companies signed contracts for specialized integration projects in areas such as ecological and environmental protection, biotechnology, and intelligent connected vehicles. We have further promoted the optimization of resource allocation in this regard, as mentioned by Mr. Li just now. 

For instance, in the establishment of the modern enterprise system with Chinese characteristics, there has been further improvement in the operational standards of corporate boards. The development of external director teams has continued to strengthen, and the enforcement of managerial term limits and contractual management has been enhanced. The expansion and deepening of world-class initiatives such as "Dual Demonstration," "Scientific and Technological Innovation Action," and "Double Hundred Action" are underway, with exemplary enterprises effectively showcasing their leading role in these efforts.

In addition, in terms of improving supervision, we have revised the performance assessment methods for leaders of central SOEs. Specialized differential assessment methods have also been formulated for enterprises engaged in scientific research and design, heavy equipment manufacturing, grain reserves, and other areas. Furthermore, for companies aiming to strengthen technological research and development, promote the transformation of achievements, and develop strategic emerging industries, we have introduced a slew of targeted and effective support policies, striving to create a favorable environment for the high-quality development of enterprises.

This year is a crucial year for implementing deepened and enhanced reform actions, signifying the consolidation of past endeavors and the initiation of new challenges. SOEs will coordinate progress, ensure effective implementation, and strive to make breakthroughs in key and challenging areas. The key areas include the following aspects:

We will deepen reforms to optimize resource allocation. Focusing on serving major national strategies, we will further channel state-owned capital into crucial industries and key sectors vital for national security and the foundational aspects of the national economy. This entails concentration on public services, emergency capabilities, and areas of public welfare essential to the national economy and peoples' well-being. Furthermore, we will broaden our focus to cutting-edge strategic emerging industries. In our work, we will persist in implementing strategic restructuring and specialized integration, refine the budgetary allocation of state-owned capital, intensify efforts in the development of new industries and new tracks, promote the fundamental transformation of traditional industries, and increase the resilience and security of the industrial chain.

We will deepen reforms to enhance institutional mechanisms. On one hand, we will accelerate the refinement of a modern corporate governance system tailored to the characteristics of Chinese SOEs. This includes categorizing and optimizing the "pre-listed matters" of CPC committees (CPC leadership groups) to promote the scientific, rational, and efficient building of the board of directors so as to converting institutional advantages into developmental strengths. On the other hand, we will further improve market-oriented operational mechanisms, enhance the quality and scope of managerial term limits and contractual management, establish a precise, efficient, and orderly income distribution mechanism, and expedite the establishment of modern new SOEs.

We will deepen reforms to strengthen institutional guarantees. We will further clarify the rights and responsibilities of investors in regulatory matters, promoting centralized and unified supervision of operational state-owned assets, and better leverage the advantages of specialized, systematic, rule-of-law, and efficient supervision. We will further optimize the assessment system by implementing tailored evaluations for each enterprise and industry, and improving the precision, scientific basis, and consistency of policy provision. We will establish a coordinated and efficient system for supervising state-owned assets, effectively enhancing regulatory efficiency, safeguarding the security of state-owned assets, and fostering a favorable environment for the reform and development of enterprises.

Thank you.

Xie Yingjun: 

Thank you to all the speakers for the introductions, and also, thank you to all participating media friends. Today's press conference concludes here.

Translated and edited by Zhang Rui, Wang Qian, Xu Kailin, Yuan Fang, Li Xiao, He Shan, Liu Caiyi, Huang Shan, Wang Mengru, Zhang Junmian, Wang Ziteng, Liu Sitong, Zhang Tingting, Liu Qiang, Yan Bin, Wang Yiming, Guo Yiming, Qin Qi, Li Huiru, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

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.