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Read in Chinese

Speakers:

Liu Guoqiang, deputy governor of the People's Bank of China (PBC)

Sun Guofeng, director general of the Monetary Policy Department at the PBC

Zou Lan, director general of the Financial Market Department at the PBC

Ruan Jianhong, director general of the Statistics and Analysis Department at the PBC

Chairperson:

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

Date: 

Jan. 18, 2022

Xing Huina:

Friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Liu Guoqiang, deputy governor of the People's Bank of China (PBC), to brief you on China's financial statistics in 2021 and answer your questions. We are also joined by Mr. Sun Guofeng, director general of the Monetary Policy Department at the PBC; Mr. Zou Lan, director general of the Financial Market Department at the PBC; and Ms. Ruan Jianhong, director general of the Statistics and Analysis Department at the PBC.

Next, let's give the floor to Mr. Liu for a brief introduction.

Liu Guoqiang:

Friends from the media, good afternoon. It is a pleasure for me to attend this press conference. I will first make a brief opening introduction on the financial work in the past year and our plans for the next step.

Since the 18th National Congress of the Communist Party of China (CPC), guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the PBC has implemented the decisions and plans of the CPC Central Committee and the State Council, followed the overall arrangement of the Financial Stability and Development Committee under the State Council, remained committed to the general principle of pursuing progress while ensuring stability, and implemented a prudent monetary policy, which have contributed to China's decisive victory in building a moderately prosperous society in all respects. In recent years in particular, monetary policy has continuously helped improve the quality and efficiency of serving the real economy and promoted China to lead globally in economic development.

In 2021, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the PBC resolutely implemented the decisions of the CPC Central Committee and the State Council and enhanced cross-cycle adjustments in light of China's economic conditions. In the first half of the year, there were many positive factors in the operation of the domestic economy. The PBC maintained reasonable and ample liquidity, made good use of relending and two direct tools, that is, the inclusive loan repayment extension support tool and inclusive credit loans to micro and small businesses (MSBs), optimized the supervision of deposit interest rates, and raised the reserve requirement ratio (RRR) for foreign currency deposits by 2 percentage points. While guiding credit growth back to normal, efforts have also been made to optimize the credit structure and reduce financing costs. In the second half of last year, domestic economic development faced triple pressures of shrinking demand, supply shocks and weakening expectations. The PBC coordinated cross-year policies to give full play to the dual functions of monetary policy tools in terms of volume and structure. In July, the RRR was cut by 0.5 percentage point across the board, releasing 1 trillion yuan in long-term liquidity, helping to bolster the real economy and paving the way for a sustained and stable economic recovery in the second half of the year. In August, a symposium analyzing monetary and credit conditions was held to guide financial institutions to enhance the stability of total credit growth. In September, the PBC raised the quota of special central bank lending by 300 billion yuan to support locally incorporated banks to increase loans to MSBs and self-employed businesses. In November, carbon emission reduction support instruments and a special relending facility worth 200 billion yuan was launched to increase the overall energy supply capacity and promote the clean and efficient use of coal. In December, we cut the RRR by another 0.5 percentage point, releasing about 1.2 trillion yuan in long-term funds. The two RRR cuts in the middle and at the end of the year released a total of 2.2 trillion yuan in long-term funds; symposiums analyzing monetary and credit conditions of financial institutions were held to guide financial institutions to make cross-cycle credit arrangements for the end of the year and the beginning of next year; the PBC also lowered the interest rate of the relending program for the agricultural sector and small businesses by 0.25 percentage point and the one-year loan prime rate (LPR) was lowered by 0.05 percentage point, which helped the comprehensive financing costs of businesses remain stable and fall moderately; the PBC converted two direct tools into market-based policy tools to support micro and small business and support financing of micro, small and medium-sized enterprises (MSMEs); the PBC raised the RRR for foreign currency deposits of financial institutions by 2 percentage points and maintained the basic stability of the yuan exchange rate at a reasonable and balanced level. In the past year, we had a busy schedule but remained organized. Every month, we made arrangements with the clear purposes of promoting steady growth while taking into account structural optimization, in particular, in the second half of the year. 

In general, the 2021 monetary policy was flexible, accurate, proper and moderate. It was more forward-looking, stable, targeted, effective and self- directed. China's major financial indicators maintained strong growth on top of the high base of 2020. The financial system operated steadily and the financial support for the real economy was solid. In 2021, new yuan loans reached 19.95 trillion yuan, a year-on-year increase of 315 billion yuan. By the end of 2021, the M2 and aggregate financing increased by 9% and 10.3% year-on-year, respectively, basically matching the nominal economic growth rate. On the two-year average, the M2 and aggregate financing grew by 9.5% and 11.8%, respectively, which basically matched and were slightly higher than the average nominal economic growth rates in 2020 and 2021. By the end of 2021, the macro leverage ratio was 272.5%, down 7.7 percentage points from the end of the previous year, and remained basically stable. The interest rates for corporate loans in 2021 stood at 4.61%, a decrease of 0.1 percentage point from 2020 and a decrease of 0.69 percentage point from 2019, which was the lowest level since reform and opening up began. By the end of 2021, the balance of medium and long-term loans to the manufacturing sector increased by 31.8% year-on-year, 20.2 percentage points higher than the growth rate of all loans. By the end of 2021, the balance of inclusive loans to micro and small business increased by 27.3% year-on-year, benefiting more than 44 million MSBs. The weighted average interest rate of newly issued inclusive loans to MSBs in November was 4.98%, 0.1 percentage point lower than that of December 2020. 

In 2022, the PBC will implement the spirit of the Central Economic Work Conference, prioritize stability, and pursue progress while ensuring stability. We will maintain a prudent monetary policy that is flexible and appropriate, step up cross-cycle adjustment, and give full play to the dual functions of monetary policy instruments both in terms of volume and structure. We will be more proactive and enterprising, enhance our policy predictability and guide financial institutions to increase support for the real economy — especially for small and micro businesses, scientific and technological innovation, and green development, so as to ensure stable operation of the macro economy, as well as foster an appropriate monetary and financial environment for high-quality economic development

Specifically, the PBC's work will focus on the following aspects:

First, maintaining stable credit growth. We will use multiple monetary policy tools to maintain liquidity at a reasonable and ample level, ensure stable credit growth, and guide financial institutions to increase the credit supply so as to ensure the money supply and social financing expansion will basically match the nominal economic growth rate.

Second, steadily improving the credit structure. We will broaden the use of structural monetary policy instruments, implement market-based policy tools to support small and micro businesses, and make good use of the supporting tools for carbon reduction and special reloans for the clean and efficient use of coal. Financial institutions will be guided to increase the credit supply to areas where credit growth is slow and improve the credit structure. Targeted measures will be adopted to increase credit support for key areas and weak links.

Third, steadily reducing overall financing costs for enterprises. We will improve the market-based interest rate mechanism and transmission mechanism, give play to the reform of the LPR mechanism, and stabilize the costs of bank debt, so as to steadily reduce enterprises' overall financing costs and encourage the financial system to transfer profits to the real economy.

Fourth, keeping the yuan exchange rate generally stable at an appropriate and balanced level. We should let market supply and demand play a decisive role in the formation of the yuan exchange rate, and give full play to the exchange rate's role as an automatic stabilizer in adjusting the macro economy and international payments. There are many factors affecting the exchange rate. The exchange rate's uncertainty is inevitable, while its two-way fluctuations are normal. Enterprises and financial institutions should establish the concept of "risk-neutral." Financial institutions should actively provide exchange-rate risk-management services for MSMEs, in order to reduce their costs of hedging exchange-rate risks. Our goal is to keep the yuan exchange rate generally stable at an appropriate and balanced level. Although the exchange rate may deviate from the equilibrium level in the short term, market and policy factors will correct the deviation in the mid- and long-term. Thank you.

Xing Huina:

Thanks for the introduction from Mr. Liu. Now the floor is open to questions. Please indicate the media organization you work for before raising a question.

CCTV:

My question is, in order to prioritize stability, how will the PBC implement the spirit of the Central Economic Work Conference to enhance policy predictability when exerting the role of monetary policies? Thank you.

Liu Guoqiang:

In 2021, we maintained a prudent monetary policy that was flexible, precise, reasonable and appropriate, and took initiative measures in the second half of the year. We cut the RRR by 0.5 percentage point in July, responding early to downward pressure on the economy and paving the way for sustained and steady economic recovery in the second half of 2021 and in the first quarter of 2022. The Central Economic Work Conference proposed that policy efforts should be appropriately advanced. Following the deployments of the CPC Central Committee and the State Council, the PBC launched a series of measures in December 2021, especially after the Central Economic Work Conference. We cut the RRR by 0.5 percentage point, convened a symposium on analyzing the monetary and credit situation for financial institutions, cut off 25 basis points in the interest rates of the re-lending facility supporting agricultural and small businesses, lowered the one-year LPR by 5 basis points, and transferred the "two direct tools" to market-based policy tools for supporting small and micro enterprises. One of the direct tools is the inclusive loan extension support tool. During the special period of the epidemic, we asked financial institutions to extend their loans to enterprises eligible for relative policies and simultaneously provided certain policy incentives. The other tool is the inclusive credit loan support program. At present, China has entered a new normal in economic development while epidemic prevention and control are being conducted on an ongoing basis. Therefore, the two direct tools should be transferred to market-based policy tools. In the past, the policy was based on requirement and policy incentives; whereas now, it's based on a voluntary and incentive mechanism. Financial institutions and enterprises are encouraged to communicate on their own. If the financial institution would like to extend its loans, we will provide certain policy incentives. We will step up cross-cycle adjustment to support economic growth in 2022.

Currently, the economy faces three kinds of pressure. Therefore, maintaining stability is the biggest progress. Before fundamentally easing the economic downward pressure, progress should serve stability. We will not roll out policies that aren't beneficial to stability but release policies that are conducive to stability so that progress can promote stability. Simply put, the priority goal of our current work is stability, and policy support should be redoubled. How to redouble policy support? I think efforts can be made in the following three aspects. First, ample support. The monetary policy tool kits should be further opened to maintain stable aggregates and avoid credit collapse. Second, targeted support. We should attain to the broad and great while addressing the delicate and minute. The financial sector should not only passively wait for clients at their doorsteps, but need to go out and actively look for good projects, which is an effective way of optimizing economic structures, in line with the requirements of the new development philosophy. Third, proactive support. Though it is still the beginning of the year, we should lose no time and act proactively as a year is short. We should stay ahead of the market curve, and respond to common market concerns in a timely manner. We should not procrastinate. Otherwise, market concerns will fall through and go away. If that happened, it would be a difficult situation. Therefore, we should act in advance and promptly respond to common market concerns. 

Under the strong leadership of the CPC Central Committee and the State Council, all parties are making efforts. I believe that we will also find a year quite long and the downward pressure of the economy will become a story of the past within several months. What efforts will be made?

First, maintain stable growth of the aggregate. We will use comprehensive monetary policy instruments to keep liquidity adequate at a reasonable level. Money and credit aggregates will grow at a more stable pace to ensure the increases in money supply and aggregate financing are generally in step with economic growth in nominal terms.

Second, promote steady structure improvements. We should innovate and give good play to structural monetary policy instruments and ramp up credit support for MSBs, technological innovation and green development. 

Third, promote steady decline of the financing costs for enterprises. We will continue to unleash the benefits of the LPR reform, maintain fair competition in the deposit market and stabilize bank liability costs. It is important to maintain orderly competition within the deposit market. If the competition in the deposit market is disorderly, the deposit interest rate will be very high. Low-quality banks and those that perform poorly usually find it hard to attract deposits, so they attempt to lure depositors with high deposit interest rates. Other banks will have to follow. This way, the order of the deposit market and the deposit interest rates will be misguided by those poorly-performing banks. Therefore, deposit order is crucial. Besides, if the deposit interest rate was too high, it would be hard to reduce the loan interest rate and the financing costs of enterprises. That is why we make great efforts to maintain the order of the deposit market, stabilize bank liability costs and promote a steady decline of the overall financing costs for enterprises, especially MSBs.

The Paper.cn:

The PBC and other financial management authorities have taken some measures in response to new situations and new changes in the real estate market. What about the effects? Thank you. 

Zou Lan:

In the second half of 2021, the risks of individual real estate enterprises such as China Evergrande Group appeared. Affected by that, all kinds of real estate market entities tended to avoid risks and financial institutions demonstrated short-term stress responses. According to the arrangements of the CPC Central Committee and the State Council, the financial management departments took swift actions and carried out the following work. First, upholding law-based and market-based principles, we cooperated with the Guangdong provincial government, as well as relevant departments and local governments to defuse the risks of those enterprises. Second, we instructed financial institutions in the banking industry to get a precise understanding of, and comply with, the prudential management system of real estate financing. The banking industry should maintain an orderly and stable supply of real estate credits and meet the reasonable financing needs of the real estate market. Third, the PBC released its Notice on Financial Services for Mergers and Acquisitions of Risk Disposal Projects of Major Real Estate Enterprises to guide financial institutions to support risk dissolution and industry clearing in market-based manners. 

Through the concerted efforts of all parties, recently, real estate sales, land purchases and financing, among other areas, have gradually returned to normal. The market expectations have steadily improved. According to statistics, at the end of 2021, outstanding real estate loans nationwide were 52.2 trillion yuan, up by 7.9% year on year, a growth rate 0.3 percentage points higher than at the end of September. Specifically, new real estate loans in the fourth quarter last year hit 773.4 billion yuan, an increase of 202 billion yuan year on year, and 157.8 billion yuan over the third quarter. 

Going forward, the PBC will firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, follow the principles of the Central Economic Work Conference, and act on the principle that housing is for living in, not for speculation. Following the requirements to explore a new development model, we will put in place a long-term mechanism for the real estate industry and maintain the continuity, consistency and stability of real estate financial policies. The PBC will continue to implement the prudential management system of real estate finance, ramp up financial support for rental housing and adopt city-specific policies to ensure a virtuous cycle and healthy development of the real estate sector. Thank you. 

South China Morning Post:

The PBC on Monday unexpectedly cut the interest rates of its medium-term lending facility (MLF) loans and the open market reverse repo rate. Does this mean a new round of easing cycle is unfolding? Will it be followed by a corresponding LPR cut within the week? Meanwhile, the Federal Reserve hinted at quicker tapering and interest rate hikes. Is the PBC worried about the impacts brought by the monetary policy divergence between China and the U.S., including capital outflow or yuan depreciation? Is there any detailed arrangement for China-U.S. macro-policy coordination? Thank you.

Sun Guofeng:

This year, the PBC has strengthened cross-cyclical adjustments and stepped up liquidity injection. On Jan. 17, the PBC cut the interest rates of its one-year MLF loans and seven-day open market operations by 10 basis points, which was followed by corresponding reductions to the interest rates in the money market and the bond market. Before the new LPR was disclosed, quotation banks gave comprehensive consideration to factors such as capital costs, risk premiums and the market supply and demand, so that the LPR would promptly and fully reflect interest rate changes in the market, encourage financial institutions to lower their interest rates on loans for enterprises and promote a reduction in overall financing costs for enterprises. We have noticed the recent monetary policy adjustments by major developed economies, and the market expects that the Fed will raise interest rates and shrink its balance sheet. China's macro-economy is big and highly resilient. We have been implementing normal monetary policies since the outbreak of the pandemic. Instead of using a deluge of stimulus policies, we properly organized cross-cyclical regulation, kept liquidity reasonably ample and provided solid financial support for the real economy. China's financial system has become more stable and domestically driven. The yuan exchange rate expectations are also stable. All of this will help mitigate and respond to external risks. In general, policy adjustments by major developed economies will have a limited effect on our economy.

Next, the PBC will prioritize stability and work according to China's conditions. We will implement prudent monetary policies with the proper force and pace based on domestic situations, while increasing the yuan exchange rate's resilience to give full play to the role of the exchange rate as an automatic stabilizer capable of adjusting the macro-economy and the balance of payments. We will also encourage market entities to establish a "risk-neutral" attitude, strengthen the macro and prudent management of cross-border capital flow, better manage expectations, maintain basic stability in the yuan exchange rate, and respond to monetary policy adjustments by major developed economies in a proactive and prudent manner. Thank you.

21st Century Business Herald:

What were the structural features of total social financing (TSF) in 2021? What's your forecast for the TSF and credit increase in 2022? Thank you.

Ruan Jianhong:

I will answer your questions. In 2021, total new social financing reached 31.35 trillion yuan, a reduction of 3.44 trillion yuan from the 2020 level and an increase of 5.68 trillion yuan from the 2019 level. The figures reflect that finance still played a big role in supporting the real economy. By the end of 2021, total outstanding social financing had risen 10.3% year on year, which is consistent with the nominal GDP growth.

In terms of the TSF structure, the first feature is that loans from financial institutions to the real economy remained stable. In 2021, loans in yuan and foreign currencies to the real economy increased by 20.11 trillion yuan, roughly in line with the 2020 level and an increase of 3.36 trillion yuan from the 2019 level.

Second, bond financing returned to normal level and stock financing saw accelerated growth. In 2021, government bond financing reached 7.02 trillion yuan, a reduction of 1.31 trillion yuan from the 2020 level. This was because the government had issued one trillion yuan of special anti-pandemic bonds in 2020, while in 2021, the bond issuance returned to normal conditions. Bond financing by non-financial companies reached 3.29 trillion yuan, down by 1.09 trillion yuan from the 2020 level. Domestic stock financing by non-financial companies reached 1.24 trillion yuan, up by 343.4 billion yuan from the 2020 level.

Third, off-balance-sheet financing declined notably. In 2021, off-balance-sheet financing, including entrusted loans, trust loans, and undiscounted bankers' acceptances, declined by 2.67 trillion yuan, 1.35 trillion yuan more than 2020's decrement.

In 2022, the PBC will fully implement the principles of the Central Economic Work Conference and maintain a prudent monetary policy that is flexible and moderate. We will also maintain reasonable and ample liquidity, and ensure that the growth of TSF is basically in keeping with GDP growth in nominal terms. Thank you.

Economic Daily:

My question is – just yesterday, the PBC cut interest rates for reverse repo operations and MLF by 10 basis points, so I'm curious what this cut is for? And what will the effect be after lowering interest rates? Thank you. 

Sun Guofeng:

The MLF and open market reverse repurchase are carried out by market-based bidding. The winning interest rate is generated by participating bidding institutions, and the interest rate level depends on various factors such as the liquidity of the banking system, financial institutions' demand for central bank funds and market expectations. Since the beginning of this year, the PBC has implemented the spirit of the Central Economic Work Conference, strengthened cross-cycle adjustment and increased liquidity delivery. On Jan. 17, the PBC launched a 700 billion yuan one-year MLF operation and conducted 100-billion-yuan seven-day open market reverse repo operations to increase liquidity supply, and to hedge against the impact of short-term factors such as the peak of the tax period in January, accelerated issuance of government bonds and cash injection before Spring Festival, in order to maintain reasonable and sufficient liquidity. So the PBC promoted the MLF and open market reverse repurchase bid rates, which both fell by 10 basis points. Specifically, the winning bid interest rate for the one-year MLF dropped from 2.95% to 2.85%, and the winning bid rate for the seven-day open market reverse repurchase operation dropped from 2.2% to 2.1%.

These recent cuts in interest rates for the MLF and open market reverse repo operations reflect actions by the monetary policy proactively pushing things forward, which is conducive to boosting market confidence. The operations would reduce corporate loan interest rates through the LPR conductivity, facilitate the decline in bond interest rates and promote comprehensive financing costs of enterprises to be stable with a decline. This will help stimulate the financing needs of market entities, enhance the stability of total credit growth, support the issuance of government bonds and local government bonds, stabilize the broader economy and maintain a balance between internal and external equilibrium. Thank you.

Yicai:

Recently, the financial data released by the central bank has shown a rapid decline in the growth rate of social financing. We have paid attention to the research reports issued by some securities companies, in which they believe that financing should be properly stimulated next year to resume growth. In your opinion, is the leverage ratio likely to stabilize and pick up next year? Thank you.

Liu Guoqiang:

Let me answer this question. In 2021, against the backdrop of scientific and effective pandemic prevention, remarkable results were achieved in stabilizing leverage and promoting growth. In 2021, China's macro leverage ratio was 272.5%, 7.7 percentage points lower than that at the end of 2020. If viewed from a quarterly perspective, the leverage ratio has declined for five consecutive quarters. There are both numerator and denominator factors that affect the macro leverage ratio. The numerator is the total debt, and the denominator is the gross domestic product (GDP). That is to say, the macro leverage ratio is total debt divided by GDP. In terms of the numerator, the total debt level was generally stable last year, while in terms of GDP as the denominator, it expanded significantly last year, and the growth rate is relatively fast. Especially compared with 2020, the GDP growth rate has accelerated significantly, which has a very prominent effect on reducing leverage. China's pandemic prevention and control are effective, the national economy continues to recover and development resilience continues to increase. When these factors are brought into play, GDP growth will be faster, the denominator will be larger and the macro leverage ratio will drop.

It is expected that the macro leverage ratio will remain basically stable in 2022. According to the Central Economic Work Conference, the economic work for 2022 should prioritize stability and seek progress while maintaining stability. Macroeconomic policies must be stable and effective to enhance developing the endogenous driving force. The current macro leverage ratio continues to decline, creating space for the financial system to increase support for MSBs, technological innovation and green development in the future. The decline in macro leverage over the five consecutive quarters has created room for future monetary policies, and, the lower the leverage, the greater the room. From an international perspective, China's pandemic prevention and control situation is relatively good, and economic growth is relatively resilient. It is expected that China's economic growth this year will still be faster than that of major developed economies. In this case, the denominator will remain relatively large, which will create conditions for better maintaining the macro leverage ratio in the future. We will adhere to systematic thinking, overall planning and coordination, base ourselves on serving high-quality economic development and implement cross-cycle monetary policy. Thank you.

CNBC:

I have two questions. First, what are the favorable policies for housing purchase and loans? Second, what progress has been made in digital RMB piloting programs and research and development? For example, is there any information on the daily transactions and active users to share? What new application scenarios will digital RMB have for consumption among others? More foreigners will come to China during the Beijing 2022 Winter Olympics, and will there be any attempt to employ it then? Thank you.

Zou Lan:  

I will answer the second question first. At present, the PBC has launched pilot digital RMB programs in places including Shenzhen, Suzhou, Xiongan New Area, Chengdu, Shanghai, Hainan, Changsha, Xi'an, Qingdao, and Dalian, and built pilot scenarios for the Beijing 2022 Winter Olympics, basically covering the Yangtze River Delta, the Pearl River Delta, and Beijing-Tianjin-Hebei region as well as central, western, northeastern, and northwestern China. As of December 31, 2021, the number of digital RMB pilot scenarios had exceeded 8.0851 million, and individual wallets had totaled 261 million, with 87.565 billion yuan in transactions. The pilot programs have effectively verified the business technical design, system stability, easy use of products, and scenario applicability of digital RMB, and helped the public better understand its design concept.  

Next, the PBC will act in accordance with the 14th Five-Year Plan (2021-2025), continue to steadily pilot digital RMB R&D, and further deepen the pilot use of digital RMB in retail transactions, household payments, government services, and other scenarios. The PBC will guide the pilot R&D of digital RMB to serve the real economy and people's lives so as to make more enterprises and individuals recognize the value of digital RMB and fully stimulate the enthusiasm of industrial players.  

Your first question is about the housing purchase policy. Being region-based is one of the core features of the real estate. Under the management framework of long-term real estate mechanisms, it is more important for municipal governments to assume their responsibilities and conduct city-specific real estate regulations based on the local markets. Therefore, you can ask the municipal governments for more information about the home purchase policy. As for the home loans policy, as I said before, we will still act on the principle that houses are for living in, not for speculation, and maintain basic stability in line with the long-term mechanism. We will stabilize land prices, housing prices and expectations – the priority of stabilizing expectations is to keep policy expectations steady. Indeed, as I mentioned before, various parties, especially some financial institutions, reacted to market changes based on their judgment of market trends and risk evolution in the second half of last year. As a result, since September last year, the PBC has, along with other financial management departments, strengthened communication with related financial institutions to help them accurately understand and assess market situations and better implement prudent financial regulation of the real estate so as to meet the reasonable financing needs of the real estate market. Thank you.  

Phoenix TV:  

I also want to focus on monetary policy. Yesterday, the PBC cut the interest rates. How does the PBC view the possibility of a further RRR cut? Specifically, is it possible to further cut the RRR in January? Is there any room to cut interest rates in the first quarter? Thank you.

Liu Guoqiang:

Thank you for your question, I will answer it. Regarding interest rates, with the steady progress of market-based interest rates reforms, especially since the LPR reform in 2019, China has gradually improved the formation, regulation, and transmission mechanisms of market-oriented interest rates. There are two perspectives to view the state of interest rates next. One is to look at the actual changes in interest rates of loans, which means just looking at the results. Since 2021, the PBC has continued to optimize the LPR reform, improved the transmission mechanism of monetary policy, and enhanced the competitiveness of the credit market. As a result, the actual interest rates of loans have decreased while maintaining stability on the basis of a substantial decline in the previous year. Throughout 2021, the interest rates of loans for enterprises stood at 4.61%, the lowest level since the reform and opening-up more than 40 years ago.  

The other angle is to look at factors affecting interest rates or to analyze the reasons behind the changes. LPR is the market-quoted interest rate for loans that banks charge their prime customers. Factors like funding cost, market supply and demand, and risk premium may affect LPR, while the interest rate of open market operations, MLF rate, and the regulation of deposit interest rate may affect funding cost. Since 2021, the PBC has strengthened cross-cyclical adjustment, cutting down the RRR twice, in July and December, to maintain liquidity at a reasonably sufficient level. We improved self-discipline management of deposit interest rates in June, and cut interest rates for relending in the agriculture sector and small enterprises by 0.25 percentage point in December. These policies have effectively lowered funding costs for banks and driven the one-year LPR of last December down by 5 basis points. The rationale is that the reduction of funding costs for banks would lead to a decrease in interest rates for loans. On Jan. 17 this year, the PBC increased liquidity, bringing down the bid rate of both the seven-day open market operations and the one-year MLF by 10 basis points. Interest rates in the monetary market and the bond market have thus fallen. In two days, on Jan. 20, commercial banks will offer their best interest rates for loans. Sensitive to factors such as funding costs, the banks will do so by making timely references to their latest changes.

I would like to take this opportunity to make some explanations about LPR. It is a general term, and there is no LPR by industry. There are two types: one-year and five-year. Financial institutions generally refer to one-year LPR in terms of extending liquidity loans, or short-term loans, to businesses, and refer to five-year LPR in issuing medium- to long-term loans, such as loans to the manufacturing sector, fixed asset investment loans, and loans for individual home purchases, and other loans with relatively long terms, which is the bases for which their interest rates are quoted. As a macro variable, LPR does not change in an industry-specific manner. In other words, it affects all industries instead of targeting individuals, and it is a general and inclusive term, rather than being tailored for any single person, but its fluctuations affect everyone. That is why it is inclusive rather than targeting any specific industry or individual.

As for the RRR, the PBC cut it by 0.5 percentage point in July and December 2021, freeing up 2.2 trillion yuan of long-term funds. The funds improved the funding structure of financial institutions and demonstrated the financial sector's capacity to serve the real economy. After cutting the RRR, the current average RRR for financial institutions stands at 8.4%. It is no longer high compared to other developing economies or China's historical figures and leaves less room for further adjustment going forward. Yet from another point of view, there is still a certain amount of space, though it is narrower, which we can make use of in light of economic and financial performance as well as macro regulation needs. Thank you.

Bloomberg:

I have two questions. My first question is, what will be the impact of divergence in interest rates between the U.S. and China, as the federal reserve starts to rise? Will monetary policy divergence have an effect on the exchange rate and how will you deal with that? My second question is, do you think corporate borrowing demand is weak based on the December data? We saw a lot of very short-term loans being made between banks and banks making very short-term loans to companies. Do you think the company loan demand is fundamentally weak? Thank you.

Sun Guofeng:

Let me take these two questions. Regarding your first question, China adopts a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. Future yuan exchange rates are subject to many factors, including market supply and demand and international market trends, with the former playing a decisive role in forming the exchange rate. Fluctuations in the exchange rate are mainly determined by the market and make the yuan either appreciate or depreciate. With its enhanced elasticity and two-way fluctuations, the yuan exchange rate serves as an automatic stabilizer of the macro-economy and the international balance of payment and contributes to the balance between the internal and external equilibrium. Cross-border flows of funds may fluctuate to some extent with changes in the international financial market, but China's super-large economy sustains a sound domestic economy, which provides a good foundation for maintaining the internal and external equilibrium.

Generally, cross-border financial flows would maintain a dynamic equilibrium. Next, the PBC will prioritize stability and pursue a prudent monetary policy that is flexible and modest. We will place our situation at the center, and give play to the role of yuan exchange rates adjusting the macroeconomy and acting as the automatic stabilizer for international payment balance. We will strengthen macro-prudential management of the cross-border flow of capital, intensify expectation management, guide enterprises and financial institutions in cultivating a "risk-neutral" concept, balance the domestic and international equilibrium and keep the yuan exchange rates basically stable at a reasonable and balanced level. 

Now I rely to the second question. Since 2021, we have adopted a prudent monetary policy that is flexible, precisely-targeted, reasonable and modest. In the face of downward pressure from contracted demands, supply shock and diminished expectations, the PBC – beginning in the second half of 2021 – has enacted forward-looking measures including cutting the RRR, increasing the reloan quota for small financial institutions, rolling out supportive tools for carbon reduction and offering reloans to promote clean and efficient use of coal, so as to intensify the financial support for real economy. Since December, in line with the arrangements of the Central Economic Work Conference, the PBC has further intensified cross-cycle adjustments to ensure the policy cohesion between two years. We have cut the RRR by 0.5 percentage points again and guided financial institutions in increasing the stability of growth in the volume of loans. The PBC has lowered its one-year LPR by five basis points, and actively leveraged structural monetary policy tools to do a good job of "addition," and carried out the extension and transformation of two direct tools. These measures have been beneficial to the stabilization of the credit supply and the optimization of the credit structure in 2021 and ensuring a steady start in 2022. The volume of new loans stood at 19.95 trillion yuan in 2021, up 315 billion yuan year-on-year. This was a further growth considering that the volume of new loans had increased by 2.8 trillion yuan year-on-year from 2019 to 2020 and this showed that the financial support for real economy has continued to intensify. The volume of loans had increased significantly from 2019 to 2020 on a year-on-year basis, so the increase in 2021 was a further growth from that. In December 2021, new loans of the month reached 1.13 trillion yuan, rising slightly on a year-on-year basis, mainly due to the fact that financial institutions had expanded their credit supplies to fight against COVID-19 in 2020 and thus created a relatively high base. Historically, the amount of loans in December is often small, and the average volume of new loans was less than 1 trillion yuan in December from 2016 to 2019. So, the loans in December 2021 still increased compared with the years before the outbreak of COVID-19, showing the results achieved by introducing relevant policies at an early stage. Since the beginning of this year, the PBC has strengthened cross-cycle adjustment, increased liquidity, lowered the median interest rate by 10 basis points for the MLF and open market operations, helping spur financing needs of market entities and increase the stability of credit growth. 

Next, the PBC will prioritize stability and pursue a prudent monetary policy that is flexible and modest. We will increase the intensity of cross-cycle adjustments, better play monetary policies' role in volume and structure regulation, maintain reasonably adequate liquidity and guide financial institutions in effectively increasing credit availability. With the effects of a variety of policies adopted by the PBC emerging and accumulating, financial institutions will increase loans to the real economy. Growth of credit supplies will be more stable, while more credit resources will be channeled to key areas and weak links such as small and micro enterprises, scientific and technological innovation, and green development, among others, so as to ensure that money supply and social financing are generally in step with the economic growth in nominal terms. Thank you!

Ruan Jianhong:

I will add some data for the second question. The amount of outstanding domestic and foreign currency loans to enterprises and institutions increased 11 percent at the end of last year, 1.4 percentage points lower than the previous year, but 0.5 percentage points higher than in 2019. The amount of new loans to enterprises and institutions added 12.14 trillion yuan for the whole year and was roughly the same as the previous year. The amount of medium and long-term loans added 9.24 trillion yuan, up 464.2 billion yuan year-on-year. 

In terms of the actual flow of medium- and long-term loans, the scale of support provided by financial institutions to key sectors is still consistent and stable, which is reflected in the following aspects:

First, the manufacturing industry's medium- and long-term loans maintained rapid growth. As of the end of 2021, the manufacturing industry's medium- and long-term loans grew 31.8%, 18.1 percentage points higher than the growth rate of such loans for all industries. In 2021, loans for the manufacturing industry increased by 1.67 trillion yuan, 300.5 billion yuan more than the previous year. Specifically, the growth rate of medium- and long-term loans for the high-tech manufacturing industry was 32.8% in 2021, 364.3 billion yuan more than the previous year.

Second, the industrial sector's medium- and long-term loans saw a relatively high growth rate. As of the end of 2021, the industrial sector's medium- and long-term loans increased 22.6%, 2.6 percentage points higher than the previous year's end. The sector saw 2.49 trillion more medium- and long-term loans in 2021, increasing 650.3 billion yuan year-on-year.

Third, the infrastructure sector's medium- and long-term loans sustained a steady and robust growth rate. As of the end of 2021, this growth rate was 15.3%, 1.1 percentage points higher than the previous year's end. A total of 3.82 trillion yuan of medium- and long-term loans was added to the infrastructure sector in 2021, increasing 734.6 billion yuan year-on-year.

Fourth, the service industry's medium- and long-term loans, excluding the real estate sector, have kept growing fast. Its growth rate reached 15.4% as of the end of 2021, 1.7 percentage points higher than the growth rate of such loans for all industries. A total of 5 trillion yuan of medium- and long-term loans was added to this industry in 2021, 261.8 billion yuan more than the previous year. Thank you.

Liu Guoqiang:

Regarding the first question on the exchange rate, I would like to make a few more points for your reference. Observing the trend of the exchange rate is getting tougher and tougher nowadays. In the past, the exchange rate fluctuations between the yuan and the U.S. dollar were rather regular, as they sat on the opposite ends of a seesaw. This meant that when the U.S. dollar appreciated, the yuan would be devalued relatively. Still, there were several cases in 2021 when the U.S. dollars appreciated while the yuan showed a stronger trend. This seems unreasonable and makes short-term observation even more difficult. However, it can still make sense. For instance, China's economy posted fast growth last year with a relatively high trade surplus, and the expectations for China's economy were rather promising at the early stage. Therefore, the yuan appreciated, which led to a situation where the U.S. dollar appreciated while the yuan got even stronger. Nevertheless, if we look at the longer span of time, the situation will make more sense, and the fluctuations are still reasonable, balanced, and reciprocal. Thus, the exchange rate fluctuations remain consistent and stable, and relevant rules haven't changed in the long run, only that the calculation and forecast in the short term have become difficult. 

In addition, China is one of the major countries in the world. A continued unilateral appreciation or devaluation rarely occurs in big countries, and it will never happen in China. This is due to our sound macro regulation. Instead of flooding China's economy with liquidity, we have been following economic rules, and our micro-market mechanism proves to be effective. As a result, although there may be some interferences, the exchange rate fluctuations between the yuan and the U.S. dollar are generally reasonable, balanced, and stable on the whole. Thank you.

Xing Huina:

Thank you to today's speakers for their professional and detailed response and introduction. Today's press conference is at this moment concluded. Thank you to all our friends from the media.

Translated and edited by Lin Liyao, Wang Wei, Li Xiao, Li Huiru, Zhang Rui, Liu Qiang, Zhang Tingting, Liu Sitong, Zhu Bochen, Wang Yiming, He Shan, Xu Xiaoxuan, Zhang Jiaqi, Wang Qian, Yuan Fang, Liu Jianing, David Ball, Jay Birbeck, Drew Pittock and Tom Arnstein. 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:

Ning Jizhe, commissioner of the National Bureau of Statistics

Chairperson:

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

Date: 

Jan. 17, 2022

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. Ning Jizhe, commissioner of the National Bureau of Statistics (NBS), to introduce China's economic performance in 2021, and answer your questions. Now, I would like to give the floor to Mr. Ning.

Ning Jizhe:

Friends from the media, good morning. In 2021, faced with multiple challenges including a grave and complex international environment and sporadic outbreaks of the pandemic 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 fully implemented the policy decisions and plans of the CPC Central Committee and the State Council, adhered to the general working guideline of making progress while maintaining stability, coordinated epidemic prevention and control work with socio-economic development, took solid steps to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment and market expectations) and security in the six areas (employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations), strengthened the macro polices for cross-cyclical adjustment, and increased the support to the real economy. As a result, national economic recovery and development were sustained, reform and opening-up and innovation were further advanced, people's livelihoods were strongly and effectively safeguarded, new strides were made in building a new development pattern, and new achievements were secured in high-quality development, thus kicking off a good start for the 14th Five-Year Plan.

According to preliminary estimates, the gross domestic product (GDP) was 114.37 trillion yuan in 2021, an increase of 8.1% over the previous year at constant prices with average two-year growth of 5.1%. By quarter, the GDP for the first quarter went up by 18.3% year on year, up by 7.9% for the second quarter, 4.9% for the third quarter and 4% for the fourth quarter. By industries, the value added of the primary industry was 8.31 trillion yuan, up by 7.1% over the previous year, that of the secondary industry was 45.1 trillion yuan, up by 8.2% and that of the tertiary industry was 60.97 trillion yuan, up by 8.2%.

First, grain output reached a new high and production of animal husbandry grew steadily.

The total output of grain in 2021 was 682.85 million metric tons, an increase of 13.36 million metric tons, or up by 2% over the previous year. Of this total, the output of summer grain was 145.96 million metric tons, up by 2.2%, and that of early rice was 28.02 million metric tons, up by 2.7%. The output of autumn grain reached 508.88 million metric tons, up by 1.9%. By crop variety, the output of rice was 212.84 million metric tons, up by 0.5%; wheat, 136.95 million metric tons, up by 2%; corn, 272.55 million metric tons, up by 4.6%; and soybean, 16.4 million metric tons, down by 16.4%. The total output of pork, beef, mutton and poultry in 2021 was 88.87 million metric tons, up by 16.3% over the previous year. Of this total, the output of pork was 52.96 million metric tons, up by 28.8%; beef, 6.98 million metric tons, up by 3.7%; mutton, 5.14 million metric tons, up by 4.4%; poultry, 23.8 million metric tons, up by 0.8%; milk, 36.83 million metric tons, up by 7.1%; and eggs, 34.09 million metric tons, down by 1.7%. At the end of 2021, pigs and breeding sows registered in stock were up by 10.5% and 4%, respectively, compared with the end of 2020.

Second, industrial production experienced sustained development and high-tech manufacturing and equipment manufacturing enjoyed fast growth.

The total value added of industrial enterprises above designated size increased by 9.6% over the previous year, with average two-year growth of 6.1%. In terms of sectors, the value added of mining was up by 5.3%, that of manufacturing was up by 9.8% and that of production and supply of electricity, thermal power, gas and water was up by 11.4%. The value added of high-tech manufacturing and equipment manufacturing went up by 18.2% and 12.9%, respectively, or 8.6 percentage points and 3.3 percentage points faster than that of industrial enterprises above designated size. By products, the production of new energy vehicles, industrial robots, integrated circuits, and micro computer equipment grew by 145.6%, 44.9%, 33.3% and 22.3%, respectively. In terms of ownership, the value added of state holding enterprises grew by 8%, that of share-holding enterprises was up by 9.8%, that of enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan was up by 8.9% and that of private enterprises was up by 10.2%. In December, the total value added of industrial enterprises above designated size grew by 4.3% year on year with an increase of 0.42% month on month. The Manufacturing Purchasing Managers' Index was 50.3%, 0.2 percentage points higher than that of the previous month. In 2021, the national industrial capacity utilization rate reached 77.5%, 3 percentage points higher than that of the previous year.

In the first eleven months of last year, the total profits made by industrial enterprises above designated size were 7.98 trillion yuan, up by 38% year on year with an average two-year growth of 18.9%. The profit rate of the business revenue of industrial enterprises above designated size was 6.98%, up by 0.9 percentage points year on year.

Third, the service sector witnessed sustained recovery with modern service industries demonstrating sound growth momentum.

The tertiary industry experienced fast growth in 2021. In terms of industries, the value added of the information transmission, software and information technology services, accommodation and catering services, and transportation, storage and postal services grew by 17.2%, 14.5% and 12.1% over the previous year respectively, maintaining the restorative growth. In 2021, the Index of Services Production grew by 13.1% compared with that of the previous year with an average two-year growth of 6%. In December, the Index of Services Production grew by 3% year on year. In the first eleven months of last year, business revenue of service enterprises above designated size grew by 20.7% year on year with average two-year growth of 10.8%. In December, the Business Activity Index for services was 52%, 0.9 percentage points higher than that of the previous month. Specifically, the Business Activity Index for sectors like telecommunication, broadcast, television and satellite transmission services, monetary and financial services, and capital market services stayed within the high expansion range of 60% and above.

Fourth, market sales expanded with sales of basic living goods and upgraded consumer goods growing fast.

In 2021, the total retail sales of consumer goods reached 44.08 trillion yuan, up by 12.5% over the previous year with an average two-year growth of 3.9%. Analyzed by different areas, retail sales in urban areas reached 38.16 trillion yuan, up by 12.5%; and retail sales in rural areas stood at 5.93 trillion yuan, up by 12.1%. Grouped by consumption patterns, the retail sales of goods were 39.39 trillion yuan, up by 11.8%; and the income from catering was 4.69 trillion yuan, up by 18.6%. The basic living consumption sustained good momentum of growth, with the retail sales of beverages and grain, oil and food by enterprises above designated size growing by 20.4% and 10.8% over the previous year. The demand for upgraded consumer goods continued to be unleashed, with the retail sales of gold, silver and jewelry and that of cultural and office supplies by enterprises above designated size growing by 29.8% and 18.8%, respectively. In December, the total retail sales of consumer goods grew by 1.7% year on year, or down by 0.18% month on month. In 2021, national online retail sales reached 13.09 trillion yuan, growing by 14.1% over the previous year. Specifically, the online retail sales of physical goods were 10.8 trillion yuan, up by 12%, accounting for 24.5% of the total retail sales of consumer goods.

Fifth, investment in fixed assets continued to increase and investment in manufacturing and high-tech industries maintained a good growth momentum.

In 2021, the investment in fixed assets (excluding rural households) reached 54.45 trillion yuan, up by 4.9% over the previous year with an average two-year growth of 3.9%. Specifically, investment in infrastructure rose by 0.4%, manufacturing was up by 13.5% and real estate development was up by 4.4%. The floor space of commercial buildings sold reached 1.79 billion square meters, up by 1.9%. The total sales of commercial buildings were 18.19 trillion yuan, up by 4.8%. In terms of industries, investment in the primary industry went up by 9.1%; that in the secondary industry was up by 11.3%; and that in the tertiary industry was up by 2.1%. Private investment was 30.77 trillion yuan, up by 7%, accounting for 56.5% of the total investment. The investment in high-tech industries grew by 17.1%, 12.2 percentage points faster than the total investment, of which the investment in high-tech manufacturing and high-tech services grew by 22.2% and 7.9%, respectively. In terms of high-tech manufacturing, the investment in electronics and communication equipment manufacturing and in manufacturing of computers and office equipment grew by 25.8% and 21.1%, respectively. In terms of high-tech services, the investment in e-commerce services and services for transformation of scientific and technological achievements grew by 60.3% and 16%, respectively. Investment in the social sector went up by 10.7% over the previous year. Specifically, the investment in the health sector and education sector went up by 24.5% and 11.7%, respectively. In December, the investment in fixed assets grew by 0.22% month on month.

Sixth, the import and export of goods registered fast growth and the trade structure continues to optimize.

The total value of imports and exports of goods in 2021 amounted to 39.1 trillion yuan, up 21.4% year on year. Specifically, the total value of exports reached 21.73 trillion yuan, up by 21.2%; and that of imports was 17.37 trillion yuan, up by 21.5%. The trade balance was 4.37 trillion yuan in surplus. The imports and exports of general trade grew by 24.7%, accounting for 61.6% of the total value of foreign trade, an increase of 1.6 percentage points over the previous year. Imports and exports from private enterprises grew by 26.7%, accounting for 48.6% of the total value of foreign trade, two percentage points higher than that of the previous year. In December, the total value of imports and exports of goods was 3.75 trillion yuan, up by 16.7% year on year. Specifically, the total value of exports in December was 2.18 trillion yuan, up by 17.3%; and that of imports was 1.57 trillion yuan, up by 16%. The trade balance was 604.7 billion yuan in surplus.

Ning Jizhe:

Seventh, consumer prices grew moderately and the growth of producer prices for industrial products decreased from high levels.

The consumer price index (CPI) in 2021 went up by 0.9% over the previous year. Specifically, the CPI went up by 1% in urban areas and 0.7% in rural areas. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 0.3%; clothing up by 0.3%; housing up by 0.8%; articles and services for daily use up by 0.4%; transportation and communication up by 4.1%; education, culture and recreation up by 1.9%; medical services and health care up by 0.4%; and other articles and services down by 1.3%. In terms of food, tobacco and alcohol, prices for grain went up by 1.1%, fresh vegetables up by 5.6%; and pork down by 30.3%. Core CPI excluding the prices of food and energy went up by 0.8%. The CPI in December went up by 1.5% year on year, 0.8 percentage points lower compared with the previous month, and down by 0.3% month on month. In 2021, the producer prices for industrial products went up by 8.1% over the previous year. The figure in December went up by 10.3% year on year, 2.6 percentage points lower than the previous month, and down 1.2% month on month. In 2021, the purchasing prices for industrial producers went up by 11% over the previous year. The figure in December went up by 14.2% year on year and down 1.3% month on month.

Eighth, employment was generally stable and surveyed unemployment rates in urban areas declined.

In 2021, the number of new jobs created in urban areas totaled 12.69 million, 0.83 million more than the previous year. The surveyed unemployment rate in urban areas in 2021 averaged 5.1%, 0.5 percentage points lower than the average of the previous year. In December, the surveyed unemployment rate in urban areas was 5.1%, 0.1 percentage points lower than the same period of the previous year. Specifically, the surveyed unemployment rate of population with local household registration was 5.1% and that of population with non-local household registration was 4.9%. The surveyed unemployment rate of population aged 16 to 24 was 14.3%, and that of population aged 25 to 59 was 4.4%. In December, the surveyed unemployment rate in 31 major cities was 5.1%. The employees of enterprises worked 47.8 hours per week on average. In 2021, the number of rural migrant workers reached 292.51 million, 6.91 million more than that of the previous year, or up by 2.4%. Specifically, local migrant workers totaled 120.79 million, up by 4.1%; migrant workers working away from their hometown totaled 171.72 million, up by 1.3%. The average monthly income of migrant workers was 4,432 yuan, up by 8.8% over the previous year.

Ninth, resident income grew basically in step with economic growth while the urban-rural per capita income ratio narrowed.

In 2021, the nationwide per capita disposable income of residents was 35,128 yuan, a nominal increase of 9.1% over that of the previous year and an average two-year nominal growth of 6.9%; the real growth after deducting price factors was 8.1%, and an average two-year growth of 5.1%, which was basically in step with the growth of the economy. In terms of permanent residence, the per capita disposable income of urban residents was 47,412 yuan, a nominal increase of 8.2% compared with the previous year and real growth of 7.1% after deducting price factors. That of rural households was 18,931 yuan, a nominal growth of 10.5% compared with the previous year and real growth of 9.7% after deducting price factors. The per capita disposable income of urban residents was 2.5 times that of rural households, 0.06 less than the ratio of the previous year. The median nationwide per capita disposable income was 29,975 yuan, a nominal growth of 8.8% over that of the previous year. Taking the per capita disposable income of nationwide residents by income quintile, that of the low-income group reached 8,333 yuan, the lower-middle-income group 18,446 yuan, the middle-income group 29,053 yuan, the upper-middle-income group 44,949 yuan, and the high-income group 85,836 yuan. In 2021, the nationwide per capita consumption expenditure was 24,100 yuan, a nominal increase of 13.6% over the previous year, and an average two-year nominal growth of 5.7%; the real growth was 12.6%, and an average two-year growth of 4% after deducting price factors.

Tenth, the total population increased and urbanization rates continued to grow.

By the end of 2021, China's population on the mainland was 1.4126 billion (not excluding residents of Hong Kong, Macao and Taiwan and foreigners living in the mainland's 31 provinces, autonomous regions and municipalities), an increase of 0.48 million over that at the end of the previous year. In 2021, the number of births was 10.62 million and the birth rate was 7.52 per thousand; the number of deaths was 10.14 million and the death rate 7.18 per thousand; the natural growth rate was 0.34 per thousand. In terms of gender, the male population was 723.11 million and the female population was 689.49 million; the sex ratio was 104.88 (the female is 100). In terms of age structures, the working-age population from 16 to 59 was 882.22 million, accounting for 62.5% of the total population; the population aged 60 and over was 267.36 million, accounting for 18.9% of the total population; the population aged 65 and over was 200.56 million, accounting for 14.2% of the total population. In terms of urban-rural structure, the permanent residents in urban areas were 914.25 million, an increase of 12.05 million over the end of the previous year; and the permanent residents in rural areas were 498.35 million, a decrease of 11.57 million. The urban population share in the total population (urbanization rate) was 64.72%, 0.83 percentage points higher than that at the end of the previous year. The population residing in areas other than their household registration places (refers to the population whose residence and household registration place are not in the same towns or streets and who have been away from their household registration place for over six months) reached 504.29 million, which was 11.53 million more than the previous year. Among them, the floating population stood at 384.67 million, or 8.85 million more than the previous year.

Generally speaking, in 2021, China sustained a continuous and steady recovery of the national economy and maintained a leading position in economic growth and epidemic prevention and control in the world, with major indicators reaching expected targets. However, we must be aware that the external environment is more complicated, severe and uncertain, and the domestic economy is under the pressure of demand contraction, supply shock and weakening expectations. At the next stage, we must continue to take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, and implement the guiding principles of the 19th CPC National Congress, the plenary sessions of the 19th Central Committee of the CPC and the Central Economic Work Conference. We must adhere to the general working guidelines of making progress while maintaining stability, fully and faithfully implement the new development philosophy on all fronts, accelerate the pace to foster a new development paradigm and promote high-quality development. We must coordinate the efforts of epidemic prevention and control as well as economic and social development, continue to ensure stability on six fronts and security in six areas, work hard to stabilize the macro-economy, keep the economy performing within a reasonable range, and ensure social stability so as to greet the opening of the 20th CPC National Congress with practical actions.

That concludes my introduction. Thank you.

Chen Wenjun:

Thank you, Mr. Ning. Now the floor is open for questions. Please identify the news outlet your work for before raising questions.

CCTV:

The year 2021 marks the beginning of the 14th Five-Year Plan. In 2021, China achieved remarkable achievements in coordinating economic development and pandemic prevention and control and maintained stable economic and social development. My questions are for Mr. Ning. What factors played important roles? What do you think of the economy in 2021? 

Ning Jizhe:

The year 2021 was a milestone in the history of our Party and our country and was a year of crucial importance for China's modernization progress. In 2021, we solemnly celebrated the centenary of the founding of the Communist Party of China. We realized the first centenary goal of building a moderately prosperous society in all respects through eliminating absolute poverty. We have embarked on a new journey towards the second centenary goal of making China into a great modern socialist country in all respects. In 2021, facing complex domestics and international landscapes and all kinds of risks and challenges, the CPC Central Committee with Comrade Xi Jinping at its core oversaw the general situation and responded with calm. Our country has been in the lead position in both economic development and Covid-19 response through concerted efforts across China, keeping economic performance within an appropriate range. The major tasks and targets of 2021 were completed. We have made new progress in building a new development paradigm and scored new achievements in high-quality development. The 14th Five-Year Plan was off to a good start. The achievements were mainly the six following aspects. 

First, China's economic growth has been in the lead worldwide, with notably increased economic strength. China's economic growth ranked among the top in major economies worldwide, with the GDP of 2021 growing by 8.1% year-on-year. Its GDP reached 114.4 trillion yuan, exceeding 110 trillion yuan. That was US$17.7 trillion at the yearly average exchange rate, which ranked second globally and was estimated to account for more than 18% of the global economy. The per capita GDP was 80,976 yuan and US$12,551, at the yearly average exchange rate exceeding US$12,000 . At the end of 2021, China's foreign exchange reserves stood at US$3.2502 trillion, the largest in the world. 

Second, the national economy has continued to recover, meeting all major projected goals. In March 2021, the Government Work Report passed by the Fourth Session of the 13th National People's Congress proposed major projected targets for economic and social development in 2021. According to the statistics, the economy grew quite fast. In 2021, the GDP growth rate was 8.1%, higher than the projected target of 6%. The economy increased by 18.3%, 7.9%, 4.9%, and 4.0% in the first, second, third, and fourth quarter, respectively, year-on-year, with an average two-year growth of 4.9%, 5.5%, 4.9%, and 5.2% respectively. The two-year average growth rate of the fourth quarter was higher than that of the third quarter, which demonstrated stable economic performance and employment. In 2021, 12.69 million urban jobs were added, meeting the expected target of more than 11 million. The surveyed urban unemployment rate was 5.1%, lower than the target of around 5.5%. The consumption price rose mildly. The CPI in 2021 increased by 0.9% year-on-year, lower than the target of around 3%.

A basic equilibrium in the balance of payments was maintained. The surplus of the imports and exports of goods expanded 20.4% year-on-year in 2021, achieving steady increases in both the volume and quality of imports and exports. By the end of 2021, the foreign exchange reserves had exceeded US$3.2 trillion for 8 consecutive months. The growth of resident income was basically in line with the economic expansion. The per capita disposable income of Chinese citizens rose 8.1% from the previous year and a two-year average growth of 5.1%, which kept pace with the economic growth, meeting the target of scoring a steady increase in personal income. The energy consumption per unit of GDP dropped. According to preliminary estimates, the energy consumption per unit of GDP in 2021 decreased by 2.7% year-on-year, very close to the target of around 3%. The grain output reached a record high. Last year's total grain output was 682.85 million tons, achieving the target of more than 650 million tons. 

Third, the innovation momentum has been intensified with the rapid growth of the industrial manufacturing industry. In 2021, the national spending on R&D increased by 14.2%, 4 percentage points higher than the growth rate last year, maintaining a two-digit growth since the 13th Five-Year Plan period (2016-2020). The spending on R&D accounted for 2.44% of the GDP, up 0.03 percentage points than last year. Specifically, the basic research spending grew by 15.6% year-on-year, accounting for 6.09% of the total R&D spending, up by 0.08 percentage points than last year. In 2021, the total value-added by industrial enterprises rose by 9.6%, 1.5 percentage points higher than the growth rate of GDP. Specifically, the value-added by the manufacturing industry increased by 9.8%, 0.2 percentage points higher than that of all industries. The equipment manufacturing industry above designated size surged 12.9%, 3.3 percentage points higher than all industries above designated size.

Fourth, foreign trade and investment have grown rapidly, and opening up has been continuously expanded. As a result, the volume and quality of trade goods have increased. In 2021, China's total goods imports and exports expanded 21.4% year-on-year to 39.1 trillion yuan, scoring a two-year average growth of 11.3%. Counted by US dollars, the trade volume was US$6.05 trillion, accounting for a larger proportion in the global market. The imports and exports of general trade made up 61.6% of the total trade volume, up by 1.6 percentage points year-on-year. Trade in services has continued to recover. From January to November 2021, the total trade in services increased by 14.7% year-on-year, with services exports up by 31.5%. The investment attracted set a new record. The actual utilized foreign capital in 2021 was 1.1494 trillion yuan, up by 14.9%. 

Fifth, the reform on the economic system has continued to deepen, further unleashing development vitality. Market entities increased a lot. Reforms to streamline administration, delegate powers, improve regulation, and upgrade services continued apace. At the end of 2021, the total number of market entities in China exceeded 150 million, with more than 40 million enterprises and more than 100 million self-employed businesses. Diverse forms of ownership have developed side by side. Among the industries above designated size in 2021, value-added by enterprises with state-held controlling stakes, corporate enterprises, private enterprises, and foreign, Hong Kong, Macao, and Taiwan invested enterprises increased by 8.0%, 9.8%, 10.2%, and 8.9%, respectively, all rising at a similar pace. Rapid growth has been made in new industries, new business forms, and new models. In 2021, the value-added by high-tech manufacturing enterprises above designated size increased by 18.2% year-on-year, 8.6 percentage points higher than that of the industries above designated size. The online retail sales of physical goods increased by 12%, accounting for 24.5% of the total retail sales of consumer goods.

Sixth, efforts to ensure people's livelihoods have been firm and effective, increasing people's sense of fulfillment. As a result, people's income has increased at a fast pace. In 2021, Chinese citizens' net income from wages and salaries, net business income, and net property income grew by 9.6%, 11.0%, and 10.2%, respectively. As a result, the urban-rural income gap has been narrowed. The urban-rural per capita disposable income ratio of 2021 was 2.5, which was 0.06 percentage points lower than 2020. The production and sales of basic consumption goods in 2021 have seen steady growth. The value-added by the consumer goods manufacturing industry above designated size increased by 9.8% year-on-year. The retail sales of grain, oil and foodstuff, beverages, and daily necessities by enterprises above designated size all registered a two-digit growth. The investment to improve living standards has expanded. The investment in social sectors increased by 10.7% year-on-year. Specifically, education and public health investment grew by 11.7% and 24.5%, respectively. Thank you. 

Phoenix TV:

What were the contribution rates of the fourth quarter's economic growth and the “troika” (investment, consumption and exports) to the overall economic growth of 2021? On the basis of the data, what progress has been made in the construction of a new development paradigm? In addition, in the face of the complex economic situation, how do you think the impetus of economic growth will shift? Thank you.

Ning Jizhe:

The impetus of economic growth can be measured from the perspective of supply, or in other words, the three industries. It can also be measured from the perspective of demand, or in other words, the “troika.” So, your question is very targeted. The year 2021 is the starting year for our country in forming a new development paradigm. In the face of multiple tests like the complex and severe international environment, and frequent and sporadic domestic outbreaks of the pandemic, China has taken advantage of its super large-scale market, continued to deepen reform and opening up, proactively boosted the domestic and global economy, and made strides toward establishing a new development paradigm. This was shown in four main aspects:

First, during the whole year, three key demands all made contributions to economic growth. In 2021, the final consumption expenditure, the gross capital formation, and the net export of commodities and services drove the economy to grow by 5.3, 1.1 and 1.7 percentage points, respectively, and their contribution rates to economic growth were 65.4%, 13.7% and 20.9%, respectively. In the fourth quarter, the final consumption expenditure, the gross capital formation, and the net export of commodities and services drove the economy to grow by 3.4, -0.5 and 1.0 percentage points, respectively, and their contribution rates to economic growth were 85.3%, -11.6% and 26.4%, respectively. Although the contribution rate of the gross capital formation to economic growth was negative, fixed assets investment rose after a fall in December. During the whole year, the planned gross investment of new projects grew by 3.3% year on year, rising consecutively in November and December with signs of rising from a fall.

Second, the principal role of domestic circulation was enhanced. We have further implemented the strategy of expanding domestic demand. The leading role of domestic circulation in economic development has been greatly enhanced. In 2021, the total retail sales of consumer goods in China exceeded 40 trillion yuan, up by 12.5% year on year. The fixed assets investment exceeded 50 trillion yuan, up by 4.9%. The contribution rate of domestic demand to economic growth reached 79.1%, growing by 4.4 percentage points compared with the previous year. Economic growth was mainly driven by domestic demand.

Third, domestic and international circulations reinforced each other. The advantage of a super large-scale market was displayed, and the expansion of domestic demand propelled imports. The advantages of complete industrial system and stable production capacity were given full play, and the expansion of external demand promoted exports. In 2021, China's total import and export volume reached a record high. Import and export volume grew by 21.5% and 21.2%, respectively, year on year. Both the domestic and external demands played important roles and interacted with each other.

Fourth, the cycle of production, distribution, circulation and consumption was improved. In the production link, the expansion of production laid a foundation for improving the cycle. In 2021, the added value of industrial enterprises with annual revenue of 20 million yuan or more grew by 9.6% year on year. Growth was seen in 95.1% of the industrial sector and 73.4% of products, respectively. In the distribution link, the growth of business income, salaries and profits were the main sources of the primary distribution. From January to November in 2021, the business income of 41 major industrial categories achieved growth year on year. Growth was seen in 100% of industries. The profits of 31 industries realized growth year on year. Growth was seen in over 80% of industries. The salaries of employees also increased. The revenue in national general public budget grew by 12.8% year on year, maintaining double-digit growth. In the circulation link, the smooth freight transport ensured the economic recovery and foreign trade. In 2021, China's freight transport volume and cargo throughput at ports increased by 12.4% and 6.8% over last year, respectively. In the consumption link, the expansion of employment and growth of incomes propped up the recovery in consumption growth. In 2021, China's per capita consumption expenditure grew by 12.6% in real terms year on year. Due to the impact of the year before last, the average growth rate of the past two years reached 4.0%.

In the face of the complex and severe economic situation, the fundamentals sustaining China's long-term economic growth and the advantages of forming a new development paradigm remain unchanged, and new drivers of economic growth will continue to emerge. In the next phase, the impetus of economic growth will come from not only the pull of the “troika,” but also the propelling of supply; not only the expansion of domestic demand, but also that of external demand; not only the increase of consumption, but also that of investment; and not only the promotion of reform, but also that of innovation. We have the confidence, strength, capacity and conditions to realize steady and sound economic development. Thank you.

Yicai:

In 2021, the growth of fixed assets investment was sluggish. This year, with the acceleration of the issue of special bonds and the launch of a batch of key projects, will the growth of investment pick up? Thank you.

Ning Jizhe: 

The fixed assets investment is one important carrier of the “troika” I mentioned just now. The statistics of fixed assets investment for the whole year were just released, and now I will elaborate on the overall investment situation.

Generally, investment maintained its recovery momentum in 2021. During the past year, the continuous expansion of investment scale and the improvement of the structure have played important roles in optimizing supply structure, enhancing supply quality, and reinforcing weak links.

First, the investment scale continued to expand. In 2021, the fixed assets investment (excluding rural households) exceeded 50 trillion yuan and reached 54.5 trillion yuan, up by 4.9% over last year, with an average growth rate of 3.9% in the past two years. The average two-year growth rate rose by 0.1 percentage point compared with the first three quarters.

Second, investment in the manufacturing industry improved. In 2021, investment in the manufacturing industry grew by 13.5% year on year, with the average two-year growth rate reaching 4.8%, 0.9 percentage point higher than that of the whole investment. Investment in technological upgrading in the manufacturing industry increased by 13.6% year on year, continuously higher than the general growth rate of manufacturing investment. 

Third, investment in the high-tech industries enjoyed good momentum. In 2021, investment in high-tech industries increased by 17.1% year on year, with the average two-year growth rate reaching 13.8%, 9.9 percentage points higher than that of the total investment.

Fourth, investment in the social domain grew swiftly. In 2021, the growth rate of investment in the social domain was 5.8 percentage points higher than that of the total investment. 

The investment growth trend in the next phase has attracted a lot of attention. Currently, the international environment is complicated and severe, and the pandemic continues to have great impact, hindering investment growth to some extent. However, from the perspective of China's development phase, there is potential, space and impetus for expanding effective investment.

First, investment in promoting development has great potential. China is still the world's largest developing country. The per capita GDP is less than one fifth of that of the United States and one third of that of Japan. The infrastructure capital stock per capita is only 20%-30% of that of developed countries. Promoting high-quality development and building a modern socialist country still requires the continuous expansion of effective investment.

Second, there is a broad investment space to make up for weaknesses. The issue of unbalanced and inadequate development is still prominent, and there is still a large gap between the development of urban and rural areas. Many weak links still exist in infrastructure and areas related to people's livelihoods. The per capita input for public facilities of farmers is only about one-fifth of that of urban residents. There is a broad investment space to make up for weaknesses.

Third, there has been sufficient motivation for innovation investment. With the increasing driving role of innovation, industrial upgrading remains a steady development. Enterprises have been continuously increasing innovation investment, boosting innovation development, and fostering a new development paradigm, which will be a huge investment push. This year, we will introduce a series of policies and measures which will be conducive to investment in manufacturing, R&D, and technological upgrading. Last year, investment in high-tech industries increased by 17.1% year on year. In terms of capital, China has a high total national savings rate, and social funds are generally adequate. China has also been able to provide good supporting conditions for production and construction. China has both the needs and favorable conditions for expanding effective investment.

Fourth, policies such as adopting an appropriate forward-thinking plan for infrastructure are gaining momentum. Since the second half of last year, the issuance of special bonds by local governments has been accelerated, and investment from the central government budget has also been accelerated. 102 key projects in the 14th Five-Year Plan have been launched continuously. We have launched projects concerning new infrastructure and new urbanization initiatives as well as major transportation and water conservancy projects in an orderly manner. Enhanced policy support, which includes fiscal and monetary investment, has been conducive to the steady recovery of fixed-asset investment. In terms of leading indicators for investment, from January to December 2021, 287,760 new projects were launched, 36,767 more than the period from January to November. The planned gross investment of new projects grew by 3.3% year on year, 0.6 percentage point faster than the growth rate of the January-November period, and has risen consecutively in the last two months. Since the beginning of this year, a batch of key projects have been launched in different regions as planned, and these projects come with the potential for investment growth. Thanks.

Economic Daily:

Hello, Mr. Ning, you have just introduced that China's GDP exceeded 110 trillion yuan in 2021, and its share in global GDP has continued to increase. The per capita GDP is projected to exceed $12,000, which is close to the World Bank's threshold for high-income countries. What does the National Bureau of Statistics say about this? What do these changes mean? Thanks.

Ning Jizhe:

China's GDP reached 110 trillion yuan, which is indeed a landmark event, and the per capita GDP has also increased accordingly. Last year, both the size of China's economy and its per capita level continued to grow. It means that China's comprehensive national strength, social productivity, and people's living standards have been further improved. It also means that China has a firmer foundation, better conditions, and stronger driving force for development and is contributing to the global development as well.

First, this means that China's comprehensive national strength has been further enhanced. Our economy has further expanded. In 2021, China's GDP exceeded 110 trillion yuan, ranking second in the world. Last year, nominal GDP rose from 101 trillion yuan to 114 trillion yuan, an increase of about 13 trillion yuan. This increase, converted at an average annual exchange rate, amounts to $2 trillion, which is equal to the annual economic aggregate of a quite large major economy. If the exchange rate factor was considered, the increase would be more than $2 trillion. According to the statistics released earlier, China's GDP is equal to $17.7 trillion this year, and it was $14.7 trillion last year. Due to the appreciation of the RMB last year, the calculated increment is $3 trillion. The total size of the economy and the amount of economic growth have not come easily. At the same time, the added values of the total industry and the manufacturing industry were 37.3 trillion yuan and 31.4 trillion yuan, respectively, ranking first in the world for more than 10 consecutive years. China's total trade in goods and foreign exchange reserves both rank first in the world. And there is no doubt that China ranks second in the areas of trade in services, outbound investment, and domestic consumption market, even though figures for several countries have not yet been made available. China's per capita GDP exceeded 80,000 yuan, which is equal to $12,551 at the average annual exchange rate. Although it has not yet reached the lower limit of the per capita level of high-income countries, it is approaching. In 2021, China exceeded the global average per capita GDP. According to preliminary estimates, the global average per capita GDP will be about $12,100, while China's is $12,500.

Second, this means that China's social productivity has further improved. The output of major industrial and agricultural products continued to rank among the top in the world. In 2021, China's total grain output exceeded 1.3 trillion jin (650 million metric tons). According to global statistics, China ranks first in total grain output in the world. The outputs of seed cotton, peanuts (one of the main oil crops), meat, tea, and fruit all rank first in the world. These outputs are real and comparable. In the past, grain was taken as the top priority in agriculture, and steel was taken as the top priority of industry. Now, the output of crude steel was 1.03 billion metric tons, and power generation reached 8.1 trillion kWh. Meanwhile, fertilizer output was 54.46 million metric tons, cloth output was 39.6 billion meters, and automobile output was 26.53 million. The output of microcomputer equipment was 470 million units, and the output of mobile phones was 1.66 billion units. These all rank first in the world. China also leads the world in the output of more than 220 major products, and in fact, it is more than this, and it indicates social productivity has increased. At the same time, China's scientific and technological strength has also improved significantly. Currently, the full-time equivalent of research and development personnel in China exceeds 5 million person-years. By the end of 2021, the number of in-force patents issued in China was 3.597 million, and the number of high-value invention patents per 10,000 people reached 7.5, an increase of 1.2 over the previous year.

Third, it also means the living standards of the Chinese people further improved. Employment continued to expand. In 2021, more than 12 million new jobs were created. Residents' income and consumption maintained rapid growth. China's per capita disposable income stood at 35,000 yuan in 2021, up 8.1% year on year in real terms. The nationwide per capita consumption expenditure reached 24,000 yuan, up 12.6% in real terms. The Engel coefficient, which reflects the consumption structure, states that the percentage of income allocated for food expenditure decreases as income rises. In 2021, the Engel coefficient was 29.8%, 0.4 percentage point lower than the previous year.

Fourth, it means that China's international influence has further expanded. China's economy has maintained rapid growth, which has driven global economic growth. In 2020, the world economy saw negative growth, while China's economy grew positively, playing a significant role in driving economic recovery globally. In 2021, China's contribution rate to the world's GDP growth was expected to reach about 25%, making it an important force leading the world's economic recovery. This can only be forecast because data from around the world has not yet been collected. At the same time, China's coordinated fight against the epidemic has made a huge contribution to the global anti-pandemic development. Over the past year or so, sticking to the approach of “preventing the coronavirus from entering the country and stem its domestic resurgence,” China has taken the lead in bringing the epidemic under control on its home soil, ensuring the health and safety of its 1.4 billion people. This in itself is a major contribution to the world's anti-pandemic efforts. By the end of last year, China had provided 372 billion masks, more than 4.2 billion protective suits, 8.4 billion test reagents, and more than 2 billion doses of COVID-19 vaccine to more than 120 countries and international organizations, making China the largest supplier of COVID-19 vaccines.

At the same time, we should be soberly aware that China remains a upper-middle-income country and its per capita GDP has not reached the threshold for high-income countries, and there is still a big gap between China and developed countries. China remains the largest developing country in the world. Its basic national condition remains unchanged, and it will remain in the primary stage of socialism for a long time. Right now, China is facing the triple pressures of shrinking demand, supply shock, and weakening expectations. Based on the new stage of development, we need to fully, accurately, and comprehensively implement the new vision of development. We need to work hard and tirelessly to speed up the building of a new development paradigm, keep the economy operating within a proper range, promote high-quality development, and further enhance China's overall national strength, social productivity, and people's living standards. Thank you.

CNBC:

I have two questions. The first one is about employment. Are there any data where we can see if the proportion of young people in urban and rural areas has changed? And the second: In the growth of the secondary and tertiary industries in the fourth quarter, there are some obvious differences from that of the whole of last year. For example, the secondary industry grew by 2.5% in the fourth quarter and 8.2% for the whole year. The tertiary industry grew by 4.6% in the fourth quarter and 8.2% for the whole year. What are the main reasons for this gap? With the enhanced epidemic prevention measures in January, are there any insights into how we can predict economic growth this year? Thank you.

Ning Jizhe:

I will focus on the first of your two questions. The first one is about industry and industrial employment. You also mentioned the employment in urban and rural areas. In the data I just released, there is already information about newly-created jobs in urban areas. The national surveyed urban unemployment rate and the surveyed unemployment rate for big cities were also released. Your question focuses on the performance of certain industries. The situation in some of the industries might be different. It is fair to say that in the past year, the increase of new urban employment and the surveyed unemployment rate remained stable in China. Both have achieved their expected goals, or we can say the surveyed unemployment rate is lower than expected. The main reasons are as follows:

First, the continuous recovery and development of the economy has created new jobs and laid the foundation for employment. China's GDP grew by 8.1% in 2021. The economic output in the fourth quarter slowed to 4% year-on-year, but in terms of the two-year average, though the GDP in the fourth quarter of 2020 grew relatively faster at 6.4%, after been revising down from the previous 6.5%, the two-year average growth in the fourth quarter of 2021 registered 5.2%, 0.3 percentage points faster than the 4.9% in the third quarter. The steady economic growth has provided an important foundation for employment. When we observe economic growth, we should look not only at the year-on-year data but also the month-on-month data and the average data of two years. In fact, it also offered some tips to your second question.

Second, the policy of prioritizing employment has produced remarkable results. A series of policies that were designed to help enterprises and stabilize jobs have played a positive role in the employment of college graduates, rural migrant workers, and other key groups. The total number of migrant workers in 2021 was 292.51 million, an increase of 6.91 million over 2020. The number in 2020 is lower than that in 2019. The number in 2021 has already exceeded the level of 2019 before the COVID-19 epidemic. Please pay attention to this. At the same time, the surveyed unemployment rate of migrant agricultural residents has remained at a low of less than 5% since the second half of last year.

Third, new forms of employment are flourishing. China's new industries, new forms of business, and new models continued to develop rapidly last year, with various flexible employment models absorbing a lot of the labor force. At present, there are about 200 million people working flexible jobs in China, with food deliverymen accounting for about 4 million and online broadcasters and related employees accounting for more than 1.6 million on some platforms, nearly three times that of last year.

Fourth, employment in some industries increased considerably. Although the number of employees in some service industries, manufacturing, and construction has dropped, the number in other industries has increased, underpinning the overall stability of employment. From November to December in 2021, the number of workers in the wholesale and retail industry; transportation, warehousing, and postal industries; residential service industry; and commercial service industry rose by 1.81 million, 410,000, 330,000, and 280,000, respectively, which has offset the declines in employment in other sectors.

Fifth, the surveyed unemployment rate shows that some people have temporarily withdrawn from the labor market. While the surveyed urban unemployment rate focuses on the urban labor market, we have also carried out surveys in rural areas. The national surveyed unemployment rate is generally lower than that of urban areas. However, from the perspective of urban and rural areas, if a migrant worker returns to the countryside, then the person no longer belongs to the urban labor market, and should be included in the labor force survey in the countryside. In addition, from the perspective of the city itself, some people are counted as “not in the labor force” due to reasons like seasonal business closures, or to take care of their families, health, education, and training. For example, workers in agriculture or construction will temporarily withdraw from the labor force in winter.

Your second question is about the gap between the service sector and the industrial sector. Thanks to a series of policies and measures supporting the industrial sector as well as the joint efforts of enterprises, the industrial sector and manufacturing sector maintained recovery momentum in the fourth quarter. You just mentioned statistics of the service sector. The service sector, which contains many industries, grew rapidly in general. The annual growth rate of both the service sector and industrial sector reached 8.2%. The impact of the service sector on employment should be reviewed based on different industries. It has exerted a greater impact on some industries, such as high-contact service industries and those with a high-density work environment, and has had a lesser impact on industries supporting freight transport, logistics, and industrial chains. So we must stabilize and promote the growth of those industries that ensure normal life and work, and follow routine, targeted COVID-19 protocols to ensure a good environment for economic and social development.  

Because this year's first-quarter statistics are expected to be released in April, we have to take some targeted measures according to the situation last year to ensure employment and reasonable economic growth. Thank you. 

Reuters:

Would you please preview the development prospects in 2022 and what are the main downward pressures and risks of China's economic growth this year? Will China scale up stabilizing economic growth to keep the major economic indicators within an appropriate range? Will China relax its policies to regulate and control the real estate market? Thank you.

Ning Jizhe:

You have raised several questions. The first two are relatively similar and involve this year's economic growth. This year marks the gradual recovery of China's economy, but the current external environment is grave and made complex by many uncertainties, and as you can see, domestic development is also under pressure. Despite these risks and challenges, taken overall, the momentum of sustained economic recovery, factors that keep the major economic indicators within an appropriate range, and conditions that support high-quality development all remain unchanged. The economy is expected to make progress while maintaining stability throughout the entire year.

First, China has been at the global forefront in terms of regularized pandemic control and made notable progress in coordinating epidemic control with economic and social development. The order of life and work is generally stable in the country, which has promoted sustained economic growth and ensured overall social stability. Up to now, China has reported the smallest number of confirmed COVID-19 cases and the lowest death toll among the world's major economies. China has administered 2.93 billion doses of COVID-19 vaccines, and a total of 1.22 billion people have been fully vaccinated – the most among the major economies of the world – providing a general line of defense for economic growth. 

Second, China's industrial supply system is complete. As we have mentioned many times, our country features every industrial category, with a complete industrial system and supporting system. In addition, the industrial and supply chains are resilient and can quickly adapt to the changes in demands of the market and thus boost the increase in supply. For example, the market suffered from a shortage of chips and containers last year. In addition to imports, China's own output of integrated circuits increased by 33.3%, and thus quickly increased supply. Facing a shortage of metal containers, China's output of containers grew 110.6%, allowing the shortage of chips and containers to be slightly alleviated. Amid the pandemic, the demand for office supplies for working at home boomed domestically and abroad. Some products might not otherwise sell well, but they have become popular after people needed them to work at home. The output of microcomputer equipment has not risen at such a fast rate for a long time, increasing by 22.3% in 2021. Meanwhile, the total output of smartphones last year was 1.7 billion, increasing by 9%, all of which indicates that there is a sizable demand. Working at home has also boosted the demand for eating at home, with fresh and frozen meat output increasing 24.5% and beverage output increasing 12%. All these examples indicate that we can produce what the market needs. It is the same for this year. As long as the media reports the world's demands, we will have market entities make efforts to produce and provide supplies, which will naturally promote economic growth, expand employment, and increase income. 

Third, the space for growth is large for China's super-large scale market. Our country has more than 1.4 billion people, with more than 400 million middle-income earners, which is the foundation for us to cope with various risks and challenges and build a strong domestic market. Due to the impact of the pandemic, retail sales of consumer goods decreased in 2020. But it grew back in 2021, reaching 44 trillion yuan. Although the growth rate was relatively low, it was not easy to achieve. The 44 trillion yuan in consumer goods sales represents a new milestone. The total investment was huge – the contribution rate of domestic demand to economic growth was 79.1% for the whole year – and final consumption was 65.4%, which highlights the significant role of the domestic market. 

Fourth, we also have the dividends of reform and opening-up. Diverse forms of ownership develop together. According to statistics, the value-added industrial growth of private enterprises scored double-digit growth. China's imports and exports to its major trade partners maintained rapid growth last year, according to statistics released by the General Administration of Customs a few days ago. Meanwhile, China is a major trade partner of more than 120 countries around the world. Up to the end of last year, China has signed BRI cooperation documents with 145 countries, and its total import and export volume with countries involved in the Belt and Road rose by more than 20%.

Fifth, China has outstanding economic governance capability. In recent years, China has continued to make fresh innovations in macro-control. We have enhanced targeted, well-timed, and precise regulation on the basis of range-based control, accumulating rich regulation experience and contributing to stable economic development. Since 2020, facing the spread of pandemic around the world, we have maintained strategic focus. Instead of resorting to massive stimulus measures, we put into place assistance policies based on market entities, which has promoted economic recovery and achieved remarkable results. At present, China's inflation rate and government debt are low. There is space for monetary policies, and we have at our disposal a fairly substantial toolkit for macro-control, which enables China to maintain stable economic performance.

Regarding quarterly growth, first, let us review the quarterly data over the past year. Just now, I announced the year-on-year growth rate and two-year average growth rate. Now, let us look at the quarter-on-quarter growth rate, that is, comparing each quarter with the previous quarter. The first quarter of 2021 saw a 0.3% increase in economic aggregate, rising a little compared with the fourth quarter of 2020; the second quarter of 2021 grew 1.3% from the first; the third quarter rose 0.7% compared with the second; and the fourth quarter increased 1.6% from the third. These figures show that China's economic aggregate kept expanding quarterly last year. The fourth quarter saw an increase of 3.43 trillion yuan over the third, with the quarter-on-quarter growth rate up 0.9 percentage point. Therefore, the Chinese economy is showing an increasingly stable development momentum.

Issues in the real estate industry are also quite important. The just-released data shows that our real estate market was generally stable in 2021. We adhered to the principle that housing is for living in rather than for speculation and actively implemented a long-term mechanism. We did not take real estate as a tool and means to stimulate short-term economic growth but made efforts to stabilize the price of land and houses, and the expectations, actively preventing potential risks. The real estate market remained generally stable.

First, real estate sales kept rising, and real estate transactions logged an overall increase. In 2021, the floor area of sold commercial housing nationwide reached 1.8 billion square meters, up 1.9% compared with the previous year, and the sales hit 18.19 trillion yuan, increasing 4.8% over the previous year.

Second, investment in real estate kept expanding. In 2021, the investment in real estate development was 14.76 trillion yuan, up 4.4% year on year, and residential investment rose 6.4%, 2 percentage points higher than the total investment in the industry. 

Third, real estate prices were generally stable. In December 2021, among 70 large and medium-sized cities, the prices of newly built commercial housing in first-tier, second-tier, and third-tier cities rose 4.4%, 2.8%, and 0.9%, respectively, year on year. 

Fourth, the development of government-subsidized housing continued to be pushed forward. From January to November 2021, China renovated about 1.94 million housing units in rundown urban areas and began the construction of 86,000 public rental housing units, with an investment of 913.1 billion yuan and 17.8 billion yuan, respectively.

The statistics showed that investment in real estate is expected to see stable and healthy development in 2022. Some of the just-released data is related to demand in the industry, which would be steadily unleashed. 

First, China's urbanization rate of permanent residents continued to increase last year, but the country is still in the development stage of urbanization. At the end of 2021, permanent residents in urban areas increased by 12.05 million year on year. Those people needed housing in cities while mostly maintaining their rural homes. In particular, the migrant population — defined by people who move a relatively long distance — reached 384.67 million, 8.85 million more than the previous year. The population who resided in areas other than where their household registration was registered was larger than the migrant population. All of these factors have brought about a new demand for housing. With the advancement of a new model of urbanization, residents' desire for normal housing consumption will turn into a reality. Then, with the support of financial and other policies, the urban housing needs, especially for improved housing, will continue to be released.

Moreover, the market supply of the real estate industry is gradually optimizing. With the steady advancement of real estate regulation policies, real estate developing enterprises maintain sound growth, and the industry is heading in an intensive, highly-efficient, long-term, healthy, and stable direction. As we see, the 2021 data showed that the added value of the real estate industry saw a negative growth in the fourth quarter, but the total added value reached 7.76 trillion yuan for the whole year. The added value of the construction industry amounted to 8 trillion yuan. The two together accounted for 14% of the country's GDP. We encouraged both the rental and purchase of housing, accelerated the development of the long-term rental housing market, promoted the development of government-subsidized housing, and ensured that the commercial housing market could better meet the rational demand of house purchasers. In this way, we are speeding up the establishment of a multi-tiered housing system including commercial housing and government-subsidized housing. The real estate market supply pattern will also be gradually put in place, featuring multi-suppliers, multi-channel guarantee, and a two-pronged approach of rental and commercial housing. From January to November 2021, a total of 120.5 billion yuan was invested to build 860,000 rental housing units across the country. 

Third, city-specific policies have helped promote a virtuous circle for the real estate industry. It is very important to develop the real estate industry according to local conditions. We have always kept in mind the principle that houses are for living in, not for speculation, and have maintained a stable housing price, stable land price, and stable expectations. To regulate the real estate market, we have implemented various policies in different cities. This is beneficial to both the smooth operation of the real estate market and ensuring the fulfillment of people's normal housing needs. In recent years, we have supported the renovation of buildings where middle- and low-income groups lived as well as old residential communities, boosting the healthy development of the industry. From January to November 2021, we began the renovation of 54,700 old urban residential communities, exceeding the annual targets.

Lastly, the growth of the real estate industry has driven the economic growth overall. In 2021, the added value of the real estate industry rose 5.2% year on year, adding 0.4 percentage point to overall economic growth; the added value of the construction industry increased 2.1%, boosting overall economic growth by 0.2 percentage point. From the perspective of industry expectations, in December 2021, the commercial activity index of the construction industry was 56.3%, maintaining a relatively high range of over 55% for 10 consecutive months. As the long-term mechanism of the real estate industry keeps improving and the effects of city-specific policies continue to emerge, the industry is expected to maintain a smooth running in 2022. Thank you!

ThePaper.cn:

In 2021, the number of newborns nationwide hit a new low for recent years. How will this affect China's economy? When will China enter a negative population growth phase? In addition, how will the three-child policy impact future population growth? Thank you.

Ning Jizhe:

At the request of the SCIO, the National Bureau of Statistics and the seventh national census office released census data last year. Based on the data I just presented, your questions make a lot of sense. In 2021, China's population maintained steady growth. 

First, the total population continued to grow. By the end of 2021, China had a population of 1.413 billion. The number of births totaled 10.62 million, and the number of deaths reached 10 million for the first time, registering a net increase of 480,000 and a natural growth rate of 0.34 per thousand.  

Second, the working-age population remained relatively stable. By the end of 2021, the working-age population, or those between 16 and 59 was 882 million, accounting for 62.5% of the total. The population aged 60 and over was 267 million, among whom 200 million were aged 65 and above, making up 18.9% and 14.2%, respectively, of the total population.  

Third, the urban population increased considerably. By the end of 2021, permanent residents in urban areas reached 914 million, an increase of more than 12 million over the end of the previous year, while permanent residents in rural areas were nearly 500 million. The urbanization rate of permanent residents registered 64.72%, 0.83 percentage points higher than the end of the previous year. 

Fourth, the floating population grew significantly. By the end of 2021, the population who resided in areas other than their household registration reached 504 million, which was 11.53 million more than the previous year. Specifically, the floating population stood at 385 million, 8.85 million more than the previous year.

The birth decline you are concerned about resulted from multiple factors. The slowdown in population growth is an objective result stemming from China's economy, especially industrialization and urbanization, developing into a certain stage. Aging and fewer children are also common problems faced by developed countries and even some emerging economies. In 2021, China had fewer births than in the previous year, which led to a lower birth rate. The main reasons for this are as follows:

First, the number of women of childbearing age continued to decrease. In 2021, there were about 5 million fewer women of childbearing age – from 15 to 49 – than in the previous year; the number of those in their prime of childbearing age – from 21 to 35 – dropped by about 3 million.

Second, the fertility rate continued to fall. In recent years, shifting thoughts about childbearing and people delaying marriage and starting a family, coupled with factors involving the cost of childbearing, have made young people less willing to have a baby.  

Third, to some extent, COVID-19 has also delayed the marriage and childbearing plans of young people. Multiple international studies found that fertility rates have decreased in many countries and regions since the outbreak of the pandemic. In 2020, both Japan and South Korea saw fewer births than in the previous year.  

China's population will remain above 1.4 billion for some time to come.  

First, the total number of women of childbearing age is relatively large. China has a large population base with more than 300 million women of childbearing age, and we are able to sustain over 10 million births every year. The total population will maintain a certain level of growth.

Second, the three-child policy will gradually generate effects. Over the past decade, policies including the two-child policy for couples in which either the husband or wife is from a single-child family, and the universal two-child policy have positively increased births. According to the seventh national census data, the number of children aged 0-14 in 2020 was over 30 million more than that in 2010, and the proportion of children rose by 1.35 percentage points, which was mainly driven by the two "two-child" polices. Among the births, the proportion of second children rose from about 30% in 2013 to about 43% in 2021. In May 2021, the Political Bureau of the CPC Central Committee proposed further optimizing the birth policy by allowing a couple to have three children and adopting supporting measures. Specific implementation schemes have been formulated in localities and the policy will gradually play its role. 

Third, life expectancy has continued to rise. Significant progress in medical and health conditions, as well as continuous improvements to living standards, have led to a consistently rising life expectancy, and the fact that the number of deaths in China has been less than the number of births helps the total population maintain its growth trend. The potential of some delayed births will continue to be released in the future. All these factors will play a positive role in keeping the total population basically stable. Thank you.  

Chen Wenjun:  

The press conference has been going on for 85 minutes and the journalists are still eager to raise questions. We will take the last three questions.  

CNR:

We have also noted that China's grain output hit a new high in 2021. Will China's agricultural production be consolidated amid new developments in 2022 and what are the main reasons? In addition, we also see that international grain prices rose sharply in 2021 and many countries faced significant inflation. How has China's food security been affected? Can we guarantee the food supply? Thank you. 

Ning Jizhe:

Agriculture is the foundation of every industry and food is the basis of our survival. The statistics just released show that grain output in 2021 reached a new level and we had a bumper harvest of agricultural production. Regarding the complicated and changing situation in 2022, such as the rising international prices of some grains you mentioned just now, relevant departments have conducted careful analyses in this regard, the CPC Central Committee has made clear arrangements, and the State Council has introduced related policies as well. As long as the Party continues to prioritize addressing issues related to agriculture, rural areas and rural people, as well as gaining control over our own food supply, we can consolidate the fundamental position of agriculture and ensure the food supply.  

In 2021, China's grain and agricultural production gained momentum and the features were as follows:  

First, the output of summer grain, early rice and autumn grain increased to 291.9 billion jin (1 kg=2 jin), 56 billion jin and 1,017.8 billion jin, respectively, up 6.2 billion jin, 1.4 billion jin and 19.1 billion jin. This helped total annual grain output reach 1,365.7 billion jin, an increase of 26.7 billion jin over the previous year.  

Second, the yield of rice, wheat, corn and tuber rose to 425.7 billion jin, 273.9 billion jin, 545.1 billion jin and 60.9 billion jin, respectively, up 2 billion jin, 5.4 billion jin, 23.8 billion jin and 1.1 billion jin over the previous year. 

Third, both sown areas and per unit yields increased. China's total sown grain area hit 1.764 billion mu (117.6 million hectares) in 2021, an increase of 12.95 million mu over the previous year, signaling two consecutive years of growth. Per unit yields of grain reached 387 kilograms per mu, an increase of 4.8 kilograms over the previous year, up 1.2% year on year.

Fourth, the primary, secondary and tertiary industries in rural areas as well as the industries of farming, forestry, animal husbandry and fishery were comprehensively developed. In 2021, the value added from farming, forestry, animal husbandry and fishery industries reached 8.7 trillion yuan, up 7.1% year on year. The National Bureau of Statistics and the Ministry of Agriculture and Rural Affairs released the first set of statistics for value added from agriculture and related industries. According to the data, in 2020, the value added of agriculture and related industries hit 16.69 trillion yuan, accounting for 16.47% of the national GDP. The figure is nearly twice that of the farming, forestry, animal husbandry and fishery industries. Many enterprises representing secondary and tertiary industries provide services directly to the agricultural sector. For instance, specialized plant protection services and seed services have been categorized in the service industry. Therefore, we decided to work with the Ministry of Agriculture and Rural Affairs to conduct a relevant statistical monitoring project.

This year's grain supplies can be guaranteed, based on the following factors.

First, successive years of increased production have laid a solid foundation. We have seen bumper grain harvests for 18 years in a row. The annual total grain output exceeded 500 billion kg, 550 billion kg, and 600 billion kg between 2007 and 2009, 2010 and 2011, and 2012 and 2014, respectively. This figure has remained above 650 billion kg for seven consecutive years beginning 2015, ensuring basic supplies for the grain market.

Second, we have an adequate stock of grain. At present, the country has sufficient grain reserves, with the two major staples of wheat and rice accounting for more than 70% of the total inventory. The stock of wheat can meet consumption demands for a year and a half. As the inventory of commodities noticeably grew, the stock of wheat and rice increased by more than 50% year on year.

Third, the sown area has likewise expanded in consecutive years. As part of the efforts to enlarge acreage, we have implemented stringent measures to protect farmland and safeguard the "red line" of 1.8 billion mu (120 million hectares) of farmland, strengthened control and regulation of purposes for arable land, and curbed non-agricultural or non-grain-related use of farmland. The sown area of grain across the country in 2021 went up by 0.7% compared to 2020, signaling two consecutive years of growth. In 2020, the multiple cropping index was 1.31. As the double cropping system keeps improving, the efficient utilization of farmland has increased accordingly.

Fourth, per unit yield enjoy huge potential. Although there is still some way to go compared with agriculturally advanced countries, the constant development of agricultural technologies represented by breeding techniques means there is enormous potential for China to increase its per unit yield. According to the survey conducted in 2019, farmland with medium- and low-yield accounted for more than two-thirds of the total. By implementing a strategy of sustainable farmland use and innovative application of agricultural technology, promoting the transformation of farmland with medium- and low-yield, accelerating the cultivation of high-quality farmland and stepping up efforts to develop protected agriculture, our per unit yield will enjoy even greater potential.   

Fifth, we have established solid policy mechanisms. The central rural work conference has affirmed the active role of the system in which both CPC committees and governments assume responsibility for safeguarding grain security, and emphasized the importance of ensuring acreage and output in main grain producing and marketing areas,, as well as areas with a balance between production and marketing. With more agricultural-specific policies delivered, farmers are growing more enthusiastic about production. Noticeably, these efforts will help us better respond to various risks and changes at home and abroad. International commodity prices will affect China's domestic markets in the form of imported inflation through the import and export of grain and other raw materials. Additionally, global natural disasters will impact the output, prices and markets as well. The top priority is to run our own affairs well, hold our rice bowls firmly in our own hands and take concrete measures to ensure food security. Thank you.

China Daily:

What were the new progress and breakthroughs in China's high-quality development for 2021? What aspects should be given more attention when pursuing high-quality development this year? And what about coordinating the relationship between the stable operation of the macro-economy and high-quality development? Thank you.

Ning Jizhe:

High-quality development is a prominent feature of China's 14th Five-Year Plan. In the past year, all regions and departments across the country thoroughly implemented the new development philosophy and promoted the stability and recovery of the economy while stepping up efforts to deepen reforms, expand opening-up, encourage innovation and accelerate reforms in quality, efficiency and drivers. We have made new achievements in high-quality development which were mainly demonstrated in the following five aspects.

First, innovation-driven development yielded new results. High-tech industries rapidly developed. In 2021, the value added from pharmaceutical, aerospace and equipment manufacturing industries, as well as electronic and communication device manufacturing, and computer and office equipment manufacturing industries above the designated size grew by 24.7%, 17%, 18.3% and 18% from the previous year, respectively. All of the above are high-tech industrial manufacturing industries. The valued added of information transmission, software and information technology services industries increased 17.2% year on year. China continued to enhance its national strategic strength in science and technology, witnessing the successful launch of Tianwen 1 Mars probe, the completion of Shenzhou 12 and Shenzhou 13, the operation of the national space laboratory, and other missions accomplished., 

Second, the coordinated development has made new progress. Industrial structures continued adjusting and optimizing. Over the past year, there were two important figures. In 2021, the value added of the manufacturing industry accounted for 27.4% of China's GDP, an increase of 1.1 percentage points from the previous year. At the same time, the value added of the service industry accounted for 53.3% of the national GDP, with its contribution rate to economic growth reaching 54.9%, 16.5 percentage points higher than the secondary industry. It's not an easy target for manufacturing and service industries to achieve. The demand structure has steadily improved. In 2021, the domestic demand's contribution rate to economic growth was close to 80%, signaling a growth of 4.4 percentage points over the previous year. The urbanization level has constantly improved. At the end of 2021, the urbanization rate among permanent resident populations grew by 0.83 percentage point compared to the same period of 2020.

Third, green and low-carbon development has made new achievements. We have made solid progress in energy conservation. In 2021, China's energy consumption per unit GDP dropped by 2.7% from the previous year, a big step forward compared to 2020. The statistic in 2020 remained the same as the previous year since the economy was heavily hampered by the epidemic. Clean energy consumption developed rapidly. According to preliminary calculation, the consumption of clean energies such as natural gas, hydropower, nuclear, wind, and solar accounted for 25.3% of the total energy consumption, one percentage point higher than the previous year. The output of green products has seen rapid growth as well. In 2021, the output of new energy vehicles and solar batteries grew by 145.6% and 42.1% compared to 2020, respectively. All of the figures listed above are extraordinary and suggest that the market enjoys tremendous prospects. The air quality constantly improved as well.

Fourth, we have drawn momentum from opening up to promote high-quality development and realize new breakthroughs. In the past year, China's total import and export of goods increased by 30% to 6 trillion U.S. dollars for the first time, hitting a new high. In addition, the growth rate also reached a record high since 2011; actualized use of foreign investment reached 1.1 trillion yuan, and China's trade volume with economies involved in the Belt and Road Initiative reached 11.6 trillion yuan; and the number of China-Europe freight train trips surged by 22% year on year to 15,000. In particular, at the beginning of this year, the Regional Comprehensive Economic Partnership (RCEP) officially entered into force, marking the largest free trade zone by far in terms of participating population, trade volume, and development potential. It is certain to promote the development of foreign trade, mutual investment, international trade, and international investment.

Fifth, new progress has been made in sharing the results of development. The income of urban and rural residents continued to grow. In 2021, the per capita disposable income of urban residents rose by 7.1% in real terms, and the per capita disposable income of rural residents rose by 9.7% in real terms. Spending on people's well-being also increased. From January to November, among the expenditure in the national general public budget, expenditures on housing security, education, social security and employment increased by 7.4%, 5.1% and 4.9% year-on-year, respectively.

At present, China's economy has shifted away from high-speed growth to high-quality development, and high-quality development is the theme for China's economic and social development in the 14th Five-Year Plan (2021-2025) period. To promote high-quality development, we must follow the general principle of pursuing progress while ensuring stability, focus on development as the top priority, promote reform and innovation, and pursue supply-side structural reform as our main task. Now, it is necessary to put stable growth in a prominent position, see that the economy operates within an appropriate range, maintain macroeconomic stability, promote high-quality development and the stable operation of the national economy at the same time, and coordinate the reasonable economic growth in volume and stable improvement in quality to ensure stable, sustained, and sound development of China's economy. Thank you. 

Cover News:

Increasing residents' income is an important part of securing people's livelihood. In 2021, what were the features of residents' income growth? Were the income gaps among different groups narrowed? What problems are now left to be resolved? Next, in what areas should we step up our efforts? Thank you. 

Ning Jizhe:

In 2021, as China's economy continued to recover, the employment situation was generally stable, the business efficiency of enterprises was improved, and people's basic living needs were effectively secured. All of these promoted the rebound of residents' income and narrowed the income gap. Details are mainly in the following aspects:

First, residents' income grew generally at the same pace as the economic growth. In 2021, the nationwide per capita disposable income of residents was 35,128 yuan, a nominal increase of 9.1% over that of the previous year. The real growth after deducting price factors was 8.1%, an average two-year growth of 5.1%, which was generally at the same pace as the growth of the economy.

Second, all types of incomes achieved overall growth. In 2021, driven by factors such as the deepening reforms to streamline administration and delegate power, improve regulation, and upgrade services and scaled efforts in helping businesses to get through challenges, the per capita net operating income of residents grew the fastest among all types of incomes, with a nominal increase of 11% over the previous year. This marks a change in the operating income of the previous year when COVID-19 took a higher toll on the growth of residents' net income. The policy of reducing burdens, stabilizing jobs, and expanding employment continued in the past year, and the targeted employment assistance for key groups was implemented, which boosted the income growth, with the per capita salary-based incomes of residents up 9.6% in nominal terms over the previous year, and the average monthly income of migrant workers up 8.8%. With the deepening of reforms in the capital market, market-based interest rate, and housing rental market, the per capita net property income of residents increased by 10.2% over the previous year. As the country secured people's livelihoods, with pension benefits being paid on time and in full, and efforts to provide temporary assistance being accelerated, residents' per capita net transfer income increased by 5.8% in nominal terms over the previous year, with an average two-year growth of 7.2%. All types of incomes rose across the board.

Third, the income gap between urban and rural residents continued to narrow. With the deepening of rural vitalization and a focus on agriculture, the income growth among rural residents was significantly faster than that of urban residents. In 2021, the nominal growth and real growth of the per capita disposable income of rural residents stood at 10.5% and 9.7%, respectively, both 2 percentage points faster than that of urban residents. Meanwhile, the per capita disposable income ratio of urban and rural residents was 2.5, down 0.06 percentage point from the previous year. The gap has continued to narrow over the years.

Fourth, the income of residents in the central and western regions grew at a faster pace. As the country implemented major regional strategies and coordinated development strategies, income growth of residents in the central and western regions has been faster than the average rate of the country. In 2021, the per capita disposable income of residents in the central region rose by 9.2%, and that of residents in the western region rose by 9.4%, 0.1 and 0.3 percentage point faster than the national average.

Fifth, the household income of middle- and low-income residents grew faster than that of the whole population. Speaking in terms of China's five income bands, in 2021, the per capita disposable income of people in the lower-income bracket (accounting for 20% of the total population) and in the lower-middle-income bracket (accounting for 20% of the total population) increased by 9.8% over the previous year. The growth rate of the per capita disposable income of the 40% least-wealthy residents was 0.7 percentage point faster than the national average. The per capita disposable income of people in the middle-income bracket (accounting for 20% of the total population) increased by 10.7%, 1.6 percentage points faster than the national average growth rate.

The income issues you are concerned about can be illustrated by specific figures. At the same time, we are soberly aware of the fact that the current downward pressure on China's economy is still relatively large, and the growth of residents' employment and income remains restricted. Though the income distribution gap between urban and rural areas, among regions, and different groups narrowed last year, the overall gap still exists. Next, we will focus on development as the top priority, pursue the people-centered development philosophy, advocate an employment-first strategy, and launch measures to promote income growth. We will also build a basic institution for the coordinated arrangement of primary distribution, redistribution, and third distribution; continue to equalize access to basic public services; gradually narrow the income distribution gap; and take solid steps to promote common prosperity. Thank you.

Chen Wenjun:

Thank you, Mr. Ning, and thanks to friends from the media. Today's press conference concludes here. Goodbye!

Translated and edited by Liu Jianing, Liu Qiang, Mi Xingang, Chen Xia, Yan Xiaoqing, Huang Shan, Xiang Bin, Li Huiru, Yang Xi, Zhang Rui, Zhang Tingting, Wang Wei, Xu Xiaoxuan, Qin Qi, Zhang Junmian, Wang Qian, Zhang Liying, Yuan Fang, Zhu Bochen, Wang Yiming, David Ball, Jay Birbeck, Drew Pittock and Tom Arnstein. 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:

Li Kuiwen, spokesperson of the General Administration of Customs (GACC) and director general of the GACC's Department of Statistics & Analysis

Chairperson:

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

Date:

Jan. 14, 2022

Xing Huina:

Ladies and gentlemen, good morning! Welcome to this press conference held by the State Council Information Office (SCIO). The SCIO will be hosting a series of press conferences on China's annual economic data. The first press conference being held today will focus on China's import and export performance in 2021. We are delighted to be joined by Mr. Li Kuiwen, spokesperson of the General Administration of Customs (GACC) and director of the GACC's Department of Statistics & Analysis, who will introduce the situation and answer your questions.

We will first invite Mr. Li Kuiwen to give a brief introduction.

Li Kuiwen:

Ladies and gentlemen, friends from the media, good morning! Welcome to today's press conference. It's a great pleasure to meet with you again. Next, I'll begin by introducing China's import and export performance for 2021, and then answer your questions.

In 2021, with the world experiencing the combined impacts of major changes and a pandemic both unseen in a century, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, China has used high-level opening-up to promote deeper reform and stimulate high-quality growth. China has stayed ahead globally in terms of economic development and pandemic response, and maintained rapid growth in foreign trade, which registered a record high in volume and steady progress in quality. According to statistics from the GACC, China's total foreign trade of goods expanded 21.4% year on year to 39.1 trillion yuan in 2021. Exports grew by 21.2% to 21.73 trillion yuan and imports increased by 21.5% to 17.37 trillion yuan. Compared with the same period in 2019, China's foreign trade, exports and imports increased by 23.9%, 26.1% and 21.2%, respectively. In 2021, there were five main features which I will now outline: 

First, China's foreign trade moved up another notch in 2021 by exceeding $6 trillion for the first time. The total goods trade amounted to $6.05 trillion. China first reached $4 trillion in foreign trade in 2013. In the following eight years, it crossed the thresholds of $5 trillion, and then $6 trillion in 2021, reaching a record high. The increase in foreign trade this year reached $1.4 trillion.

Second, China's trade with its main trading partners maintained sound growth. China's trade with countries along the Belt and Road rose at a faster speed. In 2021, China's trade with its top five trading partners, the ASEAN, the European Union, the United States, Japan and the Republic of Korea, stood at 5.67 trillion yuan, 5.35 trillion yuan, 4.88 trillion yuan, 2.4 trillion yuan and 2.34 trillion yuan, respectively, up 19.7%, 19.1%, 20.2%, 9.4% and 18.4%, respectively. During the same period, China's trade with countries along the Belt and Road rose by 23.6%, 2.2 percentage points higher than the overall growth rate.

Third, the trade models have been further optimized, with general trade accounting for more than 60%. In 2021, China's general trade increased by 24.7% to 24.08 trillion yuan, accounting for 61.6% of the total foreign trade volume, up 1.6 percentage points; among general trade, exports rose by 24.4% to 13.24 trillion yuan and imports rose 25% to 10.84 trillion yuan. During the same period, processing trade increased by 11.1% to 8.5 trillion yuan, accounting for 21.7% of the total foreign trade volume.

Fourth, foreign trade entities have been further energized, with the private sector playing a more important role. In 2021, the number of enterprises involved in exports and imports increased by 36,000 to 567,000. China's private sector registered 19 trillion yuan in imports and exports, an increase of 26.7%, accounting for 48.6% of the country's total foreign trade volume and 2 percentage points higher than the previous year. Meanwhile, foreign-invested enterprises marked 14.03 trillion yuan in foreign trade, up by 12.7%; and state-owned enterprises accumulated 5.94 trillion yuan, up by 27.7%. 

Fifth, exports and imports of electromechanical products maintained sound growth. In 2021, China's exports of electromechanical products increased by 20.4% to 12.83 trillion yuan, making up 59% of the country's total exports. Exports of automatic data processing equipment and its parts, cellphones, and automobiles increased by 12.9%, 9.3% and 104.6%, respectively. Meanwhile, imports of electromechanical products increased by 12.2% to 7.37 trillion yuan, accounting for 42.4% of total imports. The imports of integrated circuits increased by 15.4%.

2021 marked a milestone year in the history of the CPC and the country. Amid challenges and difficulties posed by the pandemic, China made outstanding achievements in foreign trade, which speaks volumes of its resilience. This is the result of the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core. Over the past year, China's customs have followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, kept firmly in mind the need to maintain political integrity, think in big-picture terms, follow the leadership core and keep in alignment. We have also strengthened our confidence in the path, theory, system and culture of socialism with Chinese characteristics, and resolutely upheld General Secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and resolutely upheld the Party Central Committee's authority and its centralized, unified leadership. We have fully implemented major policy decisions and plans of the Party Central Committee and the State Council and got things done in a timely manner. Coordinated efforts have been made to prevent the pandemic at ports and promote the steady growth of foreign trade. Supervision has been strengthened and services have been optimized. With all these efforts, we have effectively promoted the steady growth in the volume and quality of foreign trade.

In general, our foreign trade has gotten off to a good start in the 14th Five-year Plan period (2021-2025). Looking ahead throughout this year, it will face more uncertainties, instability, and imbalance. The Chinese economy faces pressure from the three aspects of demand contraction, supply shock, and weakening expectations. As the global COVID-19 situation remains grim, the external environment is prone to be more complex, graver, and more uncertain, with the recovery of international demand slowing down. In addition, because of the high foreign trade base in 2021, it will continue to face certain pressure in 2022. While facing these difficulties and challenges, we must also see that the Chinese economy is resilient and that the fundamentals sustaining China's steady and long-term economic growth remain unchanged. We must have firm confidence in stabilizing the fundamentals of foreign trade.

Next, customs will uphold the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 19th CPC National Congress and the plenary sessions of the 19th CPC Central Committee, and earnestly implement the decisions and plans of the Central Economic Work Conference. Customs will continue to follow the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy, accelerate the fostering of a new pattern of development, and continue to ensure stability on the six fronts and security in the six areas. Customs will coordinate development and security, coordinate the pandemic prevention and control at ports and efforts to achieve a steady foreign trade growth, strengthen supervision and improve services, and continue to optimize the business environment at ports to better serve high-level openness and high-quality development. Customs will also do a good job in cross-cycle adjustment and promote the stable development of foreign trade to welcome the convening of the 20th CPC National Congress with excellent performance.

Now, I would like to take your questions.

Xing Huina:

Thank you, Mr. Li, for your introduction. Now, it is time for questions. Please indicate the media organization you work for before raising questions.

China Daily:

China's foreign trade volume maintained double-digit growth in 2021, hitting a record high. What are the main driving factors? What are your expectations for foreign trade this year? Thank you.

Li Kuiwen:

Thank you for your questions. China's foreign trade achieved rapid growth in 2021. Its volume exceeded the $5 trillion and $6 trillion thresholds over the year, setting new highs while its quality improved steadily. It has gotten off to a good start in the 14th Five-year Plan period. In our view, the main factors driving the growth are as follows:

First, China maintained a globally leading position in economic development and pandemic control. In 2021, the Chinese economy continued to recover. The country took new steps to build a new development pattern, made new progress in high-quality development, and maintained rapid growth in its major economic indicators. The Chinese economy is resilient, and the fundamentals sustaining China's steady and long-term economic growth remain unchanged. Domestic production and consumption demand provided strong support for the steady growth of foreign trade. According to customs statistics, in 2021, China's import and export of intermediate products rose by 24.9% and 28.6%, respectively, while the import of consumer goods increased by 9.9%.

Second, the global economy remained on a trajectory toward recovery. The global economy showed a recovery trend in general in 2021. The World Bank and the International Monetary Fund both predicted that the global economy would grow by over 5%, and the World Trade Organization predicted that the global trade of goods would go up by 10.8%. In 2021, China's export to the EU and Africa both grew by over 20%, and its export to Latin America increased by over 40%. From a product perspective, on top of the high growth in 2020, China's export of products related to the stay-at-home economy, such as laptops, tablets, and household appliances, increased by 13.2% in 2021, while its export of medical and medicinal materials as well as medicines grew by 101.2% – strong support of the global fight against COVID-19.

Third, policies and measures to stabilize growth continued to work. Since last year, China has introduced a series of policies and measures to stabilize market entities and the market as well as to ensure a stable and smooth industrial chain and supply chain of foreign trade. Examples are maintaining reasonable and sufficient liquidity, extending and improving some tax and fee cuts, implementing new structural tax cuts; increasing financing support for micro, small, and medium companies and manufacturing businesses; deepening reforms to streamline administration and delegate power, improve regulation, and upgrade services; continuously optimizing the business environment, accelerating the development of new forms and models of business in foreign trade; further deepening the reform of cross-border trade facilitation; and promoting the reform and innovation in trade and investment facilitation in pilot free-trade zones. Their sound implementation ensured continuous effects, helping foreign trade companies out of difficulties and greatly stimulating the vitality of market entities. They served as an important support for the steady growth of foreign trade.

Regarding the trend of China's foreign trade, as I mentioned earlier, as the COVID-19 pandemic is still undergoing many twists and turns, China faces a more complicated, severe, and uncertain international environment, and the comparative advantage and cardinal effect that the Chinese economy can depend on to take the lead to recover may weaken. All the above bring more uncertainties, destabilizing factors, and imbalances to the development of China's foreign trade in 2022. However, we should understand that the fundamentals sustaining China's steady and long-term economic growth remain unchanged, which will provide powerful support for maintaining stability in foreign trade. Thank you.

CCTV:

China's import and export to countries along the Belt and Road's routes outpaced the global average over the past year. Were there any highlights you'd like to share? What new measures have China's customs taken in jointly building the Belt and Road Initiative? Thank you.

Li Kuiwen:

Thank you for your questions. Last year marked the eighth anniversary of the Belt and Road Initiative (BRI). Since the BRI was put into action, the trade relationship between China and BRI-participating countries has been increasingly close. Data from China's customs showed that in 2021, China's import and export to countries along the routes reached 11.6 trillion yuan, up 23.6%, 2.2 percentage points higher than the overall growth rate of China's foreign trade in the same period. Of this, exports reached 6.59 trillion yuan, up 21.5%; imports totaled 5.01 trillion yuan, up 26.4%. That growth is mainly down to the following aspects.

First, the trade volume has grown steadily. From 2013 to 2021, China's total import and export volume with countries along the routes increased from 6.46 trillion yuan to 11.6 trillion yuan, with an average annual growth rate of 7.5%, and its share in China's total foreign trade increased from 25% to 29.7% in the same period.  

Second, the cooperation of the industrial and supply chains has tightened. From 2013 to 2021, the proportion of intermediate products in China's exports to BRI-participating countries increased from 49.8% in 2013 to 56.2% in 2021. The export of auto parts, textiles, and lithium electronic batteries increased by 26.7%, 14.1%, and 50.4%, respectively, in 2021.

Third, the cooperation in energy, agriculture, and mineral resources has gained momentum. In 2021, China imported 1.18 trillion yuan of crude oil from countries along the routes, an increase of 44%; 326.55 billion yuan in agricultural products, up 26.1%; 212.77 billion yuan in metal ores, up 24.9%; and 185.45 billion yuan in natural gas, up 38.9%.

Fourth, private enterprises have been active. In 2021, the import and export of private enterprises to BRI-participating countries reached 6.21 trillion yuan, an increase of 25.6%, accounting for 53.5% of China's overall import and export to those countries during the same period, an increase of 0.8 percentage point.

Last year, we mainly did the following work to jointly promote high-quality BRI cooperation.

First, we have stepped up efforts to promote the "Smart Customs, Smart Borders, and Smart Connectivity" Initiative. Chinese President Xi Jinping called for deepening customs cooperation to ensure trade security and faster clearance and exploring cooperation on a pilot basis under the "Smart Customs, Smart Borders, and Smart Connectivity" Initiative while hosting the China-CEEC Summit on Feb. 9, 2021. China's customs have resolutely implemented the important instructions of President Xi and promoted reform and development of the customs service fully in line with the initiative. A guideline has been formulated and implemented to strongly combine the initiative and high-quality BRI development, so as to realize "one plus one is greater than two." Until now, we have launched 78 global cooperation projects, most of which involve countries along the routes.

Second, we have formulated a work plan to promote the high-quality development of the BRI cooperation during the 14th Five-Year Plan period (2021-2025). The year 2021 was the inaugural year of China's 14th Five-Year Plan. To accomplish the work for the year in a scientific and effective way, the GACC has formulated this plan by adopting a problem-oriented and objective-oriented approach. We have achieved coordinated development with a focus on the key countries, sectors, and projects. Under the "Smart Customs, Smart Borders, and Smart Connectivity" Initiative, we have ramped up efforts to promote the joint development of the BRI cooperation, thereby offering wisdom and strengths to the modernization of the national governance system and capabilities. 

Third, we pragmatically pushed forward key projects. We have made every effort to promote "Authorized Economic Operator" (AEO) mutual recognition and cooperation with countries that are willing to jointly build the Belt and Road. In 2021, we overcame the impact of the pandemic and signed AEO mutual recognition agreements with five countries jointly building the Belt and Road — Serbia, Chile, Iran, Uganda, and South Africa. By the end of 2021, China customs had signed AEO mutual recognition agreements with 31 countries jointly building the Belt and Road. In addition, we pragmatically promoted the "Customs-Train Operators Partnership for Secure and Expedited Clearance of CR Express Carried Goods (C-TOP)," and signed cooperation documents with Kazakhstan and Belarus on the C-TOP program to support the development of China-Europe freight trains, further expand connectivity and cooperation, and promote unimpeded trade. Thank you.

Beijing Youth Daily:

The Beijing Winter Olympics and Paralympics will open soon. What services and guarantees does the customs system provide for the smooth running of the Winter Olympics and Paralympics? Thank you.

Li Kuiwen:

Thank you for your question. The Beijing Winter Olympics is a major landmark event at an important historical time in China. The GACC resolutely implements the spirit of General Secretary Xi Jinping's important instructions on the COVID-19 prevention and control at ports and the preparation for the Winter Olympics and Paralympics, strengthens supervision, and optimizes services. We will unremittingly implement port pandemic prevention and control in a scientific and targeted manner, ensure high-quality and efficient services for the health quarantine of inbound personnel, and carry out material customs clearance for the Winter Olympic and Paralympic Games. The GACC will make due contributions to safeguarding the security of the Chinese capital city and ensuring the smooth holding of the Winter Olympics and Paralympics. Our work is mainly as follows:

First, we will implement port pandemic prevention and control in a scientific and targeted manner and provide services for the arrival and departure of Olympic-related personnel while resolutely curbing the spread of the pandemic through the port. We will strengthen communication with the arrival and departure center of the Beijing 2022 organizing committee and other departments, learn about the information of inbound and outbound personnel in advance, continue to refine the customs clearance guarantee plan, and implement the "one flight, one policy" for all Winter Olympics-related flights so as to achieve strict supervision, targeted quarantine, and efficient services. For example, in order to reduce the time people stay at the port, we have specifically compiled the Instructions for Health Declaration of Inbound Winter Olympics Charter Flights and translated it into multiple languages so that Olympic-related personnel can fill in health declaration cards in advance before boarding. The efficiency of customs clearance will then be improved. In accordance with the requirement that "the prescribed routines must be done 100%; even the 99% is unqualified," we strictly standardize all measures in aspects of health declaration card verification, temperature monitoring, medical inspection, sampling and testing, handover and transfer, and information reporting for inbound personnel. We have paid close attention to the pandemic prevention and control work at the port and resolutely curb the spread of the pandemic through the port. As of Jan. 10, 2022, Beijing customs has monitored and handled a total of 196 Olympic-related flights, involving 5,958 Olympic-related personnel.

Second, we continue to optimize our services to ensure the efficient customs clearance of the Winter Olympics materials. We have issued the Notice on Customs Clearance for the Beijing 2022 Winter Olympic and Winter Paralympic Games in advance to provide detailed guidelines for inbound and outbound materials and personnel for the Winter Olympics in eight aspects, including information registration and filing, tax guarantees for temporarily imported materials, pre-entry filing and approval, customs clearance of imported materials, supervision of personnel and personal items, and customs clearance of journalists' interview equipment. At the same time, we have set up special customs channels and special windows for inbound and outbound Winter Olympics materials and personnel, relied on the Winter Olympics' paperless customs clearance management system to simplify the declaration, and implemented the "5+2" (5 working days + 2 weekend days) reservation clearance system in order to ensure that Winter Olympics materials are available for inspection 24 hours a day. In addition, we have worked hard to supervise imported food related to the Olympics and ensure the safe and smooth supply of imported food for the Beijing Winter Olympics and Paralympics. As of Jan. 10, 2022, Beijing customs has monitored, handled, inspected, and released 637 shipments of inbound materials for the Winter Olympics, with a value of approximately 1.499 billion yuan.

Third, we strengthen investment in technology and personnel to provide strong support for the Winter Olympics with high-quality and efficient customs supervision services. Beijing customs, as the competent customs office for the 2022 Beijing Winter Olympics and Winter Paralympics, has been promoting the transformation of the special achievements of the high-tech Winter Olympics. It has deployed and applied 10 kinds of equipment and facilities such as the nuclear radiation holographic positioning system, universal disinfection cabinets, trace odor detectors, and intelligent inspection robots at the port, in a bid to improve the intelligence and informatization level of supervision and clearance for the Winter Olympics. Beijing customs keeps improving the "horizontal + vertical" human resources echelon working mechanism. It has established a support echelon, including more than 1,000 front-line and reserve personnel and more than 400 emergency support personnel, to provide all-around backup support for Olympic-related personnel during the peak period for their entry, according to the actual needs of the Winter Olympics customs clearance work. Thank you.

Phoenix TV:

China just celebrated the 20th anniversary of its accession to the World Trade Organization (WTO) last month. What are the characteristics of China's import and export of goods over the past 20 years? Thank you.

Li Kuiwen:

Thank you for your question. The year 2021 marked the 20th anniversary of China's accession to the WTO. Customs data showed that the total volume of China's imports and exports increased from 4.22 trillion yuan in 2001 to 39.1 trillion yuan in 2021, up by an annual average rate of 12.2%. Customs data are official figures from China's import and export of goods. The statistics reflect the leap-forward development of our trade in goods over the past 20 years.

First, the total import and export of goods have increased by more than eight times, making China the world's largest trader in goods. The total value of China's imported and exported goods was 4.22 trillion yuan in 2001, and exceeded 10 trillion yuan, 20 trillion yuan, and 30 trillion yuan in 2005, 2010, and 2018, respectively. The figure approached 40 trillion yuan in 2021, registering an increase of 8.3 times in 20 years. In particular, the total value rose from 24.4 trillion yuan to 39.1 trillion yuan in the past 10 years, with an increment of 14.7 trillion yuan, equivalent to China's import and export of goods in 2009. This has epitomized China's achievements in reform and opening-up in the new era. What's more, China's import and export of goods accounted for only 4% of the world's total in 2001, and its share jumped to 13.5% in the first three quarters of 2021. In 2013, China became the world's largest trader of goods. In 2021, the total value of US dollar-denominated imports and exports exceeded 6 trillion yuan for the first time in history.

Second, the structure of exports has changed significantly, with machinery and electronic products now accounting for nearly 60% of all exports. Over the past 20 years, China's export of goods has grown at an average annual rate of 12.5%. Machinery and electronic products have become the most exported products, accounting for 59% of the total in 2021. It is worth mentioning that since the outbreak of COVID-19, China has actively promoted international anti-pandemic cooperation and provided hundreds of millions of masks, protective suits, test kits, vaccines, and other materials to the international community, thus contributing to the global COVID-19 response and economic recovery.

Third, imports have continuously expanded, and the import of high-tech and resource products has grown steadily. Over the past 20 years, China's import of goods has increased at an average annual rate of 11.8%. In 2009, China became the world's second-largest importer. In the first three quarters of 2021, China's imports accounted for 12.1% of the international market. A more open Chinese market has enabled the rest of the world to better share in the dividends brought by its economic growth and booming consumption. Over the past 20 years, China's import of high-tech products has risen steadily at an average annual rate of 14%, promoting the transformation and upgrading of the industrial structure. The import of resource products has expanded in an orderly manner. The import of metal ore, crude oil, coal, natural gas, and other resource products has increased at an average annual rate of 18%, providing a strong supply to ensure steady domestic economic growth.

Fourth, China has diversified its trading partners, with ASEAN becoming our largest trading partner. Over the past 20 years, we have maintained stable trade relations with traditional markets, including the European Union, the United States, Japan, and South Korea, which together accounted for 38.3% of China's total foreign trade in 2021. At the same time, we have actively explored emerging markets such as ASEAN, Africa, Latin America, Russia, and India. These partners accounted for 16% of China's total foreign trade in 2001, but the figure increased to 30.7% in 2021. Among them, ASEAN became China's largest trading partner in 2020, and it remained so in 2021, accounting for 14.5% of China's total foreign trade. It is worth noting that China has continued to deepen trade relations with countries along the Belt and Road, expand trade scale and further promote the balanced and mutually beneficial development of trade. 

Fifth, the number of foreign trade entities multiplied, with private enterprises taking up the largest share of all business entities in foreign trade. In 2021, 567,000 Chinese enterprises actually engaged in import and export business, 6.3 times more than that in 2001. In 2019, private enterprises took up a 42.7% share in the gross value of imports and exports of China, increasing significantly from 6.1% in 2001. In 2021, their share grew to 48.6%. Over the past 20 years, private enterprises have taken up the largest share of all foreign trade entities in China. Meanwhile, the number of foreign-invested enterprises actually engaging in import and export business also further increased to reach 82,000 in 2021, an increase of 21,000 compared with that in 2001, with the average annual import and export scale of the enterprises reaching 170 million yuan, increasing by 4.8 times compared with 2001.

Sixth, in foreign trade, new driving forces have been constantly stimulated, and new business modes have emerged one after another. Customs statistics show that in 2021, imports and exports in China's comprehensive bonded zones, pilot free-trade zones, and the Hainan Free Trade Port increased by 24.3%, 26.4%, and 57.7%, respectively, demonstrating a strong development momentum. In terms of the new trade modes, the scale of cross-border e-commerce and market procurement trade expanded rapidly. In 2021, the import and export volume of China's cross-border e-commerce reached 1.98 trillion yuan, up 15%, and market procurement trade's exports increased by 32.1%. Thank you.

ThePaper.cn:

The RCEP deal came into force on Jan. 1, 2022. Could you briefly introduce China's trade with RCEP member countries as it stood last year? What have customs done to promote the implementation of the RCEP deal? Thank you.

Li Kuiwen:

Thanks for your question. On Jan. 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) agreement came into force in six ASEAN countries, namely Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam, as well as China, Japan, New Zealand, and Australia, marking the start of the world's largest free trade zone so far. Customs statistics show that in 2021, China's imports from and exports to the other 14 RCEP member countries reached 12.07 trillion yuan, up 18.1%, and accounting for 30.9% of China's total foreign trade. Of this, exports reached 5.64 trillion yuan, up 16.8%, while imports reached 6.43 trillion yuan, up 19.2%.

Among the 701 binding obligations of the RCEP agreement, the GACC is responsible for 174 items solely or jointly, accounting for 24.8% of the total. At present, relevant work has been done comprehensively. The GACC's main work in promoting the implementation of the RCEP agreement can be seen in the following three aspects:

First, in the aspect of rules of origin and tariff concessions. The GACC issued two relevant regulations, namely measures on the administration of origin of goods imported and exported under the RCEP and measures for the administration of approved exporters, along with four supporting normative documents. In response to RCEP's tariff concession model and requirements for implementation of the rules of origin, we upgraded the informationization system for customs origin of goods management, realized the shared use of visa data and customs clearance data, and built a three-dimensional customs supervision and service network, which combines origin of goods management, enterprises management, and commodity management. We completed the consultations on the transposition of product-specific rules as well as the consultations on the guidance for the implementation of the rules of origin. We shared China's approach with other members for a consensus to be reached and overcame obstacles for the implementation of the RCEP deal.

Second, in the aspect of customs procedures and trade facilitation. Focusing on the RCEP trade facilitation rules, we continued to perfect customs clearance procedures, improve customs clearance efficiency, and reduce customs clearance costs, aiming to accelerate the building of a market-oriented, law-based, and international business environment at ports. The RCEP members were encouraged to optimize their own workflows, and standardize and simplify customs regulatory procedures. We jointly reviewed customs procedures with other RCEP members. We formulated the plan to promote the mutual recognition of AEO between China and other RCEP members and its implementation. So far, China has signed mutual recognition arrangements with five of the 10 RCEP members with the AEO system. Relevant measures have been piloted at comprehensive bonded zones in the free trade zones in Shanghai, Guangdong, Tianjin, and Fujian, such as clarifying the range of acceptable "minor discrepancies or errors" for certificates of origin under preferential trade agreements.

Third, in terms of animal and plant quarantine, food security, and import and export commodity inspection, we leveraged China's highly complementary cooperation with RCEP members in animal and plant quarantine, comprehensively straightened the access mechanisms for imported agricultural products, and promoted the export of China's high-quality agricultural products. We strengthened animal and plant epidemic information sharing with RCEP members, advanced international epidemic surveillance collaboration, and launched the upgraded version of China-ASEAN animal and plant quarantine and food security cooperation information website. We paid more attention to and strengthened studies on relevant technical trade measures taken by RCEP members, raised our trade concerns, and actively negotiated with foreign members through bilateral and multilateral channels so as to safeguard the legitimate rights and interests of China's export enterprises. 

At the same time, we worked hard to publicize and interpret the policies on RCEP customs business. In particular, we organized nearly one thousand training programs regarding rules of origin in various forms and through diverse platforms to help acquaint enterprises with these rules, conventional tariff rates, and related requirements of favored customs clearance for import and export goods, the application for certificates of origin and independent statement issuance, among others. Thank you.  

People's Daily:  

The Central Economic Work Conference proposed that the micro-economy should continue to stimulate the vitality of market entities. How was the import and export performance of foreign trade market players last year? What measures did the GACC introduce to galvanize the foreign trade enterprises? Thank you. 

Li Kuiwen:  

Thank you for your question. In 2021, China's foreign trade businesses continued to gain momentum, which strongly supported the steady growth of foreign trade. The number of enterprises with substantive import and export achievements increased by 36,000 to 567,000. Among them, private enterprises remained the largest foreign trade entity in China, with imports and exports totaling 19 trillion yuan, up 26.7% and accounting for 48.6% of the country's total foreign trade. Imports and exports of foreign-invested companies remained stable at 14.03 trillion yuan, up 12.7%, and those of state-owned enterprises accelerated and rose by 27.7% to 5.94 trillion yuan.  

To stimulate the vitality of foreign trade market players, the administration made efforts in the main following aspects in 2021:

First, we implemented the reforms to streamline administration and delegate power, improve regulation, and upgrade services, and enabled the filing of customs declaration entities to be addressed online in the whole process and anywhere across the country. We further deepened the reforms mentioned above, actively promoted the transformation from approval to filing of all the customs declaration entities, and introduced measures for the convenience and benefits of the people and enterprises, including the whole process of online filing anywhere nationwide. Under these measures, enterprises can log in the "China International Trade Single Window" or the "Online Customs" websites for filing across the country, and print the filing receipt after the local customs' review, moving the whole process online and making it paperless. If enterprises happen to choose the wrong local customs, the customs that receives the application should be responsible for handling the application, thus enabling enterprises to apply at any site nationwide and settle documentation all at once without any cost or travel. 

Second, we have sped up the international mutual recognition and cooperation of AEOs to help enterprises enjoy convenience further afield. In doing this, we focused on Belt and Road countries, RCEP members, Central and Eastern European countries, and other major trading countries. Since 2021, China has completed AEO mutual recognition with Serbia, Chile, Uganda, Iran, and South Africa. To date, China has signed AEO mutual recognition agreements with 21 economies, including the European Union and Singapore, covering 47 countries and regions — the most in the world. Among them, 31 are Belt and Road countries, five are RCEP members, and 13 are Central and Eastern European countries. When China's AEO enterprises export goods to countries and regions with mutual recognition, they can enjoy the convenient measures offered by local customs, including reduced inspection, priority handling, the appointment of liaison officers, and prioritization of customs clearance during emergencies so as to reduce trade costs and enhance enterprises' vitality.  

Third, we have strengthened intellectual property protection and boosted companies' innovation. We took stringent measures to crack down on intellectual property infringement and carried out a series of campaigns, including comprehensive intellectual property protection, intellectual property protection in shipping and delivery channels, and intellectual property protection for export transshipment goods. We also formulated a knowledge graph centering on intellectual property customs protection and developed and piloted a new-generation inspection management system featuring the use of intelligent identification of intellectual property and trademarks on mobile devices. We provided guidance and services regarding company-specific intellectual property protection and strengthened companies' awareness and capability in intellectual property protection. We continued to enhance law-enforcement cooperation across different departments, customs zones, and borders and cemented whole chain of intellectual property protection so as to better serve the innovative development of companies. 

Next, the GACC will follow the requirements of boosting the confidence of foreign trade entities and deepen the reforms of streamlining administration and delegating power, improving regulation, and upgrading services. We will also improve the business environment at ports, help companies to address their difficulties and resume development, and further stimulate the vitality and growth momentum of foreign trade entities. 

Global Times: 

The pandemic has dealt a severe blow to the traditional way of trade, while new business forms and models such as cross-border e-commerce have played a vital role in ensuring orders, markets, and market shares. Can you please tell us more about new modes of foreign trade in 2021? Thank you. 

Li Kuiwen:

Thank you for your question. New business forms and models such as cross-border e-commerce and market procurement are an important part of China's foreign trade, and they also reflect a key trend in international trade development. Since the COVID-19 pandemic, China's cross-border e-commerce has unleashed its strength in online marketing, online transaction, and contactless delivery, grown its new strength in international cooperation and competition, and has thus registered rapid and sustained growth in foreign trade. 

First, in terms of cross-border e-commerce, B2B export pilot programs have been expanded, and the China-Europe freight trains have developed in tandem with new business forms such as goods consolidation and transit trade. In order to help export enterprises engaged in cross-border e-commerce to better tap into the international market, the B2B export supervision pilot program regarding cross-border e-commerce was expanded to customs across China in the latter half of 2021, with supporting policies being constantly improved. Meanwhile, cross-border e-commerce railways, including those from the China-SCO cooperation demo area to Minsk in Belarus, from Yiwu and Suzhou to Europe, and from Hefei to Hamburg and Wilhelmshaven in Germany, opened and began regular operations, resulting in the integrated development of China-Europe freight train and cross-border e-commerce. Data shows that cross-border e-commerce registered a trade volume of 1.98 trillion yuan in 2021, increasing 15% year on year. Exports of cross-border e-commerce reached 1.44 trillion yuan, rising 24.5% year on year. 

Second, the export volume through market procurement trade has exceeded 900 billion yuan. As China expands its national market procurement pilots, the figure in 2021 amounted to 930.4 billion yuan, up 32.1%, accounting for 4.3% of the total export of the same period and driving exports growth by 1.3 percentage points. Thank you.

Xing Huina:

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

China News Service:

As we know, China's foreign trade aimed to remain stable in size and achieve high-quality development in 2021. In terms of improving quality, what were the new development and features of China's imports and exports last year? Thank you.

Li Kuiwen:

Thank you for your question. In 2021, China's foreign trade achieved new heights in size and saw new progress in quality. We believe this is reflected in the following aspects:

First, China's foreign trade took an increased share in the international market. According to the latest statistics, in the first three quarters of 2021, China's exports accounted for 14.9% of the global market share, up 0.6 percentage point year on year and 3.9 percentage points higher than that of 2012. This increment equals the global market share of China's export in 2000. In the meantime, since China's imports accounted for over 10% of the global market share for the first time in 2013, this figure has increased steadily. The global market share of China's imports reached 12.1% in the first three quarters of 2021, up 0.5 percentage point year on year. This showcases the great achievements we have made as we enter a new era of reform and opening-up.

Second, new business forms saw even more rapid development. In 2021, the export volume in cross-border e-commerce sector increased 24.5% year on year, and its exports through market procurement trade grew 32.1%. The policies and measures China adopted to promote the healthy, sustained, and innovative development of new business forms and models of foreign trade continue to deliver effect.

Third, platforms for opening-up played a larger role. In 2021, the foreign trade of the comprehensive bonded zones across China increased 24.3%, and that of pilot free trade zones grew by 26.4%. The foreign trade of the Hainan free-trade port surged 57.7%.

Fourth, the vitality of China's market entities grew stronger. In 2021, the number of foreign trade enterprises with actual import and export business performance reached 567,000, 36,000 more than the previous year. Among them, private enterprises have contributed to 58.2% of the growth of the country's foreign trade.

Fifth, the structure of China's foreign trade was further optimized. In terms of the trade structure, the share of general trade increased by 1.6 percentage points in 2021. Nearly 60% of goods exported were electronic products. In terms of regional development, the foreign trade of China's central and western regions amounted to 6.93 trillion yuan, up 22.8%, and 1.4 percentage points higher than the growth rate of China's overall foreign trade of the same period. In terms of trading partners, China's foreign trade with major economies such as EU, the U.S., and Japan increased 17.5%, and trade with Latin America and Africa surged 31.6% and 26.3%, respectively. China and its trading partners jointly safeguarded the stability of global industrial and supply chains and propped up the world's economic recovery.

I would also like to take this opportunity to introduce the efforts being made by Chinese customs in coordinating pandemic prevention and control in port areas and facilitating the growth of foreign trade.

In 2021, despite the fallout from the COVID-19 pandemic, China's foreign trade made remarkable achievements and became a highlight of China's economy. While demonstrating the sector's strong resilience, this also speaks volumes about the unremitting efforts of Chinese customs.

Over the past year, customs departments across China followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, took firm and swift actions based on the guiding principles of General Secretary Xi Jinping's important instructions, thoroughly grasped the new features and requirements of the new stage of development, and implemented the new development philosophy in a complete, accurate, and comprehensive manner. The 14th Five-Year Plan for customs development and that for the development of port areas were introduced and implemented, embarking on a new journey toward socialist modernization in terms of customs development.

In the past year, customs authorities around the country coordinated development and security, strengthened supervision and improved services; enhanced their regulatory capacity; implemented stringent, science-based, and targeted epidemic prevention and control measures at the port; maintained a tough stance against smuggling; vigorously created a more business-friendly environment at the port; and effectively promoted the steady and quality growth of foreign trade.

Over the past year, customs authorities around the country adopted a holistic approach and actively integrated into the overall process of national development, supporting the implementation of major national strategies, including the coordinated development of the Beijing-Tianjin-Hebei region, the Yangtze Economic Belt, the Guangdong-Hong Kong-Macao Great Bay Area, and the integrated development of Yangtze River Delta. They also served the pilot free trade zones and the construction of Hainan Free Trade Port, promoted high-quality development of the Belt and Road Initiative through joint efforts, expanded the mutual recognition of AEOs, advanced the initiative of "Smart Customs, Smart Borders and Smart Connectivity," completed preparatory work for the RCEP implementation ahead of schedule, and promoted China to open wider at a high standard.

I will report some concrete work as follows:

First, efforts were made in epidemic prevention and control in a science-based and targeted way at points of entry and exit. Since 2021, the customs has taken resolute, rapid, and strong measures to implement science-based, targeted, and strict regulations in epidemic response and strengthened quarantine inspection at points of entry and exit.

Step one, strengthening assessment of pandemic situation. We have strictly observed the principle of early detection, reporting, quarantine and treatment, and closely monitored and assessed the pandemic situation overseas and the situations of the virus mutation, and changing prevention and control measures, on a daily basis; and required the customs at the land border crossings to implement the principle of "targeted plan for each land border crossing," and further improved and refined their working plans and emergency responses so as to strictly prevent the virus from entering the country through the land border crossings.

Step two, tightening up border quarantine. The customs tightened checks on transportation vehicles before they entered China, and took a series of checking measures for people entering the country, including taking temperatures twice, checking their Health Declaration Forms, medical screening, and sampling testing to fully intercept any potential risks brought by inbound travelers. We have also strengthened the response mechanism of joint prevention and control with relevant local departments in order to transfer all inbound travelers and to have them report the relevant information, achieving seamless and closed-loop management. 

Step three, we adhered to the principle of "virus-prevention amidst people, goods, and the environment." The GACC, according to the working plan of the State Council's inter-agency task force, launched nucleic acid monitoring and testing at points of entry and preventive disinfection and supervision for imported cold-chain food and imported non-cold chain container goods from high-risk areas. They also supervised airlines to ensure they stringently disinfected their aircraft according to the requirements of the State Council's inter-agency task force.

Step four, personal protection has been strengthened. Chinese customs made efforts to implement a safety protection system and supervision system, enhanced training and assessment, and strictly regulated personal protective procedures. Rigorous closed-loop management was applied to people working in high-risk sectors. All the front-line workers at the port were covered by complete vaccination against COVID-19. The authority also accelerated the coverage of booster vaccinations, stressing that personal protective standards and measures should remain the same after the vaccination.

Second, we have spared no effort to promote the steady growth of foreign trade. In 2021, focusing on the concern of market entities, Chinese customs made concerted efforts to pursue high-level opening-up. We actively implemented all policies and measures stabilizing foreign trade and inbound investment to help maintain the momentum of steady and robust growth of imports and exports.

The first effort was to keep improving the business environment at our ports. Except for some exceptional cases, all 38 customs supervision documents involved in imports and exports can be processed at a single window. In addition, the expansion of pilot financial services through the "Single Window System" benefited more than 230,000 foreign-trade companies, consolidating the progress in reducing the customs clearance time for imports and exports. As a result, in December 2021, the average time for customs clearance was reduced to 32.97 hours for imports and 1.23 hours for exports, which was cut by 66.14% and 89.98%, respectively, compared with that in 2017.

Secondly, customs clearance costs have been effectively reduced. We have significantly brought down government-imposed transaction costs by implementing institutional innovation. In 2021, we completed business filing procedures online for 183,000 companies in a simplified and speedy manner. In addition, we have advanced the pilot reform of customs surety insurance. By the end of 2021, the bond insurance has guaranteed a total of 534.02 billion yuan in duties and tax payments by 3,775 companies, helping them reduce costs and increase efficiency. 

Thirdly, we have made great efforts to develop new forms of trade. Measures to reform cross-border e-commerce B2B export supervision have been improving. Since July 1, 2021, customs authorities nationwide have applied a new supervision model to cross-border e-commerce B2B direct export and export to overseas warehouses, enabling companies to better develop the international market. We have supported the expansion of the market procurement trade pilot program and worked with related departments to evaluate new marketplaces covered by the pilot program. Up to now, a total of 31 marketplaces have been included in the market procurement trade pilot scheme.

Finally, we have actively supported the development of new pacesetters of opening-up. We have promoted the high-quality development of comprehensive bonded zones, and supported qualified regions that have demand for such zones to open new ones. In 2021, eight new comprehensive bonded zones were built. Up to now, there are 168 special customs supervision areas nationwide. In addition, we have given full play to the role of pilot free trade zones as the "testing ground." In 2021, we filed and approved preliminary trials on 25 innovative measures to help high-level opening-up. Thank you.

Xing Huina:

Thank you, Mr. Li. Today's press conference is at this moment concluded. Those news organizations that didn't get a chance to raise questions today may continue to keep in contact with us after the press conference. Thanks to friends from the media. Goodbye.

Translated and edited by Zhang Jiaqi, Wang Yiming, Ma Yujia, Chen Xia, Zhang Rui, Wang Wei, Zhang Liying, Li Huiru, Lin Liyao, Liu Sitong, Xu Xiaoxuan, Liu Qiang, Zhang Lulu, Huang Shan, Li Xiao, Zhang Tingting, He Shan, Zhu Bochen, Wang Qian, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Li Sen, director general of the General Planning Department of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG)

Yan Jiarong, spokesperson of the BOCOG

Liu Yumin, director general of the Planning and Construction Department of the BOCOG

Yu Bo, chief of Yanqing District of Beijing Municipality

Liu Haifeng, deputy mayor of the Zhangjiakou Municipal People's Government, Hebei province, and deputy director of the Zhangjiakou Municipal Office for the 2022 Olympic and Paralympic Winter Games

Chairperson:

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

Date:

Jan. 13, 2022

Chen Wenjun:

Good morning, ladies and gentlemen. Welcome to today's press conference. The Beijing 2022 Olympic and Paralympic Winter Games are in place and will kick off in three weeks. Everyone is very concerned about how the green Olympics initiative has been implemented throughout the preparation process and what a green Olympics will look like. Today, we have invited relevant officials to attend the press conference to introduce the situation and take your questions. They are Mr. Li Sen, director general of the General Planning Department of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG); Ms. Yan Jiarong, spokesperson of the BOCOG; Mr. Liu Yumin, director general of the Planning and Construction Department of the BOCOG; Mr. Yu Bo, chief of Yanqing District of Beijing Municipality; and Mr. Liu Haifeng, deputy mayor of the Zhangjiakou Municipal People's Government, Hebei province, and deputy director of the Zhangjiakou Municipal Office for the 2022 Olympic and Paralympic Winter Games. Next, I would like to ask Mr. Li Sen to introduce the topic.

Li Sen:

Good morning, friends from the media. It is my great pleasure to introduce to you how China is delivering on its application promise of hosting a green Olympics. Here, I would also like to express my gratitude to our media friends for their attention and support to the preparations and sustainability of the Beijing Winter Olympics!

Now, everything is in place for the upcoming Beijing Winter Olympics. The venues and infrastructure have all met the requirements for hosting the competition, the venue-based operational model has been fully implemented, the service guarantees for the competition have been in place, and efforts of publicity have been boosted. In particular, a series of international test competitions have been successfully held, proving that the preparations are adequate. On Jan. 4, General Secretary Xi Jinping visited the Beijing competition zone to inspect the preparations, cordially encouraged the front-line personnel working at the venues, and gave important instructions for the preparation of the Olympics. His visit boosted our morale. As a result, we have strengthened our confidence and determination to hold the competition on schedule, safely, and successfully. We will go all out in the final stage according to the requirements of the general secretary to ensure a simple, safe and splendid 2022 Olympic and Paralympic Winter Games.

Sustainable development is China's national strategy and one of the three pillars of the Olympic Agenda 2020. Since preparing for the 2022 Winter Games, the BOCOG has stayed committed to hosting the Games in a green, sharing, open and clean manner. The BOCOG, the Beijing Municipal Government, the Hebei Provincial Government, and related parties have jointly formulated the Beijing 2022 Olympic and Paralympic Winter Games Sustainability Plan and proposed the vision of sustainability for the future and established the objective of creating a new example for staging events and regional sustainability. A working framework, including 12 actions, 37 tasks, and 119 specific measures, is constructed from three aspects: positive environmental impact, a new development for the region, and a better life for the people.

Over the past six years in preparing for the Games, we have worked hard to implement the green Olympics initiative in the whole process of preparations. We have closely integrated the preparations of the Games with the development of cities and regions, promoting the improvement of the regional ecological environment, economic development, and social progress and producing results of sustainability. I can summarize our work into the following five aspects:

First, we have established a sustainable management system. The preparation of the Winter Olympics is a complex project that requires standardized and systematic management. For the first time in the history of the Olympic Games, we have integrated three international standards. These are the sustainability management system for large-scale events, environmental management system, and social responsibility guidelines. In addition, we have established BOCOG's sustainable management system. As a result, we have effectively managed sustainable work in major venues and more than 50 work areas.

Second, we have created ecological competition zones. Given that the snow events will be mainly held in mountainous areas, measures have been taken to reduce the impact on the environment since we designed the venues. Before planning and designing, baseline surveys on the types and distribution of plants and environmental impact assessments were conducted. Protection measures were determined in terms of avoidance, mitigation, restoration, and compensation. The in-situ, near-situ, and ex-situ conservation measures have been taken for plants in the competition zones. We have employed multiple measures to reduce the impact on the animals in the competition zones, including setting up wildlife corridors, laying out artificial bird nests, and standardizing construction behaviors. At the same time, we have carried out ecological restoration. We have employed multiple ways to collect, store and recycle rainwater and snowmelt water to use water resources efficiently. The green mountains and clear waters of the competition zones have been protected through various measures. The goal of building venues surrounded by mountains and forests and hosting an ecological Winter Olympics has been realized.

Third, we have strictly implemented low-carbon management. We have made full use of the Beijing Olympic venues to reduce carbon emissions from the source. At the same time, we have built low-carbon stadiums, all of which have met the green building standards. Four ice stadiums have used new carbon dioxide refrigerants, making an ultra-low-energy project of more than 50,000 square meters. Low-carbon energy is fully utilized, and all the venues will be wholly powered by green energy. More than 80% of the vehicles during the Games will be energy-saving and clean energy vehicles to build a low-carbon transportation system. In addition, we have explored ways for carbon offsetting. The governments of Beijing and Hebei province contributed significant amounts of carbon sinks in the forestry industry. PetroChina, State Grid, and China Three Gorges Corporation sponsored carbon-neutral products for the Beijing Winter Olympics. With these efforts, we will make the Games carbon neutral.

Fourth, we have promoted urban and regional development. The six-year preparations for the Beijing Winter Olympics have witnessed Beijing and Zhangjiakou's rapid development. The preparations for the Winter Olympics have contributed to the development of the two places. The Beijing-Zhangjiakou high-speed railway and Beijing-Chongli Expressway were completed and went into services, the road network system was improved, and the transportation facilities were connected; the two places have coordinated in desertification control, water management, and gas management, and the regional environment has been significantly improved, realizing joint prevention and control of the regional environment; the construction of public facilities has been accelerated, and public services have been improved as a whole, realizing the joint development and sharing of public services. Several influential enterprises have settled in Yanqing and Zhangjiakou, and the development industries such as ice and snow and green energy have been accelerated and mutually reinforced. The Shougang Park in Beijing will become a "new landmark of urban revival," Yanqing will turn into a "most beautiful Winter Olympic City," and Zhangjiakou will be an "Asian ice and snow vacation destination." These three regions have become models of high-quality urban development promoted by the Winter Olympics.

Fifth, all preparations for the Games are aimed at benefiting the people. Raising people's living standards is an important part of sustainable development and also a natural result of the Winter Olympics. Over the past six years, seizing the development opportunities brought by the Games, Beijing and Zhangjiakou have accelerated the development of their infrastructure and facilities while fully improving public services. Industries related to winter sports have created more jobs for residents, made their lives easier and provided more development opportunities, thus improving people's sense of happiness and fulfillment. The promotion of winter sports has encouraged people to engage in sports and embrace a healthy lifestyle. Accessibility has been improved and a more inclusive society is quickly taking shape, helping people with disabilities to better integrate into society. Volunteer services are increasingly popular, which in turn contributes to a more civilized society.

Today, we would like to use this platform to release the Beijing 2022 Pre-Games Sustainability Report. The report summarizes our progress made on sustainability in preparation for the Games. The full text of the report is now available to download from the official website of Beijing's organizing committee. We hope you will check it out. The International Olympic Committee (IOC) and International Paralympic Committee (IPC) attached great importance and spoke highly of the report on sustainable development. President Thomas Bach and President Andrew Parsons have both sent congratulatory videos for the report.

That is the introduction. Thank you. 

Chen Wenjun:

Thank you, Mr. Li. Please watch the video by President Thomas Bach and President Andrew Parsons.

China.org.cn:

(Video playing)

Chen Wenjun:

We would like to thank President Thomas Bach and President Andrew Parsons for their heartwarming messages. Now the floor is open to questions. Please indicate the media organization you work for before raising a question. 

Asahi Shimbun:

After China won the bid to hold the Games, the number of people engaged in skiing began to rise, as did the number of ski resorts. To ensure the effective use of ski resorts, it is necessary to maintain the number of skiers. So after the Winter Paralympics, how will China continue to promote skiing? Thank you. 

Li Sen:

Thank you for your question. Promoting winter sports in China was one of the major goals for bidding and hosting the Winter Olympics and Winter Paralympics. Using the Games as a point of departure, China's winter sports have been growing rapidly in recent years. I'm not sure whether you have seen the latest statistics released by the General Administration of Sport of China, which show that 346 million people now participate in winter sports. By the end of 2020, China had built 654 standard ice rinks and 803 ski resorts of various kinds, both indoors and outdoors. The goal of "getting 300 million people involved in winter sports" has become a reality. Promoting winter sports is a long-term activity, not a short-term one. China has a huge population. Based on the population and development needs, the number of venues for winter sports is not that large. After the Games, such efforts will be strengthened and not be stopped. There will be ever greater achievements. Our most significant efforts are as follows:

First, policy guarantee. After we won the bid to host the Games, and since we started preparations for the Games, the policy environment for developing winter sports at the national and local level has been improving. There are a series of policies and measures. You may know that, at the national level, we released documents like the "Opinions on Vigorously Developing Winter Sports" and the "Opinions on Carrying out Healthy China Initiative," in which we outlined specific policies. At the local level, there are also some specific policies that a total of 26 provinces, autonomous regions and municipalities have now implemented. Take Beijing for example. The city released guidelines on promoting winter sports and seven supporting documents in terms of venue construction and popularization. Such policies will not come to an end after the Games. They are long-term policies and will be sustained well into the future. 

Second, cultivating young people. Young people are always the foundation and future of winter sports. Since we began preparations for the Games, with the joint efforts of education and sports authorities, we carried out activities that encourage millions of young people to participate in winter sports as well as the plan for winter sports on campus, which brings winter sports directly onto school campuses. This work is fundamental, as it integrates knowledge about winter sports into physical education curriculums. We formulated and implemented teaching plans for winter sports. Such measures will continue to be implemented at primary and middle schools. By 2020, we had 2,062 schools featuring winter sports and that number will reach 5,000 by 2025.

Third, venue and facility construction. Over the years, we have seen great progress in developing facilities across the country. After the Games, we will continue to promote the construction of venues and facilities, while also encouraging temporary facilities for winter sports in parks and urban squares, in line with local conditions. And we will also upgrade facilities and venues for winter sports, particularly the ski resorts that you have mentioned. We will improve the quality and service to meet people's varied needs for winter sports.

Fourth, winter sports activities. You may know that China has carried out a lot of winter sports activities in recent years, such as the National Public Ice and Snow Season and National Public Happy Ice and Snow Week. Many provinces and cities also have their own brand activities for winter sports, such as Beijing's "Happy Ice and Snow Season" and Zhangjiakou's public winter sports festivals. All these activities have become brand events for winter sports. These activities will not only continue after the Games but get even better.

Fifth, professional talent training. To meet the general public's needs for winter sports, local sports authorities are stepping up training for social sports instructors, or coaches for winter sports at the grassroots level. Beijing now has 23,000 instructors, while Zhangjiakou has more than 20,000. They have played an important part in promoting winter sports. After the Games, the number of such instructors will continue to grow, and they will provide more guidance in promoting winter sports.

All these measures will continue to promote the development of China's winter sports and meet the general public's needs for winter sports. Thank you.

CCTV:

In previous Olympics, there have been issues regarding post-Games use of the stadiums and venues and the use of unrenewable energy. What measures have been taken so that the 2022 Beijing Winter Olympics can tackle these issues? Thank you.

Li Sen:

Thank you for your good question. The utilization of venues after grand sporting events has been a difficulty across the globe. In this regard, we have been trying our best to deal with this problem throughout the process of bidding and preparation, and we will continue to do so after the Games are open. Six venues originally constructed for the 2008 Beijing Summer Olympic Games will be reused for the upcoming Winter Olympics. Based on the existing experience, we have made plans for using all newly-constructed venues after the Games. We have taken the post-Games use of venues into full consideration while planning and designing them. The costs can be reduced with coordinated planning and synchronized design. These arrangements can be summarized in the following aspects:

First, we will bid for and hold high-level sporting events at these venues and stadiums. The Beijing Winter Olympics will be held in world-class venues and stadiums. In preparing for the Games, the local sports authorities and the venue owners have established mechanisms to better communicate and cooperate with international winter sports organizations, which will enable us to continue to bid for and hold high-level international and domestic sporting events after the Winter Olympics, so as to boost stadium operations and promote the development of ice and snow sports.

Second, we will ensure that all those stadiums and venues are open to the public. They will not only hold competitive sporting events but also serve as places for the public to do physical activities. At the beginning of the planning and design of all the new Olympic stadiums and venues, we have given thorough consideration to their availability for the public after the Games. For example, the National Speed Skating Oval in Beijing, also known as the "Ice Ribbon," is an iconic venue with an ice surface of about 12,000 square meters. This is designed for the public's use in the future, as mainly the 400-meter outer track will be used in the long track speed skating. Moreover, its central part can be divided into two standard ice rinks and this is an innovation. The venue will allow 2,000 people to skate at any given time after the Games. Let's take another example, the National Bobsleigh and Tobogganing Center in Yanqing district, which hosts the world's 17th track for bobsleigh and tobogganing. These niche sports are relatively high-risk. So, we designed a special area in the lower region where the slope is gentler, making it possible for the public to experience this sport after the Games.

Third, we make efforts to ensure that the venues can be open year-round. Winter sports are sensitive to the seasons. Seasonality is not that obvious when it comes to ice sports, as most ice rinks are built indoors, and artificial ice is available all year round. In this regard, they can be open to the public or be used to hold grand sports events and leisure activities year-round. However, except in winter, it would be difficult to experience snow sports or hold such sports events in the snow sports venues in Yanqing and Zhangjiakou competition zones. Eyeing this, by taking advantages of their natural ecological conditions, we have made the venues that are located in the mountainous areas suitable for outdoor sports, such as jogging, cross country running, mountain biking, mountaineering and rock climbing. We have also stepped up efforts to boost the development of tourism, mountain resorts and the outdoor sports industry by making use of local cultural and historical advantages. Perhaps you've already been to the competition zone in Zhangjiakou. As a matter of fact, the Genting Snow Park there receives more visitors in spring, summer and autumn for leisure seeking than in winter for snow skiing.

Fourth, we make efforts to ensure the joint development of the venues and regions. The post-Games use of venues is not about the operation of a certain venue but to integrate its development with the development of local areas, which should be planned and materialized in an overall program. Take the Yanqing competition zone as an example, as the home of Winter Olympic venues, Beijing Expo Park and the Great Wall, it ramps up efforts to develop distinctive sports and cultural tourism, with developing integrated tourism as the main approach. Likewise, the Olympic venues in the Zhangjiakou competition zone are used in developing Zhangjiakou into a "Sports City" and a tourism destination in Asia for ice-and-snow tourism and resorts that receives visitors year-round and adopts an integrated approach in developing tourism. Moreover, we also step up efforts to promote synergies among the Olympic venues and winter sports resources in the three competition zones, and integrate them with the public ice and snow facilities and sports facilities, as well as the natural and cultural resources for tourism along the areas between Beijing and Zhangjiakou, so as to boost the development of the Beijing-Zhangjiakou sports and cultural tourism belt with the help of the Beijing-Zhangjiakou high-speed railway and the Beijing-Chongli Expressway, driving high-quality development of the surrounding areas. Such development synergies will thereby ensure that the Olympic venues will be used in a long-term, comprehensive and sustainable manner. Thank you.

TBS (Japan):

I have two questions. First, how much electric power is expected to be consumed during the Winter Olympics? Second, how much has been invested to make sure all energy consumed during the Winter Olympics are clean energy? Thank you.

Liu Yumin:

Thanks for your attention to the construction of the clean energy [system]. China has been contributing to building a community with a shared future for mankind and striving for sustainable development. We have made peak carbon emissions and carbon neutrality part of the overall development plans for an ecological civilization. We have followed the green Olympics ideas in the preparations. We utilize the host cities' advantages in terms of resources, and ensure power supplies for the Beijing Winter Olympics through the existing municipal power grids in the cities. In accordance with the national green power market trading rules, we have ensured that all venues are supplied with green power supported by the green power trading mechanism. By utilizing existing and previously planned power grids, we don't need to build new electric power facilities except for those transformer equipment and power distribution facilities which are necessary for the venues.

According to the calculations, all venues in Beijing, Yanqing and Zhangjiakou competition zones are expected to consume 400 million kWh of green electricity from June 2019 when the first green electricity transaction took place until the conclusion of the Paralympics. That will help save 128,000 tons of standard coal and reduce carbon dioxide emissions by 320,000 tons. 

Thank you.

Global Times:

Some Western media hype recently questioned if Beijing 2022 can meet green standards, alleging that it is hard to verify the green promises made for the Winter Games. What's your opinion on this? Thank you.

Yan Jiarong:

Thank you. As for the green standards you mentioned, I'd like to say that the Beijing Winter Olympics adheres to the standards set by the International Olympic Committee (IOC), as well as the sustainable standards set by the United Nations (UN). Beijing 2022 is the first Games that have implemented the Olympic Agenda 2020 throughout its bidding, preparing and hosting. It also plays an active role in meeting the UN Sustainable Development Goals. Upholding the principle to host a green Olympics, we strive to stage a sustainable Winter Games. There are many highlights in our efforts for Beijing's green Olympics, as Mr. Li Sen and Mr. Liu Yumin have just introduced. I'd like to add some more points. 

First, we have strengthened our strategic plans. Many foreign friends would say "you Chinese are good at long-term planning." The sustainability plan released by the organizing committee of Beijing 2022 and the IOC sets out a sustainable vision known as "Sustainability for the Future," and formulated 119 specific measures for positive environmental impact, new development for the region and better life for the people.

Second, we have adopted double-Olympic venues. As the other speakers said just now, we have made the best use of existing venues and facilities, which is another highlight in preparing for Beijing 2022. The National Stadium, dubbed the "Bird's Nest," will stage the opening and closing ceremonies of the Winter Games. The National Aquatics Center, known as the "Water Cube" during the 2008 Olympics, has become an "Ice Cube." The Wukesong Sports Center will be transformed for ice hockey events from a basketball stadium.

Third, we have implemented low-carbon emissions. Beijing 2022 has adopted multiple measures like low-carbon venues, low-carbon energy and low-carbon transportation to cut carbon emissions in preparing for and hosting the events, and achieve the ambitious goal of neutralizing all the carbon emissions generated during Beijing 2022.

Fourth, we have issued demonstrative standards. Beijing and Hebei province have jointly worked out the Evaluation Standards for Green Snow Venues as the green building standards for Winter Olympic snow venues, filling the gap at home and abroad. The sustainability management system of Beijing 2022 is unique to the Winter Olympics by integrating international standards including ISO20121, ISO4001 and ISO26000, making it the first of its kind in Olympic history to cover all the fields and scope in preparation for the Games. I believe it will set a good example for big events like the Olympics in the future. Thank you.

BRTV:

Reusing legacy venues from the Summer Olympics is a big characteristic of the Beijing 2022 Winter Olympics and Paralympics. Could you introduce how Beijing is making use of the venues from the Beijing 2008 Summer Olympics? Thank you.

Liu Yumin:

Thank you for your question. Beijing 2022 has made the most of the venue legacies from Beijing 2008. As Ms. Yan put it just now, the National Stadium, a venue for the opening and closing ceremonies of the Beijing 2008 Summer Olympics, will be reused to stage the opening and closing ceremonies of the 2022 Winter Olympics and Paralympics. The National Aquatics Center, also known as the "Water Cube," will become the "Ice Cube" for curling and wheelchair curling competitions. The National Indoor Stadium and the Wukesong Sports Center, two venues from Beijing 2008, will be reused for ice hockey competitions during the Winter Olympics. In addition to reusing these venues, we also have some legacy land from Beijing 2008. For example, we have transformed a temporary hockey field from the 2008 Games into a speed skating venue for the Winter Olympics. The lands for the Beijing Winter Olympic Village and the major media center were reserved in 2008. Moreover, regarding urban infrastructure, we have used a great deal of legacy infrastructure from Beijing 2008, including subway line 8 and line 10 as well as the corresponding power transformation and distribution facilities and water plants, to guarantee the Winter Olympics.

These reuses, especially the transformation of existing venues, are not a simple functional change. In fact, we still retained their original functions while injecting new functions for winter events. For example, the "Water Cube" can still be used as a swimming center after the Games, and the curling venue can be converted from ice to water in a few days. The reuse of venues, I think, is not a simple repetition, but rather to expand their functions, which is also a highlight of reusing the existing facilities. Thank you.

CAN:

I have two questions. There have been some concerns raised about large amounts of artificial snow being used for the Games and the impact this will have on water resources and energy as well. What is your response to this? My second question is also, given that there are many environmental initiatives are being tested at the Olympics, what steps are being taken to ensure these measures are not just short-term but to yield long-term results? Thank you.

Yan Jiarong:

Firstly, I'd like to answer your question about artificial snow in two aspects. The leader of Zhangjiakou will elaborate on the city's situation later. Regarding your second question about the environment and how to ensure the sustainable measures we adopted are a medium and long-term action instead of short-term efforts, I believe one of the directors general may give you a better answer.

As for the artificial snow, first of all, I would tell you that judging from the water consumption for the artificial snow, Yanqing and Chongli mountain area where the snow events for the Beijing Winter Olympics are mainly situated have abundant natural snowfall due to their unique climate conditions. In November 2021, there was large-scale snowfall in these two places that reached categorical blizzard levels, providing a prerequisite for cutting the amount of water used for artificial snow. In terms of actual water consumption, the water demand in the Yanqing competition zone during the Games accounts for 1.6 percent of the current total local water consumption, and 0.4 percent of local water resources. The water demand in the Zhangjiakou competition zone during the Games accounts for 9.8 percent of Chongli District's total water consumption and 2.8 percent of its water resources. Moreover, we have worked out measures to ensure water supply security, sewage treatment and water conversation so as to improve the carrying capacity of the competition zones' water resources and water environment. The ski fields also give priority to using collected and reserved natural rainfall and overland runoff as their water source for artificial snow. Our artificial snow system has adopted the world's most advanced efficient water-saving equipment and intelligent snowmaking system, which can maintain an optimal snowmaking efficiency subject to the dynamic external environment, to effectively avoid the waste of water resources. On the whole, artificial snow requires limited water and will not affect the local water security and ecological environment.

On the other hand, I want to point out that snowmaking is not entirely an emergency measure to cope with weather conditions. It is an objective requirement to ensure the quality of snow used in major international competitions. If we look at snow sports events around the world, snowmaking is adopted in almost all major international competitions to ensure the quality of snow. It is because compared with natural snow, the particle size, the water content, and the hardness of artificial snow can be changed. This way, it helps fit the needs of different competition venues and has more stable properties than natural snow. It is easier to make trails with consistent conditions after being compacted, smoothed and injected with water. Such courses can ensure fairer games to some extent.

Thank you.

Liu Haifeng:

Thank you for your attention to and care for snowmaking and water consumption in the Zhangjiakou competition zone. Let me add some words to it. Like Ms. Yan said just now, snowmaking is an important, fundamental work to ensure stable trails and fair competition conditions for athletes no matter in what order they will start. According to international practice, no matter what the weather is like in the host place, snowmaking is needed to make trails fit competition venues' technical specifications and requirements. According to searchable records, Lake Placid, Vancouver, Sochi, and Pyeongchang Winter Olympics used lots of artificial snow. Up to 90% of the snow used in the 2018 Pyeongchang Winter Olympics was artificial. Not long ago, we held the freestyle skiing and snowboard cross events of the 2021/22 FIS World Cup in Zhangjiakou, and up to 60% of the snow used in the trails in the Genting Snow Park was artificial. In a review after the events, the quality of the courses during the events was extensively recognized and praised by athletes from all countries.

To ensure snow services during the Beijing Winter Olympics, the Zhangjiakou competition zone has taken multiple precautionary measures and started preparing for snowmaking early. By collecting surface runoff and snowmelt, we have made advancements in water usage for snowmaking and eco-environment protection. Our efforts have been mainly embodied in three aspects: water conservation, water storage, and water-saving. In terms of water conservation, we have advanced eco-environment development in preparation for the Winter Olympics, with significant efforts in vigorous afforestation. As a result, the forest coverage of Chongli district has increased from 52.38% when the preparation started in 2015 to 71.53% today. The rate is already as high as 81.02% in the core area of the competition zone. Therefore, it can be said that our efforts have effectively conserved water. In terms of water storage, because of the excellent eco-environment and rich surface runoff in the Zhangjiakou competition zone, we have built 11 open reservoirs, underground snowmelt pools, and little landscape lakes among venues in the Genting Snow Park and Guyanshu venue clusters, totaling 530,000 cubic meters of water storage. These measures provide vital support in supplying water to make snow.

In terms of water saving, the two-venue clusters have adopted efficient, intelligent, and water-saving snowmaking systems and equipment that can dynamically maintain the most appropriate efficiency along with the changes of external environment. With this equipment, facilities, and smart system, we can save approximately 20% water. The reality has proven that all these measures have worked well and can fully meet the water needs for the snowmaking of all the Winter Olympic venues. Thank you.

Li Sen:

Your second question is how green technologies in staging Olympic events have been made more sustainable in practice. Green and environmentally friendly technologies have been widely used in the Winter Olympics, and there are many highlights in this respect. The previous speakers have briefed on it just now from various aspects, including the building of low-carbon venues, the adoption of carbon dioxide refrigeration technology in four ice rinks, and the construction of over-50,000-square-meter projects with ultra-low energy consumption—all these set good examples for developing low-carbon buildings to some extent.

We have realized the low-carbon energy supply. In other words, we have established the pilot demonstration project of Zhangbei renewable energy flexible DC power grid, which has ensured the integrated delivery of clean energy to the outside and ensured that the regular electricity demand of all the Winter Olympic venues is met by renewable energy. We have developed a low-carbon transportation system, which will ensure the use of clean energy vehicles during the games. In terms of competition zone protection, Ms. Yan mentioned the standards just now. All these are highlights of our innovative measures in terms of Winter Olympic technology, which will make immediate contributions to our urban and regional development and people's lives in the future, and has long-term benefits and promotional value. Some existing technologies that can be directly used for urban development, the Zhangbei flexible DC power grid, for example, will transmit renewable power resources to Beijing and its Yanqing district, and as a result, increase the proportion of renewable power resources used in Beijing and help China reduce carbon emissions and achieve peak carbon emissions and carbon neutrality. We use many clean energy vehicles, such as hydrogen and electric ones. These have boosted the development of relevant industries and will continue to be promoted and used after the games in our cities. Another point is the commercialization of scientific and technological achievements. We have many significant scientific and technological gains in our preparations for the Winter Olympics, especially in the construction of venues. For example, there are many innovative outcomes in green building, which will be applied to other venues and infrastructure in the future. Carbon dioxide refrigeration technology is one of them. It can be used in venues for ice sports and some large refrigeration facilities in the future in a safe, stable, reliable, and energy-efficient way.

We set long-term standards because there were no green building standards for snow sports venues before, be it in China or abroad. Therefore, to build more environmentally friendly and more sustainable venues for snow sports, Beijing, Hebei, and Tianjin have brought together their planning and construction and other relevant authorities to establish the standards for evaluating green snow sports venues. As a result, the standards have become a local yardstick in these three localities and will serve as a regulative guide for the future construction of snow sports venues. As for the sustainability management system for major events mentioned by Ms. Yan just now, we have worked with relevant departments in Beijing to transform it into a guide for assessing the sustainability of major events. Turned into a local guiding criterion, it will offer a regulative guide to hosting major events and competitions.

Thank you.

Beijing Youth Daily:

My question is about urban and regional development. Since China won the bid to host the 2022 Winter Olympic Games in 2015, many villages around the competition zones, such as Yanqing district in Beijing and Chongli district in Zhangjiakou, have boomed thanks to the Winter Olympics. With the construction of significant infrastructure, hotels, and venues, many changes have been made in these villages as well as to the life of their inhabitants. Are these changes sustainable? How can you demonstrate this? Thank you.

Yu Bo:

Thank you for your question and your concern about the work of the Yanqing competition zone. The Winter Olympic Games have indeed brought great changes to and played a driving role in the development of the surrounding areas, promoting Yanqing to speed up the construction of the most beautiful Winter Olympic City. In terms of achievements, Yanqing has made notable progress in the construction of infrastructure. The Beijing-Chongli Expressway and Yanqing branch line of the Beijing-Zhangjiakou high-speed railway have been completed and opened to traffic. Yanqing has completely broken transport bottlenecks through three expressways and a high-speed railway. Meanwhile, the energy structure of Yanqing district has also undergone profound changes through leapfrogging development of power infrastructure and the construction of its first gas pipeline. Notable progress has been made in industrial development. Yanqing has built world-class Olympic venues and pooled abundant ice and snow resources. Yanqing also has built many international brand hotels, with 18 star-rated hotels and nearly 12,000 beds. Meanwhile, Yanqing has created a homestay brand named "Yanqing Household" with more than 500 courtyard homestays and more than 1,000 star-ranked homestays managed in an orderly manner. The ice-snow tourism industry has grown significantly. Houheilongmiao Village, in the surrounding area of Yanqing district, has grown from a typical low-income village into a national key village for rural tourism. Employment has boomed, and income has increased significantly. We have provided training programs for 100,000 people, helping over 7,000 people find better quality jobs in the local area. We set up the Haituo Farmer Ski Team, with most of its members coming from Zhangshanying village near the competition zone. It now has nearly 100 farmer-turned ski members, of which more than 30 have obtained qualification certificates recognized by professional organizations and become professional ski coaches, referees, and athletes. This enabled local farmers to truly take ice and snow sports as a career, making a good start for local employment and income increases.

In terms of sustainable development, we have formulated the implementation plan and task list of post-competition utilization and industrial development with a high starting point and high standard, and all works have been conducted in an orderly manner. The Yanqing Olympic Zone has been officially approved by the International Olympic Committee (IOC) and will open to the general public in May 2022. The Yanqing Haituo Mountain area has been selected as one of the first national ski vacation destinations. We will continue to speed up the construction of the most beautiful Winter Olympics City, ensure development dividends brought by the Winter Olympics will benefit the people of Yanqing, and make efforts to build Yanqing into a paragon in Winter Olympics heritage utilization. Thank you.

Liu Haifeng:

Thank you for your question. Let me introduce the details of Zhangjiakou city. As you have mentioned, the Winter Olympics has brought about earth-shaking changes to the lives and work of the local people. This is mainly manifested in the following three aspects:

In terms of the living environment, the ecological environment has continued to improve. The Beijing-Zhangjiakou high-speed railway and the Beijing-Chongli Expressway have opened to traffic. Municipal facilities and the appearance of urban and rural areas have also been comprehensively upgraded. Chongli has witnessed tremendous changes and greatly enhanced people's sense of gain.

In terms of living standards, according to incomplete statistics, one out of every five people in Chongli is currently engaged in ice and snow-related work, and more than 30,000 people are participating in the ice and snow and tourism industry directly or indirectly, ensuring that people get a stable job and has greatly improved their quality of life.  

On a spiritual level, Chongli, as a city of the Winter Olympics, has become more and more closely connected with the international community, enabling people to have a stronger sense of pride and honor. It has created a positive atmosphere in which people participate spontaneously in building their beautiful hometown and actively serving the Winter Olympics. To make the dividends of the Winter Olympics benefit more people in a sustainable way is also the goal and direction of our work. In the next step, we will fully utilize the resources of the Winter Olympics.

First, we will take the initiative to plan the use of the venues after the Winter Olympics. The Zhangjiakou municipal government has identified 2022 as the year to promote the Olympic economy. We will implement a number of iconic, leading, and influential conventions, exhibitions, and forums with the aim of building Chongli into an international ice and snow tourism destination and high-end convention and exhibition center. At present, the "three venues and one Olympic Village" have signed cooperation agreements with relevant enterprises. We will hold more than 30 sports events and exhibitions throughout the year. Taizicheng Ice and Snow Town has also reached a cooperation intention on convention and exhibition with the relevant institutions in Beijing. We will hold high-level forums such as the "Arc of Ice and Snow" Chongli Summit this year. We will strive to turn the Olympic effects into economic benefits by vigorously developing new forms of business such as sports events, exhibitions, and forums. 

Second, we will vigorously enhance the role of snow and ice sports. We will continue to give full play to the leading role of the Winter Olympics cities. While making full preparations for various events, including the fourth Ice and Snow Games in Zhangjiakou, we will introduce a number of high-level domestic events to gather resources and popularity. We will further improve the development system of snow and ice sports, promote the popularization of snow and ice sports, and ensure that more than 2 million people participate in snow and ice sports during the whole snow season.  

Third, we will actively cultivate new business forms, which can increase people's income. We will adhere to integrated development guided by sports, empowered by culture, and driven by tourism. We will create a number of representative and influential tourism routes for the purposes of sports and leisure, study and team building, and health and wellness, promoting the integrated development of sports, culture, and tourism industries. This year, we will focus on improving leisure consumption infrastructure. We will actively introduce a number of chain stores and specialty restaurants, vigorously promote Olympic licensed products and Chongli's menu of Winter Olympics delicacies, and promote new forms of rural tourism such as characteristic homestays and specialty restaurants. We will strive to ensure that people have more stable jobs, increase income and become richer. Thank you.

Beijing Daily:

All venues will be powered by green electricity during the 2022 Winter Olympics, the first time in Olympic history. Where does the green electricity come from? How to ensure the safety and stability of green electricity? What technological breakthroughs have been made, and what is the current state of power operations? Thank you.  

Liu Yumin:

Thank you for your interest in green power. Green power is also known as green electricity, which refers to electricity converted from renewable energy by means of wind, hydropower and solar photovoltaic. During Beijing 2022, all venues will be powered by green electricity. The realization of green electricity is largely thanks to three aspects:

First, in terms of clean energy distribution, the green power supply for the Beijing Winter Olympics benefit from the coordinated development of the Beijing-Tianjin-Hebei region. Among the three competition zones, Zhangjiakou and Yanqing have abundant clean energy reserves. When visiting, you can see that there are many big windmills around the Guanting Reservoir in Yanqing, as well as in Zhangjiakou. These are wind power generation facilities that were built more than 10 years ago. In 2008, the Guanting Reservoir wind farm achieved a wind power generation breakthrough in Beijing for the first time. According to our calculations and estimates, Zhangjiakou's exploitable wind energy reserves exceed 40 million kilowatts and the exploitable solar energy resources reach 30 million kilowatts. In addition, the annual output of biomass resources is more than 2 million metric tons. So the reserves of renewable energy are very sufficient, which guarantees the supply of green electricity for the Winter Olympic venues.

Second, regarding the infrastructure integration, Mr. Li Sen just mentioned that the 500 kV flexible DC power grid in the Beijing-Tianjin-Hebei region has adopted many new, world-class technologies, as well as pioneered various other technologies. The DC grid network boasts the highest voltage level and the largest transmission capacity in the world. Through this power grid, we can transmit the green power from Zhangbei county to every venue across the three competition zones with minimal loss.

Third, during the operational processes, we have also achieved a complementary and coordinated system based on multiple energy sources. The surplus electric energy on the DC grid will be transported to the Fengning Pumped Storage Power Station constructed by the State Grid, one of its existing power facilities. When the demand for electricity becomes high, Fengning Pumped Storage Power Station will send the stored electricity to the grid, which is akin to backing up a large "power bank" for the entire network. Through energy complementation and coordination work, the power security of the Winter Olympic venues is guaranteed. Thank you.

Cover News:

The Yanqing competition zone has a special environment and is ecologically sensitive. As such, balancing the relationship between the construction of venues and the natural ecology poses a challenge for sustainable development. How can the Yanqing competition zone protect its ecology while undergoing construction? Likewise, ecological restoration work has been going on in the Yanqing competition zone. What is its current progress? Thank you.

Yu Bo:

You raised a very good question, and this is also a problem that we've been working to solve. The highest elevation within the core area of the Yanqing competition zone for the Winter Olympics is 2,198 meters above sea level while the lowest elevation is more than 300 meters. In the early stage of construction, the core area of the Yanqing competition zone was a mountainous area with no roads, no water, no electricity and no communication facilities. Transportation relied entirely on manpower, mules and horses. It was the most difficult to build among the three major zones of the Beijing Winter Olympics. In order to ensure sustainable development, the Yanqing competition zone has always adhered to the concept of "green Olympics," and the concept that lucid waters and lush mountains are invaluable assets throughout the entire process of venue construction. Ecological protection and the construction of the Winter Olympic projects have moved forward together. The construction took six years, however, the core design concept of "venues built among mountains and forest for an ecological Winter Olympics" became a reality from that blueprint.

First, we have completed the ecological restoration of the competition zone with a high standard. We hired an advisory group including 18 experts and professors from Tsinghua University and Beijing Forestry University, which is headed by Qian Yi, an academician at the Chinese Academy of Engineering. The group is divided into three panels: one for vegetation and landscape restoration, one for geological disasters and soil and water conservation, and another for hydrology and water environment. They conducted a baseline survey on flora and fauna resources in the competition zone as well as the 2,000-hectare surrounding area, and supervised and guided the ensuing ecological restoration work in the Yanqing competition zone. At present, the ecological restoration of the 2.16 million square meters of the Yanqing competition zone has been completed. The native trees have settled in their original place, the pristine subalpine meadows have returned, the wildlife corridors have been effectively established and the ecological environment of the competition zone has been wholly restored.

Second, animals and plants are well protected. In terms of plant protection, the venue construction adheres to the principle of "avoidance." We tried our best to protect and preserve the existing native trees on the site, and make way for natural secondary forests in the design of ropeways; in the case that the construction couldn't avoid the native plants, we resorted to near-situ and ex-situ conservation measures. In the competition zone, a total of five in-situ conservation areas were built, and 313 trees were preserved; two near-situ conservation areas were built, and 11,000 shrubs and grasses were transplanted there; an ex-situ conservation base of 300 mu and the Winter Olympic Forest Park covering an area of 480 mu were built, with 24,000 trees transplanted there. The survival rate of the transplanted trees is 90.7%. At the same time, we carried out topsoil stripping across 81,000 cubic meters. After construction was completed, the sites were covered by the original soil and the original appearance has been restored, so as to preserve the seed bank to the greatest extent and reduce the risk of biological invasion. In terms of animal protection, during the construction process, we established or left open wildlife corridors, reduced nighttime construction, installed artificial nests, and restored and rebuilt animal habitats. If we found newborn or injured wild animals, we took care of them in a timely manner. Since 2019, wild animals such as boars, badgers and gorals have been spotted many times around the competition zone, and in 2021, infrared cameras captured more than 14,000 valid photos and videos, monitoring and spotting 11 species of mammals – an increase of one species from 2019 – and 18 species of birds – an increase of six species from 2019. At present, there are 452 species of terrestrial wild animals from 95 families of 30 orders, which are distributed throughout Yanqing district, including 392 species of birds, 38 species of mammals, and 22 species of amphibians and reptiles. The ecological environment continues to improve, becoming the home of various wild animals and plants.

Third, we have promoted green and low-carbon recycling. All venues in the competition zone meet the three-star standard for green buildings. We promoted low-carbon management. For the first time in the history of the Olympic Games, all venues will be powered by green electricity. We promoted green transportation for the venues and more than 200 hydrogen energy buses have been delivered for use and will be put in the transportation service during the Games. We promoted the recycling of water resources so that reclaimed water that meets the standards after treatment can be used for road watering, green irrigation, toilet flushing, etc., which significantly improves the efficiency of water resource use. The Yanqing competition zone fully embodies the concept of "green Winter Olympics" and "low-carbon Winter Olympics."

Thank you.

China Arab TV:

Beijing has implemented environmentally-friendly technologies in transportation, electricity supply, and water and waste management to ensure a green Olympic Games, all of which set a big example for foreign countries to follow. What are the major challenges facing all of these preparations? Thank you.

Li Sen:

Thank you for your question. As you've mentioned, the "Green Olympics" is one of the four concepts that we are following to host the Winter Games. We have adopted many related technologies in terms of transportation, electricity supply, and water and waste management. My colleagues also spoke about this topic just now.

For example, we have managed to achieve low-carbon transportation. Beijing's competition zone is situated in the plains region, and vehicles there are either fully electric or powered by natural gas. Meanwhile, those in the Yanqing and Zhangjiakou competition zones are mainly powered by hydrogen fuel to meet the transport conditions of mountainous regions. Almost all passenger cars and nearly 80% of all vehicles are energy efficient or powered by clean energy. In terms of electricity supply, Mr. Liu made a detailed introduction just now. We managed to realize a 100% renewable electricity supply by transmitting renewable energy to the competition zones in Yanqing, and other competition zones in Beijing. This has also improved the local region's capacity for utilizing renewable energy.

In terms of water, we use surface water for snowmaking in Yanqing and Zhangjiakou competition zones, and the water is collected by harvesting rain and melting snow. Both of these competition zones are equipped with high-standard domestic sewage treatment facilities which will comprehensively collect and process sewage, then it can be reused.

As for waste management, following the principle of reducing waste at the source, recycling waste into resources and managing waste in a unified way, we have implemented unified management measures and garbage sorting. In fact, the management of waste is based on different stages. For example, for waste issues that occurred during the construction process, some of the rocks in the mountainous area in Yanqing could be directly used to make gabion walls and pave roads. Likewise, several once-deserted pile heads produced during the construction of the National Speed Skating Oval were reused as raw materials to build the stands of the Oval. As for recycling waste during the Games, we will follow the unified standard for waste management and strictly enforce garbage sorting. The collection, transportation, sorting and processing of waste will be conducted in a standardized manner.

All these eco-friendly measures for Beijing 2022 not only meet the requirements of hosting a "Green Olympics" and ensure a high-standard Games but also play a proactive role in future developments, including the development of cities and industries as well as people's wellbeing.

Today marks the 22-day countdown to Beijing 2022, and all preparation work is put in place. Regarding your question about the challenges, we believe that we have the capacity to host the Games as planned. We launched a domestic test series of snow and ice sports last February and April respectively and hosted a total of 10 test events for global athletes from last October to December. These test events are a testament to our eco-friendly measures including green energy vehicles, renewable electricity supply, water recycling and waste management, and prove that our technologies are very stable and reliable and meet the standards of hosting the competition. Thank you.

Chen Wenjun:

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

Southern Metropolis Daily:

We've learned that Beijing adhered to the principles of low-carbon and energy-efficient in constructing the Winter Olympic Village, and all the residential buildings have been certificated as three-stars green buildings. How were these buildings created? Were their construction costs high? Will the technologies be applied to other public facilities? Thank you.

Liu Yumin:

Thank you for your questions. A green building is a building that saves resources, protects the environment, and reduces pollution during its whole life cycle while providing people with healthy, suitable, and efficient space to realize the harmonious co-existence between man and nature to the most significant extent. A green building has characteristics of safety and durability, health and comfort, convenience, resource conservation and livability. Therefore, it is an essential measure for peak carbon and carbon neutrality in the construction industry.

In China, three stars are awarded to the highest-rated green buildings. China attaches great importance to developing green buildings and vigorously promotes green building practices. As with many other countries, China has included green building requirements into the general requirements for urban construction. Though standards differ among countries, the construction costs of the green buildings in the Winter Olympic Village all fall within a reasonable range. Therefore, the buildings are economical and meet the requirements for sustainable development.

We coordinated the construction of venues for Beijing 2022 throughout all procedures, including site selection, design and material selection, to fulfill the criteria of being both economical and effective. As a result, as Mr. Li Sen mentioned, all the newly-built indoor venues for the Games have met China's standards of three-stars green buildings.

Whether in China or other countries, most green building standards are formulated for indoor buildings. However, many Winter Olympic venues are outdoor buildings, including those constructed on snow. Therefore, we organized experts to develop a green building standard for sports venues on snow in Beijing, Tianjin, and Hebei province in the early construction process. Up to now, all the venues have met the standard. This regional standard has promoted the construction of green buildings for the Games and contributed to the development of the Winter Olympics in China and relevant international standards. It will also become a legacy of the Beijing Winter Olympics.

The Winter Olympic Village in Beijing has adopted many new green technologies. For example, the main residential building in the village adopts a prefabricated steel structure. This aseismic structure is light, environmentally friendly, and quick to build. It is also easy to control its quality.

A polyclinic needs to be set up inside the village according to the requirements. Therefore, this medical facility adopts a building envelope with greater thermal insulation and airtightness as a demonstration project of ultra-low energy-consuming buildings. In addition, highly efficient fresh air heat recovery technology helps minimize the need for heating and cooling the building while making good use of renewable energy.

The sound insulation and air quality of the interior spaces such as bedrooms and living rooms have been optimized to create a healthy and comfortable environment.

The roof of the building can host various outdoor activities. It helps improve the microclimate and offers the "Fifth Façade" for the urban environment. At the same time, solar panels installed on the roof can supply more than 70% of residential hot water.

We pay special attention to controlling carbon emissions during the construction and operation of the venues. We selected low-carbon materials and equipment through Building Information Modeling (BIM) analytics. With the help of an energy consumption monitoring platform, we coordinated carbon emission information across the village.

It is fair to say that the Winter Olympic Village has become a model living environment project, which is green, healthy, livable, intelligent, and sustainable. It can provide a healthy and comfortable living environment for athletes from all over the world and set an example for the development of the construction industry. The above-mentioned green building requirements have become part of the general requirements of China's construction industry. The technologies I mentioned just now will continue to be used in urban construction. As technologies mature and upgrade, I believe green buildings will play a bigger role in improving venues and urban construction.

Thank you.

Chen Wenjun:

Thank you to friends from the media and all our speakers. Today's press conference is with this concluded.

Translated and edited by Cui Can, Chen Xia, Gong Yingchun, Liu Sitong, Dong Qingpei, Zhang Junmian, Zhang Rui, Huang Shan, Zhu Bochen, Wang Yanfang, Zhang Liying, Li Huiru, Wang Qian, Wang Yiming, Yuan Fang, Duan Yaying, Yang Xi, Zhang Jiaqi, David Ball, Jay Birbeck, Tom Arnstein and Drew Pittock. 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:

Hu Wenhui, deputy commissioner and spokesperson of the China National Intellectual Property Administration (CNIPA), and director general of the CNIPA's General Affairs Office

Ge Shu, director general of the Strategic Planning Department of the CNIPA

Zhang Zhicheng, director general of the Intellectual Property Protection Department of the CNIPA

Lei Xiaoyun, director general of the Intellectual Property Utilization and Promotion Department of the CNIPA

Chairperson:

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

Date:

Jan. 12, 2022

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will brief you on statistics concerning intellectual property and take your questions. At this press conference, we are joined by Mr. Hu Wenhui, deputy commissioner and spokesperson of the China National Intellectual Property Administration (CNIPA), and director general of the CNIPA's General Affairs Office; Mr. Ge Shu, director general of the CNIPA's Strategic Planning Department; Mr. Zhang Zhicheng, director general of the CNIPA's Intellectual Property Protection Department; and Ms. Lei Xiaoyun, director general of the CNIPA's Intellectual Property Utilization and Promotion Department.

Now, let's give the floor to Mr. Hu for a brief introduction.

Hu Wenhui:

Friends from the media, good morning. Thank you for your consistent attention and support for the work concerning intellectual property.

In 2021, all government bodies and departments involved in intellectual property work across China followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles of the 19th National Congress of the Communist Party of China (CPC) and all plenary sessions of the 19th CPC Central Committee, and earnestly carried out the CPC Central Committee and the State Council's decisions on building China's strength in intellectual property as well as the 14th Five-Year Plan. We strive to pursue progress while ensuring stability and continue advancing reform and innovation. As a result, China's intellectual property work in 2021 has improved in terms of both quality and quantity, and all tasks and targets in the sector have been fully accomplished, providing strong support for people's pursuit of a better life. Based on all categories of statistics, our work in 2021 has the following four characteristics:

First, the innovation capacity and vitality of market entities have been further stimulated. As of the end of 2021, the number of domestic enterprises with valid invention patents amounted to 298,000, an increase of 52,000 over the previous year. These domestic enterprises had a total of 1.91 million valid invention patents, up 22.6% year on year, 5 percentage points higher than the national average growth rate. Specifically, valid invention patents held by high-tech enterprises reached 1.21 million, accounting for 63.6% of the total held by domestic firms. This reflects the growing creativity and innovation capacity of China's market entities.

Second, the pledge financing of patents and trademarks has seen a further increase in scale and become even more inclusive. The total amount of patent and trademark pledge financing in 2021 amounted to 309.8 billion yuan, and the number of financing projects in the field reached 17,000, benefitting a total of 15,000 enterprises. All three factors have increased about 42% year on year. Specifically, inclusive loans under the 10-million-yuan limit have benefitted 11,000 enterprises, accounting for 71.8% of the total firms benefitted. This fully demonstrates the inclusiveness of patent and trademark pledge financing in helping micro-, small- and medium-sized enterprises. 

Third, patent reserve in digital economy and medical sector has been further improved. Among the 35 fields of technology classified by the World Intellectual Property Organization (WIPO), IT methods for management, computer technology and medical technology rank as the top three fields in China with the fastest growth rate of the number of valid patents, up 100.3%, 32.7% and 28.7%, respectively, year on year. This shows China's growing capacity in patent reserve of core technologies, which will provide stronger support for the country's industrial upgrading and better benefit people's health and daily life.

Fourth, foreign enterprises have stronger confidence in China's protection of intellectual property. In 2021, a total of 110,000 invention patents were approved and authorized for overseas applicants in China, up 23% year on year. Overseas applicants registered a total 194,000 trademarks in China, up 5.2% year on year. Among them, authorized invention patents and registered trademarks applied for by U.S. enterprises increased by 32.1% and 17.3%, respectively. The number of intellectual properties held by overseas applicants in China keeps growing fast, indicating overseas enterprises' strong confidence in China's intellectual property protection and business environment.

These are the four characteristics of data on intellectual property in 2021. Specifically, the overall statistics on the creation, protection, utilization and relevant services of intellectual property in the aspects of patents, trademarks, geographical indications, and layout designs of integrated circuits by the end of 2021 are as follows:

First, patent. The number of valid invention patents from China reached 3.597 million, while the number on the Chinese mainland stood at 2.704 million. The number of high-value invention patents per 10,000 people reached 7.5, up by 1.2 from the previous year.

In 2021, the number of international patent applications filed in China via the Patent Cooperation Treaty (PCT) hit 73,000, while the number on the Chinese mainland reached 68,000. A total of 54,000 patent reexamination cases and 7,100 declarations of invalidation cases were closed. 

Second, trademark. The number of valid registered trademarks reached 37.24 million.

In 2021, China received 5,928 international trademark applications using the Madrid System. China has reviewed 164,000 trademark opposition cases, as well as 383,000 trademark review cases. 

Third, geographical indication (GI). China has approved 2,490 GI products and has seen 6,562 GIs registered as collective trademarks and certification trademarks. 

Fourth, integrated circuit layout design. A total of 52,000 integrated circuit layout designs were certificated.

Fifth, intellectual property application, protection and services. To date, China has established 57 intellectual property protection centers and 30 fast intellectual property service centers. The National Advisory Center for Overseas Intellectual Property Dispute Settlement has been established, with a total of 22 branch centers at the local level. 

In 2021, a total of four batches of 815,000 abnormal patent applications were identified. The withdrawal rate of the first three batches reached 97%. China has cracked down on 482,000 filings of malicious trademark registration.

Statistics show that, before excluding the price factor, the added-value of China's patent-intensive industries reached 12.13 trillion yuan in 2020, a year-on-year increase of 5.8%, accounting for 11.97% of GDP, 0.35 percentage points higher than last year.

By the end of 2021, the "one window" system for patent and trademark business was made available in all 31 provinces (autonomous regions and municipalities). The number of intellectual property information public service institutions at the provincial level reached 52, and that of city-level comprehensive intellectual property information public service institutions reached 104.

That is all for my introduction. We would now like to answer your questions. Thanks. 

Xing Huina:

Thank you, Mr. Hu, for your introduction. Now it is time for questions. Please indicate the media organization you work for before raising a question. 

CCTV:

In recent years, China has strengthened its work on patent and trademark pledge financing to support small- and medium-sized enterprises (SMEs). SMEs represent the "capillaries" of the national economy, and they have been under tremendous pressure amid the COVID-19 pandemic. We would like to know, over the past year, what work has the CNIPA done to support SMEs? Thanks.

Hu Wenhui:

Thank you, I will answer your question. To support SMEs and mitigate their difficulties, CNIPA has worked with related departments to issue, promote and implement a series of policies and measures, which provide strong support for the innovative development of SMEs in terms of cultivating entities, financing, transfer and application and improving services. These works are as follows:

First, we have expanded the intellectual property pledge financing work to mitigate the difficulties SMEs have faced in accessing financing. CNIPA, the China Banking and Insurance Regulatory Commission, and the National Development and Reform Commission launched the three-year campaign entitled, "Intellectual Property Pledge Financing to Benefit Enterprises in Industrial Parks," promoting intellectual property pledge financing services to benefit more SMEs, with an aim to cover "100 industrial parks and 10,000 enterprises." As I just mentioned, in 2021, China's patent and trademark pledge financing reached 309.8 billion yuan. Inclusive loans worth less than 10 million yuan have been issued to 11,000 enterprises, accounting for 71.8% of the total enterprises benefiting from the policies.

Second, we jointly launched a patent transfer plan to support patent technology transfers for SMEs. We worked with the Ministry of Finance to organize and implement a three-year special plan for patent transfers, in a bid to promote innovations from universities and institutions to transfer and utilize in SMEs. So far, a total of 30 provinces have launched the special plan to further promote the policies and measures that benefit more SMEs, among which eight provinces have received the first batch of subsidies and rewards.

Third, we have stepped up efforts to foster SMEs and increase their capacity for intellectual property management. We have encouraged SMEs to implement the national standard of enterprises intellectual property management and further optimize intellectual property management systems. We have scaled up our efforts to foster demonstration enterprises with advantages in intellectual property among SMEs. Among the total 5,729 national demonstration enterprises, the number of SMEs accounted for more than 76%. The research and development investment, the average number of in-force patents, and other indicators of those SMEs are higher than the national average. 

Fourth, we have enhanced intellectual property service to support the innovative development of SMEs. We have guided the construction of patent navigation service bases and promoted applying a series of national standards like the Patent Navigation Guidelines. We have pushed forward the establishment of the decision-making mechanism in patent navigation, thus effectively serving the innovative development of SMEs. By establishing trademarks and brands guidance stations, we have provided SMEs with convenient and high-quality guidance and services on trademarks and brands. Meanwhile, we have launched a campaign to "provide intellectual property services in a tour of ten thousand miles." With the critical tasks of attracting employment and entrepreneurship to the intellectual property service industry, supporting rural vitalization with geographical indications, and benefiting and helping enterprises, we have guided and supported nearly 10,000 local online and on-site activities, benefiting more than 15,000 market entities, mainly SMEs. In addition, we have sped up the building of the comprehensive intellectual property service window, providing all intellectual property services through the window. 

Going forward, we will continue to implement the decisions and arrangements of the CPC Central Committee and the State Council, launch the SMEs intellectual property strategic promotion project, and take multiple measures to bolster the innovative development of SMEs. Thank you. 

Tianmu News:

The quality of patent applications has drawn much attention. Mr. Hu just mentioned the statistics of combating irregular patent applications. What has been done in this regard? What about the achievements and plans?

Hu Wenhui：

Thank you for your question about cracking down on irregular patent applications. Let us invite Mr. Zhang to answer this question. 

Zhang Zhicheng:

Thank you for your question. To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, and take concrete actions to turn China from a country relying on imported intellectual property into one with solid innovative ability, and from quantity-orientation into quality-orientation, the CNIPA has continued to carry out patent quality promotion projects in recent years. It has scored outstanding achievements in firmly taking actions against irregular patent applications with no intent to protect innovation. In general, we have delivered in the four following aspects. 

First, we have actively instructed local governments to improve intellectual property policies and promote high-quality development by canceling subsidies and rewards for applying. 

Second, we have strengthened examination efforts at an early phase. Through combined manners of computer-assisted screening and manual checking, we have strictly examined and prudently confirmed cases suspected as irregular patent applications. 

Third, we promptly notified local authorities of the patent applications confirmed as irregular and requested local intellectual property management authorities to inspect the applications, and the applicants to withdraw them. We also protect the legitimate rights and interests of applicants in accordance with laws during the process. 

Fourth, we have intensified positive publicity and guidance to foster a sound environment for high-quality development, instructed applicants to apply for patents correctly and promoted quality.

As Mr. Hu just said, the CNIPA has organized a special campaign to crack down on irregular patent applications last year and notified local governments across China about a total of 815,000 irregular patent applications in four batches. By the end of last year, 97% of the notified irregular patent applications of the first three batches were withdrawn. Meanwhile, the CNIPA has intensified regulation in the patent agent industry. In the "Blue Sky" special campaign, we have heavily punished nine agent institutions dealing with irregular patent applications by qualifications revocation and agency suspension. As for 84 agencies whose cases per agent consistently exceeded five times the average level, we have organized intellectual property management departments in relevant provinces to conduct critical inspections. We have urged the local governments to impose an administrative penalty on 29 institutions with severe cases. 

Last week, the national meeting attended by heads of the country's intellectual property departments was held. In accordance with the deployment of the meeting, we will continue to crack down on abnormal patent applications. Next, we will continue working with local intellectual property management departments to improve the standardized working mechanism for cracking down on abnormal patent applications, promote the synergy between upper and lower levels of collaborative governance, increase efforts to crack down on abnormal patent applications, improve the quality of patent applications and accelerate efforts to build China into a country that is strong on intellectual property. Thanks. 

Economic Daily:

According to recently published statistics, in 2021, the amount of national patent and trademark pledge financing exceeded 300 billion yuan for the first time. How do you comment on this and what specific measures have been carried out? Thanks. 

Hu Wenhui:

Thank you for your question. Regarding pledge financing, we will invite Ms. Lei to answer the question.  

Lei Xiaoyun:

Thank you for your question. Mr. Hu just introduced the overall situation for national patent and trademark pledge financing in 2021. Last year, the amount of national patent and trademark pledge financing exceeded 300 billion yuan for the first time, and financial inclusion was also improved. It was the result of superimposing multiple factors including policies, measures, market environment and business demands, as well as giving full play to the initiatives of both central and local governments. 

First, the central government has attached great importance to intellectual property pledge financing. General Secretary Xi Jinping has repeatedly pointed out the necessity of increasing financial support for micro, small and medium-sized enterprises. The Fifth Plenary Session of the 19th CPC Central Committee proposed improving the financial support innovation system. The Central Economic Work Conference emphasized guiding financial institutions to increase support for the real economy, especially the technological innovation of small and micro-sized enterprises. The Outline for Building China's Strength in Intellectual Property and the 14th Five-Year Plan proposed developing intellectual property finance in an active and steady manner. The executive meeting of the State Council discussed and made arrangements for intellectual property pledge financing. 

Second, the financing demands of technology-based micro, small and medium-sized enterprises have been increasing. Micro, small and medium-sized enterprises have been an important force for stabilizing growth, promoting employment and safeguarding people's livelihood. Against the backdrop of COVID-19, micro, small and medium-sized enterprises have been under enormous pressure and faced many difficulties. Particularly, many technology-based enterprises in the start-up stage, which have strong innovation capacity and solid growth potential, have been eager to obtain financial support with "light assets" such as patents and trademarks to achieve better development.

Third, we should implement multiple measures, combine details, analyze the overall situation and make joint efforts. In terms of policy guidance, we should follow the deployment of the State Council. The CNIPA has joined the China Banking and Insurance Regulatory Commission (CBIRC) and the National Copyright Administration in issuing the Notice on Further Strengthening Intellectual Property Pledged Financing. The Notice establishes specific measures such as separate credit plans, specialized evaluations and incentive mechanisms, as well as loosening non-performing loan ratios. The Notice on Promoting and Regulating the Operation of Intellectual Property Rights, which prioritizes strengthening financial services for intellectual property rights, has also been issued. The CNIPA, the CBIRC and the National Development and Reform Commission (NDRC) have jointly launched a three-year campaign entitled, "Intellectual Property Pledge Financing to Benefit Enterprises in Industrial Parks," and provided guidance to local authorities for bank-enterprise matchmaking activities. In terms of optimizing services, the Measures for Registration of Pledge of Patent Right has been revised, providing online registration of intellectual property pledges for financial institutions on a trial basis. We have jointly provided guidance with relevant departments for building a national intellectual property pledge information platform to gather information on patent and trademark pledges and financial products. In terms of bank-enterprise cooperation, we have conducted strategic cooperation with Bank of China and China Construction Bank to guide the development of special products for intellectual property pledges.  

Next, in accordance with arrangements made by the central government, we will continue to promote intellectual property pledge financing to provide better services for innovative small and medium-sized enterprises and provide support for the high-quality development of the real economy. 

Thanks.

China Intellectual Property News:

The establishment of an open licensing system has been added to the newly amended patent law. Why did the authorities create such a system? What positive outcomes have been achieved since the system took effect more than six months ago?

Hu Wenhui:

Thanks for your questions. I'd like to take the question regarding the open licensing system. As you said, it was revised according to China's national realities while also learning from the experience of foreign countries. The open licensing system was set up to promote the enforcement and application of patents, and it works in the following three aspects: 

First, it facilitates the transmission of patent license information. The CNIPA announcements regarding the patent licensing act as a bridge between patentees and licensees, making it easier for both parties to reach each other.

Second, it ensures patent licensing negotiations are more efficient. The removal of complicated negotiations makes it easier for patentees and licensees to reach an agreement over patent licenses, thereby lowering the patent licensing costs. 

Third, it reduces the risks amid patent license transactions. There are mechanisms to disclose patent license information and handle patent disputes in the open licensing system, allowing the licensees to comprehensively understand the licensing conditions and other information in advance.

The open licensing system has drawn the broad attention of the patentees and people from all walks of life over the past more than a half year. According to our statistics, the CNIPA has received 608 open patent license statements, 572 of which are invention patents filed by 110 patentees from 24 provinces and equivalent administrative units .

To ensure the implementation of the patent licensing system, the CNIPA has also made efforts such as releasing statistical data of the patent royalties and developing assessment criteria, laying a solid foundation for the smooth operation of the system.

Going forward, we will continue to promote the enforcement and application of patents and ramp up efforts in the following three aspects: First, we will ensure that services in terms of license statement submission, information disclosure, and filing will become more convenient. Second, we will improve the services regarding the pricing of patent royalties and the transfer of patent licenses under the framework of the special plan to promotes the application of patents, thereby encouraging more people to make better use of the system and patents. Third, we will strengthen regulation and supervision and crackdown on the practices of counterfeiting licenses to avoid or reduce the annual fees in accordance with the laws and regulations. Moreover, we will fulfill the duty of handling the patent disputes to create a favorable environment. Thank you. 

ThePaper.cn:

In December of last year, the United States Patent and Trademark Office (USPTO) imposed sanctions against a trademark agency in Shenzhen, invalidating more than 15,000 trademarks the agent filed. What is your comment on the U.S. sanctions? Is there any problem with the agency? What measures have the CNIPA taken to respond to the issue? Thank you.

Hu Wenhui:

Thank you for your questions. I'd like to invite Ms. Lei to answer it.

Lei Xiaoyun:

Thank you for your questions. We've learned about the U.S. announcement. Media outlets and experts have made objective analyses on the steady growth of trademark applications in the United States from Chinese applicants. Most of them believe that the rapid increase in trademark applications in foreign countries is mainly because that the rapid development of China's cross-border e-commerce, which has pushed more Chinese products to meet the sales requirements of Amazon and other e-commerce platforms in the United States. 

As Chinese companies have become increasingly global in recent years, market entities' demand for intellectual property services has also surged, which therefore triggered rapid development of the intellectual property agency sector. In order to ensure the rights and interests of the applicants, we have stepped up efforts in the "Blue Sky" campaigns among other multiple measures to tighten regulation on trademark agents.

First, we launched a self-examination and rectification campaign and collected integrity commitments. Approximately 23,000 trademark registration agencies completed self-examination of key rectification issues and submitted their reports.

Second, we cracked down on malicious trademark registration activities in a timely manner. More than 130 such cases were investigated and punished.

Third, we strengthened supervision of major trademark registration cases and severely cracked down on acts that disrupted industry order. Three trademark registration agencies were ordered to cease related operations.

Fourth, we regulated platform-based trademark registration agencies and trading behavior through multiple means, such as offering administrative guidance, making regulatory talks for self-correction, suspending operations for self-rectification, and giving administrative penalties. The trading of 2.07 million trademarks suspected of being registered with malicious intention was withdrawn.

As for the Shenzhen-based agency you just mentioned, during a special crackdown campaign last year, the trademark law enforcing department imposed administrative penalties on the agency and its person in charge for false advertising and using illegal means to solicit business in China.

Next, we will fiercely crack down on violations of laws and regulations within trademark registration agencies, continue to improve the order of trademark agency industry and stimulate the vitality of trademark agency services, so as to provide strong support for comprehensively strengthening the protection and utilization of intellectual property. Thank you.

China Daily:

In China's 14th Five-Year Plan (2021-2025) and the Long-Range Objectives Through the Year 2035, the "number of high-quality invention patents per 10,000 people" was set as a major social and economic development goal for the first time. How is the goal achieved now? What does it indicate? Thank you.

Hu Wenhui:

Thank you for your questions. I would like to invite Mr. Ge Shu to answer the questions on high-value invention patents per 10,000 people.

Ge Shu:

Thank you for your questions. As Mr. Hu just noted, by the end of 2021, the average ownership of high-value invention patents on the Chinese mainland reached 7.5 patents per 10,000 people, up 1.2 over the previous year. The number of high-value invention patents per 10,000 people aims to objectively evaluate China's innovative development and guide the transformation of intellectual property work to become an quality-oriented one. The number is an anticipatory goal. How it is achieved primarily depends on how market entities play their role. According to statistics of 2021, China's scale of high-value invention patents expanded steadily, and the structure of high-value invention patents was further optimized. This ensured a good start to the 14th Five-Year Plan (2021-2025). It can be shown in the following aspects:  

First, the reserve of patents for high-tech and strategic emerging sectors was continuously strengthened. By the end of 2021, the number of invention patents for high-tech and strategic emerging sectors was 792,000 in China (excluding Hong Kong, Macao and Taiwan), up 114,000 over the end of the 13th Five-Year Plan period (2016-2020). Industries' independent innovation capacity strengthened continuously.

Second, the number of valid invention patents effective for a long period of time increased rapidly. By the end of 2021, the number of valid invention patents effective for more than 10 years was 323,000 in China (excluding Hong Kong, Macao and Taiwan), an increase of 27.7% over the previous year, contributing 11.9% of the national GDP, up 0.6 percent point over the end of the 13th Five-Year Plan period (2016-2020).

Third, innovators' capability of going global improved continuously. By the end of 2021, the number of China's valid invention patents possessing overseas patent family rights was 83,000, an increase of 21.8% over the previous year. Enterprises were the main innovators and owned nearly 90% of them.

Next, the CNIPA will focus on implementing the plan of building a major intellectual property country and implementing the 14th Five-Year Plan (2021-2025), make our targets more quality-oriented and value-oriented, fully unleash the creativity of the society, and vigorously strengthen the quality of intellectual property creation, so as to use high-quality intellectual properties to facilitate high-quality economic and social development.

Thank you.

Ta Kung Pao and Wen Wei Po:

We have noted that the CNIPA has issued data on intellectual property services in its annual statistics for the first time. What are the considerations behind this data release? What progress has China made in providing intellectual property public services over the past year? Thank you.  

Hu Wenhui:

Thank you for your question and your long-term interest in intellectual property-related work. Indeed, this is the first time we have officially released data on intellectual property public services in our annual statistics. So let me brief you on this. 

In recent years, according to decisions and arrangements of the CPC Central Committee and the State Council on reforms to streamline administration and delegate power, improve regulation, and upgrade services, the NIPA has strengthened intellectual property public services and issued a guideline in 2021 on deepening the reforms mentioned above in the intellectual property field. This guideline includes 16 reform measures of six aspects to promote comprehensive progress in this regard.

First, we have deepened reforms to facilitate patent and trademark registration applications. As I mentioned earlier, the "one-window" service for patent and trademark business is now provided in 31 provinces (autonomous regions and municipalities). At the same time, we continued to promote the online completion of the whole process of patent pledge registration. Furthermore, we have advocated the notification and promise principle in the process of patent and trademark exclusive right pledge registration. The measures of reform on notification-promise mechanism for licensing and approving agencies' operations have been replicated and applied nationwide. In addition, in terms of the review cycle, in 2021, the review cycle of high-value invention patents was reduced to 13.3 months, the average review cycle of invention patents was decreased to 18.5 months, the average review cycle of trademark registration remained stable at 4 months, and the general trademark registration cycle was reduced to 7 months.  

Second, we have made intellectual property public services more standardized, equitable, and accessible. Not long ago, the NIPA issued a list of intellectual property public services, which includes the online and offline access paths for 49 services in three categories of intellectual property application, management, and information. As a result, the intellectual property public service requests can be accepted without discrimination and processed with the same standard based on the list.  

Third, we have accelerated the establishment of an intellectual property public service system that is convenient for and beneficial to the people. As I mentioned earlier, in 2021, China's intellectual property information service institutions achieved full coverage at the provincial level, with 52 provincial-level institutes and 104 prefecture-level comprehensive institutes. At the same time, we have jointly set up 101 technology and innovation support centers with the World Intellectual Property Organization, built 80 national intellectual property information service centers in universities with the Ministry of Education, and filed the first batch of 88 national intellectual property information public service entities.  

Fourth, we have enhanced infrastructure construction for IT-based and intelligent intellectual property. We have further optimized the functions of the intellectual property public service network and advanced its connection with websites of governments at all levels, including the CNIPA's official website, as well as the technology and innovation support centers and the websites of the intellectual property information service centers in universities mentioned above and other resource platforms. We have cooperated with the National Development and Reform Commission and other departments to guide the establishment of the intellectual property pledge information platform, achieving "one-stop inquiry" and "one-window display."

Fifth, we have beefed up efforts to open and share intellectual property data resources. We opened 10 additional types of intellectual property data to the public. We provided the data of China's layout-designs of integrated circuits for the first time, realizing batch downloading of the data of 45 kinds of Chinese and foreign patents, trademarks, and layout-designs of integrated circuits. The European Union Trademark Search System was also launched to provide the public with foreign trademark information search services for the first time.  

A few days ago, the CNIPA issued the 14th Five-Year Plan for intellectual property public services, the first five-year plan in this field. The plan will render the intellectual property public services more accessible and convenient and comprehensively support and efficiently serve the building of a strong country for intellectual property rights. Thank you. 

Cover News:

Trademark squatting with "Lake Changjin" and "Quan Hongchan" received significant attention. Data on the fight against malicious trademark registrations last year was also mentioned just now. What measures were taken in the previous year to combat malicious trademark squatting and what progress was achieved?

Hu Wenhui:

Thank you for your questions. Mr. Zhang Zhicheng will answer them.

Zhang Zhicheng:

Thank you for your questions. As you mentioned, incidents involving malicious trademark applications received much public attention. The CNIPA has attached great importance to solving the problem and taken multiple measures, such as improving regulations, setting up lexicons as examination guides, dealing with applications by type, and launching special actions, to crack down on trademark squatting and build a market environment featuring good faith. In 2019, we formulated and issued Several Provisions on Regulating Trademark Registration Applications. The regulation stipulates that a bad-faith application for trademark registration shall be rejected and invalidated according to the law and that the applicant shall be given administrative punishment such as warnings and fines based on the circumstances by the market regulatory department at or above the county level at the place where the applicant is located or where the violation occurs.

In early 2021, the CNIPA issued the Special Action Plan for Combating Malicious Trademark Squatting. The plan identified ten acts targeted during the special action, including maliciously squatting the names of public figures, well-known works, or character names with a relatively high reputation. Relevant case clues would be transferred to local intellectual property offices. As Mr. Hu mentioned, the CNIPA combated 482,000 malicious trademark registration applications throughout last year and rejected 1,111 applications involving trademark squatting with names including "Lake Changjin" and "Quan Hongchan." The CNIPA also announced 1,635 registered trademarks invalid and transferred 1,062 clues of cases involving suspected significant adverse consequences and malicious trademark registration to local authorities. Thanks to the measures, a tough position has been adopted across society in cracking down on malicious trademark registration.

In addition, as Ms. Lei mentioned, the CNIPA has intensified efforts in combating malicious squatting by trademark agents. For example, we organized local authorities to investigate 24 cases where trademark agents attempted to snatch buzzwords for the Olympic Games as trademarks maliciously and imposed administrative punishment on 13 cases. For two trademark agents involved in major severe squatting cases, we directly imposed an administrative penalty and stopped their business. In addition, we summoned 13 platform-based trademark agents for talks, guiding them to establish mechanisms for screening malicious trademark squatting and preventing the act and other violations of laws and regulations.

In the near future, the CNIPA will publish some typical cases of malicious trademark squatting on its official website and WeChat account to maintain long-term deterrence and ensure market and legal environments featuring fair competition and good faith for all market entities.

Thank you.

China Economic Information Service (CEIS, affiliated with Xinhua News Agency):

China's patent-intensive industries have made relatively fast progress against the backdrop of COVID-19. Could you elaborate on their features and current status based on the just-released data?

Hu Wenhui: 

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

Ge Shu: 

Thank you for your question. Globally, patent-intensive industries, featuring outstanding innovative capacity and strong market competitiveness, have provided strong support for high-quality socio-economic development in innovation-oriented countries. Cultivating and expanding these industries is a significant measure to push forward the integration of intellectual property into innovative development and promote high-quality economic development.

In order to better monitor the growth of patent-intensive industries, the NIPA and the National Bureau of Statistics jointly established a mechanism for the accounting and release of the added value for these industries. Statistical data shows that the growth characteristics of patent-intensive industries are as follows:

First, patent-intensive industries have strongly driven China's economic growth. Data released by Mr. Hu just now shows that China's overall added value of these industries exceeded 12 trillion yuan, up 5.8% year on year (without deducting the price factors), contributing 24.6% to GDP growth. Its proportion in GDP rose 0.35 percentage point compared with last year.

Second, patent-intensive industries show a strong capacity for risk resistance and robust resilience in development. In spite of the big socio-economic impact of the COVID-19 pandemic in 2020, the added value of the information and communication technology service industry, medical and pharmaceutical industry, as well as R&D, design and technology service industry rose 15.7%, 10.1% and 5.9% respectively year on year, becoming new engines of growth.

Third, patent-intensive industries boast strong innovative capacity and rapid growth in patent reserve. The authorized invention patents in the information and communication technology service industry and medical and pharmaceutical industry increased around 50% year on year. The fast growth of patent reserves in digital economy and medical sectors, among others, has strongly supported the rapid development of relevant industries.

The 14th Five-Year Plan for Protection and Application of Intellectual Property Rights proposed the task of cultivating patent-intensive industries. By the end of 2025, the added value of patent-intensive industries is expected to account for 13% of GDP. Next, with focus on the implementation of the task, the CNIPA will continue to cultivate and expand patent-intensive industries and push forward the deep integration of intellectual property with industries, thus promoting the transformation of intellectual property into real productivity and reinforcing the new engines of high-quality economic development. Thank you.

CNR:

With the 2022 Winter Olympics and Paralympics approaching, what has the CNIPA done to protect intellectual property associated with the Olympic Games? Thank you.

Hu Wenhui:

Thanks for your question. I will answer this question. General Secretary Xi Jinping emphasized that the Beijing Winter Olympics and Paralympics are major events for the Party and the country. Furthermore, a successful Beijing 2022 is China's solemn commitment to the international community. Therefore, making good preparations for the Beijing Winter Olympics and Paralympics is an honor and an important mission. The CNIPA has thoroughly implemented the guiding principles of General Secretary Xi Jinping's important instructions, attached great importance to the protection of intellectual property associated with the Olympics, actively deployed and implemented relevant work, and strived to provide a solid guarantee for a wonderful, extraordinary, and outstanding Olympic Games. I will briefly introduce our work in four main areas:

First, we have consolidated the foundation of work and promoted complete protection. We have announced the protection of 63 Olympic symbols submitted by the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games, including the emblem, name, abbreviation, mascot, and slogan. At the same time, we have strengthened the protection of patents and trademarks for the emblems and torch designs of the Beijing Winter Olympic and Paralympic Games, providing complete protection of intellectual property associated with the Games.

Second, we have highlighted the key points of protection and enhanced the effectiveness of regulation and crackdown on intellectual property infringement. On the one hand, following the Regulations on the Protection of Olympic Symbols, we have promoted the timely release of information on licensees of the protected Olympic symbols, effectively supporting the enforcement of administrative law. On the other hand, together with the State Administration for Market Regulation (SAMR), we have issued a special action plan for protecting the intellectual property associated with the Olympic Symbols of the Beijing 2022 Winter Olympics and Paralympics, according to which a special nationwide campaign has been ongoing since mid-October last year to June this year.

Third, we have strengthened supervision to see responsibilities fulfilled locally. In collaboration with the SAMR, we have conducted special investigations in the Beijing and Zhangjiakou competition zones and various venues. For example, not long ago, some officials of the CNIPA went to Chongli district and conducted a special investigation on the intellectual property protection associated with the Olympics to ensure that the relevant protection work was practical and to provide guarantees for the smooth development of the Beijing Winter Olympics and Paralympics.

Fourth, we have underlined the publicity and training of intellectual property protection to improve the ability of relevant staff. For example, in 2020 and 2021, we held special training sessions, organized in both online and offline format, on the improvement of abilities to protect intellectual property associated with the Olympics for a total of 1,100 people, which effectively improved the professional capacity of personnel who are responsible for intellectual property protection and further publicized relevant knowledge.

Next, the CNIPA will organize all localities to strengthen further the protection of intellectual property associated with the Olympics, strictly crack down on infringement before the competition, enhance the coordination during the competition, and maintain a tough stance against intellectual property infringement. We will help ensure a successful Winter Olympic and Paralympic Games with these efforts.

Thank you. 

Brazilian newspaper O Globo:

Could you talk a little bit about China's position on intellectual property on public health issues, especially on COVID measures, not only vaccines but the testing for example. 

Hu Wenhui:

Thanks for your question. As many are concerned, we have attached importance to intellectual property related to the COVID-19. The CNIPA has launched a special green channel for quick review of patent applications related to the COVID-19. For intellectual property information services related to the COVID-19, we have also specially set up a professional service website for the public and professionals to inquire about relevant information. In this way, we have done our part to support the development of vaccines and the prevention and control of the pandemic. That's all I have to say in regards to that topic. Thank you.

Xing Huina:

Thank you, Mr. Hu, and thanks to the other three speakers. Today's press conference is now concluded. Thank you, journalists from the media. Goodbye, everyone.

Translated and edited by Cui Can, Liu Qiang, Liu Jianing, Zhang Rui, Gong Yingchun, Li Huiru, Wang Mengru, Chen Xia, Xu Xiaoxuan, Huang Shan, Wang Yiming, Yan Xiaoqing, Zhou Jing, Wang Qian, Zhu Bochen, Yuan Fang, Zhang Liying, David Ball, Jay Birbeck, and Drew Pittock. 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:

Wang Zhenmin, professor in the School of Law and director of the Center for Hong Kong and Macao Studies at Tsinghua University, and deputy head of the Chinese Association of Hong Kong and Macao Studies

Han Dayuan, professor in the Law School at Renmin University of China, and member of the Hong Kong Basic Law Committee of the Standing Committee of the National People’s Congress

Zhi Zhenfeng, researcher with the Institute of Law and the Center for Taiwan, Hong Kong and Macao Studies at the Chinese Academy of Social Sciences

Chairperson:

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

Date:

Dec. 27, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press briefing being held by the State Council Information Office (SCIO). Recently, the SCIO has issued a new white paper titled "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." Today, we are very glad to have invited three experts to introduce relevant information and answer your questions. They are Mr. Wang Zhenmin, professor in the School of Law and director of the Center for Hong Kong and Macao Studies at Tsinghua University, and deputy head of the Chinese Association of Hong Kong and Macao Studies; Mr. Han Dayuan, professor in the Law School at Renmin University of China, and member of the Hong Kong Basic Law Committee of the Standing Committee of the National People's Congress (NPC); and Mr. Zhi Zhenfeng, researcher with the Institute of Law and the Center for Taiwan, Hong Kong and Macao Studies at the Chinese Academy of Social Sciences.

Now, I will give the floor to Mr. Wang Zhenmin.

Wang Zhenmin:

Friends from the media, ladies and gentlemen, good morning. I am very glad to be here at today's press briefing. The word "press briefing" is "chuifeng" in Mandarin, similar to "chuishui" in Cantonese. "Chuifeng" and "chuishui" can be combined into "chui feng shui," which implies that we have good feng shui. This March, the NPC and its standing committee improved Hong Kong's electoral system and formed a new democratic electoral system. Under the new system, the subsector general election for the Hong Kong Election Committee and the election of the seventh-term Legislative Council (LegCo) were held this year. On the day after the LegCo election, the SCIO issued a white paper titled "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." The other two speakers and I have studied the Hong Kong question for a long time. Many experts and scholars studying the development of Hong Kong's political system have carefully read this white paper. It's my great pleasure to have the opportunity today to share with you our understanding of the white paper and relevant questions, and exchange views with you on Hong Kong's democratic progress.

The white paper, which focuses on Hong Kong's democratic progress, is the second to be issued by the Chinese government on the Hong Kong question. It comes at an opportune time and has great significance and far-reaching impact. The document offers a panoramic overview of the development of Hong Kong's political system over the past 180 years since British troops occupied Hong Kong Island in 1841, and particularly over the past 40 years. Full of facts and reasoning, the white paper presents both narration and comments, and combines explanation and argumentation. The document organically connects many seemingly isolated historical events and stories, and clarifies the historical and logical threads running through them, thus enabling readers to temporarily put aside current affairs at the time and review the extremely bumpy and complicated development process of Hong Kong's political system from a historical viewpoint. The white paper helps uncover the thick layers of history and dispel the long-lingering clouds of lies and rumors, so that readers can find the essence through phenomena, and grasp the truth and the whole picture of events. I believe that the document will truly help the public understand the merits of relevant matters, and make more objective, fair and fact-based judgments on Hong Kong's democratic progress under the framework of One Country, Two Systems. The white paper tackles problems at their roots, reveals the truth, and differentiates right from wrong, thus giving people inspiration and confidence.

In preparation for today's conference, I talked to some Hong Kong youth who are living in Beijing, asking them about their views on the white paper. Some of my Hong Kong friends also called me to share their ideas. It can be said that they have the best say in this regard. They said that in the past, they felt Britain was so good, as Britain and the United States were more democratic and seemed to be helping Hong Kong. After reading the white paper, they understand that the colonial rule was, in essence, dictatorship and had nothing to do with democracy. Over a long period, Britain hadn't exercised democratic rule in Hong Kong. But the British government rushed to "develop democracy" in Hong Kong in the very short remaining period of the colonial rule. What was the intention? Whose benefit was it for? The purpose was obvious to everyone and could deceive nobody. The white paper has revealed their hidden story. Those who didn't exercise democracy now in turn blame those who develop democracy, finding fault with the latter's practice. Is that logic? Certain countries have always taken the Sino-British Joint Declaration as a tool to meddle in Hong Kong affairs. I bring the text of the joint declaration with me. After repeatedly reading the text, I can't find wording such as "democracy" or "universal suffrage." China has been criticized for violating the joint declaration. But there's no mention of universal suffrage or democracy in the joint declaration. The joint declaration is not a document determining what electoral system would be implemented and what kind of democracy would be practiced in Hong Kong after its return to the motherland. It only specified that the government of the United Kingdom would restore Hong Kong to China, as simple as that. After the handover, what political system and electoral system would be implemented in Hong Kong are purely China's internal affairs. No country will discuss with other countries what kind of political system or what kind of electoral system would be implemented. I also read the Hong Kong Letters Patent and Hong Kong Royal Instructions promulgated during British rule and couldn't find anything relevant to democracy. We can find in those two documents that the LegCo members were appointed or removed by the governor with the approval of the British government and should hold their offices at the authority's pleasure. How could that be democracy? The system of democracy in Hong Kong was established after its return to the motherland in accordance with China's Constitution and the Basic Law of the HKSAR. That's the fact and truth. If you are interested, you may study the above-mentioned documents related to Hong Kong.

Even if in terms of human rights and the rule of law, the relevant situation is much better in Hong Kong after its return than in those countries which point the finger at it. Hong Kong ranks higher than those countries on the rankings of democracy and the rule of law. Their blames totally fly in the face of facts. The white paper reveals where Hong Kong's democracy comes from and the path it's heading for as well as its development process. It also reveals who had undermined democracy and who saved it; who has created, promoted, restored, and defended Hong Kong's democracy, while who has undermined and disrupted democracy in Hong Kong. The Communist Party of China (CPC), the Chinese government, and the Chinese people, including 7.5 million Hong Kong residents, hold 100% of intellectual property right on Hong Kong's democracy. The white paper also discloses what democratic system is good and what is fake democracy that impairs Hong Kong. What has happened proves that the Western model doesn't work in Hong Kong, and Hong Kong must have its own democratic system under the framework of One Country, Two Systems. The white paper also gives answers to what such a democracy should look like, what environment and conditions are needed to develop it, what's Hong Kong's democracy after improving its electoral system, and what is Hong Kong's future.

Only after reading the white paper can we realize that Hong Kong's democracy is so open and inclusive. Permanent residents of the HKSAR who are not of Chinese nationality also enjoy the right to vote and the right to stand for election, which I think is unique in the world – just think which country or place allows foreigners to vote and be elected in its territory. Chinese citizens who are permanent residents of the HKSAR even have dual rights: the right to participate in the governance of both Hong Kong and the country as empowered by law. Under the One Country, Two Systems policy, Hong Kong treats foreign companies and individuals friendly and as equals. Hong Kong is the place in the world with the least discrimination against foreign investment and the highest degree of equal protection for investors' interests. China supports Hong Kong's integration into the overall national development and vigorously backs Hong Kong in exchanges and cooperation with other countries, and Hong Kong will be more open to the world. 

Not until we read the white paper can we be aware of the central authorities' unwavering commitment to the One Country, Two Systems principle, with great resolve, confidence, and patience remaining unchanged. This is also true for the central authorities' motherly trust in the Hong Kong people, including the youth. There was a time when the One Country, Two Systems policy was severely disrupted and distorted, and the Hong Kong people fretted that the central authorities would be irritated to change its policy towards Hong Kong. Now, the white paper makes it clear that the central authorities will continue to implement the basic policy of One Country, Two Systems fully and faithfully. The One Country, Two Systems principle is back on track and functions well with vitality, debunking various kinds of lies and rumors. 

The white paper shows us who Hong Kong's family is and who truly loves Hong Kong and cares about the suffering of every person in Hong Kong. The affectionate words in the white paper reflect the motherland's selfless love and intense expectations. In the past two years, everything the central authorities have done is to save Hong Kong and its youth, democracy, and the One Country, Two Systems principle; everything has been for the benefit of Hong Kong and served the fundamental interests of all people who regard Hong Kong as their home. Always remember, rich or poor, diseased or healthy, in good times or in bad times, the motherland will always be with Hong Kong and provide the strongest backing. There were once many misunderstandings and misinterpretations of the motherland. In fact, only the motherland sincerely loves and protects Hong Kong, and has been providing it with practical and substantial support, making copious endeavors to promote its democratic and economic development. In order to ensure the long-term implementation of the One Country, Two Systems principle, the motherland has struggled against the anti-China agitators extensively, an effort, however, that was always distorted and smeared. How hard for the motherland! 

The white paper explains that only by standing firmly with its family and motherland can Hong Kong have a bright future, prosperity, and real high-quality democracy. The Western politicians hypocritically declared that they would "stand with Hong Kong people." However, young people from Hong Kong responded by saying "forget it" and "stay away from me." They will never fall for it again, nor will they be fooled again to let others actualize "mutual destruction" at their home of Hong Kong and exploit Hong Kong to mess up the happy life of over 1.4 billion Chinese people.  

In a nutshell, only after reading the white paper will we recognize the great significance of the recent LegCo election, which has opened a brand-new chapter for Hong Kong's democracy, with its advanced nature and strengths beyond doubt. Hong Kong must resolutely follow its own path and establish a new capitalist democratic system under the One Country, Two Systems principle.  

Now, we would like to take your questions. Thank you.

Shou Xiaoli: 

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

CCTV:

The white paper is titled "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." What's the relation between the One Country, Two Systems policy and Hong Kong's democratic development? Thank you. 

Han Dayuan:

The title of this white paper, which was just mentioned, is worth your full attention. The core idea of a white paper is reflected in its title. This white paper is entitled Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems. As we know, the word "under" signifies that the One Country, Two Systems framework and Hong Kong's democratic progress are not parallel. Rather, the framework constitutes the premise of and fundamental guarantee for Hong Kong's democratic progress, and One Country is a prerequisite for Hong Kong's democracy. The political system of Hong Kong applies locally. The election held in Hong Kong under the framework of One Country, Two Systems is a local one. The word "under" in the title helps clarify many fundamental and underlying problems. The white paper has pointed out clearly that the principle of One Country, Two Systems provides the fundamental guarantee for the development of democracy in Hong Kong. How should we understand this "fundamental guarantee"? Actually, it has shown the relationship between One Country and Two Systems. One Country is the prerequisite and basis for the Two Systems. The Two Systems are subordinate to and derive from One Country, and are an inherent part of One Country. The socialist system practiced on the mainland, the main body of the country, and the capitalist system in Hong Kong, run in parallel. However, the fact that the latter is subordinate to the former is not to be challenged. According to the white paper, the leadership by the CPC is the defining feature of Chinese socialism, and it is at the core of the order established by the Constitution. As such, it must be truly respected and upheld in Hong Kong. To determine the system of democracy in Hong Kong reflects the nature of the relationship between the central authorities and the HKSAR, and affects the region's stability and prosperity. In accordance with the Constitution and the HKSAR Basic Law, the central authorities have the final say in steering the development of democracy in Hong Kong. Only under central guidance can Hong Kong expect its democracy to make healthy progress. 

Some may be interested in the relationship between China's democracy and the democracy practiced in the HKSAR. In fact, the white paper has given clear answers in this regard. In accordance with the Constitution and the Basic Law, the system of democracy in Hong Kong is a component of the national democracy of the People's Republic of China, as Hong Kong's return to China signifies the region's reintegration into China's national governance. With the establishment of the constitutional order in Hong Kong, the system of democracy in the region has been reintegrated into the constitutional order underpinned by the Constitution and the Basic Law. Therefore, the system of democracy in Hong Kong is part of the national democracy. Both of them reflect the same philosophy, which is that the Chinese people, including the 7.5 million Hong Kong compatriots, run their own country. In the meantime, the state has, through the Basic Law, stipulated the main content, procedures, and basic principles of the system of democracy in the HKSAR. Thanks to the policy of One Country, Two Systems, Hong Kong can develop its democratic system with its own characteristics in accordance with the law and in light of the region's actual conditions, a system that applies locally and is different from that of the mainland.

According to the white paper, China's state and political systems determined that Hong Kong would establish a system of democracy after its return to China. The Chinese government remains committed to developing democracy in the HKSAR. As a special administrative region directly under the Central People's Government, its government should be organized on the basis of democratic principles stipulated by the Constitution and the Basic Law, as are its functions. The white paper also clarifies the interplay between the development of democracy and the rule of law in Hong Kong. The development of democracy should be based on the rule of law, and the constitutional order determined by the Constitution and the Basic Law should be upheld. As we all know, no democratic system in the world can be free of any checks. Democracy must be run under the framework of the rule of law. The development of democracy in Hong Kong cannot break the limits of the Constitution and the Basic Law, let alone undermine China's national security. Without national security, there would be no prospect of implementing democracy. Democracy, freedom, and human rights are the common values of humanity, to which the CPC and the Chinese people remain committed. Democracy is the right of the people, not the patent held by a small number of countries. The white paper – China: Democracy That Works – recently released by the Chinese government has encapsulated China's achievements in the development of democracy and championed the new concept of "whole-process people's democracy." This has provided Chinese thoughts, wisdom, and experience for global democracy laid the groundwork for developing democracy in Hong Kong under the framework of One Country, Two Systems, and provided a rule-of-law guarantee for developing democracy with Hong Kong's characteristics.

Therefore, Hong Kong citizens need to understand and pay attention to our country's democratic progress. Through practice, especially after experiencing turmoil in 2019, we have realized the limitation of the Western democracy and decided to firmly advance democracy with Hong Kong characteristics under the policy of One Country, Two Systems. 

Hong Kong Sing Tao Daily: 

The release of the white paper coincides with the first day after the Hong Kong LegCo election. May I ask what the considerations were in choosing the timing of its release? Thank you.

Wang Zhenmin:

As for the timing for the release of the white paper, there are many comments. In my view, two elements are of much concern to its debut soon after the LegCo election. First, the new electoral system of Hong Kong has twice experienced test practices: one with the elections of the Election Committee and the other with the LegCo. It is timely to summarize the new electoral system of Hong Kong. After all, the two significant practices have proved that it's a good system. The only test for truth is practice. We speak with facts. It's a good time to summarize the new electoral system in the HKSAR and its practical experience, elaborate on the core principles of the new electoral system and democracy, make a panoramic scanning of the democratic progress of Hong Kong, and extract the experience, lessons, and basic rules. I think it's appropriate. Second, some Western countries and politicians always observe China and everything in Hong Kong with self-imposed bias and resort to all kinds of means to attack and smear democracy in Hong Kong. The release of the white paper is timely to clarify facts, uncover the truth, fight against the attack on the democracy and new electoral system of the HKSAR, and manifest the principles and position of the Chinese government on the democratic progress of Hong Kong. I think the timing is very appropriate. Thank you. 

Hong Kong Commercial Daily: 

With the implementation of the Hong Kong National Security Law and the improvement of the electoral system, the situation of Hong Kong patriots governing Hong Kong has become consolidated. My question is for the experts: how will the government of HKSAR improve the business environment and accelerate the development of Hong Kong? Thank you.

Zhi Zhenfeng:

A good business environment is the hallmark of Hong Kong. In fact, the policy of One Country, Two Systems is the fundamental guarantee for the business environment in Hong Kong. People around the world are concerned with the business environment in Hong Kong. Being an international financial, shipping, and trade center, Hong Kong is a bridge of China for international communication and an attractive place for foreign investment. The Chinese government always firmly supports the government of HKSAR to improve the business environment of Hong Kong and protect the interests of investors. 

The rule of law underpins the best business environment. Since the return of Hong Kong to China, we have noticed that the business environment in Hong Kong continues to improve and is in a leading global position. The policy of One Country, Two Systems guarantees democracy and the rule of law in Hong Kong. According to the World Bank's Doing Business reports, Hong Kong is always at the forefront of various indicators. Why? The reason is that the high level of the rule of law ensures a good business environment. The policy of One Country, Two Systems has been successfully practiced in Hong Kong. Hong Kong now enjoys a stable political situation, good order, effective governance, high-level rule of law, a buoyant market economy, and an amiable business environment. 

Anti-China forces both inside and outside the region are saboteurs of Hong Kong's business environment. In recent years, anti-China agitators in Hong Kong and foreign territories have been trying to undermine the rule of law in Hong Kong, causing serious social damage, confrontation and conflict, and harming Hong Kong's business environment. We can see that foreign countries such as the U.K. and the United States continue to smear, suppress and bad-mouth Hong Kong. In June last year, the United States ended its special treatment of Hong Kong. In April this year, U.S. Secretary of State Blinken reaffirmed the cancellation of U.S. perks for Hong Kong's autonomous trade and finance. In July, the U.S. trumped up business warnings regarding Hong Kong to directly intimidate enterprises and individuals in Hong Kong, and even imposed illegal so-called sanctions on HKSAR and mainland officials. Within Hong Kong, anti-China agitators launched an illegal "Occupy Central" movement in 2014, later especially during the 2019 turmoil, they obstructed traffic, destroyed facilities, set fires, smashed shops, looted amid the chaos, attacked people, and even privately manufactured arms and weapons, and occupied universities. For a period of time, they turned Hong Kong from one of the world's safest cities into a turbulent city, which caused investors to lose their sense of security and discouraged tourists from visiting.

At critical moments, the central authority is the strongest backing for safeguarding Hong Kong's business environment. With the introduction of a series of measures by the state to address both the symptoms and root causes, such as the enforcement of the Hong Kong National Security Law and the improvements to the electoral system of Hong Kong, relying on the strong support of the central authorities and the vast development hinterland of the Greater Bay Area, Hong Kong's society has gone from chaos to stability, the business environment has been continuously optimized, and the economy has rebounded rapidly, providing huge market space for foreign investors. Here are some examples and data: In 2020, Hong Kong's IPO funds raised exceeded HK$500 billion, an increase of more than 50% year on year, allowing it to remain the second largest IPO market in the world. A recent report issued by the International Monetary Fund (IMF) also reaffirmed Hong Kong's status as an international center. Hong Kong ranks as the sixth largest trading entity in goods in the world in terms of the total value of trade in goods. According to a report by the U.N. Conference on Trade and Development, Hong Kong ranks as the third largest destination for foreign direct investment in the world. And, in the latest 2021 World Digital Competitiveness Ranking, Hong Kong ranks first in Asia and second in the world.

The HKSAR government is very clear and understands that financial trade and commerce are important pillars of Hong Kong's economic prosperity. The principle of Hong Kong patriots governing Hong Kong can guarantee a better business environment in Hong Kong. The HKSAR is now entering a new stage of restored order, thriving society and further prosperity. Therefore, the HKSAR government must seize the development opportunities brought about by the country's comprehensive deepening of reform and opening-up, actively participate in the significant national construction strategies such as building the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative, accelerate integration into the overall national development, inject new momentum into Hong Kong's economic development, work hard to resolve various deep-seated problems that have plagued Hong Kong for a long time, and further optimize and enhance the business environment. Thank you.

Bloomberg News:

Can we ask, is there a timeline for the universal suffrage for the chief executive? Thank you.

Wang Zhenmin:

Allow me to first discuss some points of view. The white paper reiterated the principle and position on the issue of democratic development in Hong Kong. The goals of dual universal suffrage laid down in the Basic Law of the HKSAR have not changed. Future amendments to the two methods for the elections of the chief executive and the LegCo will still be in accordance with the Constitution and the Basic Law of HKSAR, especially the newly revised Basic Law Annex I and Annex II, and will proceed from the realities of Hong Kong. Over the years, the central government has spent a lot of time, energy and resources on the democratic development of Hong Kong. Hong Kong's society has also made tremendous efforts in this regard, which has even caused serious political turmoil. The economy and people's livelihoods were interfered with because of politics. Now that we have a good democratic election system, it can be said that it has not come easily. We have all paid high prices in exchange for today's new democratic system. I think it should be cherished and consolidated. After such a long period of social turbulence and turmoil in Hong Kong, my own feeling is that people are longing for stability, it is necessary to allow the society to recuperate, and spend more energy and resources on developing the economy, improving people's livelihoods, and creating better lives, so as to lay a solid economic and social foundation for the healthy development of Hong Kong's democracy. I think this is what the residents of Hong Kong expect.

The white paper also reiterated in the first section of Part VI the central government's basic policies for Hong Kong. This section clearly states that we must continue to abide by a set of key principles: One Country, Two Systems, Hong Kong governed by the people of Hong Kong, and a high degree of autonomy for the region; and make sure that the policy of One Country, Two Systems will remain unchanged and that it is implemented faithfully. This is the fundamental guarantee for the development of democracy in the HKSAR. More specifically, in recent years, we've often heard about the notion of promoting HK's integration into national development, however, it is important to note that the white paper clearly points out the Chinese government supports Hong Kong in extensive exchanges and cooperation with other countries and areas, and attaches great importance to protecting the legitimate interests of foreign investors in Hong Kong. Hong Kong belongs to China, yet it is also an international economic, trade and financial platform, a platform benefiting not only China but also other countries in the world. Therefore, China is willing to share this platform with other countries and share the dividends brought by China's development. For many years, many international assessment agencies have believed that Hong Kong was, is, and will be the world's freest, friendliest, most open, and most dynamic free port and international financial center. This will only be strengthened and will not be changed. Thanks.

China Daily:

The white paper mentions that having Hong Kong patriots govern Hong Kong does not exclude people with different political views or ideas, nor will criticism of the government be suppressed. Democracy in the HKSAR allows ample room for different opinions and political groups, and there will be a plurality of voices in the government. All those who love the country and Hong Kong should stand together to form the most extensive united front, and expand it and make it more inclusive under the framework of One Country, Two Systems. The head of the Hong Kong and Macao Affairs Office of China's State Council also pointed out earlier that there was a diverse range of candidates for the LegCo election. Did the recently concluded LegCo election reflect this nature? Thanks.

Han Dayuan:

Thank you for your question. Since the changes and improvements were made to Hong Kong's electoral system, a total of 90 LegCo members have been elected. People are very concerned about how political inclusion is manifested. Among the questions of concern, I found that political inclusion and diversity of the electoral system are the terms that appear most frequently. As a scholar, I have some thoughts to share with you in this regard.

First of all, we must set a basic premise when talking about political inclusion, as I have mentioned earlier. The name of this white paper is "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." The policy of One Country, Two Systems itself is one of China's greatest and most unique contributions to the political civilization of mankind. Its essence lies in the peaceful coexistence of two distinct systems within a sovereign country, each exerting respective advantages within the scope of a country. Therefore, the establishment and development of this system itself embodies the greatest political inclusion and greatest political courage, which is also one of China's contributions to world civilization. We have seen that though some countries or politicians criticize China's policy of One Country, Two Systems, they all recognize its contribution. In the history of human political civilization over the past 100 years, we cannot find similar institutional arrangements. In the socialist country of China, the policy of One Country, Two Systems is used to solve problems leftover from history. The political inclusion is embodied in the commitment and basic philosophy of China's government to the principle of One Country, Two Systems. The democratic development of Hong Kong under the policy of One Country, Two Systems, including the reform of the electoral system, reflects the greatest political inclusion, which in itself demonstrates the philosophy of the policy of One Country, Two Systems.

The white paper emphasized the inclusiveness and diversity of democracy in many aspects. Notably, it highlighted how to ensure the inclusiveness of the election. For example, the white paper summarized four characteristics of the electoral system. First, it is broadly representative. The electoral system has attracted an impressive range of candidates from diverse backgrounds, which shows its diversity. Second, it is politically inclusive. Candidates for the LegCo, from different points on the political spectrum, are all equal, no matter what political philosophies and opinions they hold. It's normal that they have different political views or opinions. Hong Kong patriots governing Hong Kong is the fundamental principle for improving the region's electoral system and the foundation for promoting its democratic progress. Hong Kong patriots must govern Hong Kong, but this principle doesn't mean disallowing different voices. Any Hong Kong residents can stand for election and participate in governing Hong Kong in accordance with the law, as long as they love the country and Hong Kong and are not involved in activities that undermine national sovereignty, security, and development interests or jeopardize Hong Kong's prosperity and stability. Therefore, it does not exclude people with different political views or ideas, nor will criticism of the government be suppressed, as said by some Western countries. Political inclusiveness and diversity are essential to implementing the principle of Hong Kong patriots governing Hong Kong. As you know, Hong Kong itself is a diverse society. Usually, people hold different views, opinions, or even sharp criticisms concerning the formulation of public policies and laws and significant issues. However, the Basic Law stipulates that Hong Kong residents shall have freedom of speech, press, assembly, and procession. These are all fundamental rights and freedoms safeguarded by the Basic Law. Hence, the central government clarifies that no instigator of disorder should be allowed into the governing body of the HKSAR, which doesn't mean that no other voices are allowed in the LegCo. During this election, 153 candidates were vying for 90 LegCo seats, which indicates that the electoral system is broadly representative and ensures balanced participation. From the perspective of social background, these LegCo members include clergy, school principals, university professors, lawyers, doctors, and community workers, and such broad representation reflects political inclusiveness and diversity. Among the 90 LegCo members, 56 are new faces, accounting for 62% of the total. Hopefully, you will notice an essential idea in the white paper: All those who love the country and Hong Kong should stand together to form the most extensive united front, expand it, and make it more inclusive under the One Country, Two Systems framework. The extensive united front means that we do not differentiate between political groups based on their political views, backgrounds, or ideas; our sole criterion is to see who serves the people of Hong Kong and safeguards the prosperity and stability of Hong Kong. In this way, we have formed a consensus among Hong Kong society to the most significant extent.

As a scholar, I would especially like to emphasize that since Hong Kong's return to China, since 2005 in particular, some regular expressions took shape in Hong Kong society, such as "pro-establishment camp," "opposition camp," and "pro-democracy camp." Democracy is a very noble and great term. It is understandable to form such habitual expressions as the "pro-democracy camp" label at times, or other labels, in a certain period after its return, but such a phrase, or a way of thinking, cannot objectively demonstrate the diverse interests in Hong Kong society, and is not beneficial for building a diverse and inclusive political and cultural atmosphere. It is apt to, by labeling people who love the country and Hong Kong but hold different political views, artificially divide patriotic people into various factions, which I think is not conducive to uniting people from all sectors of society or building social consensus. The white paper emphasizes forming the most extensive united front under One Country, Two Systems. I believe it is a very important concept because the core of democracy lies in enhancing people's sense of identity and gaining in system implementation. The key to the issue lies in how LegCo members genuinely serve the people after the election. Due to the COVID-19 pandemic and the anti-extradition turmoil, Hong Kong society, especially the Hong Kong people, faces many challenges and issues concerning livelihood, such as housing and employment, which are expected to be addressed through the new LegCo. In my view, being elected to the LegCo is just an exam admission ticket given by the Hong Kong people, and it remains to be seen whether the 90 members elected will genuinely serve the Hong Kong people in the next four years and whether they will be able to obtain their "graduation certificates." The Hong Kong people are in the best position to say whether or not to give them the "graduation certificates," and I particularly look forward to seeing them respond to the most urgent expectations of the Hong Kong people after being sworn in. Thank you.

Kyodo News:

It is reported that the voter turnout in this Hong Kong LegCo election was a record low. Some European and American organizations, therefore, criticized it as unrepresentative. What is the comment on the Chinese side? Thank you.

Han Dayuan:

As a professor of constitutional law, I also study electoral law. The question brought up by the Japanese journalist is also what you all pay great attention to. After the election, I often heard some friends, including some foreign friends, discuss about the voter turnout. The question you raised is of wide attention, and there are also some analyses in Hong Kong society. I would like to share my observations and opinions just as a scholar.

To interpret the voter turnout, we should take an objective and comprehensive look at the election results. According to statistics, in this LegCo election, the voter turnout was 30.2% in geographical constituencies, 32.22% in functional constituencies, and 98.48% in the Election Committee constituency. The election is divided into three parts: geographical constituency election, functional constituency election, and Election Committee election. Therefore, to evaluate the election results, we should not just look at any one of the three election types but take a comprehensive view. That's my first basic idea.

Second, according to my understanding of the rule of law and democratic theory and some views from the international community, turnout is not directly equal to democracy, and the turnout figures do not necessarily indicate the level of democracy and legitimacy of elections. To directly link turnout with democracy and legitimacy or equate turnout with democracy and legitimacy, in my opinion, is at least not in accordance with the rule of law and democratic theory. We should not take turnout as the sole criterion when we observe the election results. Turnout matters because it is an expression of voters' free will, but it is not the only one. We only use it as one of the indicators of voters' engagement in the expression of political intention. We should not only look at how many people have voted, but also who the elected are, and whether they can serve every sector of society, the development of society, and especially the interests of Hong Kong as a whole and its people. As I said earlier, the elections in Hong Kong are local. As we have observed, in recent years, local elections in some Western countries have seen different levels of voter turnout. For example, the turnout in local elections in cities like New York and Los Angeles was sometimes only around 20%, and that of London Assembly elections was between 30% and 40%, which also varies. I have done some research on it. The voter turnout in this year's Tokyo metropolitan assembly election was around 42%, and that in the European Parliament elections was about 20%. Therefore, the voter turnout in different countries and regions is affected by a combination of factors, so we should not just look at the turnout.

Besides, the reform of the electoral system this time, from designing to practical implementation, was under a tight schedule, as the central government had to make a general plan, and the HKSAR needed to implement the plan well. Therefore, all involved parties needed time to adjust to and comprehend the new system. Notably, the electoral procedures and rules of the new system are indeed complex, so it is understandable that some voters are still getting familiar with the system or looking on. The key to the electoral system lies in its inclusiveness and balance. Given that the reform was carried out against the backdrop of the disordered and chaotic HKSAR LegCo, we should fully respect voters as they take time to comprehend the transformation from an old electoral system to a new one. It is normal that some voters are looking on, and some might even be dissatisfied. We should show respect whether they voted or not and whoever they voted for. The common wish of the electorate is an orderly, prosperous, and steady Hong Kong. The voters will reach a consensus on the new electoral system over time. About the voter turnout this time, there are three points we need to make clear and hope you will notice. First, the Hong Kong elections in the past were highly politicalized, so there were more political issues and less issues about people's livelihood. The most significant change and highlight of the elections this time was that the candidates paid much attention to issues about people's livelihood and the economy. Therefore, the electoral culture is changing from an unhealthy one caused by political rifts in the past to one with people's livelihood as its core, which is a gradual process. Second, we noticed disruption from some anti-China forces from the West, including instigators of disorder in Hong Kong. For instance, some of those forces called for no voting, and some so-called poll organizations in Hong Kong disturbed the free choices of voters by polls. One more thing is that the meeting mechanism between Hong Kong's electorate and the candidates is flexible, but due to the pandemic, no more activities were arranged this time. Voter turnout is under the comprehensive influence of various factors, and we should take an objective and comprehensive approach to analyze it.  

Despite different views, the most significant success of the reform is the sound implementation of a good electoral system. Therefore, we should have objective evaluations. Thank you. 

Wang Zhenmin:

I want to add one point. I paid particular attention to the New York City elections last month, the voter turnout of which was 24%. NYC has a population of 8 million, while Hong Kong has a population of 7.5 million. The electorate of NYC is more than that of Hong Kong, but only 1.3 million people voted in the NYC elections, in contrast to the 1.35 million in the Hong Kong elections. Voter turnout is not the critical point. Besides, there is a phenomenon in the US that the voter turnouts of state-, city- and county-level elections are lower than that of the federal elections. However, many public opinion polls suggested that American people may trust local governments more. A survey indicates that voter turnout is like drawing blood, which is intended to examine if the body has problems, but you don't have to draw too much and one tube of blood is enough. The Republican Party and the Democratic Party severely struggle with each other on voter turnout. The Democratic Party wants to make it high, while the Republican Party wants to keep it low, believing if the Democratic Party has a high voter turnout, the Republican Party can never win. So, voter turnout in this case is not an issue truly reflecting democracy but an issue affecting election victory, which is the fundamental concern. Thank you. 

Phoenix TV:

We can see that the white paper covers a very long time span of 180 years from the colonial times to nowadays. Why does the white paper travel such a long time into the past and adopt a historical perspective? Thank you. 

Zhi Zhenfeng:

I will answer this question. The essence of the question is how democracy has been created and developed in Hong Kong. Though a basic fact, the answer has been distorted on purpose for a long time. There is a widespread hearsay or myth that the democracy in Hong Kong was bestowed and initiated by the British. It is truly a hearsay or rumor. To say that the British colonists bestowed democracy on Hong Kong is to fabricate a lie deliberately. Only by exposing the lie can we reveal the real picture from the very beginning. 

One of the important functions of the white paper is to help clarify facts and set the record straight. Over the years, the Hong Kong agitators have colluded with external anti-China forces to manipulate facts. As a result, many people, including some Hong Kong compatriots, have got a vague or even misinformed understanding of the origin and development of democracy in Hong Kong. This allowed anti-China agitators to foment considerable trouble. Over the years, they have confused truth and falsehood, instigated and abetted illegal activities, incited masked rioters to violence and caused social unrest. Again and again, democracy in Hong Kong was held back by them. History is the best textbook. Therefore, the white paper covers a long history in order to clarify historical facts and set the record straight.

The white paper presents basic facts about the origin and development of democracy in Hong Kong. On one hand, it exposes the lies fabricated by the U.S. and the U.K. about Hong Kong's democracy. During more than a century of British colonial rule, the U.K. had constantly undermined, disrupted and obstructed the development of democracy in Hong Kong. Simply put, under British colonial rule, there was no democracy in Hong Kong. As Alexander Grantham, the 22nd governor of Hong Kong appointed by the British government, wrote in his memoir, "In a crown colony the Governor is next to the Almighty." At the end of its colonial rule, the British government rushed through the so-called "electoral reform" in Hong Kong, which violated the Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the Question of Hong Kong (Sino-British Joint Declaration). It also violated the principle of aligning Hong Kong's future political system with the Basic Law, as well as previous agreements and understandings reached between the two sides. Known as the "Three Violations," these were imposed in Hong Kong against the basic rules of democratic development. Instead of bringing democracy to Hong Kong, its ulterior motives for doing so were to pervert the democratic system designed by the Basic Law and turn Hong Kong into a de facto independent or semi-independent political entity against the region's due constitutional status. The vicious intention of the U.K. was to undermine China's full governance over Hong Kong after the country resumed its sovereignty over the region, and extend British political influence after Hong Kong's return to China. In fact, this was part of a British attempt to portray their withdrawal as somehow "honorable" at the end of colonial rule.

On the other hand, the white paper says the CPC and the Chinese government designed, created, safeguarded and advanced Hong Kong's system of democracy. It makes clear where democracy in Hong Kong came from, that is, "the return of Hong Kong to China ushered in a new era for democracy." First, China's state system determined that Hong Kong would establish a system of democracy after its return to China. People's democracy is the life of socialism, a brilliant banner that has always been held high by the CPC, and an ideal that has always been cherished by the CPC and the Chinese people. Hence, Hong Kong would definitely establish a system of democracy after its return to China. Second, the central government has remained committed to the policy of One Country, Two Systems and to the Basic Law of the HKSAR, fully supporting the orderly development of democracy in Hong Kong in accordance with the law. Also, the central government has taken significant steps to advance democracy in Hong Kong, including giving the approval to amend election methods for the Chief Executive and the LegCo, setting a timetable for universal suffrage, drawing up a roadmap for electing the Chief Executive by universal suffrage and so on. In response to the obstruction and disruption by anti-China agitators and those external groups behind them, the central government has taken a series of decisive measures that addressed both the symptoms and root causes of the unrest to restore order to Hong Kong, bringing its democratic progress that underpins One Country, Two Systems back on track.

Therefore, we have reasons to believe that by gradually implementing the principle of Hong Kong patriots governing Hong Kong, combined with continued progress in promoting the new electoral system, Hong Kong's democratic development will steadily advance in accordance with the One Country, Two Systems principle and the realities in Hong Kong. To sum up, the future of Hong Kong's democracy is unlimited and bright. Thank you.

CRNTT: 

The white paper stressed that the system of democracy in Hong Kong should not be a replica of some other model. Rather, a path to democracy with Hong Kong characteristics should be explored under the policy of One Country, Two Systems, and the Basic Law and in keeping with its political, economic, social, cultural and historical conditions. So, what are the strengths of democracy with Hong Kong characteristics? Thank you. 

Wang Zhenmin: 

The revision and improvement of Hong Kong's electoral system have formed a new democratic system with many characteristics, highlights, and strengths, which mainly lie in the following aspects: 

First, it underlines both political security and political inclusiveness. All countries put safety first in their electoral systems. We have seen multiple countries, including the United States, saying that other countries interfered with their elections, and such interference should be opposed. Is there any country that doesn't resist foreign interference? Foreign intervention will deform democracy. Should that occur, democracy will be manipulated and distorted by certain external forces, and people cannot enjoy a democratic life. Why should we exclude anti-China elements who disrupt Hong Kong from participating in democratic life? The reason lies in that what they truly want is not democracy. Therefore, we should fully ensure election and political security, which are the most important. Under the new electoral system, all the candidates are patriotic and love Hong Kong. It is up to those who have built Hong Kong to discuss Hong Kong issues, not those who serve foreign forces to stir up trouble. The new electoral system also highlights political inclusiveness. To ensure security, we don't need to exclude democracy and political inclusiveness but external interference and disruption. Prof. Han has just talked about this point. In his recent speech, Xia Baolong, vice chairman of the National Committee of the Chinese People's Political Consultative Conference, also made an in-depth exposition on political inclusiveness. We only exclude those who are doing bad things and serving external forces. Hong Kong's local politics are diverse, and the political spectrum is vast. Those with ulterior motives were the only ones excluded. Therefore, the candidates and those elected are from various political groups across a broad spectrum. I think this is a very significant feature of the new electoral system. Developing the broadest possible united front under the framework of One Country, Two Systems is also a bright spot. During relevant discussions, it was proposed by many people that foreigners' right to vote be removed. There is no other place in the world like Hong Kong where foreigners can enjoy the right to vote and the right to stand for election with a "green card" (permanent resident status). But no change was made to this stipulation. Isn't this a manifestation of political inclusiveness?

Second, it guarantees democracy and competition. Some misunderstandings hint that the principle of "patriots administering Hong Kong" would stop competition, and candidates could win an easy victory. However, it turned out to be the first time in Hong Kong that an "easy victory" situation was eliminated. Everyone must compete fairly, and there is also full competition among patriots who love Hong Kong, so that Hong Kong people can vote under normal circumstances. The elections in the past were abnormal. Now democratic rights have been taken back from the anti-China politicians seeking to disrupt Hong Kong and returned to Hong Kong people to ensure they have the freedom to choose, truly become the masters, and live a democratic life of their own. Therefore, the competition is no less intense than in the past. All candidates competed on the same platform in the election, campaigning on their policies, experience, capability, patriotism, and love for Hong Kong. In the past elections, those who showed intention to disrupt Hong Kong and China at large would have a larger chance to win. That was abnormal. Patriotism is the prerequisite for elections in any country in the world. For example, in the elections in the United States, candidates who dare to say that they are not patriotic will be out of the race immediately. However, in the past elections in Hong Kong, candidates campaigned on who was more unpatriotic. In comparison, this year's elections are indeed normal elections, focusing on the economy and people's livelihood. This is what Hong Kong people care about. It is the politicians who care about politics. Hong Kong people are busy working every day and what they care about are the daily necessities of life. So, is it rational if the focus is only on solving the politicians' problems rather than on Hong Kong people? Therefore, the competition under the new electoral system is real and a regular competition instead of being political performance and manipulation.

Its third strength lies in its broad representation and balanced participation. Professor Han also talked about this point just now, so I will not elaborate on it anymore. The broad representation is exactly what the former electoral system ignored, such as representatives from grassroots and vulnerable communities. As Hong Kong is a capitalist society, there is no question about giving due regard to the interests of the business community and maintaining the sound development of capitalism in Hong Kong. However, you also have to give due regard and consideration to the groups that have been ignored for too long. This is a shortcoming of the previous electoral system, and we tackled it this time. It is noticeable that the new electoral system pays more attention to the overall and fundamental interests of Hong Kong. In the past, members from Hong Kong Island district councils could not represent Kowloon, nor could members from the legal sector represent the medical sector. They only represented the interests of their specific sectors, instead of the overall interests of Hong Kong. Now, however, we see that the 40 LegCo members returned by the Election Committee represent the overall interests of Hong Kong.

Moreover, the new electoral system has changed the conflicting political culture in the past Western-style democracy. The conflicts between the executive and legislative branches and the internal strife within the LegCo tore the whole of Hong Kong apart. Is that normal? Western-style democracy has come to an end in Hong Kong. It can't go any further. It is what Hong Kong imitated in the past. The elections this time have transformed the situation. There must be checks and balances and coordination between the executive and legislative branches. It can be expected that the new electoral system will bring good governance to Hong Kong with a more effective executive-led system, and significantly improve its governing capabilities. That's all.

Global Times: 

Following the LegCo election in Hong Kong, we noticed that the G7, the EU and the Five Eyes have all expressed their concerns and worries over the democratic development and electoral system in Hong Kong. They alleged that the new electoral system has undermined Hong Kong's high degree of autonomy under the policy of One Country, Two Systems, and that the central government shows no respect to the rights and freedoms of the people of Hong Kong. What's your opinion on this? Thank you.

Wang Zhenmin:

I really have no idea what they are worried about. We make Hong Kong better. Is this what they are worried about? Doesn't everyone in Hong Kong and the mainland expect to make Hong Kong better? This is even what the world expects. People in Hong Kong, the mainland and the world at large all expect Hong Kong to get better. If there are worries over this, I think such worries are unnecessary and driven by ulterior motives.

For a long time, some politicians in the West have believed that there is only one model of democracy in the world, namely, the democracy they are practicing. They cannot allow any other models of democracy. However, as a matter of fact, they practice different models of democracy in the West. Is the democracy in Britain the same as that in the U.S. or in France? They are different. They have their own democratic and electoral systems. Why can't they allow Hong Kong to have its own democratic system? This resonates with what Mr. Deng Xiaoping said in the past, that the old colonial mentality and Western-centric theories are haunting them, reflecting their pride and prejudice.

The democratic development in Hong Kong has its own reality and conditions, and it needs to solve Hong Kong's problems. In judging Hong Kong's democracy, we cannot say it is good when it is similar to or the same as the democracy of some country, or bad when it is different. We should take into account whether Hong Kong's democratic system can solve the problems of the people of Hong Kong and if the system has its own logic and ground. It is itself violating democratic principles for those politicians to promote and impose Western-style democracy against the will of others. Why can't we run our own affairs and make our own decisions? Why do you want to choose a system of democracy for us? We are running our own affairs and do not need carping and irresponsible remarks from others. We are not making decisions for you, and we never interfere with what systems and models of democracy other countries choose.

Professor Han and I both study constitution-related issues. In the past, academia often portrayed Western democracy nicely. But over these years, seeing the reality, more and more people no longer admire or worship it. The West still thinks that they occupy the highland of global democracy, superior to all others, and they can point fingers at the democracy of other countries and regions. But things changed a long time ago. Serious problems have been adequately exposed in their democratic practices. Their system is hypocritical and dangerous, with deep-rooted downside, not perfect at all, which has been exposed in front of the world for a long time. These years, they have been facing severe failure in internal governance, becoming examples of failed democracy rather than examples of thriving democracy. In particular, after the presidential election in the United States last year, we saw the American public occupy Capitol Hill. That was a "Beautiful Sight to Behold." Of course, if similar incidents happen in other places, the United States will offer criticism, saying things are out of order in those places. But when it happened in the United States, they argued that their democracy was perfect. This showed typical "double standards." Such democracy and chaos are witnessed and disdained by people worldwide. But they still peddle it to other countries and regions. These years, we have seen them make all efforts to tout their democracy, and how is the result? We have seen disasters threaten places where their democratic system has been forced. We have seen tragedies, relentless wars, and broken families in those places. They are reflecting on and reforming such democracy themselves, then why do they want to sell it in Hong Kong and other places? It is increasingly clear that their democracy doesn't mean people being the masters of the country. Taking a serious look into it, I don't think they will let the people be the masters of the country, like what the U.S. Constitution says - "We the people…" Because in that way, capitalists will have nowhere to be. Can they let the "one person, one vote" system make the decisions? Not possible. Then who are the masters? The politicians, the capital, and the money. The people, though, are shrouded and beguiled by the noise of democracy. So, we wonder that, after how many U.S. governments will the issues of poverty, wealth gap, and deep-rooted racial discrimination be tackled in the country? In more than 200 years, have these issues been solved? Are things improving or getting worse? Of course, as democracy deepens, these problems should have been better tackled. But they are not solved but worsened, which means something is going wrong with the system. In the democratic systems of such countries, the reality is that politicians hold money in one hand and ballots in the other. Where are the people? Can you see the people? When elections take place, people are God. Politicians beg voters for their ballots. But where are the people when elections finish? No one knows. Is there anyone serving the people? There is a saying that, you cannot see beautiful spring days when your eyes are closed, and people won't be able to see the mud on your legs if you keep standing in the water. Two elections have shown how the new democratic electoral system works in Hong Kong, and I believe future practices will continue to testify to its effectiveness. This is a success of democracy, benefiting local people and improving their wellbeing. There is no more chaos, "black terror," attempts for "mutual destruction," and filibusters. There is no more betraying one's own country for personal gains. And there is no more acting against China and creating disturbances in Hong Kong. The central government and local people have the most significant say in such important issue as the democratic development in Hong Kong. It is not something for foreign politicians to make comments on. We shall firmly follow our political system. Thank you.

Hong Kong Ta Kung Wen Wei Media Group:

What roles will the white paper play in the education of Hong Kong's young people? What new insights can they obtain from the white paper? Thank you. 

Zhi Zhenfeng:

Those are really good questions. If the young people are strong, the country will be strong. Young people are the future of Hong Kong and the country, and the hope of the nation. Only by focusing on facts can we discern right from wrong. The history of Hong Kong's democratic progress is an important part of the history of Hong Kong's return to China. By reading the white paper, the origin and development of Hong Kong's democracy and the One Country, Two Systems policy can be understood, and the truth of history can be restored. This will teach Hong Kong's young people that the CPC and the Chinese government designed, created, safeguarded, and advanced Hong Kong's system of democracy and anti-China, destabilizing elements in Hong Kong are spoilers and saboteurs of Hong Kong democracy. The white paper will help Hong Kong youth gain a full understanding of the relationship between One Country and Two Systems and develop their accurate understanding of history so as to strengthen the education work concerning patriotism and national conditions. 

The white paper should be the antidote to fallacies. If you have a 13-year-old daughter, will you allow her to take to the streets to join demonstrations with those rioters who set fire, rampantly smash facilities, and commit robbery and physical assault? Do you agree with those so-called demonstrations? Will you feel relieved if your child is associated with those people? Meanwhile, since Hong Kong's return to China, anti-China, destabilizing forces in Hong Kong continue to promote the so-called "Umbrella Movement protests" and the 2019 turmoil. We can hardly imagine that those who promoted these ideas will love Hong Kong and uphold true democracy. It is impossible. Anti-China, destabilizing forces propagate terrorism in the guise of democracy, distort the real meaning of democracy and freedom, and poison young people's values to make them become victims of secessionist sentiment, black violence, and mutual destruction. So we must use the white paper as the antidote to clarify facts. 

In this context, the white paper should be a "textbook" for Hong Kong's young people. The white paper has sowed the seeds of the correct views of history and democracy in Hong Kong. As the masters of the country and Hong Kong, Hong Kong's young people will become more reasonable, increase in confidence, advocate morals, and proceed with determination by studying the white paper. The Hong Kong society can combine the contents of the white paper with national security education and national education in schools, compile textbooks, adolescence literature, and teacher's training programs based on the contents of the white paper. It can also work with local social organizations to carry out knowledge competitions to enhance the enthusiasm of young people to study the white paper. 

I think that Hong Kong's education, journalism, and literature and art sectors, especially those providing culture and entertainment products to young people, should all take action to help Hong Kong people, including the youth, to correctly understand the relationship between the One Country, Two Systems policy and Hong Kong's democracy, and create positive, healthy, quality works to realize the healthy development of democracy in Hong Kong and advance the democracy process in Hong Kong. Thank you. 

Han Dayuan:

I want to add something. As a university teacher, I am very concerned about the participation of young people in Hong Kong in this election system. As Professor Zhi said just now, I think the future of Hong Kong is closely related to every young person in Hong Kong. Therefore, it is crucial for the young generation in Hong Kong to care about the development of their country and the development of Hong Kong, including the political development. Young people are most concerned with housing, employment, and career growth opportunities. Therefore, to help them develop and grow, both the central government and the SAR government have provided a lot of policy support, including the Guangdong-Hong Kong-Macao Greater Bay Area development plan. As a university teacher, I maintain frequent contact with young people. As far as I know, the number of young people in Hong Kong who have visited the mainland is much less than I thought. I hope that relevant departments can take adequate measures to encourage more young people to come to the mainland themselves. I believe that coming out in person to see what the mainland is really like will make a difference. 

Western countries use democracy and human rights as a pretext for criticizing China. I hope that our young people in Hong Kong can think independently. Is what some Hong Kong scholars call human rights and democracy natural? Do we need to reflect on the concept of democracy defined by Western countries? Many opinions have been distorted. In the past two years since the COVID-19 outbreak, people worldwide have been reflecting on what true democracy is. China's democracy practice recorded in a white paper titled "China: Democracy That Works" exemplifies the respect for democracy, a typical value of humanity, and distinctive Chinese characteristics. Created by the CPC and the Chinese people, China's democracy is in accord with its national conditions and realities. Protecting human rights is the most essential and fundamental principle of democracy, and putting people's lives, health, and safety first is of the highest value when safeguarding human rights. In the face of the pandemic, we must view objectively which country and political party truly regards people's lives, health, and safety as the highest value, and saves every life at all costs. On the contrary, the country that convened the so-called "democracy summit" has already reached over 800,000 coronavirus-related deaths, exceeding its death toll during World War II. A country that talks about democracy and human rights should have the ability to protect the life and health of its citizens. Therefore, the democratic practices, including the One Country, Two Systems policy of China, a country led by the CPC and home to one-fifth of the world's population, can serve as an experience for global democracy and human rights progress. I hope that everyone, especially the young people in Hong Kong, can think about democracy and human rights independently and care about and follow the democratic development of the country. The country's democracy and human rights development will give new connotations to the One Country, Two Systems policy. On that front, we should be full of confidence and expectation. Thank you.

Wang Zhenmin:

During the 2019 turmoil in Hong Kong, I once said at a conference that we are all concerned about our children eating unhealthy food, but few parents care about our children learning wrong knowledge. We have seen what Hong Kong children have learned in the past few years. They learned about the distorted history of Hong Kong's democracy, full of lies and rumors. The white paper provides an authentic textbook on Hong Kong's history and democracy, worthy of careful study by Hong Kong young people. It is crucial to understand the true history of one's own country. If there is something wrong with the stomach, taking some medicine will do, but what if the false idea poisons the minds? It would be difficult to find the cure. The education of Hong Kong's youth matters. Nevertheless, we are full of confidence in Hong Kong's democracy and the future of Hong Kong. I firmly believe that the prospects are bright for democracy in Hong Kong, just as the white paper said. Thank you.

Shou Xiaoli:

Thank you, experts and friends from the media. Today's briefing is concluded. Goodbye, everyone.

Translated and edited by Huang Shan, Wang Yanfang, Xu Xiaoxuan, Zhang Junmian, Mi Xingang, Wang Yiming, Zhang Rui, Li Huiru, Zhang Jiaqi, Wang Wei, Li Xiao, Liu Sitong, Chen Xia, Zhou Jing, He Shan, Ma Yujia, Liu Qiang, Yang Xi, Wang Qian, Zhang Liying, Yuan Fang, Liu Jianing, Duan Yaying, David Ball, Jay Birbeck, Drew Pittock and Tom Arnstein. 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:

Han Zirong, vice president and secretary general of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG)

Huang Chun, deputy director general of the Pandemic Prevention and Control Office of the BOCOG 

Li Ang, deputy director general and spokesperson of the Beijing Municipal Health Commission

Chairperson:

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

Date:

Dec. 23, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The second edition of the Beijing 2022 Playbooks outlining COVID-19 countermeasures were released recently. To help you better understand related information, we are delighted to be joined today by Ms. Han Zirong, vice president and secretary general of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG); Mr. Huang Chun, deputy director-general of the Pandemic Prevention and Control Office of the BOCOG; and Mr. Li Ang, deputy director general and spokesperson of the Beijing Municipal Health Commission. They will brief you on pandemic prevention policies and relevant preparations for the Beijing 2022 Olympic and Paralympic Winter Games. First, I'll give the floor to Ms. Han Zirong.

Han Zirong:

Friends from the media, good morning. On Dec. 13, the BOCOG, the International Olympic Committee (IOC), and the International Paralympic Committee (IPC) jointly released the second edition of the Beijing 2022 Playbooks, which provide epidemic prevention guidelines for all stakeholders to participate in the Beijing Winter Olympics and Paralympics.

Now, I would like to give you a brief introduction from three aspects: the background and process of compiling the playbooks and basic principles of epidemic prevention.

I. Background of compiling the playbooks

Against the backdrop of COVID-19, the Beijing Winter Olympics and Paralympics are facing tremendous pressure and challenges:

First, the Chinese government has always put people's lives first and implemented a dynamic zero-COVID-19 approach in line with the overall prevention and control strategy of preventing case import and domestic resurgence, which has effectively guaranteed the sustained and stable economic and social development of China and the health and safety of the people. Therefore, the Beijing Winter Olympics and Paralympics must strictly implement the Chinese government's epidemic prevention principles and requirements and keep the bottom line of epidemic prevention and control in society.

Second, the COVID-19 pandemic, especially the spread of Omicron and other variants, has brought great uncertainty to the global COVID-19 situation. During the Games, many Olympic-related people from different countries and regions will come to China, increasing the number of people gathered. Therefore, many positive cases will be highly likely to happen.

In that context, we, together with the IOC and the IPC, have compiled and released the playbooks. The epidemic prevention content in the playbooks should first meet the needs of the Games and reflect the Games-centered, athletes-centered approach to ensure the regular operation of the Games. At the same time, it must comply with China's epidemic prevention and control principles. We hope that all stakeholders can strictly implement the epidemic prevention protocols, jointly respond to COVID-19 challenges, and make joint efforts to ensure the safety of all participants and the host cities and make the Games safe and smooth.

II. Process of compiling the playbooks

The process of compiling the playbooks can be divided into three phases.

First, the BOCOG worked independently on the preparation phase. In the first half of this year, we started the compilation of the playbooks. To present a streamlined, safe, and splendid Games on schedule, we set the six principles. They are a streamlined Games, vaccination, closed-loop management, effective emergency response, a combination of prevention and control, and a holistic and balanced approach. After several rounds of soliciting opinions in mid-September, six playbooks for six categories of stakeholders were completed and submitted to the IOC for review.

Second, we compiled the first edition of the playbooks with the IOC. In early October, we had three video communication meetings with the IOC and established the timeline and framework of the compilation. We agreed to condense the six playbooks into two, one for athletes and team officials, and another for other stakeholders, and set the essential principles of strengthening vaccination, pre-departure COVID-19 prevention measures, closed-loop management, and nucleic acid tests and emergency response. Nine rounds of consultations were held intensively to discuss the text item by item, and the consensus was reached before we jointly released them on Oct. 25. After releasing the first edition of the playbooks, we held nine briefings for all stakeholders, who generally expressed their understanding and recognition. In the recent international test events, we strictly followed the epidemic prevention standards and requirements that would be adopted for the actual games, through which the playbooks and the measures have proven effective.

Third, we compiled the second edition of the playbooks with the IOC. Since Nov. 5, we have held 14 consultation and review meetings with the IOC on the revision of the playbooks. While keeping the basic framework of the first edition, we have absorbed the opinions and suggestions of various stakeholders and taken into account issues discovered in the test events, and revised specific measures and related details concerning pre-games epidemic prevention, review of the previously infected, nucleic acid testing processes, list of permitted destinations for stakeholders, and isolation facility standards for the asymptomatic to make the playbooks more feasible. Finally, on Dec. 13, the second edition of the playbooks were officially released, followed by six briefings to respond to the specific concerns of various stakeholders.

III. Basic principles of the playbooks

The playbooks set out six principles:

First, vaccination. Vaccination is a crucial means to reduce the risk of infection and transmission and ensure the safety of the events. Except for athletes and team officials who are exempt due to medical reasons, all Olympic-related personnel must complete full vaccination at least 14 days before coming to China to be exempted from quarantine at the designated facility and enter the closed loop. Furthermore, given the complexity of the current COVID-19 situation worldwide, we especially recommend that all Olympic-related personnel receive booster shots against COVID-19.

Second, closed-loop management shall be applied. It is a special management system. Within the closed loop, all the people arriving in China for the Games, and domestic staff working for them directly are subject to daily health monitoring and nucleic acid tests, and need to stay in the hotels or the Olympic villages within the closed loop. They will be only allowed to take dedicated Olympic vehicles for moving between designated venues and places within the closed loop, and not allowed to meet people outside the closed loop, let alone the general public.

Third, a COVID-19 Liaison Officer (CLO) mechanism shall be established. All international organizations arriving in China for the Beijing 2022 Olympic and Paralympic Winter Games must appoint CLOs to keep close contact with their members, ensure that they understand the contents of the playbooks, assist in their preparations before arriving in China, and carry out relevant coordination work, including epidemic emergency responses.

Fourth, tests, tracing, and quarantine shall be conducted. During the Beijing 2022 Olympic and Paralympic Winter Games, all people within the closed loop shall take nucleic acid tests every day. Those who test positive and test positive again after retesting must be quarantined and receive treatment. In accordance with the standards of epidemiological survey and close contact determination stipulated in the playbooks, we will learn about where the infected individual has been, so as to locate close contacts as soon as possible and take decisive measures to cut the chain of transmission.

Fifth, contact between people shall be reduced. In crowded spaces with poor ventilation, there is a greater risk of being infected with the novel coronavirus from close contacts. The playbooks stipulate that social activities should be minimized, masks should be worn at all times, and long-time stays, gatherings and close contact should be avoided in confined spaces.

Sixth, hygiene awareness shall be raised. All Olympic participants should wear N95/KN95/FFP2 masks without breathing valves or surgical masks of the equivalent standards during their stay in China. We must wash hands and disinfect frequently, and use soap-free sanitizer whenever possible. We encourage handclapping to encourage the athletes, rather than singing and shouting. We recommend trying to avoid the use of shared items, or sterilizing them before use. Rooms should be ventilated regularly to maintain good airflow.

Friends from the media, the Winter Olympics are just around the corner. To prevent and control the epidemic and ensure the safety of Winter Olympic events and participants, we will continue to do the following work: First, we will intensify publicity and training. We will invite the IOC, IPC, and Olympic committees of countries (regions) to offer training and interpretation of the playbooks to their CLOs and personnel arriving in China for the Games. We will also train the Olympic-related staff in host cities so that they know well the epidemic rules in the playbooks and follow these rules consciously and strictly. Second, we will improve our working mechanisms. We will set up a consultation mechanism between Chinese and foreign medical and epidemic prevention experts, improve the CLO communication and coordination mechanism, and enhance the mechanism of emergency response coordination in and out of the closed loop to ensure that all epidemic prevention measures are fully implemented. Third, we will strengthen coordination of the work in and out of the closed loop. Based on the epidemic prevention and control system of the host cities, the work in and out of the closed loop will be integrated to form synergy and establish a work pattern integrating commands and operations so as to ensure safety of the Games.

Friends, there are only 43 days to go before the opening of the Games. All the preparations are ready. We hope all the participants can understand the importance of the epidemic prevention and control measures in the playbooks and strictly abide by them. With the strong support of the Chinese people and the international community, we have the confidence and determination to stage a streamlined, safe and splendid Olympic Games for the world.

Finally, I would like to welcome friends from the media to continue to focus on, support, and participate in the preparations for the Beijing Winter Olympics and Paralympics. Thank you!

Shou Xiaoli:

Thank you, Ms. Han, for your introduction. Now the floor is open for questions. Please identify the news outlet you work for before raising questions.

CCTV:

My question is about the recently published second edition of the Beijing 2022 Playbooks. What's the difference between the two editions? What rules have been updated? Will new epidemic prevention measures be issued before and during the Games?

Han Zirong:

Thank you for your questions. I think many friends from the media are interested in this subject because the first and second editions of the playbooks were published in quick succession. What are their differences? Let me give you a brief answer.

The second edition is generally consistent with the first one in basic principles, framework, and specific measures. We mainly did revisions and improvements on specific measures in three aspects. First, we have added some anti-pandemic measures, such as anti-pandemic requirements for Chinese participants, key information on the epidemiological survey, and spectating policies for athletes. These are the newly added measures. Second, we have provided more detailed anti-pandemic requirements. For example, we have specified policies for athletes identified as close contacts of confirmed cases before the Games, retesting work for people who tested positive, and the work process of testing agencies abroad. Additionally, the second edition details the review processes for vaccine exemption and people with a history of infection, as well as the flight booking process, which has been a major concern to all stakeholders. We have also made detailed requirements for the service standards of accommodation and transportation. Third, we have updated relevant information, such as the time for nucleic acid testing, the ways of sampling, and the list of destinations allowed for all stakeholders, which is highly relevant to foreign participants. We have listed all the destinations allowed in the second edition. As for the question whether additional measures will be put in place before and during the Games, it fully depends on the changes of the epidemic situation in and outside China, especially the infectiousness and perniciousness of the Omicron variant. We will follow up on the epidemic situation closely, respect the professional opinions of medical experts, and maintain close contact with the IOC and the IPC, in order to make dynamic adjustments to anti-pandemic measures. Only by upholding flexibility can we properly address the risks and challenges brought by Covid-19. That's all from me.

Beijing TV:

According to the second edition of the playbooks, what are the requirements and management measures for the entry and exit of the Games participants? How to conduct closed-loop management between competition zones? What health monitoring measures will be taken upon the participants' arrival in Beijing? How to ensure the accessibility and timeliness of nucleic acid testing? Thank you.

Han Zirong:

Thank you for your questions. All of these questions are very specific and concern all stakeholders. Mr. Huang will answer them.

Huang Chun:

Thank you for your questions. Actually, these questions comprise four aspects: remote control and prevention, closed-loop management, health monitoring, and nucleic acid testing.

In terms of remote control and prevention for inbound personnel, first, they need to download the "My 2022" app at least 14 days before their departure for China. There is a health monitoring system in the app, and they need to report their monitoring results on it every day. Second, they need to be fully vaccinated 14 days before coming to China. Third, they need to conduct two nucleic acid tests within 96 hours before the departure of their flights. Fourth, for those who were infected before coming to China, they need to conduct two additional nucleic acid tests besides the two regular tests. They also need to submit related review documents to the BOCOG at least eight working days before departure. Fifth, we will conduct throat swab tests and nasal swab tests for all inbound personnel at customs at the airport. Sixth, we will provide negative certificates of nucleic acid tests within 24 hours of departure for outbound personnel to help them head back to their destination countries. Generally speaking, we have made strict measures from remote control and prevention to outbound process.

Regarding closed-loop management, Ms. Han just stressed its importance. It is also a key measure in the playbooks and in the whole Winter Olympic Games. The playbooks have elaborated the requirements for closed-loop management. For all inbound personnel, they need to follow the closed-loop management policy during their entire stay in China. During this period, we will provide shuttle services between hotels and competition venues and other working sites. All activities have to be conducted within the closed loop. No personnel shall leave the loop, let alone reach areas outside the loop in the city – this is our bottom line. Therefore, for all personnel under the closed-loop management, they need to strictly follow personal protection measures and the requirements in the playbooks. This is also a key measure for us to ensure the safety and smooth operation of the Games and the safety of all participants.

As for the health monitoring we just mentioned, it will not only be conducted during the Games on a daily basis, but also be implemented 14 days before all Games participants' departure for China. All personnel should take the initiative to monitor their health situation and upload the results to the relevant system. I believe that we are very familiar with health monitoring. They need to conduct body temperature checks at least twice a day, get symptoms such as cough and sore throat checked out, and take suitable precautions for individual protection. That's all for the health monitoring.

The IOC and all stakeholders are very concerned about the convenience and timeliness of nucleic acid testing. Nucleic acid testing is a very important measure to prevent and control the epidemic. We will conduct nucleic acid tests for people in the closed loop every day. Such high-frequency tests constitute a potent measure that can ensure positive cases are found promptly and that the transmission chain is broken. We have also considered the sampling time of the athletes and other stakeholders, and made meticulous arrangements to ensure sampling will not affect the running of the Games. Sampling points have been set up in the Olympic Village, contracted hotels, centralized sites, and other venues. The sampling time is quite flexible, with the services available from 6 a.m. to 11 p.m. each day. The athletes can go for tests based on their competition schedule without any appointments. The result of the sampling taken between 6 a.m. and 12 a.m. will come out before 8 p.m., and those between noon and 11 p.m. will come out before 6 a.m. the next day. Some people have asked if negative test results can be given on a daily basis. It is clarified in the handbooks that only those with positive results will be informed.  

Thank you!

Red Star News:

All athletes are encouraged to get vaccinated according to the competition standards of the second editions of the Playbooks. Are booster shots also needed for athletes? In addition, how to better manage those people who are exempted from vaccination because of medical reasons? Thank you.

Huang Chun:  

Thank you for your question. As you all know, COVID-19 vaccinations are being carried out across the world. Vaccination has been proven to be an effective measure to prevent COVID-19 infection and reduce transmission risks, as well as a key step to run the events safely. Therefore, the handbooks stipulate that, except for some athletes and team officials who are medically exempt from vaccination for specific reasons, we require all other stakeholders to get vaccinated to avoid 21 days of quarantine after their entry into China. As for the booster shot you mentioned, we have built a consensus with the IOC after extensive communication. Given the uncertainties of the global pandemic and the spread of the new Omicron variant worldwide, we strongly recommend that all athletes and other stakeholders get a booster shot before coming to China. Many countries have made positive responses and administered booster shots to their athletes. We have formulated strict medical exemption standards, which are explained in the Playbooks, with the IOC, the IPC, and some relevant experts, meaning that not every exemption application for personal reasons in any case can be approved. The exemption standards are only limited to a small minority of athletes and team officials. We believe that athletes, who cherish their sports careers and the opportunity to participate in the Winter Olympics every four years, will strictly and consciously implement the relevant requirements in the handbooks to better protect themselves and others, and ensure the safe and smooth running of the Games. That's all. Thank you.  

Cover News:

At present, the "Meeting in Beijing" test events are coming to an end. The epidemic prevention work of the test events has been carried out in accordance with the competition requirements of the Beijing Winter Olympic Games. I would like to ask what was the outcome of the epidemic prevention measures and what is the feedback from all parties? Thank you.

Han Zirong:

Thank you for your question, which is a really good one. As you all know, as of October 5, BOCOG has been conducting a series of international test events. In terms of epidemic prevention and control, we have adopted measures that include remote prevention and control, closed-loop management, daily nucleic acid testing and health monitoring, and stringent implementation of relevant competition standards and requirements. During the test events, positive COVID-19 cases did occur among athletes before they boarded and they didn't board their flights to China according to the requirements outlined in the handbooks. Positive cases also emerged at the airport customs upon entry and among close contacts after entry. In accordance with relevant requirements, the individuals were quarantined in designated facilities and treated in designated hospitals, respectively, according to whether they had symptoms or not.  

In line the requirements of the handbooks, we allowed close contacts to attend the training and competitions normally under the condition of strict protection. Some contacts even played to the best of their ability in the contests and won gold medals, with which the athletes were rather satisfied. Given these examples, it is fair to say that the first edition of the Epidemic Prevention Handbooks has indeed stood the practical test of the test events.  

With the support of all parties, both the test events and the epidemic prevention and control work at all venues and sites during the events went smoothly, demonstrating that the first versions of the handbooks have stood the test and got recognition. Despite the positive cases, they were handled quickly and effectively, breaking the spread of the epidemic. It is fair to say that the relevant epidemic prevention and control policies have been well received in general, and recognized and spoken highly of by the vast majority of athletes, team officials, and foreign media friends.  

That's all for my answer.

South China Morning Post:

If infected cases are reported in the venues, how can the infections be prevented from spreading in Beijing and other cities? Thank you.

Huang Chun:

As we all know, the Beijing 2022 Winter Olympics will be held amid the pandemic. The emergence of virus carriers or small clusters of confirmed cases is likely to happen. During the event, a large number of inbound and outbound visitors will gather here, so the risk of transmission is very high. We have formulated emergency response plans for any contingency. If positive cases appear, we will take the following measures. Individuals who remain symptomless will be quarantined in facilities set up in the three competition zones, which is different from common practice in cities where the positive cases are sent to hospitals. Individuals who display symptoms will be transferred to designated hospitals, such as Ditan Hospital in Beijing and the No. 1 People's Hospital in Zhangjiakou, both of which have rich experience in the treatment of infectious diseases. Athletes who test positive will definitely not be allowed to compete. They will be discharged from isolation in accordance with the discharge guidelines. Those who test positive but are asymptomatic will be tested every day, beginning 24 hours after the last test and then discharged after they provide two consecutive negative COVID-19 test results with at least 24 hours between the two samples and no other COVID-19 symptoms. They can return to their Games-time roles after recovery according to their conditions and the requirements of the competition. They will also be asked to adopt additional countermeasures. Those displaying symptoms in Ditan Hospital and other hospitals will only be discharged if the following conditions are met: their temperature returns to normal for three consecutive days; respiratory symptoms improve significantly; lung imaging shows significant improvement; and there are two consecutive negative COVID-19 tests with a sample interval of at least 24 hours. They also can return to their Games-time roles after recovery.

If a person tests positive for COVID-19, then they will undoubtedly have close contacts. We formulate close contact criteria during flights and competition in accordance with international standards such as those laid out by the WHO. In China's communities, close contacts will be quarantined in designated hotels for 21 days, however, at the Winter Olympics we will carry out a closed-loop management system. In a large loop, rather than doing daily testing once, a close contact should instead receive two tests, and live and eat separately. More specifically, we will arrange dedicated vehicles for close contacts to move freely between their locations of quarantine and the venues. If results are negative, then they can take part in the competition and continue working under certain conditions.

We as well as the general public place a lot of focus on the impact to society at large. Preventing infections within the closed-loop from spreading to communities in cities as much as possible is a red line, especially when faced with the severe acute Omicron variant. We will strictly apply the closed-loop management policy and requirements of daily testing to prevent the virus from spreading further. 

CGTN:

The U.S.-based National Hockey League (NHL) announced yesterday that their players will not be participating in the Beijing 2022 Winter Olympics because of the pandemic. I want to ask if China will make any adjustments to its anti-pandemic policies, so as to make it more convenient for foreign athletes to take part in the competition. 

Huang Chun:

Thank you. I also read of the news yesterday and am keeping an eye on it. As you just said, they cannot participate in the Olympics this year because of the pandemic and we are sorry about that.

The epidemic prevention and control policy for the event was jointly formulated by the IOC, IPC and BOCOG. We issued two editions of the Beijing 2022 playbooks on Oct. 25 and Dec. 13, respectively. The measures in the playbooks have been made in accordance with the latest scientific achievements and opinions of experts and in reference to the experiences of other international events. In particular, we have adopted such measures in the recent 13 test events and training weeks from October to December. The overall effect was obvious and recognized by all stakeholders. We believe that these measures can reduce the risk of transmission, safeguard the health of all participants and the people of China, and ensure the safe and smooth running of the Winter Games. Thank you.

Xinhua News Agency:

The Beijing 2022 Olympic and Paralympic Winter Games will involve three competition zones and 19 venues spread out over various locations. My question is, how will you guarantee medical treatment? Thank you.

Li Ang:

Thank you for your question. As we all know, medical treatment is a key part of the service guarantee for the Games. In accordance with the requirements outlined in the Beijing 2022 Playbooks and the FIS Medical Guideline, Beijing will follow a designated, secure and effective approach to implement its supporting services, so as to host a streamlined, safe and splendid Olympic Games. We have focused on the following four aspects:

First, we have improved resource allocation of medical treatment. We have set up three kinds of medical stations throughout the competition venue: fixed medical stations, competition field medical stations, and medical stations for spectators. There are 88 medical stations in total at competition areas in Beijing, which will provide on-site medical treatment and triage and transfer sick and injured people. A total of 1,140 key medical personnel from 17 designated hospitals and two pre-hospital first-aid institutions have been assembled to serve as medical support personnel for the venue, with a backup of 457 hospital-level experts. In addition, 120 medical personnel from 12 tertiary hospitals were selected to form a municipal-level backup, equipped with 74 ambulances near the stadiums, 54 of which are negative pressure ambulances. In accordance with epidemic prevention and control requirements during the Winter Olympics, the BOCOG classified Olympics-related patients into five categories: confirmed and suspected COVID-19 patients, patients with fever in the closed loop, other patients in the closed loop, patients with fever outside the closed loop, and other patients outside the closed loop. We have adjusted and optimized treatment in different designated hospitals. Eighteen designated hospitals will treat patients in specific categories to avoid overlapping routes of patients with different risks. After the competition starts, 1,188 medical staff and 840 hospital experts will be dispatched from designated hospitals to provide timely and efficient medical services. Meanwhile, 60 municipal-level experts and 10 academicians will provide high-level technical support. As you can see, we have made full preparations in terms of manpower.

Second, according to stadium conditions and hospital characteristics, we have developed differential and targeted schemes for medical security. Medical staff, including orthopedics, stomatology, and other disciplines, will treat patients injured in different sports. For example, the ice hockey stadium is equipped with CT, dental chairs, and other relative equipment. We have carried out targeted first-aid exercises for different venues. In order to give full play to the advantages of professional disciplines, designated hospitals developed targeted medical security schemes to improve medical treatment capabilities. Yanqing Hospital of Peking University Third Hospital has transformed a 12,000-square-meter independent inpatient building into the Winter Olympics Medical Center, equipped with 72 beds, CT and MRI equipment, operating rooms, nucleic acid sampling booths, and a fever clinic. Beijing Anzhen Hospital set up a special area for the Olympics-related patients. Peking University People's Hospital, Beijing Chaoyang Hospital, and Bejing Shijitan Hospital have adjusted their hospital layout, set up special wards, been equipped with special CT and MRI equipment, and established negative pressure hybrid operating rooms, which will provide a strong guarantee for suitable medical treatment during the Winter Olympics.

Third, we have accelerated the construction of polyclinics in Winter Olympic villages. A 1,500-square-meter polyclinic in Beijing Winter Olympic Village and a 1,658-square-meter polyclinic in Yanqing Winter Olympic Village have been built, including 18 disciplines such as emergency treatment, physiotherapy and rehabilitation, imaging, TCM, and dentistry, which will meet the needs of basic outpatient service for 16 hours a day and emergency treatment for 24 hours after the competitions begin. At present, medical equipment testing of the polyclinic in Beijing Winter Olympic Village has been completed, and the medical equipment of CT, MRI, and DR Fangcang of the polyclinic in Yanqing Winter Olympic Village have been debugged in place, which will ensure orderly medical treatment, including outpatient service, emergency treatment, and rehabilitation transfer during the competition.

Forth, we have strengthened training, exercises, and blood supplies. Based on the principle of full training and internal-external integration, we have increased training of medical personnel in the knowledge of Winter Olympics, English, and skiing skills. Forty ski doctors have reached the international rescue level, and 1,900 medical support staff have acquired basic first-aid capability. Beijing Red Cross Blood Center has established a special blood allocation mechanism during the competition, with reserves of Rh-negative blood maintaining at 1,800 to 2,000 units.

In a word, Beijing will coordinate its medical resources to guarantee medical treatment for the Winter Olympics and Winter Paralympics, and provide high-quality and efficient medical treatment for athletes and friends from all over the world. Thank you.

Han Zirong:

We can see from Mr. Li's introduction that medical services for the Winter Olympics and Winter Paralympics are ready. Due to the characteristics of Winter Olympics and winter sports, the probability of injury is high for both athletes and staff. Medical rescue in international competitions has strict operating procedures. In the case of emergency rescue, there may be queries about why a rescue was slow. In fact, during the competition, medical assistance has to follow procedures in light of international standards. For example, when an athlete falls, team doctors have to decide whether the athlete should be transferred for further treatment or receive on-site treatment. Emergency personnel can only transfer the athlete after team doctors have finished their on-site judgment. Especially in the case of injuries, the first thing we have to do is stop the game so as to prevent secondary injuries. We hope that friends from the media can pay more attention to the medical rescue procedures of such international competitions. Our medical rescue teams will certainly carry out emergency treatments in accordance with the rules and procedures of international competitions to guarantee suitable medical treatment at the Winter Olympics.

Kyodo News Agency:

I would like to inquire about the spectators. Which venues and sports events do the BOCOG plan to allow spectators to attend? What is the spectator limit? When will ticket sales start? What are the requirements of the COVID-19 countermeasures for the spectators? Thank you.

Han Zirong:

You have raised questions of common concern. In view of the complex situation of the global COVID-19 pandemic, in order to prevent the possible spread of the virus and ensure the safety of all participants, we have already announced that tickets will be sold exclusively to spectators residing in China's mainland.

Regarding the ticket policies, COVID-19 prevention requirements, and other related information for domestic spectators, we are still making plans and will release them to the public in due course. Please refer to the information published through our official channels. We will keep close communication with the IOC and issue relevant ticket policies and COVID-19 countermeasures for domestic spectators regarding the COVID-19 situation. We hope that everyone obtains information through official channels. That's all for my answer for now.

Southern Metropolis Daily:

How would you cope with the situation if a positive case is found during the Games? How would you minimize the impact on related personnel? Thank you.

Huang Chun:

Just now, a reporter asked a similar question, which I've already introduced. I will briefly answer it again.

During the Games, there is a probability of infections or a small-scale cluster outbreak happening in the closed loop. But we have already made a plan to deal with such a situation and the plan worked during the previous testing competitions. I've already introduced the symptoms of the infected, whether he or she has symptoms or not, where to isolate and treat the infected, and the criteria for ending isolation or quarantine and hospital discharge if a positive case were to be found. Regarding whether it would affect the schedule of the Games, generally speaking, we would not adjust the event unless a large outbreak occurs. Certainly, in this regard, we will keep close communication with the IOC and the IPC and make joint judgments on whether to suspend the Games or adjust the schedule and other arrangements. 

I've also introduced the criteria for close contact and relevant management requirements. The competitions of the close contacts would not be affected if they strictly implement the overall prevention and control principles and measures. But there is a prerequisite: the athletes must provide proof of negative test results within six hours before they take part in the competition. In addition, for other Olympic-related personnel except for the athletes, if his or her job and tasks can be replaced by others, he or she should implement the quarantine policy of the city.

Given the probability of infections, we hope that every participant should strictly observe the closed-loop epidemic prevention measures. Only in this way can the Games be held and run smoothly.

Thank you!

Shou Xiaoli:

Due to time constraints, the last question, please. 

CRNTT:

We have noticed that the Version 2 of the Beijing 2022 Playbooks say that the first point of entry into the Chinese mainland must be Beijing Capital International Airport. Why? We know that there is often a high flow of passengers at the capital airport. Will the travel of ordinary passengers be affected? How will participants get to the closed-loop hotel from the airport? Thank you.

Huang Chun:

Thank you for raising a question of great concern – will cross-infection happen at the airport among the ordinary passengers since a large number of inbound participants will arrive at China without immediate quarantine?

As the largest airport in China, Beijing Capital International Airport boasts a high passenger-carrying capacity. Since the COVID-19 outbreak, we have seen that the airport has accumulated rich experience in epidemic prevention and control. Generally, the first point of entry to Beijing is the Beijing Capital International Airport. It has competent staff who are experienced in epidemic prevention and control, proper facilities and layout, and standardized working mechanisms and workflow. In addition, the airport has set up specific parking spaces, special areas for personnel, and special passages and lines of flow for the Olympics. What's more, the Beijing Capital International Airport is relatively close to the three competition zones and the expressway, which ensures excellent transport for the inbound athletes and attendees. The public can rest assured because they are outside the closed loop. We can guarantee that. During the entire process, a closed-loop system is enforced, from athletes and attendees' entering China and leaving the airport, their transportation to the Olympic and Paralympic Villages and hotels by specific vehicles, and to their leaving of the venues after the competitions to the airport where specific areas will be set up to deal with the relevant formalities. All Olympic-relevant personal will use dedicated Games transport during the whole process. Given the closed loop, the public will be separate from the Olympic-relevant personal. With all this being said, the Beijing Capital International Airport is an ideal first point of entry. It is a correct choice. Thank you. 

Shou Xiaoli:

Thank you, Ms. Han. Thank you, all the speakers and friends from the press. Thank you for your attention. Today's press conference is hereby concluded. 

Translated and edited by Zhang Jiaqi, Wang Qian, Duan Yaying, Zhang Junmian, Qin Qi, Chen Xia, Xu Xiaoxuan, Yang Xi, Ma Yujia, Li Huiru, Lin Liyao, Liu Qiang, Wang Yiming, Wang Yanfang, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC) and minister of the State Council Information Office (SCIO)

Xu Yousheng, deputy director of the United Front Work Department of the CPC Central Committee

Tian Peiyan, deputy director of the Policy Research Office of the CPC Central Committee

Guo Zhenhua, deputy secretary general of the Standing Committee of the National People's Congress (NPC)

Hu Henglu, head of the Research Department of the General Office of the National Committee of the Chinese People's Political Consultative Conference (CPPCC)

Wang Aiwen, vice minister of civil affairs

Chairperson:

Chen Wenjun, director general of the Press Bureau of the SCIO and spokesperson of the SCIO

Date:

Dec. 4, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. The State Council Information Office (SCIO) is holding a press conference today to issue and introduce a white paper titled "China: Democracy That Works," and then take your questions. Present at today's press conference are Mr. Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC) and minister of the SCIO; Mr. Xu Yousheng, deputy director of the United Front Work Department of the CPC Central Committee; Mr. Tian Peiyan, deputy director of the Policy Research Office of the CPC Central Committee; Mr. Guo Zhenhua, deputy secretary general of the Standing Committee of the National People's Congress (NPC); Mr. Hu Henglu, head of the Research Department of the General Office of the National Committee of the Chinese People's Political Consultative Conference (CPPCC); and Mr. Wang Aiwen, vice minister of civil affairs.

Next, I will give the floor to Mr. Xu Lin.

Xu Lin:

Ladies and gentlemen, friends from the media, good morning.

Democracy is a common value of humanity and an ideal that has always been cherished by the CPC and the Chinese people.

This year marks the centenary of the CPC. Over the past hundred years, the Party has upheld people's democracy and led the people in realizing their status as masters of the country. The Chinese people now truly hold in their hands their own future and that of society and the country.

Since the Party's 18th National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has developed whole-process people's democracy as a key concept and strived to implement it, further translating democratic values into science-based and effective institutions and concrete actions. The viability and strength of whole-process people's democracy can be seen across China.

Today, the SCIO issued a white paper titled "China: Democracy That Works." This important document is a systematic introduction to China's democratic values, their course of development, institutional arrangements and systems, actions, as well as relevant achievements and contributions. The document notes that whole-process people's democracy integrates process-oriented democracy with results-oriented democracy, procedural democracy with substantive democracy, direct democracy with indirect democracy, and people's democracy with the will of the state. It is a model of socialist democracy that covers all aspects of the democratic process and all sectors of society. It is true democracy that works.

The white paper consists of three parts: preamble, main body and conclusion. The main body is divided into five sections: "Whole-Process People's Democracy Under CPC Leadership," "A Sound Institutional Framework," "Concrete and Pragmatic Practices," "Democracy That Works" and "A New Model of Democracy." From these five aspects, it is clear that China's whole-process people's democracy has both distinctive ideals and pragmatic actions as well as both institutional procedures and participating practices. It not only promotes China's development, but also increases the diversity of the political progress of humanity. It is a democratic system that integrates the logics of history, theory and practice.

First, China's democracy puts the people as the country's masters. The people's status as masters of the country is the essence of people's democracy in China. The white paper reviewed the process in which the Party led the people in developing democracy during the New Democratic Revolution period (1919-1949), socialist revolution and reconstruction period (1949-1978), and the years of reforms, opening-up and socialist modernization after 1978. It notes that since the 18th CPC National Congress, the Party has led the people in proactively developing whole-process people's democracy, and China's democracy has entered a new historical stage with its people having greater confidence in the country's democratic course and the future of China's democracy getting brighter. The white paper points out that whole-process people's democracy is a creation of the CPC in leading the people to pursue, develop and realize democracy, embodying the Party's innovation in advancing China's democratic theories, systems and practices. The white paper stresses that the Party's history of struggle is a course of rallying the people and leading them to explore, establish and develop whole-process people's democracy.

Second, democracy in China has achieved a sound institutional framework. In China, the people's status as masters of the country is the bedrock of all the systems of the country, and underlies the operation of all the systems for state governance. Whole-process people's democracy involves complete institutional procedures.

China has adopted the governing system of the people's democratic dictatorship, upholding the unity of democracy and dictatorship to ensure the people's status as masters of the country. The system of people's congresses has been adopted as the governing structure, through which the people exercise state power effectively. China has upheld and improved the system of multiparty cooperation and political consultation under CPC leadership. The system is able to avoid situations where there is discussion without decision and there is decision without action. It also effectively mitigates the risks of inadequate oversight in one-party rule, and the problems of destructive competition in multiparty political systems. China has consolidated and developed the broad patriotic united front, systematically promoting harmonious relations between political parties, between ethnic groups, between religions, between social groups, and between Chinese people at home and overseas. China has upheld and improved the system of regional ethnic autonomy, making the people of all ethnic groups the masters of the country on the principle of ensuring the solidarity and unity of the country. China has also upheld and improved the system of community-level self-governance. Democracy at the primary level has been expanded so that local residents can manage their own affairs by serving the community, undertaking self-education, and exercising public scrutiny.

According to the white paper, these well-coordinated and comprehensive institutional procedures serve to put into place diverse, open, and well-organized democratic channels to ensure that the Party's policies and the state will are integrated with the people's aspirations and that the people are masters of the country.

Third, democracy in China has been tested through concrete and pragmatic practices. According to the white paper, if the people are awakened only to cast a vote but become dormant afterwards, that is no true democracy. If the people are offered great hopes during electoral campaigning but have no say afterwards, that is no true democracy. If the people are offered fulsome promises during electoral canvassing but are left empty-handed afterwards, that is no true democracy.

Whole-process people's democracy in China is a complete system with supporting mechanisms and procedures, and has been fully tested through wide participation. China's whole-process people's democracy is a combination of electoral democracy and consultative democracy, and is applied through a combination of elections, consultations, decision-making, management, and oversight. It covers the economic, political, cultural, social, eco-environmental, and other fields, with a focus on national development, social governance, and people's lives. Whole-process people's democracy ensures that the people's voices are heard and their wishes are represented in every aspect of China's political and social life. It prevents individuals from manipulating the political process to win elections, and leaves no room for politicians to shower promises while campaigning and break them all once elected.

Fourth, democracy in China is an extensive and true democracy that works. According to the white paper, democracy is not a decorative ornament, but an instrument for addressing the issues that concern the people.

With complete institutions and extensive participation, whole-process people's democracy has evolved from an idea into a system and mechanism of governance that has taken root in the soil of Chinese society and become part of people's lives. In China, all power belongs to the people, and the people enjoy extensive rights. In China, the people have gained a stronger sense of fulfillment, happiness, and security, and human rights are fully respected and protected. In China, democratic participation has kept expanding, and the people's demands can be freely expressed and effectively fulfilled.

The white paper points out that "One essential feature of a good model of democracy is that it will promote sound governance and boost national development," and "It is hard to see how a country can serve as a good example for the rest of the world if its own model of democracy is unsuccessful or inefficient in national governance." In addition, it states, "A good model of democracy should build consensus rather than creating social rifts and conflicts, safeguard social equity and justice rather than widening social disparities in favor of vested interests, maintain social order and stability rather than causing chaos and turmoil, and inspire positivity and appreciation of the good and the beautiful rather than instigating negativity and promoting the false and the evil."

China's democracy has boosted national development and social progress, and ensured the wellbeing of the people. It is high-quality democracy. 

The white paper emphasizes that "Whether a model of democracy works should be tested in actual practice and judged by the people."

Fifth, China's democracy has contributed a new model to the international political spectrum. Representing nearly one-fifth of the world's population, the more-than-1.4 billion Chinese people enjoy the status as masters of the country and extensive rights and freedoms. China has explored a new path to democracy and contributed its experience to global political progress.

The white paper points out that, "China has created and developed whole-process people's democracy in line with its national conditions. This is a form of democracy with distinctive Chinese features which at the same time reflects humanity's universal desire for democracy." It also says "There is no single road to democracy."

"Political systems vary from civilization to civilization, and each has its own strengths." "To judge other countries by one's own yardstick, or force them to duplicate one's own political system or democratic model … are undemocratic in themselves." Therefore, such deeds earn no one's heart and are doomed to fail. 

The white paper highlights that "All countries should uphold the principle of nondiscrimination, respect others' models of democracy, share experience with others, explore their own paths, and contribute their due share to human progress."

"There is always scope for improving the system of democracy." "China has achieved considerable progress in developing democracy; … China still needs to make further improvements. On the path towards comprehensive socialist modernization, the CPC will continue to uphold people's democracy, embrace the people-centered development philosophy, promote whole-process people's democracy, ensure the sound development of democracy, and pursue well-rounded human development and common prosperity for everyone."

"The Chinese people are willing to work together with all other peoples around the world to carry forward the common values of humanity – peace, development, fairness, justice, democracy and freedom. In a spirit of mutual respect and following the principle of seeking common ground while setting aside differences, we will add new elements to the world's political structure and advance towards a global community of shared future together."

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

Chen Wenjun:

Thank you, Mr. Xu. The Q&A session starts now. Please identify the news outlet you work for before raising a question. We have many journalists from other countries here, and questions asked in English will be interpreted into Chinese on the spot. Please start your questions now.

People's Daily:

China upholds the CPC's overall leadership, especially the centralized and unified leadership of the CPC Central Committee. What is the relationship between upholding the leadership of the CPC and whole-process people's democracy? Thank you.

Tian Peiyan:

The essence of the leadership of the CPC is to uphold and ensure the people's status as masters of the country. "Whole-process people's democracy is a creation of the CPC in leading the people to pursue, develop and realize democracy, embodying the Party's innovation in advancing China's democratic theories, systems and practices." Developing whole-process people's democracy can ensure the CPC leadership more effectively. We can say that upholding the CPC leadership is highly consistent with developing whole-process people's democracy, with the two reinforcing and complementing each other. 

On the one hand, upholding the CPC leadership is the fundamental guarantee for whole-process people's democracy. The CPC represents the fundamental interests of the overwhelming majority of the Chinese people, without any special interests of its own, and never represents the interests of any interest groups, powerful groups, or privileged elites. It stands firmly with the people and relies closely on the people to create history. In such a vast country with a population of more than 1.4 billion from 56 ethnic groups, if we were without the CPC leadership, especially the centralized and unified leadership of the CPC Central Committee, or if we implemented the so-called "democracy" in the West, it would be easy to become destabilized and fall into chaos, and democracy would inevitably reverse. Only by upholding the CPC leadership can we guarantee the right direction of democracy and ensure that people administer state affairs and manage economic and cultural undertakings and social affairs through various channels and in various ways in accordance with the law.

On the other hand, developing whole-process people's democracy is the intrinsic requirement of upholding the CPC leadership. Developing whole-process people's democracy can pool people's wisdoms and strengths into the cause of the CPC and the state, build stronger public support for the CPC leadership, make the policymaking of the CPC more reasonable, and implement the theories, lines, principles, and policies of the CPC in a more thorough and vigorous way. Thank you.

Lianhe Zaobao:

I have two questions. The U.S. will convene a Summit for Democracy next week. Recently, China has also emphasized whole-process people's democracy, and it released a white paper titled "China: Democracy That Works" today. Some hold that China and the U.S. are now in a struggle to make their own voice heard about democracy. What's your opinion on this? My second question is, the CPC will convene its 20th national congress in the second half of next year, and a total of 2,300 delegates to the congress will be elected. Could you please brief on the composition of the delegates, such as the ratio of officials against grassroots representation or that of male versus female? Thank you.

Xu Lin:

Thank you for your questions. First, we always hold that democracy comes in many forms. There are many ways to achieve it, and the model that suits best is always the most appropriate. As I have just mentioned, China's whole-process people's democracy is a model of socialist democracy that covers all aspects of the democratic process and all sectors of society. It is true democracy that works. It is rooted in China's history and culture, and suited to the country's national conditions. With distinctive Chinese characteristics, it draws on the achievements of human civilization, exemplifies common values of humanity, enriches international politics, and contributes China's ideas and solutions to the development of democracy. 

We always uphold that we should be open and inclusive and seek common ground while setting aside differences for different forms of democracy in different countries. As for the explorations and efforts in pursuit of democracy in different countries, we should respect them and draw on each other's experiences. That is true democracy. A handful of countries, adopting the hegemonic mindset that "whoever disagrees with me is wrong," treat other forms of democracy as undemocratic and even reject or suppress them. Those deeds are undemocratic themselves. Their models of democracy are notorious, and their own domestic governance is a mess, but they dictate to others and hurl abuses at others' models of democracy. Does this conform to their so-called democracy?

The U.S. proclaims itself "leader of democracy" and organizes and maneuvers a so-called "Summit for Democracy." But in fact, it just wants to suppress and contain countries with different social systems and development modes in the disguise of democracy. The deeds of being against democracy with the name of fake democracy are doomed to be a joke in the development of democracy and would not get any support.

As for your second question, next year, the CPC will convene its 20th national congress. Recently, the CPC Central Committee released a circular on the election of delegates to the Party's 20th national congress. Officials of the Organization Department of the CPC Central Committee were interviewed by Xinhua News Agency on the related issues. Here, I would like to give you a more detailed introduction.

According to the CPC Central Committee, a total of 2,300 delegates will be elected to the Party's 20th national congress. The quota for the number of delegates is mainly determined by the number of Party organizations and the number of Party members, while taking into account such factors as the number of delegates to the previous national congresses.

The CPC Central Committee stresses guaranteeing the proportion of delegates from frontline work and production. Among delegates representing provincial level regions, the central financial sector, and Beijing-based centrally-administered enterprises, Party members from the front line should account for at least one-third of the total while those at various leadership posts should not exceed two-thirds of the total. Female Party members should account for a certain proportion of the delegates. The proportion of female delegates from a provincial level region should be higher than that of female Party members in the total number of Party members in the region. There should be a certain number of female delegates from the central and state organs, the central financial sector, Beijing-based centrally-administered enterprises, the People's Liberation Army, and the People's Armed Police Force. These fully embody democracy within the Party and extensive representation, which will enable delegates to the Party's 20th national congress to better represent and reflect the will of Party members from all walks of life and sectors. Thank you.

Kyodo News Agency:

What kind of people can be candidates for people's congress deputies? How to elect deputies to the NPC and the local people's congresses at all levels? Compared with the systems of Western countries, what are the differences and characteristics? Thank you.

Guo Zhenhua:

The system of people's congresses is China's fundamental political system, whose original aspiration and essence is to ensure Chinese people's status as masters of the country. The Constitution stipulates that all power in China belongs to the people. The election of deputies to people's congresses, which is the basis of the system of people's congresses, has two notable characteristics:

First, the rights to vote for Chinese citizens are the most extensive. According to the Constitution, all citizens of the PRC who have reached the age of 18 shall have the right to vote and stand for election; persons deprived of political rights in accordance with law shall be an exception. Currently, more than 1 billion voters are participating in the elections to people's congresses at the township and county levels. Elections at the grassroots level are the most dynamic form of China's whole-process people's democracy, and also the world's largest elections.

The latest news reported that, in Beijing, Chinese President Xi Jinping, as a voter in Zhongnanhai electoral district in Xicheng district, cast his ballot at the Huairentang polling station. In Sichuan province, a 106-year-old woman cast her vote at a mobile ballot box outside her house. In Shanghai, a senior couple – a 90-year-old husband and his 78-year-old wife – displayed their collection of 31 voter's certificates after voting. These certificates are all owned by the couple, spanning 68 years. The oldest certificate belongs to Mr. Yuan, who participated in the first nationwide election of deputies to people's congresses in 1953 after the founding of the PRC.

Second, the deputies to people's congresses are fully representative of the people. China has five-level deputies: national, provincial, city, county, and township. At the end of 2020, 2.623 million people were serving as deputies to people's congresses at all levels nationwide. Among them, 2.478 million are at the township and county levels, accounting for 94.5% of the total. Deputies at the township and county levels are directly elected by the public; one person has one vote. Deputies to people's congresses at the city, provincial, and national levels are elected by people's congresses at the next level below. China's Electoral Law stipulates that there shall be an appropriate number of deputies from all regions, ethnic groups, and sectors, and makes clear requirements for the proportion of deputies elected from the grassroots level, especially workers, farmers, professionals and technicians, women, and ethnic minorities. It can be said that in China, deputies to people's congresses come from every region, every industry, every field, and every ethnic group.

Take the 13th NPC as an example. Among the nearly 3,000 deputies to the 13th NPC, 742 are women deputies, accounting for 24.9% of the total; and 468 workers and farmers, accounting for 15.7% of the total, including 45 migrant workers. Moreover, 613 deputies are professionals, accounting for 20.6% of the total, and 438 deputies are from ethnic minority groups, accounting for 14.7% of the total. All 55 ethnic minorities in China have NPC deputy representation. Even those with a very small population would have at least one NPC deputy. For example, the Monba ethnic group in Tibet, which has a population of around 10,000, also has one NPC deputy, who is female. She is a teacher at a local elementary school.

In terms of the characteristics that define China's electoral system, I would like to add a few points. China's first Electoral Law in 1953 granted the universality of the right to vote. It took Western countries several hundred years to realize universal suffrage in the legal sense while China achieved true universal suffrage without all those twists and turns. On the increasing number of people participating in elections – which is also the voter turnout – since the initiation of reform and opening up, China has conducted 12 direct elections to people's congresses at the township level and 11 direct elections at the county level, with a current participation rate of around 90%. On election funding in China, finances for deputy elections come from the treasury, which provides an institutional guarantee that election integrity will not be compromised by financial interests.

Thanks.

Phoenix TV:

The system of regional ethnic autonomy is an important part of socialist democracy with Chinese characteristics. Some voices from the international community believe that the Chinese government has tightened its management of ethnic minority groups, and that ethnic minorities don't have authentic autonomy. What's your comment on that? Thank you.

Xu Yousheng:

Thank you for your question. We know that the system of regional ethnic autonomy is a basic political system in China. It provides an important institutional guarantee for following the correct path of resolving ethnic problems according to Chinese principles. The system of regional ethnic autonomy means that areas with large ethnic minority populations can practice regional autonomy, establish autonomous organs and exercise the power of self-government under the unified leadership of the state. There are currently 155 ethnic autonomous areas in China, including five autonomous regions, 30 autonomous prefectures and 120 autonomous counties (banners). The area where regional ethnic autonomy is practiced accounts for 64% of the entire territory of China.

The system of regional ethnic autonomy is fundamentally aimed at maintaining national unity and ethnic solidarity. All autonomous organs of these areas are local governments subject to the unified leadership of the central government. They must ensure that national policies and orders are implemented smoothly and that national laws and regulations are enforced. On that basis, they must guarantee the equal rights and obligations of various ethnic groups in accordance with the law, support their economic development and improve their citizens' quality of life, achieve common development and common prosperity, and ensure that the autonomy of ethnic groups is fully realized. The ethnic autonomous areas enjoy autonomous rights across a wide range of fields, including legislative power, the right of economic development, the right of financial management, the right to cultivate and appoint ethnic minority officials, the right to develop education and culture and the right to use their own spoken and written languages, among others. Take the training and appointment of ethnic minority officials, something the CPC and Chinese government prioritizes, as an example. After more than 70 years, we have built a sizable and qualified team of ethnic minority officials, which has laid an important organizational foundation for implementing the system of regional ethnic autonomy. On all standing committees of people's congresses of the 155 ethnic autonomous areas, there are citizens from the local ethnic groups assuming the office of chair or vice chair. Likewise, all governors, prefectural commissioners and heads of counties of ethnic autonomous areas are citizens from local ethnic groups. 

Practice has proved that China's implementation of the system of regional ethnic autonomy is not only conducive to national unity, ethnic solidarity, and social stability, but also conducive to the development and progress of ethnic minorities and the long-term stability of the country. In the nine years from 2012 to 2020, the regional GDP of the five autonomous regions of Inner Mongolia, Guangxi, Tibet, Ningxia, and Xinjiang and the three multi-ethnic provinces of Yunnan, Guizhou, and Qinghai increased from 5.1 trillion yuan to 10.4 trillion yuan; the per capita regional GDP increased from 27,000 yuan to 52,000 yuan; and the urbanization rate increased from 43.1% to 55.1%. All 31.21 million impoverished people in ethnic minority areas have been lifted out of poverty, 420 state-level impoverished counties in ethnic autonomous areas have all gotten rid of poverty, and together with the rest of the country, they have achieved moderately prosperity in all respects.

As to whether the system of regional ethnic autonomy is good or not, whether it works or not, it should be judged by the Chinese people. The development and progress of ethnic minority areas, and the tangible data of people of all ethnic groups living a good life, are the best and most resounding answers. Thank you.

Guangming Daily:

We know that the system of the CPPCC was born in 1949. After more than 70 years of development and practice, what are the advantages and characteristics of this political institution in China's model of democracy? Thank you.

Hu Henglu:

Thank you for your question. The CPPCC originates from the political system created by the leading CPC and all non-communist parties, public figures without party affiliation, people's organizations, and public figures of all China's ethnic groups and sectors of society. It is deeply rooted in China's history and culture, and is an important means to achieve people's democracy in China. In September 1949, the first plenary session of the CPPCC was held, marking the formal establishment of the system of the CPPCC. For more than 70 years, under the leadership of the CPC, the CPPCC has adhered to the two themes of solidarity and democracy, served the central tasks of the CPC and the country, and played an important role in the great practice of establishing and developing the PRC, exploring paths of reforms, and realizing the Chinese Dream.

Socialism with Chinese characteristics has entered a new era. The CPPCC is an important channel and a specialized body for socialist consultative democracy. It integrates consultation, supervision, participation, and cooperation. It promotes broad unity, promotes multi-party cooperation, and practices people's democracy in consultations. It is an important part of China's national governance system and a political institution with Chinese characteristics. It has many characteristics and advantages in China's model of democracy and the whole-process people's democracy:

First, it promotes scientific and democratic decision-making in the process of political consultation. We insist on consultation before and during decision-making. Through plenary sessions, meetings of the standing committee, meetings of chairpersons, meetings of special committees, forums on specific subjects, and consultative seminars, we conduct extensive and in-depth consultations on the major policies of the country, important issues in various economic and social fields, and concerns of the people. For example, around the formulation and implementation of the 14th Five-Year Plan, we actively provided suggestions and political consultations on CPPCC's platform of consultation, submitted information for more than 220 rounds, put forward more than 190 proposals, and promoted the wishes, appeals, suggestions, and opinions of the CPPCC members and all walks of life in society to be fully reflected in the decision-making.

Second, it expands consensus and enhances solidarity in the process of political consultation. Through the CPPCC platform, all parties and groups, as well as people from all ethnic groups and all walks of life that participate in the CPPCC, not only conduct in-depth consultations and discussions on state affairs, pragmatically put forward opinions and suggestions, but also accept the propositions of the CPC, and then help publicize and explain the Party's policies and guidelines among people of different circles, enhancing trust and dispelling doubts, realizing the two-way effort of contributing their suggestions to aid administration, and, building consensus. For example, the 13th National Committee of the CPPCC implemented the decisions and arrangements of the CPC Central Committee, and actively consulted and made suggestions on how to resolutely win the fight against poverty, meanwhile, it tells the story of China's poverty reduction from the perspective of the CPPCC through member lectures, inspections, and themed reading groups. The CPPCC members therefore have a deep understanding of the original aspiration and mission of the CPC, the great course of building a moderately prosperous society in all respects, and the institutional strengths of the socialism with Chinese characteristics.

Third, it guarantees the people's orderly political participation in the process of political consultation. The CPPCC is composed of representatives from 34 sectors, including the CPC, the other political parties, the non-affiliates, people's organizations, 56 ethnic groups, and five major religions. At present, there are more than 3,200 CPPCC organizations at the national, provincial, city, and county levels, with more than 600,000 CPPCC members at all levels. This effectively guarantees all parties, organizations, ethnic groups, social groups and people from all walks of life to participate in the state affairs. The CPPCC supports non-Communist parties and non-affiliates to participate in the consultation and discussion of major national policies on the CPPCC platform, and makes institutional arrangements for the non-Communist parties to express their opinions and make suggestions on the CPPCC platform in the name of their own party. It serves as an important political and organizational form for implementing the system of multiparty cooperation and political consultation under the leadership of the CPC.

Thank you.

Reuters:

Comparing the whole-process people's democracy in China with democracy in the U.S., one difference is that voters in the U.S. can hold elected politicians accountable and vote them out in the next election if they think they didn't do a good job. Meanwhile, people's congresses in China only need to satisfy their superiors and the Party after being elected, and voters cannot vote out their superiors even if they are dissatisfied. What are your comments on this? Thank you.

Tian Peiyan:

Democracy is a concrete phenomenon that is constantly evolving. Rooted in history, culture, and tradition, it can take different forms and develops along the paths chosen by different peoples based on their exploration and innovation. The forms of democracy in China and in the U.S. should be tested in real-world scenarios and judged by the peoples.

Under the American system of democracy, politicians are agents of interest groups, rather than representatives of the interests of the voter majority or the country as a whole. They can willfully make promises to get elected but seldom fulfill them after being elected. They appear to be overseen by voters, but once elected, there's nothing voters can do but wait for the next election. If the people only wake up to cast a vote but become dormant afterwards, that is not true democracy. If the people are offered great hopes during electoral campaigns but have no say afterwards, that is not true democracy. If the people are offered fulsome promises during electoral campaigns but are left empty-handed afterwards, that is not true democracy. The Chinese people dislike and have no need for this kind of democracy.

Democracy in China is whole-process people's democracy under the leadership of the CPC. Party members and officials at all levels must accept oversight from the Party and the people throughout all aspects and sectors of the whole process, so as to ensure that public power, entrusted by the people, is and will always be exercised for the public good. No matter how high-level his or her position is, the person found to have violated Party discipline or state laws will be seriously punished, without exception. Deputies come from the people, represent the people, serve the people, are elected by the people, and are accountable to the people. They maintain close ties with the people at all times, always listen to and respond to the people's aspirations, actively advance solutions for the most pressing difficulties and problems that are of great concern to the people, and accept the oversight of the people and all social sectors. They are deputies who represent the people, reflect the will of the people, pool the wisdom of the people, and benefit the lives of the people. Voters and electoral units can disqualify or dismiss deputies who either cannot fulfill their duties or violate Party discipline or state laws, without having to wait until the next election. This kind of democracy is more broad-based, authentic, and effective.

According to surveys conducted by Harvard Kennedy School in China for 13 consecutive years, the Chinese people satisfaction with the Chinese government under the leadership of the CPC runs as high as 93%. I think people will make fair judges when comparing the democratic system in China with that in the U.S. Thank you.

Guo Zhenhua:

I agree very much with what Mr. Tian said about the contrast between how politicians in the U.S. behave during and after their election campaigns. I think one of the most important reasons is that, in the U.S., there is no institutional design or arrangement in its legal system for politicians, including members of Congress, to be overseen by voters after being elected. Even if voters are dissatisfied, they have to wait until the next election years later. In addition to the "revolving door" unique in the U.S. politics, it is unsurprising that members of the U.S. Congress speak for interest groups and are swayed by lobbying groups. On the contrary, in China, both the Constitution and the Electoral Law of the National People's Congress and Local People's Congresses stipulate that deputies to the NPC and people's congresses at local levels are subject to the oversight of voters and electoral units that elected the deputies, and voters and the electoral units have the right to dismiss deputies they elected. The Electoral Law also clearly stipulates procedures of dismissing deputies, giving voters in deputies' home electoral districts or deputies to the people's congresses of electoral units the power to jointly propose dismissals. In the past nearly four years since the 13th NPC, 10 NPC deputies have been dismissed in accordance with the law.

In all, comparing China with the U.S., the case is exactly the opposite of how you described. China's deputies to people's congresses are subject to strict and effective oversight during their terms of office, and the law stipulates clear dismissal rights and procedures. In the U.S., however, there is no institutional arrangement for those including members of Congress to be dismissed or supervised by voters during their terms of office. That is why we say that China's whole-process people's democracy has a sound institutional framework and concrete practices, which can ensure that voters and electoral units can effectively oversee the deputies they elect and leave no room for politicians to shower promises while campaigning and break them once elected.

Thank you.

China News Service:

What is the system of community-level self-governance in China? How do villagers committees and residents committees exercise self-governance? Thank you.

Wang Aiwen:

Thank you for your concern about the system of community-level self-governance, which is a basic political system in China. It is specified in the country's Constitution that residents committees established in urban areas and villagers committees in rural areas according to people's residences are people's organizations for self-governance at the grassroots level. Under the leadership of community-level Party organizations, such self-governance is a way for urban and rural residents to exercise their democratic right in accordance with the law to manage their own affairs including community governance, public affairs and public services by serving the community, undertaking self-education and exercising public scrutiny.

China has 492,000 villagers committees and 116,000 residents committees, covering all residents in urban and rural areas. These committees are selected by residents. How do they exercise self-governance? 

First, they organize democratic consultation. They pool ideas and widely solicit public opinions from residents. For example, they solicit residents' opinions regarding such affairs as the handling of community sanitation, aiding people in difficulty and expending collective income of villages, and make a to-do or priority list for the committees.

Second, they practice democratic decision-making on the basis of consultation. They review the affairs of consultation including the committee work to form final decisions through committee meetings and congresses.

Third, they organize residents to formulate or amend their own rules on self-governance and codes of conduct and self-regulation, which all residents need to obey. 

Fourth, they organize residents to oversee their work and review the performance of their staff. The entire decision-making process is made public, and so are the results of the decisions, which, together with residents' discussions, can be accessed via bulletins put on walls and bulletin boards or via cellphone. This practice ensures the supervision of the work of the committees. 

The system of community-level self-governance not only ensures people's democratic rights, but also plays an important role in our responses to major risks and challenges. In the fight against the epidemic, communities face great pressure in epidemic control due to China's large population of density. However, we have effectively contained the epidemic in our communities, because our residents and villagers committees have effectively organized the people to carry out joint and society-wide prevention and control, and contained the epidemic in communities. In the face of major risks and tests, the advantages of the Chinese system have been demonstrated. Thank you.

CRNTT: 

Democracy means supervision of public power. Judging from the corruption cases China has addressed in recent years, the country's anti-corruption situation is still complex and grave. What is your opinion on this matter? Thank you.

Tian Peiyan:

I'd like to take this question. Corruption is a common historical and social phenomenon in human society, which exists in all countries around the world. It is incompatible with the nature and principles of the CPC. Since its founding, our Party has been resolutely fighting against corruption. For a period before the Party's 18th National Congress, corruption was rather prominent in the country. Following the congress, our Party was deeply aware that corruption is the greatest threat to the Party's long-term governance. The fight against corruption is a matter of survival for the Party and the country, and therefore it is a major political battle that we cannot afford to lose, and also must not lose. Our Party is determined to honor its commitment to the 1.4 billion Chinese people by fighting corruption. No refuge has been excluded from the scope, no ground left unturned, and no tolerance shown in the fight against corruption. China has continued to impose tight constraints and maintain a tough stance and long-term deterrence, and has won a sweeping victory in the fight against corruption. Meanwhile, we are soberly aware that corruption has not been eradicated, and some areas are prone to corruption. The fight against corruption remains grave and complex, and will not stop. Our Party will continue to take integral and coordinated actions to raise the awareness, ability and resolve to resist corruption, and adopt effective measures to consolidate China's sweeping victory in the fight against corruption.

It is an important function of democracy to practice democratic oversight of public power and prevent its abuse and corruption. Since the 18th CPC National Congress, the Party has emphasized that public power is, and will always be, exercised for the public good and that power is prescribed by law, and regulated, constrained, and supervised by legal means to restrain power in an institutional cage. The exercise of power has been brought under stricter supervision. The supervisory systems of the Party and the state have been improved, and the reform of supervision mechanism and system building in key sectors have been advanced. A supervision system has been established with intra-Party supervision playing the leading role and various kinds of supervision coordinating with each other, thus preventing the anomie of power and rent-seeking to the largest extent. The Party has upheld democratic oversight throughout the entire process of the exercise of power and given full play to the irreplaceable role of democratic oversight in preventing corruption, thus reducing existing corruption constantly and restraining the increase of corruption effectively. Many corrupt officials were exposed through tip-offs and complaint letters, and individual interviews during disciplinary inspections. The fact that a large number of corrupt officials were investigated and handled does not mean the malfunction of democracy but proves the effectiveness of democratic oversight. We firmly believe that with the development of China's democracy and political system, democratic oversight will be more powerful, and corrupt officials shall have nowhere to hide in China. Thank you. 

Red Star News:

We all know that the deputies to community-level people's congresses are selected through direct election while those in the higher levels of people's congresses are elected indirectly. Will the current system mean that the suggestions and voices from ordinary people, especially vulnerable groups, will not be reflected in the highest level and be considered in the country's decision-making? Thank you. 

Guo Zhenhua:

The system of people's congresses is an important institutional support to whole-process people's democracy. The deputies to people's congresses in China, no matter at the national or community level, all come from the people and are rooted in the people. In addition, the deputies to people's congresses will stay in their original work positions after being elected so that they are in close contact with the people. 

In recent years, the people's congresses at all levels have set up more than 220,000 stations for the deputies to be in contact with the people, covering all townships and subdistricts across the country, and even some communities and villages. Deputies to the people's congresses at all levels receive information from the people and listen to their opinions at the stations on a regular basis. Such a system determines that deputies to the people's congresses in China are not career politicians and do not represent any particular interests. Therefore, they can truly and directly understand the people's aspirations and wishes, and submit the people's suggestions and advice through agencies of state power. At the NPC session each year, nearly 3,000 deputies will submit thousands of documents providing suggestions and advice. In this year's fourth session of the 13th NPC, the deputies put forward 8,993 suggestions, among which, the people's well-being was the biggest topic of discussion. For example, they discussed easing the burden of excessive homework and off-campus tutoring for students undergoing compulsory education, improving rural elderly care service systems, advancing a "toilet revolution" in rural areas, promoting the sorting of urban household waste, and improving social security for flexible employees such as delivery personnel. The suggestions bear the people's pursuit for a better life, reflect their aspirations, and demonstrate the responsibilities that the deputies have shouldered to hear the people's voices, pool the people's wisdoms, and benefit the people's lives. State organs carefully review the suggestions proposed by the deputies in accordance with law, and research and adopt reasonable suggestions in their work, including in their decision-making. They respond actively to social concerns and each and every one of the people's aspirations. 

Thank you. 

Global Times:

Some countries claim to be models of democracy for the whole world, but their response to the pandemic was awful and their social governance disordered, which is contradictory to that message. What are the functions of democracy? What are the standards for evaluating democracy? Thank you. 

Tian Peiyan: 

Democracy is not a decorative ornament, but an instrument for addressing issues that concern the people. True democracy should both take full cognizance of and fully realize the people's aspirations; give full expression to diversified opinions and advice, and form the united will of all the people; spur social creativity and vitality to the largest extent, and uphold social equity and justice effectively. 

For a long time, America has claimed itself as a model of democracy for the whole world. However, in the face of a pandemic unseen in a century, the American democratic system has exposed numerous of its maladies. In responding to the pandemic, due to serious political polarization, endless disputes among political parties, lack of coordination in different levels of government, and malfunctions in social oversight, America has failed to prevent and control the pandemic, which resulted in infections of nearly 50 million people and a death toll of more than 800,000. Such democracy will only bring disasters rather than happiness to the electorate . 

In the face of COVID-19, the CPC and the state have prioritized the people by putting their lives and health first, confidently risen up to the challenges and made resolute decisions, waging an all-out people's war against the virus in the shortest possible time. We have leveraged our institutional strengths to mobilize the whole nation and carried out a campaign to save lives on an unprecedented scale, which have reflected the country's nationwide coordination and solidarity. We have done everything possible to treat all patients, ranging from new-born infants to centenarians, saving countless lives. This has fully demonstrated that China's democratic system respects and protects everyone's life. 

How do you evaluate whether or not a country's political system is democratic and efficient? General Secretary Xi Jinping has given a definitive answer: It mainly depends on whether the succession of its leaders is orderly and in line with the law; whether all the people can manage state and social affairs and economic and cultural undertakings in conformity with legal provisions; whether the public can express their requirements without hindrance; whether all sectors can efficiently participate in the country's political affairs; whether national decision-making can be conducted in a rational and democratic way; whether people of high caliber in all fields can be part of the national leadership and administrative systems through fair competition; whether the governing party is in charge of state affairs in accordance with the Constitution and the law; and whether the exercise of power can be kept under effective restraint and supervision. History has proven that the China's style democracy works well in China. History will prove that the CPC will lead the Chinese people to enrich and improve the Chinese way of democracy, so that the tree of democracy will flourish with vitality. Thank you.

CGTN:

Some people think that China is exporting its model by virtue of its growing strength, which poses threats and challenges to the "world's democracies." What's your take on this? 

Xu Lin:  

Thank you for your question. First of all, I would like to point out that the concept of "world's democracies" is a false proposition concocted by a few countries. Democracy is the common value of humanity and a shared wealth of global political progress. Democracy is the right of the people in every country, rather than the prerogative of a few nations. It is for its people to judge whether a country is democratic or not, and it is up to the international community to judge whether a country is democratic or not. As Mr. Tian Peiyan just said, certain countries pose as the "model of world democracy" and "beacon of democracy" while failing to combat the pandemic, suffering chaotic domestic governance and severe political polarization, and imposing hegemony and bullying other countries. Doesn't it sound absurd? At present, the cause of human democracy stands at a crossroad between progression and regression. Some countries are inciting confrontation and division globally in the name of democracy and aggravating international tensions, and became a source of chaos in the world. It is clear to all who is threatening the cause of human democracy and becoming an obstacle to world peace and development. 

Democracy is an ideal that has always been cherished by the CPC and the Chinese people. This has been reflected in the main content of the white paper and in the statements made by other speakers in their answers. China is fully confident in our way of democracy. In active response to the people's needs and expectations for democracy, China has developed the whole-process people's democracy and established a democratic system covering a population of more than 1.4 billion from 56 ethnic groups living on 9.6 million square kilometers of land, making possible the widest participation of all its people.

Just now, Mr. Guo Zhenhua said that more than 1 billion voters have participated in the ongoing elections for deputies to the people's congresses at the county and township levels. Since the initiation of reform and opening up, China has held 12 direct elections to people's congresses at the township level and 11 direct elections to those at the county level, with a current participation rate of about 90%. We have a host of data and records on this. These facts together reflect the real situation of China's democracy and vividly demonstrate that the people are masters of the country.

China has developed the whole-process people's democracy here in our country and promoted democratic relations between nations. China upholds the principle that all countries, large or small, strong or weak, rich or poor, are equals. China does not copy from another country's political systems, nor do we ask other countries to replicate our practices. We believe that democracy comes in many forms in the richly diverse world and each country has the right to choose its own path to democracy. We are ready to strengthen exchange and mutual learning with other countries to jointly advance the political progress of mankind. Thank you. 

Chen Wenjun:  

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

Translated and edited by Wang Qian, Zhu Bochen, Li Xiao, Wang Yanfang, Liu Sitong, Zhou Jing, Mi Xingang, Wang Wei, Lin Liyao, Zhang Junmian, Cui Can, Liu Qiang, Zhang Rui, Huang Shan, Zhang Jiaqi, Li Huiru, Liu Jianing, Zhang Liying, Xu Xiaoxuan, Wang Yiming, David Ball, Daniel Xu, Tom Arnstein and Drew Pittock. 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:

Yan Cheng, executive director general of the Beijing 2022 Main Operation Center

Zhao Weidong, director general of the Media and Communications Department of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and executive deputy director of the Publicity Department of the CPC Beijing Municipal Committee

Yang Jinkui, director general of the BOCOG Paralympic Games Integration Department

Yu Bo, chief of Yanqing district, Beijing

Zhao Wenfeng, mayor of the Zhangjiakou Municipal People's Government, Hebei province 

Chairperson:

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

Date:

Dec. 3, 2021

Xing Huina:

Good morning, friends from the media. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Yan Cheng, executive director general of the Beijing 2022 Main Operation Center; Mr. Zhao Weidong, director general of the Media and Communications Department of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and executive deputy director of the Publicity Department of the CPC Beijing Municipal Committee; Mr. Yang Jinkui, director general of the BOCOG Paralympic Games Integration Department; Mr. Yu Bo, chief of Yanqing district of Beijing; and Mr. Zhao Wenfeng, mayor of the Zhangjiakou Municipal People's Government of Hebei province. They will brief you on the latest progress of the 2022 Olympic and Paralympic Winter Games preparations and updates on the Yanqing and Zhangjiakou competition zones and then take your questions.

First, I'll give the floor to Mr. Yan Cheng.

Yan Cheng:

Thank you. Good morning, friends from the media. Nice to see you. I would like to brief you on the latest progress of the 2022 Olympic and Paralympic Winter Games preparations in the three competition zones of Beijing, Yanqing and Zhangjiakou.

At present, delivering a successful "Experience Beijing" testing program is a major task for the three competition zones. From Oct. 5 to the end of December this year, 10 international competitions, three training weeks and two domestic trials have been and will be organized in an orderly manner, with the aim of testing all elements of the Games.

Up to now, six events hosted by the Beijing competition zone including the Short Track Speed Skating World Cup, five events hosted by the Yanqing competition zone including the Luge World Cup, and the Ski and Snowboard Cross World Cup event hosted by the Zhangjiakou competition zone, have all successfully concluded. More than half of the events have finished. In December, the Zhangjiakou competition zone will also host three events: the Nordic Combined Continental Cup, Ski Jumping Continental Cup and biathlon international training week.

The test events which have ended all progressed well, achieving the set test goals and receiving positive comments from international sports organizations, athletes and global media.

The main features of the test program are as follows. 

First, the event management was in line with international standards. The test competition organizing committee and venue management team cooperated with individual international sports organizations to complete the competition registration, schedule planning, venue preparation, equipment preparation and other tasks in an orderly manner. All of the work aligned well with the competition rules and technical specifications of the Winter Olympics. The team fully seized the opportunity to gain experience in competition organization. With domestic technical officials as the main body along with international technical representatives and experts, the team jointly completed the whole process of competition preparation, operation, review and evaluation. The whole process of organizing a competition has been fully tested. From meeting the competition schedule and training schedule to the provision of complete services, the process went smoothly and in compliance with the Olympic rules. Kit McConnell, sports director of the International Olympic Committee (IOC), commented that the IOC has received unanimously positive feedback from athletes in the Beijing 2022 test series.

Second, technologies were introduced in the venues and facilities. The relevant test venues and facilities each have their own features, which all meet the technical standards required by the Winter Olympics and have employed a series of scientific and technological innovations. As the world's first Winter Olympic venue using carbon dioxide transcritical direct cooling ice making technology, the National Speed Skating Hall continued to improve its ice making skills and produced a high-quality ice surface. Some athletes achieved their career-best performances at the venue and called the "Ice Ribbon" the "fastest ice surface." The National Snowmobile and Sled Center features a long track with large slopes and numerous curves. Through technological innovation, the accuracy and temperature control problems of the track have been solved. For the first time, concrete for a 360-degree loop was applied in a single application. The center, dubbed the "Snow Dragon," meets the requirements for hosting competitions. As professional venues for the Winter Olympics sports, these stadiums also showcase China's scientific and technological strength.

Third, the staff were in position and venues and facilities in place, just as they will be for the upcoming Winter Games. Under the direct command of the leading group of the 24th Winter Olympic Games, the command system during the Games entered full operation. The Main Operation Center, serving as the central organization, played a leading role in coordinating all venues in the various competition areas. Directors of all venues shouldered responsibilities in resource allocation, event operation, service provision and emergency response, ensuring that 98% of the problems were resolved on the scene. The venue staff were all in position, worked together across different departments and fulfilled their roles in presenting the sports, providing technical support, TV broadcasting and in other areas, so as to test all elements for the Olympic Games. Cooperating with the venue staff, relevant local governments also carried out their tasks in epidemic prevention and control and assigning personnel.

Fourth, services were provided with a person-centered approach. Requirements were met in detail and high-quality services were provided in all aspects including clothing, food, accommodation and transportation of athletes and relevant personnel. For example, hotels during the test events sold licensed merchandise at reception and provided a variety of food and beverages including coffee. Athletes who celebrated their birthdays received wishes, which was heartwarming, and for another example, barrier-free facilities were optimized. During the World Wheelchair Curling Championship, carefully designed and barrier-free ramps were installed in venues to facilitate people with disabilities. The person-centered service was lauded by Kate Caithness, president of the World Curling Federation. 

Fifth, strict COVID-19 prevention and control measures were taken. Under the leadership of Beijing municipality and Hebei province, we implemented epidemic prevention and control measures during the test events while complying with the prevention requirements of each city. The BOCOG, IOC and the International Paralympic Committee (IPC) jointly released the first playbook that outlines anti-COVID-19 measures, and consensus was reached among various stakeholders. In accordance with the requirements of "one test, one policy" and "one venue, one policy," every venue strictly implemented epidemic prevention plans and imposed prevention and control measures such as remote monitoring, vaccination, closed-loop management and nucleic acid testing in accordance with the epidemic prevention standards during the Winter Olympics. During the test events, the closed-loop management during the whole process meant that athletes and organizers were separated from the general public to protect everyone's health, which was recognized by all parties at home and abroad.

While the trials were held, preparatory work for the Winter Olympics continued to deepen. All 12 competition venues have been completed and ready for hosting competitions. For instance, the ice event venues have completed ice-making and track preparation work for the snow event venues are progressing smoothly. Meanwhile, the Winter Olympic Villages in the three competition zones are completed and newly decorated, illuminating floor lamps in the buildings one after another, and carrying out a series of full-process, full-factor and scenario-based operational stress tests. The operation teams of all competition and non-competition venues have been established, with personnel in place, ready to welcome the arrival of the Games. Accommodation, catering, transportation, medical care, security and other services are advancing in an orderly manner. Preparations for the torch relay and opening and closing ceremonies have been strengthened day-by-day, and publicity and promotion activities have continued to increase. It is worth mentioning that on Nov. 28, the BOCOG and the IOC co-launched a comprehensive drill entitled "One Day in Competition," triggering different emergency scenarios, conducting a comprehensive inspection of the Winter Olympics' command, dispatch and emergency response capabilities, and laying a solid foundation for the Games to be held on schedule, safely and smoothly.

Next, we will make effective responses to the COVID-19 pandemic, optimize the organization of the competition, improve the venues' operation mechanisms, ensure the service guarantee for the Games, and further strengthen the training and drills for the organizing personnel, as we sprint toward the finish line and strive to win the final victory in the preparation work. During this period, we welcome media friends and people from all walks of life to send us valuable opinions and suggestions.

We firmly believe that under the strong leadership of the CPC Central Committee and with the strong support of Chinese people, together with the international community, the 2022 Olympic and Paralympic Winter Games will be a resounding success, and we will present a streamlined, safe and splendid Games to the world.

Thank you!

Xing Huina:

Thank you, Mr. Yan, for your introduction. Now everyone can start asking questions. Please state which news organization you are with before asking questions.

Beijing Youth Daily:

My questions are about meteorology. During some competition events, the quality, amount, and temperature of snow, as well as visibility and wind speed will all affect athletes and referees. Previously, the meteorological and environmental departments predicted that the weather and meteorological conditions would be more complicated and severe this winter and next spring. How will the BOCOG guarantee meteorological services? In addition, this is also the first time that the Winter Olympics will be held in a continental monsoon climate. Extreme weather may be more prone to occur during the turn of winter and spring. Do you have any ways of dealing with that? Thank you.

Zhao Weidong:

Thank you for your questions. Beijing 2022 will be the first Winter Olympics in the history to be hosted in a continental monsoon climate zone. Located at continental monsoon climate zone, Beijing and Zhangjiakou have a transitional season of winter and spring from February to March each year, and there are indeed extreme weather conditions such as low temperatures, strong winds and little snow, as well as sand and dust. Among them, strong winds may have an impact on the snow events. The mountainous terrain of Yanqing and Zhangjiakou, where the snow event venues are located, is more complicated. According to meteorological experts, the weather conditions in these two places are volatile, and it is indeed very difficult to forecast weather accurately. In despite of these challenges, we believe that as long as we do our best, respect science and trust experts, we will always have a way.

In order to guarantee meteorological services, we actually began arranging the related work very early. Four years ago, the China Meteorological Administration established the Winter Olympics Meteorological Center. The staff at the Winter Olympics Meteorological Center focused on two areas: one was the hardware construction of weather facilities, and the other was forecast services. They built two weather forecast radars and more than 50 weather tracking stations at Haituo Mountain in Beijing's Yanqing district, and at Kangbao County in Hebei's Zhangjiakou. The three-dimensional weather monitoring network they built is capable of capturing multiple factors within a second. This center has monitored and collected meteorological data for mountain racetracks for five consecutive years and compiled relevant meteorological reports and meteorological risk analysis assessments, which they've provided to the IOC, the Association of the International Olympic Winter Sports Federations (AIOWF), the Olympic committees of various countries (regions) and various stakeholders, providing relevant information such that everyone can prepare for meteorological risks in advance.

Meanwhile, the meteorological department also selected the best weather forecast service personnel in the country and formed a 52-person team for the Beijing Winter Olympics, equipped each snow venue and sliding venue with the best weather forecasters, and made it possible for them to get hands-on experience with winter sports events at home and abroad for the past four years. What's more, they have also been stationed at the Beijing Winter Olympics venues during the snowy season to carry out weather forecasting drills and further understand the weather conditions at the venues, as well as the weather's changing nature. Based on the current feedback from the meteorological department, the team's ability to accurately forecast the weather is improving year by year, and we should have full confidence in them. When the Games start, venue weather forecasters will maintain close communication with technical experts from the AIOWF to help make accurate judgments and any necessary adjustments to the events.

As the reporter just mentioned the possibility of extreme weather, the BOCOG is working with the IOC, relevant international winter sports federations and Olympic broadcasting companies to jointly study and compile an emergency agenda for the Beijing Winter Olympics. Once any extreme weather occurs during the Games, we will promptly start the management procedures for changing the competition schedule, make every effort to prepare for any emergency scenario and minimize the adverse effects of extreme weather on the Games.

All in all, the BOCOG will work with relevant departments to strengthen the meteorological service guarantees and ensure the smooth running of the Beijing Winter Olympic events. thanks.

CNR:

China's winter sports industry started relatively late, and there is a lack of high-level organizational talent. I would like to know how the BOCOG promotes the development and nurturing of talent based on the needs of hosting competitions? Thank you.

Yan Cheng:

Let me answer your question. Thank you for your attention to the organizational talent recruitment for the Winter Olympics and Paralympics. Indeed, just as you said, the foundation of China's ice and snow sports is relatively weak, and there is a lack of high-level organizing talents. Since its establishment, the BOCOG has conscientiously studied and implemented General Secretary Xi Jinping's important instructions on the preparation of the Winter Olympics and the cultivation of talent, fully implemented the new ideas, new strategies and new measures for talent work in the new era, and focused on selecting and promoting talents with a global perspective, and exploiting the institutional advantages to cultivate talents in a systematic way, all while striving to attract talents from across the world and give play to their expertise. Next, I would introduce the following aspects:

First, we have strengthened the organizing teams by introducing 86 policies for talents and establishing and improving the mechanisms for talents development and management, such as selecting officials, recruiting staff, experts, and interns, in order to pool more talented people. Particularly, we have launched international recruitment and selected a number of foreign staff who worked for previous OCOGs and returnees from overseas study, which, to some extent, have improved the BOCOG's talents structure.

Second, we have developed and fostered professional talents with a focus on cultivating domestic talents through our own efforts. During the past six years, we have altogether cultivated more than 4,000 domestic technicians, 23,000 event service and support staff, and a large number of technicians in ice-making and resurfacing, snow-making and pressing, and so on. As for the shortage of a small number of talents, we have stepped up international exchange and cooperation, selected and recruited 40 foreign experts from 18 nations, and opened 400 jobs globally to employ foreign professionals. Thus, we have advanced the cultivation of domestic talents to some extent while undertaking the task of hosting events.

Third, we have made good use of talents through multiple measures. As the 2022 Winter Olympics enters the stage of event trail operation, we have emphasized that all kinds of talents should stay in their positions in venues. We have sent selected members from BOCOG to work in venues, and also employed a group of temporary staff from all sectors in host cities to participate in hosting the Games. Meanwhile, we have arranged volunteers and contractors to come to work on time. To date, all operating teams in competition and non-competition venues have been established, and the staff is ready in their positions. All kinds of talents will play their due roles in the venues. Thank you. 

Cover News:

The influence of disability sports has extended far beyond the sports itself, which is the same as the sports for able-bodied people. In the 16th Paralympic Games, the Chinese delegation ranked first in the number of gold medals as well as the total medals for five consecutive events. The 2022 Beijing Winter Paralympic Games is approaching. What is the meaning of sports for people with disabilities? What effects does the preparation for the Winter Paralympics have on improving the condition for and developing the cause of people with disabilities? Thank you. 

Yang Jinkui:

I will answer this question. Thank you for your question and your concern for the development of disability sports. Sport has special meanings and important functions for people with disabilities. First, it helps in the rehabilitation, treatment, and building of strong bodies. People with disabilities take part in sports since their rehabilitation treatment, and they can improve their health condition and physical performance through exercise, which is beneficial to their recovery. 

Second, it helps them to break through limitations and overcoming obstacles. When playing sports, people with disabilities overcome their physical defects and physiological barriers with strong willpower, skills, and physical power, and thus display the creativity and value of humanity. 

Third, it helps them to embrace a wider world. The sports activities help people with disabilities go out of hospital wards and their houses to embrace a wider world so that they can connect with others, feel the warmth of society, rebuild confidence in life, and join in social activities like able-bodied people. 

Fourth, it helps them to influence and improve the society. People with disabilities demonstrate their ability by participating in sports activities. The spirit of unremitting self-improvement, optimism, and forging ahead influence and encourage society at large to better understand and care more about people with disabilities. Therefore, it helps to improve our civilization and build a more inclusive society. 

As for the second question, I believe that hosting the Beijing Winter Olympic Games and Paralympic Games will help to improve the conditions and the development of the cause of people with disabilities in many aspects. 

In terms of policy, all kinds of policy documents released to host the Winter Paralympics will serve as references for making beneficial and helpful policies for people with disabilities. In terms of infrastructure, the venues and facilities upgraded for the Winter Olympics and Paralympics can serve people with disabilities after the games and act as an example for how to improve the accessible environment of our cities. In terms of sports, more people with disabilities can know about, love, and participate in winter Paralympic sports, which demonstrates the Paralympic values of courage, determination, inspiration, and equity, and advances the building of an inclusive society. In terms of cultivating talents through preparation work, China has systematically cultivated a number of internationalized professionals who are familiar with winter Paralympic sports, have gained a good command of games rules, and understand their operating mechanisms. That has laid a solid foundation for developing the winter Paralympic sports in an all-rounded way and to a higher level. In terms of cultural publicity, we should spread knowledge about the Winter Paralympics, arrange training about Paralympics knowledge and skills to help people with disabilities, organize volunteer services, and hold relevant cultural activities. In these ways, the public will know more about the Paralympic spirit and the principle of accessibility and inclusivity. They will care more about and give more support to rehabilitation, education, employment, health care, and social security of people with disabilities, which will greatly advance social progress.

In general, this Winter Paralympics will create a fine environment for people with disabilities to better participate in social activities. The legacies of the Winter Paralympics will push forward the improvement of the conditions for people with disabilities in a long-lasting way. We are confident of that. Thank you. 

Russia Today:

I would like to ask about the details of the work for foreign journalists based in Beijing for the upcoming Olympic Games. In particular, I'd like to ask if the journalists who will work in the circled Olympic bubble will be able to move between Beijing, Yanqing, and Zhangjiakou, or whether they will need to stay only in one cluster. Also, I'd like to ask, will Beijing-based journalists be quarantined before and after Olympics, and if so for how many days? Thank you. 

Zhao Weidong:

I will answer this question. All registered journalists are concerned about this question. Actually, our first editions of COVID-19 playbook for the 2022 Winter Olympics and Paralympics have clarified these questions. Specifically speaking, the registered journalists under the closed-loop management can move freely between Beijing, Yanqing, and Zhangjiakou. Considering the still severe and complex global pandemic, in order to prevent possible epidemic spread and ensure the health and safety of all participating parties, according to China's epidemic prevention and control experience and relevant requirements, we have researched meticulously with the IOC and the IPC and decided to install a closed-loop management system for all Games participants. On Oct. 25, we published the first editions of the Beijing 2022 Playbooks with the IOC and the IPC. The second edition will be released this month. All the efforts are to ensure that the Beijing Olympics be held under the safest conditions. 

The closed-loop management will not limit the free movement of any registered person inside the closed-loop. Registered participants can move freely inside the closed-loop area, traveling in dedicated vehicles between games venues and accommodation facilities and between the three competition zones of Beijing, Yanqing, and Zhangjiakou.

We will provide people registering for the Beijing Winter Olympics with two efficient means of transportation to travel fast between the three competition zones and between venues within the same competition zone. The following are major modes of transportation:

First is the Beijing-Zhangjiakou high-speed railway that connects three competition zones. Registered personnel will travel by railway free of charge across three competition zones during the Winter Olympics. The high-speed railway is designed to reach 350 km per hour. The journey between Beijing and Yanqing takes about 20 minutes. The travel time between Beijing and Zhangjiakou will be about 50 minutes. We will also increase its train frequency to provide sufficient transportation capacity to meet demands of various stakeholders during the Games.

The second is the shuttle bus service. We will offer inter-zone transport by shuttle buses and a 24-hour shuttle bus service between three competition zones to meet transportation demands of the press and other stakeholders beyond operating times of the high-speed railway. In addition, you may have noticed that we have marked new lanes on some roads in Beijing. Participants will use these special lanes to shorten travel time between destinations effectively.

Apart from these, you may also use a toll card to take taxis, satisfying personalized transportation demands within the closed-loop. These taxis will be used by drivers designated by the BOCOG and will only travel within the permitted areas and between venues on the list of destinations within the loop. This is my answer to your question regarding movement between the three competition zones.

While regarding your question about going out of the loop after the Games, there are two situations. On the one hand, for those inbound personnel who are registered for the Beijing Winter Olympics and to leave China immediately after the Games, the BOCOG will provide nucleic acid testing service and related certificate for international travel within 48 hours before their departure. Also, a dedicated team will assist them in completing health declaration procedures within 24 hours before their departure. On the other hand, those inbound personnel who will stay after the Games to work or live in China will be placed in centralized quarantine according to specific circumstances. They can only leave the loop after the quarantine is over. Experts will decide the periods of quarantine based on different workplace scenarios. Related information can be found in the playbook for COVID-19 countermeasures. To sum up, if people are to stay in China after going out of the closed-loop, we will require them to be quarantined for some time to ensure safety in terms of epidemic prevention. 

Chosun Ilbo:

The playbook for COVID-19 countermeasures released in late October didn't contain specific provisions on the invitation to heads of state. All governments are paying much attention to this. Could you please give us some more information? Also, Chinese organizers made it clear that tickets for the Beijing 2022 Winter Olympics and Paralympics will be sold exclusively to spectators residing in the Chinese mainland who meet the requirements of COVID-19 countermeasures. Do you have any attendance restrictions, for example, the condition on the percentage of seating capacity? Thank you.

Zhao Weidong:

Let me answer your questions. First, the BOCOG has always upheld the concept of hosting the Games openly. Therefore, we welcome guests from all countries and all walks of life to engage in various forms of participation in the Beijing 2022 Winter Olympics and Paralympics. Jointly, we will deliver an excellent, extraordinary, and outstanding Winter Olympic Games for the world.

Regarding invitations to global leaders, distinguished international guests attending the Winter Olympics and Paralympics refer to heads of state, heads of government, sports ministers from countries participating in the Games, and other important government officials attending the Winter Paralympics. These international dignitaries attend the Winter Olympics and Paralympics at the invitation of their respective national and regional Olympic and Paralympic committees, instead of the IOC and the Olympic organizing committee of the host country. The national and regional committees also submit registration applications for their dignitaries and pay for related fees. You may consult with respective national and regional Olympic committees for related information. 

The public has also paid much attention to the audience of the Winter Olympics. According to key COVID-19 countermeasures jointly released by the BOCOG, the IOC, and the IPC, on September 30, we made it clear that tickets will not be sold to spectators residing outside of the Chinese mainland. As for detailed anti-epidemic requirements for spectators living in China's mainland, as well as arrangements for ticket selling, all these are being studied and developed and will be unveiled in time once established. We are also maintaining close communication with the IOC and the IPC. We will adjust measures regarding audience participation and ticket selling according to the latest epidemic prevention and control situation. Thank you. 

Southern Metropolis Daily:

The upcoming Winter Olympics has triggered increasing popularity for ice and snow tourism. So, my question is: How will Zhangjiakou integrate sports into the city and take the opportunity of the Winter Olympics to increase its influence?

Zhao Wenfeng:

I will answer this question. Thanks for your attention to Zhangjiakou. As we all know, with Beijing 2022 approaching, Zhangjiakou's ice and snow tourism brand is becoming more and more popular. In 2018, Zhangjiakou was listed as one of the top 10 ice and snow tourism cities in China. More specifically, Chongli District was rated a potential area for ice and snow tourism investment and was selected by the New York Times as one of the 52 global destinations worth visiting in 2019. Likewise, at the beginning of this year, Zhangjiakou was awarded the "2020 Chinese Winter Tourism City Case," and as recently as a few days ago, Taiwoo Resort Village was named the national sports tourism demonstration base. With the city's increasing popularity, more and more tourists are visiting Zhangjiakou to experience its winter scenery and realize their passion for ice and snow. During the 2020-2021 snow season, Zhangjiakou received 2.462 million tourists.

"The Olympic Games are brilliant because of the city, and the city is better because of the Olympic Games." Since successfully bidding for the Winter Olympics, ice and snow sports have gradually enjoyed a larger place in the public consciousness. With nine comprehensive ski resorts in the city, continuous improvements being made to relevant sporting facilities, an increasingly robust ice and snow sports education and training system, and the promotion and popularization of ice and snow sports in the city have achieved steady progress. Zhangjiakou has seen five million people participating in snow and ice sports so far, and the number is expected to reach 5.5 million by 2025. In terms of the ice and snow industry, we adhere to the notion that "ice and snow are also invaluable assets" to promote the development of the entirety of the ice and snow industry. At present, many world-famous ice and snow equipment manufacturers such as TechnoAlpin of Italy and MND of France have "settled" in Zhangjiakou and gone into operation. It is expected that by 2025, the city will introduce and cultivate more than 80 ice and snow equipment manufacturing enterprises.

In the post-Winter Olympics era, we will fully implement the plan to sustainably utilize the Winter Olympic legacy, seize the opportunity and take advantage of the situation.

First, promoting the sustainable utilization of venues and supporting facilities after the Games. We will study and formulate unique plans, clarify business operations, combine the utilization of venues after the Games with the overall development of the competition area, and maximize the advantages of transportation, location and facilities in Taizicheng area where the venues are located. We will also vigorously develop the economies of the event, exhibition and research, and build the core area of the Winter Olympic Games into an important base for sports, culture, science and technology, as well as business exchanges at home and abroad. We will ensure that the Olympic Games are wonderful and that the venues are functional, operable and sustainable after the Games. 

Second, speeding up the construction of the Beijing-Zhangjiakou sports cultural tourism belt. We will adhere to the driving strategy of sports, culture and tourism, formulate and implement the Construction Plan of Beijing–Zhangjiakou Sports Cultural Tourism Belt, accelerate the development of sports cultural tourism brand products, major projects and diversified business forms, and focus on building tourism products such as Chongli International Ice and Snow Tourism Resort, Yanhuai River Valley Grape Health Tourism Area and grass skyline leisure drive tourism area. We will also accelerate the construction of a sports cultural tourism industry chain that reflects the spirit of Zhangjiakou, and strive to build an international ice and snow sports and leisure tourism resort.

The third is to proactively improve the quality of the city of Zhangjiakou. Focusing on shaping the characteristics of a Winter Olympic city, we will build a number of urban infrastructure and public service facilities that meet international standards, construct a number of landmark urban architectural communities that reflect the Olympic cultural style and build a number of blocks with characteristics of an Olympic city. We will promote the leapfrog improvement of urban construction, management and service level, and build a Winter Olympic city brand with international influence. Thank you.

Beijing Radio & Television Station:

As we know, Yanqing district has just completed the "Experience Beijing" series of winter events, including the FIL Luge International Training Week and the FIL Luge World Cup. The FIL Luge World Cup, in particular, was the first world-class luge event held in China. Please brief us on the overall situation of the test activities. In addition, how did Yanqing district organize the events and guarantee the services? Thank you.

Yu Bo:

I will answer this question. Thank you and thanks to the media for your attention to the FIL Luge International Training Week and the FIL Luge World Cup. Let me first introduce these test activities in general. From Nov. 4 to 22, the Yanqing competition area of Beijing 2022 hosted the FIL Luge International Training Week and the FIL Luge World Cup. A total of 280 Chinese and foreign athletes, as well as team officials from 27 countries and regions participated in the events. In accordance with Winter Olympic standards and the requirements of "ensuring that all those in need are tested," we carried out comprehensive tests of the competition organization, epidemic prevention and control, television broadcasting, external support and other work.

The FIL Luge World Cup held in Yanqing marks the International Luge Federation (FIL)'s 2021-2022 season opener. It is also the first time that China held a World Cup level luge event. It is an important leg, in which athletes can meet their quota for the luge event of Beijing 2022, and its program is exactly the same as the Winter Olympics. During the World Cup, the National Sliding Center welcomed 300 spectators to the scene, making it the first test that included an audience for the "Experience Beijing" series.

On the whole, the guarantee of venue facilities is in place, the competition organization is stable and orderly, the epidemic prevention and control is accurate and effective, and the competition service is meticulous and thoughtful. FIL president Einars Fogelis gave a thumbs-up to the venues that comprise the National Sliding Center and the events during the FIL Luge International Training Week. "It's an amazing venue, it's very great and a nice present for our sport," he said, adding "From the athletes' side, you provide all what's necessary for the athletes, for the training and for the officials in the highest level."

Let me introduce the event organization and service guarantee. First, the command system is streamlined and efficient. The Yanqing competition area organizing committee has a venue group command center, which coordinates and dispatches various headquarters such as the sled and luge venues, Banquan comprehensive service center, comprehensive service support, urban operation and peripheral service support, effectively connecting those support services across various fields such as accommodation, catering, transportation, medical treatment and epidemic prevention through the daily operation schedule, so as to achieve the high quality and efficiency of all work inside and outside the venue.

Second, we organized the competition in an orderly and stable manner. The venue operation team built a seamless joint mechanism with the FIL, through which face-to-face communication was conducted on a daily basis to address relevant issues and collect and respond to athletes' concerns and needs in a timely manner. The hardware facilities and ice surfaces at the venue was consistently improved to ensure success for the training and competition. As the event organization got increasingly smooth and athletes grew more familiar with the race tracks, their speeds increased, with a recorded top instantaneous speed of 135.1 km/h. Noticeably, China's athlete won qualification for the Luge World Cup for the first time, creating history. 

Third, we have devised targeted and effective anti-epidemic measures. We have built a three-tiered system for epidemic prevention and control, namely "inside the closed-loop, outside the closed-loop and periphery," and have accordingly installed quarantine facilities, posted anti-epidemic tips and plugged loopholes. We have ensured separated management of personnel throughout transportation, board and lodging, and competition. We adopted a "loop within loop" approach for close contacts of confirmed cases found during the test event to avoid cross-infection. 

Fourth, we have provided meticulous and considerate services. In terms of medical care at the competition venue, we have maintained close contact with the FIL and clarified rescue routes. A total of four ambulances were on standby and provided medical services for 51 athletes. It took an average of three minutes to arrive at the sites of rescue. The shortest time it took to complete preliminary bandaging, diagnosis and treatment was six minutes. In terms of catering services, to lower the risk of cross infection, we divided the catering area, and the number of support personnel we provided meals and beverages to was 90,507 person-times. In terms of transportation, we had shuttle services available from the hotel to the competition venue, and the number of trips made reached 1,986, transporting personnel totaling 18,551 person-times, among which 3,759 were for athletes. Under the joint efforts of various parties, athletes and all the other relevant parties were appreciative of the competition services. Thank you. 

CRNTT:

Abundant snowfall is a foundation of the Winter Olympic Games. There have been reports that the snowfall in the host city of Beijing 2022 is relatively less, so successfully hosting the competitions largely depends on artificial snow. However, artificial snow may affect the environment as well as household water. How do you perceive this? How can Beijing 2022 achieve "snowfall freedom" in a scientific and green way? Thank you.

Yu Bo:

Thank you for your attention to the issue of snowfall. The National Alpine Ski Center began producing artificial snow on Nov. 15 and is estimated to complete snowmaking by the middle of next January. The Yanqing competition zone has adhered to the principles of storing water in multiple ways, recycling water, and conserving water with the aid of technology in a bid to meet the snowmaking water demands for the Games and avoid negative impacts on regional water safety and the ecological environment at the same time. Let me go into more details.

First, there are multiple ways of storing water. The National Alpine Ski Center preferred natural precipitation and overland runoff as its first choice of water resources for artificial snow production. Yanqing district boasts ample precipitation, and this year particularly, the accumulated amount of precipitation has reached 739.9 millimeters, which represents an increase of 231.6 millimeters compared to average annual amount over the past five years. Noticeably, the Yanqing competition zone had a snowfall of 19.5 millimeters, which was very heavy, on November 6 when Beijing welcomed its first snow this winter. Additionally, three reservoirs with a combined water-holding capacity of roughly 180,000 cubic meters have been built in the Yanqing competition zone to store surface water as much as possible for snowmaking and green conservation purposes. In addition to natural precipitation, the extra water required for snowmaking will be provided by Foyukou Reservoir and Baihepu Reservoir. According to our statistics, the amount of water required for the Games only accounts for 1.6 percent and 0.4 percent of the current water consumption of Yanqing district and its total amount of water resources respectively. Storing water in multiple ways has fully ensured the water needs of the National Alpine Ski Center for snowmaking.

Second, we adhere to the recycling use of water. The entire Yanqing competition zone has water-conservation measures in place which cover construction planning, engineering management and daily use. On the one hand, we designed measures for snowmelt to flow to a small reservoir through channels in the competition zone to be used for snowmaking during the next snow season and for daily green conservation. An internal recycling of snowmaking water is thus formed to conserve and protect water resources as much as possible. On the other hand, a sewage treatment station has been built in the competition zone as part of the municipal facilities for the Games. The reclaimed water will be used for road watering, greening, irrigation, toilet flushing and so on. These water recycling measures have significantly boosted the efficiency of water resource utilization.

Third, we adhere to technology-driven water conservation. The National Alpine Ski Center boasts the world's most advanced water-efficient snowmaking facilities and intelligent snowmaking system. Through real-time monitoring of the meteorological conditions, we are able to start the snowmakers under the most suitable conditions. Additionally, we can dynamically maintain the most ideal snowmaking efficiency in line with the external environment, so as to avoid any water resource waste. Thank you.

Zhao Wenfeng:

I will introduce the situation in Zhangjiakou. It is an international practice that whatever the amount of snowfall in a host city of the Winter Olympic Games, all the competition fields for snow events are required to maintain snowfield conditions with the aid of artificial snow in a bid to provide equal competition conditions for all athletes.

Chongli district, where the Zhangjiakou competition zone is located, has a continental monsoon climate with the typical characteristics of a mountain climate. Due to its topography, the precipitation in Chongli is significantly greater than that of its surrounding areas. By various measures, such as collecting overland runoff and snowmelt, we have effectively guaranteed the water needs for snowmaking and achieved both sustainable use of water resources and ecological environment protection. Efforts are mainly demonstrated in the following three ways.

First, we recognize the importance of conserving ecological water. We have coordinated the preparations for the Games with the improvement of the local ecological environment, and vigorously conserved water sources. The forest coverage rate in Chongli district has reached 67 percent now from the 52 percent in the bid year of 2015. In the core competition zone, the forest coverage rate has surpassed 80 percent. Precipitations in the urban area of Chongli and the core zone for the Winter Olympic Games have increased from 458 millimeters and 677 millimeters to this year's 537 millimeters and 730 millimeters, respectively. At the beginning of November, Zhangjiakou welcomed heavy snow and the maximum snowfall in the Games' core zone reached 26 centimeters, providing favorable conditions for snow use during the Games.

Second, we have paid special attention to optimizing surface water use. The core area of the 2022 Beijing Winter Olympics boasts a well-preserved ecological environment and abundant surface runoff resources. We established 11 open reservoirs, underground collection pools for snowmelt and landscape lakes at the Genting Snow Park and in the Guyangshu area, which have a total storage capacity of 530,000 cubic meters. In the Guyangshu area specifically, daily dynamic replenishment of regional surface runoff has reached 13,000 cubic meters, and surface runoff, together with the current storage capacity, can fully meet the snowmaking needs. 

Third, we have paid special attention to scientific water conservation. Efficient water-saving artificial snow-making equipment and intelligent snow-making systems have been applied at both of the venues, which will maintain the best efficiency for snow-making according to dynamic changes in the external environment, saving about 20 percent of water resources. Likewise, we have made timely snow storage plans, including 72 snow storage spots, which are designed to store snow up to 288,000 cubic meters, further reducing the required water for snow-making. We have also paid attention to artificial snow enhancement. Professional teams have been organized to carry out timely artificial snow enhancement operations according to weather conditions and cloud systems, guaranteeing the need for snow in a comprehensive way and through multiple channels. Thank you. 

MASTV:

I have a question about the pandemic. As cases of the Omicron variant of COVID-19 have been identified in many countries, will the latest pandemic situation have any impact on preparations for the Beijing Winter Olympics? Will you upgrade the current pandemic prevention and control measures? What kind of measures will the committee take to ensure safety and prevent the spread of the pandemic? Thank you. 

Zhao Weidong:

I will answer your questions. We are also paying close attention to relevant information about the Omicron variant, and monitoring and assessing its potential impact on the Beijing Winter Olympics. Relevant pandemic prevention and control measures stipulated in the Beijing 2022 Playbooks are based on rigorous and scientific assessments, which proved effective in ensuring safety and pandemic prevention and control during the recent test events. There can be no successful Olympic Games without the safety of epidemic prevention, so we have always made prevention and control work the top priority. During the Beijing Winter Olympics and the 2022 Paralympic Winter Games, we will implement a series of comprehensive prevention and control measures to minimize the risk of imported cases, guarantee the health of all participants as well as residents of the host cities, and ensure the safe and smooth running of the Winter Games as scheduled. 

Pandemic control is key to the success of the Beijing Winter Olympics, and the Beijing 2022 Playbooks is the foundation of epidemic prevention and control. Together with the IOC and the IPC, we have published the first editions of the Playbooks. Not only all overseas participants but also relevant staff at home must strictly follow the guidelines detailed in the Playbooks. So I hope that our media friends pay more attention to the Playbooks, as they are an important foundation for our epidemic prevention and control efforts. Together with the IOC and the IPC, we will release the second version of the Playbooks this month. As for the second version, we continue to make the health and safety of all participants and the Chinese public our top priority, as well as strengthening far-end control, strictly implementing vaccination policies, carrying out strict entry inspections and adhering to the closed-loop system after entry. As I just mentioned, the closed-loop management does not keep people in one place. Rather, it covers all Games-related areas which are connected by special transportation modes. The closed-loop management system not only satisfies the needs of participants but also adequately separates them from the Chinese public. We implement closed-loop management strictly. At the same time, we adhere to normalized prevention and control measures throughout the closed-loop management process. 

We have also incorporated the prevention and control work of the Winter Games into the unified epidemic prevention and control systems of local governments. The epidemic prevention and control work of Games-related areas and related activities has been included in the unified epidemic prevention and control management of local authorities. We will spare no effort to ensure that epidemic prevention and control measures are followed, strengthen efficient coordination, conduct internal and external linkage, and perform respective functions to jointly implement prevention and control measures and ensure the safety of all participants and epidemic prevention and control on the domestic level.

China Daily:

There are less than 100 days before the 2022 Paralympic Winter Games opens, and Paralympians from all over the world are looking forward to demonstrating their spirit of self-transcendence and hard work in Beijing, which, by the end of the Games, will have hosted both the Summer and Winter Olympics. What has the BOCOG done to organize a Paralympic Winter Games as successful as the Winter Olympics? Thank you. 

Yang Jinkui:

Let me answer your question. Thank you for your question. Since preparations began, the central government has attached great importance to the work that goes into the Beijing 2022 Paralympic Winter Games, and asked to integrate the Beijing 2022 Paralympic Winter Games into the overall preparations for the Winter Olympics while synchronizing planning and implementation with a same level of professionalism. Specific measures are as follows: 

First, establish a plan for the Beijing 2022 Paralympic Winter Games. The plan clearly specifies work objectives, key strategic tasks and supporting measures. 

Second, establish a workflow for simultaneous planning and implementation of the Paralympics and Winter Olympics. All departments and posts organize the preparations of the two events simultaneously to ensure that the same systems are in place and the same standards are met, such that they can achieve synchronous preparations for the two events.  

Third, efforts have been made to improve inclusive and accessible environments. We also publicize the notion that the accessible environment should not only serve the disabled community but also those who are able-bodied. We have raised the awareness of the need for accessibility at both the Winter Olympics and Paralympic Games, and established and improved the coordination mechanism for providing accessibility, released a guidebook on accessibility and technical indicators for the Beijing 2022 Winter Olympic and Paralympic Games, and organized regular venue surveys, inspections and guidance. Currently, barrier-free facilities for the Winter Paralympic Games venues and athletes' villages were completed at the same time as the main part of the venues. The barrier-free flow of main customer groups is clear and smooth, the construction of permanent barrier-free facilities meets all standards, goals of sustainable and humanized construction are clear, and the barrier-free environment of the host cities has been optimized and upgraded.  

Fourth, efforts have been made to improve the experience for disabled groups. We have raised and promoted the implementation of key tasks involved in 57 operational areas that address those with special needs. For example, providing accessible vehicles and having contracted hotels offer a portion of accessible rooms or wheelchair-friendly rooms. During the Winter Paralympic Games, there will be news conferences with sign language services and braille publications, barrier-free security channels, special medical and health services, special medicine and devices, maintenance services for wheelchairs and prostheses, and service manuals for our disabled attendees and participants will be provided. We will also strengthen personnel training to provide high-level services for customers with disabilities.  

Fifth, we have strengthened cultural promotion and public awareness. We have compiled the "Knowledge of Winter Paralympic Games Competitive Events," and launched six short videos introducing different events of the Winter Paralympics. We have implemented the "Excellence Program" of the IPC, organized preparation training for the Paralympic Games, and released the emblem, mascot, slogan, torch, medals, sports pictograms, clothing, commemorative coins, songs and other cultural products of the Winter Paralympics. We have carried out extensive training on Paralympic concepts, accessibility awareness and skills that can help persons with disabilities. We have endeavored to raise public awareness about the Olympic and the Paralympic spirit and values. On important occasions including the one-year countdown and the 100-day countdown to the Winter Paralympics, International Day of Persons with Disabilities and National Day for Helping the Disabled, we hosted activities and shared comprehensive and in-depth displays and reports on the various stages of preparation, effectively highlighting the Paralympic spirit and inspiring the whole of society to pay attention to, and support the Winter Paralympics. 

Through these efforts, we have streamlined the planning and design, facility construction, venue operation, competition organization, service guarantee, cultural promotion, market development, publicity, talent cultivation, heritage arrangements and other aspects of the preparatory work. This has provided fertile conditions for realizing the goal of " Two Games, Equal Splendor." Thank you.  

Reuters:

Could you please talk more about the medical service facilities and staff numbers for the Beijing Winter Olympics. For example, are there any operating rooms in the closed-loop that can handle accidental injuries? Are there any facilities for athletes to exercise if they are quarantined due to the pandemic? Thank you. 

Zhao Weidong:  

I'll answer your question. In the closed-loop, there are corresponding hospitals to deal with COVID-19 cases and accidental injuries. These hospitals are under strict pandemic prevention management and contain dedicated areas for Olympics-related patients, who will be completely separated from other patients. In July of this year, the BOCOG, together with the Beijing Municipal Health Commission and Hebei Provincial Health Commission, assessed the medical and health preparations of the designated hospitals for the Beijing Winter Olympics. This August, the health commissions of Beijing and Hebei adjusted the tasks and number of beds, while also assembling a team of experts in the infection-control departments to modify the routes for patient reception and treatment in the designated hospitals. To that end, full preparations have been made for medical services and epidemic prevention in the closed-loop. Thank you. 

Shangyou News:

A large number of people have been working at the venues to make sure the Games run smoothly, following a short window of preparation time, which poses challenges to their professionalism and ability to run the Games. How has the BOCOG conducted pre-Games training? Thank you.  

Yan Cheng:

Thank you. I'll answer this question. The BOCOG recognizes the importance of adequate training. Upon its establishment, the BOCOG made a series of top-level designs regarding the training work and provided training while building the organizer teams. We have established a tiered system of general training, specialized training, and training on venues and specific posts, with international training at the core. We have coordinated 568 training programs for a total of 57,000 person times, covering people including salaried employees of the Organizing Committee, staff from relevant government departments who are responsible for executing services, as well as volunteers from universities and colleges, personnel from various social sectors, contractors and venue owners.

Since the beginning of this year, we have established comprehensive training for general venue staff and those working in specific posts, which is based on the various stages of hosting the Games, and focused on improving the organizers' professionalism and abilities to run the Games. We have made efforts in the following main aspects:  

First, we conducted extensive international training. Relying on the "Beijing 2022 Learning Strategy" jointly implemented by the BOCOG and the IOC, as well as the "Excellence Program" co-conducted by the BOCOG and the IPC, we have launched targeted learning and training programs to improve the organizers' awareness of the Games' rules and their capabilities of running the Games. For example, since October, we have customized 10 courses for the director-level leadership of the competition venues, and another eight courses for non-competition venues, covering a total of 367 participants. The customized courses were co-designed with the IOC and the IPC, to improve the abilities and competence of participating directors. Moreover, from November to December, we offered 29 preparedness courses for the Winter Olympics and 41 similar courses for the Winter Paralympics to 3,883 participants. These examples demonstrate our firm grasp of the characteristics that underpin international training to meet the needs of hosting such a global winter multi-sport event.  

Second, we have proactively trained staff at venues and specific posts, which is doubtlessly an integral feature and requirement of the pre-Games stage. Following the guidelines and implementation arrangements of such training, the BOCOG has coordinated and launched 91 training projects in fields such as competition organization, venue operation, infrastructure and personnel management. To date, we have completed 65 projects, covering more than 4,500 people in charge of key operations of the venues. In line with training organized by the BOCOG, teams across multiple venues have carried out their own extensive training. They have focused on application scenario training and simulation exercises and provided multi-level and multi-domain training for their organizers. A total of 231 training programs have been organized, including the ice-making training at the National Speed Skating Oval (known as the Ice Ribbon), barrier-free training at the Ice Cube, and pandemic prevention training at the National Sleigh and Luge Center. These efforts have effectively closed any outstanding loopholes and enabled organizers to master the knowledge and skills, through hands-on experience, necessary to execute their duties in a short period of time.  

Third, we have continued to strengthen specialized training across the board. Since the second half of this year, we have offered 117 specialized training programs in areas such as power supply, timing and scoring, and medical services. We have advanced specialized training for different kinds of personnel in various industries, including domestic technical officials, ice makers, snowcat drivers, and ski lift ropeway operators. Our basic principle is to offer targeted and specialized training that reinforces any area of weakness. All kinds of professional personnel and workers have had the chance to hone their skills and grow into their roles through training and practice. The test events also examined the training effects on various types of workers.  

At the same time, business training for venue directors, language training for venue staff, and other general training projects of various kinds are also underway in a coordinated manner. All our organizers are making every effort to fully ready themselves for the Winter Olympics. Thank you.

Xing Huina:  

Due to time constraints, today's briefing is hereby concluded. Thank you to all our speakers and friends from the media. Goodbye.

Translated and edited by Wang Qian, Wang Yiming, Li Huiru, Zhang Rui, Liu Jianing, Liu Qiang, Li Xiao, Wang Yanfang, Xiang Bin, Zhou Jing, Qin Qi, Yuan Fang, Yang Xi, Liu Sitong, Xu Xiaoxuan, Zhang Junmian, David Ball, Jay Birbeck, Tom Arnstein and Drew Pittock. 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:

Wu Jianghao, assistant foreign minister

Wu Peng, director-general of the Department of African Affairs of the Ministry of Foreign Affairs

Chairperson:

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

Date:

Nov. 26, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference being held by the State Council Information Office (SCIO). Today, the SCIO issued a new white paper titled "China and Africa in the New Era: A Partnership of Equals." We are holding this press conference to introduce and interpret the white paper.

Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and Xi Jinping Thought on Diplomacy, the white paper documents the progress in China-Africa cooperation achieved since the 18th National Congress of the Communist Party of China (CPC), presents China's policy position on relations with African countries in the new era, and looks forward to the bright prospects for cooperation between the two sides and a China-Africa community of shared future in the new era. At around 21,000 Chinese characters, the white paper consists of foreword, main body and conclusion. The main text is divided into four parts: Building an Even Stronger China-Africa Community of Shared Future, All-Round China-Africa Cooperation in the New Era, Strengthening Mutual Support, and Breaking New Ground in China-Africa Relations.

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and the Foreign Languages Press. It is available at Xinhua Bookstore outlets across the country.

In order to help you gain a better understanding of the white paper, we have invited Mr. Wu Jianghao, assistant foreign minister, and Mr. Wu Peng, director-general of the Department of African Affairs of the Ministry of Foreign Affairs to attend today's press conference. They will introduce relevant information and answer your questions. Now, I will give the floor to Mr. Wu Jianghao.

Wu Jianghao:

Friends from the media, ladies and gentlemen, good morning. Thank you, Ms. Shou. I am very glad to introduce to you the newly released white paper "China and Africa in the New Era: A Partnership of Equals." This is the first white paper issued by the Chinese government on China-Africa cooperation, and the first of its kind released since the 18th CPC National Congress on China's cooperation with a specific region. I would like to take this opportunity to sincerely thank you, friends from the media, for your long-term care and support for China's diplomacy and in particular China-Africa relations. China is the world's largest developing country, and Africa is the continent with the largest number of developing countries. Shared past experiences and similar development course and targets have brought China and Africa closer together. China and Africa's traditional friendship has gained strong public support, and occupies a special historical position in China's overall diplomatic landscape.

Developing solidarity and cooperation with African countries has been a cornerstone of China's foreign policy, as well as a firm and longstanding strategy. China has firmly supported African countries in realizing their national independence and liberation, following development paths that fit their national conditions, and has made its due contribution to Africa's economic and social development, improvement of people's wellbeing, and its regional integration. African countries have provided firm support in the international arena for China's endeavors to safeguard its sovereignty, security and development interests. The two sides have enjoyed win-win cooperation and common development through pragmatic cooperation. China and Africa have always been a community of shared future.

Since the 18th CPC National Congress, President Xi Jinping has attached great importance to China-Africa relations, and personally drawn up a blueprint for China-Africa cooperation. At the Johannesburg Summit in 2015 and the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) in 2018, President Xi Jinping and African leaders unanimously agreed to upgrade China-Africa relations to a comprehensive strategic and cooperative partnership, and build a China-Africa community of shared future characterized by joint responsibility, win-win cooperation, happiness for all, cultural prosperity, common security, and harmony between humanity and nature. This has led China-Africa relations into a new era, pushed China-Africa cooperation to new and unprecedented heights, and set an example for building a global community of shared future. China and Africa have supported each other in confronting the grave challenges posed by COVID-19. The two sides jointly hosted the Extraordinary China-Africa Summit on Solidarity against COVID-19, writing a new chapter in China-Africa solidarity and friendship in times of crisis.

The white paper offers a comprehensive and systematic summary of new guiding ideas, practices and outcomes of Xi Jinping Thought on Diplomacy regarding China-Africa relations, and elaborates on the principles of sincerity, real results, amity and good faith, the principles of pursuing the greater good and shared interests, and the six-sphere integrated plan of building a China-Africa community of shared future proposed by President Xi Jinping. With a large amount of data and facts, the white paper showcases an omni-dimensional and wide-ranging framework of China-Africa cooperation, and the journey of the Chinese and African people working together and providing mutual assistance in the new era.

In two days, the Eighth Ministerial Conference of the FOCAC will open in Dakar, the capital of Senegal. President Xi Jinping will attend the opening ceremony via video link and deliver a keynote speech. In this context, we have released the white paper in order to explain China's policy toward Africa, showcase practices and outcomes of China-Africa cooperation in the new era, greet the Dakar conference, help the international community deepen its understanding of China-Africa cooperation, and offer China's experience and wisdom for international cooperation with Africa and global development cooperation.

The sixth plenary session of the 19th CPC Central Committee was successfully convened. China is implementing the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035, and marching toward the second centenary goal of building a modern socialist country. Africa is currently trying to overcome the impact of the pandemic and advance its economic recovery and regional integration. The two sides will enjoy broader cooperation space. In the face of new opportunities and challenges, China will work with African countries to steadfastly reinforce their traditional friendship, promote mutually beneficial cooperation, and safeguard common interests. The two sides will step up efforts to build an even stronger China-Africa community of shared future, and make a greater contribution to a global community of shared future.

Thank you. Next, my colleague and I are willing to answer your questions.

Shou Xiaoli:

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

CCTV:

As you said just now, the white paper is the first of its kind issued by the Chinese government since the 18th CPC National Congress on China's cooperation with a specific region. Why was China-Africa cooperation chosen as the subject? Thank you.

Wu Jianghao:

I think many of you may have the same question. We have chosen to issue a white paper on China-Africa cooperation because China-Africa relations are very special. This is mainly reflected in the following three aspects.

First, African countries and China are all developing countries. China and Africa enjoy a long-lasting friendship, and our relations grow closer with time. The Chinese and African peoples have forged a strong friendship as we struggled for national independence and liberation and carried out mutual support and wholehearted cooperation in seeking national rejuvenation and development. The two sides have been firmly supporting each other on issues involving each other's core interests and major concerns. Chairman Mao once said, "It's our African brothers who got the People's Republic of China back into the United Nations." No matter how the international situation changes in the future, I believe we will remain true to the original aspiration of China-Africa win-win cooperation and common development. China and Africa will always be the most reliable friends and sincere partners.

Second, China-Africa cooperation has become a distinct symbol in South-South cooperation and in international cooperation with Africa. Entering the new century, especially since the founding of FOCAC in 2000, practical cooperation between China and African countries has developed rapidly. China helped African countries build more than 80 large-scale power facilities and funded over 130 medical facilities, 45 sports venues, and over 170 schools. It also trained more than 160,000 personnel for Africa and built a series of flagship projects, including the AU Conference Center. Chinese companies have utilized various funds to help African countries build and upgrade more than 10,000 km of railways, nearly 100,000 km of highways, nearly 1,000 bridges and 100 ports. They have also helped build an installed power-generating capacity of 120 million kW, a communications backbone network of 150,000 km, and a network service covering nearly 700 million user terminals. The two sides have also seen expanded cooperation in emerging industries such as the digital economy, aerospace, clean energy, and new infrastructure. The fruitful results of China-Africa cooperation can be seen across the continent. It has improved the conditions for economic and social development in Africa and enhanced Africa's development capabilities, which brought tangible benefits to people in both China and Africa and created more favorable conditions for others in the international community to conduct cooperation with Africa.

Third, China and Africa set an exemplary model for building a global community of shared future. The overall objective in pursuing China's major country diplomacy is to promote the building of a new type of international relations and a global community of shared future. The future of our people is closely linked, and we share very similar views on major issues such as promoting the change of the international landscape and making international relations more democratic. The concept of a global community of shared future is highly compatible with Africa's goal of building a stronger African continent through unity, prosperity and rejuvenation, which is well received and supported by African countries. When China-Africa cooperation thrives, South-South cooperation will flourish. When China and Africa are fully developed, the world will be a better place. Cooperation in the new era will lay more solid foundations for building an even stronger China-Africa community of shared future and promote China-Africa relations to be at the forefront of building a global community of shared future. Thank you.

CNR:

We just noticed that you mentioned the upcoming ministerial conference of the FOCAC that is scheduled to take place in Senegal. Please detail this conference. In addition, we also want to know what new measures China will propose for cooperation with Africa at this conference? Thank you.

Wu Peng:

Thank you, and let me answer your questions. The Eighth Ministerial Conference of the FOCAC will be held on Nov. 29 and 30 in Dakar, the capital of Senegal, the African co-chair of FOCAC. On Nov. 28, there will be a senior official meeting to prepare for this forum, and I will also go to Dakar to attend this meeting.

You know the FOCAC is held every three years and serves as a major event between China and Africa. This forum is another grand meeting of our friendly China-Africa family since the 2018 FOCAC Beijing Summit. It is also the largest in-person diplomatic event jointly organized by China and overseas countries since the emergence of COVID-19. As we mentioned earlier, President Xi Jinping will attend the opening ceremony of the Eighth Ministerial Conference of the FOCAC and deliver a keynote speech through video link in Beijing. The Chinese government will also send a high-level delegation to Dakar to attend the conference. Amid the COVID-19 pandemic, China and Africa will still hold the conference as scheduled, reflecting the mutual trust and support of the two sides, as well as our determination and responsibility to jointly address the questions of the times and respond to changes in the world.

With the theme of "Deepen China-Africa Partnership and Promote Sustainable Development to Build a China-Africa Community of Shared Future in the New Era," the conference will review and assess the follow-up implementation of the outcomes of the 2018 FOCAC Beijing Summit as well as the joint China-Africa response to COVID-19, and chart the course for China-Africa relations for the next three years and more to come.

At this conference, China will elaborate on important policies on building a China-Africa community of shared future in the new era and announce new major measures for cooperation with Africa in the next three years. As I just said, President Xi Jinping will give a keynote speech. The main new measures of China's cooperation with Africa will be announced by President Xi Jinping. I won't say too much here, but I would like to share some information with you. For example, in the health sector, President Xi will announce major measures to help Africa fight against COVID-19. China will also introduce some new measures in the field of trade and investment at the request of the African side. Indeed, the FOCAC needs to improve its quality and efficiency and promote the transformation and upgrading in the next stage. Therefore, we will also jointly expand cooperation in areas of mutual interest, such as digital innovation and green development. Climate change is now a major challenge for all mankind, and China and Africa will do their part. The two sides will issue a special declaration on addressing climate change.

I would like to thank all journalists present here for your attention to this grand China-Africa cooperation event and welcome your reports. 

Thank you.

Southern Metropolis Daily:

The Belt and Road Initiative (BRI) is a major global cooperation initiative proposed by China. What is the attitude of Africa towards the BRI? Has China-Africa cooperation under the BRI achieved results? Thanks.

Wu Peng:

Thank you for your questions. Indeed, the BRI is a public product offered by China to the world, and it is very popular in Africa. Africa is a natural and historical extension of the BRI. Around 600 years ago, the Ming Dynasty admiral Zheng He's fleet once reached the east coast of Africa, near Malindi Island in Kenya. It is believed that the wrecked ship in one village there must be one of Zheng He's fleets. The Palace Museum also sent archaeologists there for excavations and found many examples of Ming Dynasty porcelain left by Zheng He's fleet. These are all archaeological evidence of the fleet's presence there.

The Maritime Silk Road has opened the road of business for China and Africa. The Belt and Road Initiative has earned active support and participation from African countries since its inception. To date, 52 of 53 African countries that have established diplomatic ties with China, as well as the African Union, have signed agreements on cooperation with China to promote the Belt and Road Initiative. Africa is now one of the most important cooperation parties under the initiative. That is to say, almost all African countries have joined in cooperation under the initiative. 

In recent years, connectivity between China and Africa under the Belt and Road Initiative has also expanded at a faster pace. A number of transport infrastructure projects have opened to traffic, including the Addis Ababa-Djibouti Railway, the famous Mombasa-Nairobi Standard Gauge Railway in Kenya, and the No. 1 National Highway of the Republic of the Congo. Projects such as the Doraleh Multi-Purpose Port in Djibouti and the Lome Container Terminal in Togo have been successful in increasing entrepot trade. Innumerable major projects under the initiative play an important role in boosting regional connectivity and integration. 

Currently, both China and Africa have entered a new development stage. China is promoting a new development paradigm with the domestic economy and international engagement providing mutual reinforcement, with the former as the mainstay. China's development will create more opportunities for Africa's development. With the official launch of the African Continental Free Trade Area on Jan. 1, 2021, Africa's economic integration is accelerating, providing more room for growth in China-Africa cooperation. The two sides will focus on boosting quality development and further align the goals of the Belt and Road Initiative with those of the AU's Agenda 2063, the UN 2030 Agenda for Sustainable Development. China and Africa will deepen practical cooperation in all fields and promote the sustainable and high-standard development of the Belt and Road that is beneficial to the people. Thank you. 

Kyodo News: 

My question is about the cooperation under the Belt and Road Initiative. There is a saying that China has caused debt traps for Africa. How much debt does Africa owe to China? How to solve the debt issue? Another question is more specific. Why is this FOCAC a ministerial conference instead of a summit? Will there be a summit in 2021? Thank you. 

Wu Peng:

I will answer the questions from Kyodo News. First, I will explain why it is a ministerial conference. We all know that the FOCAC was established in 2000, which was designed to be a ministerial conference when the mechanism started. In 2006, 2015, and 2018, we held three summits and ministerial conferences, respectively. Therefore, the forum mechanism is a ministerial conference. As Mr. Wu Jianghao introduced just now, Chinese President Xi Jinping will participate in the opening ceremony of this ministerial conference in Beijing via video link, which demonstrates the importance that the Chinese government has attached to China-Africa cooperation. This ministerial conference is the activity of FOCAC, which is held every three years. 

As for the question about debt that you mentioned, first of all, the so-called debt trap is already a cliché in my view, which has been disproved by a wide range of research conducted by governments, scholars, and institutes across the globe. The basic logic of the debt trap is that China provided unaffordable loans to Africa and would confiscate or take physical assets of African countries when they were unable to pay back the debts. I suggest that the journalist from Kyodo News research if there has been any project that was confiscated by China because African countries can't repay the debts. You won't find a single one. 

Not a single developing country has fallen into a so-called trap due to owing debts to China. The fact and statistics also prove that this saying is totally untenable. I can introduce to you China's attitude towards Africa's debt issue and the reasons. 

In recent years, Africa has actively promoted social development. However, capital deficiency remained a major bottleneck in reviving Africa. As a sincere and friendly partner of Africa, China has attached much importance to Africa's capital needs and the sustainability of their debts. China sticks to the intensive development philosophy and fully respects the will of the African people. Based on the realities in Africa, China has conducted practical and effective investment and financing cooperation with Africa, which is widely welcomed by African countries. 

Indeed, due to the outbreak of the COVID-19 pandemic, some African countries have been confronted with temporary difficulties. China supports reducing the debt burden on African countries and is actively implementing the G20 Debt Service Suspension Initiative (DSSI). Among G20 members, China ranks first in terms of the amount of deferred debt, having signed debt service suspension agreements or reached consensus with 19 African countries. China supports extending the DSSI until the end of 2021, and is working with relevant members to implement the common framework for debt treatments beyond DSSI. The creditor committees of Chad and Ethiopia have already been set up under the common framework, with China and France serving as co-chairs of the Ethiopian Creditor Committee. 

China works with relevant parties in supporting the debt reduction and suspension for countries facing an extremely serious epidemic and under severe pressure case by case. China has announced an exemption from debt incurred in the form of interest-free Chinese government loans due to mature by the end of 2018. It will apply to Africa's least developed countries, heavily indebted and poor countries, landlocked developing countries, and small island developing countries that have diplomatic relations with China. During the COVID-19 pandemic, China canceled the outstanding debts of 15 African countries in the form of interest-free loans that matured at the end of 2020. I think that China remains committed to making its contribution. 

Africa has achieved remarkable development results over recent years. It is of vital importance to restore and continue the development momentum in the face of the pandemic. China stands ready to work with the international community, stick to the principle of "joint action and fair burden sharing," and implement the Debt Service Suspension Initiative and the common framework for debt treatments beyond DSSI. China supports that those rich countries lend a proportion of their allocation of International Monetary Fund Special Drawing Rights to African countries in need. We also hope that multilateral financial institutions and commercial creditors will take active and concrete actions in expanding investment in Africa and support Africa to achieve economic independence and sustainable development, and eradicate the root causes of debt issues. 

It must rely on development to solve Africa's debt issues. African countries are confident in their development prospects. Therefore, we believe that both China and Africa are resolute in solving temporary difficulties that face Africa. 

Thank you. 

Wu Jianghao:

The "debt trap" rhetoric, which has been frequently hyped in recent years, is actually untenable. Developing countries have their needs for development, and funds are crucial to ensure their development. It is not reasonable to consider the money offered by the Western countries and Japan to developing countries as "official development assistance (ODA)," while those offered by China create a "debt trap." This is untenable. The attitude of recipient countries should not be neglected as well. Has any Western media outlet found a developing country that has accused China of making them fall into a "debt trap"? I don't think so. The "debt trap" rhetoric is fabricated by Western governments and media outlets.

Japan used the loans from the World Bank to implement its Shinkansen project many years ago, and its debts were not paid off until a few years ago. Is it reasonable to argue that the World Bank created a debt trap for Japan? With fairness and justice, it would be easy for us to tell how untenable this argument is. Thank you.

Red Star News:

The COVID-19 pandemic is still ravaging the world and hampering international cooperation. What measures have China and African countries adopted to deal with challenges brought about by the pandemic? Thank you.  

Wu Peng:

Thank you for your question. Indeed, the COVID-19 pandemic is still raging, and how to address the challenge is something that concerns all countries. Confronted by COVID-19, China and Africa have withstood a severe challenge, helping each other and fighting side by side to defeat the pandemic through solidarity and cooperation.

In June 2020, the Extraordinary China-Africa Summit on Solidarity against COVID-19 was held via video link, making China the first country in the world to convene an anti-pandemic summit with Africa. At the summit, President Xi Jinping called for the accelerated implementation of the outcomes of the FOCAC Beijing Summit, with greater priority to be given to cooperation in the areas of public health, economic reopening, and people's livelihoods. He also announced a series of measures regarding anti-pandemic assistance to Africa, debt relief, debt service suspension, and economic reopening, which have been highly praised and widely welcomed in Africa. Since the summit, the two sides have closely worked together on pandemic prevention and control, resuming economic activity, and progressing China-Africa anti-pandemic cooperation.

Nearly 100,000 Chinese technicians and service workers stood fast at their posts, and a lot of China-invested companies went to Africa to facilitate the reopening of the plants and the projects there, which, therefore, ensured more than 1,100 China-Africa cooperation projects operating despite the pandemic. Thanks to the joint efforts of China and African countries, many major projects have been completed and made important progress, making a great contribution to the local fight against COVID-19 and ensuring people's livelihood improvement and economic recovery. Despite the pandemic, China-Africa cooperation has achieved remarkable results and has been resilient.

After COVID-19 struck Africa, China immediately offered humanitarian assistance, the largest such program in scale and the most difficult to implement since the founding of the PRC. It is challenging to ensure the delivery of the anti-pandemic materials to Africa due to the long distance and inconvenient transportation. Despite this, we have overcome the difficulties. 

In coordination with local governments, enterprises, and social organizations, the Central Government of China has provided emergency anti-pandemic supplies to 53 African countries and the AU based on their respective needs, with these emergency supplies reaching almost all areas across the continent. China has also actively shared its anti-epidemic experience with African countries and dispatched anti-epidemic medical expert groups or short-term anti-epidemic medical teams to 17 African countries to fight the epidemic alongside local people. At the beginning of this year, it pushed for the earlier start of the construction of the headquarters of the Africa Center for Disease Control and Prevention (Africa CDC), a project assisted by China. The project is undergoing rapid progress, and we are confident that it will be completed in about two years. To help African countries cope with the pandemic and overcome temporary difficulties, China has actively implemented the G20's Debt Service Suspension Initiative (DSSI), which I have provided some information about. 

Moreover, China actively honors its commitment to making vaccines a global public good and has taken the lead to supply vaccines to Africa. So far, China has provided nearly 200 million doses of vaccine to Africa. Chinese enterprises are actively engaging in joint vaccine production in Africa with local firms, which is something Africa really needs.

The pandemic is still raging, posing challenges to socio-economic development in Africa and disrupting the people-to-people exchange between China and Africa. As such, cooperation on public health will be one of the major focuses at the Ministerial Conference of FOCAC in Dakar. As I mentioned earlier, China is ready to continue its support for African countries in their fight against the pandemic in accordance with the pandemic situation and the willingness of relevant countries. China and Africa are confident that we will beat the virus, and promote China-Africa cooperation to ensure high-quality development. Thank you. 

China News Service:

The international community is paying more attention to Africa's development. Many countries outside the region are actively engaging in cooperation with African countries. What do you think of the competition and cooperation between China and other countries in Africa? Thank you.

Wu Jianghao:

China and Africa have a long history of cooperation, such as the Tanzania-Zambia Railway (TAZARA). China-Africa cooperation has witnessed rapid progress over the past decade, and areas of cooperation have also been expanded. With China's increased investment, remarkable outcomes have been made. In this regard, such cooperation is driving more countries to invest in Africa. I think it is a good thing for Africa to get more investment. As a friend of Africa, we are also very delighted to see that. It is the common responsibility of the international community to support Africa's development. China has an open and welcoming attitude toward cooperation that the international community and countries around the world would like to develop with African countries. We believe that Africa is a broad stage for international cooperation rather than an arena for competition among major countries. Moreover, we believe that cooperation with African countries should be carried out on the basis of respecting their sovereignty and true needs, listening to their voice, and give full play to our respective strengths so as to bring tangible benefits to the African people.

President Xi Jinping proposed the Global Development Initiative at the general debate of the 76th session of the United Nations General Assembly this September in an effort to speed up the implementation of the 2030 Agenda for Sustainable Development. The initiative has received broad welcome and support from Africa countries as Africa will be one of the main beneficiaries of the initiative. This May, China and African countries jointly launched the Initiative on Partnership for Africa's Development, aiming to build consensus and add new impetuses to an early victory against COVID-19 and the realization of sustainable development in Africa. China will continue to enhance cooperation with African countries based on the correct concept of upholding justice and joint interests, and wishes to carry out dialogues, exchanges, and cooperation with various parties in this regard.

When we carry forward the joint building of the Belt and Road, an important aspect is triangular cooperation, which, of course, also applies in Africa. At the same time, we welcome more countries and international organizations to join in the Global Development Initiative and the Initiative on Partnership for Africa's Development to form international synergy in supporting African development and helping African countries in their pursuit of stronger, greener, and healthier development. Thank you.

Thecover.cn:

Would you please introduce the China-Africa infrastructure cooperation? Has the COVID-19 pandemic affected cooperation? Are you considering new models for future cooperation? Thanks.  

Wu Peng:

I will take your questions, thank you. Indeed, infrastructure is a traditional and much-watched area in China-Africa economic and trade cooperation, which indicates infrastructure cooperation has made great gains. The projects implemented by China's enterprises have effectively improved infrastructure connectivity in Africa and boosted local social and economic development. Just now, we listed relative data and projects, showing what we have achieved there. For example, since the FOCAC was set up, China has used various funds to help African countries build more than 10,000 km of railway and 100,000 km of highway. We mentioned this just now. 

It is true that COVID-19 has disrupted China-Africa personnel exchanges and cooperation. However, we didn't press the "pause button" and managed to continue the implementation of China-Africa projects amid the pandemic, and a batch of major projects have made great progress. For example, the passenger flows and cargo volumes of the Chinese-built Mombasa-Nairobi Standard Gauge Railway (SGR) in Kenya and the Ethiopia-Djibouti railway have increased sharply amid the pandemic, as the flow of personnel and trucks was inconveniently limited due to cross-border COVID-19 measures. This proves that infrastructure plays the role of the artery amid the COVID-19 pandemic and makes a great contribution to the economic development and pandemic prevention and control in the two countries and in Africa. China's government encourages enterprises to enhance infrastructure cooperation with African countries, and to seize new opportunities to extend industrial chains and cultivate new models based on the consolidation of traditional advantages. For instance, given the strained financial situation in some African countries, many Chinese enterprises launched infrastructure projects under PPP (public-private partnership) and BOT (Build-Operate-Transfer) models, such as Nigeria's Lekki Deep Sea Port and Kenya's airport expressway. Thus, China encourages and supports its enterprises to transform and upgrade cooperation via new models. 

At the upcoming FOCAC conference, we will roll out new measures for cooperation in our traditional area of infrastructure to further promote mutually beneficial and win-win China-Africa cooperation. Thank you.

China Youth Daily:

Nowadays, the world is increasingly polarized, and separatism is on the rise. The white paper was issued against such a backdrop. My question is, what is the significance of holding the FOCAC conference and highlighting China-Africa cooperation against such a backdrop? 

Wu Peng:

You posed a very big question. I think what you are referring to is what is the significance of China-Africa cooperation and FOCAC in terms of international relations. I will follow what Mr. Wu Jianghao has said just now. We always hold that demands from Africa should be the core consideration of China-Africa cooperation or other international cooperation with African countries. As Mr. Wu Jianghao said, Africa should be a stage for international cooperation, not an arena for competition among major countries. As the head of the department of African affairs of China's Ministry of Foreign Affairs, I am occupied with considering the needs of African countries and China-Africa cooperative projects every day. I barely have time to think about how other countries see China-Africa cooperation. You asked about the significance of FOCAC. Africa has encountered serious but temporary difficulties. The pandemic caused the most serious economic recession in half a century in Africa in 2020, but in 2021 the economy has recovered with good momentum. The impact of COVID-19 will not disappear in the short term, there is still a lot of work to be done to achieve sustainable development, but African countries and China have the confidence to overcome these difficulties. 

What's the significance of China-Africa cooperation and the FOCAC? I think that, for one thing, China and Africa have entered new development stages, and the advantages of their economic complementarity have become more obvious. China is accelerating the fostering of a new development paradigm and is dedicated to advancing opening-up to a higher level. The newly-established African Continental Free Trade Area also taps into the vast market potential of the continent's 1.3 billion people and its $3.4 trillion economy. We must be aware of the situation and hold a long-term and progressive point of view when cooperating with Africa. Africa has made significant progress seeking economic strength through unity and promoting economic integration, and this has achieved substantial growth momentum into its economy. As a result, China and Africa's development has become even more complementary, and the mutually beneficial cooperation between the two sides has even brighter prospects.

In addition, the latest round of the worldwide sci-tech revolution and industrial transformation has created opportunities for us to deepen China-Africa cooperation. Currently, China-Africa cooperation is seeing sound momentum and is transitioning from a government-led approach to a market-oriented model, from commodity trade to industrial capacity cooperation, and from project contracting to investment operations. Moreover, the pandemic has created new opportunities for collaboration in the internet economy, 5G, healthcare, the supply of industrial chains and other areas both within Africa and between the continent and China, bringing about massive potential for China-Africa cooperation.

China's resolve to enhance cooperation with Africa will not change due to the pandemic or temporary economic recession. The direction of our partnership will remain unchanged, and the actions we take will not be weakened. China will continue upholding the principles of sincerity, real results, amity and good faith, as well as the principles of pursuing the greater good and shared interests, so as to work with our African friends to properly tackle challenges facing China-Africa cooperation under the new circumstances. Looking beyond the pandemic, China will keep its relations with Africa abreast of the times and forge ahead to inject new vitality into the cooperation between the two sides and bring tangible benefits to people in China and Africa.

Thank you.

Hong Kong Bauhinia Magazine:

What achievements have been made in people-to-people exchanges between China and Africa in recent years? How can we make further progress in this aspect? Thank you.

Wu Peng:

Thank you for your questions. People-to-people exchanges are among the essential parts of China-Africa cooperation, because it is the public support for exchanging between the two sides. Therefore, China has always attached great importance to interacting with people in Africa, speaking with them, listening to them, responding to their concerns and implementing China-Africa cooperation in a way that helps fulfill their dreams.

As an old Chinese saying goes, "State-to-state relations thrive when there is a friendship between the peoples." "Cultural prosperity" is one of the critical aspects of building a China-Africa community of shared future. The two sides have seen diverse people-to-people exchange activities in recent years. We have held many "Year of an African Country" events, "Year of Culture" programs and "Chinese and Africa Cultures in Focus" projects. Other programs include the China-Africa Youth Festival, think tank forums, media cooperation forums, and joint exchanges projects, to name a few. There are also Confucius Institutes and cultural centers. The two sides have established 61 Confucius Institutes and 48 Confucius Classrooms in Africa, and the numbers keep growing. There are also 160 pairings of sister provinces or cities between China and African countries. It's fair to say that the two sides have an increasingly profound understanding of each other.

Given the upcoming meeting of the FOCAC, we have launched an online campaign collecting video and photographic works from people in Africa. I am very impressed by some of the pieces collected. These works reflect ordinary people's point of view on China-Africa cooperation and tell stories about how these people benefit from the cooperation. I find them very touching. I recommend our friends from the media to take a look at these works, which, together with news information, are available on the Ministry of Foreign Affairs website. You may find some exciting news topics from them.

Under the current circumstance, people-to-people exchanges, especially exchanges with people from all walks of life in Africa, is still an essential aspect of our work. We need to expand the public support of the development of China and Africa and strengthen the bond between the people of the two sides. Thank you.

Shou Xiaoli:

Next will be the last question due to time constraints.

Jiemian News:

In recent years, Chinese and African companies have jointly built many cross-border e-commerce platforms, via which African products like coffee can enter ordinary Chinese families. Will the digital economy become a new highlight of China-Africa cooperation? What is your view on the prospects for this area of cooperation? Thank you.

Wu Peng:

You must have closely followed the situation of China-Africa cooperation. The questions are well to the point. Indeed, the digital economy has become a new highlight of China-Africa cooperation. In recent years, China has made great efforts in promoting China-Africa cooperation in the digital economy. By doing so, China is helping African countries eliminate the digital divide and seize the opportunity of an information revolution.

First of all, infrastructure is essential in the development of the digital economy and e-commerce. Here I'm talking about the "new types of infrastructure." China has made significant contributions to building digital infrastructure in Africa. Our companies have utilized various funds to help African countries with fiber-optic cable projects and wireless telecommunications projects. Instead of just sitting in the office, our engineers and technicians have kept working in the wild, including valleys, fields, and mountains. Kilometer by kilometer, they have worked together with their African peers to build plenty of digital infrastructure projects on the continent.

A possible stereotype about Africa is that the continent is less advanced in developing the digital economy. Well, this is true. However, with a large young population and relatively high internet and mobile phone coverage, Africa has enormous potential in this area. As for the need of African countries for infrastructure such as the servers providing cloud services, China has developed many digital centers and intelligent cities in response to their requests.

Another concern of African countries is how to advance China-Africa cooperation via the digital economy and e-commerce platforms. This September, we launched the African Products Online Promoting Season. The three-month campaign has achieved satisfying results. Many ambassadors of African countries to China promoted their local products on e-commerce platforms, such as oranges from South Africa, coffee from Ethiopia and Tanzania, and chili peppers from Rwanda. Such promotional activities have stimulated a surge in consumption, though the volume may not be as massive as during the Singles' Day shopping spree, yet good enough considering the economic sizes of those countries. In my view, significant progress has already been made.

E-commerce platforms have also helped featured products from Africa to access the Chinese market gradually. I once saw Tanzanian coffee served at a Starbucks in Beijing. For me, it was a delightful surprise. What's more, Hunan, a Chinese province where local dishes are quite spicy and full of chili peppers, has signed an agreement with Rwanda in Africa on trade in dried chili peppers. Rwanda is a small country by area, and its chili peppers have a unique flavor. In addition to planting chili peppers on its land, Rwanda has also rented more fields in neighboring countries to supply Hunan with enough chili peppers. The need for chili peppers in a single province in China is beyond the capacity of Rwanda. All the above are examples of new business opportunities triggered by new types of the digital economy for African countries. Of course, the digital economy covers many other areas, including digital currency and online payments. Chinese companies have also contributed a lot in these areas in Africa. As far as I know, 60% to 70% of the mobile payment services of one African country are provided by a platform jointly launched by African and Chinese companies. More and more new business forms, including mobile payment systems and digital currency services, have developed in Africa, making here a continent full of hope and potential to give play to its late starter's advantage and achieve leapfrog development in new areas.

Thank you.

Shou Xiaoli:

Thank you, Mr. Wu Jianghao and Mr. Wu Peng. And thank you to all journalists for their participation. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Zhang Liying, Wang Qian, Wang Yiming, Zhang Rui, Liu Jianing, Huang Shan, Gong Yingchun, Ma Yujia, Wang Yanfang, Yuan Fang, Zhu Bochen, Chen Xia, Li Xiao, Li Huiru, David Ball, Jay Birbeck, and Tom Arnstein. 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:

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

Yan Dong, director general of the Department of WTO Affairs of the Ministry of Commerce

Chairperson:

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

Date:

Oct. 28, 2021

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). At this press conference, we will brief you on the World Trade Organization's (WTO) eighth trade policy review of China and answer your questions. Today, we are joined by Mr. Wang Shouwen, vice minister of commerce and deputy China international trade representative, as well as Mr. Yan Dong, director general of the Department of WTO Affairs of the Ministry of Commerce.

Next, I'll give the floor to Mr. Wang Shouwen.

Wang Shouwen:

Friends from the media, good morning. The WTO conducted its eighth trade policy review of China via video link on Oct. 20 and 22. At today's press conference, I'd like to brief you on the trade policy review. Welcome, and thank you for attending this press conference.  

The trade policy review is one of the WTO's three main functions, with the other two being the negotiation function and the dispute settlement mechanism. As you know, the dispute settlement mechanism is facing a crisis, and the negotiation function is faced with great difficulty. But it is good to see that the trade policy review function is continuing as normal. China attaches great importance to these three functions. The trade policy review function can ensure the transparency of WTO members' trade policies so that members can point out each other's problems to avoid misunderstandings and possible trade disputes in the future. This has played a very important role in promoting the smooth operation of the multilateral trading system.  

Since its accession to the WTO in 2001, China has attached great importance to the WTO's trade policy review. For every review, we have invested lots of effort, made meticulous preparations and taken every question other members posed to us seriously. This fully demonstrates China's commitment to the multilateral trading system and the importance China attaches to the trade policy review system.  

I myself have participated in four of the WTO's trade policy reviews of China, including this one. Most of the trade policy reviews were held in Geneva, but the review this year was conducted via video link due to the pandemic. The WTO has reviewed China's trade policy many times, from which we have summarized the following characteristics:  

First, the number of reviews China has undergone is relatively large. Since its accession to the WTO, China has gone through nine transitional reviews and eight trade policy reviews, more than any other WTO member. The United States ranks second, having received a total of nine reviews since 2001.  

Second, the number of questions other members posed to China is the most. For almost every review, the number of questions raised by other members reached a new high. This time, for example, we received 2,562 questions from 39 members, about 1.5 times as many as that of the U.S., which received more than 1,700 questions for their last review.

Third, the questions posed to China cover a wide range of areas, including trade in goods, trade in services, intellectual property rights and investment. The Chinese government attaches great importance, and in 2002, we set up an inter-ministerial coordination mechanism on trade policy review. Led by the Ministry of Commerce and involving more than 60 departments, the mechanism carefully analyzes and responds to the questions raised by other members.  

The number of questions raised by WTO members during the first phase (Sept. 29-Oct. 6) of the review reached 2,151. To answer these questions, we organized 62 departments to work overtime during the National Day holiday (Oct. 1-7) to conduct in-depth analysis of the questions and fully understand members' concerns. We responded to the questions by Oct. 19 in strict accordance with the time limit set by the WTO. After Oct. 6, additional questions were posed which we needed to answer within a month of Oct. 22. Responses totaling 400,000 words in Chinese and English have been made to questions of the first phase alone. 

During this review, Wang Wentao, minister of commerce and head of the Chinese delegation, highlighted three aspects in his keynote speech. First, through unremitting efforts and hard work as well as long-term commitment to the reform and opening-up policy, China has secured leapfrog economic growth, which has provided great opportunities for the world and made notable contributions to global economic development. Second, over the past 20 years since its accession to the WTO, China has strictly abided by WTO rules and earnestly delivered its commitments, serving as a firm supporter, active participant and important contributor for the multilateral trading system. Third, China has taken concrete actions to support international cooperation against COVID-19. At this review meeting, China also introduced in detail its development of economic and trade policies, and participation in the WTO's work since its seventh review in July 2018.  

Representatives from 65 WTO members spoke at the meeting of this review and made positive comments about China. First, they recognized that China has actively participated in the work of the WTO, keenly delivered its accession commitments, earnestly engaged in the fisheries subsidies negotiations, played a leading role in the investment facilitation negotiation, and played a constructive role in the e-commerce negotiations. Second, they spoke highly of China's important role in the international cooperation against COVID-19 and appreciated China's support for the WTO's early decision to waive intellectual property rights on COVID-19 vaccines. Third, they thanked China for granting tariff-free treatment of imported products from the least developed countries (LDCs) and helping other developing members and LDCs integrate into the multilateral trading system. Fourth, they fully recognized China for actively lowering tariffs, shortening the negative list for foreign investment, widening market access, actively promoting trade and investment liberalization and facilitation, and providing a broad market for all other WTO members. Fifth, they spoke positively of the great potential of the Belt and Road Initiative (BRI) in promoting trade and economic cooperation among relevant countries and bringing more development opportunities to partners.

As I've mentioned before, the trade policy review provides a very good platform for communication and dialogue. On this platform, member states can raise questions and avoid further misunderstandings through frank exchanges. During this meeting, member states have learned about China's economic and trade policies, such as the Belt and Road Initiative, transparency, intellectual property rights (IPR) protection, government procurement, state-owned enterprises, industries with overcapacity, dual circulation and trade surplus. In response to their concerns, we have given them written answers or delivered speeches during the conference. We have clarified and elaborated on these questions to help them better understand the situation. We also pointed out that, due to the limited time of the review – which only takes place for two to three days – we cannot address every aspect or fully explain all of them during the conference. So we would like to further our communication with other member states within the WTO framework. 

That concludes my briefing about the WTO's eighth trade policy review of China. Together with my colleague, Yan Dong, director general of the Department of WTO Affairs of the Ministry of Commerce, I'd like to take your questions. Thanks. 

Xing Huina:

Now the floor is open to questions. Please identify your media outlet before raising questions.

CCTV:

What is China's view on the WTO's eighth trade policy review of China? What was achieved through this review?

Wang Shouwen:

Thank you for the questions. I just provided a brief about the review. In accordance with the existing rules of the WTO, China undergoes a WTO review every three years, with the last one having occurred in 2018. As such, this year marked the eighth trade policy review. In general, the review is routine work, but it has diversified content, meaning it delivers fruitful results and meets our expectations. It also demonstrates that the WTO's trade policy review, as one of the three pillars of the WTO, is still working well. Member states recognize the importance of the review and actively participate in it. Due to the impacts of COVID-19, we gathered online, and 65 representatives delivered their speeches during the conference. A record high of 2,562 questions were raised at the meeting, which was 16% higher than the number of questions raised during the seventh review in 2018. So this is a successful review. 

People raised abundant and diverse questions at the meeting. First, questions about the related agreements of the WTO. For example, regarding the goods trade, many have been concerned about China's implementation of the Trade Facilitation Agreement. In terms of the service trade, they have been curious about whether related regulations of China's Cybersecurity Law are in accordance with WTO's General Agreement on Trade in Services. On the subject of IPR protection, people have been interested to know whether pertinent information can be released when ruling on cases related to IPR protection, or whether they are in accordance with regulations outlined in the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights. Second, WTO member states have raised questions that are beyond the framework of the WTO. These can be seen as their hopes or expectations. For example, they expect that China will further open its market, ease foreign access to the market, shorten the negative lists for foreign investment, and advance the replication and promotion of the achievements of institutional innovation made in pilot free trade zones to the whole country. We fully understand their concerns and expectations. For example, they would like to enter China's market. The pilot free trade zones have been progressing well. However, the current zones only cover a small area. They have been curious about whether the pilot free trade zones will be expanded nationwide so that they can enjoy easier access to the whole market of China. China has become a major trade country of the WTO's more than 120 member states. These member states have many expectations and raised abundant and diverse questions at the meeting.

The results achieved during the eighth policy trade review are as follows:

First, we elaborated on China's policies. Before the review meeting, we prepared a declaration by the Chinese government on China's policies, which is more than 20,000 characters. Today, we also brought the Chinese and English versions of the document to the press conference. You may read about it. In the declaration, we explain the development and changes of China's latest trade policies, through which people may understand China's efforts and determination to push forward its reform and opening-up. At the same time, the secretariat of the WTO also prepared a report on China's trade policies from their perspective. Through these two documents, member states of the WTO can glean a deeper understanding of the changes to China's trade policies over the past three years. 

Second, we explained and clarified responses to the concrete concerns of member states. Some of the member states were a bit confused about the direction of China's policies and had questions about it. For example, they worry about the new development paradigm of "dual circulation" proposed by China. They worry that fostering the new development paradigm means China will slow down its steps of opening-up. We have explained it. President Xi Jinping has, on many occasions, stressed that the "dual circulation" is by no means a closed domestic loop, but a more open system that includes domestic circulation as well as international circulation. Some member states are worried about forced technology transfers in China. In response, we explained that China's revised Administrative License Law and the newly-adopted Foreign Investment Law both clearly stipulate that no administrative department or its staff members shall force any transfer of technology by administrative means.

Third, more than 60 departments that took part in the eighth trade policy review conducted in-depth research on the questions of member states and gained a better understanding of their concerns. It would be helpful for us to further improve our trade policies and practices in the future, to promote trade and investment relationships with other member states of the WTO, and avoid misunderstandings and possible trade conflicts. 

Fourth, the trade policy review of China this time has further strengthened the recognition of WTO members on the values of the organization and the significance of trade policy review. Therefore, it can help boost people's confidence in the WTO when the organization confronts difficulties. Thank you. 

Phoenix TV:

As we know, the eighth trade policy review has coincided with the 20th anniversary of China's entry into the WTO. Some members hold that China has not fully fulfilled its WTO commitments up to now. What does China think of such view? Thank you. 

Wang Shouwen:

This year marks the 20th anniversary of China's entry into the WTO. At the time of its accession, there were a protocol of accession, accompanying a working party report, stipulating China's commitments after its accession and the timetable for fulfilling the obligations. If you take the schedule for your reference, you will find that we have fully fulfilled our commitments stipulated by the WTO and the promises we made. Moreover, several directors-general of the WTO and most of its members have fully affirmed and recognized this. I will show you some examples. 

First, in terms of adapting to WTO rules, we need to revise laws, regulations, and policies to conform with WTO rules after China entered into the WTO. The Chinese central government repealed more than 2,000 pieces of laws, regulations, and departmental rules, and local governments removed more than 190,000 local laws and regulations. After China's accession into the WTO, we brought our laws, regulations, and policy framework fully into line with WTO rules according to the timetable. In a given period of time after China's accession into the WTO, we have worked to ensure China's legal and policy systems consistent with WTO rules. Meanwhile, we also ensured that the newly enacted policies and laws and regulations conform and continue to conform with WTO rules. 

Second, in terms of opening the market, we promised to reduce goods tariffs to below 9.8%. At the beginning of China's accession to the WTO, the figure was 15.3%. We have fully delivered on this commitment. China's general tariff is now only 7.4%, lower than the average ofdeveloping country members and approaching the levels of developed country members. China has also widely opened its market in the services industry. The Protocol of Accession and the Working Party Report stipulated that 100 sub-sectors in nine categories needed to be opened by 2007. Now, China has opened nearly 120 sub-sectors, exceeding our commitments.

Third, in terms of complying with laws and regulations, our laws, regulations, and policies should conform with WTO rules, and we have also done quite well in this regard. Explicitly speaking, we have set up intellectual property courts in some places and even particular judicial organs of intellectual property in some provinces to enhance intellectual property protection. We have done well in ensuring laws and regulations of intellectual property conform with WTO rules. In addition, more efforts have been made in the enforcement, as well as in providing administrative and judicial protections. To improve the transparency, we have timely notified the WTO of the adjustment and implementation of China's legislation, as well as of laws and regulations. The number of notifications has exceeded 1,000. Among them, the notification of subsidy policies is very difficult to prepare. WTO member countries need to submit to the organization the amount of subsidy the government gives to its enterprises and industries, such practice was deemed by many WTO members, especially developing country members, as the most challenging task. The Chinese government has overcome many difficulties and made timely notifications. This July, China notified the WTO of subsidy policies between 2019 and 2020, setting an excellent example for other WTO members. 

China had also honored previous rulings of specific cases before the WTO dispute settlement mechanism was formed. We executed all those rulings no matter whether they were favorable for China or not. No retaliation from complaining members has been incurred due to China's nonacceptance of WTO rulings. Based on the aspects mentioned above, we can see that China has fully and effectively fulfilled its WTO commitments. 

As I just mentioned, some members also raised other concerns and expectations that may go beyond WTO rules. It is improper to judge that China has not fulfilled its commitments based on rules beyond WTO provisions. Specifically, some regulations of intellectual property in the WTO Agreement on Trade-related Aspects of Intellectual Property (TRIPS) are different from those in some free trade agreements. Therefore, it is inappropriate to ask China comply with intellectual property provisions of some high-standard free trade agreements within the framework of the WTO. 

Generally speaking, China has done an excellent job fulfilling its WTO commitments, which is not only China's view but also the view of WTO members and several directors-general. Thank you. 

CGTN:

Mr. Wang just mentioned the subsidy notification. We know that the subsidies are a hot issue in the WTO reforms. Many WTO members have proposed tightening the subsidy rules even further. Will China be supportive of negotiations on subsidy rules under the framework of WTO reform? Does China support tightening the subsidy discipline? At the same time, how does China plan to increase the transparency of its subsidy policies? Thank you.

Wang Shouwen:

Thank you for your question. Mr. Yan will answer this one.

Yan Dong:

Thank you for your question. Subsidies are a policy tool commonly used by governments around the world. They are mainly used to mitigate market failures and achieve various public policy objectives, such as promoting economic development, technology research and development, environmental protection and employment stabilization. More specifically, during the COVID-19 pandemic, WTO member governments have introduced numerous subsidy measures to help domestic enterprises overcome difficulties and guarantee employment and social stability.

The WTO has a special agreement for industrial products, called the Agreement on Subsidies and Countervailing Measures (SCM Agreement). The WTO also has a special agreement for agriculture subsidies, called the Agreement on Agriculture. These two agreements have established specific regulations for the WTO members, in terms of providing industrial and agricultural subsidies. Among them, the SCM Agreement prohibits a subsidy if it is contingent on export performance or on the use of domestic over imported goods. Moreover, it stipulates that, if subsidized imported products harm the domestic industry, the importers can enact countervailing measures.

These two agreements were both reached in the 1990s. Now, however, after operating for more than 20 years, the overall situation is fine, but problems do still exist. For instance, agricultural subsidy rules are critically unfair, imbalanced and unreasonable. The rules grant permissions for some developed members to have high agricultural subsidies. Some members are allowed to wrongly enact countervailing measures on industrial products to protect their domestic industries. Aside from that, the original subsidy rules do not reflect the economic and trade reality of today, and the rules are incapable of meeting WTO members' shared demands.

China supports necessary reforms to the WTO and is open to launching subsidy negotiations and discussions under the framework of WTO reform. Specifically, we have three detailed proposals: First, the agriculture subsidies must be discussed in concert with industrial subsidies to ensure equitable competition across these two important fields. Second, the discussions should address tightening trade remedy disciplines such as countervailing and anti-dumping, so as to solve the current problem of abusing trade remedy measures. Third, the issue of resuming non-actionable subsidies should also be discussed, so as to leave policy space for members in response to the pandemic and climate change.

You mentioned the issue of subsidy transparency. The WTO requires its members to submit notifications for subsidy policies and agricultural domestic support on a regular basis. Agricultural domestic support is the issue of agricultural subsidies. China is one of the members that adequately fulfilled these obligations. During the review, China submitted two subsidy policy notifications in accordance with WTO requirements, while some major developed members delayed their notifications for several months, and still, others are yet to submit their notifications at all. With regard to the notification for domestic support on agriculture, China plans to submit the latest notification soon. That's all for your question. Thank you.

Shenzhen Satellite TV:

When China joined the WTO, its global share of GDP was only 4%, and its per capita GDP was only 8,700 yuan. At present, China accounts for 17.4% of global GDP and its per capita GDP has reached 72,000 yuan. Some members hold the view that, in the context of its growing comprehensive national strength, China should give up the special and differential treatment enjoyed by developing members in the WTO. What is China's view on this? Thank you.

Wang Shouwen:

Thank you for your question. Under the strong and correct leadership of the CPC, the Chinese government has led the people of the whole country to adhere to the basic national policy of reform and opening-up, give full play to institutional advantages, and follow the general global trends. After decades of hard work and unremitting efforts, our economic and social development has indeed made considerable progress, and our comprehensive national strength is also increasing. However, we must also be aware that China still faces the serious problem of unbalanced and inadequate development, and the task of its own development remains daunting. According to the report of the 19th National Congress of the CPC, China's international status as the world's largest developing country remains unchanged. China's international status as a developing country has not changed.

You mentioned the issue of special and differential treatment. There are special provisions in the WTO, whereby developing members enjoy special and differential treatment in terms of market opening and compliance with rules. Specific rights and obligations have to be decided through negotiations. According to the statistics of the WTO Secretariat, there are 155 provisions on special and differential treatment in the WTO agreement, covering six areas: increasing trade opportunities, safeguarding the interests of members, maintaining policy space, transitional time-periods, technical assistance and special flexibility for the least developed countries (LDCs). For example, one agreement stipulates that developed members need to implement immediately, but developing members can do so within five years. Developing members enjoy such transitional periods, which is special and differential treatment.

Some members think that China should give up its special and differential treatment. I would like to share with you some information. When China joined the WTO, we adhered to the principle of seeking truth from facts and undertook obligations within our capabilities in accordance with the principle of balancing rights and obligations. We actually enjoyed less special and differential treatment than other developing members. 

Since its accession to the WTO, China has never used special and differential treatment as a "shield" to impede the progress of the negotiations. In fact, China's position and practices have made important contributions to some WTO negotiations. For example, the WTO has reached the Trade Facilitation Agreement (TFA). There are some class C measures in the agreement, which are measures that can only be implemented after developing members receive financial support from developed members. China insists on completing these by itself and does not need financial support from others. That is, we have not asked for special and differential treatment. There are also some class B measures, which can only be implemented after a transitional period. Developing countries should implement them after a transitional period, while developed countries need to implement them immediately. China is a developing country, but we have few class B measures. Such efforts have contributed to the conclusion and implementation of the agreement. As another example, in the negotiations on the expansion of the Information Technology Agreement (ITA), as a developing country, we demanded terms and made our offers according to the balance of rights and obligations. China contributed significantly to the success of the expansion negotiations. Therefore, in the agreements reached after China's accession to the WTO, we have enjoyed less special and differential treatment. 

In future negotiations, as a responsible major country and the largest developing country, we will continue to adhere to the balance of rights and obligations, deal with special and differential treatment in a pragmatic manner according to our own level and ability of economic development, promote WTO reform, safeguard the legitimate rights and interests of developing countries and defend the multilateral trading system. Thank you.

The Straits Times:

Earlier you mentioned that nearly 20 years after China's accession to the WTO, there have been changes to the market in the form of a foreign investment law and better protection of IP rights, but the fact remains that there are still areas that are out of bounds to foreign investment and there is preferential treatment for state-owned enterprises. And this has come under criticism from other members during the review. So, what is China going to do to rectify this? Thank you. 

Wang Shouwen:

Thank you for your question. As I emphasized when answering the previous question, China has fully fulfilled its WTO accession commitments and obligations. There isn't any promised reform left unfulfilled.

You mentioned that China's SOEs receive special treatment. Regarding this question, article 16 of the PRC's Constitution stipulates state-owned enterprises have decision-making power in operation and management within the limits prescribed by law. China's SOEs are independent market entities that engage in independent operation, financing, self-discipline, and self-development. They compete with enterprises of other ownerships in the market on a level playing field, with no preferential treatment attached. In fact, in recent years, we have promoted mixed-ownership reforms at China's state-owned enterprises. So far, mixed-ownership enterprises account for over 70% of all legal entities of central SOEs, with listed companies being the primary carrier for the reforms. According to the statistics, SOE-controlled listed companies account for 67% of the assets of central SOEs and 87% of the profits respectively. Listed companies publish quarterly, semi-annual and annual reports, which serve as a transparent source of information to find out whether they enjoy special treatment or not. To conclude, China's SOEs do not enjoy special treatment. They are market entities with decision-making power in operation and management according to the Constitution.

As you mentioned, China has implemented the Foreign Investment Law, but there are still people criticizing China for keeping some areas off-limits to foreign investment. But I want to stress that China has opened up its market more and more of its own accord, instead of doing it as a WTO obligation. Under the WTO, China has fully complied with the Agreement on Trade-Related Investment Measures (TRIMs). The reason why China still prohibits or restricts foreign investment in some areas is that the WTO does not have relevant regulations, and many countries have similar prohibitions or restrictions. China also hopes that some bans and restrictions can be removed, but this requires WTO or bilateral investment negotiations. For example, China once held bilateral investment treaty negotiations with the United States; China and the EU have already concluded the negotiations for the Comprehensive Agreement on Investment (CAI). In other words, to open up wider and further relax restrictions on foreign investment through bilateral investment treaties or investment chapters in free trade agreements requires channels beyond the WTO. China is willing to address the investment access issue this way. For example, China has formally applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which sets high standards for investment. It is unfair and unreasonable to say that China's investment restrictions violate WTO regulations.

We understand the hope of some countries that China should further relax investment access. However, criticizing China in this way and saying that China has not fulfilled WTO regulations is unreasonable, unfair, and unacceptable.

On the whole, China has fulfilled all the commitments made on its accession to the WTO. China's SOEs are equally-treated market entities that have decision-making power in operation and management according to the PRC's Constitution. China has already fulfilled its investment obligations under the WTO, and has constantly opened wider to the outside world following an independent path. As we know, China's first negative list for foreign investment, initially introduced for the Shanghai FTZ, contained 190 items restricted for foreign investment. Now the list has been shortened to 30 items. So China has taken big strides to open up its investment access. We are willing to further expand market access for foreign investment both of our own accord, and through bilateral investment treaties, free trade agreements, or WTO negotiations. Thank you.

CNR Business Radio:

The WTO's 12th Ministerial Conference (MC12) will be held about one month later, with fisheries subsidies being a key issue. How is the progress of negotiation? What efforts has China made for the 12th Ministerial Conference to reach an outcome on the issue? Thank you.

Yan Dong:

Thank you for your question. Fisheries subsidies negotiations have long attracted extensive attention. It is one of the objectives of the WTO Agreement to achieve mutual support between trade policies and environmental protection policies and promote sustainable development. To this end, WTO members launched the Doha Round of negotiations in 2001, with fisheries subsidies as one of the negotiated issues.

The fisheries subsidies negotiations aim to formulate new subsidy rules, restrict harmful fisheries subsidies, combat illegal fishing, curb overfishing, and help the sustainable development of marine fishery resources. However, subjected to the overall progress of the Doha round of trade talks and coupled with the large differences in the development stages of each member and different interest demands and different resource endowments, the fisheries subsidies negotiations are still ongoing. So far, the negotiations have lasted for 20 years. In 2015, the United Nations Sustainable Development Summit adopted the 2030 Agenda for Sustainable Development, in which Goal 14.6 set out the goal of integrating fisheries negotiations by 2020. In 2017, the 11th WTO Ministerial Conference reiterated the mandate and goals of the fisheries subsidies negotiations. At present, all parties have agreed to conclude the negotiations before the 12th WTO Ministerial Conference to be held at the end of November.

Reaching an agreement on fisheries subsidies will be an important aspect for the WTO to contribute to the realization of the United Nations' 2030 Agenda for Sustainable Development, which is conducive to the sustainable development of marine fisheries and is also of great significance to strengthening global confidence in the WTO and reviving multilateralism.

At present, the fisheries subsidies negotiations are in the final sprint stage. China has always actively participated in the negotiations, "promoting talks, promoting reconciling, and promoting facilitating," and has successively put forward a number of proposals in the negotiations and jointly promoted the negotiations of fisheries subsidies with all parties to reach an agreement as soon as possible. As a developing country and a major fishery country, China will undertake international obligations in the negotiations that are commensurate with its own development stage and capabilities.

In addition, from a domestic perspective, China has taken the initiative to implement the United Nations Sustainable Development Goals and adjusted domestic fishery management and subsidies policies. For example, we implement total control on the production capacity of fishing vessels and the amount of fishing; we have also taken the initiative to adopt resource conservation measures such as the summer fishing moratorium and the voluntary moratorium on the high seas; we comprehensively strengthen the implementation of international protocols for offshore fisheries; and we severely crack down on illegal fishing with a "zero tolerance" attitude. Meanwhile, we continue to adjust the fisheries subsidies policies. In May this year, the Ministry of Finance and the Ministry of Agriculture and Rural Affairs of China issued a notice on implementing support policies for fisheries development to promote high-quality development of fisheries. This document clearly states that it shall "conform to the general trend of WTO fisheries subsidies negotiations, and promote high-quality and sustainable development of fisheries." One of the major policy highlights of this document is to cancel fuel cost subsidies, change the direction of subsidies, guide fishermen to conserve fishery resources, place more emphasis on green development, ensure people's livelihoods and resource conservation, and promote high-quality fishery development.

China firmly supports the multilateral trading system and the completion of fisheries subsidies negotiations as soon as possible before the 12th WTO Ministerial Conference. As a responsible major fishery country, China will continue to take concrete actions to support the prohibition of harmful fishery subsidies that lead to excess production capacity and overfishing. Thank you.

The Paper:

China has joined the RCEP and is also seeking to join the CPTPP. How does the Ministry of Commerce view the relationship between regional trade agreements and WTO? In addition, will plurilateral agreements replace multilateral agreements and become the mainstream of international economic and trade relations in the future? Thank you.

Wang Shouwen:

Thank you for your questions. We believe that the arrangements of the multilateral trading system and regional free trade agreements are the two wheels that drive economic globalization and the liberalization and facilitation of international trade and investment. These two wheels promote each other and cannot be partial and negligible. We don't think it's appropriate to leave any of them out.

The multilateral trading system, with the WTO at its core, is the foundation and core platform for promoting the liberalization and facilitation of global trade. As you all know, the WTO has 164 members, and their trade volume accounts for more than 98% of the global trade. No other agreements can reach this level. The vast majority of trade in the world is carried out between WTO members. Take China, for example: last year, our import and export volume was $4.65 trillion, among which our trade volume with WTO members reached 97.9%. That is to say, $4.56 trillion of China's $4.65 trillion foreign trade is conducted with WTO members. Therefore, it is in China's interest to adhere to the development of the multilateral trading system and maintain the effectiveness and authority of the multilateral trading system.

We believe that the regional free trade agreements arrangement is a useful supplement to the WTO's multilateral trading system and is not in conflict with the WTO. Free trade agreements are generally "WTO plus." Free trade agreements include not only the opening of trade in goods and trade in services but also the opening of investment. Moreover, the level of openness in trade in goods and services is much higher than that of the WTO. The WTO has no regulations on investment opening, while free trade agreements do. In terms of market opening and market access, free trade agreements are "WTO plus." In addition, in terms of rules, the free trade agreements also stipulate some areas that the WTO has not yet stipulated, such as in e-commerce, digital economy, etc. So, as we can see, regional trade agreements not only have a higher level of trade liberalization and facilitation but even involve investment aspects and rule aspects and can be regarded as "experimental fields" for these new rules. The results of these "experimental fields," if adopted by the WTO in the future, will be very beneficial to the liberalization and facilitation of global trade and investment. This is the benefit of free trade zones or free trade agreements.

Despite the benefits of FTAs, we should also recognize that they cannot supplant the multilateral trade regimes. FTAs cannot solve every issue. The subsidy issue mentioned by a journalist just now is such a case. The effect of FTA solutions is limited for subsidies, including agricultural subsidies and public reserves for food security, which need to be addressed within multilateral trade regimes. 

Moreover, FTAs are negotiated and signed between two or more countries. According to the WTO, there are more than 350 FTAs currently being implemented, creating the spaghetti bowl effect. If the contents of these agreements are stipulated in WTO agreements, they will be universal and convenient. Hence, the spaghetti bowl effect of FTA negotiations can be solved through multilateral trade regimes of WTO agreements. It is evident that FTAs have their advantages, and the WTO agreements also have their own. 

Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, said in his report to the 19th CPC National Congress that China will support multilateral trade regimes and work to facilitate the establishment of free trade areas, and build an open world economy. In this regard, the MOC has implemented Xi's remarks and upheld the multilateral trading regimes. In June 2018, we released a white paper titled "China and the World Trade Organization." In November 2018, we issued China's position paper on WTO reform. In May 2019, we submitted a proposal on WTO reform to the WTO. In November 2019, we initiated and hosted the Informal WTO Ministerial Meeting in Shanghai. All these practices show China's support for the WTO's development.

Moreover, China is open to FTAs that are open, transparent, inclusive, and consistent with WTO principles. China is also accelerating the move to implement the FTA strategy and is playing an active part in negotiations on regional trade agreements. By October, China had signed 19 FTAs with 26 trading partners. In addition, China signed the Regional Comprehensive Economic Partnership (RCEP) with the other 14 members last year, and it will come into effect early next year. Recently, China has formally applied to join the CPTPP. All these examples reflect China's high regard for the role of regional trading agreements.

In summary, I want to repeat that the multilateral trade regimes and regional FTAs are two important wheels to drive economic globalization and liberalize and facilitate international trade and investment. Furthermore, they are complementary rather than a substitute for each other. You just asked if one of them will become mainstream? Personally speaking, I think the multilateral trade regime will play a significant role in the coming period, and FTAs may play such a role in another period. They are both essential wheels driving world economic growth. Thank you.

Bloomberg:

My question is that it seems there are a lot more criticisms of China this time at the review than at the seventh review last time. Please tell us your thoughts on these criticisms from Japan, the U.S., the EU, Australia and other nations. Were they justified anywhere? Will you be making any changes in answer to these criticisms? Thank you.

Yan Dong:

Thank you for asking. Mr. Wang has given a detailed answer to your question, especially on China's WTO commitment. The review members raised questions and concerns varying widely. China is a major trading partner of more than 120 economies globally, spotlighting its trade policies. We fully understand it. So, we made written replies before the review meeting to the 2,151 questions raised by WTO members and explained and clarified specific concerns of some members of the meeting. We believe that such two-way interaction is positive and effective and fully demonstrates the value of the trade policy review mechanism.

Of course, we will work on the concerns of relevant members and look forward to further exchanges and communication with them on other occasions. Thank you.

Wang Shouwen:

I'd like to add more. As I mentioned just now, China will take seriously questions, concerns, complaints, and even criticisms raised at the policy review. But I'd like to classify these comments and criticisms into two categories. For the questions in the first category stipulated in the WTO agreements, we will improve what we did not do well following the WTO agreements and sustain what we did well. The questions in the other category, including the criticisms raised by some members, as the journalist mentioned, may have gone beyond the WTO provisions. Therefore, they should be taken as a "wish list" because it is unfair, unreasonable, and unacceptable to make China fulfill obligations beyond the WTO under the remit of the WTO. I'd like to repeat that China will take all concerns seriously as stipulated in WTO agreements to fulfill its WTO obligations. But it is inappropriate to demand China fulfill obligations beyond the WTO boundaries. Thank you.

Cover News:

Some representatives from WTO members pointed out during the review that China has conducted non-market practices in its global trade and that the government's intervention in economic activities has caused overcapacity and distorted the market. What is your comment on this matter? Thank you.

Wang Shouwen:

Thank you for your question. Some WTO members also talked about this issue on some other occasions. I'd like to answer it from the perspective of our foundation. What is our foundation? It is the Constitution of the People's Republic of China (PRC), where Article 15 prescribes that the state shall practice a socialist market economy. Since the reform and opening up, especially after the 18th National Congress of the CPC, China has committed to deepening all-round reform and continuously improved the socialist market economy. It can be said that China's marketization has been continuously advanced, deepened and intensified. Currently, 97% of prices of products and services are determined by the market. China has formed a relatively complete system of market-based interest-rates, and further improved the market-based RMB exchange rate regime. Reforms have also been advanced on the factor market, including in the areas of land, labor force, capital, technology, and data.

Meanwhile, China is building a high-standard market system and fully implements a nationwide negative list for market access. China has improved the fair competition review mechanism, strengthened the antitrust and unfair competition law enforcement, and the Enterprise Bankruptcy Law is universally applicable to various market entities. China has eliminated all barriers in various areas, including market access and exit, utilization of factors, and protection of intellectual property rights, and as a result, fostered a market environment for fair competition.

In May 2020, we issued a guideline to accelerate the improvement of the socialist market economy in the new era. The guideline points out that China will continue reforms to develop the socialist market economy, and show more respect for the general rules of the market economy. Efforts will be made to minimize the government's direct allocation of market resources and direct intervention in microeconomic activities, so as to give full play to the market's decisive role in resource allocation, as well as bring into better play the government's function in effectively correcting market failures. In such a market economy, how can there still exist many non-market practices or government-interventions in the economy? 

You mentioned overcapacity, which is a common, cyclical, and structural problem in economic development. It is a global challenge that calls for joint efforts by all stakeholders to tackle. Taking previous overcapacity in the steel industry as an example, its root cause was the imbalance between supply and demand caused by the 2008 global financial crisis. In order to cope with this issue, China has made tremendous efforts and paid a great price. In fact, China has exerted the greatest efforts and achieved the best outcomes in cutting overcapacity among relevant countries. Since the implementation of supply-side structural reforms in 2015, we have achieved notable progress in reducing overcapacity. During the review, some members raised this issue, and we explained that from 2018 to 2020, China had cut its crude steel capacity by 150 million tonnes. Now, the capacity utilization rate for crude steel and aluminum is over 80 percent and over 85 percent, respectively, demonstrating that there is no overcapacity in these two sectors. We will remain on high alert for possible occurrence of overcapacity in the future and be committed to establishing and improving a long-term mechanism to resolve overcapacity through market-oriented and law-based approaches. 

As socialism with Chinese characteristics has entered a new era, we will fully implement the new development philosophy, accelerate the pace in creating a new development dynamic, promote high-quality development, unswervingly deepen market-oriented reforms, and expand high-level opening-up, so as to build a high-level socialist market economy. During this process, we will continue to earnestly fulfil our WTO commitments, treat enterprises under all forms of ownership equally, and create a fair and open business environment for both Chinese and foreign companies. Thank you.

Xing Huina:

We will have one last question.

CRNTT:

During the WTO's eighth trade policy review of China, members of the organization spoke highly of China's commitment to safeguarding the multilateral trading system and supporting the WTO so that it could play a bigger part. What's China's stand on proactively participating in reform of the WTO in the future? Thank you.

Wang Shouwen:

Thank you for your question. As I've mentioned, China attaches great importance to enhancing the authority and efficacy of the WTO and has paid great attention to its reform. President Xi Jinping noted that China supports necessary reform of the WTO; that the reform should seek to keep up with the times so that the WTO can better facilitate market opening-up and promote growth; and that the reform should be conducive to safeguarding free trade and multilateralism and narrowing development gaps. This is China's fundamental stand on the reform of the WTO.

In terms of specific fields of the reform, I'd like to expound on the following aspects. First, regarding the agenda of the reform, we believe that the WTO should not only address conventional and unresolved issues left from the past but also develop outlines for emerging issues and update the relevant rules in keeping with modern society. For example, issues concerning the agriculture sector are one of the important conventional topics. We believe that there are highly unfair rules on agriculture and that relevant subsidies have severely distorted international trade in the sector. Some developed member states of the WTO have received a huge amount of aggregate measurement of support (AMS), which requires more attention from the media. For example, for some countries, the AMS on sugar accounts for more than 65% of its price, and the AMS on cotton is 2.8 times the value of the output of cotton. It is unreasonable that developed countries are entitled to such a huge volume of subsidies.

However, developing member states of the WTO can only subsidize up to 10% of the product output value. There is a special term called "de minimis," which stipulates that subsidies provided to developing countries can only account for up to 10% of the product output value. The 10% subsidy has very little impact on trade. Yet, it is of paramount importance and indispensable to the supply of agricultural products as well as the security of agricultural industry and food. It is especially crucial for the small-scale agricultural economy and farmers' livelihoods. Therefore, China advocates canceling the huge amount of AMS, which severely distorts international trade, while maintaining the small number of subsidies that are necessarily needed for the small-scale agricultural economy, so as to protect agriculture and food security.

In addition, the public and safe reserve of food is also a conventional issue, and we need to come to an agreement on this through negotiation as soon as possible. In the meantime, we think that some emerging issues should also be considered, such as e-commerce, investment facilitation, as well as fisheries subsidies just mentioned by a journalist. We should reach agreements on these issues as soon as possible.

Second, dispute settlement is one of three important functions of the WTO. The dispute settlement mechanism is very important, and it can help safeguard the norms of global trade. If a country thinks that another country is doing something wrong, then it can file a lawsuit. If the latter is wrong indeed, then it will need to rectify the situation. If there is no such dispute settlement mechanism, then disputes between countries will be handled via the "law of the jungle," which means that the standard of right and wrong will be determined by those with the most strength. This is destructive to international trade. Unfortunately, due to the obstruction of some member states, the dispute settlement mechanism of WTO is facing a crisis, and its Appellate Body hasn't been functioning. We believe that WTO reforms should address issues related to its Appellate Body as soon as possible. China has placed great emphasis on this issue and has been advocating to restore the normal operation of WTO's Appellate Body. Given the current problems facing the Appellate Body, China, the European Union, and other WTO member states have agreed to a multi-party interim appeal arbitration arrangement. Of course, this arrangement would only be temporary. We hope that trade disputes could be settled through the two tiers trial methods of these third parties rather than through economic bullying.

The third aspect is about the methods that WTO can take to carry out reform. For conventional issues and those concerning the majority of member states, we uphold the principles of consensus to carry out reforms. For emerging issues such as e-commerce, we think that the principles of consensus cannot be accepted by every WTO member for now. We hold an open attitude and propose issuing joint statements. This means that a group of member states can first reach plurilateral agreements to address specific issues in these fields, and the rest of the members can join in once all conditions are favorable in the future. 

In general, China has placed great emphasis on the reform of the WTO, and we are willing to participate in the course in a fairly proactive and constructive way so to enhance the WTO's authority and efficacy and contribute to global economic growth, especially the liberalization and facilitation of global trade and investment. Thank you.

Xing Huina:

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

Translated and edited by Wang Qian, Duan Yaying, Xu Xiaoxuan, Yuan Fang, Cui Can, Wang Yanfang, Yang Xi, Li Huiru, Yan Xiaoqing, Huang Shan, Xiang Bin, Liu Qiang, Dong Qingpei, Zhang Rui, Zhang Tingting, Zhang Junmian, Zhu Bochen, Wang Yiming, David Ball, Drew Pittock, Jay Birbeck, and Tom Arnstein. 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:

Ye Min, vice minister of ecology and environment

Sun Zhen, person in charge of the Department of Climate Change under the Ministry of Ecology and Environment

Chairperson:

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

Date:

Oct. 27, 2021

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference being held by the State Council Information Office (SCIO). Today, the SCIO issued a new white paper titled "Responding to Climate Change: China's Policies and Actions." We are holding this press conference to introduce and interpret the white paper.

Under the guidance of Xi Jinping Thought on Ecological Civilization, the white paper elaborates on China's policies, actions and achievements in responding to climate change since the 18th National Congress of the Communist Party of China (CPC), as well as the country's proposals for improving global climate governance. At around 19,000 Chinese characters, the white paper consists of preface, main body and conclusion. The main text is divided into four parts: "China's New Responses to Climate Change," "Implementing a National Strategy of Actively Responding to Climate Change," "Significant Changes in China's Response to Climate Change" and "Building a Fair and Rational Global Climate Governance System for Win-Win Results."

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and the Foreign Languages Press. It is available at Xinhua Bookstore outlets across the country.

In order to help you gain a better and more accurate understanding of the white paper, we have invited Mr. Ye Min, vice minister of ecology and environment, and Mr. Sun Zhen, person in charge of the Department of Climate Change under the Ministry of Ecology and Environment (MEE) to attend today's press conference. They will introduce relevant information and answer your questions. Now, I will give the floor to Mr. Ye.

Ye Min:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to the press conference on the white paper "Responding to Climate Change: China's Policies and Actions." First of all, I would like to thank you, friends from the media, for your long-term care and support for China's efforts to respond to climate change.

Climate change is a stern challenge for all of humanity, and calls for joint responses from countries around the world. The sustainable development of the Chinese nation and the future of the planet depend on tackling it successfully. As an active promoter and a firm practitioner of climate action, China attaches great importance to its response to climate change. China's response to climate change is an important part of its pursuit of eco-environmental progress, and a sure way to change the development model and achieve sustainable development.

Under the guidance of Xi Jinping Thought on Ecological Civilization, we have achieved notable progress in implementing a national strategy of actively responding to climate change over the past years. Based on a comprehensive review of China's responses to climate change, we organized the compilation of this white paper. This is the second time that China has issued a white paper on its response to climate change at the national level after the first publication in 2011. The main text of the new white paper includes "China's New Responses to Climate Change," "Implementing a National Strategy of Actively Responding to Climate Change," "Significant Changes in China's Response to Climate Change" and "Building a Fair and Rational Global Climate Governance System for Win-Win Results." The document elaborates on China's philosophy, policies and actions concerning its response to climate change since the 18th CPC National Congress, especially during the 13th Five-Year Plan period (2016-2020). It showcases the country's progress and achievements in addressing the challenges, and its contribution to global climate action. The white paper also offers a systematic picture of China's proposals and approaches to climate change.

Since the 18th CPC National Congress, China has advanced its climate action and achieved progress in the following ways: carbon intensity has been significantly decreased; energy mix and industrial structure have been steadily optimized; institutional mechanisms for low-carbon development have improved; solid steps have been taken in building a national carbon market; a number of low-carbon models of development with distinctive features have emerged; the ability to adapt to climate change has been reinforced; and public awareness of pursuing green, low-carbon lifestyles has considerably increased.

At the same time, the Chinese government actively and constructively participates in global climate governance. The Chinese government adheres to the principles of multilateralism, as well as common but differentiated responsibilities, attaches great importance to international cooperation on climate change and joins international negotiations on climate change, carries out in-depth South-South cooperation on climate change, promotes the conclusion and accelerated implementation of the Paris Agreement, and leads the new pattern of global climate governance with Chinese ideas and practices, and has gradually become an important participant, contributor and leader in building a global ecological civilization.

In 2020, President Xi Jinping made a major announcement regarding carbon peak and carbon neutrality, demonstrating China's determination to pursue green and low-carbon development and join hands with the international community to tackle climate change. This is a significant strategic decision made after careful consideration by the CPC Central Committee with Comrade Xi Jinping at its core, coordinating the domestic and international situations. In the next step, we will resolutely implement the decisions and arrangements, while continuing to advance climate change initiatives.

The 26th United Nations Conference of Parties on Climate Change (COP26) will be held in Glasgow, UK. This conference will finalize negotiations on the remaining issues of the implementation rules of the Paris Agreement. Meanwhile, China has embarked on a new journey of building a modern socialist country, entering a critical period of comprehensive green transformation for economic and social development and shifting from quantitative change to qualitative change in ecological environment. At this moment, it is significant that we release the white paper, "Responding to Climate Change: China's Policies and Actions," to enhance domestic and international understanding of China's climate action, and share Chinese wisdom and solutions.

Responding to climate change is a cause shared by all of mankind. China will continue to implement its proactive national strategies on climate change, incorporate carbon peak and carbon neutrality into the overall layout of constructing an ecological civilization, and make every effort to respond to climate change under the new situation. China is also willing to work with the international community to promote the comprehensive, balanced and effective implementation of the Paris Agreement, jointly build a fair, reasonable, cooperative and win-win global climate governance system, and start a new journey in the global response to climate change.

Next, my colleagues and I are willing to answer questions from media friends. Thank you all!

Xing Huina:

Thank you, Mr. Ye, for your introduction. Now you are welcome to ask questions. Please let us know the news organization you are from before asking questions.

CCTV:

What is the difference between today's white paper on climate change and those of the past? Secondly, what do you think is the biggest opportunity for China to deal with climate change? What are the other challenges? Thank you.

Ye Min:

Thank you for your questions. Regarding the white paper, as I just mentioned, in 2011 the State Council Information Office released the white paper "China's Policies and Actions for Addressing Climate Change (2011)." Then, from 2012 to 2020 we released "The Annual Report of China's Policies and Actions for Addressing Climate Change" every year and continue to inform the public of the progress and efficacy of China's climate change response.

Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the work on climate change and implemented proactive national strategies on climate change. The work of tackling climate change has undergone historic and transformative changes, from understanding to conceptualizing and through to practice, while achieving world-renowned results. The white paper released this time systematically expounds upon General Secretary Xi Jinping's new ideas, new thinking and new strategies regarding China's response to climate change. It also provides a comprehensive overview of China's policies and measures to address climate change and all of the results since the 18th CPC National Congress, especially during the 13th Five-Year Plan period. Moreover, it systematically outlines China's path and plans to address climate change, and fully reflects China's important contributions and tremendous efforts to the issue, all of which demonstrates that China proactively shoulders the international responsibility for climate change as well as the responsibility and accountability of building a community with a shared future for mankind. At the same time, the most recent white paper reiterates China's stance and proposition on global climate governance and offers advocacy proposals and appeals to the international community to build a fair, reasonable, cooperative and win-win global climate governance system.

Regarding opportunities and challenges: Green and low-carbon development is not only a world trend but also a new engine of economic growth, as well as a new development opportunity for the future. The CPC Central Committee is far-sighted, makes precise deployments, seizes this period of strategic opportunities, and sets mid- and long-term goals and visions for addressing climate change. It regards an active response to climate change as a key task in advancing high-quality development and high-level ecological protection, which shows China's initiative to assume the international responsibility of responding to climate change and its role in promoting the construction of a community with a shared future for mankind.

In recent years, China has adopted a series of strong policy measures to adjust the industrial structure, optimize the energy structure, maximize energy efficiency, increase forest carbon sinks, and improve adaptability to climate change, while achieving remarkable results. As of the end of 2020, China's carbon dioxide emissions per unit of GDP had dropped by 48.4% compared to that of 2005, exceeding the 40% to 45% target that China had previously promised to the international community. At the same time, top-level design has been continuously improved, the construction of market mechanisms has been promoted, and public awareness has been raised, forming a solid situation and environment in which the efforts to address climate change continue to advance.

However, at the same time, our country is also faced with difficulties and challenges in dealing with climate change. As the world undergoes major changes unseen in a century, the rise of unilateralism and protectionism is also complicating the international situation in addressing the climate change issue. China pledges to achieve carbon neutrality around 30 years after peaking carbon dioxide emissions. The timeframe has been greatly shortened compared to that of major developed countries. Hence we are faced with more difficult tasks related to energy and industrial transformation. As the biggest developing country in the world, China is facing multiple challenges including developing its economy, improving living standards, curbing pollution, safeguarding energy security and so on. Additionally, we still have problems of unbalanced and inadequate development. At present, we also have deficiencies and weaknesses in the aspects of cognitive level, policy tools, measures and foundational capabilities when dealing with climate change. However, under the strong leadership of the CPC Central Committee, we are fully determined and capable of completing the arduous tasks of achieving peak carbon emissions and carbon neutrality. 

Next, we will ground our work in this new stage of development, resolutely implement the new development philosophy, foster a new development pattern, adhere to a systematic approach, and properly handle the relationships between development and emission reduction, the whole and parts, as well as the short term and the mid and long term. We will bring peak carbon emissions and carbon neutrality into the whole layout of the eco-civilization construction, unswervingly follow the path of green, low-carbon and high-quality development that gives priority to ecology, and resolutely carry out national strategies featuring proactive responses to climate change, in a bid to achieve peak carbon emissions and carbon neutrality on schedule. We will continue to make contributions to deal with global climate change. That is all from me. Thank you.

CNR:

Is China optimistic about COP26 to deal with the unresolved issues regarding the implementation of Article 6 of the Paris Agreement? What efforts will be made? Thank you.

Ye Min:

Thank you. Mr. Sun will answer your questions.

Sun Zhen:

Thank you, Mr. Ye. Thank you for your questions. The primary task for COP26 is to complete negotiations over the detailed rules for implementing the Paris Agreement, especially the market mechanism, that is, the unresolved issues under Article 6. They are the foundation and precondition for all parties to effectively implement the Paris Agreement in an all-round manner, as well as an important symbol of maintaining the trust in the multilateral mechanism among the international community, especially the industrial and commercial sectors. We expect all parties to work together in the same direction. Developed countries should take more constructive actions and fully demonstrate flexibility, uphold the principle of common but differentiated responsibilities, adhere to nationally determined goals and policies, and avoid retrogressive stances and even renegotiations over issues where consensus has already been reached.

Here are some key aspects. First, we hope the market mechanism can provide developing countries with financial support so they can better adapt to climate change. Adapting to climate change is a major concern for developing countries. At present, the funds provided by developed countries are far from meeting the needs of developing countries in this respect. China advocates providing stable and predictable financial support to help developing countries adapt to climate change. In particular, we expect developed countries to demonstrate a positive and constructive attitude so that all parties can work together to find reasonable solutions.

The second is the relationship between the emission reductions under the market mechanism and nationally determined contributions (NDCs). No parties should be required to adjust their NDCs due to the transfer of mitigation outcomes. At the same time, China understands the concerns of some parties over this rule. Therefore, we are willing to set a reasonable time limit based on the coverage of NDCs and other factors. We kindly request relevant parties to clarify the coverage of their NDCs when participating in the market mechanism.

The third is about the transition issue of emission reductions achieved before 2020. We hope to sustain the confidence and enthusiasm of industrial and commercial sectors in the market mechanism of the Paris Agreement. All parties should be allowed to use their certificated emission reductions before 2020 toward their NDCs and engage in emissions trading. For this purpose, we would like to explore some compromise solutions. China is willing to work together with the United Kingdom, which holds the presidency of COP26, and adhere to the multilateral process in an open, transparent, inclusive, party-driven, and consensus-based manner. We will maintain close communications and coordination in a bid to complete the agenda and negotiations over the unresolved issues regarding the implementation of the Paris Agreement. Thank you. 

People's Daily:

Mr. Ye, my question is what progress and achievements have been made regarding our country's response to climate change? What's the plan for the next step? Thank you.

Ye Min:

Thank you for your questions. China attaches great importance to dealing with climate change. China's responses to climate change are an important part of its efforts to achieve eco-environmental progress. In recent years, China has implemented a national strategy of actively responding to climate change and made positive progress through a series of policy measures including adjusting industrial structure, improving the energy mix, conserving energy and improving energy efficiency, establishing market mechanisms, and increasing forest carbon sink. The progress is mainly reflected in the following aspects:

First, China has effectively limited greenhouse gas emissions. China's carbon intensity in 2020 decreased by 18.8 percent compared with that in 2015 and dropped by 48.4 percent compared with that in 2005, which means that China had more than fulfilled its commitment to achieve a 40 to 45 percent reduction. China has basically reversed the rapid growth of its carbon dioxide emissions. Second, China has made progress in optimizing its energy mix. In 2020, China's non-fossil energy contributed 15.9 percent to China's total energy consumption, an increase of 8.5 percentage points compared with 2005. China has significantly reduced its reliance on coal consumption and made prominent progress in optimizing its energy mix. Third, China has constantly improved the national carbon market. A national market for trading carbon emission rights was officially launched on July 16, 2021. In its first performance cycle, China's power generation industry had a total of 2,162 major enterprises, covering over 4.5 billion tons of carbon emissions each year, making the market the world's largest in terms of the amount of greenhouse gas emissions covered. In addition, China has launched pilots and demonstrations on low-carbon development, constantly improved its ability to adapt to climate change, and raised the awareness of low-carbon development in all sectors of society. While addressing climate change at home, China has actively participated in global climate governance. It has played a historic role in promoting the conclusion, entry into force, implementation and formulation of detailed rules and regulations of the Paris Agreement. We also have actively engaged in South-South cooperation on climate change and helped other developing countries – in particular least developed countries, African countries, and small island countries – build a capacity to fight climate change.

In 2020, President Xi Jinping announced the goals to peak carbon emissions and achieve carbon neutrality. The CPC Central Committee made important arrangements for the related work. Recently, the CP China Central Committee and the State Council jointly released a document titled "Working Guidance For Carbon Dioxide Peaking And Carbon Neutrality In Full And Faithful Implementation Of The New Development Philosophy" and an action plan for peaking carbon emissions before 2030. China is accelerating its work on the 1+N policy system for peaking carbon emissions and achieving carbon neutrality.

In the next step, we will further implement the decisions and arrangements of the CPC Central Committee and the State Council. First, we will work actively to meet the goal of the 14th Five-Year Plan 2021-2025 on climate change. We will allocate the binding targets of reducing the carbon intensity by 18 percent to local governments. Second, we will promote actions to peak carbon emissions, push forward the implementation of the 1+N policy system framework for peaking carbon emissions and achieving carbon neutrality, and promote the building of an economic system that facilitates green, low-carbon, and circular development. Third, we will reinforce the coordination between responding to climate change and protecting the eco-environment. We will decrease the emissions of both pollution and carbon, and strive to achieve synergy and efficiency. We will also step up the formulation of an implementation plan for synergizing the reduction of pollution and carbon emissions. Fourth, we will continue to improve the building of the national carbon market. We will move forward on the introduction of provisional regulations on the administration of carbon emission rights trading . On the basis of a well-functioning carbon market in power generation industry, we will gradually expand the market to cover more high-emission industries. Fifth, we will advance the development of relevant systems, and implement a system that focuses on carbon intensity control supplemented by total carbon emission control. We will also establish the statistical and accounting mechanism and data management mechanism for greenhouse gas emissions, as well as a long-term mechanism for compliance. Sixth, we will raise public awareness of low-carbon development, and continue to promote the campaign of the National Low Carbon Day, so as to ensure that production modes and people's lifestyle become green and low-carbon. Seventh, we will ensure the preparation and implementation of a national strategy of adapting to climate change for 2035, and improve the ability of urban and rural construction, agricultural production, and infrastructure to adapt to climate change. We will also strengthen observation and assessment of climate change impacts. Eighth, we will continue to actively participate in international climate change negotiations, and step up efforts to build an equitable global climate governance regime that is cooperative and beneficial to all. Moreover, we will continue to carry out South-South cooperation on climate change. That's all. Thank you.  

Cover News:

General Secretary Xi said that addressing climate change is not something that others asked us to do; we are doing so on our own initiative. How do you understand this remark? How will addressing climate change affect China's economic and social development? Thank you.

Ye Min:

Thank you. General Secretary Xi Jinping has stressed many times that addressing climate change is not what others asked us to do; we are doing so on our own initiative. It is essential to China's sustainable development, and shows our commitment to the building of a community with a shared future for mankind. Coping with climate change is an important starting point to promote China's high-quality economic development. We will continue to inject power into high-quality economic development by establishing and improving an economic structure that facilitates green, low-carbon and circular development, building a clean and low-carbon energy system, advocating for a green and low-carbon lifestyle, and promoting the adjustment of economy, industry, energy, transportation and consumption structure. Coping with climate change is also an important part of high-level ecological environment protection. It will forge great synergy with pollution control, ecological protection and other measures, and will improve environmental quality from the source, enrich environmental governance means, improve environmental governance efficiency, and save environmental governance costs. Addressing climate change is also China's effort and contribution to promoting the building of a community with a shared future for mankind. China adheres to the principles of multilateralism and "common but differentiated responsibilities;" actively participates in and leads global climate governance; promotes the comprehensive, balanced and effective implementation of the Paris Agreement; firmly supports the reasonable demands of other developing countries; continuously promotes the global climate governance system to be more fair, reasonable, beneficial and cooperative; and promotes the building of a community with a shared future for mankind.

Coping with climate change well is significant to accelerating the formation of a new development paradigm with the domestic market as the mainstay and domestic and overseas markets reinforcing each other. It is also significant to exploring a new way of high-quality development that gives priority to ecological conservation and green development. This is both a challenge and an opportunity. 

As the largest developing country, China is still facing imbalances and inadequacies in development, and shoulders a series of arduous tasks, such as developing the economy, improving people's livelihoods, and controlling pollution. Given these facts, in the process of coping with climate change and achieving carbon peak and carbon neutralization, we should realistically base ourselves on China's national conditions, development stage and actual capacity; take a systematic approach to overall development; and properly handle the relationship between development and emission reduction, overall and local development, and short-term and medium and long-term development. We must also make steady, orderly and scientific deployment, and achieve solid progress.

At the same time, we must fully realize that taking stronger actions to deal with climate change and taping the huge potential of greenhouse gas emission reduction brought by the development of new economy, new technology, new business forms, institutional and policy innovation and reform in various fields are important driving forces to promote high-quality development. This will continue to inject impetus to green and low-carbon development, promote the comprehensive green transformation of the economy and society, and realize the fundamental transformation of development modes. Thank you.

Sky News:

China burns more coal than the rest of the world combined. It's still adding to coal power. In the document released today, you said you will only gradually reduce that. At the same time, you are asking other countries to drastically reduce their emissions. How long will that peak of coal use last? Why is apparently China prioritizing short-term economic growth over the future of the planet? Secondly, we've heard about the leadership of President Xi Jinping. Will he be attending the COP26? If not, why not? Thank you.

Ye Min:

Whether President Xi Jinping will attend the COP26 will be answered by our diplomatic department. You asked about the consumption and development of coal. This issue is of great concern to the public. I would like to ask Mr. Sun to introduce some specific situations and our considerations.

Sun Zhen:

Thank you, Mr. Ye, and thanks for the questions. The questions are long. I think you are mainly concerned about some recent situations, while you also raised a question on the relationship between short-term and long-term development. I will answer them briefly here.

It should be noted that energy is the basic guarantee and basic condition for economic and social development and people's livelihoods. In the long run, it is also the driving force for the progress of human civilization. At the same time, for the future, if we want to achieve sustainable economic and social development, it is particularly urgent to achieve clean and low-carbon development in the field of energy. In recent years, China has vigorously promoted the adjustment, transformation and upgrading of its energy structure, shifting its energy production structure from coal-based to diversified, and its energy consumption structure has become increasingly low-carbon. In 2020, the proportion of China's coal consumption in the total energy consumption decreased from 72.4% in 2005 to 56.8%. Meanwhile, the consumption of non-fossil energy accounts for 15.9% of total energy consumption. China has vigorously promoted the development of renewable energy, and the installed capacity of renewable energy has increased rapidly, ranking first in the world. By the end of 2020, the total installed capacity of non-fossil energy power generation in China had reached 980 million kW, including 280 million kW of wind power and 250 million kW of photovoltaic power, ranking first in the world for 11 and six consecutive years, respectively.

Chinese President Xi Jinping said in December 2020 that China will increase the share of non-fossil fuels in primary energy consumption to around 25%, and will bring its total installed capacity of wind and solar power to over 1.2 billion kW. He also said on Sept. 21 this year that China will step up support for other developing countries to develop green and low-carbon energy, and will not build new coal-fired power projects abroad. This fully demonstrates China's determination and courage to accelerate the adjustment of energy structure and build a clean, low-carbon, safe and efficient energy system. China will continue to control the growth of coal consumption, strengthen the development of renewable energy, accelerate the improvement of power system, and build a new power system suitable for a high proportion of renewable energy. Meanwhile, as the world's largest manufacturer of clean energy equipment, China will actively promote the development and utilization of clean energy, promote international cooperation around the world, and help developing countries accelerate the transformation of energy supply to an efficient, clean and diversified mode.

As a developing country, China is currently facing the arduous tasks of developing the economy, improving people's livelihoods, and maintaining energy security. There are still many difficulties and challenges in adjusting the energy structure, which can not be addressed overnight. We will take a systematic approach to overall development; continue to prevent risks; properly handle the relationship between current and long-term development, and the relationship between pollution and carbon reduction and energy security, industrial and supply chains security and people's livelihoods; effectively deal with the risks that may occur during the green and low-carbon transformation; and ensure safe carbon reduction. Thank you.

Phoenix TV:

What measures will China take to enhance compliance and transparency in addressing climate change? Thank you.

Ye Min:

Thank you. Mr. Sun will answer this question.

Sun Zhen:

Thank you, Mr. Ye, and thanks for the question. On this topic, let's start with the Convention. The global response to climate change should be based on the unity and cooperation of all countries. The provisions of the Convention on parties to submit national greenhouse gas inventories and strengthen transparency are not only compliance requirements for addressing climate change but also a cooperative mechanism for building mutual trust and positive incentives. The detailed implementation rules of the Paris Agreement set higher requirements in terms of content, quality and frequency of communications to ensure that policy actions and effects on climate change are more comparable and transparent. At the same time, it also clearly gives developing countries some flexibility on the issue of transparency, and requires developed countries to provide financial and capacity-building support to developing countries.

As the largest developing country, China has attracted extensive attention in regard to its transparency around climate change. So far, China has submitted three national communications and two biennial update reports, including five annual national greenhouse gas emission inventories. The inventory data released by China is reliable and the accounting method is scientific, which has been widely recognized by the international community.

The statistical accounting system of greenhouse gas emissions is the basis for inventory preparation and transparency construction. After years of efforts, we have established and improved the basic statistical system of greenhouse gas emissions, put forward a statistical index system covering five categories and 36 indicators, and built a statistical reporting system for addressing climate change. At the enterprise level, we have issued accounting methods and reporting guidelines for greenhouse gas emissions of enterprises in 24 industries, and organized the accounting and reporting of greenhouse gas emissions of enterprises. Recently, China has also set up a working group on carbon emission statistics and accounting under the leading group office of carbon peak and carbon neutralization work.

In the next step, China will continue to improve the statistical accounting system of greenhouse gas emissions, improve the support and guarantee ability to deal with climate change, ensure that China's statistical system to deal with climate change can meet the new requirements of the implementation rules of the Paris Agreement, and promote China's governance system and capacity to deal with climate change to a new level. Thank you.

Shenzhen Satellite TV:

My question is also about COP26. What are China's expectations for the conference? Thank you.

Ye Min:  

Thank you. COP26 will be the first time Conference of Parties to be held since the implementation of the Paris Agreement. China believes that this conference should first convey a strong political message on firmly upholding multilateralism and respecting multilateral rules. All parties should implement principles of common but differentiated responsibilities, as well as Nationally Determined Contributions outlined in the United Nations Framework Convention on Climate Change and the Paris Agreement, and contribute to addressing global climate change based on their unique national conditions. China looks forward to working with all parties and making progress at this conference on the following tasks:  

First, we hope to complete negotiations on the remaining issues regarding how to implement certain arrangements of the Paris Agreement. It has been nearly six years since the Paris Agreement was reached, but negotiations on various implementation guidelines have yet to be finalized. For example, the implementation arrangements of Article 6, mentioned by a friend from the media just now, still need to be negotiated. The international community has high expectations that the conference will fulfill this task. As the Paris Agreement begins to be fully implemented, the conference should encourage finalizing negotiations on the remaining core issues concerning the implementation guidelines of Article 6. This constitutes the basis and prerequisite for the full and effective implementation of the Paris Agreement by all parties and is an important symbol of maintaining the international community's trust in multilateral mechanisms.  

Second, we hope to make effective progress on issues of financial, technological and capacity-building assistance, which have long been of great concern to developing countries. At the previous conferences, developing nations were disappointed that the financing and adaptation issues that most concern them weren't taken seriously or effectively responded to. They also doubted whether the developed countries were adequately supportive in coping with climate change or merely deflecting emission reduction responsibilities to them. These issues have become one of the biggest obstacles to achieving steadfast progress in the multilateral process. As the Paris Agreement enters official implementation, these issues concern mutual political trust and the practical abilities of developing countries to enact climate action. This Conference of Parties should make arrangements in this regard and advance ambitions in mitigation, adaptation and providing support.

Third, we hope to highlight "implementation" at this conference. We actively call on all parties to earnestly implement the targets and translate them into policies and measures that can be adopted as well as concrete action to be taken. We should avoid turning the setting or raising of targets into empty rhetoric or accusations. For instance, developed countries should bridge the gap in providing $100 billion annually promised financial support as soon as possible – a major issue that concerns mutual trust between developing and developed countries. A number of developed countries, having not yet fulfilled existing promises, are still pushing for higher climate targets. However, all parties should realize that climate goals devoid of action are nothing but a castle in the air, and only through common action and full implementation of the targets and requirements of the Paris agreement, can we effectively deal with the crises and challenges brought by climate change. Thank you.  

Xing Huina:

If there are no other questions, today's briefing is hereby concluded. Thanks to our two speakers and friends from the media. Good bye!

Translated and edited by Zhang Liying, Wang Qian, Zhang Rui, Huang Shan, Qin Qi, Wang Wei, Dong Qingpei, Zhou Jing, Xiang Bin, Chen Xia, Xu Xiaoxuan, Li Huiru, David Ball, Drew Pittock, and Tom Arnstein. 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:

Zhang Jiandong, executive vice president of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and vice mayor of the People's Government of Beijing Municipality

Li Yingchuan, vice minister of the General Administration of Sport

Wang Meimei, vice president of the Executive Board of the China Disabled Persons' Federation

Cui Shuqiang, member of the Standing Committee of the Communist Party of China (CPC) Beijing Municipal Committee and executive vice mayor of the People's Government of Beijing Municipality

Yan Pengcheng, vice governor of the People's Government of Hebei Province

Chairperson:

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

Date:

Oct. 27, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Tuesday marked the beginning of the 100-day countdown to the Olympic and Paralympic Winter Games Beijing 2022. Today, we are delighted to be joined by Mr. Zhang Jiandong, executive vice president of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and vice mayor of the People's Government of Beijing Municipality; Mr. Li Yingchuan, vice minister of the General Administration of Sport; Ms. Wang Meimei, vice president of the Executive Board of the China Disabled Persons' Federation; Mr. Cui Shuqiang, member of the Standing Committee of the Communist Party of China (CPC) Beijing Municipal Committee and executive vice mayor of the People's Government of Beijing Municipality; and Mr. Yan Pengcheng, vice governor of the People's Government of Hebei Province. They will brief you on China's overall progress in preparations for the Olympic and Paralympic Winter Games Beijing 2022 and then take your questions. First, I'll give the floor to Mr. Zhang Jiandong.

Zhang Jiandong:

Friends from the media, good morning.

As we celebrated the 100-day countdown to Beijing 2022 on Tuesday, it's my pleasure to meet with you here and brief you on China's overall progress in preparations for the Olympic and Paralympic Winter Games Beijing 2022. First, on behalf of the BOCOG, I would like to express my heartfelt gratitude to friends from the media for their constant interest, support and help regarding Beijing 2022.

The Olympic and Paralympic Winter Games Beijing 2022 is a landmark event at a critical historic juncture in China. It is also the world's biggest comprehensive winter sports extravaganza. The Central Committee of the CPC has attached great importance to its preparation works. General Secretary Xi Jinping has held many special conferences to conduct research and make arrangements, inspected competition zones and issued key directives, all of which provide a fundamental basis for our organizing work. Under the direct instructions by the leading group overseeing Beijing 2022 preparations, the BOCOG has been fully implementing the concept of hosting the Games in a "green, sharing, open and clean" manner ever since the organizing work began. The BOCOG has also been working closely with the International Olympic Committee (IOC) and the International Paralympic Committee (IPC), and coordinating epidemic prevention and control with the preparation works for the Games. At present, all preparation works have been put in place.

First, the competition venues and infrastructure facilities have met the requirements of the Games. All 12 competition venues have been completed, are ready to host the Games and have been certified by the relevant international winter sports organizations. While being qualified to host the Games, newly-built venues such as the National Speed Skating Oval ("Ice Ribbon"), the National Snowmobile and Sled Center ("Snow Dragon") and the National Ski Jumping Center ("Snow Ruyi") have fully incorporated Chinese cultural elements and become eye-catching landmark buildings. Non-competition venues such as the three Winter Olympic Villages and the Main Media Center have started operation. Meanwhile, the high-speed railway line linking Beijing and Zhangjiakou, the Beijing-Chongli Expressway and other infrastructure facilities have been put into use. Barrier-free facilities and environments have been further improved. All of these have fully met the requirements of the Olympic and Paralympic Winter Games.

Second, all competition venues are running up to the operation standard of Games-time. Venues are the basic factors and the most important main bodies of the competition's operation. In 2020, a venue management team was established based on personnel from the BOCOG, local governments and venue operators. The team is in charge of each venue's competition organizing work, pandemic prevention and control, maintenance of facilities and other supporting services. This February and April, we successfully held winter sports test events for domestic athletes and carried out inspections of various work concerning the venues' operation. To further improve competition venues' Games-time operation and supporting capacities, we plan to hold 10 international test events and three international training week sessions from October to December. This will be an all-element test up to the standards of the Winter Games. It is estimated that some 2,000 overseas athletes and officials will participate in the test events, which will be held under a closed-loop management system. So far, five of these test events have already concluded — the Speed Skating China Open, Asian Open Figure Skating Trophy, ISU Short Track Speed Skating World Cup, and snowmobile and steel frame snowmobile time trials. The World Wheelchair Curling Championship 2021 is currently underway. Based on the competitions which have concluded, international sports organizations and participating athletes have spoken highly of the venues and the preparation work. We will continue to take a problem-oriented approach, summarize experiences at each competition, and earnestly improve our preparation work, so as to lay a sound foundation for the Games-time operation of the venues.

Third, efforts have been made to comprehensively carry out supporting services for the Games. Three competition zones are following the same standards regarding all sorts of preparation work. The BOCOG has signed contracts with nearly 100 hotels, formulated allocation plans for accommodations, and is currently working on hotel reservations. The BOCOG has finished selecting suppliers of food raw materials for the Games as well as catering service providers, and has drawn up menus which meet the different needs of all sorts of customers. The organizing committee has appointed 41 designated healthcare institutions and set up medical teams inside venues. It has also established a traffic command center during the Games to specify vehicle types and carry out traffic arrangements. A preliminary list of volunteers for the Games has been confirmed, and relevant training sessions are underway. The BOCOG has formulated and implemented an action plan on the sci-tech development of the Winter Games, proactively promoting the use of hydrogen fuel, 5G communication, cloud broadcasting, artificial intelligence and other emerging technologies. Many of these technologies are related to media and news reporting. For example, passenger coaches of the high-speed railway linking Beijing and Zhangjiakou have realized full coverage of the 5G network, and we will experience the convenience and efficiency brought about by these sci-tech innovation results during the Games.

Fourth, the BOCOG has been working to properly address the risks brought about by the COVID-19 pandemic. The pandemic is the biggest challenge facing Beijing 2022. To better prevent and control the pandemic, the BOCOG has established an international working group for pandemic prevention and control with the IOC and the World Health Organization (WHO). The BOCOG has also worked with the National Health Commission, Beijing Municipality and Hebei province to set up a special working group and expert team for domestic pandemic prevention and control. We remain committed to prioritizing the health and safety of all participants. By giving full play to international and domestic anti-pandemic systems, the BOCOG has formulated the general guiding principle of anti-pandemic efforts for the Winter Games, a general working plan, as well as a series of venue-specific pandemic countermeasures. A set of key anti-pandemic policies was released on Sept. 30. The BOCOG, the IOC and the IPC jointly published the first playbook for COVID-19 countermeasures for Beijing 2022 on Oct. 25. The playbook outlines six fundamental principles of simplified organizing efforts, remote prevention and control, vaccination, close-loop management, efficient handling, and the integration of prevention and control. The playbook also puts forward specific anti-pandemic measures. In the following days, we will hold conferences with various stakeholders and comprehensively explain specific anti-pandemic policies. There will also be press briefings for the media, which we welcome you to join.

Fifth, publicity campaigns and cultural activities are on the rise. The Winter Games are not only a sports extravaganza, but also a festival of culture. Since the organizing work began, the BOCOG has released the vision of Beijing 2022, its emblems, mascots, torch, sports pictograms, medals and relevant musical works. A documentary channel has been launched by Beijing Television, and a group of Winter Games cultural squares have been selected across the country. The BOCOG has held themed events such as the 1,000-day countdown, the one-year countdown and the 100-day countdown to Beijing 2022. The Beijing 2022 Olympic flame has been ignited and handed over to the BOCOG. A welcome ceremony was held at the Beijing Olympic Tower to release the torch relay plans and exhibit the Olympic flame. All of these cultural activities have added Chinese elements to the diversity of the Olympics. With the media coverage at home and abroad, a strong Winter Games atmosphere has been fostered. In the meantime, preparations for the opening ceremony of the Games are proceeding in an orderly manner.

Sixth, the BOCOG has made remarkable progress concerning sustainability and Olympic heritage. The BOCOG has been carrying out sustainability plans and carbon neutrality schemes, and has completed the ecological restoration of Yanqing and Zhangjiakou competition zones. All competition venues have realized full coverage of the green electricity network. The National Speed Skating Oval and another three venues have adopted a new type of carbon dioxide refrigerant, and all facilities of Beijing 2022 have achieved carbon neutrality. The BOCOG has fully implemented the strategic plan on Olympic heritage. Every competition venue has put forward their plan for reuse after the Games conclude. The Beijing International Olympic Academy has been established based on the Capital University of Physical Education and Sports. A Winter Olympic Park has been built inside the Shougang Park, a steel mill-turned cultural and sports complex in western Beijing. The post-Games naming of the Yanqing Olympic Park and Zhangjiakou-Chongli Olympic Park has been approved. Taking the opportunities brought about by the organizing work of the Winter Games, we have promoted the construction of winter sports venues. By proactively bringing winter sports into campuses and neighborhoods, we are getting closer to achieving the goal of getting 300 million Chinese people involved with winter sports. We have fully utilized the Winter Games' role in helping promote the coordinated development of the Beijing-Tianjin-Hebei region, so as to enhance transport facility connectivity, boost industrial complementarity, carry out joint environmental governance, and promote the joint construction and sharing of public services. We have worked to establish a tourism belt featuring sports culture between Beijing and Zhangjiakou, and fostered the transformation and high-quality development of the Shougang industrial complex, Yanqing and Zhangjiakou.

In the meantime, given China's institutional advantages of pooling resources for major events, the BOCOG has established a set of integrated and coordinated working mechanisms with the relevant central government departments, Beijing Municipality and Hebei province. A command center has been established and was officially put into operation on Oct. 15 before the international test events of Beijing 2022 kicked off. Command and dispatch works are being conducted on a daily basis. The command system will continue operating until the Games time and detect and solve any problems, in a bid to ensure an efficient and orderly Winter Games.

Friends from the media, starting from today, there are 99 days left before the Winter Games start. The Winter Olympic Villages will officially open to all participants from around the world on Jan. 27, 2022. The torch relay will be held on Feb. 2, kicking off the Winter Olympics time. We firmly believe that under the strong leadership of the CPC Central Committee and the great support of all Chinese people and the international society, the BOCOG will complete all its organizing tasks and deliver a simple, safe and splendid Winter Olympic Games to the world.

In conclusion, I'd like to welcome friends from the media to continue their interest and participation in the Olympic and Paralympic Winter Games Beijing 2022. Thank you.

Shou Xiaoli:

Thank you, Mr. Zhang. Now the floor is open for questions. Please identify your news outlet before asking questions.

Xinhua:

Preparations for Beijing 2022 have moved into their final stages. What's happening with the training of Chinese athletes? What's the general situation, and are there any problems involving their training and preparation for the event? How will these problems be resolved? Thank you.

Li Yingchuan:

Thank you for your concern over Chinese athletes' training for the Winter Olympics. Hosting Beijing 2022 has sharpened Chinese competitiveness in ice and snow sports. In preparation for the event, Chinese athletes continue to train hard using innovative training methods scientifically. Together with improved training conditions, this has helped enhance Chinese competitive strength in ice and snow events. At present, a total of 480 athletes of the 29 national teams are undergoing intensive training for the snow and ice events in a bid to score at the upcoming Beijing 2022. We have focused at shoring up the weaknesses in Chinese athletes, coaches, and professional training facilities and established teams and trained athletes for all the 109 events of Beijing 2022, aiming for full participation in all the events of the Games.

When Beijing won the bid to host the 2022 Winter Olympics in 2015, around one-third of the 109 events had not been widely practiced in China. At the 2018 Pyeongchang Winter Olympics, China participated in roughly half of the total events. As the host of Beijing 2022, we want to qualify for all the events, which will be a historic breakthrough. However, the global outbreak of COVID-19 has hampered the Chinese national teams to go abroad for regular competitions and additional training, which resulting in losing of some important points in the lead up to the Winter Olympics. These points are the basic qualifying conditions required for participation in Beijing 2022. This is the most prominent problem we have encountered in preparing for Beijing 2022 competitions.

Meanwhile, as most of our teams have not participated in international competitions for a long time, they have had little opportunity to compete with their main rivals. This poses challenges in organizing targeted trainings for them, thus raising the bar for athletes in their on-the-spot performance and strain capacity. What have we done to counter these problems? We made full use of the domestic conditions for all the events to practice training. The updating of training facilities in particular, the advanced training venues, in Beijing Shougang Park, CRRC Beijing Erqi Vehicle Plant, and in places like Chengde, Chongde, and Laiyuan in Hebei province, guarantees beneficial training conditions for Chinese athletes. Despite the continuous spread of the COVID-19 pandemic, we have ensured that Chinese athletes for the ice and snow events get systematic and continuous training. In previous Winter Olympics, Chinese athletes traveled to some European and American countries for training. Now we can conduct science-based training in our well-equipped venues in Beijing and Hebei province without going abroad. We have also improved the level of "intelligent" training, enhancing the management of the whole training process by making full use of science-aided systems to precisely monitor the training, effectively helping sharpen the competitiveness of Chinese athletes. In the final 100 days before Beijing 2022, Chinese teams will make full use the high-tech training facilities to make their training more targeted and effective so as to bring out their best at the upcoming Olympics. Thank you.

Wang Meimei:

I'd like to add some more. The training requirements and practices of Chinese athletes in preparation for the Beijing Winter Paralympic Games are similar to what Mr. Li introduced just now. I will skip this part and introduce our measures in ensuring Chinese athletes' normal training for Beijing 2022 under the premise of normalized epidemic prevention and control.

The China Disabled Persons' Federation (CDPF) sees the athletes' training and preparations for Beijing 2022 as an important political task. We worked on epidemic control and athletes' training for the event simultaneously. We have all hoped Chinese athletes do well at the 2022 Beijing Winter Paralympics despite the COVID-19 outbreak. How to ensure their regular training and participation in the event against a backdrop of the pandemic is a major test for us. During the training for the 2022 Games, we have focused on implementing epidemic control measures. The CDPF issued a notice to guide provincial disabled persons' federations, training institutions, and sports teams to strictly implement the epidemic control requirements. We also called on disabled persons' federations in provinces and cities where the national teams are based to attach great importance to epidemic control of the national teams and step up efforts in inspection and services to coordinate the existing difficulties and problems. The national teams are under closed-loop management under the guidance of local disease control departments where these teams are based. We have customized epidemic control policy plans for each team member and clarified the division of responsibilities for the closed-loop management at training bases. Moreover, we have prepared sufficient materials for COVID-19 prevention, control, and disinfection, and improved the internal prevention and control responsibility system and management policies. Our staff have implemented all the measures and performed their respective functions. Chinese athletes have abided by the rules for self-protection from COVID-19.

Meanwhile, in compliance with epidemic prevention and control regulations of different competition divisions, we have participated in all the winter sports events of Experience Beijing, including test series in Paralympic alpine skiing, snowboarding, cross country skiing, Paralympic ice hockey, and wheelchair curling events. We seized a rare window period from April to early June to hold alpine skiing, snowboarding, cross-country skiing, biathlon, curling, and ice hockey events at the 11th National Games for Persons with Disabilities and the 8th National Special Olympic Games. We also supervised the organizing committees of those events to formulate and implement stricter plans on the basis of local policies in the fight against COVID-19, and clarified the responsibilities of the local governments, relevant departments, organizations, and individuals so as to have the participating athletes, coaches, and staff of the events abide by the regulations and requirements for the fight against COVID-19 and ensure the successful holding of those events.

At the Tokyo Paralympics, the Chinese Olympic delegation attached great importance to ensuring the health and safety of disabled athletes. We have formulated plans for the fight against COVID-19 with a clear division of responsibilities and strict reporting of the whereabouts of Chinese athletes. We supervised each team to abide by the requirements of the organizing committee of the Tokyo Paralympics and the Chinese Olympic delegation and achieved the goal of zero infection. We will draw on our epidemic control experience in Tokyo to prepare for and participate in the Beijing 2022 Paralympic Games. In particular, the practices for the fight against COVID-19 in the next three months will offer experience and reference for China's winter Paralympic delegation in their overseas visits for competitions.

As the training and preparations for the Beijing 2022 Winter Paralympics enter their final stages, we will continue the training and preparations in the context of regular epidemic prevention and control, strive to do well at Beijing 2022, and win honor for the country. We will make our due contribution to hosting a simple, safe, and wonderful winter Paralympics. Specifically, we will achieve this by:

First, we will adjust our plans as necessary. Under the leadership of the CDPF leading group for the 2022 Winter Paralympic Games, we will analyze the changes to the epidemic and further improve the work plan to ensure the training and participation in the event in an efficient and orderly manner.

Second, we will select top athletes for the event. We will beef up epidemic prevention and control along with athletes' training, and formulate sound training plans to ensure that Chinese athletes can complete their training to the final stage before the 2022 Winter Paralympic Games. We will hold international events in due time to offer more opportunities for athletes and sports teams to get international points.

Third, we will participate in international events. We will seek to compete in international events held in the next final months before the Games in a bid to increase the Chinese athletes' rankings and qualifying opportunities for more qualified participants.

Finally, we will strengthen the institutional guarantee. We will further improve supporting measures for athletes and enhance the supports and services for their teams and training bases. Thank you.

Asahi Shinbum:

The playbook for COVID-19 countermeasures for Beijing 2022 issued the day before yesterday stipulates that all Olympic participants arriving in China will be under closed-loop management. The Tokyo Olympics adopted the same practice but ended up having many violators. What measures will be adopted at the Beijing Winter Olympics to ensure compliance with the regulations in the fight against COVID-19? Thank you.

Zhang Jiandong:

Thank you for your question. We issued the playbook for COVID-19 countermeasures for Beijing 2022 the day before yesterday, drawing great attention from all sectors of society. Given that the global epidemic situation is still severe and complicated, in order to prevent the possible spread of COVID-19 and ensure the safety of Olympic participating parties, stakeholders, and the Chinese people, we worked with the IOC and the IPC, drawing on China's successful experience in the fight against COVID-19, and that of major international competitions held in the past and at present, and decided to conduct strict closed-loop management for the people involved in the 2022 Winter Olympics. The closed-loop management policy is one of the most distinctive measures for the fight against COVID-19 at the Winter Olympics. It is the premise for the Games to be held free of COVID-19.

One of the important characteristics of closed-loop management is that people within the loop, including the stakeholders involved in the Winter Olympics, the Chinese staff and volunteers, are subject to similar closed-loop management policy. They should be in strict separation from the communities. Under the closed-loop management, there won't be tight restrictions on the free movement of athletes and other participants, because they will be provided with dedicated vehicles for them to move freely from their places of residence to the venues, from venues to venues, and between three competition divisions. Moreover, the Olympic villages and other stakeholders within the loop, such as the contracted hotels for the media, will also be provided with a good experience through access to specialty restaurants, licensed retailers, cafes, and gyms, as well as some recreational facilities.

We have adopted such measures in the recent test events, which are basically the same as those in the playbook for COVID-19 countermeasures for Beijing 2022. In the big loop, athletes will be able to have relatively free movement, but they must abide by our related regulations and take dedicated transport vehicles. They will be not allowed to go out of the loop and make contact with communities.

I'd like to stress that the measures in the playbook are made in accordance with the latest scientific achievements and opinions of experts and in reference to the experience of other international events. We believe that these measures can mitigate the risks and impact of the pandemic. We hope all the people involved in the Winter Olympics and Paralympics can cooperate with us to abide by and implement these regulations. As for punitive measures, we will strictly implement related regulations on punishment. We are discussing the details with the IOC to hold those who violate regulations in the manual accountable with possible severe punishments, including warnings, temporary or permanent cancelation of registrations, temporary or permanent disqualification from competitions, ejection from competitions, and disqualification. Thank you.

China News Service:

High-quality urban operations are essential to the safe and smooth hosting of the Beijing Winter Olympics as scheduled. Could you give some information regarding this? Thank you.

Cui Shuqiang:

Thank you for the question. Beijing is making all-out efforts to ensure the smooth running of the Games, a top priority for the city now and for some time to come. We have set up headquarters on city operations composed of an office, 14 working groups, and a command center for the opening and closing ceremonies. The secretary of the CPC Beijing Municipal Committee is the commander of the headquarters, and the mayor of Beijing is an executive commander. To coordinate work in the three competition zones, the headquarters also host the governor of Hebei province as another executive commander. Preparations are proceeding in an orderly manner.

While continuing efforts in epidemic prevention and control, we have formed 142 specialized teams to ensure the smooth operation of urban utilities around the competition venues and five teams responsible for the management of utilities around the three competition zones. These two kinds of teams will work together with teams for venue management to promptly deal with emergencies and better ensure the smooth operation of urban utilities. In particular, we have strengthened supervision concerning workplace safety and conducted safety inspection and checks for potential safety hazards in and around key areas. We have developed a specialized winter energy plan to ensure the supply of water, electricity, gas, and heating in the venues. We have improved the mechanisms for timely response to extreme weather and effective urban sanitation, snow shoveling, and garbage removal. The highway linking Beijing and Zhangjiakou's Chongli district has been put into operation. Now it takes only 50 minutes from Beijing's urban area to Yanqing district via the highway and one and a half hours from Yanqing to Chongli. Efforts are also being made to construct 274.4 kilometers of lanes exclusive for Beijing 2022. We have been improving transportation services on key roads, in transit hubs and stations, and around the venues. We have developed policies for the management of public transportation demands to ensure both the smooth running of the event and normal urban operations. We have also formulated emergency plans in response to different situations such as extreme weather, damage to transportation facilities, and crowded rail transit.

In terms of environment and landscapes, we have been improving the environment in key areas and linking-up roads, stepping up comprehensive environmental management, and building landscapes that integrate the elements of the Games, the Spring Festival, and folk customs. These measures aim to create a warm and convivial atmosphere for the Games. In addition, we have been implementing tasks in eco-environmental conservation for Beijing 2022.

In terms of meteorological service, we have established a joint consultation mechanism with China Meteorological Administration and other relevant departments. Together, we will pay close attention to certain types of weather, such as strong winds, cold waves, smog, and snow; release information about extreme weather in a timely manner; and provide an effective emergency response. We have been implementing measures to ensure good air quality in Beijing. As of Oct. 26, the city's PM2.5 density was 32 micrograms per cubic meter, the lowest over the same period in history.

The preparations for Beijing 2022 have entered a critical sprint period. Beijing will work together with Hebei to ensure the safe and smooth hosting of the Games as scheduled. Thank you.

CCTV:

I would like to ask about the overall progress of the ongoing "Experience Beijing" test events. In particular, how is the feedback from all parties? What's the goal of these test events? And what are the gaps between the current state and the Games-time standard? Thanks.

Zhang Jiandong:

Thanks for your attention. Before the Winter Olympics and Paralympics can officially start, a series of test events or test activities must take place. This is a requirement of the IOC and the IPC and is also standard practice for previous Games. The series of "Experience Beijing" test events started in October and will last until the end of December, including 10 international competitions, three training weeks and two domestic trials. With the coordinated efforts of all parties – especially the hard work of venue teams and the organizing committees of each competition zone – everything has followed a step-by-step process, and all events have gone smoothly as scheduled. Among these events, the Speed Skating China Open, the Asian Figure Skating Open, the Short Track Speed Skating World Cup and time trials in bobsled and skeleton were successfully concluded. The feedback from athletes, international technical officials and individual sports federations has been overwhelmingly positive in terms of venues and facilities, epidemic prevention and control measures, event organization, as well as operation support.

The Wheelchair Curling World Championship is now underway, and several other events will start soon, such as the Luge World Cup. Of course, the luge training week will be held first, followed by the World Cup. There will also be snowboarding and free-ski cross World Cup legs in Zhangjiakou Competition Zone, as well as Continental Cup events for ski jumping and Nordic combined. Preparations for the remaining events are well underway. These test events offer a final opportunity for a field test before the Olympic Winter Games. It is hugely important that everyone accumulates the necessary experience in Games-time epidemic prevention and operation so as to arrange for the smooth running of the Games as scheduled.

The test events are run by international individual sports organizations with special regulations, which results in different characteristics between the test events and the Olympic Winter Games. However, we have carried out comprehensive tests for the Games as scheduled to analyze every element of preparations, run the operating mechanisms and accumulate more experience.

The goals of the test events you just asked about mainly concern three aspects: first, anti-epidemic measures, fields and facilities; second, event organization and venue operation; third, event services and peripheral support, including the command and dispatch system. These are the priorities for the test events and the goals to be achieved. As such, we focus on the following tasks:

First, we conduct a thorough examination of anti-epidemic measures and ensure strict implementation of those measures. More than 2,000 overseas athletes, team officials, international technical officials and scoring professionals are participating in the test events. Therefore, we have implemented measures such as pre-departure prevention and control, vaccination, and nucleic acid testing for arrivals to China. In addition, a closed-loop management policy has been strictly enforced during these test events, using the same management method as the Olympic Winter Games. We will adhere to a system of "no overlapping of partitions, no crossing of streamlines, strict control of meetings, and no cross-boundary of personnel." These four phrases indicate that the closed-loop management within venues, especially in the design of streamlines, aims to mitigate interactions between people. We are dealing with these details to examine anti-epidemic measures.

Second, we work hard to organize the events and improve operational support capabilities. As I mentioned earlier, one of the main goals of the test events is to check whether the facilities and venue equipment can meet Games-time operation standards, including whether the quality of the ice surface and snow track can meet the requirements of individual sports organizations. The functionality of timing and scoring systems, TV broadcasts, sports shows, award presentations, interviews and doping tests are likewise interconnected. So the operation support for venues and facilities is another important aspect of our examination. Through such tests, we can discover as many existing problems and weak links as possible.

Third, we provide elaborate services to improve the participant experience. We have taken competitions and operations into consideration when providing athletes and various stakeholders with a better experience, especially under closed-loop management during the test events. In this regard, we have made arrangements to take care of participants and service staff, striving to provide comfortable, convenient and safe services, so as to ensure that problems and needs are heard, the progress of coordination and handling is followed up, and the resolution of problems are checked. Cai Qi, secretary of the CPC Beijing Municipal Committee has described this as the Olympic Winter Games version of "dealing with a complaint when receiving it," or handling complaints in a timely manner. The test events have employed that method, and staff at all venues have heeded the views of all participants to make further improvements.

In short, we have identified some problems that need to be further optimized and improved through the first few test events. We also conduct reviews and assessments every day to discover problems and solve them one-by-one, and continuously enhance our capacity to organize the Games. Please pay more attention and offer help. Thanks.

China Daily:

My question goes to Mr. Yan from Hebei province. We all know that Zhangjiakou city in Hebei province, as a competition zone of the Olympic Winter Games, will host most of the snow competitions, and has both reconstructed and built new venue complexes such as the Genting and the Guyangshu clusters. As the international test events are just around the corner, we would like to learn about how the preparations are going for these venues? And what are the plans and arrangements for post-Games use of the newly-built venues? Thanks.

Yan Pengcheng:

Thanks for the media attention to the preparations of Zhangjiakou Competition Zone. Beijing and Zhangjiakou will co-host the 24th Olympic and Paralympic Winter Games, which represents the trust in, and care for, Hebei province of the CPC Central Committee with Comrade Xi Jinping at its core, bringing rare and significant development opportunities. The Hebei provincial Party committee and government will firmly implement the guiding principles of General Secretary Xi Jinping's important instructions on the Winter Olympics and will regard the smooth hosting of the Olympic Winter Games as a major political task, deploying various key tasks for event organization and bolstering it with efforts from the whole province.

As the journalist mentioned, Zhangjiakou, being one of the three competition zones for the Beijing 2022 Olympic and Paralympic Winter Games, will hold a majority of the snow events. In Zhangjiakou, athletes will compete for 51 gold medals of the Olympics Winter Games and 46 gold medals of the Paralympic Winter Games. We have built four competition venues and five non-competition venues in Zhangjiakou. The four competition venues are the National Ski Jumping Center, the National Cross-Country Skiing Center, the National Biathlon Center, and the Genting Snow Park. The five non-competition venues are the Winter Olympic Village, the Main Press Center, the International Broadcasting Center, the Awards Plaza, and the Uniform and Registration Sub-Center. The construction of venues with high standards and high quality constitutes a top priority in the preparation of the Winter Games. Here, I'd like to share with you some information from the following three aspects.

First, the venues in Zhangjiakou boast attractive highlights. All the venues here are concentrated in the core region of Taizicheng area in Chongli district. While building the venues, we earnestly followed the three concepts of athlete-orientation, sustainable development, and frugality in running the Games, adhered to the overall plan and international standards, organized top teams at home and abroad, and formulated a series of scientific plans for the construction of venues and support facilities. By doing this, we strive to develop high-quality, eco-friendly, and corruption-free projects with cultural appeal. We planned and designed the construction of major venues as a whole. For example, we built a three-kilometer-long circular path connecting the National Ski Jumping Center, the National Cross-Country Skiing Center, and the National Biathlon Center. The image of the circular path being covered with snow in winter has given it the nickname "Ice Jade Ring." The National Ski Jumping Center, nicknamed "Snow Ruyi," not only has the longest ski jumping track in the world but also perfectly resembles the shape of a "Ruyi," a traditional Chinese ornament symbolizing good luck. In this way, the center can showcase Chinese culture and tell Chinese stories to the world with its magnificent and elegant curves.

Second, the major venues have been awarded international certification. By the end of last year, Zhangjiakou competition zone had fulfilled all the construction tasks for 76 events. In August this year, the Winter Olympic Village became ready to receive dwellers. Not long ago, experts of sports unions and federations for winter events conducted the final inspection and awarded certifications to the competition venues and training tracks in Zhangjiakou competition zone. They gave full recognition to the quality of the venues and believed that all the venues had met the competition requirements. In particular, "Snow Ruyi," "Ice Jade Ring," and other landmark structures were spoken of highly by the International Olympic Committee and winter sports unions and federations, who held the opinion that the National Ski Jumping Center is currently a unique ski jumping venue with the most creative design in the world and is one of the world's most spectacular venues. They also believed that the Genting Snow Park is one of the world's best venues for snowboarding and freestyle skiing.

Third, we have considered and made arrangements for the post-Games use of the venues, an issue which has always been a focus of attention among all parties. In order to give full play to the post-Games functions of the Zhangjiakou venues, we have studied and developed special schemes. The overall consideration is to fully leverage the traffic and location advantages of the Taizicheng area where the venues are situated; take advantage of favorable conditions, including good climate; and actively promote the market-centered operation of the venues. By hosting various kinds of major sports events, carrying out extensive mass snow and ice cultural and sports activities, we aim to build Zhangjiakou competition zone into an integrated snow and ice entertainment center and summer resort that can operate 24/7 all year round.

For instance, after the Games, the Genting Snow Park will be developed into a mountain resort combining services in sports, conferences, leisure, and holiday activities, with a focus on snow and ice sports as well as mountain resort services. The National Ski Jumping Center will be transformed into a characteristic business tourism area, integrating high-end meetings and leisure experiences. The National Cross-Country Ski Center will be turned into a mountain park, where snow and ice cultural and sports activities are organized in both winter and summer. The National Biathlon Center will be built into a ski training and winter sports experience base suitable for young people, while serving as a site for specific national sports training and events holding.

We welcome friends from the media to visit the Zhangjiakou competition zone more for reporting and sightseeing. Thank you.

Beijing Youth Daily:

My question is about the Paralympic Winter Games. China participated in the Paralympic Winter Games for the first time in 2002. Nowadays, the number of Paralympic Winter Games athletes in China has increased from less than 50 to more than 1,000, and we have won many international championships on many events. How can the Paralympic Winter Games promote the participation of people with disabilities in snow and ice sports in China?How to mobilize more people with disabilities to answer the call of "engaging 300 million Chinese people with sport on snow and ice?" Thank you. 

Wang Meimei:

Thank you for your attention to the development of snow and ice sports for persons with disabilities. This is a very good question and I'll be happy to answer it. Well, with the popularity and development of the Paralympic Winter Games events in China, snow and ice sports for people with disabilities have made great progress since Beijing won the bid for Beijing 2022 Olympic and Paralympic Winter Games. After winning the bid, China held snow and ice sports season activities for people with disabilities for five consecutive years, beginning 2016. The number of places for organizing such activities increased from 14 to 31, constantly expanding the coverage regarding both places and participants. Advanced by diverse parties and drawing much social attention, such activities have enjoyed a higher level, more scientific structure, and richer content with innovative and interesting events. With the popularization of winter sports for persons with disabilities, overall, the ice and snow sports for this group of people are developing very fast. Every year, more than 300,000 people with disabilities participate in snow and ice sports season activities, contributing to the vision proposed by General Secretary Xi Jinping of "engaging 300 million Chinese people with sport on snow and ice."

During the snow and ice season activities, we undertook leading national activities in Beijing and Hebei province, taking Heilongjiang, Jilin, Liaoning, and Inner Mongolia as the main sites to conduct activities. We have also expanded to eastern and southern China, including provinces of Jiangsu, Zhejiang, and Guangdong to host events. At the same time, we also mobilized Shaanxi province, the Xinjiang Uygur Autonomous Region, and other western regions to participate. We relied on the five special associations (the China Association for Sight-Impaired Persons; China Association for Hearing-Impaired Persons; China Association for Persons with Physical Disabilities; China Association for Persons with Intellectual Disabilities and Their Relatives; China Association for Mentally Disabled Persons and Their Relatives) of China Disabled Persons Federation to actively carry out the snow and ice sports activities for the people with disabilities.

With joint participation and promotion, many activities featuring snow and ice were held according to local conditions. For example, we carried out experience activities for the Paralympic Winter Games and conducted mass snow and ice competitions, including those on synthetic ice and snow. We also organized snow and ice carnivals and summer camps. Since the outbreak of the COVID-19 pandemic, we have carried out many online winter sports rehabilitation and fitness programs to guide people with disabilities and engage them with diversified activities. Meanwhile, we created and promoted many activities popular among persons with disabilities, such as mini-skiing, floor curling, and floor hockey. In order to further popularize and develop snow and ice sports for people with disabilities, we have compiled some guidance manuals on winter fitness programs for disabled persons and made relevant videos, and then distributed them to the communities and grassroots units. In this way, we can drive and promote more disabled people to participate in the whole winter sports activities and enjoy the joy brought by snow and ice.

The Beijing 2022 Paralympic Winter Games are approaching, and we will hold the sixth snow and ice event for people with disabilities, which is expected to further promote the participation of disabled persons in the Beijing 2022 Olympic and Paralympic Winter Games and create a favorable atmosphere for making the two games a big success. Thank you.

Southern Metropolis Daily：

How is the construction of venues going for the Beijing Winter Olympics and the supporting facilities coming along? Thank you.

Cui Shuqiang:

Thanks for your attention. According to the requirements of the Beijing 2022 Organizing Committee, a total of 39 venues are to be used for the 2022 Olympic and Paralympic Winter Games, of which the 30 in the Beijing and Yanqing competition zones are coordinated and constructed by the Beijing Municipal Government. So far, 28 of the 30 projects, including competition venues and the Winter Olympic Village, have been completed and undergone test events. The remaining two projects, the National Stadium and the Awards Plaza, are currently being renovated or constructed. In addition, the construction of the 33 temporary facilities for the Winter Olympic and Paralympic Games are proceeding as planned and will be completed by the end of December this year.

When Beijing bid for the 2022 Olympic and Paralympic Winter Games, it committed to providing a barrier-free environment, signifying an important part of the preparations for the Winter Olympics. Through our continuous efforts, we have significantly improved the normative, applicable and systematic level of the barrier-free environment in Beijing. The core areas of the city and the competition service areas for the Games have all become barrier-free. Citywide, we have improved 289,000 barrier-free facilities and built 100 barrier-free demonstration blocks, 100 "15-minute convenient life circles" and more than 900 barrier-free demonstration projects. During the test events, we received feedbacks from people who tried out the barrier-free facilities and will continue to make improvements accordingly. However, the feedbacks have generally been satisfactory. Our goal is to build the venues well and ensure the success of both the Winter Olympics and Paralympics. Thank you.

The Straits Times:

I have two questions. First, given how stringent your COVID-19 management of the Games is going to be, how much resources will be deployed? Will you pool resources from elsewhere of the country? Is this going to cause gaps in your COVID-19 management in other parts of the country? How will you ensure the Games are not disrupted by positive cases? My second question is about the open and closing ceremonies. Who and how many people will get to attend? And how will they be managed?

Zhang Jiandong:

Thank you. Your question is extensive. I will answer it in two parts. In terms of anti-COVID-19 measures, indeed, epidemic prevention and control is the biggest challenge for us. We should say that without a guarantee of safety, there would be no success in the Olympic Games. We have always put epidemic prevention and control at the top of our priorities.

During the 2022 Olympic and Paralympic Winter Games, we will adopt a series of comprehensive measures to minimize the risk of imported cases and ensure the health of all participants of the Games and the health of the people of the host cities. Our goal is to ensure the Beijing Winter Olympics and Paralympics run safely and smoothly as scheduled. After consulting with the IOC and the IPC and extensively soliciting opinions of all stakeholders, we have formulated and released the first edition of a playbook for COVID-19 countermeasures. The primary purpose of the playbook is to ensure the safety and health of all athletes, participants and the Chinese public.

The playbook mainly focuses on the following aspects: First, we will strengthen remote monitoring measures to effectively reduce the risk of imported cases, including self-health monitoring for at least 14 days prior to departure for China and conducting COVID-19 nucleic acid tests as required. Second, we will implement strict vaccination policies. Third, we will implement strict closed-loop management upon arrival in China. Fourth, we will implement regular prevention and control measures throughout the Games. We have incorporated epidemic prevention and control for the Games into the local government's anti- epidemic system, which is an important feature. Cai Qi, secretary of the Beijing Municipal Committee of the Communist Party of China, is also president of the BOCOG. He directs the anti-epidemic work of both Beijing and the Games. The epidemic prevention and control of venues and activities related to the Games have been integrated into the unified anti-epidemic management of the city for unified deployment of resources. All this will help provide a strong guarantee of safety for the Game and host city. Please be rest assured about that.

Next, I will brief you on the opening and closing ceremonies. The opening and closing ceremonies of the Games attract much attention at home and abroad. Adhering to the guiding principles of "simplicity, safety and excellence," we are preparing for the opening ceremony. The Beijing Winter Olympic Organizing Committee has established an opening and closing ceremonies department, as well as a cast team consisting of members of different ages. Through hard work and cooperation with the IOC and the IPC, a creative plan has been approved. Production and rehearsals are being carried out in an orderly manner. As we know, the opening ceremony will be held at the National Stadium, or Bird's Nest. So, we set up an operation team at the Bird's Nest to organize and coordinate the opening and closing ceremonies. We will share specific information about the opening ceremony with friends from the media at a later time. I hope you will stay tuned. Thank you.

Cover News:

During preparations for the Winter Olympic and Paralympic Games, General Secretary Xi Jinping has given important instructions on hosting a "Green Olympics." He stressed that we should prioritize ecological conservation, conserve resources and stick to an environment-friendly approach to make "beautiful China" a defining feature for the Games. What are the specific measures that Zhangjiakou city has taken to ensure a "Green Olympics". Thank you.

Yan Pengcheng:

Thank you for your interest in the implementation of "green Olympics" in the Zhangjiakou Competition Zone. General Secretary Xi Jinping has repeatedly stressed the commitment to hosting a green, sharing, open, and clean Olympics. We have always kept General Secretary Xi Jinping's remarks firmly in mind. Under the strong leadership of the Central Committee of the CPC and the State Council, and the unified command of the Beijing Organizing Committee for the 2022 Winter Olympic and Paralympic Winter Games, we are carrying out all of the preparation work in a meticulous manner. As the Capital Water Source Conservation Functional Zone and the Ecological Environmental Supporting Zone, we are attaching more importance to the implementation of "green Olympics" in Zhangjiakou. Over the past few years, we have resolutely implemented Xi Jinping Thought on Ecological Civilization, and demonstrated the concept of "green Olympics" through the whole process and all aspects of the preparation for the Winter Olympics. In doing so, we have focused on the following five aspects:

First, green venues. All construction work has been carried out to a high standard and high quality. We have protected the structures and landscapes of the mountains to the greatest extent, decreased the negative impact on the environment and reduced resource waste. We have arranged and built low-energy venues and "sponge competition zones." Four competition venues have been recognized as three-star green snow sports venues. The Zhangjiakou Olympic Village has also been recognized as a three-star green building.

Second, green ecology. The city of Zhangjiakou has continued to carry out campaigns to keep skies blue, waters clear, city green, and lands pollution-free. Since the successful bid for the Games, the city has added 13.68 million mu of afforestation. The current average density of PM2.5 particles stands at 29 micrograms per cubic meter, while that of Chongli district 16 micrograms per cubic meter. The Bashang region has taken the lead in striking a balance between underground water exploitation and replenishment. The safe utilization rate of contaminated soil has reached 100%.

Third, green industries. We have vigorously promoted the development of such industries as ice and snow gear manufacturing, ice and snow tourism, big data, high-tech equipment manufacturing, and modern services. The proportion of high energy-consumption industries in industrial enterprises above designated size dropped by 7.2 percentage points compared to 2015, the initial year of the preparation work. The proportion of the added value of high-tech industries in industrial enterprises above designated size has increased by 20 percentage points over five years. In particular, the Ice and Snow Sports Equipment Industrial Park has been honored as a national demonstration base for new industrial industries. The "cold resources" have gradually helped heat up the economy.

Fourth, green energy. We have actively promoted the development of wind power generation and photovoltaic power generation. The Zhangbei renewable energy flexible DC grid test and demonstration project officially entered into operation, and can deliver 14.1 billion kilowatt-hours of clean electricity to the Beijing area every year and ensure a 100% clean energy power supply for the Zhangjiakou Competition Zone during the Winter Olympics.

Fifth, green transport. Zhangjiakou has strived to become a national transit metropolis and preferentially developed demonstration city for public transportation. The city has added over 800 clean energy buses, upgraded a total of 48 bus routes, and added 68 bus routes. Bus stops at intervals of 500 meters have covered more than 90% of the downtown area.

We firmly believe that with the implementation of the "green Olympics" concept, the development of the construction of the Capital Water Source Conservation Functional Zone and the Ecological Environmental Supporting Zone, and the further improvement of the Beijing-Zhangjiakou eco-environment joint prevention and control mechanism, the ecological environment of Zhangjiakou and even the entire Beijing-Tianjin-Hebei region will continue improving and become better and better. Thank you.

Shou Xiaoli:

Now for the last question.

Wenweipo:

In its bid to host the 2022 Winter Olympic Games, China pledged to get 300 million people involved in winter sports. How has the popularization of winter sports in China progressed? Thank you.

Li Yingchuan:

Thank you for your question. Getting 300 million people involved in winter sports is a promise made by General Secretary Xi Jinping on behalf of the Chinese government. It has always been of great concern. As a country with a vast territory and diverse natural conditions, winter sports have been carried out mainly in the areas with abundant snow and ice resources, such as northeastern, northern, and northwestern China. After the successful bid for the 2022 Winter Olympic Games, all parts of the country have carried out a set of public winter sports in line with local conditions under the goal of getting 300 million people involved in winter sports set by General Secretary Xi Jinping. The northern parts of China have a long tradition of winter sports and abundant snow resources, while southern China has a lack of snow and ice. However, with the development in the economy, society, and science and technologies, the increasingly mature ice-making technology has allowed winter sports to go nationwide. For example, with the booming development of indoor ice sports in some southern cities. Noticeably, ecological snow-making technologies have prompted the construction of outdoor ski resorts in southern cities and regions with favorable conditions. For example, there are numerous indoor ice rinks in Hainan province. Additionally, many places have adopted new technologies, new materials and new skills, represented by VR, AR, dry ski slopes, liquid synthetic ice, inflatable domes, detachable devices and so on. It's fair to say that more and more citizens have stepped onto ice rinks and entered ski resorts, and are fully enjoying the health benefits and joy brought by winter sports.

Winter sports have become leisurely and fashionable sports among the public, especially young people. They have also become a lifestyle for Chinese families. Therefore, those involved in winter sports are spread all over the country. Despite the vigorous development, our industrial foundation is still vulnerable compared to countries traditionally associated with winter sports. However, as the world's second largest economy, China has made noticeable achievements in its technological strength and innovative capacity. Therefore, China's comprehensive strength is fully capable of supporting the leapfrog development of winter sports. Concentrating on the goal of getting 300 million people involved in winter sports, from the central government to local governments, the country has formed a pattern featuring joint participation among multiple departments and synergetic development among the whole of society. We believe that under the joint efforts of people from all walks of life, we are fully capable of achieving the goal of getting 300 million people involved in winter sports, delivering the development fruits of winter sports to the public, and making active contributions to the development of international Olympic sports. Thank you.

Shou Xiaoli:

The SCIO will hold a series of press conferences on the 2022 Olympic and Paralympic Winter Games. We welcome all friends from the media to participate in them. That is all for today's press conference. Thank you to the spokespersons and friends from the media. Goodbye.

Translated and edited by Zhang Liying, Wang Qian, Zhu Bochen, Ma Yujia, Duan Yaying, Li Huiru, Zhang Junmian, Zheng Chengqiong, Huang Shan, He Shan, Qin Qi, Xu Xiaoxuan, Yuan Fang, Dong Qingpei, David Ball, Drew Pittock, and Tom Arnstein. 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:

Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA)

Zhang Maoyu, vice chairman of the CIDCA

Zhou Liujun, vice chairman of the CIDCA

Deng Boqing, vice chairman of the CIDCA

Chairperson:

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

Date:

Oct. 26, 2021

Shou Xiaoli:

Good morning, ladies and gentlemen. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very happy to be joined by Mr. Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA), and the agency's vice chairmen, Mr. Zhang Maoyu, Mr. Zhou Liujun and Mr. Deng Boqing, who will introduce China's COVID-19 assistance and international development cooperation, and answer any questions you have. Next, I'll give the floor to Mr. Luo Zhaohui. 

Luo Zhaohui:

Good morning, friends from the media. It is a pleasure to meet you all. This is the first press conference held by the CIDCA since its establishment more than three years ago. I would like to thank you for your long-term interest in China's foreign aid and for your support of our agency's work. I would also like to thank the SCIO for inviting us to participate in today's press conference.

Yesterday, a conference marking the 50th anniversary of the restoration of the People's Republic of China's lawful seat in the United Nations was held in the Great Hall of the People. President Xi Jinping attended the conference and delivered an important speech. What you may not know is that our foreign aid work played a unique role in this historic event. For U.N. General Assembly Resolution 2758, 22 of the 23 co-sponsors are our recipient countries. This is the epitome and pride of China's foreign aid cause from "yesterday."

At present, the COVID-19 pandemic continues to spread, the world economy is struggling to recover and sustainable global development is facing severe challenges. Under the personal command and deployment of President Xi Jinping, we have not only achieved the "double lead" in fighting the pandemic and in economic recovery, but also carried out the longest period and widest scope of emergency humanitarian aid operation since the founding of the People's Republic of China (PRC). Last year, China provided a large number of anti-pandemic materials such as protective suits, masks and ventilators to 150 countries and 13 international organizations. Since the beginning of this year, we have provided more than 1.5 billion doses of vaccines to 106 countries and four international organizations, which have played an important role in controlling the pandemic and leading the anti-pandemic cooperation. This is the rainbow and glory of our foreign aid cause for "today."

Our foreign aid cause has gone through 71 years of glorious history from 1950 to the present day, carrying a strong friendship and bearing fruitful results. From the Tanzania-Zambia Railway to the Karakoram Highway, from hybrid rice to Juncao planting, from artemisinin to COVID-19 vaccines, these are all amazing business cards and witnesses of China's aid. You can see "China Aid" written on the packaging of donated vaccines — this is the very business card of China. The foreign aid work is a glorious chapter in the 100-year history of the Communist Party of China (CPC). So far, China has provided various types of aid to more than 160 countries, including implementing thousands of complete projects and material aid projects, carrying out tens of thousands of technical cooperation and human resource development projects, and offering over 400,000 training opportunities for various types of personnel from developing countries. These achievements are inseparable from the hard work of our generations of foreign aid workers, and the continuous struggle of various departments on our foreign aid front.

Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's foreign aid and international development cooperation have opened up new prospects and made new achievements on the existing basis.

China continues to innovate its ideas on international development cooperation. With a big heart and a global vision, President Xi Jinping put forward the important concept of a community with a shared future for mankind, the Belt and Road Initiative, as well as the principle of upholding justice while pursuing shared interests, the principles of sincerity, real results, affinity, good faith, and the principles of amity, sincerity, mutual benefits and inclusiveness. These ideas have inherited and carried forward Marxist internationalism and humanitarian spirit, and at the same time have combined with such traditional Chinese concepts as "making the world better if you're capable" and "creating a world of harmony and unity." Our foreign aid work is aimed at realizing these important thoughts and practicing these important ideas.

China's international development cooperation mechanism is improving day by day. More than three years ago, the Chinese government specially established the CIDCA to provide an important mechanism guarantee for promoting the quality and upgrading of international development cooperation. We also set up the South-South Cooperation Assistance Fund and established the Institute of South-South Cooperation and Development to help developing countries enhance their capacity for independent development.

China's contribution to international development cooperation has expanded significantly. We have contributed "Chinese solutions," "Chinese wisdom" and "Chinese power" to solve the world's development problems. In the face of endless global challenges and disasters, "Chinese aid" has never been absent. The focus of our aid is on vaccines and anti-pandemic supplies, while routine aid has not stopped, especially for overseas projects involving people's livelihoods. Taking into account the continuity of these projects and the urgent needs of recipient countries, we have overcome many difficulties and continued our aid. Of course, we did not relax for a moment regarding project safety, supervision and anti-corruption issues. We also had to change some foreign aid training projects from in-person to a combination of online and offline methods.

China is still a developing country. We attach great importance to and actively conduct foreign aid, first of all in order to practice Xi Jinping Thought on Diplomacy. Human beings share the same Earth, depend on each other and share a common future. President Xi Jinping creatively put forward the vision of building a community with a shared future for mankind. Our foreign aid work is a great practice toward building a community with a shared future for mankind, and is also the lofty embodiment of the CPC's original mission in the cause of human progress.

Second, our work is in order to consolidate and deepen friendly cooperation with other developing countries, expand our circle of friends, and seek common prosperity and development. The current international situation is not peaceful, and a Cold War mentality and ideological disputes have never ceased. As a responsible major country, it is increasingly important and urgent for China to carry out foreign aid, lead South-South cooperation, build consensus on development and practice true multilateralism.

Third, our work is in order to serve domestic economic development and deepen reform and opening-up. While helping recipient countries develop their economies and improve people's livelihoods, our foreign aid effectively drives China's high-quality products, advanced technologies and industry standards to "go global." Foreign aid also plays a very important role in stimulating trade and investment cooperation between China and recipient countries, deepening China's all-round exchanges with other countries, and creating a good external environment for China's economic and social development.

Fourth, our work is in order to give back to the international community for their good deeds. As the saying goes, favors should be returned many times more. We all know from studying the Party's history that the Communist International provided selfless aid in the founding, establishment and development of the CPC. Some important foreign friends such as Henk Sneevliet, Norman Bethune and Dwarkanath Kotnis came to China from afar. Both the construction of the PRC and its reform and opening-up have received great support from the international community. When the Wenchuan Earthquake occurred in 2008, I was the Chinese ambassador to Pakistan. Friends from the Pakistani military proposed sending a medical team to Wenchuan. I explained that the conditions for receiving people in that area were limited. They said that it didn't matter, they could even just drink water and eat vegetables and tree leaves, but they wanted to help their "Chinese brothers." As the saying goes, roses given, fragrance in hand. At the same time, China has provided aid to other countries without asking for anything in return — this has been recognized with high praise and help from the international community. At a session of the U.N. Human Rights Council this year, the West carried out unreasonable attacks on China about issues related to Xinjiang and Hong Kong, and more than 90 countries spoke out for us from a sense of justice. This is a vivid example.

Foreign aid needs to handle the dialectical relationship between "giving roses" and "leaving fragrance." It is seriously worth thinking about whether to give or not give, what to give, when to give, whether one is deliberately planting flowers to enjoy the fragrance, or planting them but then unintentionally enjoying the fragrance. When providing foreign aid, China has done what it can and has done its best. This has achieved multiple political, diplomatic, economic and social benefits, and has played an irreplaceable role in the process of the Chinese nation standing up, getting better-off and becoming stronger.

China's foreign aid and international development cooperation will continue to be guided by Xi Jinping Thought on Diplomacy, with the purpose of promoting the building of a community with a shared future for mankind, with the principle of upholding justice while pursuing shared interests, and the mission of serving China's overall diplomatic policy and jointly building the Belt and Road Initiative. It will continue to take into account both bilateral and multilateral relationships, combine soft and hard aid, coordinate grant assistance and concessional loan, focus on project implementation, supervision and evaluation, and continue to create new glories in the cause of foreign aid.

On the basis of traditional bilateral assistance, we have increased exchanges and cooperation with Western countries and international organizations such as the U.N., and actively explored multilateral and tripartite cooperation. While implementing complete projects, we have focused on teaching over giving, promoting personnel training and sharing of governance experience, and use a combination of grant assistance and concessional loans to reduce project financing costs. We have strengthened the supervision of the entire chain of projects, prevented corruption risks, improved project quality, and focused on post-project evaluation to ensure the sustainable development of foreign aid.

Thank you everyone. Next, my colleagues and I will answer your questions.

Shou Xiaoli:

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

CCTV:

We all know that China first began providing foreign aid to friendly neighboring countries. What assistance did China provide those countries in their fight against COVID-19? What has been achieved? Thank you.

Luo Zhaohui:

That's a very good question, thank you. China started providing foreign aid to neighboring countries 71 years ago. In 1950, a Chinese military advisory group was sent to Vietnam to assist the country in its fight against the French invasion, and the Chinese People's Volunteers (CPV) army entered the Democratic People's Republic of Korea (DPRK) in the war to resist U.S. aggression and aid Korea. 

During the past 71 years, the "neighborhood" has always been the top priority for China's diplomacy. It is often said that it is difficult for China to remain peaceful and secure unless its neighbors are secure. Neighborhood is the foundation for our livelihood, development and prosperity, and our privileged direction in building a community with a shared future for mankind. Since the outbreak of COVID-19 last year, neighboring countries have lent helping hands to China, a testament to the verses "Miles apart but close at heart." The prime minister of Cambodia and Pakistan's president paid special visits to China, and Mongolian president donated 30,000 sheep as a token of support to Wuhan city. A 10-year-old Mongolian child studying in China donated 999 yuan ($156) to Wuhan city and another two areas of China which were relatively seriously affected, expressing support for China's COVID-19 epidemic fight. We are all deeply moved by the kindness. There is a Chinese saying: "A favor of a drop of water should be repaid with a surging spring." Since the outbreak of the pandemic, the international community, including neighboring countries, has provided valuable support, and of course, we should return the favor. Thanks to the leadership of President Xi Jinping, and under the coordination of the Joint Prevention and Control Mechanism of the State Council and the direct command of State Councilor and Foreign Minister Wang Yi, China's Ministry of Foreign Affairs, Ministry of Commerce and the National Health Commission have proactively coordinated and launched timely humanitarian aid. We have done the following work.

First, meeting urgent needs. Emergency relief demands urgent action. Although providing foreign aid has its own procedures, we have to handle urgent and difficult cases with creative thinking and special measures. At the end of April, South and Southeast Asia saw a resurgence of COVID-19 cases due to the Delta variant. China launched an emergency plan to support neighboring countries fighting the pandemic. To overcome difficulties such as shortages of goods and production schedules, we donated emergency supplies including oxygen cylinders, as well as oxygen generators and ventilators to Nepal, Afghanistan, Laos, Cambodia, Myanmar, Sri Lanka and other countries. Within several days, we sent a team of medical experts to Laos and delivered anti-epidemic materials to Nepal.

Second, providing various support. Since the outbreak of COVID-19, China has supported neighboring countries in their fight against the pandemic through numerous means, such as donating medical supplies and vaccines, sending medical experts, holding online meetings, and setting up reserves of anti-epidemic materials in South Asia. Ever since China achieved notable success in slowing the spread of the virus, we have gained invaluable experience and time for the world and didn't disappoint neighboring countries. So far, China has donated multiple batches of anti-epidemic materials and more than 80 million doses of vaccines to neighboring countries and regions, especially sending out groups of vaccine experts over 10 times while holding over a thousand of video conferences to share our experience and trained foreign medical staff, which had direct beneficial effects.

Third, moving the anti-pandemic barrier forward. Since last year, Ruili, a China-Myanmar border city in southwest China's Yunnan province, has been closed three times due to the pandemic. We have worked with domestic departments and Myanmar's government to donate anti-epidemic materials and vaccines to northern Myanmar. By establishing an effective mechanism to curb any cross-border spread of the virus, the epidemic in northern Myanmar has been controlled, and China's approach to preventing the coronavirus from entering the country and stemming a domestic resurgence has been guaranteed, with benefits that extend into anti-epidemic, diplomatic and political areas.

Fourth, strengthening good neighborliness. China's emergency aid to neighboring countries is still underway. A friend in need is a friend indeed. China's timely and efficient assistance, first, has played an important role in helping relevant countries control the pandemic, protect people's lives and reduce property losses. Second, it has contributed to domestic epidemic prevention and control. Third, it has enhanced traditional and people-to-people friendship between China and neighboring countries. Fourth, it is in sharp contrast to the indifference of some major countries towards epidemic control in other countries. We are glad to see that many foreign political leaders attended the handover ceremony of China's donations at the airport. Some leaders took the lead in receiving Chinese vaccines, and a lot of foreign media outlets praised Chinese vaccines as "timely rain." During the past two years, we've often worked overtime and met extraordinary situations with extraordinary perseverance, receiving recognition from both leaders and society. Thank you.

Beijing Youth Daily:

What's the progress of China's COVID-19 assistance to Africa, Latin America and the South Pacific region? What measures will be taken in the future? Thank you.

Zhou Liujun:

China and countries in Africa, Latin America and the South Pacific region enjoy a history of profound friendship and share weal and woe together. We are good partners, good friends and good brothers on the path of development. Guided by Xi Jinping Thought on Diplomacy, China upholds the values of greater good and shared interests and follows the principles of sincerity, affinity, good faith and real results. Under the framework of Forum on China-Africa Cooperation (FOCAC) and China-CELAC Forum, we have cooperated in areas such as health, agriculture, education and green development, and achieved remarkable results in building an even closer China-Africa and China-Latin America community with a shared future.

Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) was held in 2018. The sudden outbreak of the pandemic brought us a severe test. We have actively responded to multiple impacts of the pandemic and provided support and assistance within our capacity to African countries and the African Union (AU), to aid their economic and social development, mainly in the following aspects.

First, conducting anti-pandemic cooperation. We immediately donated more than 120 batches of testing reagents, ventilators and other anti-pandemic supplies, while providing vaccines to 50 African countries and the AU, and sending medical expert teams to 17 African countries.

Second, supporting economic recovery. We have implemented nearly 400 assistance projects across various fields. Despite the impact of the pandemic, nearly 10,000 Chinese engineers, technicians and medical workers remain in their posts. Likewise, hundreds of assistance projects have already been implemented, which provide strong support for African countries to resume work and production.

Third, advancing project cooperation. We have fully implemented the "eight major initiatives" introduced at the FOCAC Beijing Summit. Construction on the headquarters of the Africa Center for Disease Control and Prevention (Africa CDC) began ahead of schedule at the end of last year. Other projects that China provided aid for such as a children's hospital in Senegal and a center for treatment of infectious diseases in Mauritania's Nouakchott National Hospital were successfully completed and handed over to local governments. Such key medical projects have played an important role in African countries' fight against the epidemic. An additional 50 Chinese assistance projects in each of the six areas of industrial promotion, health, peace and security, green development, trade promotion and people-to-people exchanges will all be completed soon.

Fourth, reducing and canceling debt to alleviate African countries' financial burden.

Fifth, improving capabilities. We have trained more than 25,000 talents and technical personnel for African countries, and cooperated and shared experiences with 45 hospitals in 40 African countries. The governments and people of those nations expressed their sincere appreciation for China's help and cherish China as a true friend of Africa.

China also provided assistance to Latin American countries and island countries in the South Pacific region. We have carried out a large number of assistance projects covering transportation, agriculture, animal husbandry and fishery, infrastructure, culture, education and health, and trained more than 50,000 managerial and technical personnel in various fields, which strongly supported regional economic and social development. More specifically, since the outbreak of COVID-19, China promptly provided anti-epidemic materials and vaccines to countries in need. To date, 53 batches of anti-epidemic materials and 28 batches of vaccines have been delivered to relevant countries. Chinese experts communicated with other countries' medical staff and shared their experiences during video conferences. We have actively implemented the G20 debt relief initiative and helped those countries alleviate their debts.

Next, besides deepening anti-pandemic cooperation, we will focus our foreign cooperation on public health, trade promotion, connectivity, poverty alleviation and benefiting rural workers, digital innovation, green development, peace and security, capacity building and similar fields. Through promoting small but beautiful, advantageous and effective projects, China vows to deliver the benefits of assistance to people of recipient countries, work together to fight against the pandemic, and accelerate economic and social recovery, so as to make greater contributions to building a community with a shared future for mankind. Thank you.

Bloomberg News:

The first question is about the debt issues in Africa. What is the best way to resolve the problems African nations are facing? Secondly, what steps China is taking, if any, to join Paris Club?

Zhou Liujun:

I'll continue and answer the questions about the debts of African nations and joining the Paris Club.

Debts in Africa have attracted much attention. It's a long-standing historical issue. The reasons are complex and not only include changing factors such as the international economic environment but also external reasons such as the rise of protectionism and appreciation of major reserve currencies. Over the past two years, the issue of debts in Africa has become more prominent due to the impacts of COVID-19. China has always paid great attention to debt-related pressures faced by African countries. We always respect the will of African countries in terms of financing cooperation and wish to meet their needs. When we offer interest-free loans and preferential loans, we have fully considered the debt situations and repaying capabilities of recipient countries, adhered to the laws and regulations, done our work in an open and transparent manner, and never sought political gains. 

In the process of cooperation with Africa, we have been committed to pursuing the greater goods and shared interests and upholding the principles of sincerity, real results, affinity, and good faith for developing relations with other developing countries. We have dealt with issues on loans and debts relief in Africa through friendly consultation. China and Africa have a shared future and are facing the difficulties together brought by the pandemic. President Xi and leaders of relevant African countries convened the Extraordinary China-Africa Summit on Solidarity Against COVID-19 and announced a series of important measures such as support of the development of relevant African countries and debt suspension and reduction. China has actively promoted and fully implemented G20's Debt Service Suspension Initiative, signing debt suspension initiatives or reaching consensuses with 19 African countries. China has exempted the least developed countries, heavily indebted poor countries, landlocked developing countries, and small island developing countries in Africa from interest-free loans due at the end of 2020.

We believe that the solution to Africa's debt problems lies in development, and development holds the key to solving all of its problems. It is necessary for African countries to enhance their capacity for independent development and achieve sustainable development. China-Africa cooperation has always been a benchmark for South-South cooperation, and it is also recognized as a model of international cooperation with Africa. According to incomplete statistics, China has built more than 6,000 kilometers of railways, more than 6,000 kilometers of roads, nearly 20 ports, and more than 80 large-scale power facilities in Africa. As an old Chinese saying goes, "To get rich, build roads first." The transportation infrastructure has injected vitality into the development of the African economy. We have also assisted in the construction of more than 130 medical facilities, 45 sports venues, and more than 170 schools. During the pandemic, many Chinese engineering technicians are still sticking to their posts in Africa to ensure the China-Africa key cooperation projects run safely and to provide strong support for the resumption of work and production in African countries. 

As I said, the issue of Africa's debt has attracted much attention and people have various opinions. Meanwhile, we have noticed that some media are peddling allegations that China's loans have created an "invisible debt trap." I can tell you that these are erroneous statements. Many Western, Asian, and African governments, scholars, and research institutions have undertaken detailed investigations on these issues. Not a single developing country has fallen into debt traps due to China's loans. Facts and statistics have fully revealed that allegations "China causes debt trap for Africa" are simply out of political, motives aiming to drive a wedge between China and Africa. I think, regarding China's support for Africa, only African governments and people have the right to speak. 

Now for the second question, as to whether China will join the Paris Club. Currently, China is not a member of Paris Club, but we have participated in some of the Paris Club activities as a non-member, and communication with the member countries of the Paris Club has been smooth.

In the next step, China will adhere to the multilateral debt handling principles of "joint action, fair burden sharing, individual cases handling, and multilateral consensus," strengthen communication and cooperation with all parties, work together to help African countries deal with debt problems and work with Africa to step up the implementation of fruits of the 2018 Beijing Summit of the Forum on China-Africa Cooperation, accelerate the promotion of cooperation projects that meet the urgent needs for the development of African countries, and further strengthen the indigenous driving force for the African economy. At the same time, we proposed that developed countries, multilateral financial institutions, and private creditors match their words with actions, and do more things that are beneficial to the development of African countries and other developing countries. We will work together and complement each other's advantages, and sincerely support developing countries, including African countries, to achieve sustainable development and bring real benefits to local people. Thanks.

Southern Metropolis Daily:

What is the overall situation of the Chinese government's foreign aid in the fight against the pandemic, and what's the next plan? What basic role has China's vaccine assistance played for recipient countries? Compared with the vaccine assistance of the US and the West, what are the characteristics of China's vaccine assistance? 

Deng Boqing:

Thank you for the question. In March of last year, I introduced the 

anti-COVID assistance situation to you on behalf of the China International Development Cooperation Agency (CIDCA). Now one and a half years have passed, the pandemic is still raging worldwide. I checked the data today. So far, the cumulative confirmed cases worldwide have exceeded 244 million, the cumulative number of deaths is over 4.96 million, and fatality rates have reached 2%. Therefore, in such a special period, countries in the world should help each other more than any time to overcome these difficulties together. Under the personal leadership and deployment of President Xi, China has taken the lead in both epidemic fight and economic recovery. Meanwhile, we uphold the concept of a community with a shared future for mankind and actively carry out international cooperation in the fight against the epidemic. We have carried out the most concentrated emergency humanitarian assistance on the most wide-reaching scale since the founding of the People's Republic of China. Let me show you some figures.

In terms of material assistance last year, we provided a large number of anti-epidemic materials such as masks and protective clothing, as well as a large number of medical materials such as ventilators and oxygen cylinders, spanning more than 150 countries and 13 international organizations. We have provided a large number of nucleic acid testing reagents and equipment. We have also sent 37 batches of medical experts to 34 countries, organized technical guidance, and shared anti-epidemic experience with other countries. We have also donated US$50 million to the World Health Organization and US$50 million to UN agencies and other relevant international organizations.

This year, we have fully implemented President Xi's promise to make Chinese vaccines global public goods. So far, we have provided more than 1.5 billion doses of vaccines to 106 countries and four international organizations. Many heads of states thanked President Xi, saying that China's precious support and help is a vivid portrayal of "a friend in need is a friend indeed" and has set a model for international cooperation in COVID-19 response. More than 30 presidents and premiers received Chinese vaccines at the airport and attended handover ceremonies. More than 10 foreign leaders took the lead in receiving a shot of Chinese vaccines. International media have praised the Chinese vaccine as "timely rain."

Now there is also a voice in the international community that questions the safety and effectiveness of Chinese vaccines. There are so many heads of state that spoke highly of and welcome Chinese vaccines. In our work, we have also noticed that the safety and wide use of Chinese vaccines have been widely recognized. The World Health Organization has included Sinopharm vaccines and Sinovac vaccines on the emergency use list, a recognition from the professional and authoritative international organization. From the practical view, first, the safety and effectiveness of Chinese vaccines have been fully verified through the large-scale vaccination in China. Second, the international community has full confidence in Chinese vaccines. International scientific research and clinical data from various countries also provide strong support. We have read some materials and collected some typical data. For example, in Sri Lanka, 95% of the population produced antibodies after receiving two doses of the Sinopharm vaccine, and 81.25% of the population could produce vaccine-induced neutralizing antibodies. The Sinopharm vaccine is effective against the Delta variant of COVID-19. The infection rate after people in Dominica were inoculated with Sinovac vaccines was only 0.04%. In Indonesia, 96% of medical workers vaccinated with Chinese vaccines were exempt from hospitalization, and 94% were exempt from infection. It can be said that China's foreign aid and vaccine exports have made positive contributions to the world, establishing an immune barrier for various countries.

In the next step, we will continue to implement President Xi's important commitments. This year, we will strive to provide two billion doses of vaccine to the world, donate another 100 million doses of vaccine to developing countries, and donate US$100 million to the "COVID-19 Vaccines Global Access (COVAX)." We are willing to work with the international community to advance international vaccine cooperation and promote the building of a global community of health for all. Thanks.

People's Daily:

What role do China's foreign aid projects play in addressing climate change and promoting global green development? Thank you.

Zhang Maoyu:

Climate change is nature's alarm bell to humanity, and China is acutely aware of this. President Xi Jinping made a statement at the general debate of the 75th session of the United Nations General Assembly. He announced that China aims to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060. This is a major strategic decision made by China that considers both domestic and international situations. It demonstrates China's responsibility in actively addressing climate change and building a community with a shared future for mankind, and it shows China's determination to pursue green, low-carbon and high-quality development.

Since the 18th CPC National Congress, by offering foreign aid, we have helped to enact the South-South cooperation commitments concerning climate change, actively joined the international community on climate change action and supported developing countries' response to the challenges of climate change. During the last eight years, we have implemented more than 200 foreign aid projects that address climate change. Among them, there are about 70 climate change mitigation projects, including the solar power supply project at the Parliament Building of Pakistan, the green development project for the Addis Ababa river bank in Ethiopia, and others. Likewise, there are about 150 climate change adaptation projects, which include projects responding to floods in Nepal, hurricanes in Fiji, and tropical cyclones in Mozambique. We have also conducted 80 seminars on climate change topics and trained nearly 2,000 relevant personnel.

Next, foreign aid will focus on promoting green development to help developing countries improve their coping strategies for climate change. First, we will enhance project support and execute climate change environment protection projects. We will optimize clean energy and desertification prevention and control projects such as photovoltaics, biogas, and hydropower stations. Second, we will focus on environmental factors, strengthen the assessments of environmental protection and climate change factors in foreign aid projects, and promote the transition of projects to ones that are climate-friendly. Third, we will step up financial cooperation, strengthen coordination between the South-South Cooperation Assistance Fund and other funds – which include the special fund for Lancang-Mekong cooperation, the China-Africa Development Fund and the South-South Climate Change Cooperation Fund – to create synergy. Fourth, we will strengthen coordination and cooperation between central and local governments, leverage the geographical advantages of Yunnan, Tibet and other border provinces and areas, and provide assistance to neighboring countries in cross-border water resource management, nature reserve construction and more. Fifth, we will host experience exchanges and support developing countries as they take actions to maintain safe boundaries for nature. We will also encourage green recovery, green production and green consumption, promote a harmonious existence between man and nature, and let a sound ecology and environment be the inexhaustible source of sustainable development. Thank you.

CRNTT:

Some part of overseas public opinion suggests that China's foreign aid has not been transparent enough. What measures has the Chinese government taken to increase the transparency of its foreign aid projects? Thank you.

Zhou Liujun:

China's foreign aid has always been open and honest. I should emphasize that a press conference like this one, in which chairman Luo Zhaohui instructs the whole team to take initiative and release information and interact with friends from the media, demonstrates that we prioritize the promotion of foreign aid and increased transparency. Chinese leaders have repeatedly expounded on China's foreign aid policies, concepts, the overall situation and significant measures at major international occasions, such as the UN conferences, the Belt and Road Forum for International Cooperation and the Forum on China-Africa Cooperation.

In recent years, the Chinese government has presented its foreign aid situation through the release of white papers. The first white paper was issued in 2011 by the Chinese government, and it provided a comprehensive and systematic introduction to China's foreign aid policies, funds, methods, distribution and management. In 2014, we issued the second white paper on foreign aid. This white paper gave a comprehensive and objective introduction to aid funds, methods and distribution between 2010 and 2012. In January this year, which marked the third anniversary of the establishment of the CIDCA, we took the opportunity to issue a white paper entitled "China's International Development Cooperation in the New Era." It focuses on the international community's interests in China's international development cooperation and outlines China's principles and policies for international development cooperation following the 18th CPC National Congress. Moreover, it highlights the positive contributions China's international development has made in terms of building a community with a shared future for mankind in the new era. It also proactively responds to the international community's concerns.

I want to emphasize that, after the establishment of the CIDCA, we immediately launched an official website, WeChat public account and overseas social media accounts. Friends from the media have been welcome to visit and browse. The channels are an easy way for the public at home and abroad to get information about China's foreign aid. We will continue to explain the foreign aid situation to the public and release relevant information and data in a timely manner through the various channels. Thank you again for your concern, interest and support. Thank you.

China Daily:

Recently, the CIDCA has conducted a series of publicity activities, which include commemorating the 70th anniversary of China's foreign aid, the 20th anniversary of Juncao Assistance, and the fifth anniversary of the South-South Cooperation Assistance Fund and the Institute of South-South Cooperation and Development. These activities have attracted extensive attention from the media and the Chinese people. Could you introduce the background and significance of these activities? Thank you.  

Luo Zhaohui:

I'm very glad that you followed our events. This year marks the 100th anniversary of the founding of the Communist Party of China. We still remember that at the end of May this year, the Political Bureau of the CPC Central Committee held a group study session, and President Xi Jinping once again called on everyone to tell China's stories well. For this purpose, the CIDCA took the initiative to design these activities. The first event was to commemorate the 70th anniversary of China's foreign aid, and introduce its history, a glorious chapter of the 100th anniversary of the CPC. Since the founding of the CPC, during the War of Resistance against Japanese Aggression, China has received support and help from Communist International and many global progressive forces. In the 1950s, we also received great help from the Soviet Union and a lot of support from socialist countries. We were a recipient from the beginning. At the same time, we reciprocated by providing foreign aid from the very beginning of the founding of the People's Republic of China. The 71-year history of foreign aid is a glorious chapter of the CPC and epitomizes the love and friendship that the Chinese government and Chinese people have shown to other countries. The photo exhibition on the 70th anniversary of China's foreign assistance is a macro reflection of the history of China's foreign aid since the founding of the People's Republic of China. And the exhibition also highlights the original aspiration of the CPC to seek common development in the world and contribute to the cause of human progress. 

We would also like to note that besides the photo exhibition, we also held an event celebrating the 20th anniversary of Juncao assistance. Just like hybrid rice, the technology of Juncao, Chinese herbal medicine and green food, has become a shining example of China's foreign aid. Many developing countries have been confronted by salient issues relating to agriculture, rural areas and farmers. Twenty years ago, President Xi Jinping, then governor of Fujian Province, made important instructions on and personally worked for the introduction of Juncao technology to Papua New Guinea for poverty alleviation. Since then, along with the goodwill of the Chinese people, Juncao has made its way across the world, from Africa to Latin America, from Asia to South Pacific. We have launched over 270 Juncao technology training courses with more than international 10,000 trainees, bringing hundreds of thousands of jobs to local people. Even some government officials, in commemoration of the magic grass, named their children "Juncao."

Just now, our media friends mentioned activities celebrating the fifth anniversary of the establishment of the South-South Cooperation Assistance Fund and the Institute of South-South Cooperation and Development (ISSCAD), announced by President Xi Jinping at the United Nations in 2015 and started operation in the following year. The Institute was set up in Peking University with well-known economist Justin Yifu Lin acting as Honorary Dean. Over the past five years, it has become a high-end academy with more than 200 masters or doctors received from over 60 countries, yielding great results. South-South Cooperation Assistance Fund has closely worked with over 10 international organizations within the UN system by launching more than100 projects which help significantly improve the people's wellbeing among 50 countries, benefiting over 20 million people. The Fund has had a real contribution to the implementation of the UN 2030 Agenda for Sustainable Development by its efforts to fight everything from the Ebola virus to COVID-19, as well as advancing the healthcare system for women and children and addressing refugee and immigrant crisis.

As China's important public goods, the fund and the institute have become significant global brands for China to promote South-South cooperation and sustainable development under the support from all sides. This demonstrates that China's foreign assistance and international development and cooperation are transparent. The China International Development Cooperation Agency (CIDCA) was found on April 18, 2018, from the name of which it can be noted that China is willing to be in line with the rest of the world. We used the term of international cooperation and development to replace that of foreign aid used by the international community including the United Nations in the past, a move to put emphasis on bilateral cooperation rather than one-side assistance. What we mainly take into consideration is whether it meets the needs and development strategies of participating countries. What we have done, from working with the UN system to launching commemorative activities, aim to boost transparency in our foreign assistance. Any country or any politician without prejudice will recognize our efforts to strengthen collaboration with the international community and accelerate the transition from bilateral aid to multilateral cooperation.

The fund and the institute mentioned are fine examples. Besides South-South cooperation, which means the developing countries help each other, we also pursue North-South cooperation. China has done lots of work to cooperate, communicate and coordinate with the United Nations and western developed countries.

Thank you all!

Phoenix TV:

A recent American research report on Chinese project abroad under the Belt and Road Initiative (BRI) points to many major problems like corruption, labor violations, environmental risks and public protests, causing that participating countries' willingness is fading. What is your comment on this? Besides, what is China's role in foreign assistance and international cooperation regarding the BRI? Thank you!

Luo Zhaohui: 

This is a very good question. To build a community with a shared future for mankind is the essence of Xi Jinping Thought on Diplomacy, and the BRI cooperation has been considered as an important platform. President Xi Jinping on Sept 21 proposed a Global Development Initiative, which was highly spoken by the UN. Secretary-General Antonio Guterres said that the UN would support and cooperate closely with China to further promote the Initiative when he met with President Xi yesterday via video link.

This question has also attracted much attention. I will invite my colleague Deng Boqing to answer it.

Deng Boqing:

Thank you for your question. As the most significant platform for building a community with a shared future for mankind, the BRI highly resonates with the UN 2030 Agenda for Sustainable Development and has been widely recognized by the international community. To date, up to 140 partner countries and 32 international organizations have signed documents on Belt and Road cooperation with China. Over 90 bilateral mechanisms have been established. 

We follow the principles of extensive consultation, joint contribution and shared benefits, and champion the philosophy of open, green and clean cooperation, in a bid to make Belt and Road cooperation high-standard, people-centered and sustainable. With regard to a blueprint and specific project for the BRI, we always act in the spirit of broad participation and equal negotiation in a public and transparent way and take a "zero tolerance" approach to corruption. Recently, President Xi Jinping announced that China would not build any new coal-fired power plants abroad, which are highly praised by the international community.

It is our important responsibility to serve the BRI. President Xi Jinping announced a series of foreign assistance measures at the Belt and Road Forum for International Cooperation (BRF), including that China will provide assistance worth 60 billion yuan to developing countries and international organizations participating in the BRI and China will launch 100 "happy home" projects, 100 poverty alleviation projects and 100 health care and rehabilitation projects in countries along the route. We have fully implemented these measures and make greater efforts to support the BRI. The overall effects of China's foreign assistance are on a consistently upward trajectory.

Since the pandemic, some projects have been affected. However, it is an indispensable obligation for China to help other countries fight against COVID-19 and restart development. During the pandemic , China has stepped forward to inject impetus into the implementation of the Agenda for Sustainable Development. Instead of hitting the "pause" button, we have continued to jointly build the BRI despite challenges and promote global development and cooperation with great zeal. We noticed that during the pandemic, a series of major projects such as the China-Laos Railway and the Hungary-Serbia Railway made breakthrough progress. Meanwhile, China-Europe freight trains and traffic volume throughout the year expanded 50% and 56% year on year, respectively. In addition, China's non-financial outbound direct investment to countries along the BRI rose by 18.3% year on year.

We will continue to act according to our capability and try our best to help those countries in need without any political conditions by the principle of equal treatment and mutual respect, to better serve the Belt and Road Initiative. Thank you.

ThePaper.cn:

How does the China International Development Cooperation Agency feel about carrying out triangular cooperation with Western countries and international organizations in development assistance? Thank you. 

Zhang Maoyu:

Thank you for raising such a good question. China not only recognizes the importance of providing bilateral aid to developing countries but also the importance of carrying out triangular and multilateral cooperation with Western countries and international organizations in this regard. We have always held a positive and open attitude towards carrying out international development exchanges and triangular cooperation. As a developing country, we will continue to explore triangular development cooperation with related parties, enrich cooperation modes and paths, and improve cooperation level and capacity. Our proposals are as follows: First, we should foster global development partnerships that are more equitable and balanced. We will actively implement the Global Development Initiative proposed by President Xi Jinping, and adhere to the principle of common but differentiated responsibilities in international development cooperation while enhancing the role of North-South cooperation as the main channel and South-South cooperation as a beneficial supplement. Second, we should tap into our respective strengths and steadily advance triangular cooperation. We should respect the policies, ideas and modes of all parties, and enhance mutual understanding and trust in the spirit of mutual respect, sharing experiences, complementing each other and learning from the strengths of others. Third, we should respect the sovereignty and leading role of recipient countries. We should uphold the principles of aid projects demanded, agreed to and led by recipient countries, and the criteria should be based on whether recipient countries welcome or not, agree or not and are satisfactory or not. The focus should be on meeting the needs of recipient countries for humanitarian aid and aid concerning people's livelihood and employment, and strengthening their capacity for development. 

It has been more than three years since the establishment of the China International Development Cooperation Agency. During this time, we have advanced dialogues and consultation, participated in international meetings and activities including the Second High-level United Nations Conference on South-South Cooperation and the European Development Days, and conducted exchanges including visits with more than 10 countries and regional organizations including Japan, Germany, Switzerland, Britain, France, Norway and the European Union. In recent years, under the South-South Cooperation Assistance Fund, China has cooperated with a number of UN organizations, such as the United Nations Development Programme, the World Food Programme, the UN Refugee Agency and the UNICEF. China has conducted development cooperation projects in more than 50 countries in the fields of food assistance, post-disaster reconstruction, refugee relief and health care for women and children. Moreover, China has launched triangular cooperation projects with Switzerland, Portugal, Britain, the United States, Australia and New Zealand that meet the needs of recipient countries in agriculture, health care and other areas concerning people's livelihood. 

Next, we will continue to explore triangular cooperation with an open and pragmatic attitude, and also encourage the private sector, non-government organizations and charities to play a bigger role in providing new momentum for international development cooperation. 

HK Economic Herald:

My question is for Mr. Luo. Since China began international cooperation against the virus, the China International Development Cooperation Agency has received much attention. Can you talk about its functions and focuses as a newly established agency?

Luo Zhaohui:

Thanks for your question. The agency was set up three and a half years ago, and is directly affiliated with the State Council. Frankly speaking, it is better known abroad than at home. Many friends at home found the name of the agency, China International Development Cooperation Agency, confusing, as it contains both "China" and "international," so I am happy to take this opportunity to introduce it. 

Some of the points I and my colleagues just mentioned already reflect the main responsibilities and functions of the agency. Specifically, directly affiliated with the State Council, the agency is responsible for drafting foreign aid policies and plans, approving foreign aid projects as well as supervising and assessing the implementation. We need to evaluate the necessity, possible problems and effects of a project and deal with the problems that might arise in the implementation. We are also responsible for coordinating efforts on major foreign aid issues and promoting reforms of foreign aid methods. This is a major decision of the CPC Central Committee and the State Council after the 19th CPC National Congress to promote the cause of foreign aid. Over the past three and a half years since its establishment, the agency has enacted reforms and optimized its setup while performing functions, thus giving China's foreign aid work in the new era a new look with new efforts and results.

First, we have made significant achievements in guaranteeing China's overall diplomacy. With serving head-of-state diplomacy as our top priority, we have participated in a series of President Xi Jinping's important bilateral and multilateral foreign affairs activities and proposed a number of impressive and feasible aid initiatives, which have seen results. Second, we have made notable progress in guiding South-South cooperation. We have strengthened the synergy of aid projects with the development plans of recipient countries, and launched aid projects in the fields of health care, education and culture, poverty relief and capacity building to enhance the economic and social development of recipient countries and the lives of their people, thus contributing Chinese strength to the implementation of the United Nations' 2030 Agenda for Sustainable Development. We joined hands with other countries to cope with global challenges such as natural disasters and food crises, and provided emergency humanitarian aid more than 150 times. While providing assistance for fighting against the virus, we also provided emergency humanitarian aid in response to floods and food crises. Third, we have made new progress in supporting domestic development. We have given play to the leveraging and guiding role of foreign aid in boosting trade, investment and opening up at a higher level under the Belt and Road Initiative. We assisted recipient countries in their building of centers for inspection and quarantine, and provided their customs with commodity inspection equipment. We also encouraged good Chinese enterprises, products and technologies to go global based on the demand of recipient countries. Fourth, international exchanges and cooperation have born rich fruit. As we just stated, we held three important activities to mark the 70th anniversary of China's foreign aid, the 20th anniversary of the Juncao Assistance and Sustainable Development Cooperation, and the 5th anniversary of the establishment of the South-South Cooperation Assistance Fund and the Institute of South-South Cooperation and Development respectively. President Xi Jinping sent congratulatory letters to the latter two activities, which demonstrated the importance that Chinese leaders and the Chinese government attach to South-South cooperation and China's resolution to implement the sustainable development agenda as a responsible major country. These activities have received much attention from the international community and UN organizations. We released the white paper titled "China's International Development Cooperation in the New Era," and established relations with more than 50 countries and international organizations. Fifth, we have continued to deepen foreign aid reforms. We implemented new ideas for foreign aid, focusing on projects that can have timely and remarkable effects on people's livelihood though not large in scale. We strengthened the integrated design of soft and hard assistance and amplified the combined effects of projects. We sped up the process of enacting, amending or repealing laws and regulations and formally released 24 normative documents including the Measures for the Administration of Foreign Aid. According to the requirements of achieving optimization, coordination and efficiency, an inter-ministerial foreign aid coordination mechanism involving 25 departments was set up to strengthen coordination and unified management of foreign aid across all fields and departments. Here, I must stress that foreign aid projects are launched based on strict approval procedures and criteria instead of doing it at will. During the implementation of a project, strict supervision is required. After a project is completed, strict assessment is required. We established the Department of Supervision and Evaluation three years ago, which ensures the transparency, quality and honesty of our projects and that each project can deliver a satisfactory report. 

Some Western countries, including the United States, have never stopped slandering and smearing the Belt and Road Initiative as well as our international cooperation against the virus. Since the founding of New China, more than 700 foreign aid workers have died in foreign countries. Our foreign aid workers fear no hardship, act with a sense of responsibility and demonstrate heroic spirit. The new era calls for a new sense of responsibility, and we will continue to fulfill our duties and pursue innovation to promote the high-quality development of our foreign aid work. 

Of course, we should never forget where we came from, no matter how far we go. Over the past 71 years, our foreign aid work has adhered to our own ideas and principles, and had distinctive Chinese characteristics. First, equality and win-win cooperation. Second, honoring commitments and seeking concrete outcomes. We never make empty promises and always stand by our word. We contribute according to our ability and never try to be a savior. However, as long as we make a promise, we will do our best to fulfill it no matter how difficult it is. Third, focusing on development and believing that it is more important to show people how to fish rather than just giving them fish. Fourth, openness and inclusiveness, exchanges and mutual learning. 

Next, we will make health the priority of our foreign aid and international development cooperation, and do our best to support international cooperation against the virus. We will focus on green development and continually implement the sustainable development agenda. We will also focus on people's livelihood and contribute to global economic recovery. Taking multilateralism as a guide, we will continue to improve global governance in the field of development cooperation. These will be the focus of our foreign aid and international development cooperation work going forward. 

I hope that you will learn more about the agency, and I also welcome Chinese and foreign media friends to visit the agency. Our agency can work together with the State Council Information Office to organize activities for an Open House. This is an invitation to you all. Thank you all. 

Shou Xiaoli:

Thank you, Mr. Luo, and thank you all. Today's briefing is hereby concluded. Goodbye, everyone. 

Translated and edited by Zhang Rui, Zhang Liying, Lin Liyao, Wang Qian, Gao Zhan, Liu Qiang, Yan Xiaoqing, Wang Yiming, Zhang Tingting, Ma Yujia, Yang Xi, Yuan Fang, David Ball, Drew Pittock, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Yao Jingyuan, special researcher of the Counsellors' Office of the State Council

Xu Xianchun, professor at the School of Economics and Management, Tsinghua University, and director of Tsinghua China Data Center

Chairperson:

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

Date:

Oct. 18, 2021

Xing Huina:

Friends from the media, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). This morning, we held a press conference to present China's economic data from the first three quarters of 2021. The briefing this afternoon will further analyze the economic performance in the first three quarters of the year. At this briefing, we are joined by two experts: Mr. Yao Jingyuan, special researcher of the Counsellors' Office of the State Council; and Mr. Xu Xianchun, professor at the School of Economics and Management, Tsinghua University, and director of Tsinghua China Data Center. They will start by giving you their interpretations of the economic data and then take your questions.

Next, I'll give the floor to Mr. Yao Jingyuan.

Yao Jingyuan:

According to the principles of economics, a country's overall economic situation can be analyzed from four indicators: the growth of gross domestic product (GDP), job creation, consumer prices, and balance of payments.

The first indicator is GDP growth. China's GDP registered a year-on-year increase of 9.8% in the first three quarters of the year. As we know, according to the Government Work Report delivered by Premier Li Keqiang in March, China aimed to expand its economy by over 6% in 2021. The latest estimate by the International Monetary Fund (IMF) also said that China's economy will grow by 8%. I estimate that annual growth in 2021 will reach about 8%. Therefore, the GDP growth rate is within our expectations.

The second indicator is job creation. In the first three quarters of the year, China added 10.45 million new urban jobs in the first three quarters, achieving 95% of the annual target. The surveyed unemployment rate in the first three quarters stood at 5.2%, which was 0.5 percentage point lower than the same period last year, and also lower than the 5.5% target for this year put forward by Premier Li Keqiang in the Government Work Report this March. The employment of migrant workers was also very good. Some 3.51 million new migrant worker jobs were added in the first nine months of the year, close to the level in 2019.

The third indicator is consumer prices. Plenty of people were worried about inflation at the end of 2020 and the beginning of this year. Yet the actual situation is that, in the first nine months of 2021, the consumer price index (CPI) went up by 0.6% year on year. Compared with the 3% target set at the beginning of this year, China's consumer prices generally remained at a low level and stable.

The fourth indicator is balance of payments. Many experts and scholars did not expect that China's foreign trade could sustain such good growth momentum. In the first three quarters of the year, the total value of imports and exports was 28.33 trillion yuan, which is a comparatively high level historically speaking. Specifically, exports increased by 22.7% year on year, and imports went up by 22.6%, achieving a basic equilibrium. China's actual use of foreign capital amounted to 758 billion yuan in the first eight months of the year, up more than 20% year on year.

Based on these four indicators, it is fair to say that China's economy has remained within the set growth range. In addition, against the backdrop of the pandemic and its unprecedented fallout, China's economy is currently recovering. Of course, there are some things worth noting seen from the economic data in the first half and third quarter of 2021. For example, there has been a downward movement in the economy from the second to the third quarter, which we will discuss later.

I'll stop here for now. My analysis aims to offer you a method to interpret China's economy, which is to analyze it based on these four indicators. These four major indicators show that China's economy is currently in a sound stage of recovery. Thank you.

Xing Huina:

Thank you, Mr. Yao. Next, Mr. Xu Xianchun will have the floor.

Xu Xianchun:

Thank you, Ms. Xing. Friends from the media, good afternoon! 

Mr. Yao just elaborated on the economic performance of the first three quarters from the perspective of four major macro indicators. I will talk about characteristics of the economic growth of the first three quarters from the following three perspectives.

First, I will talk about three characteristics from the perspective of production. First, the year-on-year growth rate dropped quarter-by-quarter, but the average two-year growth rate remained relatively stable, and the economic growth of the first three quarters remained fast, which has laid a good foundation for achieving the year's target. According to the statistics released by the National Bureau of Statistics this morning, GDP of the first quarter increased by 18.3% year-on-year, by 7.9% in the second quarter, and by 4.9% in the third quarter. This indicates that the year-on-year growth rate has declined significantly. But in terms of the average two-year growth rates, namely 5% in the first quarter, 5.5% in the second quarter, and 4.9% in the third quarter, the trend remained relatively stable, with only a 0.6 percentage point gap between the highest and lowest. In addition, the GDP growth rate of 9.8% in the first three quarters was high. From my point of view as an expert, I can predict that the GDP growth of 9.8% is a decisive factor for achieving the year's target of about 7%, so the growth of the first nine months has laid a foundation for achieving the year's target. Second, the added value of the secondary industry was the fastest-growing area, which played a significant role in supporting economic growth. The added value of the secondary industry saw an increase of 10.6% year-on-year in the first three quarters, the fastest rate among the three industries. Third, the service sector made the biggest contribution to economic growth, and was the major driving force of economic growth of the first three quarters. In the first nine months, the added value of the service sector accounted for 54.8% of GDP, and the contribution of the sector to economic growth reached 54.2%, up 1.2 percentage points compared with the first half of the year. 

Second, I will also talk about three characteristics from the perspective of demand. First, consumption has played a leading role in driving economic growth. In the first nine months, the contribution of consumption to economic growth reached 64.8%, up 3.1 percentage points compared with the first half of the year. Second, the role of investment in driving economic growth weakened. In the first nine months, the contribution of investment to economic growth reached 15.6%, down 3.6 percentage points compared with the first half of the year. Third, net export demand showed a good momentum and played an important role in driving economic growth. In the first nine months, the contribution of net exports to economic growth reached 19.5%, up 0.4 percentage point compared with the first half of the year.

Third, new economic forms and new driving forces continued to grow fast. This provided important support for economic growth. The highlights of their robust growth are as follows. First, the high-tech manufacturing sector continued to grow fast. The value added of high-tech manufacturing went up by 20.1% year-on-year, with an average two-year growth of 12.8%, 8.3 percentage points and 6.4 percentage points higher respectively than that of large industrial enterprises as a whole. Second, the high-tech service sector continued to see fast growth. The added value of information transmission, software and information technology services increased by 19.3%, with an average two-year growth of 17.6%, 9.8 percentage points and 12.7 percentage points higher respectively than that of the service sector. Third, investment in the high-tech industries continued to grow fast. The investment in high-tech industries grew by 18.7% year-on-year, with an average two-year growth of 13.8%, 11.4 percentage points and 10 percentage points higher respectively than that of investment in fixed assets (excluding rural households). 

I have summarized the characteristics of economic growth from the above-mentioned three perspectives. Thank you.

Xing Huina:

Thank you. Now the floor is open to questions, please identify your media outlet before raising questions.

CCTV:

Major economic indicators in the third quarter slowed down significantly compared with those in the first half of the year. Does this mean that China's economic recovery trend has changed, and economic momentum has weakened? Just now, you mentioned that the IMF has lowered China's economic growth forecast for the year. The current situation worldwide is grave. How do you view the pressure on China's economic growth in the fourth quarter? Thank you.

Yao Jingyuan:

China's economic growth in the third quarter slowed from that in the second quarter of the year. First, we should see that it's not only the case for China. The global economic growth and recovery weakened on the whole. That's why the IMF lowered China's growth rate from 8.1% to 8%, and cut the world's growth rate by a 0.1% from 5% to 4.9%. So, the economic slowdown in the third quarter is a universal phenomenon around the world.

Here I'd like to focus on China. Why did China's economy slow down? First, it is a result of rising commodity prices on international markets. As we know, due to the supply and demand mismatch as a result of the pandemic, and excess liquidity, the prices of raw materials including oil, natural gas, non-ferrous metals, ferrous metals and coal have risen sharply on the international markets this year. China is the biggest importer and exporter of commodities in the world, and the rise in the prices of raw material commodities is bound to be transmitted to China through imports. This is the main international impact on China's economy.

Second, it is a result of China's own situation at the current stage. We are getting a clearer picture of the reasons leading to the current downtrend, such as the epidemic and severe floods. As we know, several places in China reported sporadic cases, including major economic provinces like Guangdong and Jiangsu. The greater the impact on these provinces, the more the Chinese economy is affected. There are also impacts from floods. Henan is also a major economic province, and its economy was hit hard by unprecedented floods. The recent floods in Shanxi province forced 60 local coalmines to stop production, and the coal output dropped sharply. These are periodic factors. Moreover, if more detailed analysis is made, you will find that the current downtrend is not resulted from the lack of an inherent impetus driving growth. There is much room for Chinese economic growth. Someone asked me today if the downward trend could be changed. My answer is in the affirmative. We can adopt a series of policy measures to resolve these issues for the current stage. Take the coal supply shortage problem as an example. Coal prices rose due to the decline in coal production, which in turn led to losses in power generation, followed by decrease in power supply. Hence, power rationing happened in some provinces. Can the coal issue be solved? We will resume the production of coal mines affected by floods as soon as possible. A total of 72 coal companies in Inner Mongolia have restarted production. We will also increase coal imports. Chinese Premier Li Keqiang recently talked to Mongolian Prime Minister via video link to further promote the coal trading between the two countries. China tops the world with an installed capacity of power generation of 2,200 gigawatts. Thus, the coal shortage is a short-term problem and we can solve it.

We need to give more consideration to these short-term factors for the slowdown of China's economic growth in the third quarter from the second quarter. These short-term factors of the current period, overlapped with China's structural and periodic problems, made the issue more complicated. Therefore, in order to deal with the temporary problems, we need to step up efforts in structural reform to optimize the economic structure, and make counter-cyclical adjustment. In brief, China's economy still sustains a good inherent impetus, and we are able to reverse the slowdown.

Xu Xianchun:

In the third quarter, there were multiple factors that contributed to the declining economic growth rate, including incidental factors and structural factors. These factors were superimposed on each other, so it made some people feel that the downward pressure on the economy is relatively high. However, we should distinguish between incidental factors and structural factors. Incidental factors, such as coal shortages and floods, are relatively easy to resolve.

China's economic development is very resilient, because we have a huge market and relatively strong production capacity. Given the declining growth rate in the third quarter, what sort of economic growth should we expect in the fourth quarter? I think we could analyze this from two sides. On the one hand, pressure on the economy exists. First, in terms of the base number, last year's economic growth went from low to high. GDP fell by 6.8% in the first quarter, but grew up by 3.2% in the second quarter, 4.9% in the third quarter, and 6.5% in the fourth quarter. The growth rate picked up quarter by quarter, and the GDP growth rate in the fourth quarter was relatively high. I think the 6.5% growth rate has already exceeded the current potential growth rate, which will put pressure on economic growth in the fourth quarter of this year. Besides, some downward factors, such as investment, and specifically infrastructure investment, may slow down. On the other hand, there are also many supporting factors. For example, when it comes to consumption, the national per capita consumption expenditure in the first three quarters actually increased by 15.1%, and the average actual growth over two years was 3.7%. Among them, the two-year average growth rate rebounded 0.5 percentage point from the first half of the year. At the same time, employment is generally stable, and the growth of residents' income is also relatively stable. Among three major economic entities, residents see a relatively stable growth in income. The prevention and control of COVID-19 are stable. Residents' consumption capacity and willingness to spend money are also expected to continue to pick up.

On July 30, the Political Bureau of the CPC Central Committee held a meeting and pointed out that fiscal policy will play a major role in stabilizing growth. The key driver will be the major projects listed in the 14th Five-Year Plan. There are still 1 trillion yuan of special bonds to be issued in the fourth quarter, which may support infrastructure investment to some extent. The central bank requires monetary policy to remain stable, maintain reasonable and sufficient liquidity, and guide the reasonable growth of loans in the second half of the year. It's clear that the monetary policy will remain stable and moderately relaxed, which will promote the development of the real economy. Manufacturing investment may also pick up further. From the import and export perspective, China's favorable conditions, such as a complete industrial system and satisfactory epidemic prevention and control, are still attracting foreign importers. Net export demand in the fourth quarter could still be a key driver for economic growth.

Generally speaking, despite the downward pressure, the economy is still able to maintain a relatively stable growth in the fourth quarter.

ThePaper.cn:

According to data from the survey on unemployment rates and migrant workers, employment remained stable in the third quarter, but the economic situation has slowed down. What do you think of the inconsistency between the two? In the background of increasing pressure on economic growth, will the employment market face more challenges? Thank you.

Yao Jingyuan:

Just now, we talked about employment in China. In the first three quarters, new urban jobs completed 95% of the annual target. The surveyed unemployment rate was 5.2%, which fell within the expected target of 5.5%. In the past, we calculated unemployment rate on the basis of registered unemployment rate. That means if you are unemployed and go to the relevant government department to get registered, you will be included in the unemployment calculation. But if someone is unemployed and fails to register, is the calculation going to be accurate? Now the National Bureau of Statistics conducts labor force surveys to estimate the nationwide unemployment rate in cities and towns in accordance with international standards and criteria. The first of the criteria is that an individual doesn't have a job during the survey. The second is whether a person has the ability to work. The third and the most important is whether a person is actively seeking a job but fails to get one. These are the international standards for the unemployed population, and the survey conducted on this basis must be scientific and credible. The surveyed unemployment rates show that employment in the first three quarters was basically stable, and unemployment rate in September actually fell. You just asked why employment can be strong when the economy has slowed down.

First, I wonder if you noticed that according to the basic principles of macroeconomics, macro regulation comprises monetary policy and fiscal policy, however, in China, it also includes pro-employment policy. China's macro regulation actually consists of three policies. The Central Committee of the Communist Party of China (CPC) and the State Council have emphasized many times that employment is the foundation of people's livelihood and economic work should focus on improving people's livelihood and boosting employment. We have adopted a number of measures to stabilize employment and encourage enterprises to increase jobs. The pro-employment policy plays an active role. 

Second, returning to what I was saying earlier, the economic downturn does not mean that the endogenous power of China's economy is insufficient. China's endogenous power is still strong. Enterprises realize this and thought it was temporary, short-term and accidental. They firmly believe in the endogenous power of China's economy. In accordance with national policies, they have made efforts to stabilize employment. We have achieved a good effect because we stabilized people's expectations for economic growth.

China News Service:

My question is about PPI. Since this year, global commodity prices have risen overly quick. China's PPI set a new record high in September. In recent years, we have discovered a trend of the Purchasing Price Index of Raw Material (PPIRM) and the PPI being seriously inverted. What is the reason behind this? What do you think the impact of this will be on the economy? Thank you.

Yao Jingyuan:

As I mentioned earlier, the prices of bulk raw materials are rising. You mentioned that the PPI in September was up by 10.7%. What does this mean? It seemed very serious as it was a record high since 1995. I have explained that this is because commodity prices are rising worldwide. That is the most fundamental reason. China is a big importer and exporter, so it is bound to be transmitted to China. The industries seeing rising PPI are mainly upstream industries, such as coal, oil, natural gas, non-ferrous metals and ferrous metals. The upstream commodity prices are rising overly high and fast. You mentioned that it would lead to PPIRM and PPI being inverted. In other words, the downstream manufacturers are being forced to accept the prices that are rising overly high and fast. What situation do downstream manufacturers face currently? Generally speaking, there is still overcapacity in the market. In certain sectors, it is still buyers' market. Therefore, it is impossible for enterprises to pass on the higher prices of bulk raw materials to the market through end products, because if they do so, they may lose the market as the result of increased prices. In order to compete, they cannot raise their prices. However, this situation may somehow push them to strengthen management and push for technological progress in order to absorb the increased prices of upstream raw materials . But on the other hand, the PPI of upstream industries are rising so high and fast, so it is hard for enterprises to absorb it all in a short time. And this indeed make the downstream enterprises feel pressured when running their business. This was a structural issue we faced as China's economy went downward from the second quarter to the third quarter. 

So, what should we do now? First, we should ensure the supply and stable prices of upstream commodities. Some measures have been effective in certain sectors, such as with copper, which reached its highest-ever price in the second quarter. But, the price rises for copper, nonferrous metal and steel have now dropped. If we make great, solid efforts to ensure supply and stabilize prices as one of the key macro policies in the fourth quarter, we surely can help enterprises overcome the difficulties. In addition, I think we can also introduce some better measures to ensure supply and stabilize prices of upstream commodities and help downstream manufacturers overcoming difficulties with practical policies and measures. Thank you.

Cover News:

My question is regarding employment as well. What are your thoughts on the employment data in the first three quarters of this year? In addition, the unemployment rates of people aged 16-24 are going down month by month, but the rate is still at a high level — why is that? Will this situation improve in the future? Thank you.

Yao Jingyuan:

Where is the difficulty for employment? At present, there is a coexistence of recruitment difficulty and employment difficulty. I performed research in the Yangtze River Delta and the Pearl River Delta and found that quite a few companies are now having difficulty recruiting new workers. On the other hand, the unemployment rate for young people is relatively high. As I mentioned earlier, China's surveyed urban unemployment rate is 5.2%, and the unemployment rate among those aged 16-24 is significantly higher than the overall level. One reason is that there are 9.09 million college graduates this year, over 300,000 more than last year's figure of 8.74 million. This is not a small number. There is another reason: In a normal year, a considerable number of fresh graduates will study abroad, but this year they are mostly unable to study abroad. These students are now staying in the country, and a considerable number of them will look to gain employment. Therefore, the employment pressure for young people this year is very high. Of course, there are also structural problems in employment. More young people hope to find jobs in the modern services industry and are unwilling to work on production lines, which makes it difficult for manufacturing companies to recruit people. Therefore, combining the above reasons, a situation has occurred where the youth unemployment rate is higher than the average unemployment across society.

The CPC Central Committee and the State Council have clearly set the employment of college students as a key task. The Ministry of Education and other relevant departments have adopted many measures in relevant aspects. I think some policies will also be introduced in the future. Next, in the process of achieving the second centenary goal, China will take innovation as its primary driving force, and talented personnel are the primary resources. Talented young people are the main body of innovation, so it is necessary to provide more desirable positions for college graduates through structural adjustment and optimization, which can help solve the employment problem for them.

The Poster News APP:

Recently, China has been strengthening dual control of total energy consumption and energy intensity, and witnessing power supply shortages. How do you think these factors stand to impact China's economy? Another question: Some commentators believe that the dual control policy will have a greater impact on production and people's lives – on the one hand, rising upstream prices lead to high PPI; on the other, the upstream profit is squeezing the downstream takings, and state-owned enterprises are squeezing against private enterprises. What do you make of this problem? Thank you.

Yao Jingyuan:

First of all, I think the dual control policy is a correct move. Green development is our very important path for scientific development. We must unswervingly adhere to the five development concepts, namely innovation, coordination, green development, openness, and sharing. Achieving carbon peak and carbon neutrality is a solemn commitment made by China as a responsible major country, and it is also our contribution to building a community with a shared future for mankind.

We live in Beijing – what have Beijing's greatest achievements been in recent years? I personally believe that it is not how many buildings have been built, how many roads have been built, or how much the GDP has grown, but the changes in the environment. For example, in my home, we previously used several air purifiers. But in the past two years, especially this year, we haven't used our air purifiers once. This reflects how the air has improved; the sky is blue, and the land is green. This is the result of our implementation of new development concepts.

Of course, when growing the economy, we need to take some issues into account. For example, how to deal with the relationship between phased tasks and long-term goals, and which aspects should be considered to maintain a certain development speed? For example, growing the economy is like driving a car. The first step is to control the vehicle well. Where should the steering wheel turn toward? It should go toward the second centenary goal, toward the direction of high-quality development, and in terms of specific operations, one is the brake, and the other is the accelerator. Don't underestimate these two things – I think they are quite important. Therefore, macro-control is an art. For example, in the specific implementation process, some problems such as "campaign-style carbon reduction" do exist. These problems indicate that the relationship between steady economic growth and structural adjustment, transformation, and upgrading is not handled properly, and it is not fully understood that promoting high-quality development is a process. From this perspective, we must adhere to the green development concept in the next step. This guiding concept cannot be changed, but in the implementation process, we must well handle the relationship between ensuring steady growth and transforming the growth model and making structural adjustments, as well as some specific problems that occur in promoting high-quality development.

As the CPC Central Committee and the State Council have already made arrangements, and we have also summed up the experience and lessons of previous macro-controls, we can absolutely deal with this series of problems well. From this perspective, as we adhere to green development and use dialectical thinking to handle some of the current development issues, there will be no problem in maintaining steady and healthy growth of the Chinese economy.

China Daily:

Mr Xu, China's economy has been recovering steadily this year. We have also seen considerable growth in some new industrial products and consumer goods in foreign trade. It can also be seen from the third-quarter data from the National Bureau of Statistics this morning that the year-on-year growth of some industries such as innovation investment and new energy vehicles has also been considerable. Please comment on how you see the role these industries play in economic development. As you mentioned just now, the investment situation will face some pressure in the third and fourth quarters. What are your suggestions for the next step to encourage these industries to make greater contributions to economic growth? Thank you.

Xu Xianchun:

Thanks for your question. Indeed, despite considerable downward pressure on the economy, some new industrial products and new forms and models of business in the field of foreign trade continue to maintain relatively rapid growth.

In terms of new industrial products, driven by the acceleration of 5G construction, the growth of consumer electronics and automotive electronics demand, the improvement of industrial automation, and other factors, the output of new products maintained rapid growth. This morning, the spokesperson of the National Bureau of Statistics said that in the first three quarters, the output of new energy vehicles, industrial robots, and integrated circuits increased by 172.5%, 57.8%, and 43.1%, respectively, year-on-year, with an average growth rate of more than 28% in both years. In terms of new business forms and models in the field of foreign trade, some policies and measures have been implemented and are effective. New forms and models of foreign trade, represented by cross-border e-commerce, have injected new momentum into foreign trade. According to the data released by the General Administration of Customs, in the first three quarters of this year, China's cross-border e-commerce imports and exports increased by 20.1%, and market procurement exports increased by 37.7%.

In recent years, new economy drivers have played important roles in driving economic growth. Before the COVID-19 outbreak, economic growth showed a downward trend, but the rapid growth of new economy drivers played an important role in curbing the slowdown. During the serious outbreak of the epidemic, the economy declined, but new economy drivers still maintained rapid growth. The country's GDP fell by 6.8% in the first quarter of last year. However, the added value of information transmission, software, and information technology services increased by 13.2%, contributing 0.6 percentage points to GDP growth and playing an important role in slowing down the economic decline. New economy drivers have also played important parts in promoting economic recovery. In the first three quarters of this year, the added value of high-tech manufacturing above designated size increased by 20.1%, and the added value of information transmission, software, and information technology services increased by 19.3%. Online retail sales of physical goods also maintained rapid growth. Therefore, new economy drivers have played important roles in economic growth.

Going forward, we can consider promoting the development of new economy drivers in various ways.

First, we will actively promote the digital transformation of enterprises. I am leading a research team at the Tsinghua China Data Center to study new economy drivers. We have surveyed more than 70 enterprises of new business forms and models in 13 provinces and cities. We deeply understand how important digital transformation is to the survival and development of enterprises. All enterprises with successful digital transformation have realized digitization from product R&D and design, production and operation, sales to after-sales management, greatly improving their ability to adapt to the market as well as improving production and operation efficiency and reducing production and operation costs. Those enterprises whose digital transformation was unsuccessful or has just started are facing a series of difficulties and problems. Therefore, we believe that digital transformation is very important. General Secretary Xi Jinping attached great importance to digital transformation, pointing out that “The global economy is embracing the trend of digital transformation, and the new round of industrial revolution will reshape human society in profound ways.” Digital transformation is very important, and we should actively promote the digital transformation of enterprises.

Second, we should strengthen support for research and development (R&D) and innovation, strive to achieve breakthroughs in key and core technologies, and actively cultivate new points of economic growth. As the traditional driving force weakens, new ones must be replenished through R&D and innovation. This is of great importance to economic growth.

Third, we should continue to improve the business environment and policy system. The business environment is of vital importance to a country or a region. A better business atmosphere and policy system can help boost the development of new market entities and enhance China's economic resilience.

Fourth, we should continue to consolidate the cluster-based, informatized and smart development of new products, for example, New Energy Vehicles (NEVs), industrial robots and integrated circuits, so as to pursue high-quality economic development.

Fifth, we should continue to support the development of new industries and new business types and models including overseas warehouses, cross-border e-commerce and industrial networks. We must help connect each link of domestic and global supply chains. There are still more growth points in foreign trade. Broad growth potentials exist for services in the fields of software and information technology, travel, finance and insurance, education and elderly care. Take elderly care as an example. China's population ageing is deepening, putting a lot of pressure on elderly care. Therefore, advanced ideas and practices in some foreign countries can be drawn upon to cope with our domestic challenges. A lot of work can be done in foreign trade, which will not only boost foreign trade but also promote domestic economic development and social progress.

South China Morning Post (SCMP): 

Recently, there are some concerns that the risk of stagflation is rising in China. What do you make of that?

Yao Jingyuan:

First of all, the concept of stagflation began in the United States in the 1970s. According to the previous economic theory, too much inflation means an economy is overheated. If an economy slows down, there will be no inflation. This, Keynes's general theory, is an old theory. But stagflation swept America and Europe in the 1970s. What does stagflation mean? It means on one hand, the economy is slipping sharply and even retracting. On the other hand, prices will rise rapidly. I don't think that China should worry about it. I have just mentioned that many people showed concerns over possible inflation in the end of last year and the beginning of this year. However, the problem we are facing now is to stabilize food prices. Take pork prices as an example. It was 80 yuan per kilogram two year ago, but it is 18 yuan per kilogram now. If pork prices continue to drop, the pig farming industry will suffer. Therefore, efforts should be made in strengthening government stockpiling to stabilize prices. This will counter the risk of high inflation, particularly hyperinflation, in China. Moreover, from the principles of economics, inflation is basically a kind of monetary phenomenon, meaning more money chasing less products. I believe that from a monetary policy perspective, the deposit-reserve ratio can be lowered appropriately and one point down will release 1 trillion yuan in financial liquidity. I found during my investigation at the grassroots level that, generally, business liquidity is sort of under pressure.

And for China's economy, internal driving forces have worked well. For example, people's top worry now is whether the economic growth rate can remain stable in the fourth quarter of this year and the first half of next year. How to gauge these predictions? The key is the "three horses of troika" for economic growth, namely export, consumption, and investment. I don't know if you have noticed, but the Central Economic Work Conference added a phrase for each item. Export plays a role in "driving" economic growth, which means it drives the troika forward. I think there is no problem with this in regard to the fourth quarter. Consumption plays a "basic" role in economic growth. At present, consumption was hit hardest by the COVID-19 outbreak. Due to epidemic prevention and control, many consumer-intensive means of consumption such as the tourism, catering, and film industries have been heavily impacted. Therefore, consumption activities will gradually recover with our effective epidemic-control efforts. Now, data for September is better than August, and consumption and recovery are expected to continue. According to the Central Economic Work Conference, investment plays a "key" role in stimulating growth. I believe that the decline in economic growth is directly related to investment. As we all know, investment is divided into three parts: industrial investment, property investment, and infrastructure investment. In the first three quarters, the country's investment grew by 7.3% year-on-year, while the slowest sector — infrastructure investment — was up by 1.5% year-on-year, an average two-year growth of 0.4%. Infrastructure investment has increased rapidly over the past few decades and is now falling back to 1.5%, so this is a big problem. I think in the fourth quarter, and next year, we should give full play to the key role of investment in stabilizing growth, with infrastructure investment as its decisive factor. Then what can we do? As Mr. Xu mentioned in the beginning, the 14th Five-Year Plan laid out plans for 102 major projects during the period, which had undergone sufficient assessment. All these projects should start work as soon as possible in the fourth quarter and next year to form a real physical workload, which will greatly boost investment. In my point of view, some projects should come into operation earlier if possible.

In addition, Mr. Xu just pointed out that special local government bonds worth 1.8 trillion yuan were issued as of August, accounting for only half of the annual issuance quota of 3.65 trillion yuan. By this time in previous years, the proportion had almost reached 90%. Thus, we need to speed up the issuance of the remaining 1 trillion yuan-plus worth of bonds so that the construction of major projects in local areas will begin, and the real physical workload can be formed, all of which will significantly promote economic development.

In terms of prices, the CPI rose by an average of just 0.6% between January and September, with an estimated annual increase of about 1%. The low and stable price increase has given room for monetary policy. On the other hand, fiscal policy also has a lot of room. From January to August, the national general public budget revenue increased by 18.4%, while the general public budget expenditure increased by 3.6%, indicating that there is still considerable room between fiscal revenue and expenditure. We can therefore increase fiscal expenditure and adjust and improve its composition to strengthen areas of weakness. For instance, the auto industry's current weakness is its chip shortage, and for the shipping industry is the lack of containers. In fact, China has advantages in those respects — the world's largest container manufacturers are here. As a result, the fiscal policy can give more assistance to these weak links. From this point of view, we can reinforce our confidence in the internal drivers of China's economy and our capability to cope with this downward pressure.

Regarding macro regulation, we should sum up the past experience. Actually, we have the ability to step on this "gas pedal" to accelerate it. From the Asian financial crisis in 1998 to the world financial crisis in 2008, until now, we have learned lessons from a wealth of historical experiences. According to the data released by the National Bureau of Statistics today and the introduction of Mr. Fu Linghui this morning, we can see the general condition of the Chinese economy. Of course, we also need to be aware of the problems and their phased, structural, and cyclical nature. Although the reasons are complex, we have the means and capability to stabilize the economic situation, and give further role of the internal forces driving China's economy. The country's economy will still maintain healthy and better growth and is expected to expand 8% this year, which will certainly rank first among major economies around the world.

Xing Huina:

Thanks to our two experts. If there are no other questions, today's briefing is hereby concluded. Thank you, friends from the media!

Translated and edited by Zhang Liying, Yuan Fang, Zhu Bochen, Yang Xi, Li Huiru, Duan Yaying, Gao Zhan, Chen Xia, Wang Mengru, Liu Sitong, Zhang Junmian, Zhang Rui, Xiang Bin, Zhou Jing, Liu Qiang, Zhang Tingting, Ma Yujia, Zheng Chengqiong, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Fu Linghui, spokesperson of the National Bureau of Statistics and director general of the Department of Comprehensive Statistics of the National Bureau of Statistics

Chairperson:

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

Date:

Oct. 18, 2021

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 are joined by Mr. Fu Linghui, spokesperson of the National Bureau of Statistics and director general of the Department of Comprehensive Statistics of the National Bureau of Statistics. Mr. Fu will brief you on China's economic performance in the first three quarters of 2021 and then take your questions.

Now, I'll give the floor to Mr. Fu.

Fu Linghui:

Friends from the media, good morning. As usual, I will start by briefing you on economic performance in the first three quarters of the year and then take your questions.

In short, China's economy continued its stable recovery in the first three quarters of the year.

In the first three quarters of the year, in face of the complex and challenging conditions both at home and abroad, all regions and departments have worked under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core and earnestly implemented the decisions and deployments made by the CPC Central Committee and the State Council. By coordinating epidemic control with economic and social development in a scientific manner, enhancing the cross-cyclical adjustment of macro policies, and effectively coping with the epidemic and floods, China's economy continued to recover. The main macro indicators stayed in an appropriate range. The employment situation was generally stable, and people's income continued to increase. China's international payments remain balanced, while its economic structure was optimized. The quality and efficiency of China's economic performance saw steady growth with the society remaining harmonious and stable.

According to preliminary estimates, the gross domestic product (GDP) in the first three quarters amounted to 82.31 trillion yuan, up 9.8% year on year at comparable prices, with an average two-year growth of 5.2%, a 0.1 percentage point lower than the average two-year growth of the first half of 2021. By quarter, the GDP for the first quarter increased by 18.3% year on year, with an average two-year growth of 5%; for the second quarter 7.9% year on year, with an average two-year growth of 5.5%; and for the third quarter 4.9% year on year, with an average two-year growth of 4.9%. By industry, for the first three quarters, the value added of the primary industry reached 5.14 trillion yuan, up 7.4% year on year, or an average two-year growth of 4.8%. That of the secondary industry was 32.09 trillion yuan, up 10.6% year on year, or an average two-year growth of 5.7%. And that of the tertiary industry amounted to 45.08 trillion yuan, up 9.5% year on year, or an average two-year growth of 4.9%. The GDP for the third quarter increased by 0.2% quarter on quarter.

First, agricultural production showed good growth momentum, and the production of animal husbandry grew fast.

In the first three quarters, the value added of agriculture (crop farming) increased by 3.4% year on year, with an average two-year growth of 3.6%. The total output of summer grain and early rice amounted to 173.84 million tons (347.7 billion jin), 3.69 million tons (7.4 billion jin) more than that of last year, up 2.2%. The sown area for autumn grain remained stable with an increase. Of the total, the sown area for corn increased considerably; major crops for autumn grain grew well and another bumper harvest is on the horizon. In the first three quarters, the output of pork, beef, mutton, and poultry reached 64.28 million tons, up 22.4% year on year. Of the total, the output of pork, mutton, beef and poultry increased by 38%, 5.3%, 3.9% and 3.8% year on year respectively. The output of milk went up by 8%, and that of eggs decreased by 2.4%. At the end of the third quarter, the number of pigs registered was 437.64 million, up 18.2% year on year, among which 44.59 million were breeding sows, up 16.7%.

Second, industrial production continued to increase, and business efficiency improved steadily.

In the first three quarters, the total value added of industrial enterprises above the designated size increased by 11.8% year on year, with an average two-year growth of 6.4%. In September, the total value added of industrial enterprises above the designated size went up by 3.1%, with an average two-year growth of 5%; an increase of 0.05% month on month. In terms of sectors, in the first three quarters, the value added of mining increased by 4.7%, that of manufacturing increased by 12.5%, and the production and supply of electricity, thermal power, gas and water increased by 12%. The value added of high-tech manufacturing increased by 20.1% year on year, with an average two-year growth rate of 12.8%. In terms of products, in the first three quarters, the production of new energy vehicles (NEVs), industrial robots and integrated circuits increased by 172.5%, 57.8% and 43.1%, with the average two-year growth of all exceeding 28%. By types of ownership, in the first three quarters, the value added of state holding enterprises increased by 9.6% year on year; that of share-holding enterprises was up by 12%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 11.6%; and that of private enterprises increased by 13.1%. In September, the Manufacturing Purchasing Managers' Index (PMI) hit 49.6%, of which the PMI of high-tech manufacturing was 54%, a 0.3 percentage point higher than that of last month. The Production and Operation Expectation Index stood at 56.4%.

In the first eight months, the profit made by industrial enterprises above the designated size totaled 5.61 trillion yuan, up 49.5% year on year, or an average two-year growth of 19.5%. The profit rate of the business revenue of industrial enterprises above the designated size stood at 7.01%. This represents an increase of 1.2 percentage points year on year.

Third, the service sector saw steady recovery, and modern service industry showed good growth momentum.

The tertiary industry continued to grow in the first three quarters. Specifically, in the first three quarters, the value added of information transmission, software and information technology services increased by 19.3%. That of transportation, storage and postal services increased by 15.3%, with an average two-year growth of 17.6% and 6.2% respectively. In September, the service production index increased by 5.2%, a 0.4 percentage point higher than that in August, with an average two-year growth of 5.3%, a 0.9 percentage point higher. In the first eight months, the business revenue of service enterprises above the designated size increased by 25.6% year on year, with an average two-year growth of 10.7%.

In September, the Business Activity Index for Services stood at 52.4%, 7.2 percentage points higher than that in August. Specifically, the Business Activities Index for industries hit hard by the epidemic and floods in August, such as railway transportation, air transportation, accommodation, catering, ecological protection and environment treatment, rebounded significantly to the level above the threshold. From the perspective of market expectations, the Business Activity Expectation Index for services was 58.9%, 1.6 percentage points higher than that in August. Of the total, the Business Activity Expectation Index for sectors like railway transportation, air transportation and express mail service exceeds 65%.

Fourth, market sales continued to grow, with sales of upgraded consumer goods and basic living goods increasing fast.

In the first three quarters, the total retail sales of consumer goods reached 31,805.7 billion yuan, up by 16.4% year on year, with an average two-year growth of 3.9%. In September, the total retail sales of consumer goods reached 3,683.3 billion yuan, up by 4.4% year on year, 1.9 percentage points higher than that of August, or an average two-year growth of 3.8%, 2.3 percentage points faster than that in August, and an increase of 0.30% month on month. In terms of sales in different regions, retail sales of consumer goods in urban areas in the first three quarters reached 27,588.8 billion yuan, up by 16.5% year on year, or an average two-year growth of 3.9%. Meanwhile, sales in rural areas rose by 15.6% year on year to 4,216.9 billion yuan, with an average two-year growth of 3.8%. Grouped by consumption patterns, retail sales of goods in the first three quarters was 28,530.7 billion yuan, up by 15.0% year on year, or an average two-year growth of 4.5%, and the revenue from catering was 3,275 billion yuan, up by 29.8% year on year, or an average two-year decline of 0.6%. Grouped by categories, retail sales among enterprises above the designated size of upgraded consumer goods like gold, silver, and jewelry, sports and recreational goods, and office supplies in the first three quarters grew 41.6%, 28.6%, and 21.7% year on year, respectively; and basic living goods like beverages, clothes, shoes, hats, and textiles, and daily necessities went up by 23.4%, 20.6%, and 16.0% year on year, respectively. In the first three quarters, online retail sales reached 9,187.1 billion yuan, up by 18.5% year on year. Specifically, online retail sales of physical goods totaled 7,504.2 billion yuan, up by 15.2% year on year, accounting for 23.6% of the total retail sales of consumer goods.

Fifth, investment in fixed assets scaled up, and investment in high-tech industries and the social sector grew fast.

In the first three quarters, the investment in fixed assets (excluding rural households) reached 39,782.7 billion yuan, up by 7.3 % year on year, an average two-year growth of 3.8%, or a month-on-month growth of 0.17% in September. Specifically, investment in infrastructure in the first three quarters went up by 1.5% year on year, an average two-year growth of 0.4%; manufacturing increased by 14.8% year on year, an average two-year growth of 3.3%; and real estate development increased by 8.8% year on year, an average two-year growth of 7.2%. The floor space of commercial buildings sold reached 1,303.32 million square meters, up by 11.3% year on year, an average two-year growth of 4.6%. The total sales of commercial buildings reached 13,479.5 billion yuan, up by 16.6% year on year, an average two-year growth of 10.0%. By industry, the investment in the primary industry in the first three quarters went up by 14.0% year on year; the secondary industry increased by 12.2% year on year; and the tertiary industry grew by 5.0% year on year. Private investment went up by 9.8% year on year, an average two-year growth of 3.7%. Investment in high-tech industries grew by 18.7% year on year, an average two-year growth of 13.8%. Specifically, investment in high-tech manufacturing and high-tech services grew by 25.4% and 6.6% year on year, respectively. In terms of high-tech manufacturing, investment in the manufacturing of computers and office devices and in the manufacturing of aerospace vehicles and equipment grew by 40.8% and 38.5% year on year, respectively. In terms of high-tech services, investment in e-commerce services and in testing services went up by 43.8% and 23.7% year on year, respectively. Investment in social sectors went up by 11.8% year on year, with an average two-year growth of 10.5%. Specifically, investment in health and education went up by 31.4% and 10.4% year on year, respectively.

Sixth, imports and exports of goods grew fast and the trade structure continued to improve.

In the first three quarters, the total volume of imports and exports of goods was 28,326.4 billion yuan, up by 22.7% year on year. Specifically, the volume of exports was 15,547.7 billion yuan, up by 22.7%, and that of imports was 12,778.7 billion yuan, up by 22.6%. The trade balance was 2,769.1 billion yuan in surplus. In September, the total volume of imports and exports of goods was 3,532.9 billion yuan, a year-on-year increase of 15.4%. Specifically, the volume of exports was 1,983.0 billion yuan, up by 19.9%, and that of imports was 1,549.8 billion yuan, up by 10.1%. In the first three quarters, exports of mechanical and electrical products grew by 23% year on year, 0.3 percentage point higher than the overall export growth rate, accounting for 58.8% of the total exports. The imports and exports of general trade accounted for 61.8% of the total volume of imports and exports, 1.4 percentage points higher than the same period last year. The imports and exports by private enterprises grew by 28.5% year on year, accounting for 48.2% of the total volume of imports and exports.

Seventh, consumer prices increased mildly, and producer price index expanded more quickly.

In the first three quarters, the consumer price index (CPI) went up by 0.6% year on year, 0.1 percentage point higher than in the first half of this year. Specifically, the CPI in September went up by 0.7% year on year, 0.1 percentage point lower than that in August, and even month on month. In the first three quarters, the CPI rose by 0.7% in urban areas and 0.4% in rural areas. Grouped by categories, in the first three quarters, prices of food, tobacco, and alcohol fell by 0.5% year on year; clothing increased by 0.2%; housing increased by 0.6%; articles of daily use and services increased by 0.2%; transportation and communication increased by 3.3%; education, culture, and recreation increased by 1.6%; medical services and health care increased by 0.3%; and other articles and services fell by 1.6%. Among food, tobacco, and alcohol, the price of pork fell by 28.0%, grain increased by 1.0%, fresh vegetables increased by 1.3%, and fresh fruits increased by 2.7%. In the first three quarters, core CPI, excluding prices of food and energy, went up by 0.7%, an increase of 0.3 percentage point compared with that of the first half of this year.

In the first three quarters, the producer price index (PPI) went up by 6.7%, an increase of 1.6 percent compared with that of the first half of this year. Specifically, the PPI in September went up by 10.7% year on year, or 1.2% month on month. In the first three quarters, the purchasing price index for industrial producers went up by 9.3% year on year, an increase of 2.2 percentage points from the first half of this year. Specifically, the purchasing price index in September went up by 14.3%, or up by 1.1% month on month.

Eighth, employment was basically stable, and the urban surveyed unemployment rate steadily fell.

In the first three quarters, urban areas created 10.45 million new jobs , achieving 95% of this year's target. In September, the urban surveyed unemployment rate was 4.9%, 0.2 percentage point lower than that in August, or 0.5 percentage point lower than that in the same period last year. The surveyed unemployment rate of the population with local household registration was 5%, and that among populations with non-local household registration was 4.8%. The surveyed unemployment rates among populations aged 16 to 24 and 25 to 59 were 14.6% and 4.2%, respectively. The urban surveyed unemployment rate in 31 major cities was 5%, 0.3 percentage point lower than that in August. Enterprise employees worked 47.8 hours per week on average, up by 0.3 hours compared with that in August. At the end of the third quarter, migrant workers from rural areas totaled 183.03 million, up by 0.7 million compared with that at the end of the second quarter.

Ninth, per capita disposable income generally increased in step with GDP growth, and the urban-rural disposable income ratio narrowed. 

The per capita disposable income stood at 26,265 yuan ($4,085) in the first three quarters, up 10.4% from the same period last year in nominal terms, with an average two-year growth of 7.1%. After deducting price factors, per capita disposable income rose 9.7% year-on-year, with an average two-year growth of 5.1%, which is basically in step with GDP growth. Separately, urban per capita disposable income came in at 35,946 yuan, up 9.5% in nominal terms, and 8.7% in real terms, while income in rural areas stood at 13,726 yuan, up 11.6% in nominal terms, and 11.2% in real terms. By income source, the per capita income from wages and salary, net business income, net property income and net transfer income saw year-on-year growth of 10.6%, 12.4%, 11.4% and 7.9% in nominal terms, respectively. The urban-rural disposable income ratio was 2.62, down 0.05 percentage point compared with the same period last year. The per capita disposable income of residents stood at 22,157 yuan, up 8% year-on-year in nominal terms. 

Overall, the Chinese economy has maintained its recovery momentum in the first three quarters with progress in structural adjustments and high-quality development. However, there are rising uncertainties in the international environment and uneven recovery in the domestic economy. Next, we will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the decisions made by the CPC Central Committee and the State Council, uphold the underlying principle of pursuing progress while ensuring stability, fully, accurately and comprehensively implement the new development philosophy, accelerate the building of a new development paradigm, work with regular epidemic control measures in place, strengthen cross-cycle policy adjustment, make great efforts to promote sustained and sound economic development, deepen reform, opening-up and innovation, unleash market vitality, generate greater momentum for development, unleash the potential of domestic demand to keep the economy running within a reasonable range and ensure the year's main targets for economic and social development are accomplished. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu. Now the floor is open to questions, please identify your media outlet before raising questions.

CCTV:

According to the statistics just released, the economic growth of the third quarter is slower than the second quarter. What are the main reasons for the decrease? How do you comment on the third quarter's overall economic performance? Thank you. 

Fu Linghui:

Thank you for your questions. Your questions are very important. During the first half of the year, the Chinese economy maintained a stable recovery. In the third quarter, there have been rising risks and challenges at home and abroad. The pandemic is spreading around the world, the momentum of global recovery slowed, commodity prices in the international market remained high, some regions in China, hit by the pandemic and floods, felt the pressure of economic transformation and adjustments. Facing the complicated situation, under the strong leadership of the CPC Central Committee, local authorities and government departments coordinated efforts between epidemic prevention and control and economic and social development, and effectively implemented macro policies to keep the recovery's momentum. Major macro indicators stayed within a reasonable range, the job market remained generally stable, people's lives continued to improve, steady progress was achieved in structure adjustments, and the quality and returns of growth continued to improve, which has laid a good foundation for achieving the year's economic and social development targets. I will elaborate on this in the following respects: 

First, major macro indicators stayed within a reasonable range, and the recovery momentum continued. The economy continues to grow. Due to the high baseline of the same period last year and the impact of COVID-19 and floods, the economic growth of the first three quarters slowed compared with the same period last year. However, the growth rate continued to rise compared with previous quarters and the two-year average growth rate remained fast. The country's gross domestic product expanded 9.8% year on year in the first three quarters, higher than the target of 6%. In the third quarter, the country's GDP grew 4.9% year-on-year, the quarter-on-quarter GDP for the third quarter increased by 0.2%, with an average two-year growth of 4.9%. The job market remained generally stable. The economy continued to recover, the employment-first policy produced effects, the employment scale expanded, and the employment of key groups such as college graduates, veterans, rural migrant workers and urban people facing difficulties was guaranteed. During the first nine months of this year, the country created 10.45 million new jobs in its urban areas, achieving 95% of the annual target. China's surveyed urban unemployment rate stood at 5.2%, lower than the year's target of 5.5%. By the end of the third quarter, the number of rural migrant workers totaled 183.03 million, up 2% year on year, almost returning to pre-pandemic levels. The consumer price went up mildly. Agricultural production showed good momentum, hog production rebounded, the industrial service sector continued to grow, there was a large supply of basic living amenities, and the consumer price remained stable. In the first three quarters, the consumer price went up by 0.6% year on year, lower than the target of 3%. The international payments continued to improve. In terms of trade in goods, the trade surplus in the first three quarters expanded 23.7% year on year. In terms of trade in services, China's imports of tourism services decreased, and exports of modern services increased. The deficit of trade in services from January to August narrowed 66.7% year on year. Foreign exchange reserves were $3.2 trillion at the end of September, staying above $3 trillion for five consecutive months. 

Second, the economic structure was adjusted and improved, while the quality and efficiency of development were enhanced. First of all, the industrial structure continued to be optimized. The proportion of the manufacturing industry has increased, and the high-tech manufacturing industry has grown rapidly. In the first three quarters, the proportion of manufacturing value added was 27.4%, up by 1.1 percentage points over the same period last year. The value added of high-tech manufacturing enterprises above designated size increased by 20.1% year on year, faster than all industrial enterprises above designated size. The contribution rate of the service industry has increased. In the first three quarters, the contribution rate of the service industry growth to economic growth was 54.2%, up by 1.2 percentage points over the first half of the year. Second, the demand structure continues to improve. The contribution rate of final consumption has increased. In the first three quarters, the final consumption contribution rate was 64.8%, up by 3.1 percentage points over the first half of the year. Upgraded consumption and investment in high-tech industries grew rapidly. In the first three quarters, the retail sales of sports and entertainment products and cultural and office goods both increased by more than 20% year on year, and investment in high-tech industries increased by 18.7% year on year. Third, green development continued to improve. Energy consumption per unit of GDP continued to decline. In the first three quarters, energy consumption per unit of GDP fell by 2.3% year on year, up 0.3 percentage point over the first half of the year. The overall environmental quality has improved, and the people enjoy a greener environment. From January to August, the average PM2.5 concentration of 339 cities at and above the prefectural level across the country fell by 6.5% year on year. Fourth, corporate profits have grown rapidly. From January to August, the profits of industrial enterprises above designated size have increased by 49.5% year on year, and the profits of service enterprises above designated size have increased by 35.7%.

Third, the reform and opening-up continued to be promoted, and new drivers of growth continued to increase. First, the results of supply-side structural reform continued to be consolidated. In the third quarter, the utilization rate of industrial capacity was 77.1%, which was a relatively good level compared with the same period in recent years. The asset-liability ratio of enterprises fell. At the end of August, the asset-liability ratio of industrial enterprises above designated size was 56.4%, a year-on-year decrease of 0.4 percentage point. Enterprise revenue costs fell. From January to August, the cost per 100 yuan of operation revenue of industrial enterprises above designated size was reduced 0.65 yuan compared with the same period last year. The effect of shoring up weaknesses was obvious. In the first three quarters, investment in education and health increased by 10.4% and 31.4% year on year, respectively, faster than the growth of total investment. Second, opening-up was further expanded. China's import and export trade continued to maintain rapid growth. In the first three quarters, the total value of imports and exports of goods increased by 22.7% year on year. Utilization of foreign capital continued to increase. From January to August, China's foreign investment in actual use increased by 22.3% year on year. The joint construction of the Belt and Road has been steadily promoted. In the first three quarters, China's total imports and exports to countries along the Belt and Road increased by 23.4% year on year; and the total number of China-Europe freight trains exceeded 10,000, up by 29% year on year. Third, new energy has grown rapidly. Investment in innovation continued to increase, and green, low-carbon smart products continued to emerge. In the first three quarters, the output of new energy vehicles and industrial robots increased by 172.5% and 57.8% year on year, respectively. Information technology has been widely applied, and new business forms and models such as livestreaming commerce and the platform economy have rapidly emerged. In the first three quarters, the online retail sales of physical commodities increased by 15.2% year on year, accounting for 23.6% of total retail sales of consumer goods.

Fourth, the incomes of residents continued to grow, and people's livelihoods have been effectively ensured. First, the incomes of residents continued to increase. The economy continued to recover, enterprise revenue improved, and employment has been generally stable, which have helped increase residents' incomes. In the first three quarters, the national per capita disposable income nominally increased by 10.4% year on year, and the actual growth rate was 9.7% after deducting price factors, which was basically in line with economic growth. In terms of urban and rural areas, the income of rural residents grew faster than that of urban residents. In the first three quarters, the nominal growth rate of rural residents' income was 2.1 percentage points faster than urban residents. Second, the prices of commodities related to residents' lives have stabilized and declined. Agricultural production was generally good, hog production continued to recover, food and other related commodities were in sufficient supply, and residents' lives were better guaranteed. In the first three quarters, food prices fell by 1.6% year on year, of which pork prices fell by 28% and grain prices rose by 1%. Third, guarantees of people's livelihood continued to be strengthened. Government public services continued to improve, and residents' welfare and transfer income increased. From January to August, among the general public budget expenditures across the country, expenditures on education and housing increased rapidly. In the first three quarters, the national per capita transfer income increased by 7.9% year on year, and the two-year average growth rate was 8.4%.

All these show that the fundamentals of China's long-term economic growth continue to be present, and the characteristics of strong development resilience, great potential, and broad wiggle room are obvious. However, we must notice that the international environment is unstable with many uncertainties, the domestic economic recovery is still unstable and uneven, and the challenge of maintaining the economy's stable operation has increased. In the next stage, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we must fully, accurately and comprehensively implement the new development philosophy, build a new development pattern, implement the macroeconomic policy cross-cyclical adjustments, promote stable economic recovery and maintain economic operations within a reasonable range. Thank you.

South China Morning Post:

Measures of power rationing and production suspension are currently being enforced in many places. Some companies and industry associations said that they have also been affected. Therefore, many institutions have subsequently lowered expectations of China's economic growth this year. My question is that what's the NBS's opinion on this situation? How to evaluate the impact of those specific measures on economic growth? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, international energy prices have risen sharply and prices of coal, natural gas, and crude oil have repeatedly hit new highs, making domestic power and coal supplies tight. Various factors led to recent power rationing in some places, which has affected normal production to a certain extent. Therefore, the CPC Central Committee and the State Council have defined a comprehensive plan and set clear requirements for energy production and supply. Relevant departments have implemented the decisions and released a series of measures to reform and ensure supply and price stability. After these measures came into effect and are producing positive results, the tight coal and power supply situation will be eased, and will have less constraints on China's economic performance. Judging from the situation in September, the growth rate of power production has accelerated. In general, the tight energy supply is temporary, and its impact on the economy is controllable. Thank you.

Cover News:

We noticed that employment maintained stable this year and the unemployment rate indicators have improved. What's the reason for this situation? How will the country's employment develop amid the increasing pressure for economic growth? Thank you.

Fu Linghui:

Thank you for your very important question. Employment is the foundation of people's well-being and development. The government attaches great importance to employment and continues to stabilize and expand it. With economic recovery this year, the employment-first policy worked effectively, and the growth in new jobs in urban areas is expanding. Meanwhile, the urban surveyed unemployment rate was stable with moderate decline, and the overall employment maintained stable. In the first three quarters of this year, newly employed people in urban areas totaled 10.45 million, achieving 95% of the annual target. The average surveyed urban unemployment rate is 5.2%, slightly lower than the 5.5% annual control target. In September, the urban surveyed unemployment rate was 4.9%, 0.2 percentage point lower than in August.

In the first three quarters of this year, the employment situation presented the following features. First, the overall employment situation has improved. The urban surveyed unemployment rate came in at 5.1%, 5.1% and 4.9% in July, August and September, respectively. The urban surveyed unemployment rate was stable with a moderate decline. The urban surveyed unemployment rate in 31 major cities was 5.2%, 5.3%, and 5% in July, August and September, respectively, showing steady improvement. Second, employment of the prime age group has been basically stable. The urban surveyed unemployment rate of the 25 to 59 age group was 4.2%, 4.3%, and 4.2% in July, August and September, respectively. The unemployment rate was lower and stable. Third, the employment of key groups has improved. Employment of college graduates increased, and youth unemployment fell. The surveyed unemployment rates of the population aged from 16 to 24 were 16.2%, 15.3% and 14.6% in July, August and September, respectively, falling month by month. We have continued to work to ensure employment for rural migrant workers, and their employment situation continued to improve. At the end of the third quarter, the total number of rural migrant workers increased 2% year on year, returning to the level in the same period of 2019 before the COVID-19 pandemic. The unemployment rate of rural migrant workers fell slightly in the third quarter.

In the first three quarters of this year, the employment situation has maintained a stable performance. The main reasons are: first, China's economy continued stable recovery, creating jobs. The gross domestic product (GDP) in the first three quarters increased 9.8% year on year, with an average two-year growth of 5.2%. The expansion of the national economy inevitably increased labor inputs and created jobs. Second, China's service industry continued its stable recovery to increase employment opportunities. The service industry has been expanding, and employment capacities have further grown. In September, the growth of the service industry accelerated, which was conducive to the improvement of employment. In September, the Index of Services Production grew by 5.2% year on year, 0.4 percentage point higher than that in August. The index of employment of the service industry's Purchasing Managers' Index (PMI) is 0.5 percentage point higher than that of August. Third, the employment-first policy has continued to produce positive results. The employment of key groups, including college graduates and rural migrant workers, improved, keeping the urban surveyed unemployment rate stable with moderate decline. Youth unemployment fell in the third quarter of this year. We have strengthened measures to create more jobs through business startups and strengthen vocational training to improve employment. Fourth, the platform economy and flexible employment have provided more employment opportunities. New business models are developing fast and will increase the need for new jobs. Since this year, the rapid development of livestream marketing and online shopping has also driven the increase of employees in relevant industries.

However, it should also be noted that the total pressure on employment and structural contradictions still exist, the unemployment rate of some groups remains high, and there are still job shortages in some coastal areas, so we need to continue our efforts to maintain stable employment. We need to continue to make cross-cycle adjustments to macro policies, promote steady economic recovery, and create favorable conditions for employment. We will implement the employment-first policy, strengthen employment services for key groups of college students and migrant workers, increase vocational skills training, promote the effective connection between supply and demand in the labor market, and promote stable and positive employment. Thank you.

CNBC:

Some recent data on real estate investment showed a decline in August and September. What impact has the recent real estate situation had on economic growth? How has it affected consumption? Thank you.

Fu Linghui:

Thank you for your questions. People also pay close attention to issues in real estate. The real estate industry is not only an important part of the national economy, but is also closely related to the lives of residents. In recent years, in accordance with the requirements of the central government, all regions and departments have adhered to the principle of "no speculation in housing," continued to stabilize land prices, house prices and expectations, effectively prevented and resolved potential risks, and promoted the steady and healthy development of the real estate market.

Since this year, by improving the long-term mechanism of the real estate market, curbing unreasonable demand, promoting the stable release of rigid demand, and restricting some real estate enterprises from blindly expanding by borrowing, the real estate market has generally stabilized, and real estate investment, sales and house prices have gradually stabilized. In the first three quarters of this year, the sales area of commercial housing increased by 11.3% year on year, with a two-year average growth rate 4.6%, down 1.3 percentage points than that for January to August. Investment in real estate development rose 8.8% year on year, with a two-year average growth of 7.2%, 0.5 percentage point lower than in the January-August period. In July and August, the growth rates of housing prices in 70 big and medium-sized enterprises were generally declining.

In the next stage, the real estate market is expected to maintain steady development with the continuous improvement of the housing system for both purchases and rentals and as market entities become more rational. 

As for the impact of real estate on economic growth, in the first three quarters of this year, the two-year average growth rate of the added value of real estate was 4.8%, which was 1.3 percentage points lower than that of the first half of this year. On the whole, the impact has been limited. Thank you.

Bloomberg News: 

I have two questions. The first one is: Can you give us some breakdown for the contribution from the exports, capital formation and consumption. The second one is: You said that the policies would have an effect on coal output. Are you seeing an increasing coal output in October from September, because coal output fell while electricity demand rose in September, so that situation doesn't reverse. The power shortage is going to get worse in October. So has it already set to improve or is that going to happen in the future?

Fu Linghui:

Thank you for your questions. I can give you some data on the contribution of the three major demands to growth. In the first three quarters, the contribution rate of final consumption expenditure to economic growth was 64.8%, the contribution rate of total capital formation was 15.6%, and the contribution rate of net exports of goods and services was 19.5%.

As for coal production, it should be noted that the coal market supply was tight due to affected release of some production capacity. The central government attaches great importance to this. Recently, relevant departments have issued a series of measures to stabilize and increase coal supply and production. It is believed that the tight situation will be gradually improved. Thank you.

CNR:

We know that the prices of other goods will only be stable when grain prices are stable, but recently, Shanxi province suffered serious floods. Will this have an impact on national grain production this fall? What do you think of the agricultural production situation since this year? Thank you.

Fu Linghui:

Thank you for your questions. Agriculture is indeed of great concern and is the fundamental industry of the national economy. The central government attaches great importance to agricultural development. Since this year, various parties have taken measures to support stable and increased agricultural production and maintain the safety of grain production. In the first three quarters, the overall situation of China's agricultural economy was relatively good.

First, the scale of agricultural production continued to expand. Thanks to various policies and measures to support agricultural development, the added value of China's agriculture, forestry, animal husbandry and fishery grew by 7.4% year on year in the first three quarters, with a two-year average growth of 4.9%, which was 0.6 percentage points faster than in the first half of the year. In the third quarter, the two-year average growth rate of the added value of agriculture, forestry, animal husbandry and fishery was 5.5%, contributing more than 10% to China's economic growth.

Second, grain production shows good momentum. Although severe natural disasters took their toll on crops in some regions, weather conditions were generally favorable for agricultural production across the country, and field management and disaster alleviation measures were also effective. This year, both summer grain crops and early season rice have seen increases in output, registering a 2.2% rise in total. With increasing support for grain production, farmers gain more benefits and are more active in growing grains than before. The sown area for fall grain has been significantly enlarged, with more high-yielding corn being planted. Generally, crops sown in the fall are expected to produce high yields, contributing to another bumper harvest year.

Third, animal husbandry production has maintained fast growth. Strong measures were taken to resume hog production and to promote the development of the animal husbandry industry, which have yielded obvious results. In the first three quarters, the output of pork, beef, mutton and poultry rose 22.4% year on year. More specifically, pork output increased 38%, with 491.93 million hogs slaughtered, up 35.9% year on year; and 437.64 million pigs registered in stock, an increase of 18.2% year on year. Both numbers have largely returned to normal levels.

Stable agricultural production is conducive to a sound national economy and the improvement of people's well-being, laying a solid foundation for the steady and sound socioeconomic development for the whole year. However, we need to note that there remain weak points in China's agricultural production, and we should continue our efforts to promote the steady and sustained development of agriculture. Thank you.

Reuters:

What is your economic outlook for the fourth quarter or next year? Also, has China made sufficient policies in preparation for a further economic downturn, and how should China react to the spillover effect brought by the U.S. Federal Reserve's policy changes? Thank you.

Fu Linghui:

Thank you for your questions. The economic trends in the next phase have drawn much attention. Since the beginning of this year, China has made considerable progress in its economic recovery. Although the country's economic growth slowed down in the third quarter due to many factors such as the pandemic, floods and a higher base number, it still showed strong resilience and vitality. In general, China's economy will sustain the momentum of continued recovery and move toward high-quality development, and the country has the ability to achieve its projected targets and tasks for socioeconomic development for the whole year.

First, economic recovery is well supported. In terms of consumption, stable employment and a continued rise in residents' incomes are conducive to higher spending power. The stable domestic epidemic prevention and control situation, a better consumption environment, and improving social security will also help to raise consumers' willingness to make purchases. In the first three quarters, Chinese per capita nominal consumer spending rose 15.8% year on year, with a two-year average growth of 5.7%, both higher than those of the first half of 2021. In terms of investment, business profits maintained relatively fast growth, the current rate of capacity utilization remains at a higher level, and supportive policies in the real economy will continue to take effect. All will help to improve investment in manufacturing. In the first three quarters, manufacturing investment registered a two-year average growth of 3.3%, showing a general trend of improvement. There have also emerged more favorable factors for the growth of infrastructure investment. This year marks the beginning of the 14th Five-Year Plan (2021-2025). With major projects starting construction one after another and special government bonds issued at a faster pace, there will be more infrastructure investment. In the first three quarters, the two-year average growth rate of infrastructure investment was 0.4%, up 0.2 percentage point compared with the period January to August. In terms of imports and exports, against the background of the global economic recovery, China boasts a complete industrial system and strong supporting capacity, which enables enterprises to meet the demands of the changing global market. China's exports are hence expected to maintain faster growth. At the same time, the domestic economic rebound can also drive China's imports. In the first three quarters, China's imports and exports expanded 22.7% year on year.

Second, progress has been achieved and stability ensured in industrial development. Despite the combined impact of the pandemic, floods and other adverse factors, the trend toward promoting quality and upgrading has remained unchanged. The overall situation of grain production is stable with increased output of summer grain crops and early season rice. Owing to the expanded sown area and general favorable climate conditions, the fall bumper harvest is in sight. The pace of industrial digitalization has also been stepped up. In the first three quarters, among industries above designated size, the added value of high-tech manufacturing industry increased by 20.1% year on year. The output of integrated circuits and industrial robots has grown substantially. The modern service industries also maintained sound growth momentum. In the first three quarters, the added value of the industries of information transmission, software and information technology increased by 19.3% year on year. With the continuous recovery of the Chinese economy and the steady pursuit of high-quality development, China's industries will keep heading in a positive direction. 

Third, innovation-driven power has been greatly strengthened. With the deepening reform to delegate power, streamline administration, optimize government services and the steady development of supply-side reform, China's innovation development has maintained sound growth and injected powerful vitality into economic development. According to a report released by the World Intellectual Property Organization (WIPO), China ranked 12th in the latest Global Innovation Index 2021, two places higher than last year. We have kept increasing the innovation input. In 2020, China's spending on research and development increased by 10.2% year on year, accounting for 2.4% of total GDP, close to the average level of countries in the Organization for Economic Co-operation and Development (OECD). With the optimized innovation environment and the improved supporting policies, we will further increase expenditure on technological innovation with enterprises as the main body. Innovative products are constantly emerging. A flow of major technological achievements in the fields of manned spaceflight, deep-water exploration and quantum science and technology have been revealed to the public. The bio-pharmaceutical industries, including vaccines and innovative medicines, have also achieved rapid growth. In the first three quarters, the added value of the pharmaceutical industry increased by 29.2% year on year. The innovative vitality has been greatly unleashed. In the first three quarters, the online retail sales of physical commodities and the trade of cross-border e-commerce saw a year-on-year increase of 15.2% and 20.1%, respectively. The outputs of new energy products and smart products also grew rapidly.

Regarding the policy aspect that you mentioned, it is fair to say that the government has accumulated a wealth of experience in making adjustments and controls. Over the past few years, on the basis of range-based regulation, we have strengthened directional and targeted regulations. We are fully capable of ensuring the economy operates within a reasonable range, and promoting the sound development of the economy. At present, China's financial strength has grown noticeably. Due to the relatively large space of monetary policies, we are capable of launching forceful measures in a timely manner according to changes in the situation, in a bid to promote the steady development of the economy, such as with the feasible monetary policy adjustments for major economies. Since this year, financial management departments have made a set of policy arrangements, and reduced the potential spillover effects brought about by the policy adjustments in major developed economies. Thank you. 

Yicai:

The producer price index (PPI) soared by a record high of 10.7% in September. What are the reasons for that? How do you view the trend of PPI in the coming quarter? Thank you.

Fu Linghui:

Thank you for your questions. The price change has received widespread attention. Since this year, the faster expansion of PPI can be attributed to the the combined impact of sharp price rises of international bulk commodities, increased domestic demand due to economic recovery and the tight supply of some products. In the first three quarters, PPI increased by 6.7% year on year, up by 1.5 percentage points compared with the first half of this year (H1). From the key features, the rising prices of the means of production is one of the major factors driving the rise of PPI. In the first three quarters, the prices of the means of production rose 8.9% year on year, up by 2.1 percentage points compared with H1. The prices of the means of subsistence rose by 0.2% year on year, up by 0.1 of a percentage point compared with H1. In terms of industry, price rises in petroleum, chemicals, coal and metal have had a large impact. Due to the rising prices of international crude oil, the prices of domestic petroleum and chemical-related industries rose by 10%-30% in the first three quarters, faster than that of H1. Driven by lower supply, the prices of the coal and metal-related industries increased as well. In the first three quarters, the prices of coal-related industries and the steel and non-ferrous metal-related industries rose by more than 30% and 20%, respectively.

Looking at the most recent period, we can see that due to the continuous rise in international energy prices and the tight supply of some domestic raw materials, the PPI may continue to run at a high level. However, in the medium and long term, with gradual improvements in global energy supply and shipping conditions as well as an increase in domestic product supply, the PPI is expected to gradually stabilize. It should also be noted that faced with the expansion of PPI growth and the increase in difficulties for production and operation of enterprises, relevant departments have actively taken measures to ensure supply and stable prices, and the effects will gradually become noticeable. In some areas, in the third quarter, the price increase of the steel and non-ferrous metals industries dropped by 3.3 and 3.8 percentage points respectively from the second quarter. Thank you.

Global Times:

The latest World Economic Outlook released by the IMF forecasts that China's GDP will grow by 8%in 2021, which is 0.1 percent lower than the previous forecast. What is your response to this? Thank you.

Fu Linghui:

Thank you for your question. It should be said that due to multiple factors such as repeated waves of the pandemic worldwide, rising commodity prices, tight international shipping, labor shortages and shortages of key parts and components, the pace of global economic recovery has slowed overall since the third quarter. At the same time, inflation levels in major economies have continued to rise. For example, in September, the CPI in the United States rose by 5.4% year-on-year, and the CPI in the Eurozone rose by 3.4%, both of which were relatively high in recent years. This has also increased the possibility of policy shifts in these economies and has restricted the recovery of the global economy to a certain extent. Under these conditions, the IMF recently estimated that the global economic growth rate in 2021 will be lowered to 5.9% from what was previously expected to be 6%. Among them, the economic growth rate of developed countries has been lowered to 5.2% from the original forecast of 5.6%, reflecting concerns about changes in the global economy.

Against this backdrop, since China is a country deeply embedded in the globalization process, I think it is normal for the IMF to make some expected adjustments. However, it should be pointed out that China is the only country among the major global economies that achieved positive growth despite the impact of the pandemic in 2020. Compared with other countries, the base number is relatively high. Major international organizations expect that China's economy will still maintain a relatively high growth rate at about 8% in 2021. This rate is not only higher than the global average growth rate, but also higher than the growth rate of major economies, reflecting the international community's optimism regarding the outlook for China's economic growth, and also indicates that China's economy is resilient and has huge potential. Thank you.

Shou Xiaoli:

Last two questions.

Red Star News:

In recent months, China's manufacturing PMI has continued to decline. In September, the PMI was 49.6%, which was 0.5 percentage points lower than the previous month and below the threshold. What caused this? Is it related to industrial raw material prices and recent energy shortages? Will it have an adverse impact on the national economy? What are the expectations for the future? Thank you.

Fu Linghui:

Thank you for your questions. It should be said that the recent decline in manufacturing PMI is the result of multiple factors at home and abroad. From the international perspective, the recovery of the world economy is slowing down, the prices of international commodities have risen sharply, and the tension in international shipping will inevitably affect the expectations of domestic companies. From the domestic perspective, due to the impact of the pandemic resurgence and floods in some regions in July and August, some long-term accumulated structural problems have appeared, which will also affect business expectations.

Although the manufacturing PMI declined in September, the overall outlook for the development prospects of enterprises remained stable. We can see that in the manufacturing PMI in September, the expected index of enterprise production and operation activities was 56.4%, which is still at a relatively high level. As for the future, the fundamentals of the long-term improvement of China's economy have not changed. The overall plan for pandemic prevention and control and economic and social development have been solidly promoted. The cross-cycle adjustment of macro policies has been effectively implemented. Policies supporting the development of the real economy have continued to be effective. Enterprises' expectations should stabilize. Thank you. 

The Beijing News:

The data released today also showed that pork prices fell by 28% year-on-year in the first three quarters. Recently, pork prices have been declining, and farmers have suffered losses, especially during the National Day holiday. Pig prices across the country have repeatedly hit new lows, and farmers are becoming more and more panicked. What negative impact will this have on the pork supply in the next period? What about pork price trends in the future? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, live pig production has continued to recover, production capacities have continued to expand and related prices have declined. In general, in the next stage, as the demands for meat pickling in some areas continue to increase, coupled with consumption boosts from the New Year's Day and Spring Festival holidays, the demands for pork consumption will increase. At the same time, the second round of frozen pork procurement and storage by the central government will be launched during the year, which is conducive to the stability of pork prices.

In terms of future development, the current large-scale breeding of live pig production is continuously expanding. These large-scale enterprises are improving their ability to grasp market changes and prevent and respond to market fluctuation risks. At the same time, we see that for the live pig market, the national regulatory and control mechanism is constantly improving, which is conducive to the stability of live pig production. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu Linghui, and thank you media friends. This is the end of today's press conference.

Translated and edited by Wang Qian, Zhu Bochen, Duan Yaying, He Shan, Yang Xi, Li Huiru, Gao Zhan, Chen Xia, Wang Mengru, Huang Shan, Xiang Bin, Yuan Fang, Qin Qi, Zhang Rui, Ma Yujia, Wang Wei, Zhang Tingting, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Zhao Yingmin, vice minister of ecology and environment

Zhang Zhanhai, chief engineer and spokesperson of the Ministry of Natural Resources

Li Chunliang, deputy administrator of the National Forestry and Grassland Administration

Chairperson:

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

Date:

Oct. 8, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference being held by the State Council Information Office (SCIO). The SCIO is holding this press conference today to issue, introduce and interpret a new white paper titled "Biodiversity Conservation in China."

This is the first white paper on biodiversity conservation issued by the Chinese government. Under the guidance of Xi Jinping Thought on Ecological Civilization, the white paper introduces the policy ideas, important measures and progress of biodiversity conservation in China, as well as China's initiatives in practicing multilateralism and deepening global biodiversity cooperation, and its contributions to the world.

At about 14,000 Chinese characters, the white paper consists of three parts: preface, main body and conclusion. Among them, the main body includes four parts: Harmony Between Humanity and Nature, Increasing the Efficiency of Biodiversity Conservation, Improving Biodiversity Governance, and Further Global Cooperation on Biodiversity Conservation. The paper is published in eight languages: Chinese, English, French, Russian, German, Spanish, Arabic and Japanese. These versions have been published by the People's Publishing House and Foreign Languages Press respectively, and will be distributed in Xinhua bookstores across the country.

In order to help everyone accurately and deeply understand the content of the white paper, we have invited Mr. Zhao Yingmin, vice minister of ecology and environment; Mr. Zhang Zhanhai, chief engineer and spokesperson of the Ministry of Natural Resources; and Mr. Li Chunliang, deputy administrator of the National Forestry and Grassland Administration, to attend today's press conference. They will introduce relevant information and answer your questions.

Now, I will give the floor to Mr. Zhao Yingmin, vice minister of ecology and environment.

Zhao Yingmin: 

Thank you. Ladies and gentlemen, friends from the media, good morning. I am very glad to have the opportunity to introduce to you the newly released white paper "Biodiversity Conservation in China." I would like to take this opportunity to sincerely thank you, friends from the media, for your long-term care and support for China's biodiversity conservation work.

Biodiversity provides humanity with rich and diverse production and life necessities, a healthy and safe ecological environment, and unique natural landscape culture. It is a significant foundation for the survival and development of mankind, and is related to the well-being of mankind. We once had a slogan for the International Year of Biodiversity: "Biodiversity is life. Biodiversity is our life." This sentence vividly illustrates the relationship between us and biodiversity, and the importance of conserving biodiversity.

With population growth and expansion of human economic activities, global biodiversity is facing serious threats. According to a global assessment report released by the United Nations in May 2019, human activities have altered 75% of terrestrial environment and 66% of marine environment, and a quarter of the world's species are at threat of extinction. On Sept. 18, 2020, the Secretariat of the Convention on Biological Diversity launched the fifth edition of the Global Biodiversity Outlook (GBO-5). The report stated that despite the progress in many areas of biodiversity conservation, nature is still suffering heavy blows, and the global biodiversity situation is still deteriorating.

China has a vast territory, in terms of both land and seas. Its geomorphology and climate are complex and diverse, nurturing a rich and unique ecosystem, and species and genetic diversity. It is one of the most biodiverse countries in the world. China's traditional culture has accumulated abundant wisdom in the protection and utilization of biodiversity. As one of the first parties to sign and ratify the Convention on Biological Diversity, China has always attached great importance to biodiversity conservation, and continuously promoted the conservation of biodiversity with creative and up-to-date measures. It has achieved remarkable progress on a distinctively Chinese path of biodiversity conservation. The white paper "Biodiversity Conservation in China" comprehensively summarizes that, under the guidance of Xi Jinping Thought on Ecological Civilization and with the goal of building a Beautiful China, the country actively adapts to the new situation and new requirements, and has been continuously improving the measures for biodiversity conservation and making innovative ways in this regard. It systematically expounds, from four aspects, on the ideas, actions and effects of China's biodiversity conservation that aims to promote harmonious coexistence between humanity and nature, between individuals, and between individuals and society, and create a virtuous circle for all-round development and sustained prosperity for all.

The 15th meeting of the Parties to the UN Convention on Biological Diversity (COP-15) will be held soon. The 2030 Agenda for Sustainable Development has also entered its "Decade of Action" to achieve global goals. At the same time, China has built a moderately prosperous society in all respects and embarked on a new journey of building a modern socialist country in all respects. The international community is standing at the historic juncture of protecting biodiversity and realizing global sustainable development. At this time, it is of important practical significance to release the white paper "Biodiversity Conservation in China" and introduce China's ideas, plans and actions in the field of biodiversity conservation to the international community. It aims to enhance the international community's understanding of China's biodiversity conservation, and contribute Chinese wisdom to global biodiversity conservation. 

Looking back on the past and forward to the future, the international community must work together in biodiversity conservation. China will continue to increase its biodiversity conservation efforts and actively participate in global biodiversity governance. China will work with the international community to discuss new strategies for global biodiversity governance, and embark on a new course of the post-2020 global biodiversity governance that is more just and reasonable, and where each will do their best.

That's all for my introduction. Next, the three of us will answer your questions.

Thank you.

Chen Wenjun:

The floor is now open for questions. Please identify your media outlet before raising questions.

CCTV:

The white paper, titled "Biodiversity Conservation in China," is the first one issued by the country to focus on the field of biodiversity conservation. Given that the 15th meeting of the Conference of the Parties to the UN Convention on Biological Diversity – known as COP15 – is set to kick off in Yunnan province soon, why did you choose to issue the white paper now and what is its significance? Thank you.

Zhao Yingmin:

I just explained that China is one of the most biodiverse countries in the world and also one of the first countries to sign and approve the UN Convention on Biological Diversity. China attaches great importance to biodiversity conservation and preserves biodiversity with creative and up-to-date measures. Since the 18th CPC National Congress, China has been prioritizing eco-environmental progress and pursuing green development under the guidance of Xi Jinping Thought on Ecological Civilization. A new pattern of biodiversity governance has largely taken shape, with improvements to the legal system, mechanisms for supervision as well as fundamental capabilities, marking the start of a new era for biodiversity conservation. China has achieved substantial progress on the path to biodiversity conservation with Chinese characteristics.

There is a practical significance to issuing the white paper ahead of the upcoming COP15. It presents China's visions, measures and achievements on biodiversity conservation to the world, and also provides China's solutions to global biodiversity conservation. These are reflected in the following four aspects.

First, it is the first time that China has issued a white paper comprehensively introducing its efforts in the field of biodiversity conservation. China regards biodiversity conservation as a vital part of promoting ecological progress and an important starting point for promoting high-quality development. The requirements of biodiversity conservation have been incorporated into all aspects and fields of economic and social development, and all sectors of society have been mobilized to protect biodiversity. The release of the first white paper is a concrete manifestation of China's comprehensive and in-depth efforts to promote the mainstreaming of biodiversity, therefore it is of great significance.

Second, the white paper showcases China's concept, action and achievements in biodiversity conservation, as well as China's contribution to global biodiversity conservation. By elaborating on China's commitment to the philosophy of harmonious coexistence between humanity and nature, the country's efforts in holistically enhancing the efficiency of biodiversity conservation and in improving biodiversity governance, as well as its innovative measures and fruitful achievements in deepening global biodiversity exchanges and cooperation, the white paper shows that China shoulders its responsibility and makes its contribution to biodiversity conservation as a major country. Meanwhile, it also expresses China's confidence in standing in solidarity with the rest of the world as we meet global biodiversity challenges.

Third, it summarizes the practice and experience of China's biodiversity conservation efforts and provides solutions for building a shared future for all life on Earth. China always stands guard for our harmonious and beautiful planet for all life and has been contributing to its wellbeing with action. With proactive explorations and bold practices, China has embarked on a road to biodiversity conservation with Chinese characteristics. On the occasion of COP15, the white paper will enable us to share China's experience in biodiversity governance. This will help build confidence in the global response to the challenges and risks of biodiversity loss and ecosystem degradation. It will play an important role in promoting the achievement of ambitious and pragmatic outcomes at the meeting and the formation of a more fair and equitable global biodiversity governance system where each country can make contribution to the best of its ability.

Fourth, the white paper will inspire enthusiasm across society for biodiversity conservation and accelerate biodiversity governance process, in which everyone is responsible to undertake his or her due obligations, while also enjoying all of the benefits. Biodiversity provides an important material basis for the survival and development of humanity, therefore protecting biodiversity is the responsibility and obligation of every country, organization and individual. China sees the release of the white paper as an opportunity to earnestly implement international conventions, continue to widely promote various biodiversity protection efforts, and mobilize and pool the strengths of the whole society to participate in biodiversity protection, providing a strong and enduring driving force for biodiversity conservation.

Thank you.

CRI:

Biodiversity has a direct bearing on people's wellbeing and is an important basis for human survival and development. What efforts and achievements has China made in biodiversity conservation in recent years? What measures and actions will be taken to further consolidate and develop the achievements made in biodiversity conservation? Thank you.

Zhao Yingmin:

Thank you for your questions. Under the guidance of Xi Jinping Thought on Ecological Civilization, China has upheld the philosophy of harmonious coexistence between humanity and nature and has actively promoted the construction of its ecological civilization. Improvements have been made to the legal system, supervision mechanisms and fundamental capabilities of ecological protection. With the goal of building a beautiful China, the country has actively adapted to new situations and requirements, strengthened and innovated biodiversity protection measures, and improved its overall biodiversity conservation system. It has established conservation mechanisms led by the government and featuring multilateral governance and win-win cooperation, in which all citizens participate. This way, it has made remarkable progress in biodiversity conservation. The white paper systematically expounds these efforts on four aspects, and the achievements can be summarized in ten areas.

First, optimizing in-situ conservation. We are creating a protected area framework with a focus on national parks. China was the first in the world to propose and implement the red line strategy for ecological conservation. It has designated priority areas in biodiversity conservation, contributing to the conservation of habitats for key species. At present, China has brought 90% of terrestrial ecosystem types and 71% of key state-protected wildlife species under effective protection. The populations of well-known endangered species such as the giant panda, crested ibis and Asian elephant are constantly increasing. 

Second, improving ex-situ conservation. China continues to step up ex-situ conservation, and has launched systematic campaigns to save endangered species. More biological genetic resources are collected and better preserved, and the ex-situ conservation system is improving as an effective complement to in-situ conservation, helping to protect and restore many species of endangered wildlife. 

Third, improving biosecurity governance. China has included biosecurity in the national security system. The Biosecurity Law was promulgated and came into force in 2021. Systematic planning has been carried out for biosecurity risk control and governance. Efforts have been made to improve the mechanism for preventing invasive alien species, promote the sound development of biotechnologies, and strengthen the protection, supervision and regulation of biogenetic resources. The aim is to constantly improve national biosecurity governance. 

Fourth, improving the eco-environment. China has launched a series of projects for the integrated conservation and restoration of mountains, rivers, forests, farmland, lakes, grasslands, deserts, glaciers and snow mountains. As a result, ecological deterioration has been contained, and ecosystems are generally stable, with a greater capacity to serve development. China has been fighting a tough battle against pollution; the pressure on biodiversity conservation has been greatly eased, the eco-environment continues to improve, and a framework of "shields" for ecological security has been largely completed. 

Fifth, promoting green development with coordinated efforts. China endeavors to advance social and economic development within the carrying capacity of supporting ecosystems. Measures have been taken to transform the economic growth model, encourage green and low-carbon ways of life, and coordinate efforts in biodiversity conservation and high-quality development. We have accelerated the green transformation of all sectors and industries, promoted green urban and rural development, and explored methods to realize the market value of green products.

Sixth, improving relevant policies, laws and regulations. Biodiversity conservation has been elevated to a national strategy in China, and incorporated into mid- and long-term plans of all regions and fields. We have strengthened organization and leadership. There has been a drive to improve the legal and policy framework. China has promulgated and revised more than 20 laws and regulations related to biodiversity conservation, including laws on the protection of wild animals and the environment. China has also revised the list of key wild animals under state protection. 

Seventh, extending guarantees. China has organized nationwide biodiversity surveys, and put in place sound biodiversity monitoring and observation networks. It has increased financial input and effort in technology research and development and launched major biodiversity conservation projects.

Eighth, strengthening law enforcement and supervision. China has conducted central environmental protection inspections, and launched special law enforcement campaigns including the Green Shield inspections of nature reserves, the Blue Sea initiative for marine environmental protection and the crackdown on illegal wildlife trade. China has always been tough against illegal and criminal activities related to biodiversity with constantly increased efforts.

Ninth, encouraging public engagement. China continues to strengthen publicity and education on biodiversity conservation. An action system involving stronger government guidance, corporate action and extensive public participation is taking shape. Public participation in biodiversity conservation has grown and become more diversified. 

Tenth, further global cooperation on biodiversity conservation. China has actively implemented international conventions and worked to enhance synergies among biodiversity-related conventions. China has firmly practiced multilateralism and actively carried out international cooperation. It has provided help and support to other developing countries within its abilities regarding biodiversity conservation, and is striving to build a shared future for all life on Earth.

Going forward, we will make systematic plans and continue our efforts. As for policies, laws and regulations, we will revise the China National Biodiversity Conservation Strategy and Action Plan (2011-2030) to improve relevant policies and systems. We will push forward the formulating and revising of biodiversity-related laws and regulations to improve the legal system. As for measures, we will formulate and implement the Ten-Year Plan of Major Biodiversity Conservation Projects (2021-2030), promote background surveys of the priority areas in biodiversity conservation, and improve observation networks. Monitoring data and information platforms on biodiversity conservation will be improved and capacity for biodiversity protection and governance will be enhanced in an all-round manner. 

Thank you. 

Beijing Youth Daily:

According to the Global Biodiversity Outlook 5 (GBO-5) released in September 2020, progress on the 20 Aichi Biodiversity Targets set in 2010 was insufficient. What were the main reasons for that? How well did China meet the 20 Aichi Biodiversity Targets? What were the achievements and shortcomings? 

Zhao Yingmin: 

Thank you for your questions. At the 10th meeting of the Conference of the Parties to the Convention on Biological Diversity in 2010, the international community adopted the global biodiversity conservation targets for the 2011-2020 period to deal with severe biodiversity loss. According to the GBO-5 released by the Secretariat of the Convention on Biological Diversity in September 2020, although most parties actively formulated their own national policies and targets to protect biodiversity, and made significant progress in the mainstreaming of biodiversity, the Aichi Targets were not sufficiently met around the globe. The trend of biodiversity loss is not being reversed fundamentally and the pressure on biodiversity is still increasing. Looking back, there are several experiences and lessons that we should learn.

First, global targets should be both ambitious and practical and feasible. Second, implementation mechanisms and supportive conditions should be improved. Special importance should be attached to the needs of developing countries in capital, technologies and talents. Third, all parties should further emphasize biodiversity conservation and take greater measures to ensure it. 

The upcoming COP15 will discuss the "Post-2020 Global Biodiversity Framework," review the progress and lessons learned from the previous global biodiversity targets of the past decade, and find opportunities for future transformations and reforms. Therefore, when discussing the new targets and strategies, we should fully reflect on the lessons of the Aichi Biodiversity Targets (2021-2020). We must also boost confidence in protecting global biodiversity, take solid steps and seek truth from facts, take full consideration of the attainability and operation of the targets as well as the differences in each country's development, so as to introduce both ambitious and pragmatic targets and indicators for biodiversity protection and propose feasible roadmaps for meeting them. The framework should also follow the principle of fairness, transparency and signatory leadership; improve the implementation mechanisms and guarantee system; strengthen technological transfer and capacity building; improve developing countries' abilities to meet the agreement; and strive to build a global biodiversity governance system that is both fair and practical and based on cooperation and win-win resolution. The continuing COVID-19 pandemic teaches us a lesson that people and nature form a shared community. The international community should step up cooperation to meet the risks and challenges caused by the loss of biodiversity and the degradation of the ecosystem.

As one of the countries with the richest biodiversity in the world, China has earnestly implemented the Aichi targets, clarified various tasks and responsibilities, and achieved positive results in the implementation of the targets. Among the 20 targets, China has over-fulfilled three, made major progress in 13 and achieved phased results in four. China's overall implementation of the Aichi targets is above the global average.

The Global Biodiversity Outlook 5 (GBO-5) have mentioned China's valuable experience in biodiversity conservation multiple times. Next, we will further strengthen the top-level design of biodiversity conservation. We will improve the construction of laws, regulations and the policy planning system. We will also continue to implement major biodiversity conservation projects, improve the early warning and monitoring system of alien invasive species, promote the implementation of various biodiversity conservation responsibilities through the central supervision system for ecological environment protection, and improve the ability of biodiversity governance in an all-round way. Thank you.

China Natural Resources News:

Ecological restoration is an important means to protect and improve biodiversity. What has the Ministry of Natural Resources done to fulfill its responsibility to restore the ecology of our national territorial space? Are there any future plans? Thank you.

Zhang Zhanhai:

Thanks for your question. Since its founding, the ministry has been earnestly implementing Xi Jinping Thought on Ecological Civilization, following the principles of prioritizing resource conservation and environmental protection and promoting the self-restoration of nature. It is strengthening the ecological restoration of the national territorial space, and has put ecological restoration and the protection and improvement of biodiversity as its major goals. The work we have done can be separated into the following two aspects.

First, we have prioritized biodiversity conservation in related plans. In 2020, the National Development and Reform Commission and the Ministry of Natural Resources published the Master Plan for Major National Ecological System Protection and Restoration Projects (2021-2035), with a major focus on the construction of national parks, natural reserves, natural parks as well as the protection of endangered wildlife. The plan laid out 9 major projects and 47 specific tasks, including 23 that are related to biodiversity conservation, taking into account the integrity of the ecosystem, the continuity of geographical units and the sustainability of socioeconomic development. It provides a major guarantee for biodiversity conservation and the protection and restoration of the major ecological system.

Second, we have implemented a series of major ecological protection and restoration projects. During the 13th Five-Year Plan period (2016-2020), the central government invested 50 billion yuan (US$7.75 billion) in the land area to carry out 25 pilot projects for ecological protection and restoration of mountains, rivers, forests, lakes and grasslands in key national ecological function areas such as Qilian Mountains, Helan Mountain, Changbai Mountain and Lesser Khingan Mountains. In the Yangtze River Economic Belt, the Yellow River Basin, the Beijing-Tianjin-Hebei region, the Fenwei Plain and other important river basins and regions, we have carried out restoration of abandoned mines left over from history, with the restoration area totaling 4 million mu (266,667 hectares). In the coastal areas, we carried out the "Blue Bay" project, the coastal zone protection and restoration project, and the mangrove protection and restoration project. During the 13th Five-Year Plan period (2016-2020), a total of 1,200 kilometers of coastal lines and 345,000 mu of coastal wetland were restored. This year, as part of the 14th Five-Year Plan, we have launched the first batch of 10 integrated protection and restoration projects for mountains, rivers, forests, farmlands, lakes, grasslands and deserts, as well as 15 marine ecological restoration projects.

Next, my ministry will take the implementation of the master plan as the main line and aim to comprehensively improve the quality of the national ecological security barrier and the virtuous circle of the ecosystem. We will carry out ecological protection and restoration work in the protective barriers for eco-security in the Qinghai-Tibet Plateau, the important ecological areas along the Yellow River and the Yangtze River, the northeast forest belts, the sand control belts in the north, the hilly and mountainous areas in the south, and the coastal zones. We will carry out these projects in a scientific manner, build a stronger defense for ecological security and further contribute to the protection and improvement of China's biodiversity.

Thank you.

China Daily:

The National Forestry and Grassland Administration is one of the main departments responsible for conserving biodiversity. What efforts have you made to this end? And what progress has been made? Thank you.

Li Chunliang:

Thank you for your questions. The release of the white paper reflects the efforts and achievements China has made in biodiversity conservation over the years. The forestry and grassland sector is one of the main departments responsible for biodiversity conservation. I will brief you on the work we have done in protecting ecosystem diversity, species diversity and genetic resource diversity.

First, regarding the protection of ecosystem diversity, we have intensified efforts in improving the ecosystems of forests, grasslands, wetlands and deserts. As for forest ecosystems, we have focused on conservation and restoration and launched many projects including large-scale afforestation, protection of natural forests and turning marginal farmland into forests. As a result, the natural forest reserve has registered a significant increase, with 78% of total forest carbon storage coming from natural forests. China's forest coverage and forest reserve have both maintained growth for the last 30 years, and the forest ecosystem has a greater capacity to serve development.

As for grassland ecosystems, we have made solid progress in the conservation and restoration of grasslands by turning grazing lands to grasslands and subsidizing the restoration of grassland eco-environments. In 2020, the vegetation coverage of China's grasslands stood at more than 56%, and the grass continued to improve. 

As for wetland ecosystems, during the 13th Five-year Plan period, we have implemented 53 wetland conservation and restoration programs as well as more than 2,000 programs including those that compensate for economic disadvantages associated with reducing damage to wetland eco-environments, and those that provide allowances for turning farmlands into wetlands, with 201 new national wetland parks and an increase of wetlands by 3.04 million mu (202,667 hectares). A total of 7.01 million mu of degraded wetlands have been restored, and more than 50% of wetlands have been protected. The wetland ecosystem continues to improve, with water quality improvements and the number of migratory bird populations picking up significantly.

As for desert ecosystems, we have implemented key projects with continual efforts to develop the Three-North (i.e., Northeast China, North China and Northwest China) Shelterbelt Forest Program for 43 years, facilitating sandstorm source control in Beijing and Tianjin for 21 years, and controlling stony desertification for 15 years. Moreover, we have mapped out protected regions for desertification lands and developed more national desert (stony desert) parks. China has been consolidating progress step by step to curb the global major ecological issue of desertification. Studies have shown that China's sandy lands have changed from an annual average expansion of 3,436 square kilometers at the end of the last century to a current annual average decrease of 1,980 square kilometers, creating a human miracle of turning desert into oasis and transforming wastelands into forests, all while advancing China's solutions for global ecological governance.

Second, regarding species diversity conservation, we have initialed since 2001 projects for wild animal and plant conservation and constructed nature reserves , and put 15 rare and endangered species of wild animals and plants including giant pandas, Manchurian tigers, golden monkeys, red ibises and cycads under conservation. Rescue measures have been adopted to establish nearly 10,000 nature reserves nationwide, accounting for roughly 18% of China's lands. A total of 90% of land ecosystems, 65% of higher plant communities, and 71% of wildlife species under state conservation have been protected. Conservation of flagship species has shown umbrella effects, benefiting other species in the same habitat. The number of species under state conservation continued to increase. China has rebuilt the wild population of the elk, Przewalski's horse and crested ibis, once nowhere to be found in the wild, winning global attention.

Third, regarding the preservation of genetic resources diversity, we have made the following efforts to promote the genetic resource preservation of wild plants. We have begun constructing a botanical garden system. A total of 162 botanical gardens have been established to collect and preserve more than 20,000 wild plants. China has completed basic preservation of germplasm resources of rare and wild plants including cycad, palm, and key orchidaceae and magnoliaceae plants native to the country. We have launched the construction of germplasm resources for trees. China has established 161 state-level germplasm resource in-situ and ex-situ banks for trees, and two state-level germplasm resource sub-centers for trees and grass in Xinjiang and Shandong, preserving more than 100,000 copies of germplasm resources for trees. We have launched the construction of germplasm resource centers for grass. China has set up one germplasm center for grass and 11 state-level germplasm resource gardens for grass, preserving more than 60,000 germplasm resources of grass, mainly herbage.

Regarding wildlife genetic resource preservation, we have set up and improved wildlife rescue and breeding centers and germplasm genetic banks, supported the establishment of a national center for genetic conservation of endangered wildlife, a feline research center, and an Asian elephant conservation and research center, collecting and preserving a total of 220,000 genome-wide DNA samples of more than 800 species of China's rare and endangered wildlife.

Over the years, we have made remarkable progress in preserving forest and grass biodiversity. We will continue to work on natural ecosystem conservation, endangered species rescue and breeding, and genetic resource collection and preservation, making more contributions to biodiversity conservation at home and abroad. Thank you.

Phoenix TV:

We have noticed that according to some research, global biodiversity is dramatically decreasing. What experience can China, as one of the most biodiverse countries in the world, offer to others?

Zhao Yingmin:

Thank you for your question. All of the world's countries and all human beings are a community with a shared future and share in the challenges brought by the loss of biodiversity. China, as an important force in biodiversity conservation, has always pursued harmony between humanity and nature, constantly strengthening and creating biodiversity conservation measures. It has also yielded outstanding achievements while maintaining fast economic development. The experience we accumulated can be condensed into the following four aspects:

First: respecting nature and prioritizing biodiversity conservation. Following the principles of respecting and protecting nature and obeying nature's laws, China has built a nature reserves system centering on national parks and put forward "the ecological red-line" system by identifying the country's crucial ecological zones, thus playing an important role in protecting key ecosystems, species, and their habitats. A large number of ecological projects have also been launched, such as step-by-step protection and restoration of natural forests, and programs turning marginal farmland back into forests or grasslands or wetlands. China has advanced pilot projects for the conservation and restoration of mountains, rivers, forests, farmland, lakes, grasslands, deserts, and ice ecosystems, effectively restored the environment of the wild plants and animals in crucial areas, and increased the number of the species of wild animals. China has been fighting a tough battle of pollution prevention and control; the eco-environment has improved notably and the pressure on biodiversity conservation has been eased.

Second, seeking green development and sustainable utilization of bio-resources. China has promoted green, low-carbon ways of life and work

so as to ease the burden on biodiversity. China has integrated biodiversity conservation with development-oriented poverty alleviation and rural revitalization based on different local characteristics and traditional cultural features and exploited new ways to achieve win-win results in both biodiversity conservation and high-quality development. Cherishing the principle that "lucid waters and lush mountains are invaluable assets," China has also launched a pilot innovation-based construction site and base site for realizing eco-products values and turned ecological strengths into high-quality social-economic driving forces of development, thus fueling the motivation of biodiversity conservation throughout the country.

Third, enhancing institutional guarantee and coordinating actions for biodiversity conservation. By implementing the new development philosophy, China has strengthened biodiversity conservation as a national strategy, improved laws, regulations, and policies to provide institutional guarantee for biodiversity protection and management. China has ramped up biodiversity conservation through top-level design. It has been included in the 14th Five-Year Plan (2021-2025) for National Social and Economic Development. The China Biodiversity Conservation Strategy and Action Plan (2011-2030) has been adopted as a guideline for mid- and long-term work. Biodiversity conservation tasks are incorporated into mid- and long-term plans of all regions and fields across China.

Fourth, upholding multilateralism and win-win cooperation. China firmly supports a multilateral biodiversity governance system, actively participates in its process, and fulfills its obligations prescribed in the Convention on Biological Diversity and other relating treaties. China has been providing assistance within its ability to other developing countries through many bilateral and multilateral cooperation mechanisms, such as the Belt and Road Initiative International Green Development Coalition and South-South cooperation, thus deepening international exchanges and cooperation on biodiversity and contributing China's strengths and proposals to the great vision of achieving harmony between humanity and nature. Thank you!

Cover News:

We have noticed that a territorial space plan on "rolling separate plans into one single plan" is currently being formulated. In some cities there are also teams dedicated to the conservation and restoration of biodiversity. How will the territorial space plan play a role in the biodiversity conservation process? What practical experience does China have at this moment? Thank you!

Zhang Zhanhai:

Thank you for your questions. In line with the reform arrangements of the CPC Central Committee and the State Council, the formulation of different kinds of territorial space plans is being accelerated at all levels. Biodiversity conservation is a particularly important field, and relevant regulations and policies are being discussed and proposed. 

First, optimizing the layout of ecological space in territorial planning. We will make overall plans for ecological, agricultural and urban spaces, and protect biodiversity on three levels: ecosystems, species and genes. Through in-situ and ex-situ conservation, we will strengthen the protection of global and national key biodiversity areas, develop global migration routes for migratory birds and rare wildlife, improve the systems of species' ex-situ conservation and genes preservation, and build a global biodiversity protection network. We will build the protected areas system, which includes dozens of national parks, 1,000-plus natural reserves and thousands of natural parks, to effectively protect important natural ecosystems and biodiversity-rich areas. Efforts will also be made to strengthen the protection and construction of urban ecological systems, promote the formation of a continuous, complete and systematic ecological protection pattern, and promote the conservation and restoration of biodiversity. For example, Shanghai has constructed 21 parks at key ecological points on its outskirts, and Chengdu and other cities are transforming themselves into green cities, in order to form an urban layout that strikes a harmonious balance between humanity and nature.

Second, setting ecological conservation red lines (ECRLs) in territorial planning. China has established three control lines in order of priority: boundary lines for permanent basic cropland, ECRLs and boundary lines for urban development. The ECRLs include essential ecological functional areas, natural reserves, the most ecologically fragile regions, and areas with a potentially important ecological value, where stringent measures are applied to control their utilization. For example, Nanchang and other cities set up multidisciplinary teams to research the migration patterns of birds around the Poyang Lake and included the areas that migratory birds fly over into the ECRLs for strict control. At present, the ECRLs initially mapped in China have covered various important ecosystems and bring most of the rare and endangered species and their habitats under protection.

Third, accelerating the building of a basic information platform for territorial space and an implementation and supervision information system for "one-map" territorial planning. Biodiversity conservation is regarded as an important part of the implementation and supervision. We will comply with the requirements of "unified base map, unified standard, unified planning and unified platform" to build a unified basic information platform for territorial space and draw a unified map for territorial planning. Efforts will be made to plan for complete life cycles while conducting periodic surveys and assessments of how plans are being implemented, and include local indicator species and other indexes into the implementation assessment system. We will also improve the long-term monitoring and early warning mechanism for the carrying capacity of resources and the environment, and strengthen the monitoring and early warning of indicators related to biodiversity conservation, so as to constantly refine plans and policies, and boost biodiversity conservation. Thank you.

Red Star News:

Recently, the proper response to a herd of wild Asian elephants roaming northward reflects the overall improvements of China's ecosystem and the remarkable achievements in ecological conservation. Wildlife protection requires long-term efforts. Could you give us more details on the work you have done in this regard during the 13th Five-Year Plan (2016-2020) period? What achievements have you made? What are your plans for the future? Thank you.

Li Chunliang:

Thank you for your concern about wildlife protection, which is of great concern to all sectors of society. The CPC Central Committee and the State Council have paid close attention to wildlife conservation. General Secretary Xi Jinping has given many important instructions on the issue, and showed great concerns and personal commitment to its development. We have carried out our work in the following six areas.

First, we have promoted law-based administration and continuously improved legislation, regulations and related support systems. China has revised the Law on the Protection of Wildlife twice, and systematically adjusted the list of key wild animals under state protection. On Feb. 1 this year, the State Council announced a revised version of the list. The new list includes 980 species and eight categories of wild animals, among which 686 are terrestrial wildlife with 189 under first-level and 497 under second-level protection.

Second, we have carried out the second national survey on terrestrial wildlife, and have made plans to gradually achieve real-time monitoring for key species, including the Siberian tiger, the Amur leopard and the Asian elephant.

Third, we have protected critically endangered wildlife to prevent them from going extinct. We made advances in artificial breeding technologies, released several species into the wild, and restored and reconstructed the wild populations.

Fourth, we have taken firm actions against illegal trade. Under the principle of "prioritizing conservation, standardizing utilization and strict supervision," the Chinese government has fulfilled its responsibilities, acted proactively, and constantly strengthened law enforcement. The National Forestry and Grassland Administration has worked with 27 other central and state departments to set up a ministerial joint meeting for cracking down on illegal wildlife trade. We organized nationwide actions against illegal hunting, utilization and online trading of rare and endangered wild animals. Recently, we deployed special measures to protect migratory birds in spring and autumn, eradicate criminal gangs, cut off illegal trade chains, and effectively curb the high frequency of crimes against wildlife resources.

Fifth, we initially established and improved a monitoring and control system for epidemic diseases within wild animal communities, and have effectively prevented and controlled epidemic spread.

Six, we have actively participated in international compliance affairs, strengthened international cooperation, promoted cross-border wildlife protection, fulfilled international obligations, and assisted other Asian and African countries with wildlife protection. China has become an important contributor to global ecological conservation. In particular, China has banned all activities related to using or trading tigers, rhinos, their products and ivories. It has also properly handled wild Asian elephants migrating northward. These actions have demonstrated China's image as a responsible major country.

I would like to share some statistics with you, which can also be found in the white paper. Generally speaking, the above-mentioned measures have basically reversed the loss of endangered wild animals, including giant pandas, crested ibises, Asian elephants and Tibetan antelopes. Their numbers are now on the rise. Specifically, the population of giant pandas in the wild has grown from 1,114 in the 1980s to 1,864 at present. The Asian elephant population in the wild has grown from 180 in 1985 to about 300 today. The Tibetan antelope population has grown from 60,000 to 70,000 in the late 1990s to 300,000 now. I visited the Qiangtang National Nature Reserve in Tibet last month, where I was delighted to see large herds of Tibetan antelopes, Tibetan gazelles, Tibetan wild donkeys, and blue sheep. In addition, the wild population of the Hainan Gibbon has increased from no more than 10 in two groups 40 years ago to 35 in 5 groups. The crested ibis population has increased from only 7 in 1981, when it was first discovered, to over 5,000 at present, when both wild species and artificial breeds are counted. The number of white cranes has climbed from 210 in the early 1980s to more than 4,500 today. The population of black-faced spoonbill has grown from more than 1,000 in the early 2000s to more than 4,000 now. China has rebuilt the wild population of the Przewalski's horse and elk, which were extinct in the wild. We have also released a large group of wild animals, such as giant pandas, crested ibises, Chinese alligators, forest musk deer, Elliot's pheasants, and Francois' leaf monkeys.

In the next step, we will continue to implement the decisions and plans of the CPC Central Committee and the State Council, rescue rare and endangered wildlife in order, and improve the system for biodiversity conservation. We will tighten import and export management and law enforcement, strengthen the monitoring, early warning, prevention, and control of epidemic diseases, and take stricter control measures over invasive alien species. We will actively provide guidance and adopt regulatory measures in handling conflicts between humans and wild animals, and preserve biodiversity and biosafety to make new advances in wildlife protection and achieve harmonious coexistence between humanity and wild animals.

Chen Wenjun:

The last question, please.

China News Service:

While the government plays a leading role in biodiversity protection, the public have also been a big part in this endeavor. What measures have been taken to raise public awareness of biodiversity conservation and encourage their engagement? Thank you.

Zhao Yingmin:

Thank you for your question. Biodiversity is closely related to everyone, as it sustains human life and provides essential material foundation for us to survive and thrive. Statistics show that more than half of the global GDP is moderately or highly dependent on natural resources. Facing global biodiversity loss and ecosystem degradation, China values harmony between man and nature, prioritizes ecological protection and green development, and has built a government-led mechanism featuring public participation, multilateral governance, and win-win cooperation. To facilitate the broad participation of all sectors of society in biodiversity protection, we promulgated the code of conduct for Chinese citizens in ecological protection (trial) and the guidelines for promoting public participation in environmental protection, organized a series of events under the framework of "United Nations Decade on Biodiversity, China in Action," and vigorously publicized the ideas, laws, regulations, and measures related to biodiversity conservation. On important occasions such as the International Day for Biological Diversity, World Environment Day, and World Earth Day, we publicized the importance of biodiversity conservation, the outcomes, and ways of participation. We also provided guidance for local departments to hold a series of publicity, education, and science popularization activities. At the same time, we actively cooperated with news organizations to expand publicity platforms and innovate publicity models with the help of new media.

Enterprises and social organizations are also important forces for biodiversity conservation. More and more organizations are playing their part in promoting publicity and education on biodiversity conservation. Through entertaining and innovative products and activities, they are helping the public gain more knowledge about biodiversity conservation and facilitate broader participation.

Everyone can contribute to biodiversity conservation by taking specific and practical actions in our daily lives. These include living a green and low-carbon lifestyle, carrying out the "Clear Your Plate" campaign against wasting food, buying environmentally friendly clothing, refusing to purchase and eat wild animals and their products, and jointly preventing the invasion of alien species. The popularization and application of new media, AI, smart phones, and high-quality online databases has increasingly diversified the forms of public participation in biodiversity conservation. On the occasion of the upcoming COP15 meeting, we encourage public engagement in biodiversity conservation. You can make contributions in various forms, such as participating in relevant projects and sharing knowledge about biodiversity conservation with your family and friends. No matter how big or small, every contribution counts tremendously, and together they will make a huge difference. Thank you.

Chen Wenjun:

Today's press conference is hereby concluded. Thank you. Goodbye!

Translated and edited by Zhang Rui, Wang Wei, Zhou Jing, Huang Shan, Liu Jianing, Yuan Fang, Guo Yiming, Ma Yujia, Duan Yaying, Li Huiru, Zhang Tingting, Liu Qiang, Zhang Liying, Yang Xi, Lin Liyao, Chen Xia, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China and minister of the State Council Information Office (SCIO)

Ning Jizhe, member of the Leading Party Members' Group and deputy head of the National Development and Reform Commission (NDRC), and secretary of the Leading Party Members' Group and commissioner of the National Bureau of Statistics

Liu Huanxin, deputy secretary of the Leading Party Members' Group and vice minister of the Ministry of Agriculture and Rural Affairs

Zhao Chenxin, member of the Leading Party Members' Group and secretary general of the NDRC

Chairperson:

Chen Wenjun, head of the Press Bureau of the SCIO and spokesperson of the SCIO

Date:

Sept. 28, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. The State Council Information Office (SCIO) is holding a press conference today to issue and introduce a new white paper titled "China's Epic Journey from Poverty to Prosperity." Present at today's press conference are Mr. Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC) and minister of the SCIO; Mr. Ning Jizhe, member of the Leading Party Members' Group and deputy head of the National Development and Reform Commission (NDRC), and secretary of the Leading Party Members' Group and commissioner of the National Bureau of Statistics; Mr. Liu Huanxin, deputy secretary of the Leading Party Members' Group and vice minister of the Ministry of Agriculture and Rural Affairs; and Mr. Zhao Chenxin, member of the Leading Party Members' Group and secretary general of the NDRC.

Next, I will give the floor to Mr. Xu Lin.

Xu Lin:

Ladies and gentlemen, friends from the media, good morning. At the ceremony marking the centenary of the CPC on July 1, General Secretary Xi Jinping declared that China had realized the first centenary goal of building a moderately prosperous society in all respects through the continued efforts of the whole Party and the entire nation.

Today, the SCIO issued a white paper titled "China's Epic Journey from Poverty to Prosperity." The white paper reviews China's journey to moderate prosperity, elaborates on the achievement of building a moderately prosperous society in all respects, and offers bright prospects for the country's modernization. The important document records and reflects China's practice of building a moderately prosperous society in all respects.

At more than 32,000 Chinese characters, the white paper consists of preface, main body and conclusion. The main text is divided into five parts: A Critical Step Towards National Rejuvenation, Prosperity Through All-Round Development, Prosperity for All, Prosperity Through Hard Work, and The World Benefits from China's Prosperity. The document provides a systematic explanation of what moderate prosperity in all respects in China is and how it was realized.

First, the realization of moderate prosperity is a critical step toward national rejuvenation. "Xiaokang," meaning moderate prosperity, has been a consistent dream and aspiration of the Chinese nation for millennia. More than 2,000 years ago, the term appeared in the "Book of Songs" to mean modest comfort: "The people are hard-pressed, they need some modest comfort." Centuries later, the "Book of Rites" described the ideal state of society that "xiaokang" would bring about. From the outset, the CPC has made the wellbeing of the Chinese people and the rejuvenation of the Chinese nation its abiding goals. The Party is committed to creating a happier and better life for the Chinese people. The white paper reviews how the Chinese people, led by the CPC, have persevered, progressing step by step from a subsistence standard of living to piecemeal prosperity, then to moderate prosperity. The document records that in the new era, General Secretary Xi Jinping has assumed leadership, made plans, and pushed forward the efforts to build a moderately prosperous society in all respects. He has rallied around him Party members and the Chinese people, and led them in eliminating absolute poverty, advancing reform, combating COVID-19, controlling pollution and defusing risks. Under his leadership, the Party and the country have achieved historic successes and transformations in the pursuit of their cause. The moderately prosperous society in all respects has come to fruition as scheduled, marking a critical step toward national rejuvenation. According to the white paper, the realization of moderate prosperity has boosted the Chinese people's pride and confidence in the nation, and inspired further endeavors on the quest for national rejuvenation.

Second, moderate prosperity in all respects has been achieved through all-round development. All-round development is essential to moderate prosperity. In pursuing moderate prosperity, China emphasizes balanced, coordinated and sustainable progress in the economic, political, cultural, social, and eco-environmental fields. It aims to meet people's growing needs in all areas and at all levels, and to promote their well-rounded development. Moderate prosperity makes China a strong and prosperous country striving for national rejuvenation and the people's wellbeing. With a large amount of facts and data, the white paper offers a comprehensive picture of moderate prosperity from various perspectives: sustained and healthy economic growth, greater people's democracy, a flourishing cultural sector, improved living standards, and historic progress in the eco-environment. The achievements include both material progress and advances in culture and ethics; both improvements in the lives of individuals and development of our nation and society; and both tangible and intangible outcomes. In short, moderate prosperity represents progress in every aspect and dimension.

Third, prosperity for all. Working to benefit the people is fundamental to a moderate prosperity society. While building itself into a moderately prosperous society, China has always put the people first so as to ensure that all people can share the fruits of development. It is a society where no individual, region or ethnic group is left behind, and a society where people from all ethnic groups can enjoy a happy and comfortable life in every corner of China's vast land. The white paper introduced China's success in the battle against poverty which has helped poor people rise out of poverty and achieve moderate prosperity along with the rest of the country, as well as China's integrated urban-rural development to ensure urban and rural areas complement each other and advance side by side, like two wheels of a cart. The white paper also introduced China's more coordinated development across regions. China has shaped a new framework of coordinated regional development, featuring reinforcing connectivity, clearly defined core functions for each area, and complementary advantages. According to the white paper, a moderately prosperous society in all respects embodies the organic unity of realizing the well-rounded human development and common development for all, and the major goal of socialism of achieving common prosperity,. 

Fourth, prosperity through hard work. China is the world's largest developing country with more than 1.4 billion people. For China, a better life can only materialize through hard work rather than waiting and wanting. The CPC has united and led the Chinese people in rebuilding the country from scratch through self-reliance and hard work, achieving the moderate prosperity which has been an aspiration for thousands of years. Focusing on working for the people, and working scientifically, arduously and continuously, the white paper introduced the extraordinary and arduous journey of building a moderately prosperous society from the following four aspects, including always putting the people first, developing sound policies and strategies, development through reform and opening up and perseverance over generations. The white paper said that the moderately prosperous society in all respects has been achieved in China through much hard work by the Chinese people. It is the Chinese people who have created a better and moderately prosperous life, said the white paper. The CPC leadership has provided the fundamental guarantee for realizing moderate prosperity. Without the leadership of the CPC, there would be no moderate prosperity, according to the white paper. 

Fifth, in achieving moderate prosperity for the Chinese people, China has contributed to its own development and delivered benefits to the rest of the world. China cannot develop in isolation from the rest of the world, nor can the world achieve prosperity without China. The growing prosperity of Chinese people and continuous development and progress of China has created positive momentum for world peace and common development. Achieving moderate prosperity in all respects has made China more prosperous, the people happier, and society more stable. This is how China is contributing to world peace and development in its own right. In achieving a moderately prosperous society, China has helped to dramatically reduce the world's poverty-stricken population, and offered enlightenment for the modernization of mankind, said the white paper. In the future, China will embrace the world in a more open and inclusive manner, have more positive interactions with the rest of the world, and contribute even more to building a community with a shared future for humankind and a better world, according to the white paper. 

China's realization of moderate prosperity in all respects has achieved the phased goals of China's modernization drive and taken a key step forward in the national rejuvenation. At the same time, unbalanced and inadequate development still poses a stern challenge. China will acquire a better understanding of the new development stage, implement the new development philosophy, foster a new development paradigm, and propel its unique modernization forward to make substantial progress in well-rounded human development and common prosperity while realizing high-quality development.

With the firm leadership of the CPC, and the united efforts of all Chinese people both at home and abroad, China will build itself into a great modern socialist country, the Chinese people will live a happier and better life, and the Chinese nation will make greater contributions to the progress of human society, according to the white paper.

That's all for my introduction. Thank you.

Chen Wenjun:

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

CCTV: 

The key phrase of the white paper is "moderate prosperity in all respects." How to understand and interpret that? What are your assessment criteria? As you mentioned, working to benefit the people is fundamental to moderate prosperity. In this regard, will people's income and living standards be substantially improved? What are the defining indicators? Thank you. 

Zhao Chenxin:

Thank you very much for your questions – I'll take them. These are very good questions, short but rich in content. As far as I can see, they involve the definition of "moderate prosperity in all respects," indicators for its evaluation, and changes it has brought to people's wellbeing. I'll give you my answers from these three aspects one by one.

First, on how to understand moderate prosperity in all respects. As Mr. Xu highlighted just now, the first sentence of the white paper says that "achieving moderate prosperity fulfills a long-cherished dream of the Chinese nation." Over the past century, led by the CPC, generations of Chinese people have persevered, progressing step by step from a subsistence standard of living to piecemeal prosperity, then to moderate prosperity throughout the country, thus marking a critical step towards realizing the Chinese Dream of national rejuvenation. Since the 18th CPC National Congress in particular, the CPC Central Committee with Comrade Xi Jinping at its core has prioritized the realization of moderate prosperity in its governance, ensured coordinated implementation of the five-sphere integrated plan and the four-pronged comprehensive strategy, focused on tackling areas of weaknesses, and implemented targeted poverty alleviation measures, presenting a series of important ideas and concepts and taking a number of major measures to ensure that the building of a moderately prosperous society in all respects is completed on schedule. The key to building a moderately prosperous society in all respects lies in "all respects." In my view, moderate prosperity in all respects means coordinated economic, political, cultural, social, and eco-environmental progress, to the benefit of the entire population and covering both urban and rural areas. To this end, we need to address areas of weakness and facilitate a more balanced, coordinated, and sustainable development. The white paper elaborates on all these points in great detail. I believe that you will gain more understanding and findings from a closer look at it.

Second, on the indicators for its evaluation. At its 18th National Congress, the CPC announced that China would realize the First Centenary Goal of building a moderately prosperous society in all respects. It defined the metrics for such a society: sustained and sound economic development, greater people's democracy, a significant improvement in cultural soft power, higher living standards, and major progress in building a resource-conserving and environment-friendly society. At its 19th National Congress, the CPC conducted a comprehensive analysis of the fundamental conditions required to achieve all-around moderate prosperity and the internal and external factors impacting this process. On this basis, it defined a strategy for securing success in building a moderately prosperous society in all respects and embarking on a journey to fully build a modern socialist China. General Secretary Xi Jinping has assumed leadership, made plans, and pushed forward the efforts to build a moderately prosperous society in all respects. As Mr. Xu highlighted just now, with efforts in eliminating absolute poverty, advancing reform, combating COVID-19, controlling pollution, and defusing risks over these years, China has addressed many long-standing and complex problems and achieved many objectives where progress had been slow. We have seen historic successes and transformations in the pursuit of the cause, and the Chinese people have gained a stronger sense of fulfillment, happiness, and security. In particular, the country has put an end to absolute poverty – a basic objective – I think, and the most defining indicator of building a moderately prosperous society in all respects.

Third, on people's wellbeing. A moderately prosperous society in all respects puts people first and places their wellbeing above anything else. The people are at the center of the philosophy of the CPC, and improving people's lives and wellbeing is the Party's goal. People's lives have been notably improved as a result. Here are some data: the average per capita disposable income made a huge jump from 171 yuan in 1978 to 32,189 yuan in 2020 and the Engel coefficient of urban residents dropped from 57.5% in 1978 to 29.2% in 2020, and that of rural residents from 67.7% to 32.7%. Once basic needs for food and other daily necessities have been satisfied, people want a better life, including better food, clothes, housing, and travel facilities. Subsistence-based consumption is gradually giving way to a model directed towards greater fulfillment and comfort. They are fully supplied with daily necessities and own a range of home appliances, and car ownership is common. Consumption of services such as catering, health care, education, tourism, culture, and entertainment has continued to surge. With the improvements in employment, education, social security, medical care, social governance, and other public services, their rights to subsistence and development are well protected. There are a lot more detailed data and examples in the white paper providing evidence for these changes. I hope you will gain a better understanding with a closer look at it. Thank you.

Bloomberg:

How big is the wealth gap now? How will the country control and narrow it? Will tax policies make a big difference? Thank you.

Ning Jizhe:

I'll answer your questions. Wealth inequality is a very important economic challenge. It is fair to say that in the process of building a moderately prosperous society in all respects, China has seen poverty going down and its people becoming increasingly richer. Since the 18th CPC National Congress, China has made continuous leaps in economic strength, all-around progress in people's living standards, and gradual improvements in the distribution of residents' income. Despite disparities, gaps in residents' income between urban and rural areas, among different regions, and among different groups are narrowing in general.

First, the income gap between urban and rural residents has continued to narrow. As a result of poverty alleviation, as well as further agricultural and rural reform and development, the income of rural residents has grown significantly faster than that of urban residents and the income gap between them has continued to shrink. In terms of income growth, the per capita disposable income of rural residents grew at an average annual rate of 10.6% in nominal terms from 2011 to 2020, 1.8 percentage points faster than that of urban residents. In terms of the income ratio of urban and rural residents, their per capita disposable income ratio had dropped year by year from 2.99 in 2010 to 2.56 in 2020, a cumulative decrease of 0.43. The figure went down by 0.08 in 2020 compared with the previous year, the fastest decline since the 18th CPC National Congress.

Second, income disparities between regions have been reduced year-by-year. With the implementation of the coordinated regional development strategy and other new regional strategies, the income gap has been narrowed along with and because of a reduction in the development disparity between regions. Between 2011 and 2020, disparities in per capita disposable income between the richest and poorest provincial-level regions were reduced year-by-year, with the ratio falling from 4.62 (of Shanghai to Tibet autonomous region) in 2011 to 3.55 (of Shanghai to Gansu province) in 2020, the lowest in the 21st century. In 2020, the eastern-western income ratio stood at 1.62, down 0.08 from 2013; the central-western income ratio stood at 1.07, down 0.03 from 2013; and the northeastern-western income ratio stood at 1.11, down 0.18 from 2013.

Third, the income gap between different groups has generally been narrowed. The Gini coefficient is commonly used to gauge measuring income inequality. The World Bank estimates the Gini coefficient by both disposable income and consumption expenditure. When estimated by disposable income, China's Gini coefficient showed a generally fluctuant decline over the last decade. In 2008, the Gini coefficient calculation for per capita disposable income of Chinese residents hit 0.491, the highest in years. Since 2009, it has displayed a downward trend and declined to 0.468 in 2020, down 0.023 from 2018. Meanwhile, income distribution has improved. During the 13th Five-Year Plan period, the per capita net transfer income of residents nationwide grew by 10.1% annually, faster than residents' income growth. Furthermore, according to the World Bank, China's Gini coefficient of consumption expenditure stood at 0.385 in 2016, 0.080 lower than the country's Gini coefficient of disposable income over the same period. Consumption data can better reflect the real living standards of Chinese residents.

Fourth, we have accelerated the realization of equal access to basic public services. The income of Chinese residents covers both household disposable income and public services offered by the government for improving people's lives. In the process of building a moderately prosperous society, all local authorities and government departments have taken active steps to promote equal access to basic public services. Noticeable progress has been made in improving the multi-tiered social security system. China has established the world's largest social security network. The country's basic medical insurance covers more than 1.35 billion people and its basic old-age insurance covers more than 1 billion people. The housing security and supply system has been steadily developed. China has built more than 80 million units of government-subsidized housing and housing for people displaced by urban transformation. It has also improved the housing conditions of more than 200 million poor people. Continuous progress has been made in ensuring equal access to education, and the quality of education has markedly improved. In 2020, the completion rate of nine-year compulsory education reached 95.2%. Basic medical and public health services have also been improved. In 2020, expenditure in the general public budget for health services reached 1.92 trillion yuan. People's work-based earnings, operative income and transfer income have also increased. Meanwhile, aside from household income, some other types of income have been offered through public services. In a country of socialism with Chinese characteristics like us, all government departments and local authorities have done tremendous work in this regard.

During the 14th Five-Year Plan period, we will further contain and narrow the gap between the rich and the poor. We should both make the cake bigger and share it fairly. We will focus on development as the top priority and increase the resident's income by developing the economy, working hard and creating jobs. Meanwhile, we will uphold the system in which distribution according to work is dominant, but support it with a variety of modes of distribution, so as to raise the proportion of labor remuneration. We will improve the mechanism of regular wage growth and strive to increase the income of low-income groups while expanding the size of the middle-income group. We will also improve distribution policies and systems based on production factors to increase the factor income of low-and-middle-income groups. We will develop a more rational wealth and income redistribution mechanism, making more intense and accurate adjustments to taxation, social security, and transfer payments. We will give play to tertiary distribution to support the development of charity. Meanwhile, we will build a basic system to arrange and coordinate the primary, secondary and tertiary distribution to promote social fairness and justice, and the well-rounded development of all. By doing so, we will make a steady stride on the way to realizing common prosperity for all.

You just mentioned taxation in particular, which has played an important role in income distribution. We should make sure taxation plays a fully leveraging role in primary, secondary and tertiary distribution. Thank you.  

Phoenix TV:

China completed its mission of eradicating absolute poverty by the end of 2020 as scheduled and built a moderately prosperous society in all respects this year. Next, China will promote common prosperity while pursuing high-quality development. What is the relationship between these three stages? Thank you.

Xu Lin:

Thank you for your question. Ensuring that the people enjoy happy lives is the ultimate goal of the CPC. Over the past century, generations of Chinese Communists have fought for this goal. The CPC united and led the people in making enormous efforts to eradicate absolute poverty, and achieve moderate prosperity and common prosperity. It reflects the unity of continuity and stage of socialist modernization, as well as the CPC's deepened understanding and sustained efforts to reduce income inequality. 

On one hand, the three stages of eradicating absolute poverty, and achieving moderate prosperity and common prosperity are interrelated and internally consistent. They conform to the trends of the times for peaceful development, and reflect the common aspirations of the people. They are unified with the cause of socialism with Chinese characteristics, the difficult exploration of socialist modernization and the Chinese Dream of national rejuvenation, which shows the strong desire of the Chinese people to pursue a happy life.

More specifically, first, the three stages all reflect the Party's fundamental purpose of wholeheartedly serving the people, the Party's original aspiration of bringing happiness to the Chinese people and national rejuvenation to the Chinese nation, and the Party's continued commitment to a people-centered approach and putting the people first. Second, they all reflect an essential requirement of socialism, which is promoting well-rounded human development, as well as fulfilling people's aspirations for a better life, focusing on balanced, coordinated and sustainable development, and are to be enjoyed by each and every one of the people. Third, in promoting the three stages, we should uphold the leadership of the CPC, forge ahead on the path of socialism with Chinese characteristics, and leverage the political advantages of the socialist system. In addition, in promoting the three stages, we should liberate and develop the productive forces on the basis of development and gather strength and work together. These are the shared aspects of the three stages.

On the other hand, the features of the three stages are emphasized differently. In terms of their contents, they are all different and constantly being enriched. The aim of eradicating absolute poverty is to solve the problem of poverty. Building a moderately prosperous society in the economic, political, cultural, social and eco-environmental fields promotes a happier life for the people. Common prosperity refers to wealth being shared by all, both in material and cultural terms, to realize well-rounded human and social development.

In terms of their goals, the three stages follow on from each other. Poverty alleviation is a key task and index in the realization of moderate prosperity. Only by eradicating absolute poverty can we ensure success in the goal of achieving a moderately prosperous society in all respects. A moderately prosperous society in all respects is an important foundation for realizing common prosperity. Only by building a moderately prosperous society in all respects can we lay a solid foundation for realizing common prosperity. Common prosperity is the goal of poverty alleviation and moderate prosperity. Only by promoting common prosperity can we truly consolidate the achievements of poverty alleviation and moderate prosperity, and highlight the advantages of socialism with Chinese characteristics.

As you mentioned in your question, China has achieved the First Centenary Goal of building a moderately prosperous society in all respects. However, the existing problems of imbalances and inadequacies in development mean there is still a long way to go. We will shore up points of weakness and consolidate the foundations to expand the achievements of poverty elimination with an emphasis on promoting rural vitalization. We will make substantive progress toward achieving well-rounded human development and common prosperity for all, while also pursuing high-quality development. Thank you.

Economic Daily:

In recent years, society has witnessed great changes in every aspect of people's lives. At the same time, we have noticed that people are still facing difficulties in housing, medical care, education, elderly care, and other areas. How do you see these problems, and how will you solve them? Thank you.

Zhao Chenxin:

I'll answer this question. Thanks for your question, which is a very important one. Our people are still facing some difficulties and having some appeals on several direct and practical areas. How should we see these problems, and how will we solve them?

The CPC has always placed ensuring and improving people's wellbeing as a top priority to achieving a moderately prosperous society in all respects and made constant efforts to solve prominent problems affecting the vital interests of the people. As a result, over 1.4 billion Chinese people have begun to live the happy lives that they have dreamed of for thousands of years. Their rights to subsistence and development have been effectively protected. Significant progress has been made in ensuring access to childcare, education, employment, housing, medical services, elderly care, and social assistance. However, ensuring and improving people's wellbeing has no end but only new starting points. We think that the difficulties you have mentioned in medical care, housing, education, and other areas are the pursuit of better doctors, better housing, better schools, and better lives. It is a question of whether the quality is good or not after the question of access has been properly solved, which relates to new worries in the new development stage of people's livelihoods. These problems show that after achieving a moderately prosperous society in all respects, the macro environment and internal conditions for improving people's wellbeing are facing new changes. People's needs for a better life have become more extensive since they have more and higher-level demands for steadily rising incomes, quality medical services, more equal education, and better living conditions. In the new development stage, we have to adapt to these new changes, adhere to a people-centered development philosophy and do our best to resolve pressing difficulties and problems that are of the greatest concern to the people, to resolve more prominent problems, and practically ensure people's livelihood. 

In the aspect of public services, during the next five years, we will actively adapt to people's desire for a better life and focus on public issues that are most pressing, most practical, and of greatest concern of people's livelihood. We will define the scope of basic and non-basic public services in a scientific and reasonable way, continuously promote the equalization of basic public services, and expand the multiple and inclusive supply of non-basic public services. We will also mobilize multifaceted forces at the levels of government, society, market, and the individual to strengthen weak links and improve quality in order to achieve the final goal of pursuing better access to childcare, education, employment, housing, medical services, elderly care, and social assistance.

Next, we will promote the building of a public service system in two areas. First, governments will provide equal access to basic public services. We will focus on ensuring people's basic living needs and fulfilling the duties of governments at all levels of basic public service supply. We will effectively increase input, continuously improve the standard system, optimize resource allocation efficiency, and advance equal access to basic public services. By doing these, all citizens are expected to get fair and roughly equal basic public services so that the bottom line of people's livelihood can be guaranteed. Second, we will make efforts to expand the multiple and inclusive supply of non-basic public services. Governments should fulfill their guiding responsibilities to encourage and support public institutions, social organizations, the state-owned economy, and multiple subjects to participate in non-basic public service supply, enrich the service supply, and effectively reduce service costs. We will gradually make non-basic public services available after paying – at affordable prices – with guaranteed quality and supervised safety to achieve a dynamic balance between supply and demand and ensure inclusive public services.

By distinguishing basic and non-basic public services, we can clear rights and liabilities, highlight key points, utilize limited financial funds in the most needed and pressing areas of people's livelihoods, and collect more social resources for public services. As a result, we can fully mobilize all positive factors to effectively tackle pains and difficulties and remove barriers to people's livelihoods and meet the people's ever-growing needs for a better life, improving people's livelihoods in line with economic development to create a better life together. Thank you.

Xinhua News Agency:

We often say that "Whether China has achieved prosperity will be judged by the conditions of the rural areas." After the victory in poverty alleviation, we will now comprehensively promote rural vitalization. How has progress been made over the years since the implementation of the rural vitalization strategy? In the next step, what are the considerations and arrangements for promoting the continuous increase in farmers' income and further narrowing the income gap between urban and rural residents?

Liu Huanxin:

Let me answer this question, and thank you for your attention to agriculture, rural areas, and farmers. The implementation of the rural vitalization strategy is a major deployment made by the 19th CPC National Congress, focusing on achieving two centenary goals. After nearly four years of hard work, the implementation of the rural vitalization strategy has made great headway. First, we have a bumper grain harvest for 17 years in a row, which remains above 650 billion kilograms for six consecutive years. This year, despite the impact of COVID-19 and natural disasters such as floods, both summer grains and early season rice have increased production, and autumn grain is on course for an increase in output, forming a solid foundation for securing the year-round grain harvest. Also, the production capacity of live pigs has been restored. The food supply for 1.4 billion Chinese people has been secured through our own efforts. Second, agricultural modernization has been significantly accelerated. China has built a total of 800 million mu of high-standard farmland, the contribution rate of agricultural science and technology progress exceeds 60%, the comprehensive mechanization rate of crop cultivation and harvest has reached 71%, and the application of fertilizers and pesticides has experienced negative growth for four consecutive years. The ratio of agricultural product processing output value to total agricultural output value has increased to 2.4:1. New industries and new business formats such as rural tourism and rural e-commerce keep booming. Third, the overall victory has been won in the fight against poverty. A total of 98.99 million rural poor people were all lifted out of poverty, which historically solved the problem of absolute rural poverty. This year, we have established a dynamic monitoring and assistance mechanism for preventing a return to poverty. We have provided precise assistance to more than 5 million people identified as prone to return to poverty, and we have been dynamically clearing this to zero. We will firmly hold the bottom line of preventing large-scale poverty return. Fourth, solid progress has been made in rural construction. Electric power, hardened roads, and 4G networks are basically connected to each village, and sanitary toilets are used by more than 68% of rural households, and a unified basic pension, basic medical, and critical illness insurance system for urban and rural residents has been established. This year we have formulated an implementation plan for rural construction actions and strive for new achievements in the development of rural area during the 14th Five-Year Plan period. Fifth, rural governance has been more efficient. The construction of rural grassroots Party organizations has been strengthened, a rural governance system that combines autonomy, the rule of law, and the rule of virtue is gradually established, governance methods such as point system, inventory system, and digital empowerment are innovated and developed in various places, and more outmoded and undesirable habits and customs are updated, and the cultivation of civilized rural customs was accelerated.

Through the implementation of the rural vitalization strategy, agriculture develops steadily, rural areas are harmonious and stable, and farmers are happy and healthy, which vividly reflects the quality of building a moderately prosperous society in all respects. But after completing building a moderately prosperous society in all respects, there are still problems of uneven and insufficient development, and agriculture and rural areas, in particular, remain weak links, shortcomings, and weaknesses. In recent years, the income of farmers has continued to grow relatively fast, and the income gap between urban and rural residents has continued to narrow. However, the gap in development between urban and rural areas is still large, and the task of promoting the common prosperity of rural areas and farmers is very arduous. At present and in the future, we will continue to promote farmers' income as the central task of implementing the rural vitalization strategy, continuously optimize policy provision, expand income-increasing channels, enlarge the proportion of middle-income rural groups of people, and increase the income of low-income rural groups, and promote farmers' income to a new level, so that hundreds of millions of farmers can catch up and will not be left behind on the road to common prosperity. There are four main ways to increase farmers' income:

First, increase income through industrial vitalization. Prosperity of the industries is a prerequisite for solving all problems in the countryside, and it is also a bedrock of increasing farmers' income. At present, farmers' net operating income accounts for about one third of farmers' income. We must give top priority to industrial vitalization when it comes to rural vitalization and increase farmers' income by promoting high-quality development of rural industries. Especially, more income will be generated by high-quality agricultural products, the industrial chain, and cost reduction.

Second, increase income by expanding employment. Wage income accounts for more than 40%, which is the bulk of farmers' income. On the one hand, we must create more local jobs to increase income, implement supportive policies in finance, banking, land use, and talents to foster innovation and entrepreneurship and bolster employment and income growth, thus enabling farmers to be employed and make money locally. On the other hand, we will encourage farmers to seek a job in cities to increase their income, strengthen vocational education and skills training for farmers, improve their technological and cultural quality, improve pro-employment policies, and do everything possible to ensure migrant workers have stable jobs.

Third, increase income by deepening reforms. There are still a lot of "sleeping" resources in rural areas. They are the biggest source of potential for increasing property income and they must be activated through reforms.

Fourth, increase income by improving policies. Increasing the transfer income of farmers is an important part of improving the redistribution adjustment mechanism. We must focus on two types of groups: the first type is small agricultural households. For them. we must improve the agricultural support and protection system, stabilize and strengthen farmers' grain subsidies, and distribute beneficial agricultural funds to farmers on time and in full. The other type is low-income farmers. For them, we must establish and improve a normalized assistance mechanism, weave a dense social security safety net, and maintain the bottom line of preventing large-scale returns to poverty. Thank you.

CNBC:

What are the shortcomings in the development of China's first-tier cities? For instance, in terms of old-age service and social security, what are the future development direction and the priority of first-tier cities? Thanks.

Ning Jizhe:

Let me answer this question. Since the reform and opening up, Beijing, Shanghai, Shenzhen, Guangzhou, and other first-tier cities and other mega cities have witnessed substantial economic growth, significant population growth, continuous expansion of opening up, and vigorous development of social undertakings. They have become an important engine for China's economic growth, an important hub for opening up, and the important support for state governance. They have also increasingly become an important space carrier for people to live and work in peace and happiness to enjoy a better life. Meanwhile, these megacities also have "urban diseases" that are common in countries around the world, such as traffic congestion, high housing prices, and limited development. These are all problems in development, difficulties in progress, and troubles in growth. As for old-age service and social security, the overall level of the first-tier cities is not bad. The average life expectancy of several first-tier cities is above 80 years old, ranking among the best in all kinds of cities. What needs to be improved is to control the costs and get better services. The country's outline of the 14th Five-Year Plan 2021-2025 has made the planning and deployment to improve the spatial layout of urbanization and optimize and upgrade the functions of the central urban areas in megacities. The main aspects are as follows.

First, we will promote high-quality and sustainable development of megacities. 

We will make overall plans to take into account the diverse needs of economy, livelihoods, ecology, and security, promote the transformation of development and construction methods of megacities, and strengthen the prevention and control of urban governance risks. We adhere to the principle of building cities with a people-centered approach, deeply grasp the law of urban development, and coordinate the development and the safety. We will effectively promote the transformation of urban development mode from scale expansion to connotation enhancement, paying more attention to people's livelihoods, steadily improving the level of social security, and upgrading the modernization level of urban governance. With these methods, we will make cities healthier, safer, and more livable. At the same time, we will further strengthen the leading roles of megacities, constantly optimize the spatial pattern of economic development and achieve coordinated regional development to better drive rural revitalization and promote the integrated development of urban and rural areas.

Second, we will reasonably reduce the development intensity and population density of megacities. To scientifically plan the urban production, living and ecological space, we will decrease the functions and the related facilities as general manufacturing, regional logistics bases and specified markets in the central urban areas with an orderly manner, avoid excessive concentration of public resources, and strengthen risk prevention and control in urban governance. For example, based on the functional orientation of the national political center, cultural center, international exchange center, and scientific and technological innovation center, Beijing will build a harmonious, livable and beautiful capital. At the same time, focusing on the relief of non-capital functions, we will promote the coordinated development of Beijing-Tianjin-Hebei region to a higher level. The air quality monitoring and joint prevention and control in Beijing-Tianjin-Hebei region and its surrounding areas will be strengthened, and Beijing's advantages in scientific and technological innovation will be given play to drive the transformation and upgrading of traditional industries in Tianjin and Hebei, so as to enhance its driving role in the surrounding areas.

Third, we will optimize and enhance the core competitiveness of megacities. 

We will enhance the roles of megacities in global resource allocation, in driving scientific and technological innovation, and in leading the development of high-end industries, ensure that megacities take the lead in forming an industrial structure with modern service industry as the mainstay and advanced manufacturing as the prop, and enhance their overall capacity and international competitiveness. For example, Shanghai will enhance its overall urban capacity and core competitiveness to play a leading role in the Yangtze River Delta. Led by the "four functions" in global resource allocation, in driving scientific and technological innovation, in leading the development of high-end industries, and in developing the area as an opening hub, and by continuously promoting its roles as the "five centers" in areas of international economy, finance, trade, shipping and scientific and technological innovation, Shanghai will provide services for the Yangtze River Delta's high-quality development and participation in international competition, and lead the integrated development of the Delta. For another example, Shenzhen will take the construction of a pioneering demonstration zone of socialism with Chinese characteristics as the lead to build a comprehensive national science center and accelerate the promotion of major cooperation platforms between Guangdong and Hong Kong in Qianhai and Hetao. Shenzhen will also take the lead in practicing the connection of rules and mechanisms in the Guangdong-Hong Kong-Macao Greater Bay Area, give full play to its role as the core engine in the construction of the Greater Bay Area, and facilitate and drive the development of its surrounding areas. Guangzhou will also play an important role in the construction of the Greater Bay Area, including improving the Guangzhou-Shenzhen-Hong Kong and Guangzhou-Zhuhai-Macao science and technology innovation corridors. Thank you.

People's Daily:

Over the years, we have witnessed material progress as well as great changes to our cultural activities. What's your view on that? Next, what policies and measures will China adopt to meet the growing cultural needs of the people and what will be done to enrich their cultural activities? Thank you.

Xu Lin:

Let me take your questions. As for moderate prosperity in China, material progress should go hand in hand with advances in culture and ethics. The people should have sufficient food and other daily needs, but they should also conduct themselves with dignity and a strong sense of morality. In the process of realizing a moderately prosperous society in all respects, the Chinese people have made both material and cultural progress.

Changes in cultural activities can be seen in all-round cultural prosperity, the rapid development of cultural industry, as well as people engaging in more diversified and active cultural activities.

First, cultural products continued to be enriched. Excellent books, radio programs, films, television programs, literature and art works, and works in philosophy and social sciences have continued to emerge and meet the multi-level and diverse cultural needs of the people. Literature and art production has seen great progress. Book publishing has strengthened the supply of high-quality content, with more and more quality books published. Now, a reading campaign is carried out nationwide. At present, the reading rate of Chinese adults stands at 81.3%. In recent years, Chinese films have also developed rapidly. The number of cinema screens in China has reached 80,000, ranking first in the world. With a quality growth in film production, popular blockbuster hits such as "My People, My Country," "The Sacrifice," "The Pioneer," and "The Wandering Earth" have continued to emerge. The box-office number increased year-by-year, surpassing 60 billion yuan for the first time in 2018, and reaching more than 64.2 billion yuan in 2019, ranking second in the world. Despite that global box-office decline amid the COVID-19 pandemic over the past two years, China's box office number topped the world last year, exceeding 20.4 billion yuan, and continued to rank first globally in the first eight months of this year, reaching 32.8 billion yuan. All these reflect cultural changes in China.

Second, public cultural services are more standardized and equally accessible, with a six-tier network of public cultural facilities being built across urban and rural areas. By the end of 2020, China had over 3,200 public libraries, 5,700 museums, 600 art galleries, 3,300 cultural centers, 32,000 township and town-level cultural stations, and more than 575,000 village-level cultural service centers. Most of our public libraries, museums and art galleries are open to the public free of charge or at a low cost. More high-standard cultural facilities are under construction.

Third, the cultural and tourism industries are now more integrated. Money and time are important for traveling. Now, more and more people have sufficient time and money to go on a trip at any time, explore their dreams away from the hustle and bustle of daily life, and enjoy China's beautiful landscape. In 2019, China welcomed over six billion domestic tourists, and grossed 5.7 trillion yuan from this sector.

Cultural changes are also reflected in that China's continued growth and cultural development have enhanced the inner strength of the Chinese people, and profoundly changed their spiritual outlook from being oppressed 100 years ago to being treated equally in the world today. The Chinese people has more confidence in the path, theory, system and culture of Chinese socialism. The spirit of patriotism, reform, innovation and hard work in the new era are taking root. Good traditions in Chinese culture, including filial piety, keeping a diligent and friendly attitude, helping those in difficulties or danger, upholding morality while advocating good deeds, and acting bravely for a just cause, have been promoted, filling society with uplifting energy.

Today, the Chinese people are more open-minded and have gained deeper understanding of innovation, rules, and markets. The nation is turning towards a thrifty, green, low-carbon, and healthy lifestyle. Facing difficulties and challenges in development, the Chinese people have overcome difficulties with a strong will and hard work. They have truly created a miracle in the world.

China has built a moderately prosperous society in all respects and is making solid progress towards the goal of common prosperity. The people have more expectations and better requirements for cultural life. Common prosperity is both material and cultural. We will stick to a people-centered development philosophy, focus on the problem of unbalanced and inadequate development in the cultural field, and strive to make efforts on three aspects: inclusiveness, diversity and quality, so as to enhance the people's sense of cultural acquisition and happiness.

Inclusiveness means to pay attention to balance and equality, continue to improve the public cultural service system, strengthen the construction of cultural infrastructure, strive to eliminate the gap between urban and rural areas and regions, better protect people's basic cultural rights, and let more people participate in cultural creation and enjoy cultural nourishment. Diversity refers to the enhancement of cultural supply capacity and the enrichment of cultural products in accordance with people's cultural needs in various aspects, such as seeking knowledge, beauty and happiness, and the individualized, differentiated, diversified and multi-level cultural needs of different individuals and groups. Quality means that we must strive to create masterpieces that are of high quality, with good taste, and close to life. The works must appeal to people and lead the times. They must convey truth, goodness and beauty, and spread positive energy. People will thus enjoy a richer and higher quality cultural life. Thank you.

NTV:

The accelerated risks of fewer children and an aging population in China may have an impact on China's future economic development. Under such circumstances, can China continue to maintain a moderately prosperous society in all respects? Thank you.

Ning Jizhe:

I will answer this question. Thank you. Since the beginning of the century, changes have taken place in the structure and number of China's population. The seventh national census in 2020 has comprehensively investigated the number, structure and distribution of China's population, and this result has been published. Although the growth rate of China's total population has slowed down, the total fertility rate has declined, and the degree of aging has deepened, on the whole, the demographic dividends still exist. We also now have a talent dividend, and the health of Chinese people has been continuously improved. With the gradual improvement of the population policy, China will maintain long-term momentum in economic growth. Human resources will provide a solid guarantee for building a modern socialist country on the basis of building a moderately prosperous society in all respects .

First, labor resources are still abundant and demographic dividends continue to exist. China is still the most populous country in the world. The total population is still growing, and the total working-age population is still huge. China's working-age population, aged 16-59, has reached 880 million, and there are more than 300 million women of childbearing age, which can maintain a birth population of more than 10 million every year. In 2020, the total number of migrant workers in China reached 286 million. The dividends generated by population growth still exist, and labor resources are still abundant, which will provide population support for sustainable economic development. 

Second, the quality of the population has significantly improved, and new advantages of talent dividends have gradually emerged. Over the past decade, the education level of China's population has significantly improved. In 2020, the average number of years of education of China's working-age population aged 16-59 reached 10.75 years, an increase of 1.08 years compared with 9.67 years in 2010. In the past decade, education has made great progress, with 208 million people now having a college education or above, accounting for 23.61% of the working-age population, a sharp increase of 11.27 percentage points over 2010. The proportion increased by more than 10 percentage points, nearly doubling. This will help accelerate the transformation of China's economic development mode, optimize and upgrade the industrial structure, and continuously improve the total factor productivity, thus providing new talent support for high-quality economic development.

Third, people's health has improved significantly, and conditions for labor resources have been optimized. Health is important for both well-being and productivity. With the reform and development of medical and health services, the physical quality of Chinese people has improved significantly. China's life expectancy reached 77.3 years in 2019, an increase of 2.47 years over 2010, which is a significant increase. The physical condition of middle-aged and elderly people has improved generally. Although many people have reached old age, their physical condition is still quite good. The infant mortality rate and maternal mortality rate also dropped to 5.4 per 1,000 and 16.9 per 100,000 in 2020, respectively, with improvements in physical fitness at both ends of the spectrum. On the whole, the health level of Chinese residents is better than the average level of middle and high-income countries. The achievements in health care also provide effective labor support for sustainable economic development. Improved physical health is conducive to the functioning of labor resources.

Fourth, the number of children increased and their proportion as a part of the population rose. A new generation of labor resources is growing up. The number of births rebounded as a result of decisions and policy measures such as the "selective two-child" policy and the "universal two-child" policy. Data from the Seventh National Population Census show that the number of children aged 0-14 increased by 30.92 million compared to 2010, and their proportion rose by 1.35 percentage points. The birth rate of second child saw a significant increase, and the proportion of babies born as a second child rose from about 30% in 2013 to about 50% in 2017. This year, the implementation of three-child policy and supportive measures will be conducive to the growth of the birthrate and the improvement of age composition, to achieve long-term and balanced demographic development. Thank you. 

The Paper.cn:

A moderately prosperous society means there will be more active consumption activities created with higher level and quality. Under the current economic conditions, how will the government ensure the steady growth of consumption, and how will they promote the upgrading of consumption? Thank you.

Zhao Chenxin: 

I will answer your question, thank you. It's a very good question. You all have a keen interest in consumption. Over the years, China's consumption has been scaled up in a steady manner and there has also been an improvement in the consumption structure. More business forms are thriving and we are continuing to optimize the consumption environment, to meet people's diversified and multi-tiered needs for consumption. In 2019, the per capita consumption expenditure of residents exceeded 20,000 yuan for the first time. Service consumption expenditure took up 45.9% of the per capita household consumption expenditure, nearly half of the total, 4.8 percentage points higher than that of 2015. Consumption drove GDP growth up by 3.5 percentage points, being the primary driving force of China's GDP growth for the 6th consecutive year in 2019. After the COVID-19 outbreak, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all departments and local governments followed the general principles of pursuing stable performance and making new progress, coordinating epidemic control with socio-economic development. China's economy continues to show its resilience, and consumer demand has maintained a steady recovery. In the future, as China accelerates towards a new development paradigm, expands domestic demand and moves towards common prosperity, with the middle-income group expanding and new products, business forms and models emerging in consumption sector, I believe that China will continue to expand its consumption sector, and will not slow down its steps to boost consumption upgrading. The overall trend for meeting people's needs for a better life and unleashing consumers' willingness will not be altered.

Going forward, on the basis of strict epidemic control measures, we will stick to the strategy of expanding domestic demand, and coordinate supply-side structural reform and demand-side management. We will take targeted measures to tap into the household consumption potential, expand the scale of consumption and improve quality. We will carry out works in five aspects to boost and upgrade consumption, which are as follows:

First, we will work to enhance residents' abilities and willingness to consume. In accordance with routine epidemic control measures, we will improve the system to ensure daily life supplies, and roll out relevant polices and measures. We will take measures to both increase people's income and ease their burdens. We will work to build an innovative system that facilitates a virtuous cycle through the whole process of employment, the distribution of income and consumption so as to improve people's willingness and abilities to consume in a steady manner.

Second, we will work to provide better services and products. The expansion of consumption will be aligned with the goal of improving people's livelihoods. We will push forward the building of a supply system for high-quality consumption, and encourage enterprises to provide high-quality products and services at relatively low prices. We will make full use of various platforms to boost consumption, continue to carry out a series of consumption campaigns and leverage their roles in promoting consumption, such as "China Brand Day," National Consumption Promotion Month and the Brand and Quality Online Shopping Festival, among others. In addition, we will continue to convene China International Import Expo, the China International Consumer Products Expo and more, to pool together high-quality consumption resources at home and abroad to better meet the individual, diversified and medium- and high-end consumption needs of the Chinese people.

Third, we will work to unleash new driving forces for consumption. We will cultivate new types of consumption, stay attuned to the trend of consumption upgrading, and encourage the growth of new models and forms of consumption. We will promote the integrated development of online and offline consumption, and nurture a group of demonstrative cities and leading companies in promoting new types of consumption. We will ramp up efforts to promote green consumption, therefore leading to a green production. We will advocate green and low-carbon consumption and build a green consumption pattern. Efforts will be made to improve people's willingness to purchase green and low-carbon products and services.

Fourth, we will work to expand rural consumption. We will step up efforts to increase access to e-commerce and delivery services in rural areas, and push forward the modernization of circulation of agricultural products. Efforts will be made to improve the three-tiered e-commerce service system at the village, township and county levels, and the delivery logistics system as well. There will be an improvement in rural residents' willingness to consume when infrastructure is improved. We will work to improve services to facilitate people's life in rural areas. Efforts will be made to seek the digital and industrial development of agricultural products and services and make their development more brand-development focused and procedure-based. We will promote the transformation with regard to these aspects.

Fifth, we will work to optimize the environment for consumption, which is also a very important issue. We will strengthen the building of a consumer credit system and quality standard system. We will improve the mechanism on protecting consumers' rights and settling disputes in the consumption sector. We will carry out in-depth regulation on market orders and strengthen regulation on the quality and safety of consumer goods. We will ensure a consumption environment that is safe, credible and trustworthy. 

That is my answer for your question. Thank you.

China Daily:

As the world's second-largest economy, China is one of the major drivers of global economy. Last year, China was the only major economy in the world to register positive economic growth. Today, when and if the world economy will rebound remains unclear. Against this backdrop, what does it mean for the world that China has built a moderately prosperous society in all respect? What new development opportunities will it bring to the world economy? 

Ning Jizhe:

I will take these questions. China has achieved moderate prosperity in all respects, which means as the world's most populated country and the largest developing country, China's economy is strong and the people's well-being has been improved. That in itself is a significant contribution to the world's peace and development. Meanwhile, achieving moderate prosperity in all respects in China has not only fueled and provided opportunities to the world's economic resurgence, but also contributed Chinese wisdom and strength to the building of a community with a shared future for mankind. China's development needs the world, and the world's development also needs China. 

First, China's realization of moderate prosperity in all respects has made an impressive contribution to global poverty alleviation. As Mr. Xu introduced just now, since reform and opening up, 770 million poor rural people have been lifted out of poverty, accounting for over 70% of the world total during the same period. In 2020, the problem of extreme poverty in the country has also ended. China realized its poverty reduction goal from the UN 2030 Agenda for Sustainable Development 10 years ahead of schedule. More than 1.4 billion Chinese people have started a new journey toward fully building a modern socialist country, which will be an unprecedented transformation and also a monumental event in human history. In recent years, the number of people living in poverty around the world has not fallen but increased, and the global cause of poverty reduction fell on hard times. Against this background, China's achievement has dramatically reduced the number of poor people in the world, giving confidence and power to the global cause of poverty reduction.  

Second, China completion in building a moderately prosperous society in all respects has fueled economic growth and recovery all over the world. China had made the biggest contributions to global economic growth for 15 years straight starting from 2006, and its average contribution rate exceeded 30% for many years, which enables the country to be the major driver for global economic growth. In 2020, with its GDP exceeding 100 trillion yuan, China overcame the influence of the COVID-19 and became the only major power to deliver positive growth. In the first half of this year, China's economy increased by 12.7% year-on-year, which makes the country not only the major driver for global economic and trade recovery, but also allows it to play a positive role in stabilizing the global supply system. Over the past year or so, China has supplied hundreds of billions of masks, and hundreds of millions of vaccine doses to the world, supporting the fighting against the epidemic in various countries. 

Third, China's realization of moderate prosperity in all respects has brought great opportunities for the economic development of the entire world. At present, China is the second largest consumer market and largest goods trading power in the world, leading the world in terms of foreign capital utilization and outbound investment. Now that China is accelerating the fostering of a double development dynamic, with the domestic economy and international engagement reinforce each other, and the former as the mainstay, China is bursting out potentiality in the market and opening its door wider and wider. This is presenting the world with a broader market, greater cooperative opportunities and larger space to grow. By our estimation, over the next five years, China will import goods of more than $10 trillion and make direct investment worth of over $550 billion to other countries and regions, which will greatly bolster the global economic stabilization, recovery and continuous development.  

Finally, China's realization of moderate prosperity in all respects has opened up new ways for developing countries' pursuit of modernization. After more than seven decades of construction and development including over four decades of reform and opening up, China has achieved a tremendous transformation by raising the living standards of its people from bare subsistence to general prosperity. We have gone from a poor and backward country to the world's second largest economic power. We have gone from standing upright to becoming prosperous and growing in strength. In this process, we created the twin miracles of fast economic growth and long-running social stability, which do not only bring concrete benefits to the Chinese people, but also improve the state of the world. Since 2019, China's per capita GDP has exceeded by $10,000, which means almost 3 billion people in the world now enjoy per capita GDP exceeding $10,000 because of the 1.4 billion Chinese people joining and doubling the number. This is undoubtedly an enormous boon for the development of human society. The vivid practice of China's building a moderately prosperous society in all respects presents various countries and nations which would like to speed up development and remain independent with a brand-new choice. Thanks.

Chen Wenjun:

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

Translated and edited by Zhang Liying, Wang Qian, Gong Yingchun, Yang Xi, Zhang Jiaqi, Wang Yiming, Li Xiao, Zhang Rui, Wang Mengru, He Shan, Zhou Jing, Wang Zhiyong, Duan Yaying, Liu Sitong, Xiang Bin, Chen Xia, Cui Can, Huang Shan, Wang Yanfang, Li Huiru, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Li Xiaojun, director and second-level inspector of the Publicity Department of the Bureau of Human Rights Affairs of the State Council Information Office (SCIO) 

Li Xiaomei, special representative for human rights of the Ministry of Foreign Affairs

Bie Tao, director general of the Department of Laws, Regulations and Standards in the Ministry of Ecology and Environment

Chang Jian, professor and director of the Research Center for Human Rights of Nankai University 

Chairperson:

Xing Huina, deputy head of the Press Bureau of the SCIO and spokesperson of the SCIO

Date:

Sept. 14, 2021

Xing Huina:

Friends from the media, good afternoon. Welcome to today's briefing held by the State Council Information Office (SCIO), which will expound on the Human Rights Action Plan of China (2021-2025). The speakers at today's briefing are Mr. Li Xiaojun, director and second-level inspector of the Publicity Department of the Bureau of Human Rights Affairs of the SCIO; Ms. Li Xiaomei, special representative for human rights of the Ministry of Foreign Affairs; Mr. Bie Tao, director general of the Department of Laws, Regulations and Standards in the Ministry of Ecology and Environment; and Chang Jian, professor and director of the Research Center for Human Rights of Nankai University. The speakers will first give you a brief rundown and then take your questions. First, I will give the floor to Mr. Li Xiaojun. 

Li Xiaojun:

Friends from the media, good afternoon. The realization of all-round moderate prosperity is an extraordinary human rights achievement that China has made and a new starting point on the country's quest for human rights. The National Human Rights Action Plan of China (2021-2025) is born of the times. It is a phased policy document for the Chinese government to implement the principle of "respecting and protecting human rights" from the Constitution of the Communist Party of China (CPC) and the Constitution, and to implement "promoting comprehensive progress in human rights" as proposed during the Fifth Plenum of the 19th CPC Central Committee. It is the first declaration and road map to respect and protect human rights on the new journey toward fully building a modern socialist country. This is the fourth national human rights action plan issued and implemented by the Chinese government.

This action plan highlights characteristics and favorable conditions of advancing the cause of human rights in China. It has four main features.

First, the formulation and implementation of the action plan is guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We have implemented General Secretary Xi's important expositions on human rights and stayed committed to a people-centered philosophy of development, believing that a happy life for the people is the most important human right. We defined new objectives and missions to meet new expectations in a new stage, working to resolve the most pressing difficulties and problems which are of great concern to the people. For example, in protecting the right to health, the plan proposes providing a complete range of health services to the people throughout their lifespan; it sets new targets and tasks to meet the people's ever-growing cultural needs after the realization of moderate prosperity; and it protects the right to education for ethnic minority groups and promotes standard spoken and written Chinese in ethnic minority areas while protecting their right to learn, use and develop their own spoken and written languages. 

Second, it reflects characteristics of the all-round development of China's human rights cause in the new era. Covering multiple areas, the action plan includes eight sections: introduction, economic, social and cultural rights, civil and political rights, environmental rights, protecting the rights of particular groups, education and research on human rights, participating in global human rights governance, and implementation, supervision and assessment. Nearly 200 objectives and tasks are proposed. Compared with the previous edition, the length of the fourth action plan has been greatly increased, and nearly 30 objectives and tasks have been added, of which indicators with obligatory objectives account for approximately one third. The new action plan reflects China's characteristics, favorable conditions and confidence in human rights theories, systems for respecting and protecting human rights, the human rights development path, and human rights culture.

Third, it highlights the eco-environmental rights. Protection of the ecology and environment is an important part of Xi Jinping Thought on Ecological Civilization and an integral part of building China into a modern socialist country. People's demands for a beautiful environment are growing, and the international community is also very concerned about that. This action plan sets out a separate section on "environmental rights," which was included in the "economic, social and cultural rights" section in the previous three action plans.

Fourth, the action plan is easy to implement. The action plan has put forward different targets and tasks for different categories of human rights. There are both qualitative and quantitative indicators, both binding and non-binding ones, and both periodic and long-term ones. It focuses on the continuity and operability of implementation. For example, there are long-term targets such as connecting poverty alleviation with rural vitalization; continuously upgrading reading services; promoting on-campus education, specialized research, and training on human rights as well as public understanding of human rights. The action plan also sets the tasks of establishing three more national human rights education and training bases and launching three new national research bases for human rights.

China's human rights action plan has set a new and good example globally. Although more than 60 countries around the world have formulated national human rights action plans, only China, Indonesia, and Mexico have made such action plans for four consecutive terms. Countries such as the U.S., Canada, France, Germany, and Japan haven't formulated any national action plan on human rights yet. I hereby call on countries that engage in loud, empty talks on human rights to formulate their own national action plans based on international standards and make solid efforts to protect the human rights of their own people.

Looking forward, we believe that, with the efforts of the over 40 member parties of the action plan's joint meeting mechanism, the implementation work of all local governments, and the joint efforts of all sectors of society, the Human Rights Action Plan of China (2021-2025) will achieve the goal of "promoting comprehensive development of the human rights cause" and will become a highlight in China's new journey toward fully building a modern socialist country. Thank you.

Xing Huina:

Thank you, Mr. Li Xiaojun. Next, I'll give the floor to Ms. Li Xiaomei.

Li Xiaomei:

Friends from the media, good afternoon. It is a great honor to participate in this briefing on behalf of the Ministry of Foreign Affairs. 

Based on the newly issued human rights action plan, in the next five years, China will open a new chapter in international exchanges and cooperation on the human rights cause.

First, China will earnestly fulfill its international human rights obligations. China attaches great importance to the role international human rights instruments play in promoting and protecting human rights. China incorporates the principle of universality of human rights into its national conditions, continuously promotes economic and social development, improves the people's wellbeing, promotes social equity and justice, and strengthens legal protection for human rights. As the world's biggest developing country, the development of China's human rights cause itself is already the country's biggest contribution to the international human rights cause. China is willing to share its practices on human rights with the world. It will submit its performance reports concerning human rights treaties in a timely manner, participate in the relevant review process, join in constructive dialogue with human rights treaty bodies, and adopt and implement suggestions that are reasonable and feasible in the Chinese context.

Second, China will engage substantially in the work of the United Nations (UN) human rights bodies. China plans to campaign for 2024-2026 membership of the UN Human Rights Council (UNHRC). It advocates that UN human rights bodies uphold the principle of being impartial, objective, and non-selective, promote all kinds of human rights in an equal and systematic manner, explicitly oppose the politicalization of human rights issues and double standards, and continue to encourage the promotion of human rights through peace, development, cooperation, and equity. China will earnestly implement the proposals it accepted during the UNHRC's third round Universal Periodic Review for China and participate actively in the fourth round review. China will continue to recommend Chinese experts to apply for the posts of the Special Procedures of the UNHRC and advance efforts to address the imbalance in the geographical representation of experts of the special procedures.

Third, China will carry out constructive dialogue and cooperation in human rights. China is committed to engaging in human rights dialogue and consultations and promoting international human rights exchanges and cooperation on the basis of mutual respect, openness, inclusiveness, communication, and mutual learning. China will continue to host international and regional human rights forums and symposiums to enhance mutual understanding, exchanges, and mutual learning among different parties on the issue. China will also continue to cooperate with the UN's human rights mechanisms and encourage them to fulfill their duty in an objective and fair manner and to pay attention to the concerns of developing countries.

Fourth, China will participate substantially in global human rights governance. Promoting and protecting human rights is a shared cause of all countries. In this sense, global human rights governance requires the joint consultation of all countries, and the results of human rights development should be shared by all people around the world. China will continue to encourage all parties to adhere to the purposes and principles of the UN Charter and respect the rights of a country to independently choose its human rights development path that suits its national realities. China will continue to actively engage in creating rules and setting international agendas in the fields of human rights to advocate a fair, just, reasonable, and effective international human rights system.

Standing at the historic confluence period of the "Two Centenary Goals" and facing the world's profound changes unseen in a century, China will work to promote the comprehensive development of human rights, contribute its ideas and solutions to the human rights development around the world, advocate the shared human values of peace, development, fairness, justice, democracy and freedom, and promote the building of a community with a shared future for mankind, at a new historical point. Thank you.

Xing Huina:

Thank you, Ms. Li. Next, I'll give the floor to Mr. Bie Tao.

Bie Tao:

Friends from the press, good afternoon. The Human Rights Action Plan of China (2021-2025) is the fourth successive edition of its kind issued by the Chinese government. Environmental rights have been included in all four editions of the plan since the first edition was issued 12 years ago. Mr. Li Xiaojun just mentioned that the protection of environmental rights is an important feature of China's human rights protection.  

As for the relationship between human rights protection and environmental rights and interests, I would like to give some of my basic personal judgments for your reference from the perspective of environmental protection. First, the comprehensive protection of human rights includes the protection of the public's environmental rights. Second, effective protection of environmental rights is impossible without sound and law-based environmental governance. Third, China's legislation, administration and judicature have always attached importance to the protection of environmental rights and interests. Fourth, since the 18th CPC National Congress, many laws have been revised. We revised the Environmental Protection Law in 2014, and we have modified the Law on Atmospheric Pollution Prevention and Control, the Law on Water Pollution Prevention and Control and the Law on Solid Waste Pollution Prevention and Control in recent years. We have also revised the Law on Soil Pollution Prevention and Control, with the revision of the laws on noise pollution prevention and control and on nuclear safety, the formulation and revision of other relevant laws underway. It's fair to say that nowadays, China's legislation, law enforcement and judicial system have provided just, fair and effective protection. Areas of protection include: substantive environmental rights, like fresh air, clean drinking water and unpolluted soil; procedural environmental rights, such as the right to know, to participate and to supervise regarding the environment; preventive environmental rights, including environmental impact assessments for plans and public participation in hearings; remedial environmental rights, such as consultation, litigation and other procedural rules; the environmental rights of individual citizens concerning their personal interests; and the collective environmental rights of NGOs and other environmental social organizations.

Just now, Mr. Li Xiaojun mentioned the word "confidence", with which I quite agree. Today, we can say with confidence and pride that after nearly 50 years of efforts since the Declaration of the United Nations Conference on the Human Environment was adopted in 1972, China no longer lags behind any other countries in terms of the legal protection of environmental rights.

Regarding the legal safeguards for environmental human rights, China has effectively safeguarded the public's environmental rights by taking a series of actions including tackling climate change, controlling ecological deterioration and preventing and controlling environmental pollution. After 12 years of continuous endeavors, national human rights action plans have yielded remarkable results in environmental rights protection. This mainly includes improving the law-based governance on the ecological environment, ensuing the public's environmental rights and interests, solving livelihood-related environmental issues, enhancing the ecological environment quality, and effectively safeguarding public health. All of these have notably increased the public's sense of gain, happiness and security in the ecological environment, which constitutes a highlight in China's human rights protection.  

The new five-year Human Rights Action Plan (2021-2025) includes "environmental rights" as a separate chapter, right after the chapters of economic, social and cultural rights, as well as civil and political rights. At the same time, the regulations on environmental rights in the new action plan have also been expanded and enriched. We have reviewed previous action plans and found that the "one aspect, seven tasks" of environmental rights set out in the first edition in 2009 have been expanded to "six aspects, 18 tasks" in the latest fourth edition. You are welcome to glance over them. The contents of the new action plan are richer with more systematic and comprehensive deployments, and they play a pioneering and guiding role, which I think is of great practical significance.  

The new Human Rights Action Plan has not only modified its structure and chapters, but also updated its contents. The action plan demonstrates that the CPC Central Committee with Comrade Xi Jinping at its core holds that ecological conservation is of fundamental importance to the sustainable development of the Chinese nation, adheres to the people-centered development philosophy, vigorously promotes innovation in theory, practice and system involving ecological progress, and forms Xi Jinping Thought on Ecological Civilization. This thought serves as the fundamental basis for us to safeguard the public's environmental rights and interests.  

Now we are all studying Xi Jinping Thought on Ecological Civilization, especially those of us in environmental protection departments. I have learned that ecological protection work in the new era is closely related to environmental rights and interests, which, in my opinion, is mainly reflected in the following four aspects.

First, people's livelihoods. We say that the environment is the basis of people's livelihoods. Developing the economy is for people's well-being, and so is protecting the environment. We should not only create more material wealth to meet people's ever-growing needs for a better life, but also provide more high-quality ecological products to meet people's ever-growing needs for a beautiful ecological environment. In particular, we are exploring new methods for the environment and health to enhance each other and address prominent environmental problems that undermine people's health. The revised Environmental Protection Law makes protecting public health its purpose. Apart from the general principles, the law stipulates in its specific rules that the country should establish and improve the monitoring, investigation and risk assessment mechanism of the environment and health, carry out studies about the impacts of environmental quality on health, and prevent and control various environment-related diseases. The country has also formulated, published and adjusted the lists of toxic and harmful pollutants according to the latest risk assessments of their impacts to the environment and human health. 

Second, fairness. A good ecological environment is the fairest public product and provides inclusive wellbeing for the people. Therefore, we need to coordinate eco-environmental protection in rural and urban areas. We will take further actions to tackle atmospheric pollution in cities, such as PM2.5 intensity that has concerned many people. We will pay attention to resolving water pollution in river basins and regions, including odor pollution and black and fetid water bodies. We will also speed up to tackle pollution from non-point source and soil pollution that has affected people's living environment in rural areas. By doing these, equal access to basic public environmental services between urban and rural areas will be promoted, which embodies fairness in environment.

Third, openness or participation. Ecological civilization is a cause that all people participate in, work together for and benefit from. It requires us to turn the "Beautiful China" campaign into a voluntary action by all. Everyone should be a protector, builder, and beneficiary of the eco-environment, rather than a mere spectator, outsider, and critic. We will carry out public green actions and encourage the entire society to make more contributions to eco-environmental protection. This year, Chinese environmental protection authorities launched an activity with the theme of "Beautiful China: I'm a doer." And I'd like to ask you to follow its progress. China's Environmental Protection Law includes public participation as one of the basic principles in the general provisions. Its Chapter Five - Environmental Information Disclosure and Public Participation - stipulates the basic government responsibility on environmental protection, including disclosing environmental information to the public in a unified and scheduled manner. Every year, the State Council releases data from all government departments and compiles a communique on the environmental situation, as do all local governments. Environmental protection authorities and other relevant departments need to release public environmental information collected when they perform their functions, while enterprises are asked to disclose their environmental information affecting public rights, interests, and health. As economic entities, enterprises may discharge pollutants during operational activities, which may affect the public environment or cause hazards to public health. On these occasions, they have an obligation to disclose the type, quantity, concentration, and disposition of the pollutants. In particular, some listed companies, bond issuers, heavy-polluting units listed on the key supervision list, and enterprises punished for breaking the law must disclose their environmental information, including rectification plans. The current environmental protection inspection launched by the central government has fully disclosed environmental violations in typical cases and urged relevant polluters to make rectification plans to guarantee people's right to be informed, and to participate in and supervise environmental protection.

Construction units are also asked to disclose environmental information and solicit public opinions if the construction projects affect public health or the environment. The public has the right to participate in the supervision and decision-making of relevant projects in accordance with the law, as well as apply for formal hearings and investigations in some major projects according to the law. We encourage the public to report environmental violations and promise to protect their information, safeguard their legal rights and interests, and severely punish the retaliation against informants. One thing to note particularly is that besides the mechanisms ensuring the public to know, participate, and supervise, we are also exploring a public interest litigation system. The system allows environmental protection organizations, even if not directly victimized, to file public welfare lawsuits against illegal enterprises in people's courts, and request state organs to order law violators to stop encroachment and repair the affected eco-environment.

Fourth, global mindset, which I won't give a further explanation on.

Since the 18th CPC National Congress, the Ministry of Ecology and Environment has implemented General Secretary Xi Jinping's instructions such as "protecting the environment requires the best institutional arrangements and the strictest rule of law" and "tackling pollution according to law," and maintained a people-centered approach to protect the environment. First, we have achieved prominent progress on high-quality legislation of eco-environmental protection, which consolidated the legal guarantee of public environmental rights and interests. Second, we have improved the ecological and environmental standard system. Third, we have deepened the reform of the compensation system for ecological and environmental damage. It's natural for enterprises to pursue interests when doing business, but they shall be liable for repair and compensation in accordance with laws if they damage the public environment, natural resources, and eco-environment or harm the interests of others.

During the 14th Five-Year Plan period (2021-2025), China's ecological and environmental system will continue to earnestly study and implement Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law. We will meet the overall requirements of reducing pollution and carbon emissions, accelerate green and low-carbon development, further improve ecological and environmental quality, effectively protect public health, and safeguard the public's environmental rights and interests, thus contributing to building a beautiful China where humanity and nature harmoniously co-exist. Thank you.

Xing Huina:

Thank you, Mr. Bie. Now, let's give the floor to Mr. Chang Jian.

Chang Jian:

Good afternoon, everyone. This action plan is the fourth of its kind and is characterized by the combination of comprehensiveness and emphasis, inheritance and innovation, and consolidation and improvement. Based on my own research, I will briefly analyze the highlights of this action plan on the aspects of civil rights, political rights, the rights of particular groups, and human rights education and research.

On civil rights, the action plan stresses improving guarantees for the right to life in emergencies, implementing the principle of injuncting any (imminent) infringement of the right to dignity, punishing "soft violence" as a crime, improving the legal system protecting personal information, and facilitating the participation of migrant populations in elections.

On political rights, the action plan stresses developing whole-process people's democracy, expanding the space for citizens' independent participation and free development, and creating a more solid democratic and legal foundation for achieving the free, well-rounded and common development of all individuals.

On the rights of particular groups, the action plan stresses reinforcing the equal protection of their rights and interests, providing them with extra assistance, and introducing a mechanism to protect their rights in both their everyday work and on special occasions. It also states that for behaviors undermining the legitimate rights and interests of a number of unspecified women, the prosecuting bodies can make procuratorial suggestions or initiate public interest lawsuits; corporal punishment in any form is not allowed against minors, and efforts should be made to prevent and stop cyberbullying and school bullying; and care should be provided for incapacitated elderly and people with dementia at an advanced age, elderly-friendly homes should be built, intelligent services should be provided for the elderly, and work should be done to ensure all have an equal share in the fruits of development.

According to the plan, China will conduct extensive research, education and training in human rights, and build awareness in this field, and also create a social atmosphere of respecting and protecting human rights. The plan states that China will set up training centers for human rights teachers in normal universities on a trial basis, and carry out pilot programs to develop national human rights education and training bases in international education centers for human rights. China will support the establishment of national human rights institutions within the systems of social science academies and Party schools (academies of governance), explore methods to select outstanding agencies for training civil servants in human rights, and select model enterprises in human rights training. Thank you for your attention.

Xing Huina:

Thank you, Mr. Chang. As the four speakers have finished their introductions, the floor is now open for questions. Please identify your media outlet before asking your question.

China Central Television:

Are there any specific goals or plans for consolidating the fruits of poverty alleviation and achieving common prosperity? Thank you.

Li Xiaojun:

Consolidating the fruits of poverty alleviation, implementing the rural vitalization strategy and carrying out rural vitalization construction are the prerequisites for achieving common prosperity for all. In particular, China will further support the development of formerly impoverished areas by ensuring access to affordable and safe housing, clean water, safe and secure supplies of food, and convenient transport.

In terms of employment, we will secure stable jobs for people raised out of poverty. For example, subsidized jobs in rural areas will be put to better use through improved coordination. On education, the responsibility system will be improved to prevent school dropouts and increase the completion rate of compulsory education. Conditions of small village schools and boarding schools in towns and townships will also be improved. The policy of financial aid for students from impoverished families and the nutrition improvement plan for rural students receiving compulsory education will continue. On medical care, the Healthy China initiative will be fully implemented to provide a complete range of health services to people throughout their lives.

We will improve care for the elderly and children. For people facing financial difficulties, such as those living on subsistence allowances, those who are severely impoverished, those who fell into poverty and those who have serious disabilities, the government will cover part or all of their premiums in the basic pension scheme. The government will also provide better care for orphans and abandoned children, as well as care and rehabilitation services for people with disabilities.

China will improve financial aid and support for severely impoverished rural residents through higher-quality relief services.

Moreover, to meet the demands of farmers and herdsmen for quality of life and cultural activities, we will improve the network of cultural infrastructure in rural areas, and build more comprehensive cultural stations in townships, as well as comprehensive cultural service centers in rural communities. Thank you.

People's Daily:

As China's economy has moved to a stage of high-quality development, how will the action plan meet people's new pursuits for human rights.

Li Xiaojun:

This is a broad question. A happy life is the most important human right for the people. At its fifth plenary session, the 19th Central Committee of the Communist Party of China (CPC) stressed promoting the all-round development of the cause of human rights, which aims to ensure that all Chinese people can live a good life and to promote the free, well-rounded and common development of all individuals. Therefore, the action plan aims to resolve the pressing difficulties and problems which are of the greatest concern to the people, and ensure that they can enjoy better education, more stable jobs, more satisfactory incomes, more reliable social security, higher-levels of medical care, more comfortable living conditions, more practical democratic and political rights, as well as a better ecological environment. It is aimed at achieving common prosperity and meeting people's aspirations for a better life. The action plan guarantees the human rights of all people and provides special protection for particular groups such as ethnic minorities, women, children, people with disabilities, and the elderly. China not only engages in human rights affairs domestically, but is deeply involved in international human rights affairs, contributing to a better global human rights governance system that is fair, equitable, reasonable and inclusive, and a global community with a shared future. Thank you.

Red Star News:

The action plan dedicates a special section to environmental rights with rich content. According to the plan, China will improve the eco-environmental damage compensation system. Has there been any progress in this respect? Are there any problems standing in the way? And what are the plans for the future? Thank you.

Bie Tao:

I will answer this question. I have mentioned several judgments during the introduction. I would like to reiterate one of them: the comprehensive improvement on human rights requires the comprehensive improvement on environmental rights as well. For further expounding, any damage, infringement, or sabotage to the environment should be effectively restored, managed, and claimed for compensation in accordance with the law. A strict system of accountability must be well established. As such, your question coincidently involves aspects of environmental rights. 

As part of the efforts to address the issues of damage to both environment and public interests, the CPC Central Committee has launched the eco-environmental damage compensation reform. This reform started its trial implementation in seven cities at the beginning of 2016. After two years of practice, the pilot reform was expanded nationwide in 2018, including 31 provinces, autonomous regions, municipalities, and the Xinjiang Production and Construction Corps. The reform was officially implemented in 2020. I would like to take this opportunity to introduce the progress we have made since the trial implementation of the reform.

Over the past five years, all localities and departments have earnestly implemented the arrangement of the eco-environmental damage compensation reform made by the CPC Central Committee. Through our tireless efforts, an eco-environmental damage compensation institutional framework featuring clear lines of responsibility, smooth flow of procedures, standard technologies,  strong guarantees, compensation in place, and effective restoration has taken shape, achieving noticeable progress in promoting national and local legislative work, standardizing the rules of litigation, reinforcing technological and financial supports, carrying out cases in practice, and restoring the damaged ecological environment. We have completely achieved the phased reform goal, which manifested in the following four aspects.

First, we have made noticeable progress in the construction of legal systems. The Civil Code, which was adopted last year, has set up a special provision for punitive compensation for eco-environmental damage, including substantive and procedural rules. It has made it a clear requirement that state organs, including administrative organs and procuratorial organs or any legitimate social organizations, also known as environmental NGOs, are entitled to lodge claims for eco-environmental damages through negotiations or litigation. Adopting the results of the pilot reform into basic national law represented by the Civil Code is a substantive move to establish the legal status of an eco-environmental damage compensation system. At the same time, a series of special laws, such as the Water Pollution Prevention and Control Law, Soil Pollution Prevention and Control Law, and Law on the Prevention and Control of Environmental Pollution by Solid Wastes have made special provisions for eco-environmental damage compensation. Noticeably, the Yangtze River Protection Law, which was adopted last year, has introduced the eco-environmental damage compensation system as well. Other relevant laws on resources protection represented by the Forest Law have adopted this system as well. Moreover, many local legislatures have made provisions for eco-environmental damage compensation. As far as we know, a total of 19 provinces have rolled out local laws and regulations on eco-environmental damage compensation.

Secondly, the management system has been increasingly refined. The Ministry of Ecology and Environment, together with public security organs, procuratorial organs, people's courts, departments of justice, natural resources, agriculture, forestry and water resources, jointly issued the opinions on promoting the eco-environmental damage compensation system reform, which has helped to provide explicit guidance on the specific issues exposed during the pilot reform, including clue screening, compensation negotiation, and judicial confirmation of consultative agreement. China's Supreme People's Court has released provisions on handling cases of eco-environmental damage compensation, consultative agreement, and judicial confirmation. Working collectively with nine other departments, the Ministry of Finance has issued measures on management of compensation funds for ecological and environmental damage through consultation and litigation in a bid to standardize rules on the compensation payment, use, and supervision. At the same time, the Ministry of Ecology and Environment has conducted investigation and supervision over the assessment and consultative agreement of eco-environmental damages in major cases with nationwide impact, such as the Tengger Desert pollution case, the Muli coalfield pollution case, and so on. We have selected several representative cases and provided references for the rest of the country in a bid to promote the reforms across China.

Third, the technological system has been increasingly standardized. The eco-environmental damage compensation is highly technical, with quantitative assessment as its foundation. Only when the damages can be well quantified can we have access to negotiate, lodge complaints, demand restoration, or claim for compensation. Therefore, the Ministry of Ecology and Environment has rolled out an array of technical guidance covering nine aspects of recommended method of damage assessment, general principle, damage survey, and so on, providing compelling technical support for the pilot reform and the national trial implementation. Last December, under the joint efforts of the State Administration for Market Regulation and the Ministry of Ecology and Environment, a total of six national standards have been released, including the general principle of eco-environmental damage assessment, damage survey, virtual treatment cost laws on soil and groundwater, surface water and sediments, and water pollution and air pollution. A technical standard system for eco-environmental damage assessment has taken initial shape, basically covering all key steps and basic types of environmental factors involved in eco-environmental damage assessments.

Fourth, the reform practice of various regions has been vigorously promoted. All provinces, autonomous regions, municipalities and the Xinjiang Production and Construction Corps (XPCC) have formulated implementation plans at the provincial level. More than 380 prefecture-level cities across the country, including districts and counties of municipalities directly under the central government, have all issued implementation plans, confirming local reform goals, advancement paths, and the division of labor among departments. Local governments have also formulated 327 supporting documents based on specific issues such as consultation, investigation, appraisal and evaluation, and the management of compensation funds. All localities and departments are actively handling eco-environmental damage compensation cases, and organizing the timely restoration of damaged ecological environments. According to statistics, as of the end of last year, more than 4,300 cases of eco-environmental damage compensation were handled nationwide, involving more than 7.8 billion yuan. A large number of damaged soils, forest land, basic farmland, surface water, groundwater and solid waste have so far been treated, restored and cleaned up.

At present, the central government is also conducting inspections. Our analysis has concluded that there exist several basic problems. First, the progress of reform is uneven across various regions. Some provinces handle hundreds or even thousands of cases, while some provincial-level administrations only handle several or tens of cases. The difference is very large and too unbalanced. Second, the technical method system has yet to be improved. Our department has issued six standards, but they have not yet covered all aspects. Third, from the perspective of procedural law, the relevant legal provisions and management rules are still imperfect.

Next, we will further summarize the progress, problems and cause analysis of the pilot in accordance with the unified deployment of the central government on the reform of eco-environmental damage compensation, and propose solutions to deepen the reform of eco-environmental damage compensation. At the same time, we will actively work with the relevant departments of the central and state organs to focus on four areas of work. First, we will study and draft a unified normative document on eco-environmental damage compensation. The current basis of this work is still based on the reform plan, and the transition to normal implementation should require legal and regulatory documents. We must promote this reform onto the track of rule of law. Second, we will continue to increase the selection, evaluation, release, and recommendation guidance for major typical cases. Third, we will strengthen the basic research of eco-environmental damage identification and assessment, and unify technical specifications. Fourth, we will further strengthen coordination and cooperation among departments, form a joint effort among the departments, and promote the implementation of the reform of eco-environmental damage compensation for practical results. Thank you.

China Daily:

At the recently concluded Tokyo Paralympic Games, Chinese disabled athletes achieved excellent results, and people across the whole country are very proud of them. Can you please tell us about the new measures in the action plan regarding the protection of the rights and interests of people with disabilities? Thank you.

Li Xiaojun:

Let me answer this question. In 2019, the State Council Information Office published a white paper on the protection of the rights and interests of the disabled in China. This paper was called "Equality, Participation and Sharing: 70 Years of Protecting the Rights and Interests of Persons with Disabilities in the PRC." We compiled and wrote this white paper with deep feelings and respect for all the 85 million disabled people in China. We have participated in the writings of some white papers, but writing with such respect and having invested so much in emotions for the disabled, it was still a very prominent example.

People with disabilities are a valuable asset to our country, and General Secretary Xi Jinping has given special care and love to them. In 2014, he sent a congratulatory letter to the 30th anniversary of the founding of the China Foundation for Disabled Persons, proposing that the disabled are a group with special difficulties and need to be particularly cared for and paid attention to. In 2016, during his inspection tour in Tangshan city, Hebei province, he proposed the goal that not a single disabled person should be left behind while building a moderately prosperous society in all respects by 2020. In 2017, he proposed that China should further develop the cause of the disabled and promote the comprehensive development and common prosperity of the disabled. As China has built a moderately prosperous society in all respects, many of these important instructions and requirements have been implemented.

In recent years, China's work for people with disabilities has made great progress, and the value of causes that can have equal participation and sharing by people with disabilities has continued to increase. Chinese disabled athletes have achieved impressive results in the Tokyo's Summer Paralympics, and their tenacious fighting spirit and the spirit of winning glory for the country have inspired all of us. This also vividly shows that China has made important achievements in the protection of the human rights of people with disabilities. This new edition of the action plan puts forward specific goals and tasks in terms of equal participation of disabled persons, welfare guarantees, rehabilitation services, education, employment, barrier-free construction, and the production of assistive devices. For example, the number of newly employed disabled persons in cities and towns shall reach 500,000, rehabilitation universities shall be built, and 100 welfare facilities specifically for mental health shall be built. Thank you.

Hong Kong Economic Herald:

We have noticed that the action plan sets out the principle of "smart advancement." What measures has China taken in terms of personal information protection? Thank you.

Chang Jian:

I will answer this question. Indeed, in this action plan, specific responses have been made to the challenges of information rights, especially the protection of human rights in the digital age. We know that human beings are entering the digital age. Digital life has become a basic way and an important part of our life. A series of human rights protection needs are generated in the context of digitalization, including the equal use of digital technology without discrimination, freedom from various violations caused by the use of digital technology, freedom from the manipulation of digital technology on people, and the independent control of personal digital information and property.

On one hand, in view of the new demand for human rights protection in the digital age, the action plan puts forward a new principle of "smart advancement," that is, "tapping the potential of digital technology" to advance human rights progress. As we know, the previous action plans put forward five principles, namely, pushing forward the work in accordance with the law, in a pragmatic, coordinated and balanced way, and with joint efforts. This action plan adds another principle: smart advancement. With this principle, we intend to make full use of digital technology and expand the free and all-round development of every person. The plan makes clear specific measures and tasks, including smart medical care, smart services for the elderly, smart cities and digital villages, smart library systems, barrier free facility digitization, as well as intelligent upgrading, smart litigation services, internet government convenience services, online deliberation of state affairs, and the use of big data, cloud computing, artificial intelligence and other technical means to comprehensively collect and respond to people's opinions and suggestions in a timely manner.

On the other hand, in view of the new human rights issues arising in the digital era, the action plan includes a special section on the protection of personal information rights and interests, requiring the improvement of the legal system of personal information protection, the in-depth implementation of the supervision, law enforcement and publicity of personal information protection, and the safeguarding of cyber and data security. We will carry out in-depth supervision and enforce the law regarding personal information, and require that effective measures be taken to bridge the urban-rural digital divide, prevent the digital divide in online education, formulate employment security policies for online jobs, and crack down on a whole scope of crimes such as cyber bullying and stealing network data.

The National People's Congress passed the Data Security Law on June 10 this year and the Personal Information Protection Law of the People's Republic of China in August. Both clearly stipulate that no organization or individual is allowed to illegally collect, use, process or transmit other people's personal information, or illegally buy, sell, provide or disclose other people's personal information. China will also formulate and issue supporting laws, regulations, standards and judicial interpretations for the protection of personal information, and continue to improve the legal system for the protection of personal information. Thank you.

Phoenix TV:

How does China participate in global human rights cooperation? What new measures will be taken next to participate in global human rights cooperation? Thank you.

Li Xiaomei:

Thank you for your question. You may notice that in this issue of the action plan, there has been a change in the title of the section concerning international cooperation. As for the last issue of the action plan, the section was titled "Fulfillment of Obligations to Human Rights Conventions, and International Exchanges and Cooperation in the Field of Human Rights." We changed it to "Participating in Global Human Rights Governance" in the new issue. We put forward China's new goals and commitments in promoting domestic and international human rights progress from four aspects, namely fulfilling obligations to international human rights conventions, engaging substantially in the work of UN human rights bodies, joining in constructive dialogue and cooperation on human rights, and contributing to the international cause of human rights.

Here I want to stress that running our own affairs well is the best way for China to participate in global human rights governance. China has built a moderately prosperous society in all respects and historically solved the problem of absolute poverty. This is the largest human rights project and the best practice for human rights progress. It not only writes a new chapter in China's human rights progress, but is also an important milestone in the development of the world's human rights cause. While enriching and developing the diversity of human rights, the country contributed Chinese wisdom and Chinese solutions to solving human problems.

There are two things that China can be particularly proud of this year. One is that we achieved the poverty reduction targets in the 2030 Agenda for Sustainable Development 10 years ahead of schedule. The other is that we protected human rights in the process of fighting the epidemic from last year to this year, setting a good example for the world. These two points alone not only reflect the protection of human rights by the Party and the government, but also prove to the world that China has made huge efforts and achieved great success in implementing international human rights obligations and promoting and protecting the human rights of its people in combination with its own national conditions.

Against the backdrop of the combined forces of profound changes on a scale unseen in a century and the raging Covid-19 pandemic, the global human rights situation is facing severe challenges: the human rights deficit continues to expand, and the epidemic has impacted the human rights cause around the world, especially the right to health and development, which have been severely damaged. In this context, the voices for upholding multilateralism and improving global human rights governance have grown stronger. Developing countries have expected China to play a leading role. As I mentioned in the introduction, China has participated in four levels of human rights promotion, which can be said to be all-dimensional. In the process of participation, China's human rights concept has also been continuously accepted by the international community. The UN Human Rights Council opened its 48th regular session yesterday. In the UN Human Rights Council and the Third Committee of the UN General Assembly, China has put forward a series of propositions and proposals on human rights, which have received extensive support from developing countries and friendly countries.

In the next step, it is China's mission to promote the healthy development of the international human rights cause. The peace, development, fairness, justice, democracy, and freedom, are the common values of all mankind. Guided by Xi Jinping Thought on Diplomacy, we will continue to strengthen exchange and cooperation on human rights with all parties, jointly promote the healthy development of international human rights cause, and build a community with a shared future for mankind. Thank you.

CRI:

We have seen that since the 18th National Congress of the Communist Party of China (CPC), China has made positive progress in protecting citizens' environmental rights and promoting ecological environmental legislation. What are the plans for the next step? Thanks.

Bie Tao:

Thank you for your concern about the environmental rule of law, especially environmental legislation. Protecting citizens' environmental rights has always been one of the legislative goals and purposes of the highest organ of state power. Since the 18th CPC National Congress, the Ministry of Ecology and Environment has earnestly studied and implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Xi Jinping Thought on Ecological Civilization, and Xi Jinping Thought on the Rule of Law. In accordance with General Secretary Xi Jinping's important instructions on ‘preventing pollution in accordance with the laws,' we have made every effort to promote the establishment of an eco-environmental legal system. The legislative work on the eco-environment has been more vigorous than ever before, and richer fruits have been yielded. Thirteen laws have been formulated and revised, including the environmental protection law, the law on the prevention and control of atmospheric pollution, the law on soil pollution prevention and control, the law on nuclear safety, the law on prevention and control of environmental pollution by solid waste, and the Yangtze river conservation law, etc. Thirteen administrative regulations have also been formulated and revised, including the regulation on urban drainage and sewage treatment, regulations on the prevention and control of pollution caused by large-scale breeding of livestock and poultry, and the regulation on administration of pollutant discharge permits. Until now, ecological and environmental authorities have acted as the main law enforcement departments in 15 laws, accounting for about one-twentieth of the total number of laws currently in force. In addition, there have been more than 20 laws on resource development and utilization, more than 30 administrative laws and regulations on the ecological environment, and more than 40 intra-Party regulations closely related to ecological environment protection. Overall, the legal framework for ecological environment protection has basically taken shape, which provides laws to abide by in all areas of ecological and environmental protection.

Protecting citizens' environmental rights has always been an important part of China's environmental legislation. The Environmental Impact Assessment Law enacted in 2002 has clearly stated that if special plans may cause adverse environmental impacts and directly involve the public's environmental rights, demonstration meetings and hearings shall be held or other forms taken to solicit the opinions from related units, experts, and the public on the draft report on environmental impacts. A special chapter on 'information disclosure and public participation' was added to the revised Environmental Protection Law in 2014 which is clear that citizens, legal persons, and other organizations, have the right to obtain environmental information, participate in, and supervise environmental protection in accordance with the law.

Overall, in recent years, the environmental protection laws and regulations that we formulated and revised have contributed greatly to improving the supervision system, strengthening government responsibilities, imposing higher penalties for violations, and promoting public participation. Hence, some prominent problems have been resolved. Shortcomings in the system of environmental protection laws, however, remain a salient problem, such as gaps in some legislation related to fighting climate change, environment monitoring, and the management of dangerous chemicals. Moreover, there are overlapping supervisory mechanisms, and more efforts are required to punish violations, improve the legal system to restrain government behaviors, and enhance the legal system for the public supervision of environmental protection. Establishing a framework of environmental laws and regulations that meets the needs of modernizing China's system and capacity for governance is an arduous task.

During the 14th Five-Year Plan period (2021-2025), the Ministry of Ecology and Environment will continue to thoroughly implement Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law, and further enhance the legislative work on the eco-environment, so as to provide more comprehensive and effective legal protection for the country in its battle against pollution. We will focus on the following aspects:

First, we will strengthen legislature in key areas to integrate systems and fill gaps. China will improve its eco-environmental legal system in line with the goal of building a beautiful China. It will formulate and revise laws and regulations on Yellow River protection, noise pollution prevention and control, marine environmental protection, environmental impact evaluation, fighting climate change, and eco-environmental monitoring. We will push forward the construction of China's legal system in the area of ecological reform, and enhance legislative work in areas like eco-environmental damage compensation, nature reserves, ecological red lines and an environmental protection credit rating system, to ensure major reforms are implemented effectively and in accordance with the law.

Second, we will push forward research and discussions on the codification of environmental laws. According to its annual legislative agenda for 2021, China's top legislature will explore the possibility of initiating the codification of environmental laws, which meets the requirements of fully implementing Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law and supports the top-level design to improve environmental protection. The Ministry of Ecology and Environment will work with legislative bodies in fully promoting research and discussions on the codification of environmental laws, strengthening connections and coordination, and reducing overlap among different laws and regulations, so as to establish an eco-environmental protection law system featuring strict prevention at the sources of pollution, strict regulation of operations, and accountability for those responsible, and to modernize China's environmental protection system and capacity for governance.

Third, we will learn from the successful experience of legislation for protecting the eco-environment and step up efforts in four aspects. We will enforce the best institutional arrangements and implement the strictest rule of law to protect the eco-environment. We will establish a supervision system on eco-environment by taking a fact-based approach, abiding by the objective laws and based on national conditions. We will stick to the new development philosophy, so as to properly handle relations between eco-environmental protection and socioeconomic development, and win the fight against pollution. We will focus on improving the environment, and establish a legal system for improving the environment.

Fourth, we will strictly implement the instructions of General Secretary Xi Jinping on toughening punishments for ecological and environmental violations, further strengthen the punishment of illegal acts related to ecological and environmental protection, including those concerning administrative, criminal and civil liabilities. In particular, we should clearly identify the key targets for the crackdown, including the malicious act of illegally discharging pollutants, which damages the public's environmental rights and interests and threatens public health. Our theme today is human rights protection. Maliciously discharging waste disregards and damages the public's environmental rights and interests as well as public environmental health for the private gain of a small group. It is unfair, immoral, and of course illegal. From the perspective of human rights, such malicious acts harm the rights to subsistence and development, as well as health and personal rights. Therefore, malicious illegal acts are key targets of our crackdown efforts. In addition, the discharge of heavy metals, medical waste and industrial hazardous waste, which directly harms human health, soil, air and drinking water, has also been the focus of the crackdown. Furthermore, we will work with relevant departments, including the forestry and grassland departments, to strengthen the crackdown on the illegal hunting of wild animals, illegal fishing of aquatic creatures and other illegal activities, which are also key targets of the crackdown. After the Yangtze River Protection Law came into effect, the major measure of a 10-year fishing ban in key areas of the Yangtze River was taken with great determination. General Secretary Xi Jinping said that the Yangtze River had got sick. An important manifestation was that some parts had no fish left. As a result, the central authorities decided to ban fishing for 10 years. In particular, this move will involve finding other ways of making a living, proper resettlement and providing government subsidies for the hundreds of thousands of fishermen and their families who rely on the river to earn a living. In this case, both illegal fishing and illegal hunting are the key crackdown targets.

Recently, an event related to ecological and environmental protection has received widespread attention. A herd of elephants travelled hundreds, if not thousands of kilometers, to the southern part of Kunming city, the capital of Yunnan province. While attracting quite a lot attention, the wandering elephants were also effectively protected along the way. People opened up paths for them, helped them find their way, and provided food supplies along their journey. These behaviors were very heartwarming. Local governments, conservation volunteers and non-governmental organizations all played positive roles in this regard. The elephants recently returned to their natural habitat. This event has become a vivid example of China's biodiversity conservation efforts and represents an interesting side note for the 15th meeting of the Conference of the Parties to the UN Convention on Biological Diversity (COP15) which will soon kick off in Kunming. We are very proud of this achievement. These are China's legislative efforts and practices on biodiversity conservation, which will also become a focus of our work in the future. Thank you.

Xing Huina:

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

Translated and edited by Wang Yiming, Wang Qian, Zhu Bochen, Yuan Fang, Xu Xiaoxuan, Huang Shan, Lin Liyao, Chen Xia, Guo Yiming, Liu Qiang, Qin Qi, Yang Xi, Zhang Rui, Xiang Bin, Wang Wei, Yan Xiaoqing, Wang Yanfang, Ma Yujia, He Shan, Zhang Junmian, David Ball, Jay Birbeck, Tom Arnstein. 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:

Zhao Zeliang, vice minister of the Cyberspace Administration of China

Zhu Guoxian, member of the Standing Committee of the CPC Zhejiang Provincial Committee and director of the Publicity Department of the CPC Zhejiang Provincial Committee

Qi Li, secretary of the CPC Tongxiang Municipal Committee, Zhejiang province

Chairperson:

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

Date:

Sept. 10, 2021

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). The 2021 World Internet Conference Wuzhen Summit will soon kick off. Today, we are delighted to be joined by Mr. Zhao Zeliang, vice minister of the Cyberspace Administration of China (CAC); Mr. Zhu Guoxian, member of the Standing Committee of the Communist Party of China (CPC) Zhejiang Provincial Committee, and director of the Publicity Department of the CPC Zhejiang Provincial Committee; and Mr. Qi Li, secretary of the CPC Tongxiang Municipal Committee, Zhejiang province. They will first brief you on relevant information and then take your questions.

First, I'll give the floor to Mr. Zhao Zeliang.

Zhao Zeliang:

Ladies and gentlemen, friends from the media, the annual World Internet Conference (WIC) Wuzhen Summit will soon take place once again. Today, on behalf of the organizing committee, Mr. Zhu, Mr. Qi and I will brief you on the preparatory work for the summit.

The 2021 World Internet Conference Wuzhen Summit is jointly organized by the CAC and People's Government of Zhejiang province. The summit is scheduled to take place from Sept. 26 to 28 in Wuzhen, Zhejiang province, and the opening ceremony will be held on the morning of Sept. 26. Under the theme "Towards a New Era of Digital Civilization – Building a Community with a Shared Future in Cyberspace," the summit will be held both online and in-person. In addition to various activities taking place in the venues in Wuzhen, the event will also invite several key guests to participate online.

The world is undergoing profound changes unseen in a century, and the COVID-19 pandemic is wreaking havoc around the world. More than ever, humanity need to strengthen cooperation and join hands to move forward. The Chinese government has resumed hosting this global internet extravaganza in the form of the Wuzhen Summit and with its previous specification and scale, because it hopes that the conference can continue to give full play to its important role as "two platforms," namely a global platform for China to connect with the world, and a Chinese platform for the global internet to be shared and governed by all. The Chinese government also hopes to build in-depth communication with all countries and regions around the world and all parties of the internet to promote cooperation on digital technologies, optimize governance in digital ecosystem, and share in the benefits of the digital economy, so as to jointly build a community with a shared future in cyberspace and pool wisdom and strength for the development of human society. In accordance with the new characteristics of our time, this year's conference will have the following four highlights:

The conference this year will take a long-term perspective and discuss the future of civilization. "Building a Community with a Shared Future in Cyberspace" is the consistent theme of the World Internet Conference. The conference thoroughly implements General Secretary Xi Jinping's concepts and proposals of building a community with a shared future in cyberspace, grasps the developing trend of the integration of digital economy with economic and social development, and takes "Towards a New Era of Digital Civilization" as its theme this year. This not only reflects current trends, but is also of significance in both pace-setting and looking forward. During the conference, we will exchange ideas on this topic, both online and in-person, with nearly 2,000 representatives from domestic and foreign governments, international organizations, industry associations, internet companies in China and abroad, universities, think tanks and sci-tech research institutions, in a bid to offer insights for the building of a community with a shared future in cyberspace. As society is developing from industrial to digital civilization, the event also aims to envisage new forms of civilization for human society and jointly grasp new opportunities brought about by sci-tech revolution and development.

The conference this year will focus more on frontier sectors and reflect hot issues. The conference insists on reflecting frontier issues concerning the development and governance of the internet as well as the concerns of various parties. With regards to the topics of the sub-forums, a total of 20 sub-forums have been set up centered around hot issues regarding global cyberspace. In addition to traditional forums such as the Business Leaders Dialogue, the Belt and Road Forum for International Cooperation on Cyberspace, the International High-level Think Tank Forum on the Internet, and the Forum for International Norms in Cyberspace, this year's conference will also focus on 5G, artificial intelligence (AI), open source ecology, next-generation internet, data and algorithms as well as other new trends and hot issues in internet technologies, and select new topics accordingly. The conference will thoroughly address the concerns of various parties in China and abroad regarding data governance, the rule of law on the internet, the corporate social responsibilities of internet companies, online charity and digital efforts for poverty alleviation, as well as global anti-pandemic efforts and international communication, to name a few. In terms of the three major parts of the conference, the Release Ceremony for World Leading Internet Scientific and Technological Achievements will unveil 15 such achievements, demonstrating the new heights of the world's frontier internet technologies nowadays. The Light of Internet Expo has attracted some 300 Chinese and foreign companies who will proactively showcase the latest technologies and products concerning AI, big data, cyber security and so on. Meanwhile, the "Straight to Wuzhen" Global Internet Competition will continue to act as a competition for innovation and entrepreneurship, exploring new technologies, models and business forms of the development of internet.

The 2021 World Internet Conference will put more focus on opening up to expand its international influence. The organization of the conference always adheres to an international perspective, overcomes the adverse effects of the pandemic, and actively strengthens interaction and cooperation with embassies and consulates in China, well-known international organizations, international think tanks, and international conference organizations. It has invited the United Nations' Department of Economic and Social Affairs (DESA), the International Telecommunication Union (ITU), the World Intellectual Property Organization (WIPO) and the Global System for Mobile Communications Association (GSMA) to serve as co-organizers, and invited leaders from politics, enterprises, universities and research institutes of various countries to participate, and promotes many high-end dialogues and forum activities. The conference will also open a live video conference platform for the first time. Domestic and foreign guests will discuss global internet governance via online and offline platforms and share their experiences of global internet development.

The 2021 World Internet Conference will further strengthen its achievements and promote digital cooperation. The conference will hold "best practices in jointly building a community of shared future in cyberspace" case exhibition activities, comprehensively showing the best practices from network infrastructure construction, online cultural exchanges, network economic innovation and development, cybersecurity assurance, and cyberspace governance, and telling stories on international exchanges and cooperation in cyberspace. The activities will further enhance exchanges, build consensus, stimulate insights, strengthen cooperation, and provide a practicable path and strong impetus for all parties to jointly build a community of shared future in cyberspace.

Ladies and gentlemen, dear friends, the 2021 World Internet Conference will soon begin. On behalf of the organizing committee, Mr. Zhu, Mr. Qi and I, sincerely welcome all friends to participate in the conference, and strive to make this year's conference a colorful and influential event, and contribute to building a community with a shared future in cyberspace. Thank you.

Shou Xiaoli:

Thank you for your introduction, Mr. Zhao. I would like now to invite Mr. Zhu to make his introduction.

Zhu Guoxian:

Ladies and gentlemen, friends from the press, hello everyone. I am very happy to be here again at this familiar place, and meet new and old friends to introduce preparations for the 2021 World Internet Conference. As a journalist for the media, I participated in the conference on three occasions. Today as the director of the Publicity Department of the CPC Zhejiang Provincial Committee, I will brief you on the situation for the third time. On behalf of the CPC Zhejiang Provincial Committee and Zhejiang Provincial Government, I would like to sincerely invite everyone to meet again at Wuzhen in the golden autumn. I believe that the World Internet Conference will be more brilliant because of your presence, and will have more influence because of your wonderful reports. 

Just now, Mr. Zhao introduced the situation of the conference. As the host, Zhejiang will thoroughly implement the spirit of General Secretary Xi Jinping's important instructions, always uphold the concept of striving to improve on the previous session, and make good preparations to make the brand of the World Internet Conference brighter. We believe that the 2021 World Internet Conference will bring you special experiences, and provide you with materials and stories about Zhejiang in the era of digital civilization.

Zhejiang is a province where history and the future converge. This year marks the 100th anniversary of the founding of the CPC. One hundred years ago, the CPC was born on a tourist boat on Nanhu Lake in Jiaxing, not far from Wuzhen, thus initiating a century-long journey of fight and pursuit. Zhejiang is home to the revolutionary roots of the CPC. One hundred years later, in the historic year in which the CPC has fulfilled its first centenary goal and celebrates its 100th anniversary, General Secretary Xi Jinping and the CPC Central Committee have placed on Zhejiang the historical responsibility of pursuing high-quality development and constructing a demonstration zone for common prosperity, and given Zhejiang the glorious mission of exploring the path to realizing China's second centenary goal. At the historic crossroad of the two centenary goals, this year's World Internet Conference will be held in the land of Zhejiang and serve as a landmark on the new journey. Over the years, Zhejiang has seized major opportunities in the era of digital transformation. Guided by digital reforms, it has embarked on a path of innovation and development. A large number of internet companies, projects and talents have settled in Zhejiang. In the first half of this year, the added-value of the core industries of the digital economy in the province reached nearly 400 billion yuan, a year-on-year increase of 17.6%, accounting for 11.5% of GDP. In particular, since the digital reform, the whole province has focused on the "152" digital reform projects ("1" refers to the integrated intelligent public data platform; "5" refers to the five applications of digital technologies in the field of governance of the Party and government management, economy, society, and legal system; "2" refers to building a theoretical system and a system of institutional norms) and the "1+7+N" working system of carrying out reform, and launched platforms such as the "Zhejiang Fair" (a digital supervision system for business activities) and "Zhejiang Food Delivery Online." New breakthroughs in the digital field are constantly resulting in new achievements in social development.

Walking around Wuzhen, one will find the meeting of science and art. Some say that science and art are like two people climbing the same mountain from different directions, parting at the foot of the mountain and reuniting at the top. In Wuzhen, everything is married perfectly: the sound of pulling on oars with the flow of ideas, small bridges and corridors with interconnectivity, and an artistic and humanistic atmosphere with a pragmatic and realistic scientific temperament. In today's Wuzhen, modern landmarks such as the Wuzhen International Internet Exhibition & Convention Center, the Yunzhou Guest Service Center and The Light of Internet Expo center are situated along the Beijing-Hangzhou Grand Canal with its long history; while the Wuzhen Theatre Festival and the quaint Wucun village glow with even stronger cultural charm. Last week, the CPC Zhejiang Provincial Committee held a cultural work conference and made an important decision to implement projects to promote the cultural development of Zhejiang in the new era, enrich people's minds while pursuing common prosperity, achieve the goal of culture first in advancing modernization, and build a cultural pacesetter in the new era, creating a cultural development boom. The World Internet Conference is not only a feast of technology but also a feast of culture. Wandering through this world of art and science, we can better understand the secret of Zhejiang's development and perceive the landscape of common prosperity.

The conference will present digital applications in everyday life. The World Internet Conference is the best platform to stage the world's cutting-edge technological achievements of the internet. At this year's conference, we will introduce 25 smart projects such as 5G all-area autonomous driving, a smart nursing system and a digital ranch, centered around various scenarios such as life experience, smart production and industry eco-system. Over 300 leading enterprises such as Huawei, Alibaba, Tencent, Baidu, CETC and Kaspersky Lab will exhibit and showcase their latest internet-related technological achievements. During the conference, the Internet Technical Achievements Exhibition Hall will showcase innovative applications such as blockchain intelligent inspection, nanolithography and imaging devices, as well as integrated deep-sea robots both online and offline. In addition, we will hold a ground-breaking ceremony for the Internet Science and Technology Pavilion, which is scheduled to open in 2023, allowing the World Internet Conference to be open to the public throughout the year. In view of the need for epidemic prevention and control measures, we will build a smart system for the conference, integrating information systems for the management of conference guests, activities and venue resources, and optimize the application of technologies such as one-code access, facial recognition and infrared sensors, so as to ensure visual processes, problem tracking, controllable results and ultimately hold a safe conference.

Zhejiang has gained steam in digitalization reform and the excitement of the internet era is continuing to be written. We will hold the conference with high standards, provide high-quality services, and display high-level internet development results, which will come together to present a wonderful international conference. Thank you to friends from the media for your long-time concern and support for Zhejiang. That is all for my introduction.

Shou Xiaoli:

Thank you, Mr. Zhu. Now, the floor is open for questions. Please identify your news outlet before you raise a question. 

CCTV:

What were the considerations when deciding the theme of the World Internet Conference 2021, "Towards a New Era of Digital Civilization – Building a Community with a Shared Future in Cyberspace?"

Zhao Zeliang:

I will answer the question. Currently, with the rapid development of digitalization, the 2021 WIC's theme, "Towards a New Era of Digital Civilization – Building a Community with a Shared Future in Cyberspace," has special meanings. We all know that the first WIC was held in 2014 and since then we have held the conference for seven times. For the past more than seven years, the four principles for advancing the transformation of the global internet governance system and the five proposals for building a community with a shared future in cyberspace put forward by General Secretary Xi Jinping have been widely recognized by the international community. Since the outbreak of the COVID-19 epidemic last year, the internet has played an important role in recovering the global economy recovery, resuming the normal functioning of society, and promoting international anti-epidemic cooperation. The importance and urgency to build a community with a shared future in cyberspace has become even more prominent. 

"Towards a New Era of Digital Civilization – Building a Community with a Shared Future in Cyberspace" means that the WIC aims to broaden the common ground of the international community for achieving security, stability and prosperity in cyberspace. The WIC will focus on the new trends and hot issues in the development of the new round of technological revolution, and address the new challenges and problems in global cyberspace development and governance. We will widely expand the consensus of the international community and ensure that digital innovation benefits people of all countries and a better future for mankind will be built with joint efforts in humanity's progress towards a digital civilization.  

"Towards a New Era of Digital Civilization – Building a Community with a Shared Future in Cyberspace" is also expected to show China's sincerity for cooperation and to deliver confidence and strength in global cyberspace. Upholding the principles of mutually beneficial, open and shared development, the WIC aims to promote in-depth international digital cooperation, enhance solidarity and mutual trust in cyberspace, and present China's sincere wish and strong resolution to share new digital opportunities with the world and advance international digital cooperation. 

"Towards a New Era of Digital Civilization – Building a Community with a Shared Future in Cyberspace" also means that the WIC hopes to present Chinese wisdom and solutions to the world, share China's experience and achievements in promoting internet development and governance, and demonstrates the country's sense of responsibility to build a community with a shared future in cyberspace. Thank you. 

Hong Kong Economic Herald:

We all know that Zhejiang is fully advancing digitalization reform. What effects will it have on Zhejiang's internet industry and cyberspace governance? Thank you.

Zhu Guoxian:

I'd like to thank you for your concern for Zhejiang's digitalization reform, which is a reform that affects many other aspects in Zhejiang. This year, Zhejiang has vigorously pushed forward its digitalization reform, and opened a new chapter in Zhejiang's digital development. By focusing on the "152" digital reform projects, Zhejiang will carry out a well-rounded and systematic reform in its social development and governance capacity. By doing so, the digitalization reform will transform all social and economic sectors in a deep and all-round way and further guide the prosperous development of the internet industry in Zhejiang. The digitalization reform has the following features. 

First, the internet sector will continue to boom. Creating major applications through digital reforms will further promote the widespread application of the internet, boost innovation and breakthroughs in internet technologies, and facilitate the emergence of new business forms and new models. The role of data as a key production factor will become more prominent, which will bring major opportunities for the development of the internet sector.

Second, provincial-level digital governance will be comprehensively improved. In the process of deepening digital reforms, data-driven governance capacity will become an important impetus of Zhejiang province to transform government functions and promote governance innovations. The modern government building will focus on overall smart governance, being practical and innovative. 

Third, we will continue to build a safe and clean cyberspace. We will follow the people-centered philosophy of internet development in digital reforms, and coordinate development and security. In terms of the future development of the internet, Zhejiang will have more advantages in building a clean cyberspace. This will mean strengthening integrated internet management, ensuring that cyberspace is governed in accordance with law, building a cybersecurity protection system, and better regulating the development of the internet. Thank you.

Hong Kong Bauhinia Magazine:

The World Internet Conference is a grand gathering in the internet industry, and everyone has paid close attention to this year's lineup of guests. The conference will be convened in a few days. What important companies and people will participate in this year's conference? Thank you.

Zhao Zeliang:

In fact, this reporter friend has just given the answer while asking the question. Indeed, the WIC has become a symbol of Zhejiang, as well as a highlight of China's internet development. The role and influence of the WIC has been recognized by the international community. Therefore, the invitation of guests to this year's conference has gained much attention. With an open attitude and high-level positioning, we welcome friends, guests and representatives from industries, universities, research institutes and government departments around the world to attend the conference to better communicate ideas, promote consensus and contribute good ideas to the world's internet development. 

Since we began inviting guests to the conference, we have received close attention and active responses from all sides in China and abroad. Our guests come from more than 80 countries and regions. They include representatives of foreign government departments and embassies in China, heads of international organizations such as the Department of Economic and Social Affairs of the United Nations, the International Telecommunication Union, the World Intellectual Property Organization and the Global System for Mobile Communications Association, as well as representatives from well-known companies from China and abroad. They will share their cutting-edge insights, and also communicate and interact with each other to generate the sparks of wisdom. Thank you. 

China National Radio:

What new highlights can we expect for the release of the leading scientific and technological achievements in this year's World Internet Conference? Thank you. 

Zhu Guoxian:

I will answer this question. The world's leading scientific and technological achievements will be showcased through the "'Straight to Wuzhen' Global Internet Competition" and the "Light of the Internet Expo." Since you asked, I will introduce some of the highlights of the release. 

First, the competition organizers made innovations to promote specialization. Based on hotspot issues of the digital economy, the organizers worked with professional institutions in China and abroad to set five parallel contests covering AI, 5G applications, the industrial internet, the consumer internet and integrated circuits, attracting 1,012 projects from home and abroad. 

Second, the level of internationalization has increased. The competition organizers have intensified their efforts to work with well-known Chinese and foreign organizations, universities, business incubators, amid other platforms, They have attracted almost 200 projects from 19 countries, with many of them being high-level projects led by academicians of foreign countries. The competition also invited Steven Hoffman, known as the Godfather of Silicon Valley startups, to act as co-chair. 

Besides, as people are not only interested in the competition, but also our Light of the Internet Expo, here are some points I would like to share with you. First, we will expand the expo as appropriate. Two venues, namely the Light of the Internet Expo Center and Wuzhen Internet International Conference and Exhibition Center, will be used together to hold the event, with a total exhibition area of more than 30,000 square meters. Second, the expo will focus on more specific themes. Apart from the comprehensive exhibition area, we will set up areas with special characteristics, including one special area for the digital economy; three themed exhibition areas focusing on cyberspace security and individual information protection, the digital society and digital trade, and cloud computing and big data; and three regional exhibition areas. We call this "1+3+3." Third, more achievements showcased at the expo will be applied. We will invite well-known enterprises, both upstream and downstream in the industrial chain, to jointly participate in the expo, showcasing the entire ecosystem of the industry and further supporting industrial cooperation. Thank you. 

People.cn:

Every year during the WIC, important research outcomes are announced in blue papers which attract wide attention both at home and abroad. Compared with previous ones, what will be the focus of this year's blue papers and what features and innovations will be presented? Thank you.

Zhao Zeliang:

I will answer your questions. This year we will continue to release blue papers. The "World Internet Development Report 2021" will focus on both the latest and general trends in global internet development during the past year. It will systematically summarize the situation and highlights of internet development in major countries; showcase new internet technologies, applications and changes worldwide; and scientifically envisage the future trends of global internet development.

The upcoming "China Internet Development Report 2021" was compiled under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, especially General Secretary Xi Jinping's important thought on cyber development. The report will focus on the achievements of China's internet development during the past year, and make an assessment of internet development in each provincial-level region. Since the start of this year, the internet has promoted the high-quality development of the digital economy, and facilitated the country's new development paradigm of "dual circulation." China has comprehensively advanced the rule of law in cyberspace governance and the governance system of the platform economy has been gradually improved.

This year marks the 100th anniversary of the founding of the CPC, as well as the beginning of China's 14th Five-Year Plan. During the compiling of the report, the authors focused on the achievements of China's internet development under the strong leadership of the CPC, as well as its fresh experience and innovations in this regard. What's more, the authors also paid attention to the theme of our times and our main tasks, and dovetailed the contents of the blue paper with the country's macro-strategy and national plans for cyber and information development.

That is a brief introduction of this year's blue papers. Thank you.

The Poster News APP:

As we all know, Tongxiang is a city with an advanced economy and developed industries, especially the manufacturing industry. What progress has Tongxiang made in taking the opportunity of hosting the WIC to promote internet-driven high-quality economic development? Thank you.

Qi Li:

I will answer your question. First, I'd like to thank you for your attention to the development of Tongxiang.

Indeed, as you said, Tongxiang is a city with an advanced economy and developed industries. In 2020, its GDP reached 100.3 billion yuan (about $15.57 billion). The city now ranks 25th among China's latest top 100 counties (including county-level cities). As the permanent host city of the WIC, Tongxiang is seeking more than just regular growth achieved by enterprises of traditional strength. Ever since we began successfully hosting the WIC, we have considered the best ways to ensure the event brings benefits to the region and empowers our local enterprises to grow with internet technology. This has been our top question to think about, explore and put into practice. Generally speaking, we have made progress in three aspects.

First, we have seen a faster development. The digital economy has become the fastest growing industry with the most potential in Tongxiang. In 2014, there were merely more than 300 digital economy companies in Tongxiang. By 2020, this number had increased by more than eight times to 2,443, with an average annual increase of more than 350. Meanwhile, the output value of the digital economy's core industry here was merely more than 4 billion in 2014, but by 2020 it had grown close to 16.5 billion. This indicator continued to maintain rapid growth in the first half of this year, with an increase of 59%. The industry's rapid progress can be attributed to these surging statistics. Here I can give you examples of these developments in two industries. One is the smart car industry. In Tongxiang, the entire industry chain has been covered, such as batteries, motors, electronic controls, software and hardware for smart driving, and various other means of smart vehicle production. We can proudly say that Tongxiang has achieved the most complete smart car industrial cluster among all counties and prefectures in the country. This was totally unimaginable many years ago. The second example is the intelligent computing industry. During this year's World Internet Conference, the construction of the "Light of Wuzhen" Super-computing Center will be officially completed, and the first intelligent computing industry base in Zhejiang province, "Wuzhen Computing Town," which relies on the super-computing center, has also officially started construction. We believe that in the near future, Zhejiang's strongest computing brain will definitely show its super industrial agglomeration and radiation effects.

Second, we have seen a higher-level upgrading. "Internet Plus" has given wings to Tongxiang's industrial transformation and upgrading. We focus on industrial digitization and have vigorously promoted the transformation of "Internet Plus." In recent years, we invested around tens of billions of yuan each year to implement more than 1,000 digital transformation projects and promote higher-level industrial iterative upgrades. For example, in the manufacturing sector, through the construction of industrial command-center brains, future factories, and the Industrial Internet, production efficiency has been greatly improved. I can give you a small example: in Tongxiang, there is a traditional chemical fiber manufacturing company whose factories have been in operation for 25 years. Through the in-depth application of 5G technology, its production capacity has tripled in three years, the average human labor force has been reduced by 50%, production efficiency increased by 90%, and the comprehensive energy consumption is 20% lower than the industry average. Since the beginning of this year, we have three corporate groups that have entered the ranks of Zhejiang's Future Factory list, and five projects have entered the national list of intelligent manufacturing.

Third, we have seen a stronger driving force. Innovation is increasingly becoming the strongest driving force for the high-quality development of Tongxiang's economy. To innovate, we must have a platform. Centered on building the Wuzhen Internet Innovation and Development Pilot Zone, we have built 13 industrial innovation and development platforms led by the Big Data High-tech Industrial Park and supported by the Digital Economy Town and the Smart Vision IoT Town. A large number of innovative enterprises have settled in Tongxiang. Up to now, the total number of high-tech enterprises and technological enterprises in Tongxiang has reached 1,424. Innovation is even more inseparable from talent. In recent years, Tongxiang has attracted nearly 20,000 college graduates annually and has successfully established the first batch of "Home for Academicians" in Zhejiang province, gathering 46 academicians and securing 28 projects. This year we cooperated with Tsinghua University and Yangtze Delta Region Research Institute of Tsinghua University, and invested 1.2 billion yuan to start building the Wuzhen Lab, working together to create a gravitational field and a cradle of innovation and development. Tongxiang is also increasingly becoming a top choice for all kinds of talents in entrepreneurship and innovation.

Therefore, being faster, higher, and stronger is the most direct portrayal of Tongxiang benefiting from the huge dividends of the World Internet Conference. The people of Tongxiang are in conscious pursuit of development in order to lay a more solid foundation for Tongxiang to achieve its new goal of being a leading demonstration zone leader for common prosperity. I would like to take this opportunity to invite friends of Tongxiang to visit our city. What you will see is a Tongxiang that has been transformed by the World Internet Conference, and a Tongxiang that is even more splendid under the grand vision of building a community with a shared future in cyberspace.

Red Star News:

China has decided to build Zhejiang into a demonstration zone for achieving common prosperity. Can you tell us what exemplary and leading roles Zhejiang has played in promoting common prosperity? What are Zhejiang 's achievements and plans for building a demonstration zone for achieving common prosperity? Thank you.

Zhu Guoxian: 

Thank you for your attention to the high-quality construction of the demonstration zone for achieving common prosperity in Zhejiang. Common prosperity is the essential requirement of socialism and an important goal for socialist modernization. General Secretary Xi Jinping has put forward a series of important views and proposals and made a series of important deployments. On Aug. 17, Xi stressed at the tenth meeting of the Central Commission for Financial and Economic Affairs that rather than being egalitarian or having only a few people prosperous, common prosperity refers to affluence shared by everyone, both in material and cultural terms, and shall be advanced step by step. The meeting encouraged creating conditions that are more inclusive and fair for people to get better education and improve their development capabilities, as well as shaping a development environment that provides chances for more people to become wealthy. Zhejiang is building a demonstration zone for achieving common prosperity in accordance with the requirements of Xi.

Entering the new journey of the Second Centenary Goal, Xi and the CPC Central Committee have given Zhejiang a new mission of building a demonstration zone for common prosperity through high-quality development. This is not only a political responsibility but also a golden opportunity for Zhejiang. Zhejiang held a plenary session for the provincial Party committee, which made special arrangements and put forward three concepts, namely, "supporting people to embark on the journey of prosperity through innovation and hard work, and encouraging those who have become better-off to help those still lagging behind," " government, society, enterprises and individuals working together" and "taking a phased-in approach from lower level to the higher and from part to whole." The three concepts are adopted to narrow the three gaps, including gaps between regions, urban and rural areas and incomes. The main objectives of "four leadings and three beauties" in the next five years and the main tasks of "carrying out demonstrations in seven aspects" have been clarified, and a phased road map and mission statement for promoting the construction of a demonstration zone for common prosperity has been formed.

Your question relates to what kind of development paradigm Zhejiang has adopted. I think we can use five scenarios to show Zhejiang demonstration zone for common prosperity through high-quality development. The first is one in which everyone participates and does their best to embark on the road of sustainable common prosperity, create a happy life, and build a better home through innovation, creation, self-efforts, and mutual help.

The second is a scenario of prosperity, which shows the organic unity of efficiency and fairness, as well as development and sharing. This not only requires vigorously developing productivity and continuously improving efficiency, but also preventing polarization, promoting and maintaining fairness, and realizing high-quality sharing. Our goal is that by 2025, the per capita GDP will reach 130,000 yuan and the per capita disposable income of residents will reach 75,000 yuan. Meanwhile, a new mechanism will be established and improved to encourage those who have become better-off to help those still lagging behind, so as to make development opportunities more equal and allow everyone to share in the fruits of development. Zhejiang province has 26 mountainous counties and we will focus on accelerating the development of these counties.

The third scene is a balanced picture of regional integration, promotion in all respects, and common prosperity. We will build a new framework of regional integration in urban and rural areas and shape an olive-shaped social structure with the middle-income population as the majority. By 2025, the per capita GDP difference ratio between the highest level and the lowest level in the province will narrow to within 2.1, and the income ratio between urban and rural residents will be down to within 1.9. Zhejiang is now the only province where the income ratio between urban and rural residents is within 2, compared to 1.98:1 last year. 

Zhejiang province aims to have 80% of all households earn an annual disposable income from 100,000 yuan ($15,520) to 500,000 yuan ($77,600), and 45% of all households earn an annual disposable income from 200,000 yuan ($31,040) to 600,000 yuan ($93,120).

The fourth scene is a civilized picture, which features the prosperity of people's cultural activities, harmonious coexistence between man and nature, and social solidarity and harmony.

Zhejiang province will make overall economic, political, cultural, social, and environmental progress. We will promote cultural innovation to enhance ideological progress and develop civilization to promote social progress to pursue common prosperity in cultural term, promote harmonious coexistence between man and nature and social harmony.

The fifth scene is happiness that people can see, touch, and experience. Zhejiang province will make a digital transformation to promote quality and efficiency of public services to solve people's problems, worries, expectations, and concerns. It will take the lead in making significant progress in ensuring access to childcare, education, employment, medical services, elderly care, housing, and social assistance to meet people's multilevel and diverse needs in their entire life.

I'm here to invite you to Zhejiang to experience and join in building the five scenes of a happy life. You're welcome to give valuable advice on the building of Zhejiang into a demonstration zone for achieving common prosperity. Thank you.

Cover News:

What is the current state of the artificial intelligence (AI) industry in China? How will this conference reflect the use of the targeted empowerment of AI? Thank you.

Zhao Zeliang:

First, you can find the answer in the Wuzhen Summit. I believe that AI must be the focus of this year's Wuzhen Summit.

From main forums to sub-forums and from the "Straight to Wuzhen" Global Internet Competition to the Release of World Leading Internet Scientific and Technological Achievements, I believe that there is a large amount of information about AI technical products. 

Hence, I suggest that you go to Wuzhen to listen and participate in discussions to find answers to your questions. However, I will outline some ideas about this issue in advance for your reference.

In recent years, with the rapid improvement of internet technology and big data technology, especially computing and communication capabilities, and the widespread application of perception technology, AI has indeed entered a new stage of development.

Artificial intelligence not only embodies deep learning, such as natural language processing and text processing, but also the synthesis of our voices and text. One day in the future, with the application and development of AI technology, it will be possible that AI technology will write news faster than all you journalists.

But don't worry, you won't lose your job, and you will become smarter with time.

We have seen much progress in human-machine collaboration and the widespread application of AI in automatic control. The popular idea of intelligent vehicles has become a reality. So, AI has entered a new stage of development. AI is not just an industry. I think it will profoundly change the way we live, study, and work. It may also greatly promote social and economic development. I believe AI development will give rise to more new products, technologies, industries, business forms, and models. All these will greatly promote the development of human society and bring tangible benefits to the common people.

Many countries, including China, are paying significant attention to AI development. China has formulated a national plan to boost its AI-related technologies. We need to support AI development, as it will likely become a driving force in social development and a new growth engine. At the same time, we need to develop AI in a rational and rule-based way. AI can greatly benefit society and promote development. However, like everything else, AI may also have negative effects. People are concerned about personal information collection and privacy protection. With the further development of AI, such challenges will become more serious and potential risks more visible. In the era of AI, to protect the safety and interests of netizens and safeguard national security, we should regard these issues as being no less important than economic growth. We should fully implement General Secretary Xi Jinping's instructions and balance development and security. This is especially important for AI development.

We also need to strengthen cooperation on AI development. As I said just now, AI integrates technologies in various fields, including the internet, information and communication, big data, computing, and perception. We need to strengthen cooperation, especially international cooperation, to accelerate and better regulate AI development. That's my view on these issues, but the real answers will be provided in Wuzhen. Thank you.

Shou Xiaoli:

The CAC and Zhejiang province have sent invitations. We welcome journalists to the 2021 World Internet Conference Wuzhen Summit scheduled to take place from Sept. 26 to 28. That's all for today's press conference. Thank you, all the speakers. Thank you, friends from the media. Goodbye!

Translated and edited by Zhu Bochen, Wang Qian, Gao Zhan, Huang Shan, Wang Yiming, Liu Sitong, Liu Jianing, Yuan Fang, Yang Xi, Chen Xia, Li Xiao, Zhang Liying, Zhang Rui, Liu Qiang, Xiang Bin, Zhou Jing, Wang Mengru, Zhang Junmian, David Ball, Jay Birbeck, Tom Arnstein. 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:

Cong Liang, vice chairman of the National Development and Reform Commission (NDRC) and deputy director of the Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area

Xu Hongcai, vice minister of finance

Pan Gongsheng, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE)

Zou Zhiwu, vice minister of the General Administration of Customs of China (GACC)

Lin Keqing, member of the standing committee of the CPC Guangdong Provincial Committee and executive vice governor of the People's Government of Guangdong Province

Qin Weizhong, deputy secretary of the CPC Shenzhen Municipal Committee and mayor of the Shenzhen Municipal People's Government

John Lee Ka-chiu, chief secretary for administration of the Hong Kong Special Administrative Region (SAR) Government

Cheong Weng Chon, secretary for administration and justice of the Macao SAR Government

Chairperson:

Chen Wenjun, head of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Sept. 9, 2021

Chen Wenjun:

Ladies and gentlemen, good afternoon. Welcome to the press conference held by the State Council Information Office (SCIO). Recently, the Communist Party of China (CPC) Central Committee and the State Council issued a general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin and a plan for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. Today, we are holding this press conference to expound on these two plans, introduce the development of Hengqin and Qianhai, and answer your questions. Today's press conference will be held via video link with the main venue in Beijing and three sub-venues in Guangdong, Hong Kong and Macao SAR. Please forgive us if there's signal delay.

Next, I will introduce to you the speakers. Here in Beijing, we have Mr. Cong Liang, vice chairman of the National Development and Reform Commission (NDRC) and deputy director of the Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA); Mr. Xu Hongcai, vice minister of finance; Mr. Pan Gongsheng, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE); and Mr. Zou Zhiwu, vice minister of the General Administration of Customs of China (GACC). In Guangdong, we have Mr. Lin Keqing, member of the standing committee of the CPC Guangdong Provincial Committee and executive vice governor of the People's Government of Guangdong Province; and Mr. Qin Weizhong, deputy secretary of the CPC Shenzhen Municipal Committee and mayor of the Shenzhen Municipal People's Government. In Hong Kong, we have Mr. John Lee Ka-chiu, chief secretary for administration of the Hong Kong Special Administrative Region (SAR) Government; and in Macao, we have Mr. Cheong Weng Chon, secretary for administration and justice of the Macao SAR Government.

Next, I will give the floor to Mr. Cong. 

Cong Liang:

Ladies and gentlemen, friends, good afternoon. Thank you for your attention and support to the GBA, especially Hengqin, Qianhai and other major cooperation platforms in Guangdong, Hong Kong and Macao. I would like to take this opportunity to express my sincere gratitude to friends from all walks of life who care about and support the construction of the GBA.

General Secretary Xi Jinping attaches great importance to the construction of major cooperation platforms in the GBA, and has personally promoted the establishment of the Hengqin and Qianhai cooperation zones. He has visited Hengqin four times and Qianhai three times, and delivered a series of important speeches and instructions, which pointed out the direction for the construction and development of the cooperation zones. General Secretary Xi Jinping emphasized on many occasions that the original goal of establishing the Hengqin new area was to create conditions for the diversified development of Macao's economy; and that Qianhai needs to rely on Hong Kong, serve the mainland, and open up to the world, further promote Guangdong-Hong Kong and Shenzhen-Hong Kong cooperation, and promote Hong Kong to better integrate into the development of the country to create a new pacesetter for reform and opening up.

In line with the decisions of the CPC Central Committee and the State Council, we have worked with Guangdong, Hong Kong, Macao and relevant departments to formulate a general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin and a plan for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. General Secretary Xi Jinping personally presided over the meetings to review and approve the plans for Hengqin and Qianhai. These two plans were released to the public a couple of days ago. The Hengqin plan focuses on the original goal of promoting the moderately diversified economic development of Macao. With a goal-oriented and problem-oriented approach, the plan aims to serve Macao and promote the integrated development of Hengqin and Macao. Generally speaking, it covers the following aspects: one theme, four major positions, three-phase goals, four major tasks and several supportive measures.

The "one theme" refers to promoting the moderately diversified economic development of Macao. This is the starting point and foundation of our work in Hengqin.

The "four major positions" refer to serving as a new platform to boost Macao's appropriate economic diversification, a new space that provides convenience for Macao residents' daily lives and employment, a new model to enrich the practice of "one country, two systems," as well as a new high ground for building the Guangdong-Hong Kong-Macao Greater Bay Area.

The "three-phase goals" are related to 2024 and 2029, the beginning of two new terms of the Macao SAR government, and 2035, an important year for China's modernization. We have set development goals for these three years in terms of institutional mechanisms, industrial development and public services.

The "four major tasks" comprise of developing new industries that promote a moderately diversified economy in Macao, creating new space that facilitates the life and work of Macao's residents, building a new integrated system with Macao featuring a high level of opening up, and improving a new system of joint consultation, management and sharing between Guangdong and Macao.

The "several supportive measures" refer to enhancing the Party leadership and Party building in an all-round manner in the cooperation zones, enhancing legal guarantees, increasing the delegation of power, establishing and improving the risk management mechanism, and strengthening organization and implementation.

The Qianhai plan focuses on the two key points of "zone expansion" and "reform and opening up," and includes tasks in three areas.

The first is to expand the development space of the Qianhai cooperation zone. According to the plan, the total area of the zone will be expanded from 14.92 square kilometers to 120.56 square kilometers, and relevant supportive policies will cover the whole area following procedures, providing greater space for cooperation between Shenzhen and Hong Kong.

The second is to build an experimental platform for deepening reform and innovation in an all-round manner. According to the plan, major reform tasks will be piloted, and several tasks have been put forward including promoting the innovative development of the modern service industry, accelerating the reform and innovation of scientific and technological development mechanisms, creating a world-class business environment, and innovating the governance model of cooperation zones.

Third, a gateway and hub featuring high-level opening up will be built. The plan specifies that a higher-level open economy will be established and improved. The plan also puts forward effective measures for enhancing service trade liberalization with Hong Kong and Macao, promoting greater opening up of the financial sector, improving the openness of legal affairs, and improving high-level participation in global cooperation, among other measures.

Looking forward, we will act in accordance with the decisions and deployments made by the CPC Central Committee and the State Council, work with relevant parties to carefully organize the implementation efforts, and ensure good communication, coordination and services, so that all tasks of the two plans can be carried out. Thank you.

Chen Wenjun:

Thank you, Mr. Cong. Next, I'll give the floor to Mr. Lin Keqing.

Lin Keqing:

Ladies and gentlemen, friends from the media, the official release of the plans for the two cooperation zones marks a new stage of comprehensive construction and development in Hengqin and Qianhai. We have felt the great support for Guangdong and the high expectations for GBA from General Secretary Xi Jinping and the CPC Central Committee. We feel highly motivated and encouraged. 

The construction of the two cooperation zones has offered historic opportunities to Guangdong's reform and growth in the new development stage. The move is a strategic means for Guangdong to serve the "one country, two systems" policy, a strategic platform for Guangdong to further deepen reforms comprehensively, and a strategic support for Guangdong to serve the new development paradigm.

The CPC Guangdong Provincial Committee and the People's Government of Guangdong Province have taken on this major responsibility and historic mission, comprehensively and precisely grasped the strategic intention of General Secretary Xi Jinping and the CPC Central Committee, and have been working step by step with Hong Kong and Macao to turn the blueprints of two cooperation zones into reality. First, we have made intensified efforts to study, publicize, and implement the two plans. The Standing Committee of the CPC Guangdong Provincial Committee has met to communicate the two plans, a meeting of mobilization has been held on the provincial level, and the entire provincial Party committee has also met on the same matter. Second, we have made all-out efforts to improve relevant coordination mechanisms. Two leading groups for the construction of the two cooperation zones have been established, headed by Li Xi, secretary of the CPC Guangdong Provincial Committee. Ma Xingrui, governor of Guangdong province, serves as the first deputy head of the groups. Third, we are creating a system of policies, plans and laws for the construction of the two zones. We have formulated policy documents and advanced the formulation of a new round of overall plans for the two cooperation zones, drafted regulations for the Hengqin Cooperation Zone, and revised regulations for the Qianhai Cooperation Zone. Fourth, we have spared no efforts to facilitate the implementation of major tasks, programs, and industrial projects. Focusing on Hengqin's design function of promoting an appropriate level of economic diversity in Macao and Qianhai's role of serving the development of the mainland and opening up to the world based on its adjacency to Hong Kong, we have been working to implement all the tasks, programs and industrial projects concerning the two cooperation zones. Thank you.

Chen Wenjun:

Next, I'll give the floor to Mr. John Lee Ka-Chiu.

John Lee Ka-Chiu:

Ladies and gentlemen, friends from the media, good afternoon. The Hong Kong SAR government highly welcomes the plan released on Sept. 6 by the central government for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. The plan focuses on promoting higher-level opening up, facilitating the innovation of the modern service industry, and speeding up the building of a modern service industry in Qianhai that connects to Hong Kong and meets international standards. The Hong Kong SAR government firmly believes that we will be able to make good use of the advantages of the "one country, two systems" policy to promote the development of the modern service industry in Qianhai. At the same time, Hong Kong will give greater play to its advantages as an international center for finance, shipping and trade as well as a global aviation hub to provide more space for Hong Kong's professional services to develop.

With the support of the central government, the governments of the Hong Kong SAR and Shenzhen have been working to improve Qianhai's development and provide convenience for Hong Kong's professional services to develop in Qianhai. In recent years, law and architecture-related opening up policy measures have been introduced in Qianhai, which are widely welcomed by Hong Kong. So far, about 11,500 Hong Kong companies have registered in Qianhai, covering not only the just-mentioned professional services but also such modern services as finance, logistics, information, and science and technology.

In addition, Qianhai keeps attracting Hong Kong's young innovators and entrepreneurs to join the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub. The hub has incubated a lot of successful companies, becoming one of the many fruitful examples of Shenzhen-Hong Kong cooperation.

Released by the central government, the Qianhai plan has taken Shenzhen-Hong Kong cooperation onto a new level, allowing the two cities to better play their role of leading development as two core cities of the GBA. Hong Kong's business community and professional service providers have been actively making preparations to embrace the new opportunities brought about by the plan to Hong Kong people and companies. The government of the Hong Kong SAR will continue to strengthen cooperation with the governments of Guangdong province and Shenzhen city to promote the development of Qianhai and create broader development space. Thank you.

Chen Wenjun:

Thank you, Mr. John Lee Ka-Chiu. Next, I'll give the floor to Mr. Cheong Weng Chon. 

Cheong Weng Chon:

Thank you, Mr. Chen. The release of the general plan for building a Guangdong-Macao in-depth cooperation zone in Hengqin was an important move to implement President Xi Jinping's instructions. It is also a major action to support Macao in developing a moderately diversified economy and enrich the practices of the "one country, two systems" policy. The plan will inject new impetus, provide new space, and create new opportunities for Macao's long-term development. The Macao SAR government highly welcomes the introduction of the general plan, and would like to express our heartfelt thanks to the central government for its strong support.

The general plan contains new institutional designs and comes with greater reform efforts, broader opening up access, as well as high quality policies. According to the general plan, the in-depth cooperation zone will become a new platform for promoting a moderately diversified economy in Macao, a new space for Macao residents to work and live in, a new demonstrative practice of "one country, two systems", and a new pacesetter for the development of the GBA.

The government of the Macao Special Administrative Region (SAR), headed by Chief Executive Ho Iat Seng, will join hands with our citizens in seizing the historic opportunity to fully implement the general plan. Next, we will work on the following aspects:

First, we will fully study the plan and follow the policy orientation in building the cooperation zone to lay a foundation for the follow-up actions. Second, we will raise public awareness. We will work actively to introduce the plan to Macao residents so that they can have a better understanding of the importance of building the cooperation zone. Third, we will work closely with Guangdong province to leverage our respective advantages to build synergy for win-win cooperation. Fourth, we will ensure the good implementation of the plan. Efforts will be made to develop a list of duties and specify the duties for different departments so that all tasks will be fully completed. This will help us secure a better future for the Guangdong-Macao In-depth Cooperation Zone in Hengqin.

Chen Wenjun:

The floor is now open for questions. Please identify your news outlet before asking your questions.

CCTV:

The general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin made it clear that four major new industries will be supported in Macao. Why have the four been selected? What concrete policies will be rolled out to support their development? Thank you. 

Cong Liang:

Thank you for your questions, I will answer them. General Secretary Xi Jinping has made it clear many times that the original mission for building the Hengqin new area is to create a favorable environment for Macao's economic diversification. We kept this in mind when we formulated the plan for Hengqin and decided what major industries to develop in the zone. We have taken into consideration the development foundation of Hengqin, the industrial advantages of Macao, and the expectations from Macao residents, among others, in a holistic manner. After repeated discussions and careful comparisons, we proposed in the plan that four major industries should be promoted in the corporation zone, which are: scientific and technological research and development; high-end manufacturing; traditional Chinese medicine (TCM) and other signature businesses of Macao; industries related to culture, tourism, conventions, exhibitions, business and trade; and modern finance. Scientific and technological research and development will provide an important platform for innovation-driven development and is also what Macao expects to develop in the future. Industries related to culture, tourism, conventions, exhibitions, business and trade enjoy a solid foundation for development in Macao and have a competitive edge. Finance and TCM, though only taking a small share in Macao's economy at present, are widely recognized by the society of Macao as the major industries to develop in the future. Particularly, Chief Executive Ho Iat Seng has raised on many occasions the intention to develop TCM industry, and a series of measures have been taken recently to develop it. 

The foundation of Hengqin's industrial development remains weak. To accelerate the development of its major industries, we have identified a series of supportive policies in the plan for Hengqin. 

First, we will enhance our capacity for sci-tech innovation. Urgently-needed sci-tech infrastructure be built and major international science plans and projects will be implemented in the cooperation zone. Second, we will facilitate the flow of goods. We will ease the control on the "first line" (the boundary between Hengqin and Macao). There will be tax-free or bonded access for all goods and products except those listed as nonqualified by the law and regulations. We will exempt import tariffs for qualified goods produced by companies in the corporation zone when the goods enter the mainland through the "second line" (the boundary between Hengqin and the rest of the Chinese mainland). Third, we will improve the preferential policies concerning corporate income tax. Corporate income tax rates will be lowered to 15% for eligible companies in the zone. Fourth, we will attract talent from China and abroad. High-level professionals and urgently-needed professionals who work in the cooperation zone will be exempted from paying the portion of personal income tax that exceeds 15% of their taxable income. In addition, there are specified arrangements in terms of improving visa policies for foreign professionals and facilitating them to take part in the building of the zone. Fifth, we will explore new methods in cross-border financial management. More flexible financial policies will be implemented to facilitate cross-border direct investment, cross-border finance, and cross-border security investment. We will explore practices for free cross-border capital flows and push for capital account convertibility.

What needs to be pointed out is that there are many specific categories of the industries mentioned in the plan. Therefore, we should be selective when deciding what emerging industries to be developed in Hengqin, as the place is not large enough for all industries to settle in. There are things we will do and things we won't do. We are not looking for a so-called "business registration economy" or "headquarters economy." Instead, we will develop the real economy and create more jobs to build the zone into a popular destination for investment and talent.

Next, we will work with Guangdong province, Macao SAR and other related departments to formulate the Catalogue of Encouraged Industries in the cooperation zone and revise the Overall Development Plan of Hengqin. We will further specify the categories of industries, focus on advantageous industrial sectors, take multi-pronged approaches in terms of policy, human resources and financial support, scale up efforts to tackle challenges, and facilitate fast and large-scale industrial development, in a bid to promote Macao's economic diversification. Thank you. 

South China Morning Post:

According to the Qianhai plan issued on Sept. 6, the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will be expanded to 120 square kilometers from 14.92 square kilometers. What are the considerations on the expansion? There are worries in Hong Kong that there may be competitions between the newly developed industries in Qianhai and those industries already built in Hong Kong, and that it may even lead to a brain-drain from Hong Kong. How can we formulate the Qianhai-Hong Kong relationship to be both competitive and complementary? Thank you. 

Cong Liang:

Thank you for your question. The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area makes clear requirements to further promote the development of the Qianhai cooperation zone and rolls out preferential policies in the new expanded areas. In accordance with the decisions and deployments made by the CPC Central Committee and the State Council, we will manage the items concerning the expansion of Qianhai in a comprehensive approach. We support the expansion of Qianhai with two considerations.

On the one hand, the expansion of the Qianhai cooperation zone will nourish more development spaces for deepening reform and opening up in Qianhai. After over a decade of development and construction, area limitation has become a prominent problem restricting the reform and development of Qianhai. The expansion of Qianhai will promote institutional innovation and industrial upgrading in Qianhai, as well as the trial implementation of major reform policies. It's fair to say that the expansion of Qianhai acts as a means of deepening reform and opening up, and creates conditions for the further reform and opening up.

On the other hand, it will create more opportunities for Hong Kong. Strengthening cooperation between Shenzhen and Hong Kong is Qianhai's mission, as well as its special advantages. At present, numerous modern services enterprises from Hong Kong have entered the mainland market through Qianhai. However, due to the area limitation, it's hard to fully meet the development needs of these enterprises. After the expansion, the land available for industrial development will increase substantially in Qianhai. It will better leverage Hong Kong's advantages, upgrade cooperation between Shenzhen and Hong Kong, provide strong support for Hong Kong's economic development and push forward the integration of Hong Kong into national development.

Next, we will collaborate with the authorities of Guangdong province and Shenzhen city to concentrate on two aspects, in accordance with the decisions and arrangements made by the CPC Central Committee and the State Council. First, we will steadily accelerate the zone expansion and launch of preferential policies. We will promote the existing preferential policies in the fields of financial reform and innovation, and legal affairs cooperation to all newly added areas after the expansion, in a bid to provide compelling support for the deepened reforms and opening up in Qianhai. Second, we will make efforts in addressing institutional issues created by the proper decoupling between administrative districts and economic zone. The zone expansion involves two administrative districts of Baoan and Nanshan. We will work jointly with Guangdong province and Shenzhen city, to accelerate the process of proper decoupling between localization administration and economic management, fully leveraging the two institutional advantages and arousing the enthusiasm of all.

Thank you.

People's Daily:

Mr. Cong mentioned that General Secretary Xi Jinping has inspected Hengqin four times and repeatedly stressed the original inspiration of Hengqin New Area was to diversify Macao's economy. We would like to know, as of today, what achievements have been made in the construction of Hengqin, and what achievements have been made to diversify Macao's industries? Thank you. 

Lin Keqing:

Thank you for your questions. In 2009, General Secretary Xi Jinping, who was China's vice president at that time, raised the curtain of reform and opening-up in Hengqin. Over the past decades, Hengqin has been transformed from a boarder island into a pioneer area of China's reform and opening-up. The incredible developments have laid a solid foundation for the construction of the Guangdong-Macao in-depth cooperation zone.

First, economic strength has increased substantially with the rapid growth of key economic indicators, the constant improvement of regional gross domestic product and financial revenue, and the sound momentum of development of new industries and new forms of business. The new economic growth point has gained robust growth with increasingly powerful comprehensive strength and development potential.

Second, the infrastructure has been constantly improved. The new checkpoint at the Hengqin Port has adopted the customs-clearance mode known as "joint inspection and one-time release". The network of trunk roads featuring "five horizontal axes and three longitudinal axes" has basically taken shape. The artery of communications connected through Hengqin Bridge has opened to traffic.

Third, we have further promoted innovation in institutions and rolled out a total of 622 innovative measures, 4 of them were selected as the best practice cases in national free trade zones, and 11 of them were replicated and promoted to the rest of the country. A total of 537 types of government services in the Greater Bay Area can now be handled online, and 237 cross-border administrative approval items can be processed online as well.

Fourth, Hengqin's role in promoting an appropriately diversified economy in Macao has achieved initial success with a total of 4,578 Macao-funded enterprises registered there, and 314 Macao enterprises operating in this region. The Guangdong-Macao Cooperation Industrial Park in Hengqin has provided land for 25 projects with an agreed investment of 79.3 billion yuan. The Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between Guangdong and Macao has fostered 50 Macao pharmaceutical projects. Four state key laboratories in Macao have set up branches in Hengqin, incubating 613 innovation and startup projects from Macao. The unidirectional verification of professional qualifications has started. A total of 589 tour guides, 57 construction enterprises, 269 professionals in the field of architecture from Hong Kong and Macao, and 53 physicians and 7 community workers from Macao have started practicing in Hengqin.

Fifth, Macao residents' lives in Hengqin have become increasingly convenient. The Macao New Neighborhood Project will provide comfortable accommodation for around 10,000 Macao residents. A total of 7,756 Macao residents have applied for residence cards in Hengqin. Nearly 100,000 Macao residents seek medical advice in Hengqin each year. The quota of Macao-tagged vehicles allowed to enter Hengqin increased to 10,000 this year. The Hengqin Comprehensive Service Center of the General Union of Neighborhood Associations of Macao has provided service for nearly 70,000 mainland and Macao residents living in Hengqin.

At the same time, we should note that the development of Hengqin's real economy is still inadequate. The city's service role for Macao is yet to be sufficiently visible. It remains an arduous task to promote the diversity of Macao's industrial development. The construction of the cooperation zone is a glorious mission with heavy responsibilities. We will profoundly comprehend and precisely grasp the strategic intentions of General Secretary Xi Jinping and the Central Committee of the CPC, hold fast to the original intention to appropriately diversify Macao's economy, concentrate on "the four new" strategic positioning and "the four new" major tasks, and work collectively with Macao to turn the great blueprint depicted by General Secretary Xi Jinping and the Central Committee of the CPC into reality. Thank you. 

Macao Daily:

The general plan for building a Guangdong-Macao in-depth cooperation zone in Hengqin provides strong financial support and tax policies in the areas of corporate income tax, personal income tax and import tariffs. What were the main considerations in formulating these policies? And in what areas have innovations been made? Thank you.

Xu Hongcai:

Thank you for your questions. Hengqin is an important platform for promoting cooperation between Guangdong and Macao and boosting the moderately diversified development of Macao's economy. In accordance with the policy decisions and plans of the CPC Central Committee and the State Council, the Ministry of Finance has attached great importance to the development of Hengqin. We have implemented the special preferential tax policies in Hengqin and given positive financial support.

We have followed General Secretary Xi Jinping's important instructions that "the original goal of establishing the Hengqin New Area was to create conditions for the diversified development of Macao's economy" and adhered to the requirements of "gathering strength to overcome the difficulties from policy, manpower, financial and other aspects working in parallel." Under a unified and standardized fiscal system, we have focused on the diversified development goals and changing circumstances in Hengqin, further improved policies and measures, and strengthened support to promote in-depth cooperation between Guangdong and Macao. I will briefly introduce several types of taxes and measures.

In terms of corporate income tax, we will further improve policies and measures. All industries conducive to the moderately diversified development of Macao's economy are subject to the  preferential corporate income tax rate of 15%. The capital expenditure of businesses that meet the requisite criteria will also be permitted a one-time pre-tax deduction or accelerated depreciation and amortization in the current period of expenditure. .  Income from tourism, modern services, high technology, and new overseas direct investment will be exempted from corporate income tax. By these preferential policies, we will promote the moderately diversified development of Macao's economy.

In terms of personal income tax, the preferential efforts will be further increased. For domestic and overseas high-end professionals and employees in short supply in the cooperation zone, the part of their personal income tax burden exceeding 15% will be exempted. Macao residents working in the area will be exempted from paying the part of personal income tax amount exceeding that in Macao. In this way, we will attract more people and encourage Macao residents to find jobs and start businesses.

In terms of import and export taxes, line-division management will be further improved. During the "first-line" customs inspection, goods  will be granted tax-free access to the cooperation zone, except those identified as non-qualifying by the law. During the "second-line" customs inspection, goods entering the mainland from the cooperation zone will go through customs procedures in accordance with the relevant regulations on imported goods, and collect customs duties and import-link taxes. Goods produced in companies within the cooperation zone that do not contain imported materials, or contain imported materials but have a value-added exceeding 30% or higher, will be exempt from import tax when they enter the mainland." This way we will promote the integration of the industries of Guangdong and Macao. Goods entering Hengqin via the "first-line" will be granted tax-free access except those identified as non-qualifying by the law. Goods entering the mainland via the "second-line" will be regulated according to the relevant tax policies.  More convenient personnel exchanges will also be promoted between Hengqin and Macao.

In terms of financial support, we will further improve institutions and systems. The implementation of preferential tax policies will inevitably result in a reduction of fiscal income for both the central and local governments. However, in order to support the sustainability of the plan, such reductions will be covered by the central government itself. For the problem of local revenue reduction in the cooperation zone, the central government has specifically arranged comprehensive financial subsidies under a unified and standardized fiscal system. It needs to be stressed that the central government subsidy policies will be linked to such things as the cooperation zone's efforts to attract Macao enterprises, expand employment, increase the real economy's output value, and support key industries. We will strengthen the impetus of the cooperation zone in serving the diversified development of Macao's economy through institutional mechanisms.

The Ministry of Finance will closely focus on the strategic positioning of the cooperation zone, refine the content of our policies with relevant departments, and promote the implementation of policies, so as to allow policies to play an effective role and promote the accelerated development of the Guangdong-Macao in-depth cooperation zone in Hengqin. Thank you.

Xinhua:

The Macao government has made great efforts to promote the diversified development of Macao's economy since the current chief executive of Macao, Ho Iat Seng, took office in 2019. What has the Macao government done and what achievements have been made? Going forward, what are the key tasks of the Macao government relying on Hengqin in order to facilitate the diversified development of Macao's economy? Thank you.

Cheong Weng Chon:

Thank you. Since the beginning of the fifth term of the Macao SAR government, the most important priority for us has been promoting the moderately diversified development of Macao's economy. The main work includes the following aspects:

In terms of the Traditional Chinese Medicine (TCM) industry, we have drafted a new law on TCM production registration, which will be implemented from next year. The Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park in Hengqin has formed an industry cluster.

In terms of the modern financial industry, we will continue to improve relevant laws and regulations. Some draft laws including the Trust Act will be deliberated by China's legislature

In terms of cutting-edge technologies, we have restructured the Economic Bureau into the Economic and Technological Development Bureau, and formulated preferential tax policies for hi-tech and innovative enterprises. A number of funded research projects have yielded results.

As for conferences, exhibitions, culture, tourism and sports, the development of the conference and exhibition industry gradually tends to be specialized and market-oriented. The market model of tourism plus exhibitions is also being gradually enhanced. Large-scale sports events continue to be held, giving full play to their brand effect.

The Guangdong-Macao in-depth cooperation zone in Hengqin is creating a new platform and bringing new opportunities for Macao's moderately diversified economic development. This is mainly reflected in the following four areas:

First, it will boost Macao's branded industries such as TCM. We will promote applying "Supervised in Macao," "Manufactured in Macao," or "Designed in Macao" signs to TCM products manufactured in the cooperation zone after they are approved and registered in Macao. We will work to simplify the approval procedures for sales of Macao's external-use Chinese patent medicine in the Greater Bay Area.

Second, it will enhance technological research and development as well as high-end manufacturing industries, with the focus on integrated circuits, new materials, new energy, big data, and biomedicine, and boosting the microelectronics industry chain including custom chip designs. We will promote Macao University and other universities to set up demonstration bases of industry-university-research collaboration in the cooperation zone.

Third, it will promote culture, tourism, conferences, exhibitions and trade industries, with the focus being on tourism, conferences, exhibitions, and sports events. We will support Macao's industries in holding more branded and international trade fairs in Hengqin, and facilitate cross-border exchanges for exhibition organizers. We will build a trade market for high-end consumer goods, and help Macao's enterprises develop China-Portugal cross-border e-commerce businesses based on the cooperation zone.

Fourth, it will boost the modern financial industry, with the focus on bond market, wealth management and finance lease. We will encourage cross-border yuan settlement businesses, further reduce the application requirements for Macao's financial institutions to set up bank and insurance branches in Hengqin, and build a financial service platform for China and Portuguese-speaking countries. Thank you.

China Daily:

Promoting financial connectivity is an important part of achieving regulation compatibility and institutional connectivity in the Guangdong-Hong Kong-Macao Greater Bay Area. The financial industry is also the focus of the development of Hengqin and Qianhai. Could you introduce what efforts the People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) have taken to support the development of the two regions? What effective measures have been rolled out this time? Thank you.

Pan Gongsheng:

Thanks for your questions. The PBOC and SAFE pay much attention to the development of the Guangdong-Hong Kong-Macao Greater Bay Area. Following the requirements of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area issued by the central authorities, we will promote financial opening-up and innovation in the Greater Bay Area, including Hengqin and Qianhai. 

In May 2020, the PBOC and other financial regulatory departments jointly unveiled the Financial Support Guideline for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area, which focused on the key areas of financial reform and opening-up and deployed 26 financial opening-up and innovation initiatives in the Greater Bay Area, including Hengqin and Qianhai. Over the past year, the PBOC and the SAFE have continued to promote the implementation of various financial innovation measures in the principle of giving priority to people's livelihoods and finances while considering both long-term and immediate goals.

In terms of finance as related to people's livelihoods, a pilot campaign has been launched for Hong Kong and Macao residents to open mainland bank settlement accounts by remote means, and gradually expand the scope and scale of applicable organizations to facilitate the use of mobile electronic payments by Hong Kong and Macao residents in the mainland. We rolled out services benefiting people's livelihoods, such as direct payments of cross-border electronic bills and self-service queries of personal credit reports for Hong Kong and Macao residents. These financial reforms and further opening-up have made it more convenient for people to live in the Greater Bay Area.

In terms of market connectivity, we will continue to expand the channels for Investors from Hong Kong and Macao to invest in the mainland's capital and bond markets, and promote the implementation of cross-border Wealth Management Connect and southbound Bond Connect schemes, which will be launched in the next few days.

In terms of green financial cooperation, we have promoted local governments to issue green municipal bonds in Hong Kong and Macao and strengthen the cooperation between green bond evaluation and certification institutions in the Guangdong-Hong Kong-Macao Greater Bay Area to jointly set up a green financial alliance in the Greater Bay Area.

In addition, we also launched pilot campaigns of free trade accounts, the cross-border transfer of credit assets, foreign debt facilitation, cross-border capital pools and cross-border investment policies for private equity funds in the Greater Bay Area, including Hengqin and Qianhai.

Next, the PBOC and the SAFE will implement the policy decisions and plans of the CPC Central Committee and the State Council, and continue to give more financial support to the development of Hengqin and Qianhai.

First, in accordance with the two schemes issued by the central government and serving to central government's strategic position of Hengqin and Qianhai, the PBOC is coordinating with the financial regulatory departments of Hong Kong and Macao to formulate special financial policies to support reform and opening up in the two regions.

Second, according to Hengqin's strategic position of grounding itself to serve Macao in the integrated development of the two places, we designed open financial policies and plans for Hengqin, and explored building an electronic fence monitoring system. We will promote the greater opening up of financial services in Hengqin to Macao financial institutions to realize the full integration of financial services, boost the development of characteristic financial businesses in Macao, improve the width and depth of Macao's financial market, and enhance its financial radiating capacity to Portuguese-speaking countries.

Third, we will leverage the role of Qianhai to boost financial cooperation between Shenzhen and Hong Kong, so as to give full play to Hong Kong's role as an international financial center. We will focus on the free flow of cross-border capital, and strive for more open capital accounts to advance openness and connectivity of the financial services sector between the two cities. We will gradually establish a system of financial regulations that is in line with international practices, and improve our market-oriented, law-based and international financial environment, and usher in a more open financial sector.

Fourth, while opening our door wider to the world, we will also establish and improve a system for monitoring, preventing and defusing financial risks, in order to increase monitoring of abnormal cross-border capital flow. We will also strengthen Guangdong-Hong Kong-Macao cooperation on supervision of anti-money laundering, counter-terrorist financing and anti-tax evasion activities, and tighten Guangdong-Hong Kong-Macao cooperation on financial supervision, so as to ensure a more efficient fight against cross-border money laundering and illegal financial activities. Thank you. 

Southern Metropolis Daily:

General Secretary Xi Jinping has inspected Qianhai many times, calling for the area to leverage the advantages of Hong Kong, provide services to the mainland, and maintain an international vision. Could you please introduce the efforts Qianhai has made in promoting cooperation between Shenzhen and Hong Kong in recent years? What measures will be adopted to leverage Qianhai's role in advancing in-depth cooperation with Shenzhen and Hong Kong?

Chen Wenjun:

This question regards both Shenzhen and Hong Kong. I'd like to invite Mr. Qin to answer it first.

Qin Weizhong:

Thank you for your question. With the care of General Secretary Xi Jinping, Qianhai has been established as a major strategic platform of reform and opening up in the new era. Since the 18th CPC National Congress, General Secretary Xi Jinping has inspected Qianhai three times and made important instructions, giving full recognition to its development model and growth momentum. The Qianhai plan issued by the central authorities showcases the care of the General Secretary and the CPC Central Committee toward Qianhai's development. The CPC Shenzhen Municipal Committee and the Shenzhen municipal government, following the strategic instructions made by the General Secretary and the CPC Central Committee, have immediately relayed and implemented the Qianhai plan. With the support of relevant ministries, governments of Guangdong province and Hong Kong SAR, we have been striving to develop and open up Qianhai. The main achievements of Shenzhen-Hong Kong cooperation in recent years lie in three aspects:

First, a lot of modern service companies from Hong Kong have registered in Qianhai. A total of 11,500 Hong Kong-invested companies have registered in Qianhai, with the actual use of Hong Kong investment reaching $22.6 billion. Qianhai has become a home to China's first Hong Kong-invested holding consumer finance company, the first Hong Kong-invested holding public offering fund company, as well as the first joint venture securities company.

Second, the institutional innovation has made a series of achievements. A total of 645 achievements have been made thanks to institutional innovation, 65 of which have been adopted nationwide.

Third, a series of favorable measures have been put in place to help Hong Kong residents in terms of their living and employment. Currently, talents in more than 20 sectors, such as tax accountants and registered architects, are able to conveniently work in Qianhai. The Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub and other similar organizations have fostered 245 startup venture teams from Hong Kong. As such, Qianhai has become one of the regions with the highest correlation and closest cooperation between the mainland and Hong Kong. A high degree of consensus was achieved at the Shenzhen-Hong Kong cooperation meeting held on Sept. 6. Going forward, we will comprehensively implement the requirements of the Qianhai plan made by the central authorities, and remain true to the original aspiration of serving Hong Kong and Macao. We will adhere to the requirements of leveraging the advantages of Hong Kong, providing services to the mainland, and maintaining an international vision. We will strive to promote Qianhai Shenzhen-Hong Kong cooperation upto a new level, and support Hong Kong to further integrate into the national development.  

First, we will make good use of the "new space" brought about by the expansion of the cooperation zone. We will ensure high quality in the new round of general planning and the territorial space planning for the development of Qianhai, and ensure that one third of the newly vacated land designated for industrial purposes will be used by Hong Kong capital and Hong Kong-invested companies.

Second, we will take advantage of the "new dividends" brought about by the new policies. We will work toward making policies in terms of industries, finance and laws accessible in the whole area, and fully leverage the huge opportunities presented in expanding the area.  

Third, we will explore "new fronts" of Shenzhen-Hong Kong cooperation, such as modern finance, technology services, exhibition economy, marine economy and professional services.

Fourth, we will foster "new advantages" in the business environment. We will accelerate the adoption of regulations to protect investors in the Qianhai cooperation zone. We will work with Hong Kong to build an international legal services center and an international commercial dispute resolution center. We will also build the cooperation zone into a pilot platform for comprehensively deepening reform and innovation and a gateway hub for high-level opening up.

I'd also like to take this opportunity to invite all of you to visit Qianhai. Thank you.

John Lee Ka-chiu:

Thank you for your question. The cooperation between Hong Kong and Shenzhen has been a unique story during China's reform and opening up over the past 40-plus years. Such practice of giving full play to Hong Kong's advantages and contributing to the country's needs has been a win-win and mutually beneficial relationship. The release of the Qianhai plan will ensure a higher level of cooperation between the two cities, and leverage their roles as "double engines" in promoting development of the Guangdong-Hong Kong-Macao Greater Bay Area.

With the support of the central authorities, the local governments of Hong Kong and Shenzhen have been making great efforts to improve the development of the Qianhai area and facilitate Hong Kong's professional service providers entering Qianhai. In recent years, policies and measures have been put in place to further open up the professional services sector, which is highly welcomed by industry in Hong Kong. For example, in terms of legal services, Qianhai is the first place to establish joint venture law firm run by law firms from the Chinese mainland and Hong Kong. This pilot experience has been adopted across the Chinese mainland. Qianhai took the lead to use Hong Kong's investment and laws, allowing those Hong Kong-invested companies to take Hong Kong's laws as those applicable to civil and commercial contracts. Moreover, eligible Hong Kong lawyers and barristers, who have obtained their practicing certificates after examination, are able to engage in part of the legal services in the nine mainland cities in the Greater Bay Area. In terms of architecture and related engineering professional services, eligible Hong Kong consultant companies, contractors and other professional personnel, are able to provide services in Qianhai after registering their certificates. Corresponding to the related certificates on the Chinese mainland, their services can cover five areas: architecture, engineering, measurement, planning and landscape architecture. 

The Hong Kong SAR government will deliberate with the relevant central government departments on how to utilize the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) to immediately implement Qianhai plan's measures on further opening service trade and help Hong Kong's professional service sector make deployments and arrangements as soon as possible. The Hong Kong SAR government will also work with relevant industries to provide suggestions for and cooperate with the Qianhai cooperation zone in such fields as finance, innovative technology, law and business environment after its expansion.

At the same time, the Hong Kong SAR government will strengthen cooperation with the Guangdong and Shenzhen governments to further support Hong Kong youths in their startups based on the sound foundation of projects such as the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub and the Funding Scheme for Youth Entrepreneurship in the Guangdong-Hong Kong-Macao Greater Bay Area. Thank you.

Phoenix TV:

The modern service industry, and mainly the financial sector, is a competitive industry in Hong Kong and a sector jointly developed by Shenzhen and Hong Kong in Qianhai. What are your considerations for better playing Hong Kong's role as an international financial center and enhancing its cooperation with Qianhai to provide higher-quality financial services for the Guangdong-Hong Kong-Macao Greater Bay Area, or even for the whole country? Thank you.

Chen Wenjun:

Your question is related to the PBC and Hong Kong SAR. As such, I'll invite Mr. John Lee Ka-chiu answer this question first.

John Lee Ka-chiu: 

Thank you for your question. The Qianhai plan stressed that it will further open the financial sector, including carrying out trials in areas such as interconnectivity with Hong Kong's financial markets, cross-border utilization of RMB, and foreign-exchange management facilitation. It also proposed launching a pilot account system that allows settlement in RMB and foreign currencies in the same bank account, so as to provide quality, safe and highly efficient services for market entities. In addition, the plan proposed deepening green finance cooperation between Guangdong, Hong Kong and Macao, and exploring the establishment of unified green finance standards, so as to serve mainland enterprises' fundraising for green projects in Hong Kong and Macao. 

In fact, the Outline of the 14th Five-Year Plan (2021-2025) pledged to support Hong Kong in enhancing its status as an international financial center, to strengthen its functions as a global offshore RMB business hub and an international center for asset management and risk management, and to deepen and expand the interconnectivity between the mainland and Hong Kong's financial markets. Shenzhen's Outline of the 14th Five-Year Plan (2021-2025) also specified that the city will establish a global financial innovation center, including building a global center for innovation capital and a global center for innovation and technology.

Hong Kong and Shenzhen are the hubs and driving engines of the Guangdong-Hong Kong-Macao Greater Bay Area. Under the leadership of the chief executive of the Hong Kong SAR and the secretary of the CPC Shenzhen Municipal Committee, we set up special working groups with Shenzhen municipal government to promote financial connectivity and cooperation between the two cities, thus contributing to the high-quality development of the Greater Bay Area and deepening the reform of the country's financial market.

Financial cooperation between Shenzhen and Hong Kong remains close, and a number of fruitful outcomes were yielded. For example, in terms of interconnectivity, the Shenzhen-Hong Kong Stock Connect has run smoothly and expanded continuously since its launch in 2016. By the end of this July, the cumulative turnover of northbound transactions exceeded 28 trillion yuan, and the cumulative turnover of southbound transactions exceeded HK$8.3 trillion. Since the end of last December, the scope of southbound stocks eligible in the Shenzhen-Hong Kong Stock Connect has been expanded to biotech companies that go public on the Hong Kong stock market under new listing rules, but haven't yet had a record of revenue or profit.

The Hong Kong SAR government will continue to deepen cooperation in the financial services sector with the government of Shenzhen, contributing to the Greater Bay Area and the country as a whole. Thank you.

Hong Kong Bauhinia Magazine:

The general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin specified that the cooperation zone is the area under customs supervision between Hengqin island's "first-line" and "second-line." The ports between Hengqin and Macao shall be subject to the "first-line" administration, and the ports between Hengqin and the rest parts of the mainland shall be subject to the "second-line" administration. What was your consideration in setting up such a new system? What role will it play? Thank you.

Zou Zhiwu:

Thank you for your questions.

The GACC has earnestly implemented General Secretary Xi Jinping's important instructions on Hengqin's opening-up and development, carried out the decisions and plans of the CPC Central Committee and the State Council, and supported the building of the Guangdong-Macao In-depth Cooperation Zone in Hengqin. This general plan specified that the cooperation zone is the area under customs supervision between Hengqin island's "first-line" and "second-line." This posed a new requirement for the customs work.

In fact, in 2011, the "The Reply of the State Council on Relevant Policies of Development of Hengqin" proposed that "the port between Hengqin and Macao should be set as a 'first-line' management, and the port between Hengqin and the mainland should be set as a 'second-line' management." This time the general plan has further clarified the two-line management system, mainly for the continuous implementation of filing management for goods entering and leaving through the first line, and further simplifying declaration procedures and factors. Except for goods and articles that are not tax-exempted or bonded as specified by national laws and administrative regulations, other goods and articles may be tax-exempted or bonded into the cooperation zone.

The implementation of two-line management can give better play to the unique policy and institutional advantages of the cooperation zone. And this is conducive to building a new, sophisticated system to ensure integrated openness with Macao. Likewise, this promotes rational and diverse economic development in Macao, fosters an industrial connection between Hengqin and Macao, and allows for the flow of personnel between Hengqin and Macao, in particular, for Macao residents to enter and exit the cooperation zone conveniently, so that it can truly become a new space where Macao residents live and find employment – all while becoming a new model of "one country, two systems", as well as a high ground for building the Guangdong-Hong Kong-Macao Greater Bay Area.

As you all know, Guangdong and Macao belong to different customs areas, and so too do they have different tariff levels, prohibition and control systems, inspection and quarantine, as well as other laws and regulations. This requires the customs and relevant administrative departments of the two localities to find a set of common or mutually recognized rules and standards for the cooperation zone. It also requires customs to support and service the construction of the cooperation zone, facilitating "hard connectivity" between infrastructures and "soft connectivity" of regulatory rules and standards.

Next, the General Administration of Customs and relevant departments of the State Council will take into account the opinions of all sectors of the Macao SAR and relevant parties of Guangdong province, with an eye towards strengthening the connection and coordination with the Macao Customs Service and relevant administrative departments, intensifying efforts to innovate the regulatory system, tailoring a regulatory system and matching supportive measures to enhance regulation while optimizing services in the cooperation zone, earnestly implementing them, and striving to properly play customs' role in building the cooperation zone. Thanks.

Chen Wenjun:

The previous questions raised by Phoenix TV involve two aspects. Mr. John Lee Ka-chiu has replied, and we now invite Mr. Pan Gongsheng to add some more details.

Pan Gongsheng:

Thank you. Mr. John Lee Ka-chiu from the Hong Kong SAR has already given good answers to the questions raised by the reporter. Let me add something. As you all know, Hong Kong is a major international financial center. It has a highly open business environment, an in-depth financial market system, a complete financial infrastructure and an international financial supervision system. It has been the world's freest economy for 25 consecutive years. It is the world's largest offshore renminbi (RMB) market, the fifth-largest stock market and foreign exchange trading center, the third-largest bond market in Asia, and the largest fund management and private wealth management center in Asia. Since 2019, international funds have continued to flow into Hong Kong's financial market, the exchange rate of the Hong Kong dollar has remained stable, the scale of IPOs ranks among the top in the world, and Hong Kong's status as an international financial center has been continuously consolidated.

The People's Bank of China will follow the "one country, two systems" principle and the unified deployment of the CPC Central Committee and the State Council, to thoroughly implement the national 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. Qianhai will be coordinated to further experiment and showcase financial openness and boost Hong Kong's role as an international financial center, in order to provide high-quality financial services for the Greater Bay Area and the whole country.

First, we will leverage Hong Kong's status as an international financial center to promote the internationalization of the RMB. As an international financial center, Hong Kong has a large number of global financial institutions. At present, Hong Kong's RMB fund pool exceeds 800 billion yuan, which provides important support for the promotion of RMB internationalization. In the future, the cross-border RMB business innovation pilot program will be trialed in Qianhai, which will help expand the depth and breadth of Hong Kong's offshore RMB business and consolidate Hong Kong's position as the world's largest offshore RMB market.

Second, we will accelerate the interconnection of the financial markets of the mainland and Hong Kong. The Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect established between the mainland and Hong Kong provide convenient and efficient channels for foreign investors to invest in the mainland's capital and bond markets. At present, more than 70percent of mainland stocks held by foreign investors are purchased through the Shanghai- and Shenzhen-Hong Kong Stock Connects. In the future, the Qianhai cooperation zone can continue to play a pioneering role in connecting the financial markets of the Chinese mainland and Hong Kong.

Third, we will promote cooperation between the mainland and Hong Kong in green finance, technology finance, financial technology, financial innovation, and financial supervision.

Fourth, we will treat Qianhai as a test field for implementing the negative list of the financial industry and connecting with international standards. We will gradually build a financial rules system that is in line with international standards, promote the integrated development of financial rules, and lead China's financial opening up to the outside world. Thanks.

Chen Wenjun:

Last question, please. 

Shenzhen TV:

General Secretary Xi Jinping had stressed that it is necessary to make full use of the major cooperation platforms between Guangdong, Hong Kong and Macao to attract more young people from Hong Kong and Macao to study, work and live in the mainland, while promoting extensive communication, comprehensive exchanges, and in-depth integration among young people from the three areas, and strengthening their solidarity with the whole nation. What have the Hengqin and Qianhai cooperation zones done to promote the entrepreneurship and employment of Hong Kong and Macao youths? And how will the implementation of plans benefit more Hong Kong and Macao youths in the future? Thank you.

Chen Wenjun:

Your questions may concern Guangdong, Hong Kong and Macao. First, we invite Mr. Cheong Weng Chon to answer.

Cheong Weng Chon:

Thank you, Mr. Chen. Hengqin is Macao's starting point for its participation in the development of the Greater Bay Area and its integration into national development, according to the policy address for the fiscal year 2020 of the Macao SAR government. This new area provides the most convenient and suitable space for Macao's diverse economic development, as outlined in the policy address. In recent years, the Macao SAR government has supported young entrepreneurs looking to work or start a business in Hengqin. As of this May, incubators including Macao-Hengqin Youth Entrepreneurship Valley (Inno Valley HQ) and Hengqin International Science and Technology Innovation Center have incubated 537 projects from Macao, and another 121 are currently under incubation. A project to support youth entrepreneurship and innovation, as well as platforms for advisory services and experience sharing, have facilitated cooperation between young people from Macao and the Greater Bay Area. A strategic position of the Guangdong-Macao in-depth cooperation zone in Hengqin is a new space that makes Macao residents' life and employment more convenient. The Macao SAR government is finding more ways for young people in Macao to work, start a business and live in the cooperation zone. We will continue supporting young people with innovative visions and those who want to work or start a business in the zone.

According to the general plan of building the Guangdong-Macao in-depth cooperation zone in Hengqin, four major industries will be prioritized including sci-tech research and development and high-end manufacturing to help Macao foster a more diverse industrial landscape. This will also offer Macao's young people more diversified employment opportunities and broader space for their development in Hengqin. Thank you.

Chen Wenjun:

Mr. John Lee Ka-chiu, please.

John Lee Ka-chiu:

Thank you. The Hong Kong SAR government welcomes the plan for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. In particular, we welcome the policy that makes it more convenient for young people from Hong Kong and Macao to study, work, stay, live, and start a business in the cooperation zone.

Young people represent the future, are a source of hope and stand as a pillar of society. They also drive long-term social and economic development. The Hong Kong SAR government pays close attention to the vitality of youth communities and has launched projects to facilitate exchanges, study, employment, and entrepreneurship for young people. We encourage them to broaden their horizons, understand our country's development through hands-on experience, and seize opportunities.

In terms of entrepreneurship, innovation and business startups are booming on the mainland this year, bringing numerous opportunities for Hong Kong's young people. Many Hong Kong companies have developed their businesses in Qianhai. Increasingly improved supportive measures have attracted a number of young people from Hong Kong to start businesses at the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub (the Qianhai "dream works") and other bases for innovation and entrepreneurship. These bases have incubated many successful enterprises and are quite popular among Hong Kong's young business leaders. The Hong Kong SAR government has launched the Funding Scheme for Youth Entrepreneurship in the Guangdong-Hong Kong-Macao Greater Bay Area. It aims to offer entrepreneurial support and incubation services, as well as start-up capital to young Hong Kong residents who intend to start a business in Hong Kong and in mainland cities across the Greater Bay Area.  

In terms of employment, with support from the Guangdong provincial government, the Hong Kong SAR government launched the Greater Bay Area Youth Employment Scheme early this year to encourage and support Hong Kong university graduates to seize opportunities for career development in mainland cities in the Greater Bay Area (including Qianhai). The scheme has been met with an enthusiastic response, collecting nearly 3,500 job vacancies and more than 20,000 applications. Over 800 graduates have found jobs through the scheme, of which 530 are working in Shenzhen. The Hong Kong SAR government will proactively request feedback from both employers and employees to ensure the scheme achieves its intended results.

In terms of exchanges and internships, the Hong Kong SAR government will continue to optimize and expand various programs for both of these fields, in order to help young people better understand the national condition, as well as the job market, workplace culture, living environment and development opportunities on the mainland.

Looking forward, Qianhai will continue offering Hong Kong's younger generation excellent opportunities, and the Hong Kong SAR government will consistently improve relevant programs to help them better integrate into the country's overall development. Thank you.

Chen Wenjun:

Last but not least, Mr. Lin Keqing will give his answer.

Lin Keqing:

In recent years, we have been supporting young people across Hong Kong and Macao to work or start a business in Guangdong province through key platforms such as Hengqin and Qianhai. I will focus on three aspects in this regard.

First, we established and constructed platforms such as the "1+12+N" bases, which help young people from Hong Kong and Macao with innovation and entrepreneurship. For example, platforms such as the Qianhai "dream works" and Inno Valley HQ have fostered ideal hard environment and soft environment, which can provide Hong Kong and Macao's young people with a wide range of services, including exchanges, training, incubation, display and match-making.

Second, we implemented a series of policies to help Hong Kong and Macao's young people thrive. The policies include recruiting Hong Kong and Macao residents to government units and public institutions, mutually recognizing professional qualifications, coordinating social security schemes, and putting in place preferential individual income tax rates. All these will offer Hong Kong and Macao's young people more employment opportunities in Guangdong. In addition, we implemented policies to ensure they have equitable access to entrepreneurship and employment opportunities. We introduced specialized measures to support Hong Kong and Macao's young people as they navigate entrepreneurship, employment, and life in the cooperation zones. Those measures include "Measures to Support Hong Kong and Macao Young People with their Development in Qianhai" and "Interim Measures to Further Support Macao Young People with Innovation and Entrepreneurship in Hengqin."

Third, we promoted exchanges to give Hong Kong and Macao's young people a better understanding of the mainland. We organized activities such as the Guangdong-Hong Kong-Macao Greater Bay Area Internship Program for Macao Youths and the Career and Internship Fair for University Students in Guangdong-Hong Kong-Macao Greater Bay Area. Likewise, we held start-up competitions such as "Community Entrepreneurs Cup" and "Makers in Guangdong" to attract more young people from Hong Kong and Macao, and encourage them to pursue programs in Guangdong. In addition, we organized publicity activities, entrepreneurship training, salons and job fairs to inspire Hong Kong and Macao's young people to participate in the development of the Greater Bay Area and find their place in the country's overall development.

Next, we will implement decisions and plans made by General Secretary Xi Jinping and the CPC Central Committee on developing the two cooperation zones, further improve policy systems and enhance policy coordination. We will upgrade platforms to attract resources and optimize services to increase efficiency. Through these measures, we aim to achieve more high-quality outcomes in helping Hong Kong and Macao's young people with their entrepreneurship and employment. Thank you.

Chen Wenjun:

Thank you, all the speakers. Thank you, friends from the media. That's all for today's press conference.

Translated and edited by Wang Yiming, Wang Qian, Zhu Bochen, Yuan Fang, Cui Can, Chen Xia, Qin Qi, Huang Shan, Dong Qingpei, Ma Yujia, Duan Yaying, Zhang Rui, Gong Yingchun, Wang Yanfang, Zhang Tingting, Liu Sitong, Zhang Liying, Li Xiao, David Ball, Jay Birbeck, Pittock Drew Anthony. 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:

Wang Wentao, minister of commerce

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

Qian Keming, vice minister of commerce

Chairperson:

Chen Wenjun, head of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

Aug. 23, 2021

Chen Wenjun:

Ladies and gentlemen, good morning! Welcome to this press conference from the State Council Information Office (SCIO). The Ministry of Commerce (MOFCOM) has played an active part in building a moderately prosperous society in all respects. Today, we are delighted to be joined by Mr. Wang Wentao, minister of commerce; Mr. Wang Shouwen, vice minister of commerce and deputy China international trade representative; and Mr. Qian Keming, vice minister of commerce. They will share relevant information and answer your questions. First, let's give the floor to Mr. Wang Wentao.

Wang Wentao:

Friends from the media, ladies and gentlemen, good morning! I am very glad to be attending this SCIO press conference today. First of all, I would like to extend my appreciation to you for your long-term attention to and support for China's commerce work.

At the ceremony marking the centenary of the Communist Party of China (CPC), General Secretary Xi Jinping announced that we have realized the first centenary goal of building a moderately prosperous society in all respects. This historic achievement made by the Chinese people under the CPC's leadership is a key milestone in our socialist modernization drive.

The commerce work connects China with the world, links urban and rural markets, and concerns each and every household. It has also played an important role in building a moderately prosperous society in all respects. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's commerce work has made historic achievements and undergone significant reforms. China has further consolidated its position as a major economy and trading nation, and is accelerating its move toward becoming a quality economy and trader. While being the world's second largest consumer market and largest trading nation, China also leads the world in paid-in foreign investment and outbound investment with growing global economic governance capacities, which in turn promote economic prosperity, social development and the people's well-being. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the commerce system bears in mind the country's most fundamental interests and carries out the "four commitments."

Next, I would like to share with you some information about our commerce work.

First, we are committed to expanding domestic demand as a strategic priority to foster a strong domestic market. China enjoys the advantage of a unique and super-sized market with a population of 1.4 billion people and a 400-million strong middle-income group. Domestic demand is a fundamental driver of China's economic growth and its expansion is essential to meeting people's aspirations for a better life. We have driven innovation in circulation by creating 15-minute community service circles for the convenience of residents, upgrading pedestrian streets, transforming the retail sector, promoting the innovative development of commodity markets, improving cold-chain logistics facilities for agricultural products, enhancing the urban and rural logistics distribution system, and advancing the standardization of commercial circulation to make it smoother and more convenient. We have upgraded consumption by boosting the consumption of goods such as cars and home appliances, and services such as catering and housekeeping. We have recently announced five leading cities for developing into international consumption centers. Meanwhile, we have strengthened commercial systems in counties and boosted rural consumption. We have worked to ensure emergency supplies. In response to unexpected situations, such as the recent floods and sporadic coronavirus cases, we enhanced the joint supply security mechanism to ensure market supplies. In 2020, the total retail sales of consumer goods reached 39.2 trillion yuan. Consumption has been the strongest engine driving economic growth for many years.

Second, we are committed to expanding high-level opening-up to promote high-quality development. Opening-up is the only way for China to achieve national prosperity. Driven by greater opening-up, reform and development holds the key to China's continual development achievements. High-quality development requires a high-level of opening-up. We continue expanding the scope of opening-up and further broadening market access. The negative list for foreign investment has been shortened from 93 to 33 items. We have also raised foreign equity caps in areas including the automotive, finance and securities sectors. We have launched comprehensive pilot demonstration programs for wider opening-up in the services sector. We have actively built new highlands and platforms for opening-up, pushed for the establishment of 21 pilot free trade zones and the high-quality development of the Hainan Free Trade Port while promoting the innovative upgrading of national economic development zones. We ensured the success of major expos such as the China International Import Expo, Canton Fair, China International Fair for Trade in Services, and China International Consumer Products Expo. We have accelerated institutional opening-up and improved systems and mechanisms commensurate with new business types and models such as cross-border e-commerce. We have promulgated the Foreign Investment Law and regulations for its implementation, implemented a pre-establishment national treatment plus negative list management system nationwide. We aim to align with international rules and advance trade and investment liberalization and facilitation.

Third, we are committed to serving the people through commerce and contributing to the victory in eradicating poverty. Winning the fight against poverty is the most daunting and complex task for achieving moderate prosperity in all respects. We have been upholding a people-centered development philosophy in the commerce work. On one hand, we have leveraged the strengths of commerce and introduced measures in five commerce-related areas of e-commerce, housekeeping services, overseas labor services, industrial growth and border trade. On the other, we have actively cooperated with other countries and international organizations to channel more development aid to impoverished regions in central and western China to support local industrial development.

Fourth, we are committed to pursuing mutually beneficial cooperation and common development under the vision of building a community with a shared future for mankind. We have pressed ahead with the Belt and Road cooperation by intensifying trade and investment cooperation with partner countries and forging closer business and cultural exchanges, so that all countries can enjoy new development opportunities and broader markets, and share in the dividends of China's reform and development. Through our well-implemented cooperation and foreign aid projects, we have provided assistance within our ability to developing countries, notably the least developed countries, as part of our efforts to implement the vision of building a community with a shared future for mankind. We have played an active part in international economic governance, put forward China's proposals and contributed Chinese wisdom to multilateral meetings such as the G20, APEC and BRICS. We firmly uphold the multilateral trading system with the WTO as the core and are striving to build an international network of high-standard free trade zones.

Looking ahead, we will march forward on the new journey toward fully building a modern socialist country. The positioning of the commerce work can be summarized in three important aspects, that is, commerce work, as an important part of the domestic circulation and an important link between domestic and international circulations, plays an important role in building a new development paradigm. Commerce work is an important part of the domestic circulation as it includes domestic trade. The position as an important link between domestic and international circulations involves foreign trade, foreign investment and domestic trade. Our work can play an important role in building a new development paradigm. Ahead of us are heavy responsibilities and a noble mission. We will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, ground our work in the new stage of development, and fully and faithfully apply the new development philosophy. With our focus on the positioning in the above three important aspects, we have introduced a portfolio of "5+5" measures for this year's work. Specifically, for smoother domestic circulation, we will take five measures of elevating traditional consumption, fostering new types of consumption, upgrading consumption platforms, optimizing distribution networks, and developing stronger distributors. To promote international and domestic circulations, we will also make efforts in five aspects of keeping the fundamentals of foreign trade and foreign investment stable, deepening Belt and Road economic and trade cooperation, promoting the integration of domestic and foreign trade, developing high-standard opening-up platforms, and strengthening multilateral and bilateral trade and economic cooperation. To sum up, the three important aspects will be implemented through the five measures in domestic circulation and another five in international and domestic circulations, which together constitute our fundamental tasks this year.

Next, my colleagues and I will answer your questions. Thank you.

Chen Wenjun:

Thank you, Mr. Wang. The floor is now open for questions. Please identify your news outlet before asking your questions.

CCTV:

During the historic transformation from secure access to food and clothing to a decent life, and finally, to moderate prosperity, China's consumption structure has shifted focus from consumption for survival and a decent life to consumption for an affluent life and enjoyment. What measures have been taken by the MOFCOM to upgrade consumption, and what measures will be adopted in the future? Thank you.

Wang Wentao:

I will answer your questions. Consumption is an important engine driving growth and reflects people's need for a better life. Since the 18th CPC National Congress, the MOFCOM has resolutely implemented the strategy of expanding domestic demand. Here I will present you some data. In terms of scale, China's total retail sales of consumer goods grew from 20.6 trillion yuan in 2012 to 39.2 trillion yuan in 2020, up by 8.4% per annum on average. China has become the world's second-largest consumer market, second only to the United States. In terms of structure, people's level of consumption and quality of life have been greatly improved, which I think has been witnessed by everyone here. Here are some figures. Every 100 households have 121 color TV sets, 102 refrigerators, and 254 mobile phones. Our service consumption has grown rapidly. Though hit hard by the epidemic, it still accounted for 50.1% of total consumption spending last year. Along with the improvements in the quality of life, consumption upgrading has been continuously accelerated. We have seen that new areas of consumer spending continue to emerge in service consumption and new consumption patterns, such as digital consumption, cultural consumption, tourism consumption, and health consumption. Nowadays, some new business formats and models are often referred to as consumption scenarios. Different consumption scenarios keep evolving and innovating. Next, the MOFCOM will adapt to consumption trends and make efforts in the following aspects:

First, we will upgrade traditional consumption, which has a huge potential. Home appliances, furniture, automobiles, and catering are the top four popular consumption products, accounting for about 25% of the total retail sales of consumer goods. Take automobile consumption for example, we will promote the shift from purchase management to usage management for automobiles, especially expanding the distribution of second-hand cars. These days I have paid special attention to second-hand cars. One of the rules of international automobile consumption is that when vehicle holding reaches a certain number, the market of second-hand automobiles will see a significant rise in trade volume. Therefore, the second-hand market will grow bigger in the future, promoting both sequential consumption and circular consumption. We encourage the recycle of home appliances and furniture in the regions with suitable conditions, as well as exchanging old for new. We also support innovation of the catering industry's operational model and improvement in service quality to further expand catering consumption. More attention should also be paid to the preservation and innovation of time-honored brands, brand consumption, and especially new business formats and models, including the "China-Chic" economy, which has attracted many young people.

Second, we will accelerate the fostering of new consumption patterns. The pandemic has buoyed some new consumption patterns dominated by online consumption, with many innovative changes. So, we must accelerate the fostering of new consumption patterns, including smart shops, contactless delivery, house call services, and other new business formats and models. Meanwhile, we encourage traditional circulation enterprises to create new consumption scenarios which are immersive, experiential, and interactive. When going shopping in Beijing, I often find some new, exciting, and refreshing consumption patterns. There are many creative internet-famous sites in districts with distinctive features. All these are new and dynamic growth areas.

Third, we will upgrade consumption platforms. Through the innovation and development of consumption platforms, we will connect points, lines, and planes and finally combine the expansion of consumption with the improvement in people's living standards. I just said that we are fostering five international consumption centers, namely Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing. Meanwhile, we will promote high-quality upgrading of pedestrian streets and develop business districts and districts with distinctive features. This May, we worked with relevant departments to launch a nationwide campaign of Consumption Promotion Month, which was a great success. Next, while making an all-out effort to contain the epidemic, we will launch more campaigns and adopt a series of policies and measures to further boost consumption based on its characteristics. We will also promote shopping festivals to attract consumers and boost the market and the business, meet diversified demand at various levels, and adapt to the trends to promote the upgrading of both consumption structure and capacity. Thank you.

Economic Daily:

Since the 18th CPC National Congress, China's open economic system has been continuously improved, providing strong support and guarantees for China's opening up to the outside world and the building of a moderately prosperous society in all respects. The Fifth Plenary Session of the 19th CPC Central Committee made arrangements for developing new systems for an open economy with even higher standards. How will the Ministry of Commerce implement these arrangements and promote institutional opening up? Thank you.

Wang Wentao:

Opening up is an important feature of the socialist system with Chinese characteristics. It's a broad question, so let me answer it.

In the process of building a moderately prosperous society in all respects, especially since the 18th CPC National Congress, we have opened to the outside world in a wider and deeper manner. Some high-level open systems have basically taken shape. For example, in terms of law, the foreign-related economic and trade legal system has been gradually improved. In terms of management, the management system, policy system, and security guarantee system have also become more complete. A market system that is relatively unified, open, competitive, and orderly has gradually taking shape. Opening up is a kind of reform in itself. In the next step, we need to promote reform with determination, courage and responsibility and deepen reform by opening up and accelerate the transition from opening up based on flows of goods and factors of production to opening up based on rules and related institutions. We will further push forward the continuous improvement of the new systems for an open economy with higher standards in the following three aspects.

First, we will scale up efforts to improve free trade zones and ports. Since their establishment, pilot free trade zones have served as good models of reform and opening up. At the national level, we have rolled out 278 institutional innovations. Meanwhile, the Hainan Free Trade Port is also under steady construction. We have reached a consensus and pinpointed our targets. In the next step, we will promote our opening up in accordance with a higher standard of international economic and trade rules. We may apply high-level economic and trade rules in some areas with favorable conditions and conduct stress tests. Testing helps boost our opening up efforts. After detailed analysis, some economic and trade rules can be directly implemented when the conditions become favorable. Some must be ratified and then implemented, such as the Regional Comprehensive Economic Partnership (RCEP). We take high-standard economic and trade rules as references to promote further opening up. We will also further cut the negative list on foreign investment in the pilot free trade zones. We have been exploring and working hard in these aspects.

Second, we will improve the balance in opening up our different regions. We will further promote major regional strategies and regional coordinated development strategies and strengthened inter-regional connections, including coordinating coastal and inland areas and connecting the eastern and western regions. In particular, there is great potential for opening up in the central and western regions as China further deepens opening up. China has a vast territory, and there is a lot of room for development in the central and western regions. This year, in accordance with General Secretary Xi Jinping's requirements for enabling exhibits to become traded goods and exhibitors to spot more investment opportunities at the China International Import Expo (CIIE), we launched a series of investment promotion events for the CIIE, so that CIIE exhibitors can learn more about the market and investment environment of China's central and western regions. The first promotional event was held in Sichuan province and next, we will launch a series of activities to promote the linkage between the east, west, central areas and northeast China. Considering the transfer of some industries and the expansion of the market, we will also accelerate the innovation and development of border trade, speed up the construction of border economic cooperation zones and cross-border economic cooperation zones, and step up the opening of border areas to the outside world.

Third, we will improve the security guarantee system for the open economy. Development is the foundation of security, and security is the bottom line at all times. We must keep security in mind and accelerate development on the basis of security. The more open we are the more attention we must pay to security. We will improve the level of supervision, ensure the security of the industrial chain and the supply chain, properly resolve economic and trade frictions, and forestall and defuse major risks.

ThePaper.cn:

In recent years, there have been a growing number of free trade agreements in the world. How is the development of China's free trade agreements coming along? What role do they play? What are the future plans?

Wang Wentao:

Mr. Wang Shouwen will answer this question.

Wang Shouwen:

Thank you for your question. Indeed, currently, international free trade agreements are flourishing. According to WTO statistics, more than 350 free trade agreements have been reached so far. It is particularly noteworthy that some large free trade agreements have been signed and entered into force. For example, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the RCEP, the EU-Japan Economic Partnership Agreement, and the U.S.-Mexico-Canada Agreement are all large-scale free trade agreements. Under the correct leadership of the CPC Central Committee and the State Council, we have followed the general trend of international regional economic integration, actively carried out free trade agreement negotiations with trading partners and made great progress. In 2002, China's first free trade agreement, the free trade agreement reached with ASEAN, enabled us to embark on a new journey of free trade agreements. So far, we have successfully negotiated19 free trade agreements and signed agreements with 26 countries and regions.

It is worth mentioning that since the 18th CPC National Congress, we have signed nine free trade agreements (FTAs), including eight with individual countries, such as the Republic of Korea (ROK), Australia and Switzerland, and the Regional Comprehensive Economic Partnership (RCEP) agreement. Meanwhile, we've upgraded existing free trade agreements, including the China-ASEAN FTA, and proceeded with negotiations on upgrading the China-Chile FTA, the China-Singapore FTA, and the China-New Zealand FTA. These are all very important works.

You asked what important role FTAs have played for our country. I should say that the role is very clear. First, the FTAs play a significant role in expanding trade and investment relations with our free trade agreement partners and stabilizing the overall performance of foreign trade and foreign investment. For example, trade volume with its FTA partners accounted for only 12.3% of China's total foreign trade in 2012, but last year, the proportion rose to nearly 35% of the total. Last year, the epidemic had a great impact on global trade, however, China's trade with its FTA partners grew by 3.2%, while trade with non-FTA partners only increased by 0.8%. Therefore, FTAs play a very significant role in foreign trade. In terms of investment relations, last year, nearly 70% of China's outbound investment was to its FTA partner countries and 84% of foreign investment in China was from FTA partners. Therefore, FTAs play a very significant role in investment relations.

Second, FTAs have further deepened economic and trade relations with FTA partners. For example, bilateral trade between China and the Association of Southeast Asian Nations (ASEAN) was only more than $78 billion in 2003, however, the figure reached $685.1 billion last year, an increase of 8.7 times. If there are no FTAs, trade cannot grow so much. China has remained ASEAN's largest trading partner for 12 consecutive years. In 2020, ASEAN also became China's largest trading partner. Take another example - Chile. Chile's trade with China accounted for 20%, or one-fifth, of its total foreign trade in 2012, compared to one-third last year. This goes to show just how effectively the FTA and the FTA upgrade have worked to promote trade between the two countries. Pakistan is another example. We inked the China-Pakistan FTA in the past, with a low level of trade liberalization. We upgraded the FTA the year before last. After the upgrade, the level of liberalization has increased. Pakistan's exports to China have grown rapidly, and the trade imbalance between China and Pakistan has also been narrowed.

Third, FTAs have greatly promoted China's opening-up. In terms of trade in goods, China has an average most-favored-nation tariff rate of 7.5%. Under FTAs, China and its trading partners implement zero tariffs on 90 percent of products, so the level of tariff liberalization in goods trade is very high. In terms of trade in services, of the 160 services sub-sectors under the 12-sector WTO classification, China committed to opening up 100 sub-sectors under 9 sectors when entering the organization. By promoting free trade agreements, we have greatly enhanced the openness of trade in services. Take the RCEP agreement as an example. China added 22 new services sectors to the 100 sectors it committed to open upon its accession to the WTO, and raised the level of openness of 37 sectors. In terms of investment, there are no agreements regarding investment openness in the WTO. The FTAs have created many rules regarding investment openness, investment market access, investment facilitation, and investment protection, which will help develop mutual investment between China and its FTA partners, and advance regional integrated development to form more stable industrial and supply chains.

We will further expand opening-up by signing more free trade agreements and upgrading our existing free trade agreements. In accordance with the decisions and deployments of the CPC Central Committee and the State Council, we will step up our efforts to build a network of high-standard free trade zones, which focuses on neighboring economies, radiates across the Belt and Road Initiative-related economies, and has a global reach. Next, we will upgrade our existing free trade agreements, including the China-Singapore FTA and the China-ROK FTA. At the same time, we will accelerate negotiations on new agreements, including the China-Japan-ROK FTA, China-Gulf Cooperation Council FTA, China-Israel FTA and China-Norway FTA. We are actively considering joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). We will thoroughly implement the decisions and deployments of the CPC Central Committee. Thank you.

China Daily:

According to the website of the World Trade Organization (WTO), the organization's 12th Ministerial Conference will be held in November. The WTO is now facing challenges, and all parties have paid close attention to how the WTO will get through the difficulties. My question is that after the 18th CPC National Congress in 2012, what role has China played in safeguarding the multilateral trading system? Additionally, what achievements can we expect from the 12th WTO Ministerial Conference? Thanks.

Wang Wentao:

Your question is a timely and professional one. All parties have attached great importance to it. This question goes to Mr. Wang Shouwen.

Wang Shouwen:

Thanks for your question. Just as you mentioned, the WTO is currently facing severe challenges, and is in a difficult situation. For example, the WTO Appellate Body has been paralyzed, making it quite hard to defend justice in international trade. In terms of facilitating trade negotiation, it's not easy to reach multilateral trade agreements now. In particular, some countries have politicized trade issues and taken unilateral and protectionist trade measures, greatly undermining the efficacy and authority of the multilateral trading system. As a responsible member of the WTO, China has always been an active participant in all the work and trade negotiations of the WTO since it joined the organization. China was and remains committed to supporting the multilateral trading system and has actively participated in relevant reforms to the WTO. China is an active participant, strong supporter and major contributor in the multilateral trading system. 

You asked about the work we have done in the WTO since the 18th CPC National Congress. Let me give you an example. In 2013, China actively participated in the WTO Ministerial Conference held in Bali, Indonesia, and worked hard towards the conclusion of the Trade Facilitation Agreement. The full implementation of the agreement has successfully cut the cost of international trade by around 14%. In 2015, China took an active part in the WTO Ministerial Conference in Nairobi, during which we agreed to eliminate export subsidies for agricultural products, which was a boon for agricultural trade liberalization. Also, during this conference, as an important participant, China actively pushed for the conclusion of an agreement on expanding the products covered by the Information Technology Agreement, involving a global trade volume of over one trillion U.S. dollars. This was a significant contribution. In addition, China has played an active and important role in advancing negotiations on topics including investment facilitation, e-commerce, and micro, small and medium-sized enterprises.

General Secretary Xi Jinping has reaffirmed on many international occasions China's commitment to firmly upholding WTO rules, supporting necessary reforms to the WTO and jointly safeguarding the multilateral trading system with other members. China has made great efforts towards reform of the WTO. In June of 2018, a white paper titled "China and the World Trade Organization" was released, explaining China's concrete measures to support the multilateral trading system. In November of 2018, China released its position paper on WTO reform, outlining three principles and five suggestions for reform. In May of 2019, China submitted its WTO reform proposals for concrete actions concerning 12 topics in four areas. This is also the first reform proposal submitted by a developing country to the WTO. In November of 2019, China hosted the Informal WTO Ministerial Meeting in Shanghai and encouraged all parties to reach an important consensus on safeguarding the multilateral trading system. China, the European Union and other WTO members agreed last April on an interim appeal arbitration arrangement while the organization's Appellate Body remains incapable. In other multilateral mechanisms of global governance, including the G20, APEC and the BRICS, China has also advocated to support the multilateral trading system. On all such occasions, China has stated its position on building an open world economy and a community with a shared future for mankind. 

The 12th WTO Ministerial Conference you mentioned will be the first in four years. The last Ministerial Conference took place in Argentina in 2017. There are many expectations for the upcoming conference. In our opinion, the extent to how many achievements will be made during the conference is of great significance to enhancing the WTO's image and the international community's confidence in the WTO. We expect that achievements will be made in negotiations on fishing subsidies and the fight against COVID-19. We hope there will be some arrangements regarding the reform of the Appellate Body. We are also looking forward to positive progress in service domestic regulation, investment facilitation and e-commerce. Such outcomes will all help enhance the international community's confidence in the efficacy and authority of the WTO. To achieve these, we will support Ngozi Okonjo-Iweala, the Director-General of the WTO, in organizing and coordinating effective negotiations among WTO members, to achieve practical progress and fully demonstrate the organization's value and role. 

This year marks the 20th anniversary of China's accession to the WTO and also the start of the 14th Five-Year Plan. China will open its door even wider to the world. We will work, in line with the arrangements made by the CPC Central Committee, to propose China's suggestions and approaches for WTO negotiations and reform. In addition to accelerating the building of the new development paradigm and the promotion of high-level opening-up, we will join hands with our trade partners across the globe to make economic globalization open, inclusive, balanced and beneficial to all. Thanks.

International Business Daily:

Convenience is a new demand for people seeking a better life, which is also an important sign of moderate prosperity in all respects. What work has the Ministry of Commerce done to improve the circulation network and facilitate household consumption? In which areas will further efforts be made in the future? Thank you.

Wang Wentao:

Thank you for your questions. I will answer them. Circulation is connected to production at one end and consumption at the other, and it has a fundamental and leading role in the national economy. The development of China's circulation industry has been very rapid, making big steps, especially in terms of internationalization, standardization, intelligence, intensification, and informatization. It is moving relatively fast, and in some aspects, it is leading the world. Our circulation efficiency is improving while costs are gradually decreasing. In 2020, for the total logistics cost for the entire society – that means, total logistics costs as a percentage of GDP of China – dropped to 14.7%, which is a decrease of 3.3% compared with 2012. Chain operation, e-commerce, logistics and distribution, smart stores, contactless distribution, unmanned retail, and other new business formats and models continue to emerge, some of which represent forced model innovations due to the COVID-19 pandemic and other situations. Many of these innovations are ahead of the rest of the world. Circulation efficiency is as important as production efficiency, and it is an important aspect of improving the overall operating efficiency of the national economy.

The developments mentioned above are indeed good, but we will also see some problems and shortcomings during development. Although the share of total national logistics costs in China's GDP has dropped to 14.7%, it is still relatively high compared to those of developed countries. So we may encounter logistics costs that are relatively high, and that enterprises' complaints are also relatively strong. Next, we will be problem-oriented to make up for these shortcomings, strengthen the weaknesses, and make efforts in the following aspects.

First, in rural areas, we will launch county-level commercial system construction campaigns. Rural commerce still has great potential, but it is constrained due to shortcomings in circulation. For example, logistics coverage and express deliveries cover 99.7% of areas at the township level but only a little over 50% at the village level. This shortcoming restricts the further development of rural consumption. We propose to promote the construction of a rural commercial system based on the principles of "county-level overall planning, with counties as the center, towns as the focus, and villages as the foundation." Additionally, we'll encourage and promote the "three sinks" by market-based means: the sinking of the supply chain of enterprises to small-town and rural markets, which mainly encourages the marketing network of large-scale circulation enterprises to extend to the countryside and provide distribution and standardized procurement for some small merchants serving millions of households in rural areas; the sinking of logistics and distribution to small-town and rural markets, including the integration of resources in e-commerce distribution, postal services, supply and marketing, and the express delivery, as we encourage them to sink further; and the sinking of commodities and services to small-town and rural markets so that rural commodity consumption can adapt to the characteristics of rural areas. Service consumption is a shortcoming worth singling out among all the shortcomings in rural areas, and we must continue to strengthen it, including by providing better after-sales service. By encouraging the "three sinks," we realize the building of the rural commercial system, which are the sinking of the supply chain of enterprises, the sinking of logistics, and the sinking of goods and services.

Second, in terms of urban areas, in addition to building international consumer cities, business districts, pedestrian streets, and characteristic urban neighborhoods, we will also extend the "last mile to your home" development, i.e. the community, to create convenient living circles that people can reach within 15 minutes from their residence. We will accelerate the construction of wet markets, convenience stores, and comprehensive community service centers. We will accelerate the development of branding and chaining convenience stores, support enterprises in their digital transformation, innovate business models, promote convenient consumption, and push forward the construction of standardized wet markets.

Third, we will improve commercial circulation facilities. We will mainly focus on shortcomings to exert our strength. Currently, the shortcoming worth singling is cold chain logistics. The cold chain circulation rate of meat in China is only 30%, and that of fruits and vegetables is less than 20%, while that of developed countries is more than 90%. Therefore, our next step is to promote cold chain logistics for agricultural products, speed up the construction of cold chain logistics, and make up for these shortcomings.

Fourth, we will strengthen emergency guarantees. After the COVID-19 outbreak, the Ministry of Commerce, in accordance with the requirements of the central government, worked with relevant government departments, commissions, and localities to form a nine-province joint supply and guarantee mechanism to ensure the supply of daily necessities in Hubei province and Wuhan city. Recently, as we witnessed new outbreaks of the pandemic in various places, coupled with floods in some places, media outlets reported that there were some instances of panic buying and that the supply of materials encountered some difficulties. In addition, due to the pandemic prevention and control measures, logistics has not been so smooth or even blocked in some places for a short period of time, resulting in some particular supply shortages. In response, we immediately launched a joint guarantee and supply mechanism, with localities as the main body, strengthening the supply of materials in various regions. Then, things tended to return to normal quickly, ensuring that people could go on with their daily lives. Next, we will try to improve the provision of early warning predictions based on big data. If there is a shortage of goods in some places due to the supply being affected, and there is abnormal data, we must give reminders and warnings, and then we must immediately activate the joint guarantee and supply measures. We also particularly hope that media outlets will continue to strengthen supervision in this area and report relevant emerging situations in a timely manner. We will pay attention to the media reports on the one hand, and on the other hand, through our system, including the system of government functional departments and the monitoring system we have established, we can reflect on the situation and respond promptly, quickly, and accurately, making sure that no matter what happens, the basic guarantee of the people's daily necessities can be met. Thank you.

Red Star News:

The Political Bureau of the CPC Central Committee held a meeting on July 30. During the meeting, General Secretary Xi Jinping stressed that China should align its efforts to consolidate and expand the achievements in poverty elimination with an emphasis on promoting rural vitalization. To our knowledge, the MOFCOM has introduced numerous commerce-related assistance measures, such as reducing poverty via e-commerce. What will be done next to help extensively promote rural vitalization? Thank you.

Wang Wentao:

I've covered this in my opening remarks. Mr. Qian Keming will further elaborate on your question.

Qian Keming:

As Mr. Wang pointed out in the opening remarks, commerce-related work stretches from urban to rural areas, connects China with the rest of the world, and synergizes production and sales, thus giving it special advantages in poverty alleviation. We have fully leveraged its strengths in this regard by introducing a policy package in five aspects and attracting all sectors of society to actively engage in the work and effectively help develop industries in poverty-stricken areas, boost employment, and increase farmers' incomes.

First, reducing poverty through the e-commerce industry. Currently, the e-commerce industry has become one of the most direct and effective ways to help poor people escape poverty and increase their incomes. The MOFCOM has carried out comprehensive demonstration projects in which e-commerce has been brought to rural areas and covered all national-level poverty-stricken counties across the country. The MOFCOM also organized large e-commerce enterprises to establish public welfare channels on e-commerce poverty alleviation work, and developed rural e-commerce brands. Preliminary statistics show that e-commerce has helped some 7.71 million farmers either start a business or find employment locally. Meanwhile 6.19 million people have seen their incomes increase.

Second, reducing poverty through the housekeeping industry. The housekeeping industry is a small but powerful lever for poverty alleviation work. The MOFCOM has carried out poverty alleviation projects in this regard and built connections between housekeeping firms and national-level poverty-stricken counties. A total of 31 export centers for housekeeping workforces have been established, and more effort has been made in the training of housekeeping staff. The scheme helped employed more than 850,000 people in poverty-stricken areas, thus helping their families step out of poverty.

Third, reducing poverty through the export of labor. Employment channels have been expanded via the export of labor. The MOFCOM has built connections between labor export enterprises and poverty-stricken areas, funneled more resources into these regions, and supported labor in poor areas to work abroad. Over the years, some 146,000 people have been sent abroad to work. Their average annual income exceeded 100,000 yuan, with some even earning 300,000 to 400,000 yuan a year. Hence, those people working abroad can help their whole family emerge from poverty and thus bring an economic boom to the region.

Fourth, reducing poverty through the development of industry, industrial development has expanded the market. The MOFCOM has held a series of events to synergize production and sales, with contracted purchases reaching 42 billion yuan over the years. The MOFCOM also works to reduce poverty through consumption and encourages commodity circulation enterprises across the country to set up booths for poverty alleviation products, which has expanded sales channels for agriproducts. From the 122nd to the 128th Canton Fair, companies from poverty-stricken counties were exempted from a total of 86.69 million yuan in booth expenses, and inked deals worth more than $1.7 billion.

Fifth, reducing poverty through border trade. In this sense, border trade has facilitated poverty alleviation via openness. The MOFCOM has worked proactively to improve policies concerning border trade and promote its diversified development. This has reduced poverty for some 500,000 people in the border regions and helped increase their incomes. A three-year action plan on paired assistance has been carried out in which 24 national-level economic development zones in eastern China now cooperate with 19 economic cooperation zones in either border or cross-border regions. In this way, high-quality development of the economy in border regions has been better facilitated.

As China has secured a complete victory in the battle against extreme poverty and kicked off a new chapter toward rural vitalization, the MOFCOM will continue to make coordinated efforts and make commercial resources more accessible at the community level. Just now, Mr. Wang mentioned that the outreach of commercial resources should be expanded to the community level in three aspects. The MOFCOM will improve the circulation of commodities, expand openness and cooperation, and boost employment so as to align efforts to consolidate and expand the achievements in poverty elimination with efforts to promote rural vitalization. In terms of improving commodity circulation, the MOFCOM will strengthen the establishment of a three-tier logistics system at the village, township, and county levels in poor areas, improve trunk circulation networks for agriproducts, and precisely synergize production and sales. A project which boosts agricultural development through e-commerce will also be carried out. In terms of openness and cooperation, the MOFCOM will improve the assistance programs of the Canton Fair, promote the on-the-spot processing of imported goods in border trade, and facilitate the relocation of the processing trade. The MOFCOM will also launch a campaign to introduce hundreds of enterprises to border regions. An open and cooperative platform will be built for regions that have shaken off poverty. In terms of boosting employment, the MOFCOM will launch a campaign that will help farmers shed poverty through the housekeeping industry. Regional brands for housekeeping labor will be built. The MOFCOM will continue to help export labor and promote stable employment for people who have shaken off poverty. All these tasks require us to further enhance the economic vitality and sustain impetus for further growth in poor areas, and keep the smooth economic circulation between urban and rural areas so that poor regions can be better integrated into the new pattern of development and make new contributions to comprehensive rural vitalization. Thank you.

Hong Kong Economic Herald:

My questions are related to the Belt and Road Initiative (BRI), put forward by President Xi Jinping in 2013. What achievements have MOFCOM made in promoting the initiative? And what contributions have been made in building a community with a shared future for mankind? What is the situation regarding China's investment in countries along the Belt and Road this year? And what are MOFCOM's investment plans going forward? Thank you.

Qian Keming:

China has been actively promoting mutual development and prosperity between China and the rest of the world in its course of building a moderately prosperous society in all respects. In 2013, President Xi Jinping proposed the BRI with a focus on building a community with a shared future for mankind. Over the past eight years, fruitful outcomes have been achieved in the process of advancing the grand visionary initiative through practical actions; and a highly extensive platform for international cooperation has been formed as a global public good which has been extremely popular. Next, I will introduce the progress made by MOFCOM in promoting the BRI from five aspects:

First, unimpeded trade was deepened. We promoted the high-efficient flow and rational distribution of resources. China has positively expanded imports, developed new forms and models of business such as cross-border e-commerce, promoted the construction of overseas warehouses, stepped up efforts to build grand trade passageways including China-Europe freight routes and the New International Land-Sea Trade Corridor, and shaped a network of free trade zones built with high standards. Between 2013 and 2020, China registered $9.2 trillion in total volume of goods trade with other Belt and Road countries.

Second, investment and cooperation continued to be improved and industrial and supply chains were established for mutual benefit. China focused on facilitating outward investment and cooperation, deepened international production capacity cooperation, and promoted trilateral and multilateral market collaboration, as well as actively attracting overseas enterprises to invest and operate their businesses in China. From 2013 to 2020, China invested a total of $136 billion directly into other Belt and Road countries, and a total of 27,000 enterprises from other Belt and Road countries were established in China, with total investment volume reaching approximately $60 billion.

Third, cooperation projects were effectively implemented and partnerships for improving connectivity were deepened. China, with host countries, jointly promoted infrastructure connectivity, accelerated the construction of green projects and projects related to people's well-being, and co-established overseas economic and trade cooperation zones. Between 2013 and 2020, Chinese enterprises registered a turnover of $640 billion in contracted projects in other Belt and Road countries. As of the end of 2020, the economic and trade cooperation zones built by Chinese enterprises in these countries had seen investment of nearly $40 billion, paying fees and taxes to the host countries exceeding $4.4 billion, and creating 330,000 jobs for local people.

Fourth, we set up and improved various mechanisms and platforms to provide tremendous opportunities for boosting openness and cooperation. So far, China has signed more than 200 cooperation documents with 172 countries and international organizations to promote the BRI, increasing its circle of friends. MOFCOM made efforts to build more than 90 bilateral cooperation mechanisms regarding unimpeded trade, investment and cooperation, service trade, and e-commerce to tackle problems encountered when cooperating via practical measures. At the same time, the successes of the CIIE, Canton Fair, CIFTIS and China International Consumer Products Expo have significantly boosted trade connections with the countries and regions involved.

Fifth, we wrote a vivid chapter in building a community with a shared future for mankind when we worked together to fight against the COVID-19 pandemic with vigorous and effective measures. Faced with the sudden outbreak of the pandemic, China, while endeavoring to ensure proper domestic prevention and control measures, cooperated with other countries to overcome difficulties through mutual assistance. China has so far provided emergency assistance to 150 countries and 13 international organizations, and exported anti-epidemic supplies to more than 200 nations and regions, and is providing vaccine assistance to 102 nations and four international organizations.

Going forward, MOFCOM will follow the decisions and arrangements of the CPC Central Committee and the State Council, continue to deepen economic and trade cooperation through the BRI, boost trade using well rounded approaches, make investments and build cooperative relationships innovatively, improve relevant platforms and mechanisms, strengthen risk prevention and control, and realize high-quality development through the BRI, thus making continued contributions to building a community with a shared future for mankind, with deeper and more solid measures. Thank you.

Hong Kong Bauhinia Magazine:

Foreign trade is one of the "three carriages" driving China's economy, contributing much to the country's employment and taxes, and playing a vital role in building a moderately prosperous society in all respects. Faced with the complicated global trade situation, what are MOFCOM's forecasts for China's foreign trade in the future? What policies and measures will you be taking? Thank you.

Wang Wentao:

As we all know, foreign trade is one of the "three carriages" driving China's economy. To answer your question, I will cite a series of statistics.

First, foreign trade has promoted the steady development of the economy. In 2020, the scale of China's foreign trade hit a record high of $4.6 trillion, accounting for 14.7% of the international market share. Second, it has fueled supply in the domestic market. The CIIE planned, arranged and promoted by Xi Jinping, general secretary of the CPC Central Committee, has boosted imports, and provided numerous commodities favored by Chinese consumers. With imported goods going to ordinary supermarkets and millions of households, consumers now have more options. Third, it has expanded employment and taxes, bringing jobs to around 180 million people.

Since the 18th CPC National Congress in 2012, China's foreign trade has contributed a total of 11% to the country's total financial revenue, while maintaining a stable foreign exchange reserve of around $3 trillion. It has effectively guaranteed the sound balance of international payment for a huge country like ours. China has already become the world's largest trading nation in goods. Last year, it ranked first in terms of total trade volume in goods and services globally.

How do we perceive this situation? China's foreign trade maintained an upward momentum in the first seven months of this year, with an increase of 24.5% year on year, hitting a 10-year high. This growth can be attributed to multiple factors, while of which are one-offs. Given the temporary nature of these one-off factors, we think the situation in the first half of next year will be very serious. For example, the increasingly severe pandemic situation in surrounding regions brought about the re-shoring of orders, with many orders shifting to China. However, as the pandemic has gradually been curbed, these re-shored orders might be transferred back. The exports of medical supplies such as masks, medical isolation gowns and respirators soared at the beginning of the pandemic. Now, there has been a sharp decline as these one-off factors fade away. We see growth gradually slowing as the second half of 2021 gets under way. We may encounter more severe challenges next year. At the same time, our economy started to recover from the second half of last year. Given the huge numbers, the rapid pace of recovery cannot be sustained for a long time. We hope the recovery will slow down in a gradual manner with growth eventually stabilizing within a reasonable range. Improving the cross-cycle policy adjustment will allow the economic fluctuations to stabilize within a reasonable range, and prevent harm from dramatic fluctuations in economic growth and market entities. So, for the second half of this year, we will concentrate on improving the cross-cycle policy adjustment in a bid to keep foreign trade within a reasonable range. Specifically, we will focus on four aspects: stabilizing growth, promoting innovation, ensuring a smooth flow in industrial and supply chains and expanding cooperation.

We will stabilize growth, mainly in terms of market entities and orders. We are still faced with some difficulties, which are also commonly seen in the international community, such as limited shipping capacities and expensive shipping fees, rising prices of bulk commodities and raw materials, pressure caused by the rising renminbi exchange rate, and rising labor costs. These are the four main issues being faced by foreign trade companies. Small- and medium-sized enterprises (SMEs) are facing rather difficult circumstances. Therefore, we will take a series of measures to stabilize market entities and orders. 

We will promote innovation. Besides the traditional foreign trade activities, we will fully promote the development of new business forms and patterns, such as cross-border e-commerce and exports of high-tech, high-quality and high added value products. We will also step up efforts to promote Chinese brands overseas.

We will ensure a smooth flow in both foreign trade industrial and supply chains.

We will expand cooperation. Due to time constraints, I will condense this point as deepening international economic and trade cooperation. As Mr. Wang said earlier, we should deeply integrate the efforts in protecting the multilateral trading system, negotiating FTAs and upgrading FTAs into overall international economic cooperation, and better play our part in promoting development of the globe and Chinese foreign trade. Thank you.

Chen Wenjun:

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

China Review News:

We have noted that last year, global cross-border direct investment fell by about 40%, but foreign investment in China registered a trend-bucking rise of 4.5%. This suggests that foreign investors are still optimistic about the Chinese market. What role has foreign investment played in China's efforts to build a moderately prosperous society in all respects? Some foreign-funded enterprises are worried that foreign investment will no longer be needed to foster a new development paradigm. What's MOFCOM's take on this? What other measures will be taken to attract foreign investment? Thank you.

Wang Wentao:

Thank you for your question – I'll answer it. I completely agree with your conclusion that foreign investors are still optimistic about the Chinese market. Your question involves three aspects: first, the role foreign investment plays; second, our view on some foreign investors' concerns; third, what measures should be taken next. I will respond to these three aspects individually.

Here, I'll make a simple evaluation of the role and contributions of foreign investment. China has always been an important destination for foreign investment. Since the 18th CPC National Congress, the overall scale of foreign investment flowing into China has been on the rise and has been the second largest worldwide over the past four years. Especially last year, despite a 40% drop in global foreign investment, foreign investment entering China grew by 4.5%, bucking the declining global trend. This type of investment is not easy to come by. As an important part of China's market entities, foreign-funded enterprises have made unique and significant contributions to the country's economic and social development. Foreign enterprises account for 2% of all market entities in China and have created about 40 million jobs – one-tenth of the employed urban population. Additionally, they have contributed to one-sixth of China's tax revenue and two-fifths of imports and exports. This fully shows that foreign-invested enterprises are important participants in, witnesses, and contributors to China's building of a moderately prosperous society in all respects. While foreign enterprises contribute to China's development, they themselves have also grown well in the country. The Chinese market has become an important and even main source of profit for some multinational companies. According to a survey by foreign chambers of commerce, 56% of U.S. enterprises, 73% of European enterprises, and 89% of Japanese enterprises in China made profits last year despite being affected by the pandemic.

We put forward fostering a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. Some one-sided interpretation of the paradigm focuses too much on the domestic circulation as the mainstay and worries about the discarding of foreign investment. This is a complete misunderstanding. General Secretary Xi Jinping has stressed many times that a new development pattern is by no means a closed domestic circulation, but a more open dual circulation that allows domestic and overseas markets to reinforce each other. In fact, most foreign enterprises in China are practitioners of dual circulation. Their domestic circulation is "in China and for China." They purchase, produce, and sell in China and are deeply integrated into the country's domestic circulation. At the same time, these companies have contributed two-fifths of China's imports and exports, which have also promoted domestic and international dual circulation.

Next, we will take measures in four aspects: expanding opening-up, strengthening services, safeguarding rights and interests, and improving the business environment.

First, we will open wider. Mr. Wang Shouwen has mentioned this. Just now, I also spoke about how we will further shorten the negative list and accelerate the efforts to formulate the 2021 version of the negative list. By widening the market access and relaxing the restrictions, we will open wider. We have also promoted negotiations on some free trade agreements and actively facilitated and participated in WTO reforms.

Second, we will step up efforts to guarantee services. We have set up special work teams with 20 departments and key provinces to help vital foreign enterprises and projects solve problems. The special teams have been operating normally. The Investment Promotion Agency of the Ministry of Commerce has established a National Center for Complaints of Foreign-Invested Enterprises – their telephone number is 010-64404523. All provinces and cities in the country have agencies for complaints from foreign companies, not only the MOFCOM, which can be checked on the official website of MOFCOM. If foreign enterprises encounter any difficulties or problems, they can solve them through coordination at different levels. This is what it means to "strengthen services."

Third, we will enhance protection of the legitimate rights and interests of foreign investors. We will make good use of the complaint mechanism and better protect their rights and interests in accordance with the law.

Fourth, we will continue to improve the business environment. We will effectively implement the Foreign Investment Law and its implementation regulations, improve the supporting systems, and foster a business environment that is based on market principles governed by law and up to international standards. As General Secretary Xi Jinping has said, China will open its door only wider to the world. We're happy to see that foreign companies invest in China and can share the dividends of China's reform and development. Thank you.

Chen Wenjun:

Thank you, all the speakers. Thank you, friends from the media. That's all for today's press conference.

Translated and edited by Zhang Liying, Wang Wei, Li Xiao, Li Huiru, Wang Yiming, Ma Yujia, Wang Mengru, Zhang Junmian, Cui Can, Yuan Fang, Zhang Rui, Wang Zhiyong, Zhu Bochen, He Shan, Zhang Tingting, Liu Sitong, Qin Qi, Xu Xiaoxuan, Wang Qian, David Ball, Jay Birbeck, Tom Arnstein. 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:

Guo Tingting, head of the Comprehensive Department of the Ministry of Commerce (MOFCOM)

Zhu Xiaoliang, head of the Department of Market Operation and Consumption Promotion of the MOFCOM

Li Xingqian, head of the Department of Foreign Trade of the MOFCOM

Zong Changqing, head of the Department of Foreign Investment Administration of the MOFCOM

Chairperson:

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

Date:

July 22, 2021

Xing Huina:

Friends from the media, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). Today's briefing will introduce China's commerce work and operations in the first half of 2021, followed by questions from the media. Today, we are joined by Ms. Guo Tingting, head of the Comprehensive Department of the Ministry of Commerce (MOFCOM); Mr. Zhu Xiaoliang, head of the Department of Market Operation and Consumption Promotion of the MOFCOM; Mr. Li Xingqian, head of the Department of Foreign Trade of the MOFCOM; and Mr. Zong Changqing, head of the Department of Foreign Investment Administration of the MOFCOM.

Now, let's give the floor to Ms. Guo.

Guo Tingting:

Thank you. Friends from the media, good afternoon. I'll start by briefly introducing the overall statistics. 

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 MOFCOM has grounded its work in the new stage of development, applied the new development philosophy, and contributed to fostering a new pattern of development. Three new guiding principles have been put forward for China's commerce work, which include making commerce work a key part of the domestic economic circulation, turning it into a key joint linking domestic and international economic circulation, and giving full play to its role in establishing a new pattern of development. In accordance with these new guiding principles, the MOFCOM is sparing no effort to promote the dual circulation development pattern while ensuring the smooth flow of domestic circulation. Generally speaking, in the first half of this year, China's commerce work has seen rapid growth, achieved stable performance, and moved in a positive direction. New progress has been achieved in the high-quality development of commerce work, and new contributions have been made to the sustainable and sound growth of the national economy.

First, domestic consumption continues to pick up. In the first half of 2021, China's retail sales of consumer goods totaled 21.2 trillion yuan, up 23% year on year. Its two-year average growth stood at 4.4%. Final consumption expenditure contributed to 61.7% of economic growth, which reflected its prominent role as a "stabilizer." The consumption of commodities rebounded significantly. From January to June, the retail sales of commodities increased by 20.6%, of which, spending on automobiles, cosmetics, and gold, silver and jewelry increased by 30.4%, 26.6% and 59.9%, respectively. Service consumption recovered at an accelerated pace as it accounted for 52.5% of household consumption, up 3.2 percentage points. Catering revenue basically recovered to pre-pandemic levels. New types of consumption boomed. From January to June, China's online retail sales reached 6.1 trillion yuan, up 23.2% year on year. Shipments of 5G smartphones increased by 100.9%. Offshore duty-free sales in Hainan province increased 3.7 times. We have effectively ensured supply and price stability, strengthened the market surveillance and early-warning system, and adjusted meat reserves. The supply of daily necessities was sufficient, and prices were generally stable. China's Consumer Price Index (CPI) rose 0.5% in the first half of 2021.

Second, foreign trade posted rapid growth. From January to June, China's total imports and exports of goods reached 18.1 trillion yuan, up 27.1% year on year. Exports and imports grew by 28.1% and 25.9%, respectively. The two-year average growth of total foreign trade in goods, exports and imports stood at 10.8%, 11.3% and 10.3%, respectively. The vitality of market entities was enhanced significantly. The number of enterprises with actual foreign trade business reached 479,000, up 8.1% year on year. The imports and exports of private enterprises increased by 35.1%, which is 8 percentage points higher than the overall growth of foreign trade. New business forms and models developed at an accelerated pace. The imports and exports of cross-border e-commerce increased by 28.6%. Market procurement exports grew by 49.1%, and there were more than 1,900 overseas warehouses. China's trade with its major trading partners registered rapid growth. Its imports and exports to the Association of Southeast Asian Nations (ASEAN), the European Union (EU), and the U.S. increased by 27.8%, 26.7% and 34.6%, respectively. Its foreign trade with countries along the Belt and Road increased by 27.5%. The commodity structure of China's foreign trade was further optimized. Exports of mechanical and electrical products increased by 29.5%, accounting for 59.2% of the total export volume. Specifically, the exports of automobiles, machine tools and home appliances grew by 101.4%, 39.6% and 35.8%, respectively. Trade in services saw innovative development. From January to May, the total imports and exports of trade in services reached 1.9 trillion yuan, up 3.7%; the imports and exports of knowledge-intensive services accounted for 46.4% of the total amount.

Third, substantially more foreign investment was utilized. In the first half of 2021, foreign direct investment (FDI) into the Chinese mainland, in actual use, surged 28.7% year on year to 607.84 billion yuan. Its two-year average growth stood at 12.7%. The number of enterprises also increased rapidly. More than 23,000 foreign-invested companies were set up, representing an increase of 47.9% and bringing the total number of foreign-invested firms to over 1.06 million. The composition of foreign investment was further optimized. FDI into China's manufacturing industry, in actual use, increased by 9.9%, the highest growth rate over the same period in a decade. FDI into China's service sector, in actual use, grew by 33.4%. Foreign investment from major source regions saw stable growth. Investment from countries along the Belt and Road, ASEAN countries and the EU increased by 49.6%, 50.7% and 10.3%, respectively. Actual investment from China's Hong Kong, Singapore, the Republic of Korea and Germany increased by 35.5%, 53.6%, 29.9% and 32.4%, respectively. The exemplary role of opening-up areas became rather prominent. FDI into 21 pilot free trade zones, in actual use, amounted to 100.88 billion yuan, attracting nearly 17% of the country's total amount of FDI with less than four thousandths of the country's land area. Newly established foreign-invested firms and the actual use of FDI in the Hainan Free Trade Port increased 4.9 times and 6.7 times.

Fourth, outbound investment cooperation was stable and orderly. In the first half of this year, non-financial direct investment decreased by 3.7% year-on-year to 348.83 billion yuan, (equivalent to $53.9 billion, up 4.7%). Investment cooperation within the framework of the Belt and Road Initiative (BRI) was deepened. The investment into countries along the Belt and Road grew by 8.6%, up 2 percentage points to 17.8% of total outbound investment. The investment structure continued to improve. Investment into information technology, scientific research services and the transportation sector jumped by 26.8%, 74.2%, and 98.7%, respectively. The level of cooperation was steadily upgraded. The turnover of overseas contracted projects increased by 3.2% to 439.76 billion yuan. The number of newly signed projects worth more than $50 million went up by 6% to 404. Win-win cooperation was fully demonstrated. By the end of the first half of this year, overseas economic and trade cooperation zones had invested $47 billion accumulatively, paid about $6 billion in taxes and fees to host countries, and created 380,000 local jobs.  

Next, the Ministry of Commerce (MOFCOM) will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and adhere to the decisions and plans of the CPC Central Committee and the State Council. We will comprehensively promote consumption, improve the modern circulation system, advance high-level opening-up to the outside world, firmly stabilize the overall performance of foreign trade and foreign investment, actively participate in global economic governance, and accelerate efforts to interlink markets, integrate industries, promote mutual innovation and connect rules, so as to better serve the fostering of a new development paradigm.  

That's all for my introduction. Thank you.

Xing Huina:  

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

CCTV:  

I have a question about the BRI. It can be said that economic and trade cooperation is an important part of the BRI. In the first half of this year, what progress was made in BRI economic and trade cooperation? Thank you.

Guo Tingting:  

Thank you for your question. Since General Secretary Xi Jinping put forward the major proposal of developing BRI through joint efforts, MOFCOM has earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, and constantly deepened BRI economic and trade cooperation. This has achieved remarkable results. In the first half of this year, MOFCOM strived to overcome the impacts of the pandemic and made new progress in promoting BRI economic and trade cooperation, making new contributions to the high-quality development of BRI. This is mainly reflected in the four following aspects:  

First, unimpeded trade developed fast. In the first half of this year, the trade volume of goods between China and countries along the Belt and Road expanded by 27.5% year-on-year to 5.35 trillion yuan, higher than the overall growth of and accounting for 29.6% of the country's foreign trade. MOFCOM actively promoted the integrated development of new business forms and models of foreign trade (such as cross-border e-commerce and overseas warehouses) and major trade passageways, and steadily facilitated the construction of the New International Land-Sea Trade Corridor. In the first half of this year, China-Europe freight trains made 7,377 journeys and distributed 707,000 twenty-foot equivalent units (TEU) of goods, up 43% and 52%, respectively. The accumulative freight train journeys exceeded 41,000, reaching 168 cities of 23 European countries.  

Second, investment cooperation continued to deepen. In the first half of this year, China's non-financial direct investment in countries along the Belt and Road grew by 8.6% to 62 billion yuan, increasing its share in the country's total outbound investment to 17.8%. The turnover of contracted projects in countries along the Belt and Road reached 254.67 billion yuan, making up 57.9% of the national total. Steady progress was made in overseas projects and the construction of industrial parks. Enterprises settled in the China-Belarus Industrial Park totaled 71, and projects such as Jakarta-Bandung High-Speed Railway, Budapest-Belgrade Railway and Colombo Port made active headway. At the same time, 2,775 new enterprises were established in China by countries along the Belt and Road, with a direct investment of 39.11 billion yuan, up 67.8% and 49.6% year-on-year, respectively.  

Third, the development of free trade zones proceeded steadily. So far, China has signed seven free trade agreements with 13 countries along the Belt and Road. In April, China formally deposited its ratification instrument of the Regional Comprehensive Economic Partnership (RCEP) agreement with the ASEAN Secretary-General, becoming one of the first countries to complete the ratification procedures. Currently, countries like Singapore and Japan have also deposited their ratification instruments. All parties are pushing for the agreement to become effective on January 1, 2022. To help localities and businesses make good use of RCEP, MOFCOM held two thematic national online training sessions, with more than 66,000 participants and more than 70% of them being enterprise representatives. In addition, we actively considered joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), signed a protocol on upgrading the China-New Zealand Free Trade Agreement, and actively promoted negotiations on the China-Gulf Cooperation Council Free Trade Agreement and China-Japan-South Korea Free Trade Agreement, among others.  

Fourth, the mechanisms and platforms have become more complete. The Ministry of Commerce actively promotes the establishment of trade and investment cooperation mechanisms with relevant countries. The ministry has established working groups for smooth trade with 15 countries and investment cooperation working groups with 42 countries. In addition, the ministry has established 14 mechanisms for cooperation in trade in services. We actively developing "Silk-Road E-commerce" and promote the establishment of bilateral e-commerce cooperation mechanisms with 22 partner countries. At the same time, we have successfully held important expos such as the China International Consumer Products Expo, the 129th session of the China Import and Export Fair (Canton Fair), and the China-Central and Eastern European Countries (CEEC) Expo, which effectively boosted economic and trade exchanges with relevant countries and regions.

In the next step, the Ministry of Commerce will continue to implement the decisions and plans of the CPC Central Committee and the State Council, adhere to the principles of extensive consultation, joint contribution and shared benefits, and uphold the philosophy of open, green and clean cooperation. In order to make Belt and Road cooperation high-standard, people-centered and sustainable, we will continue to do a good job in the epidemic prevention and control of overseas projects and personnel, strengthen international cooperation on COVID-19 response, and promote the and upgrading of Belt and Road trade and investment. With these measures, we hope to make new contributions to promoting the high-quality development of the Belt and Road Initiative and build a community with a shared future for mankind. Thanks.

Phoenix TV:

Regarding consumption, how does the Ministry of Commerce view the recovery of the consumer market in the first half of the year? What are the highlights? What's the next trend? What measures will the Ministry of Commerce take to stimulate consumption? Thanks.

Zhu Xiaoliang:

Thank you for your questions. Since the beginning of this year, in the face of complex and fast-changing domestic and international environments, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, commerce departments at all levels have resolutely implemented the decisions and plans of the CPC Central Committee and the State Council. They have strengthened work coordination and overall planning, and taken multiple measures to stabilize and expand consumption. The consumer market has on the whole shown a trend of steady and continuous recovery, which has played an important role in supporting the stable recovery of the economy. In the first half of the year, total retail sales of consumer goods increased by 23% year on year, and the contribution rate of consumption to GDP growth rebounded to 61.7%. Compared with 2019, total retail sales of consumer goods in the first half of the year increased by 9%, among which, the first quarter amount increased by 8.5%, and the second quarter amount increased by 9.4%, 0.9 percentage point higher than that of the first quarter. 

There are four highlights in the growth of the consumer market. The first is the sustained and rapid development of mid-to-high-end consumption. For example, in the first half of the year, the retail sales of cosmetics and communication devices above designated unit size increased by more than 25% over the same period in 2019. Imports of suitcases and bags, jewelry, and clocks and watches have doubled year on year. The second is the rapid growth of consumption of big-ticket items, such as automobiles. In the first half of the year, automobile retail sales reached 2.2 trillion yuan, a year-on-year increase of 30.4%, and its contribution to the total retail sales of consumer goods reached 13%. The third is the accelerated recovery of cultural and tourism consumption. China's box office revenue has recovered to nearly 90% of the same period in 2019. Railway and civil aviation passenger traffic has recovered to nearly 80%. Red tourism, rural tourism, and self-driving tours are booming. The fourth is the popularity of green, healthy and smart consumption. For example, new-energy vehicle sales accounted for 9.4% of total vehicle sales, and 5G mobile phone shipments accounted for 73.4% of total mobile phone shipments.

There are still some problems in the current operation of the consumer market, such as an unbalanced recovery and unstable foundation. As China's economy continues to recover steadily, epidemic prevention and control have become more precise and effective, policies and measures have taken effect, and consumer confidence has gradually increased, we expect that the overall consumer market will continue its steady and sound recovery.

The Ministry of Commerce will continue to implement the decisions and plans of the CPC Central Committee and the State Council, ground our work in the new development stage, apply the new development philosophy, and serve to create a new pattern of development. We will resolutely pursue the strategy of expanding domestic demand, promote the implementation of various measures to stimulate consumption in all sectors, give better play to the fundamental role of consumption for economic development, and better meet the people's growing needs for a better life. Next, we will focus on the work in the following aspects:

First, we will further improve policies and measures to promote consumption. While implementing the policies and measures that have been introduced to stabilize and expand automobile consumption, and to boost consumption of other big-ticket items, we will conduct in-depth surveys and research in accordance with changing situation and tasks, and reserve new policies to expand domestic demand and promote consumption.

Second, we will improve the city's capacity to provide pro-consumption services. We will accelerate the building of international consumption center cities and carry out campaigns to promote urban commerce, in a bid to better meet people's needs for a variety of high-quality consumer products.

Third, we will ramp up more effort to expand the rural market. We will move faster in developing a business system at the county level, promote the sustainable and healthy development of rural e-commerce, and improve the backbone network for the circulation of agricultural products. This will further tap into spending potential in rural areas.

Fourth, we will bolster consumer spending in traditional sectors. Efforts will be made to stabilize the consumption of bulk consumer goods, such as motor vehicles, household appliances and household goods, and foster a more rapid and sound recovery of the catering sector. 

Fifth, we will boost new types of consumption. We will support and encourage traditional businesses to accelerate digitalized and smart-based transformations, and pursue a wider and deeper integration of online and offline activities. 

Sixth, we will ignite people's enthusiasm for consumption. As epidemic prevention and control measures on a regular basis continue, a series of pro-consumption campaigns will be launched in line with local conditions, to spur holiday spending and further boost market vitality and unleash consumption potential. Thanks. 

The Paper.cn:

With the normalization epidemic prevention and control worldwide, there is a decline in demand for trades in products regarding COVID-19 epidemic prevention and control. Many manufacturing countries have resumed their production. Will China face an increasing pressure on adjusting its export structure? What's your take on the future of China's foreign trade? Thanks. 

Li Xingqian:

Thanks for your questions. In the first half of this year, China's total imports and exports expanded 27.1% year-on-year in terms of the yuan, hitting a historical record high. This is a result of multiple factors, such as international supply and demand. What matters most is the fact that supply creates demand. Since the outbreak, China has taken creative approaches to offering services and guaranteeing the production and people's livelihoods worldwide through international trade, and the country has strengthened its capacity to compete in a comprehensive manner. There was a huge gap between supply and demand in the COVID-induced international market. China's supply chain in international trade has quickly adapted to the changing demand of international markets, and supplied marketable products in a timely manner, which met the needs for epidemic prevention, and production and life across the world. As a responsible major country, China has provided over 300 billion masks, 3.7 billion protective suits and 4.8 billion testing kits to more than 200 countries and regions. More than 600 million doses of COVID-19 vaccine have been offered to the rest of the world. All these made great contributions to the global battle against COVID-19. In addition, in the purpose of offering services to meet the needs of people working from home during lockdowns worldwide, foreign trade companies in China have mobilized available resources in manufacturing, improved R&D and design capabilities, and strengthened quality control. A great amount of high-quality consumer goods have been exported to the rest of the world.  

Beginning this year, with a more rapid speed of vaccine rollout, some countries have seen an economic rebound and gradually resumed their production, posing both challenges and opportunities for China's foreign trade. On the one hand, China's exports will face stiffer competition in international markets. On the other hand, there is a huge demand for raw materials and equipment for production across the world, which creates an increasing demand for importing capital goods and intermediate goods from China. The proportion of consumer goods in exports dropped in the first six months of this year, while capital goods and intermediate goods in exports accounted for 76.7% of the total, 2.5 percentage points higher than the previous year. The changes you mentioned are exactly the chance and the driving force for China's industrial chain and supply chain in international trade to better adapt to international markets and boost its capacity to compete. We hope countries around the world reopen economy as soon as possible, restore close trade cooperation, and work together to inject vitality into the global economy.

According to our recent survey, around 40% of the foreign trade companies saw growing export orders that were newly placed compared to the previous year. It is expected that the recovery of external demand and the steady economic growth will continue to underpin the development of China's foreign trade. However, in light of the growing base last year, there will be a decline in the growth of foreign trade in the second half of this year. The development of foreign trade still faces uncertainties and instabilities. The risk of COVID-19 resurgence remains and the current global economic recovery is weak. The rising cost of raw materials, the disruption of maritime transportation for logistic services as well as other problems have further squeezed profit margins of foreign trade companies and affect their willingness to receive orders. 

Currently, we are keep a close eye on the changes in international trade. In the second half of this year, we will focus on resolving pronounced problems encountered by companies, and work with related departments and the local governments to introduce new policies and measures that are more targeted, to fully reduce the overall cost of foreign trade companies. By pursuing an innovation-driven growth, we will firmly promote high-quality development of trade and boost the capacity to compete in international trade, in a bid to consolidate the foundation for developing foreign trade industries, sustain a stronger momentum of development and ensure unimpeded circulation channels, and move faster toward establishing a new development paradigm. Thanks.

Southern Metropolis Daily:

We have noticed that Amazon has recently banned a large number of sellers, including many from China, affecting some Chinese companies. What are your comments on this? Thank you.

Li Xingqian:

Thank you for your question. Due to the COVID-19 epidemic, traditional trade and economic activities such as exhibitions have been impeded. Enjoying the unique advantages of low cost, high efficiency and great convenience without the limitations of time and space, cross-border e-commerce became popular among consumers worldwide, showing rapid growth. China's cross-border e-commerce has also seen rapid development. In 2020, its volume of imports and exports reached 1.69 trillion yuan, up 31.1% year on year. This year, it has so far maintained a double-digital increase, with volume reaching 886.7 billion yuan in the first six months and a growth rate of 28.6%.

Thanks to rapid development, cross-border e-commerce enterprises have diversified export channels. Some companies operate businesses relying on large-scale e-commerce platforms, some build independent websites to explore markets, and new business models, including livestreaming commerce and big data marketing, emerged. A number of Chinese enterprises and brands have gained recognition in the international market, making the Chinese experience and approaches a new sample for the development of global cross-border e-commerce and providing references for other countries in this field. Meanwhile, due to varying laws, cultures, and business practices across different countries, Chinese enterprises have to face various risks and challenges when going global. I have learned that practices of some sellers were considered to have violated Amazon's code of conduct and other terms. Thus, their businesses were suspended by the platform. We always require Chinese enterprises to abide by the laws and regulations of different countries, respect local customs, and conduct businesses in accordance with the laws and regulations. We will help enterprises to improve their capacity of risk control and align with international economic and trade rules and standards, and firmly support them to protect their legitimate rights and interests through appropriate measures. We will also promote communication and cooperation among upstream and downstream entities so as to jointly bolster the healthy development of the industry.

In general, the problems that emerged in the development of new business forms in foreign trade can be put down to them having not been "acclimatized" or as "growing pains." In the process of learning-by-doing and mutual learning, we hope the platform will cherish the important contributions made by enterprises and fully respect all kinds of trade entities. We believe that the platform and enterprises will find a solution that is both compliant and reasonable. The Ministry of Commerce will continue to follow the progress of this issue. Thank you.

Cover News:

Recently, the Ministry of Commerce released the statistics on foreign investment in China from January to June. What are the characteristics of the growth rate of foreign investment in the first half of this year? What did the Ministry of Commerce do to stabilize foreign trade and investment? Thank you.

Zong Changqing:

Thank you for your questions. This year, faced with a complicated and severe environment both at home and abroad, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the Ministry of Commerce worked with other departments and various regions to firmly implement the deployments of the CPC Central Committee and the State Council on stabilizing foreign trade and investment and ensuring stability on the six fronts and security in the six areas. The work of stabilizing foreign investment has been steadily promoted. In the first half of the year, foreign investment in China grew rapidly, which is significantly better than expected and laid a solid foundation for achieving the country's goal of keeping foreign investment stable for the whole year. There are four main characteristics to this:

First, rapid growth. In the first half of this year, actually used FDI in the Chinese mainland surged 28.7% year on year to 607.84 billion yuan, increasing 27.1% from the same period in 2019. Defined in U.S. dollars, FDI jumped 33.9% year on year to 90.96 billion U.S. dollars, increasing 28.6% from the same period in 2019. No matter in yuan or U.S. dollar terms, the FDI's pace of growth in the first half of this year was the highest in almost 10 years, and its scale hit a record high for the same period.

Second, high technology. The actual use of FDI in high-tech industries increased by 39.4% year on year to 192.4 billion yuan, up 39.6% from the same period in 2019, and its proportion hit a record high for the same period. FDI in the high-tech manufacturing sector surged 29.2%. Among these, FDI in computer and office equipment manufacturing and electronics and communication equipment manufacturing increased by 45.4% and 34.2%, respectively. FDI in the high-tech service sector jumped 42.7%. Among these, FDI in the transformation of scientific and technological achievements industry and in the R&D and design service industry increased by 93.2% and 45.8%, respectively.

Third, major foreign-funded projects were increased. 

The number of large foreign investment projects with contract values over US$100 million increased 81.3% year on year to reach 602, up 76% compared with the same period in 2019. A number of landmark projects were also launched, including Hyundai Motor Hydrogen Fuel Cell System (Guangzhou), Bosch Hydrogen Powertrain Systems (Chongqing), Bio-pharmaceuticals Facility (Hangzhou) of Thermo Fisher Scientific, and the Legoland Shanghai Resort.

Fourth, foreign investment projects were supported widely across China. Foreign funds in China's eastern, central and western regions increased by 29.7%, 33.6% and 6.1%, respectively. Meanwhile, 20 provinces in China registered double digit growth in foreign investment. Among them, the top six provinces -- Shandong, Zhejiang, Shanghai, Jiangsu, Guangdong and Beijing -- saw growth rates of 61.9%, 36.4%, 35.6%, 26.7%, 20.6% and 13.5%, respectively.

Since the beginning of 2021, the MOFCOM has been mainly focused on the following four aspects:

First, we have stabilized favorable investment policies. We continued to carry out a series of policies on stabilizing foreign investment, particularly the Suggestions on Further Stabilizing Foreign Trade and Investment, which was released last year by the State Council. The MOFCOM also issued the Notice on Effectively Stabilizing Foreign Investment By Centering on Fostering a New Development Paradigm, with 22 supportive measures being launched. We also joined hands with relevant departments to introduce supportive policies to stabilize foreign capital such as by strengthening financial securities and preferential tax policies for imported scientific innovations. A recent survey conducted by the MOFCOM showed that 68.6% of foreign enterprises were very satisfied with foreign policies issued by the central authorities, and 31.4% of them were basically satisfied.

Second, we have broadened the platform. While continuing to support Beijing's creation of an open and comprehensive demonstration zone in service sectors this year, we added the four additional trial sites of Tianjin, Shanghai, Hainan and Chongqing to expand overall services, and carried out 203 experimental measures, forming a new pattern of "1+4" pilot projects which were approved by the State Council. We further enhanced the innovation ability of national-level economic development zones, while another 13 national economic technological development zones were approved by the State Council.

Third, we have invited more foreign funds. We made concerted efforts in attracting foreign capital by integrating investment resources and establishing a joint-action mechanism that is marked by "serving the new development paradigm and supporting the flow of foreign funds into local enterprises." More than 20 major expos were held, including the 12th Central China Investment and Trade Exposition (Expo Central China 2021) and the 27th China Lanzhou Investment and Trade Fair. We also conducted a series of events to promote investment, such as the "China International Import Expo (CIIE) entering Sichuan" and "multinational corporations travelling to western China" to help local enterprises bring in more foreign funds. According to incomplete statistics, in the first half of this year, over 900 commercial events were launched across China, with more than 1,400 new contracts being signed with foreign companies, reaching a total contractual value of more than $170 billion.

Fourth, we have improved services. We have given play to the role of coordinated mechanisms for foreign trade and foreign investment as well as the task forces for key foreign-funded projects. The joint-action mechanism between central departments and local governments has been improved. We held 38 exchange activities focused on key industrial fields such as medicine and integrated circuits, which were joined by foreign enterprises and chambers of commerce, We coordinated efforts to address more than 900 problems raised by foreign enterprises and key foreign-funded projects, such as personnel entry into China, custom checks and vaccinations. We arranged for over 20,000 foreign personnel to come into China and helped businesses resume normal production and operations, thus stabilizing expectations and confidence among foreign investors.

Bloomberg News:

The five-year plan issued by the MOFCOM states that the total volume of retail sales of consumer goods will increase by 5% in the following five years, which is much lower than the GDP growth rate, as we all noticed that this year China's economic growth may exceed 6% and the figures were even higher in the past few years. Why has the MOFCOM set such a conservative target? Do you think it will benefit China's dual-circulation if total consumption is low in some private businesses?

Zhu Xiaoliang:

I will answer this question. Since the reform and opening-up, China's retail sales of consumer goods have maintained sustained and rapid growth. In recent years, as people's income has increased, the domestic consumption structure has upgraded, transforming from commodity consumption into service consumption. The proportion spent on Chinese service consumption is increasing. In the first half of this year, the proportion spent on service consumption by Chinese residents reached 52.5%. As far as we estimate, this proportion will continue to increase along with the improvement of the people's living standards. Against such a backdrop, China's retail sales of consumer goods have registered a slower but stable performance. In the next period, service consumption will continue to grow rapidly and with an increasingly higher proportion. Regarding stability, we aim to achieve a growth of 5% in the retail sales of consumer goods in the next stage. Thank you.

National Business Daily:

We have noticed that, over the past year, the international shipping market has seen an increasingly fierce shortage of containers, and shipping fees have repeatedly hit new highs. What are the MOFCOM's forecasts for the international shipping market in the future? What measures will you take to address these issues in China's foreign trade logistics? Thank you.

Li Xingqian:

Thank you for your attention. At the present time, the shortage of shipping containers has become a common concern of all the Chinese foreign trade enterprises, severely restricting the development of international trade. Against the backdrop of the ongoing pandemic, China's foreign trade has actively helped other countries to combat the virus, effectively guaranteed the needs of the people, strongly supported the smooth operation of global industrial and supply chains, and greatly boosted the countries' confidence in winning the battle against the virus and helping the economy to recover. It has served as a "stabilizer" in global trade. Over the past year, the international shipping market has seen continuous tension between supply and demand with a limited carrying capacity of containers and exorbitant shipping fees. There are complains from local level about the sharp increase of the operating costs of foreign trade enterprises due to the hard-reserved shipping space and expensive shipping fees. Many of the foreign trade enterprises have reacted violently to these issues. In especial, small and medium enterprises are under extremely heavy pressure.

The CPC Central Committee and the State Council have attached great importance to solving the practical difficulties faced by foreign trade enterprises. The MOFCOM has closely followed these shipping issues with the Ministry of Industry and Information Technology, the State Administration for Market Regulation, and other relevant departments. We have made great efforts to improve the output of containers, increase carrying capacities, and strengthen supervision of prices. We have also provided guidance for the local governments to roll out relevant measures. We will further collaborate with other departments to address issues of urgent concern and help the foreign trade enterprises to overcome immediate difficulties.

We have noticed that the contradiction between supply and demand has directly affected global trade and will eventually affect the customers' interests. However, the high profit made by the shipping companies has also drawn much attention. As an open economy, we resolutely support all kinds of enterprises across the world to travel overseas while honoring credibility. Win-win cooperation for mutual benefit is the foundation of trade. We hope that shipping enterprises will focus on the long term, cherish the opportunities in Asian markets, and establish cooperation based on long-term stability and mutual benefit with Chinese foreign trade enterprises and others across the world. Through this, we can work together to overcome difficulties and further boost the international circulative economy. We appeal to business associations of all relevant fields, including the shipping market and freight forwarding, to strengthen self-regulation and urge enterprises to operate in accordance with laws and regulations. At the same time, we call for countries across the world to promote international cooperation and information sharing and make joint efforts to maintain the order of international logistics, and promote the smooth operation of international supply chains. Thank you.

The Poster News APP:

How is the performance of the automobile market in the first half of this year? What measures will the MOFCOM take to spur automobile consumption? Thank you.

Zhu Xiaoliang:

Thank you for your concern about the automobile market. I will answer this question. The auto industry has always been a pillar industry in our national economy, serving as an engine to expand domestic demands and boost consumption with its long industrial chains and strong driving effects. In recent years, retail sales of automobiles have accounted for about one-tenth of the country's total sales. The CPC Central Committee and the State Council attach great significance to this sector. This year's government work report proposed to keep vehicle and other major consumption stable and to remove unreasonable restrictions in the second-hand car dealing market. The MOFCOM has been implementing these policies with great care and has worked with other departments to promote cross-province registration of second-hand cars, providing convenience for used car dealing. We have also promoted new energy vehicles in villages and handed out guidelines to the local commerce authorities on how to spur car consumption as part of the efforts to help them boost car consumption.

With various policies and measures in place, the automotive market has maintained a good momentum of steady growth. In the first half of the year, all major indicators exceeded levels from before the epidemic. First, sales of new vehicles achieved rapid growth, reaching nearly 12.9 million, a year-on-year increase of 25.6% and an increase of 4.4% compared to the same period in 2019. Second, sales of new energy vehicles increased substantially. In the first half of the year, 1.2 million vehicles were sold, a two-fold increase from the same period last year and close to the full-year sales of 2019. As I mentioned earlier, sales of new energy vehicles accounted for more than 9% of total vehicle sales. Approximately 256,000 new energy vehicles were sold in June, a new record for a single month. Third, the automotive aftermarket became more vibrant. The transaction volume of used cars exceeded 8.4 million, and the volume of recycled scrapped motor vehicles reached 1.31 million, an increase of 52.9% and 41.3% year-on-year, respectively. Meanwhile, the ratio of used car sales to new car sales has risen to 0.65:1.

Judging from the situation in the second half of the year, as China's economy continues to recover steadily, more policies and measures have been rolled out to promote consumption, which will provide strong support for the development of the automotive market. Meanwhile, factors such as a chip shortage and rising raw material prices will also have a certain impact on the automotive market. Based on comprehensive research and judgment, we believe that automotive sales for the whole year are expected to achieve positive growth, reversing the continuous decline for three consecutive years.

By the end of June this year, China's car ownership had reached 292 million, with an average of over 200 cars for every 1,000 people. In the next step, the Ministry of Commerce (MOFCOM) will thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council. In accordance with the new situation and changes, the MOFCOM will work with relevant departments to boost automobile consumption and accelerate the construction of a new development paradigm featuring step-by-step consumption upgrading, efficient use of vehicles, and a green cycle.

First, we will accelerate the transformation of automobile management from emphasizing purchase to use, adjust and optimize automobile management policies, remove obstacles restricting automobile purchase and use, and release the potential of automobile consumption.

Second, we will deepen reforms to streamline administration and delegate power, improve services in automobile circulation and promote the introduction of related measures to stimulate the vitality and internal driving forces of the automobile market.

Third, we will promote the removal of unreasonable restrictions on used car transactions; further facilitate the standardized, branding, and large-scale development of the used car industry; and boost the market.

Fourth, we will improve the relevant management systems in the field of automobile circulation and speed up the revision of the Measures for the Administration of the Circulation of Secondhand Automobiles and Provisions on the Standards for Compulsory Retirement of Motor Vehicles to optimize the automobile consumption environment. Thank you.

International Business Daily:

Recently, prices for international bulk commodities and raw materials have soared, and the RMB has appreciated. How much impact will these have on the business of foreign trade companies? What measures will be taken to ease the strain on business costs? Thank you.

Li Xingqian:

Thank you for your understanding and concern about the pressure on foreign trade companies. Since the beginning of this year, multiple difficulties have arisen, including rising raw material prices, poor shipping logistics, volatile exchange rates, and rising labor costs. These led to an increase in operating costs of foreign trade companies and squeezed profit margins. Some foreign trade companies "didn't want to receive orders" or run into a situation where "production increased, but profits dropped." Small- and medium-sized foreign trade companies were hit harder. The MOFCOM has attached great importance to this situation. Analysis shows that the international transmission of prices is the main reason for an increase in raw material prices. The rapid increase in domestic and international demands worsened the situation, which brought great pressure on manufacturing companies and foreign trade companies. Together with local governments and departments, we have been closely following and monitoring the price of bulk commodities, promoting imports through various channels, and building stable foreign trade channels for bulk commodities. The prices of some bulk commodities have already fallen. In terms of maritime logistics, we have been cooperating with relevant departments to closely follow shipping problems, promote an increase in container output, ensure shipping capacity, and enhance price supervision. In response, a series of measures have also been rolled out in various places. At present, significant results have been made to enhance shipping capacity, the return of old containers, and the launch of new containers. Regarding exchange rate fluctuations, we have been working with relevant departments to promote financial institutions to continuously optimize products and services for hedging foreign exchange risks, and actively promoting the guide to exchange rate hedge for foreign trade companies to provide targeted guidance for companies to avoid risks.

The MOFCOM has been closely following the practical difficulties faced by foreign trade companies. Based on in-depth analysis and judgment, we will further improve the trade policy toolbox, optimize the business environment, cut costs for companies, and ensure the stable production and sound development of various market entities, especially micro-, small-, and medium-sized foreign trade companies. Thank you.

Xing Huina:

Today's press conference concludes here. Thanks to all the speakers and friends from the media. Goodbye!

Translated and edited by Zhu Bochen, Wang Wei, Xu Xiaoxuan, Chen Xia, Zhang Liying, Zhang Rui, Cui Can, He Shan, Lin Liyao, Zhang Junmian, Zhang Tingting, Liu Qiang, Qin Qi, Li Huiru, Wang Yiming, Yuan Fang, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Xu Nanping, vice minister of science and technology

Zeng Yixin, vice minister of the National Health Commission

Wang Chen, vice president of the Chinese Academy of Engineering, president of the Peking Union Medical College, and director of the National Center for Respiratory Medicine

Liang Wannian, team leader of the Chinese side of the joint expert team of WHO-convened Global Study of Origins of SARS-CoV-2

Yuan Zhiming, director of the Wuhan National Biosafety Laboratory, and researcher at the Wuhan Institute of Virology, Chinese Academy of Sciences

Chairperson:

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

Date:

July 22, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning! Welcome to this press conference from the State Council Information Office (SCIO). The topic of the press conference is COVID-19 origin tracing. Today, we have invited Mr. Xu Nanping, vice minister of science and technology; Mr. Zeng Yixin, vice minister of the National Health Commission; Mr. Wang Chen, vice president of the Chinese Academy of Engineering, president of the Peking Union Medical College, and director of the National Center for Respiratory Medicine; Mr. Liang Wannian, team leader of the Chinese side of the joint expert team of WHO-convened Global Study of Origins of SARS-CoV-2; and Mr. Yuan Zhiming, director of the Wuhan National Biosafety Laboratory, and researcher at the Wuhan Institute of Virology (WIV), Chinese Academy of Sciences. They will introduce the relevant information and take your questions.

Next, I will give the floor to Mr. Zeng.

Zeng Yixin:

Friends from the media, good morning. I'm very glad to see so many journalists present at this press conference regarding COVID-19 origin tracing, as this is a very specialized issue. Since the COVID-19 outbreak, all responsible countries and scientists have been eager to find out where the coronavirus came from. Solving the question will greatly help prevent similar pandemics. On March 30, the World Health Organization (WHO) released the joint study report "WHO-convened Global Study of Origins of SARS-CoV-2: China Part," marking a good start for the global study of the origins of SARS-CoV-2. Governments, scientists, media outlets around the world have paid great attention to the report. Over the past few months since the report was released, more and more scientific evidence has proved it is a valuable and authoritative report that stands the test of science and time. The conclusions of the report are scientific, as they were made on the basis of scientific principles.

First, let's review the background of the report.

Before the joint study, China had organized a multidisciplinary team to do a lot of work on origin tracing, despite arduous epidemic prevention and control tasks. It was on the basis of this work that our experts and the WHO experts to China discussed and jointly formulated the Terms of Reference (TOR) last July. Since then, China has carried out origin-tracing studies in strict accordance with the TOR.

At the beginning of this year, the WHO international expert team arrived in China and started the China part of the global study of the virus origins. China upheld the principles of openness, transparency, science, and cooperation, and gave full support to the expert team. Together with local governments, we have done our best to coordinate relevant organizations to meet the requirements of the experts. The experts visited a total of nine places they wanted to visit, including Jinyintan Hospital, the Huanan Seafood Wholesale Market, and the WIV. They talked with everybody they wanted to talk with, including medical workers, laboratory staff members, researchers, market managers, merchants, residents, and recovered patients. The joint origin-tracing study involved a heavy workload, but the experts carried out careful and in-depth analysis into every question and every piece of data. They often worked around the clock, forgetful of their sleep and meals. We deeply admire their professionalism and spirit of science. On behalf of the Chinese government, I would like to express our heartfelt gratitude to the international experts.

Second, I would like to talk about the conclusions of the study.

The report is an account of the China part of the global study of the virus origins. The expert team reached the following conclusions. The coronaviruses found in bats and pangolins are most highly related to SARS-CoV-2 and share the highest homology with SARS-CoV-2 by sequencing. However, neither of the viruses identified so far from these mammalian species is sufficiently similar to SARS-CoV-2 to serve as its direct progenitor. Although the homology is high, there is still much difference. Based on research results in various fields, such as clinical epidemiology, zoology, and environmental testing, the joint study team assessed the likelihood of different possible pathways for the introduction of the virus. First, direct zoonotic spillover is considered to be a possible-to-likely pathway. Second, introduction through an intermediate host is considered to be a likely-to-very-likely pathway. To put it simply, this means the virus would have been transmitted from an animal reservoir to an intermediate host, followed by transmissions to humans. This a likely-to-very-likely pathway. The third potential pathway is introduction through cold food chain products. Some sporadic outbreaks in many places last year showed that introduction through cold food chain products was possible. So, this is considered a possible pathway in the report. At last, introduction through a laboratory incident is considered to be an extremely unlikely pathway.

Third, let's talk about the next step for tracing the origin of the virus.

On the one hand, we have been actively supporting relevant departments and scientists to continue the tasks that need to be supplemented and improved, which are clarified in the China part of the joint report of WHO-convened global study of origins, and will give timely feedback to the WHO. In other words, we will complete the remaining tasks as soon as possible. On the other hand, the China part of the joint report has pointed out the direction for the next step of joint study of origins in various countries and localities under the global framework, and we should continue to move forward along this direction. I want to emphasize that the China part of WHO-convened joint study on the origins of the COVID-19 is an excellent example of international cooperation. We worked with the WHO and jointly explored a set of effective working mechanisms and working methods for global origin tracing of emerging infectious diseases. WHO experts have established a sound cooperation mechanism with Chinese experts. The cooperation between the two parties has been very close, which is of great significance to promoting the global tracing of the origins of the COVID-19. The expert group has always upheld a scientific and rigorous professional attitude, repeatedly discussing and researching every specific issue. This is a very good model and mechanism. Therefore, we sincerely hope that the international team of experts who participated in this study on origins can continue to play a role in the next phase of relevant work and make full use of their valuable experience in the follow-up global tracing study, making contributions to get to the bottom of the origin of the COVID-19.

Origin tracing is a complex scientific matter that involves many disciplines and experts in many different fields. It is also a global problem. The origin tracing of diseases such as AIDS, Ebola, Middle East Respiratory Syndrome, SARS in 2003, and avian flu in 2009 all proved to be very difficult, and some of their origins still remain undiscovered. Therefore, for the next phase, the origin tracing work should be conducted under the overall planning and coordination of the WHO and based on the first phase of study. Outstanding experts from multiple countries should be organized to carry out further studies. It is necessary to ensure that scientists must be the main actors in the research. We also call for strengthening exchanges, cooperation and information sharing. We should scientifically carry out the work of tracing the origin.

That's all for my opening remarks. Thank you!

Shou Xiaoli:

Thank you, Mr. Zeng, for the introduction. Now the floor is open to questions. Please identify your news outlet before raising questions. 

CCTV:

As mentioned earlier, tracing the origin of a virus is a long-term complex scientific issue. Relevant origin tracing work was carried out on the 1918 flu pandemic, 2009 H1N1 pandemic, and the global AIDS epidemic. This time, the inquiry into the origin of the COVID-19 has also been carried out globally. What is its significance and the reasons for it? Thank you.

Wang Chen:

Let me answer this question. This is a very important and necessary scientific and health matter. There are three important issues of an infectious disease. The first is the source of infection; the second is the transmission route; and the third is who is likely to be infected, the so-called susceptible groups. These three issues are important scientific links and scientific elements for us to understand the infectious disease. Origin tracing is related to the issues of source and transmission route. Therefore, by clarifying the issue of origins, we can answer the question of where the pathogen of this infectious disease came from. It holds important value not only for this infectious disease, but also has reference significance for the prevention and control of other infectious diseases in the future. The scientific community around the world is deeply interested in this issue, and it is a key matter that we need to focus on and explore. Therefore, this matter is worth exploring. But as Mr. Zeng said just now, we must realize that it is complex, and we need to hold a particularly objective and scientific attitude when probing into origins of a virus. 

Asahi Shimbun:

I have two questions. First, the WHO proposed last week to conduct a second phase of the study into the origin of COVID-19 in China, including an investigation into Wuhan's seafood markets as well as audits of relevant research institutions like the WIV. They expect China to support this process in a spirit of transparency. How do you comment on this? Will China welcome the second phase of the COVID-19 origin probe? Second, in a report released in March on the China Part of the global study of the origins of COVID-19, the WHO said it was extremely unlikely that the virus escaped from a laboratory. However, some scientists have voiced their views in an article published in Science magazine this May, saying that consideration should be given to both a natural spillover and a lab accident. Two countries initially reported the COVID-19 outbreak. Do you think the virus was caused by natural spillover or human factors? Thank you.

Zeng Yixin:

I'll take the first question. Thanks for asking this question. I would like to express my thoughts on the WHO's plan to conduct the second phase of the study into the origin of COVID-19. Honestly speaking, I was rather shocked over the news, because the plan has listed the hypothesis that China's breach of laboratory protocols caused the virus to leak as one of the research priorities. From this point, I can feel that the plan showed disrespect for common sense and arrogance toward science.

First, rumors including one about three WIV staff falling ill and the other one about the WIV conducting so-called "gain of function" experiments on the virus were dispelled long ago. They are pure lies.

Second, RaTG-13, the most similar coronavirus that the WIV collected from bat specimens, shares only 96.2% homology with SARS-CoV-2. 

Moreover, some have wondered if the SARS-CoV-2 is a man-made virus. Some Indian researchers published a preprint scientific manuscript saying that they have found similarities between SARS-CoV-2 and HIV, speculating that the SARS-CoV-2 was man-made. The authors withdrew the paper after being criticized by their international peers. As many other viruses also show similar sequences, we cannot infer simply from this point that the SARS-CoV-2 was man-made. Based on thorough analyses, many experts concluded that there are not any traces of modification in the virus. It's common knowledge to genetic engineers that the artificial modification of a virus will definitely leave traces. But SARS-CoV-2 doesn't have any such traces, which totally rules out the theory that it was man-made.

So far, none of the staff or post-graduate students at the WIV have ever contracted SARS-CoV-2, nor has the WIV conducted any gain-of-function research on coronaviruses. There is no so-called man-made virus there. Then how could it happen that the virus leaked from the laboratory due to violations of lab procedures? Therefore, the "lab leak" theory goes against the common sense and scientific law. More importantly, the WHO sent an expert team on a field trip to the WIV and arrived at the conclusion that a lab leak was extremely unlikely. The experts, selected by the WHO, were authoritative in their respective fields and were rich in research experience. We should respect their conclusions. Therefore, the WHO's plan on the second phase of the study into the COVID-19 origin, as you mentioned, demonstrates a disrespect for common sense and goes against science in some respects. We cannot accept such a plan.

The COVID-19 origin tracing is definitely a scientific issue. The Chinese government has long supported the science-based investigation of the COVID-19 origins, but opposes politicizing the issue. We believe the second phase of origin tracing should be an extension of the first one, guided by the Resolution WHA73.1 and conducted after thorough discussions and negotiations among all WHO members. What was done in the first phase of origin tracing, especially by those that have reached a clear conclusion, should not be repeated. What should be carried out is the origin tracing of early cases, molecular epidemiology, and intermediary hosts in multiple countries and regions based on extensive consultations among WHO members.

The WHO-China joint research, conducted in the first phrase of origin tracing, fully demonstrated that the scientific and rational approach is to conduct work after the WHO and the host country reach consensus on origin-tracing research. The approach not only demonstrates respect to sovereign states, but also promotes origin-tracing work to be conducted in an orderly, smooth, high-quality, and efficient manner. It is necessary to summarize and absorb the successful experience of phase-one work and carry out the next phase based on it. Therefore, on July 4, the Chinese expert team proposed its recommendations on the second-phase origins study to the WHO and exchanged views with WHO experts. In the proposal, we voiced our concerns and core points. We hope the WHO can carefully consider the concerns and advice of Chinese scientists, take investigating the origin of the COVID-19 virus as a scientific issue free from political interference, and proactively and properly conduct sustained investigations into the origin of the virus in multiple countries and regions around the globe. We also call for strengthening international cooperation and exchanges in origin-tracing research, finding the most likely source of the virus as soon as possible and preventing the next pandemic like COVID-19 from happening again by every possible means. Our aim is to better understand the source of SARS-CoV-2, in order to handle the virus effectively and prevent similar pandemics from happening again. Therefore, we must equip ourselves with science-based principles, and promote origin-tracing work in line with scientific rules. This is the attitude adopted by the Chinese government. Thank you. 

Yuan Zhiming:

The WIV has responded many times to the coronavirus lab leak rumors. Right now, Mr. Zeng elaborated on the same issue, and now I would like to add something.

It has become an academic consensus that the COVID-19 virus evolved in nature. On July 5, 2021, 24 leading experts from around the world published an article again in The Lancet medical journal, noting that the coronavirus Chinese lab leak theory remains without scientifically validated evidence. On July 7, 2021, scientists from the United States, the United Kingdom and Australia released a preprint paper in Zenodo, a research data sharing platform in Europe, in which they wrote, "There is currently no evidence that SARS-CoV-2 has a laboratory origin. There is no evidence that any early cases had any connection to the WIV, … nor evidence that the WIV possessed or worked on a progenitor of SARS-CoV-2 prior to the pandemic." A few days ago, in a joint paper published in the journal Science China: Life Sciences, 22 Chinese and overseas scientists applied a classic evolutionary theory to elaborate why SARS-CoV-2 could only come from nature, rather than being man-made. Using scientific evidence, they refuted the lab leak conspiracy theory on the origin of the virus.

I have also noticed that some media have paid great attention to the safety of the Wuhan P4 lab. As a laboratory with the highest level of biosafety, precaution and protection, the Wuhan P4 lab has never seen any laboratory leaks or human infections since it began operating in 2018. Designed, constructed and run in line with both international requirements and domestic standards, the Wuhan P4 lab has stable and reliable biosafety precautions in place, and has established a set of complete biosafety management systems and a professional team to bolster, manage and maintain its operation. I can assure you that the infrastructure, management, team composition and working protocols at the Wuhan P4 lab are the same as other P4 labs in operation around the world. There were media reports that three researchers at the WIV went to the hospital in November 2019 with all the same symptoms as COVID 19. These reports were created out of thin air. It would have been very simple for us to know the truth if the reporters had provided us with the names of these alleged researchers. In fact, we have long proposed the solution, but received no response to date.

What I want to emphasize is that first, before December 30, 2019, the WIV didn't come into contact with, preserve or study SARS-CoV-2; second, the WIV never designed, manufactured or leaked the virus; third, none of the WIV staff members and graduate students have ever been infected with the virus so far.  

Facing the sudden outbreak of the COVID-19 epidemic, the WIV, leveraging its long-accumulated advantages in platforms, technologies and talent, quickly identified the virus as a new coronavirus and isolated the virus strain. The institute also sequenced the whole genome of the virus and submitted the genome sequence to the WHO under the United Nations on January 12, 2020. These important research results have provided bases for global respiratory pathogen testing, antiviral drug screening and vaccine research, and bought time for the global fight against the pandemic. After the virus strain was isolated, we organized tasks of antiviral drug screening, vaccine research and animal model construction, which effectively supported the scientific and technological response to the pandemic.  

Certainly, due to its location in Wuhan and its work in fighting the epidemic, the WIV has attracted global attention and been embroiled in various kinds of rumors. These rumors have exerted great pressure upon the researchers at the institute, interfered with some of our normal scientific research, and brought negative impacts on normal academic exchanges and sci-tech cooperation in the international academic community.  

Facing the still raging pandemic, no country can stay immune. Only global cooperation and coordinated action can effectively contain the spread of the virus and restore prosperity and harmony to people around the world. Adopting the attitude of openness and transparency, the WIV is ready to keep working with scientists to contribute to the fight against COVID-19. Thank you. 

Liang Wannian:  

I would like to add something. During January and February this year, the WHO-China joint expert team, while studying the origins of the virus, put forward four different possible or potential pathways for the introduction of the virus, one among which was through a laboratory incident. The four pathways were proposed based on our past experience and understanding of viruses, especially the coronavirus-related diseases. The four routes include the direct introduction from a natural host to humans; the introduction through wild animals and an intermediate host to humans from a natural host; a cross-border long distance introduction through cold chains; and an introduction through a laboratory incident. All the four routes are called "potential introduction pathways." How did we assess them? At that time, the whole study was centered on these four routes to collect materials, including carrying out interviews, literature reviews and field inspections.  

I will focus on laboratory-related hypotheses. At the beginning, after discussion, the expert team basically thought that laboratory incidents may occur most likely in two cases. One is artificial synthesis, which scientists explicitly find impossible. The other is leakage and the most important point in this regard is whether the laboratory had the virus or not. The answer is that the WIV didn't engaged in such research before, as Mr. Zeng and Mr. Yuan clearly explained just now. The scientific community and the Wuhan side have made it clear as well. However, for further validation, the expert team specially went to the WIV to get details, and conducted field inspections with relevant researchers and management staff. We obtained information particularly about the institute's implementation of standard processes, management and security systems, and about research projects the institute was and is engaged in. Then, we came back and discussed again. We talked about evidence that supported the lab incident and evidence that didn't. The detailed information is recorded in the report on the joint WHO-China study of COVID-19 origins, which was published on the official website of the WHO on March 30. The details about our inspection to the WIV are also included in this report. You are welcome to read it. We finally concluded that the introduction through a laboratory incident was "extremely unlikely."

When we were assessing the possibilities, we adopted a five-scale system. Because it's not easy to tell whether there is a possibility or not. It is not easy to determine whether a possibility absolutely exists or absolutely doesn't. So, we adopted a semi-quantitative method to conduct this assessment by utilizing continuous variables, in which we graded the virus' four possible pathways of introduction with the five rankings of 'very likely,' 'likely,' 'possible,' 'unlikely,' and 'extremely unlikely.' As for the possibility of a lab leak, our experts reached a final consensus that it is 'extremely unlikely.' As we were discussing the issue and finalizing the joint report, we offered relatively clear advice and recommendations for further studies regarding other possible pathways of introduction of the virus, including direct zoonotic transmission, introduction through an intermediate host followed by zoonotic transmission, and introduction through the cold food chain. This advice and recommendations include the objectives, emphases, and methodologies for further studies. However, we think that introduction through a laboratory incident is 'extremely unlikely,' therefore, it is no longer necessary to continue to devote energy and resources to study this hypothesis. Of course, we don't exclude the possibility of new evidence emerging. In that case, further studies can be conducted. If certain countries need to do further studies on this aspect, we suggest, from the point of view of the Chinese experts, that the studies be conducted in countries that haven't undergone lab inspections like the ones conducted in Wuhan, to at least gain more understanding of possible leaks there, which actually gives rise to safety issues. Together, our experts carried out a relatively thorough exploration and inspection of the Wuhan lab and reached the conclusion that it is 'extremely unlikely' to be the pathway of introduction of the virus. 

That's all I want to add, thank you.

Phoenix Satellite Television:

Previous reports say that several miners fell ill inside a mine in Tongguan town, in Mojiang county of Yunnan province in 2012. According to what the experts know, is there a connection between these miners and the bat coronavirus RaTG13 or SARS-CoV-2? Thank you.

Yuan Zhiming:

In July and October 2012, the WIV team received 13 blood serum samples belonging to four of the miners from Tongguan town, which were collected by the First Affiliated Hospital of Kunming Medical University and sent by the Guangzhou Institute of Respiratory Health. We didn't detect any bat coronavirus in the miners' blood serum samples after conducting multiple nucleic acid tests, antibody tests, and genome sequencing. This also shows that these cases are not connected to SARS-CoV-2 at all. 

The RaTG13 coronavirus that you just mentioned is a viral sequence detected by the WIV team from the biological samples collected from Mojiang county in Yunnan province in 2013 and was not discovered from the blood serum samples of the sick miners that we received in 2012. So there is no evidence that the RaTG13 coronavirus and similar bat coronaviruses have any connection with the cases of the sick miners from Mojiang county in 2012. 

Of course, the WIV has made several public responses regarding the origin and distinctive features of the RaTG13 coronavirus and its difference from SARS-CoV-2. On July 24, 2020, the Science magazine published an interview with Professor Shi Zhengli, which disclosed that the evolutionary distance between the RaTG13 coronavirus and SARS-CoV-2 ranges from 20 years to 50 years. If you are interested in this, you can read the related content of that interview in the Science magazine. Thank you.

Reuters:

Recently, the WHO discussed concerns over information transparency. Is China willing to provide raw data that might reveal the early transmission of COVID-19 in Wuhan? If not, can you explain the reason? The virus database managed by the Wuhan Institute of Virology went offline in 2019. Has the institute published all the genome sequences it has collected since the outbreak? The joint report by the WHO and China said that scientists conducted tests on thousands of animal samples — will China do any more tests? Will China carry out studies on more venues and facilities that are used for breeding animals? How many more bat communities can be studied? Thank you.

Liang Wannian:

I will answer the first and third questions. When our joint team of experts conducted the study in January and February, we had sufficient discussions over the issue of providing early-stage raw data. At that time, we said that since this is an international joint research team launched by the WHO, the 17 foreign scientists and the 17 Chinese scientists should be acting as a whole and all the members should be highly integrated and conduct the research work as a team. We followed four common principles to complete the origin-tracing task initiated by the WHO. We had been following the principles of making research plans together, conducting on-site inspections together, analyzing data together, and presenting our study report and results together. 

The most important thing in the origin-tracing work is the early information and data. Mr. Zeng just explained that following the outbreak of the epidemic, Chinese scientists carried out extensive and in-depth origin-tracing work under the leadership of the Ministry of Science and Technology, the National Health Commission and other relevant departments before the joint research launched by the WHO. Among this work, we were very concerned at the time with the data related to animals and early cases. I have also noticed that regarding the data of early patients, some foreign voices have said that we didn't provide them, especially the data of the first 174 COVID-19 cases. In fact, these patients' data were all displayed and shared during our stay in Wuhan. However, China has relevant standing regulations regarding patients' clinical data, including epidemiological survey data and laboratory test data, which involves personal privacy. If the data is completely released, this will violate the relevant regulations. At the time, we did a lot of work to centralize these databases, and conducted analysis and research together with foreign experts, including on what to analyze, what patterns could be seen in the end, and the conclusions drawn in the final report — we did this work together. It is only because we need to guard the patients' privacy, that we did not agree to give away the original data, nor did we allow them to copy it or take photos. At the time, international experts also fully understood and believed that this was international routine, not only in China. Later, we also explained many times why we were not handing over the original data. In fact, this is a rough concept. First, what does it mean to say we "did not provide" the data? In fact, we showed it to you and we analyzed it together. We thought it was provided; it's just that we didn't let you take the data away. Second, what is the "original data"? Was it the data we finally analyzed after sorting and analysis, or the raw data, every single data point? There are big differences in understanding. I remember that when we were conducting research, our team of experts had no problem on this point, and thought that the data provided by China was for joint research. I want to explain this a little bit: It's not true that we deliberately didn't provide the data; neither was it because we didn't give the data away to the foreign experts, that the conclusions drawn in our research report were said to be one-sided. You can understand this when you look at our detailed research report.

The third question you just mentioned was regarding the research into animals. We believe that the introduction pathway of animal origin, especially from natural hosts to intermediate hosts to humans, has gone from "more likely" to "very likely." Therefore, we particularly suggested that in the future more energy should be invested, and even that the top priority of the work should be concentrated in this direction. Chinese scientists have done a lot of work in this regard. When we went to work on site in Wuhan, the Chinese side had already demonstrated some results of tests on animals in markets. Just now, Mr. Zeng introduced in detail that there were no positive findings from the tests of animals in markets. Also, we had the comprehensive tracing of their upstream farms, and no positive results were found. The scope was then further expanded. We had conducted virus antibody or nucleic acid testing for more than 38,000 livestock and poultry samples, and more than 41,000 samples of wild animals collected from 31 provincial-level regions across the country from 2018 to 2020, yet still no positive results were found. All such detailed data, including the animal species, sources, testing methods and testing results, was reflected in detailed tables and graphs in the joint report. Actually, in brief, whether it was in markets or the upstream of the markets, or in the broader areas of the country, whether it was livestock and poultry, or wild animals that Chinese scientists can find, we have carried out tests on them all, and no positive results have been found in terms of antigens or antibodies.

In fact, Chinese scientists have also done a lot of research on bats and collected a large number of samples. At that time, compared with other countries, we believed that China had led the world in the breadth and depth of bat research and done more. As Mr. Zeng and Mr. Yuan just mentioned, viruses quite similar to SARS-CoV-2 were found through our research, but there are still differences. Scientifically speaking, it is certain that no SARS-CoV-2 has been isolated from China's large number of bat samples. Similarity does not mean the same. Secondly, there are many kinds of bats that live widely in the world. As we know that there has been no systematic study on bats in many parts of the world. Studies on bats, as parts of studies on wild animals, should be a focus when tracing origins of COVID-19, according to the basic conclusions of scientists and the results of our first-phase origin tracing. Bats are so widely throughout the world, and they are very likely to be an intermediate animal, so the research should not be limited only in China but also encouraged on a larger scale, such as in countries and regions with a bat distribution. 

Studies on origins of COVID-19 in animals should be the focus of next phase. This is the most worthwhile thing to do. The natural evolution of a pathogen is the most worthwhile topic of our attention. Our study should not only be limited on wild animals such as bats, but also related animals, such as pangolins, civets, minks and more. It is valuable to study the possible origins and distribution of these intermediate hosts, which have been proved able to carry or possibly carry pathogens through researches carried out by scientists of various countries. Of course, further research on markets that have had outbreaks, including the upstream and downstream chains of farms, is also valuable. I know that Chinese scientists have been working very hard in this regard even after the global study on the coronavirus origins. We have also been expecting that scientists around the world will do this work, focusing on natural evolution and animals. That's all I have to say. 

Yuan Zhiming:

Just now, the reporter mentioned the database of the WIV, which is a preliminary framework established by the team of the institute. The structure and content of the database are still being improved. Considering the large number of malicious attacks on the institute's website and the work and private email addresses of many of its staff, including Shi Zhengli's team, the database is currently shared within the WIV. 

The project team will analyze and systematically sort out the original data of the database and publish research results in the form of papers, which will also be displayed and retrieved in a visual way on the database. As we know, it is the usual practice that the original data of scientific research is published in the form of papers after being analyzed and collated and the database will then be opened to the public. The institute will strictly follow the rules of the sci-tech community in displaying and sharing our scientific data. 

The WIV has always insisted on timely sharing of the information on scientific research. We have submitted to the WHO the whole genome sequence in a timely manner after we obtained the preliminary results of the pathogen identification. As early as Feb. 3, 2020, the research team, led by Shi Zhengli, published a paper in Nature linking the origin of COVID-19 to nature. After we found that several drugs had antiviral activities at the cellular level, we published our research results in international magazines on Feb. 4. Meanwhile, the WIV also actively took part in international video and audio academic conferences, organized by the WHO, the United States National Academy of Sciences, the French National Institute of Health and Medical Research and the Russian Academy of Sciences, to share our research results in the establishment of animal models, the selection of antiviral drugs, and the development of inactivated COVID-19 vaccines with our international counterparts. 

Running the laboratory, we have long upheld a set of management principles which feature openness, shared benefits, and transparency. Over the past four years, we have continuously organized workshops concerning lab-based biosafety management and technologies, and helped some countries train groups of personnel in the fields of infectious diseases prevention and control and biosafety management. We proactively participate in the global and regional system of high-containment biosafety labs, and become one of the designated labs under the UN Secretary-General's Mechanism (UNSGM) and a member of the Group of High-containment Laboratory Directors (GOHLD), and share with global colleagues our management experience and technological progress. Some of our staff have also received biosafety training and relevant qualifications in France, Australia, Canada and the U.S. In the meantime, we have invited biosafety experts from France, the U.S., Germany, the U.K., and Canada to our labs and they provided on-site guidance and exchanged experience with us, so as to jointly promote the safe and stable operation of high-containment laboratories around the world. That's all. Thank you.

Bloomberg:

Since the WHO team concluded its field mission in China, research published in June showed that animals that could've carried the coronavirus were being sold live at markets in Wuhan, including at the Huanan market. Was this known when the WHO team visited Wuhan? If not, why? And what investigation of these animals has taken place? Additionally, what communication has there been between China and the WHO about these animals? Second question, what progress has been made in checking for SARS-CoV-2 antibodies in the stored blood of Hubei residents collected in 2019? Thank you.

Liang Wannian:

I'll take your questions. Regarding the information mentioned in your first question, we knew nothing about this situation when the WHO and China joint team were doing their jobs in January and February. At that time, the WHO and China joint team had spent half a day conducting an on-site investigation in the Huanan Seafood Market and discussed and communicated with relevant shop owners and management staff. The joint team went into detail about the situation in the Huanan Seafood Market, including the distribution of booths, the types of items on sale, the composition of shop owners, management details, and certain regulations, to name a few. At that time when we visited the Huanan Seafood Market, it was shut down and all the businesses were closed. We got inside the market and spent hours communicating and discussing. Therefore, we have presented all the information that we know about Huanan Seafood Market, such as those concerning the composition and situation of sales staff and customers, as well as the products being sold. This information was jointly studied and discussed by the experts of the team. Thus, we did go to the Huanan Seafood Market. In fact, since the foreign experts of the joint team left Wuhan on Feb. 10, Chinese experts have maintained good communication and contact with them, because lots of scientific issues require further discussions after the field work was finished.

As you may have noticed, the WHO and China joint team held a press conference in Wuhan on Feb. 9, and the final joint research was published on the WHO's website on March 30. During this period of time, we communicated with 17 global experts almost on a daily basis in order to improve the report, since many issues required to be stated in a more precise manner. Since the research was published on March 30, we have still maintained good relationships and built sufficient communication with foreign experts. For example, Chinese experts have kept close contact with their foreign counterparts concerning follow-up works and some scientific issues. Just now, Mr. Zeng also mentioned that Chinese experts gathered and conducted research on the WHO's plan for a second phase of the study of origins of COVID-19 -- based on the experience of the first phase of such a study, especially the report of the joint study of the first phase. Experts of both sides have taken a responsible attitude. We have drafted a proposal from the perspective of Chinese experts on the WHO's plan for a second phase of the study of origins of COVID-19. During the drafting process of the proposal, we discussed and communicated with relevant WHO experts. We also hope that they could put forward relevant suggestions for the WHO from their own perspective, so as to provide a basis for better carrying out the global study of origins of COVID-19. In fact, throughout the whole COVID-19 origin-tracing process, scientists have upheld the spirit of seeking truth regarding scientific issues. We have maintained very good relationships. This is my answer to your first question.

Your second question is about blood samples. This is a very good question. Regarding the origin-tracing of the virus, apart from the early epidemiological studies, testing of early samples, especially the blood samples, if any pertinent evidence found through tests, will be conducive to tracing the earliest COVID-19 case. According to China's research, the earliest case reported in China was on December 8, as said in our research report. But the earliest reported case is an index case at most, and doesn't mean it is the primary case. The primary case refers to the first human who was infected at the moment when the virus jumped from an animal to a human. The person is also called the "patient zero." Our research and the previous related research papers of Chinese scientists fully suggest that the case reported in Wuhan on December 8 is probably not the primary case. There might be other cases that occurred before. But where did these cases come from? This is another question. The region where cases were first reported doesn't necessarily mean it is the region where the virus jumped the species barrier from animals to humans. Of course, it's better to test the blood samples. We had made our proposals in Wuhan, and invited experts from the Wuhan Blood Center to have a full discussion.

Experts from the Wuhan Blood Center told us that they had kept blood samples, but the samples were kept for the use of responding to possible medical disputes and lawsuits due to blood transfusion. Such a sample is called a "blood braid." A small amount of plasma and serum is kept in the pilot tube of a blood bag, which is sealed at both ends. In accordance with the Article 31 of the Measures for the Administration of Blood Stations, the term of preservation of a blood sample shall be two years after the whole blood or the component blood is used. A quite small amount of blood is preserved during the period and it can only be available for use when there is a medical dispute or lawsuit. For example, a donor has donated blood to a patient, and then the patient is diagnosed with Hepatitis or AIDS. The disease is probably transmitted through blood transfusion and samples are kept to determine whether the disease was caused by blood transfusion. So, samples are usually kept for two years at least, and kept in the pilot tube of the blood bag. The amount of blood serum is quite small. We believed that it was necessary for us to conduct the test. I remember that we and the experts from the Wuhan Blood Center and the WHO spent an afternoon discussing it. The issue was then specifically referred to in our report, which will be our future research work in the next stage. Once the blood from the Wuhan Blood Center is used and after the two-year validity term, meaning the samples meet the requirements stipulated in the Measures for the Administration of Blood Stations, we will carry out relevant works. In fact, the Chinese side is organizing related experts and institutions to make preparations for the work. So far, we have made several assessments and evaluations on the testing methods and action plan, which will be implemented after the expiry. Related institutions from the Chinese side also express that, once they have the results, they will deliver them to both the Chinese and foreign expert teams. Thanks. 

China Daily:

According to the WHO expert team for origin tracing of SARS-CoV-2 this February, COVID-19 introduction through an intermediate host is "likely-to-very-likely", and introduction through cold chain products is "possible." What's your take on that? Thanks. 

Wang Chen:

The role the cold chain plays in spreading infectious diseases is a new phenomenon. I am an expert in respiratory diseases. Respiratory infectious diseases are a dominant type of infectious diseases. The transmission route of respiratory viruses, including the cold chain, is indeed a new phenomenon that deserves our full attention. In summary, first, in terms of epidemiology, we have found associations between the cold chain and the disease. That is to say, through epidemiological investigations, we found that the possible cause of some COVID-19 infections could be traced to touching the surface of cold chain products. The close associations can be seen from the COVID-19 flare-ups in Beijing's Xinfadi Market and Qingdao. The infected people were exposed to the cold chain, and no other possible sources of the virus were since found, except the cold chain.

Second, in terms of detection of the nucleic acid of the virus, positive results have been found on cold chain goods. During the outbreak in Qingdao, in particular, the RNA of SARS-CoV-2 was detected on the surface of cold chain goods, and the virus was isolated and cultured, proving the fact that living virus existed on the surface of cold chain goods. Given the two points above, the chain of evidence has become complete. Moreover, there is a circumstantial evidence for the exploration of the scientific issue, which is that the virus can survive and remain infectious for a longer period in a cold and relatively dry environment. It can even survive for 21 days in winter. Therefore, when the virus emerges in a place, and if the cold chain products get the virus, the virus can be transmitted from one place to another in a low temperature during transportation, leading to cross-regional transmission accordingly. The cold chain transmission is a new feature that we have found in the COVID-19 pandemic, which is worthy of attention, and the chain of evidence for the transmission has become relatively complete.

To further trace origins of the virus, we suggest that the cold chain should be taken as a key clue. Given the circumstances of international trade, with the exchange of people and goods around the world, the items-to-human transmission in the cold chain environment has made pathogen transmission more complicated, which is particularly worthy of investigation and studies.

Xinhua News Agency:

Since the outbreak of the pandemic, scientific research has played a very important role. Could you talk about the work of the Ministry of Science and Technology in terms of the scientific research on origins of COVID-19? What achievements have been made? Thank you. 

Xu Nanping:

Thank you for your question. There are a lot of journalists today, and everyone looks very serious. It shows that everyone recognizes the importance of the origin tracing of COVID-19. We should realize that origin tracing is substantially a scientific matter, so scientific research has played a crucial role in searching for origins of the virus. The Chinese government attaches great importance to the scientific research on the origin tracing of the virus. After the outbreak, China made five priorities for scientific research, and origin tracing of the virus is one of the priorities which has been considered as very important. The Chinese government called on the scientific research community to follow the principle of "open, transparent and responsible" and put the utmost effort to find out "where the virus came from." Responding to this call, the Ministry of Science and Technology has organized research groups from the Chinese Academy of Sciences, the Chinese Academy of Medical Sciences, the Chinese Center for Disease Control and Prevention, and universities to carry out scientific research on the origin tracing of the virus on a number of priority areas, including animals, humans, molecules and the environment. Some progress has been achieved.

I'd like to name some examples. I think everyone is concerned about the first one. After human-to-human transmission was detected, we wondered where the virus came from; whether it was the animals around us which might have transmitted the virus to humans; or whether it could spread from people to animals. All these regard tracing animal origins. We conducted nationwide viral tests over wild animals, poultry and livestock in 31 provinces, municipals and autonomous regions soon after the epidemic broke out. The tests covered dozens of species, such as pigs, cattle, sheep, chickens, ducks, geese, pigeons, turkeys, wild rabbits and wild boars. We tested more than 80,000 samples over a short period of time, and no COVID-19 antibodies or positive nucleic acid test results were detected. After that, we further conducted COVID-19 challenge trials on animals around us in the lab, and classified them into groups according to their susceptibility to COVID-19 infection, such as highly susceptible, not susceptible or resistant. By doing so, we further understood the situation, and it was also helpful for us to determine the priorities in terms of tracing animal origins. 

Second, in order to define the origin of the virus, bat was one of the animals we focused on. In the wake of the COVID-19 outbreak, we organized several groups to conduct research on the coronavirus carried by bats to identify its similarity with SARS-CoV-2. As several experts said just now, bat coronavirus RaTG13 has a 96.2% genome homology with SARS-CoV-2. Yet further research found it shows only 89.3% amino acid homology in the receptor-binding domain (RBD), meaning that its infectiousness is to some extent very low. Our further experiments showed that the infectiousness of RaTG13 differs greatly from SARS-CoV-2 when infecting different species. As such, experts have concluded based on a comprehensive study and judgement that RaTG13 has a remote evolutionary relationship with SARS-CoV-2.

Apart from bats, researchers also found other animals carry SARS-CoV-2-related coronavirus. For instance, scientists detected multiple strains of coronavirus in smuggled pangolins seized by customs. Among them, the highest genome homology with SARS-CoV-2 is 92.4%, lower than RaTG13, but one strain of the pangolin coronavirus shows 96.9% amino acid homology with SARS-CoV-2, higher than RaTG13's 89.3%. Through those studies, scientists concluded that pangolin coronavirus may have played a role in the evolution of SARS-CoV-2. 

Our research groups have done lots of other work such as molecular tracing. The origin-tracing work has made solid progress due to joint efforts with overseas scientists. By July 19, Chinese research groups and their overseas counterparts from the U.S., the U.K. and other countries had jointly published 225 articles related to tracing origins of the COVID-19 virus, and Chinese research groups had published 352 articles. That shows our origin-tracing work is highly international. During this period, Chinese and U.S. medical scientists held six dialogues via video link on prevention and control of COVID-19. On top of that, we have beefed up efforts on data and information sharing regarding scientific research, and established the 2019 Novel Coronavirus Resource database for global sharing under the China National Center for Bioinformation. By July 19, the database had garnered and shared more than 2.53 million collections of worldwide SARS-CoV-2 genome sequences, and offered access to almost 300,000 users from 177 countries and regions. 

More than one year of effort has made us realize that tracing origins of the virus is a scientific question full of uncertainties, so there is a long and arduous way to go. At the same time, we should realize that origin-tracing work is very important, and we should give a good answer to the serious and fundamental question about where the virus comes from. With responsibilities falling on us and difficulties lying ahead, we must firm up our confidence and adopt a science-based approach. Only by basing the origin-tracing work on scientific attitudes, scientific methods and scientific facts can we uncover the truth. Thank you. 

CGTN:

Recently it was reported that Chinese researchers last year deleted some genome sequences of cases from the early stage of the outbreak, which had been uploaded on to the database maintained by the U.S. National Center for Biotechnology Information (NCBI). It was speculated that China has concealed some information about the origin of the virus. How would you respond to this issue? Thank you.  

Zeng Yixin: 

After it was reported, we immediately conducted an investigation. The report mentions the deletion of SARS-CoV-2 sequences, which is relevant to a paper 'Nanopore target sequencing for accurate and comprehensive detection of SARS-CoV-2 and other respiratory viruses' published by researchers from Wuhan University in the international scientific journal 'Small.' According to the title, we can tell the paper was about a sequencing method. When they made a submission last March, the sequencing results were needed. That means when a sequencing method is created, the results are needed to assure its accuracy and reliability. Therefore, the researchers uploaded their concrete sequencing results of the virus onto the database of the National Center for Biotechnology Information (NCBI), a branch of the National Institute of Health (NIH). 

On June 9, 2020, the journal sent back the researchers the proofread paper where they found the information about where they had uploaded the sequencing results of samples from confirmed cases had been deleted. The researchers thought that since the information about the sequencing was deleted, it was unnecessary to keep those sequencing results on the NCBI.

Therefore, they sent an email to the NIH to request the removal of the data on June 16, 2020. The NIH followed the protocol and deleted the data without notice. When the researchers requested the removal, the data was automatically removed without notifying the researchers. The researchers were not informed, and hence they ignored this. So it is clear that the researchers had absolutely no need, or intention, to hide or conceal any information. Recently, they uploaded all 244 pieces of sequencing data of 61 COVID-19 samples onto the GSA database built by the China National Center for Bioinformation, which is open to global researchers.

As far as we know, the earliest sampling in the case was done on Jan. 30, 2020, some time after the initial outbreak, so the sequences cannot count as early ones and thus have limited value or information regarding the study of SARS-CoV-2 origins. However, a U.S. researcher, Jesse Bloom, with the Fred Hutchinson Cancer Research Center, fabricated the conspiracy theory that this was an attempted cover-up, without any confirmation from the Chinese researchers and with absolutely no understanding the background context of the matter. His actions deviated from science and violated scientific ethics, having not only smeared the Chinese researchers, but also causing a negative effect on relevant international public opinion. After the publication, his paper has been criticized by experts from various countries for its violation of scientific ethics. During this epidemic, the public is deeply concerned about and highly sensitive to the words and deeds of professionals, especially scientists. Therefore, researchers should understand they have their own responsibility to society. Especially during the pandemic, people are highly sensitive to opinions about the disease, so we professionals should not speculate in a deceptive and unrealistic manner. This could cause bad influence on the whole society's control and prevention of the pandemic. We should instead make contributions and correctly guide public opinion. Here, I want to remind every expert to learn the lesson that experts are more than just experts; they have a responsibility to the society. This deserves recognition. Thanks. 

Global Times:

At present, the start point of the global spread of the coronavirus continues to go further back. Some have proposed studies to be conducted in multiple countries and regions around the globe within the framework of the WHO. The United States, in particular, should also be subject to investigation. What are your opinions of that? Thank you.

Liang Wannian:

I'd like to take this question first before having the other experts share their opinions. Results of ongoing studies into the origin tracing by scientists in various countries showed that this coronavirus emerged in multiple places in the world before the time we knew about its existence. Here are some examples.

Samples from November 2019: A SARS-CoV-2 in situ hybridization reaction detected at multiple parts on skin biopsy of an Italian woman.

Samples from November 27, 2019: Coronavirus genetic materials detected in wastewater collected from a Brazilian city.

Samples from December 13, 2019-January 17, 2020: Check-ups of donated blood samples for archive in nine U.S. states found that 106 blood samples tested positive for coronavirus antibodies.

The early gene sequences collected from Iran, Brazil and Italy on December 24, 2019 uploaded to national databases.

The mid of December 2019: The prevalence of neutralizing antibodies reportedly increased in France.

Sample from December 27, 2019: A throat swab of a French patient with hemoptysis tested positive for coronavirus RNA in RT-PCR detection.

Samples from January 2020: Waste water samples collected in Barcelona of Spain tested positive for coronavirus.

Samples from January 2, 2020-March 18, 2021: Nine of 24,079 blood samples from 50 U.S. states tested positive for coronavirus antibodies.

These examples come from recent studies of scientists from around the world, which show that Wuhan might not have been the first place of SARS-CoV-2 inception. The spread of the virus could be complex, with a cyclical infection chain from a human or an animal host to an object, and then to humans and later back to objects. Just now, Mr. Wang Chen talked about the importance of the studies into cold chains. In fact, the studies into the entire transmission pattern of the virus, including its origin tracing have offered us a new vision and a new issue, as well as a new scientific proposition to solve. As for the modes of transmission and circulation, how the virus jumped from animals to people, including from animals to objects and then to people? what is the logical relationship between them? What are their roles and interface points? All shed lights on new research ideas. 

Next, studies into early cases, biological samples, genetic sequences, natural hosts, intermediate hosts and cold chains should be conducted with joint efforts in multiple countries and regions around the globe. To explore trans-species infections and viruses' global spread, research work ought to be done on the diversity of viruses and their evolution in animal hosts, on the interaction among animals, environment and humans, and on the factors affecting virus infections among people. This is what we need to do in the future.

Viruses are a common enemy of mankind; and in both prevention and treatment, we must unite. The critical, complicated and difficult scientific mission of tracing origins of viruses requires cooperation of scientists across the world, of governments and of all people. Thank you.

Wang Chen:

I want to share a view that the findings just mentioned by Professor Liang have also been recognized by the international scientific community, which suggest the possibility of multiple sources. The origin-tracing work is so complex with diversity. If we really want to find the origins, we should not be restricted in our vision but rather broaden it. It is an important issue of direction for the world to make systemic studies of origin tracing in multiple regions and multiple orientations.

Shou Xiaoli:

Thank you, to our speakers and journalists from the media. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Zhang Liying, Wang Qian, Wang Yiming, Yang Xi, He Shan, Guo Yiming, Zhang Junmian, Li Xiao, Xu Xiaoxuan, Li Huiru, Liu Sitong, Guo Xiaohong, Zhang Rui, Wang Wei, Huang Shan, Zhu Bochen, Cui Can, Liu Qiang, Gong Yingchun, Yuan Fang, Wang Yanfang, Wang Zhiyong, Duan Yaying, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Cong Liang, deputy head of the National Development and Reform Commission

Sun Yuning, vice minister of the General Administration of Customs of China

Xu Jing, director of the Department of Strategy and Planning of the Ministry of Science and Technology

Wang Xin, director of the Research Bureau of the People's Bank of China

Chen Yin, member of the Standing Committee of the Communist Party of China (CPC) Shanghai Municipal Committee, and executive vice mayor of Shanghai

Weng Zuliang, member of the Standing Committee of the CPC Shanghai Municipal Committee, and secretary of the CPC Pudong New Area Committee

Chairperson:

Chen Wenjun, head of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 20, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Recently, the Communist Party of China (CPC) Central Committee and the State Council jointly issued a guideline to support the high-level reform and opening-up of the Pudong New Area in Shanghai and build Pudong into a pioneer area for socialist modernization. This is a major decision made by the CPC Central Committee with Comrade Xi Jinping at its core. To help you have a more in-depth and accurate understanding of this document, today we have invited Mr. Cong Liang, deputy head of the National Development and Reform Commission (NDRC); Mr. Sun Yuning, vice minister of the General Administration of Customs of China (GACC); Mr. Xu Jing, director of the Department of Strategy and Planning of the Ministry of Science and Technology; Mr. Wang Xin, director of the Research Bureau of the People's Bank of China (PBC); Mr. Chen Yin, member of the Standing Committee of the CPC Shanghai Municipal Committee, and executive vice mayor of Shanghai; and Mr. Weng Zuliang, member of the Standing Committee of the CPC Shanghai Municipal Committee, and secretary of the CPC Pudong New Area Committee. They will introduce the relevant information regarding the guideline and take your questions. Next, I will give the floor to Mr. Cong.

Cong Liang:

Ladies and gentlemen, friends from the media, good morning. Shanghai plays a very important role in the overall work of the Party and the country. The development and opening-up of Pudong opened a new chapter for deepening China's reform and opening-up. On Nov. 12, 2020, General Secretary Xi Jinping called for new missions for Pudong in China's reform and opening-up at a grand gathering to celebrate the 30th anniversary of the development and opening-up of Pudong. He said that efforts should go into making Pudong a pioneer of reform and opening-up at a higher level, a vanguard in fully building a modern socialist country, and an example that highlights the Chinese people's confidence in the path, theory, system, and culture of socialism with Chinese characteristics. This is a major decision made by the CPC Central Committee based on a comprehensive analysis of the specific features of our times, realistic requirements, and the dynamics of the domestic and international environments. Recently, the CPC Central Committee and the State Council jointly issued a guideline to support the high-level reform and opening-up of Pudong and build Pudong into a pioneer area for socialist modernization. Next, I will give a brief introduction regarding the guideline.

The guideline fully implements the guiding principles of General Secretary Xi Jinping's speech and draws up an ambitious blueprint for building Pudong into a pioneer area for socialist modernization. In general, the guideline highlights the following three points. First, supporting Pudong in acting as a pioneer and a vanguard on a new journey toward socialist modernization in order to implement the national rejuvenation strategy within the wider context of the once-in-a-century changes taking place in the world. Second, supporting Pudong in acting as a central node of the domestic circulation and a strategic link of China's new development paradigm of "dual circulation," and helping it play a better role in leading and stimulating the integrated development of the Yangtze River Delta in order to foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. Third, to further promote reform and opening-up in the new era, the guideline supports Pudong in taking up the heaviest burdens and tackling the hardest tasks, setting an example of high-level reform and opening-up, as well as demonstrating China's commitment and confidence in deepening reform and opening wider to the world.

Based on these three points, the guideline gives five strategic positions to Pudong, sets two-stage development goals, and introduces 21 major tasks and measures in seven aspects.

The five strategic positions include becoming a pioneer in promoting higher-level reform and opening-up, a benchmark for innovation-driven development, a leader in the allocation of global resources, a pacesetter of boosting domestic demand, and a model of modern urban governance.

The two-stage development goals are as follows. By 2035, Pudong will see its modernized economy comprehensively established, modern urban districts built, and modernized governance fully realized. Its urban development level and international competitiveness will be at the forefront globally. By 2050, Pudong is expected to become an important urban area which will be highly attractive, creative, competitive and influential globally, a global model of urban governance and a "shining pearl" of a great modern socialist country.

There are seven measures which are as follows. First, we will make every effort to strengthen the engine of innovation. We will speed up the research and development of key technologies, build world-class innovative industrial clusters, deepen the systemic reform of scientific and technological innovation, and lend impetus to indigenous innovation-driven development in order to target global frontiers of science and technology, serve the main economic battlefield, strive to fulfill the significant needs of the country and benefit people's lives and health. Second, we will improve the reform of systems integration. By introducing a range of measures aimed at basic and leading reform efforts, we will innovate government service management, strengthen the basic position of competition policy, improve the integrated operation mechanism of factor markets, and activate new momentum for high-quality development. Third, we will promote high-level institutional opening-up. We will advance the pilot trials of the Shanghai Pilot Free Trade Zone and its Lingang Special Area, build Shanghai into an international shipping hub, establish the "express" system of bringing in global high-end talent, and create an integrated special economic function zone in Pudong, so as to consolidate our internationally cooperative and competitive edge. Fourth, we will enhance our allocation ability of resources on a global scale. When promoting the development of the Belt and Road Initiative through joint efforts, we will further open up the financial sector, set up primary investment and financing platforms at home and abroad, improve financial infrastructure and systems, and be active in the allocation of resources such as capital, information, technology, and talent around the globe, helping foster a new pattern of development. Fifth, we will boost urban governance modernization. We will initiate a new stage in urban construction for the people through innovating and improving the urban governance system. This will create an urban landscape that is suitable for the times. It will feature a harmonious and beautiful environment, and enhance the life quality of our citizens. Sixth, we will make use of the advantages that come with our great domestic market to improve the quality and scale of its demands. We will cultivate and popularize Shanghai's brands of services, manufacturing, shopping, culture and tourism, in order to not only meet new demands, but also generate new demands with high-quality supply. Seventh, we will balance development and security imperatives. With the focus on finance, public health, and production safety, we will improve the risk control and management system to adapt to deepening reform and opening-up and forestall systemic risks.

The most important work now is how to achieve the goals in this completed blueprint. The National Development and Reform Commission will fully grasp and put into practice the guiding principles of the speech by General Secretary Xi Jinping at the ceremony marking the centenary of the founding of the Communist Party of China (CPC), and make great efforts to coordinate related departments and push forward the implementation of the various reform measures in the guidelines, in accordance with the CPC Central Committee and the State Council's policy decisions and plans and under the leadership of the leading group for promoting the integrated development of the Yangtze River Delta. Thank you.

Chen Wenjun:

Thank you, Mr. Cong. Now, let's give the floor to Mr. Chen.

Chen Yin:

Ladies and gentlemen, friends from the media, good day to you all. Thank you for your attention to Shanghai's development, especially for the support and attention to the work of high-level reform and opening-up in the Pudong New Area of Shanghai. The CPC Central Committee gave the historical mission of building a pioneer area for socialist modernization to Pudong, Shanghai, which is a landmark during the city's development, giving full recognition to the successful practice of Pudong's development and opening-up in the past three decades and also showing the expectations for Shanghai achieving new miracles in the new era. Yesterday, at the meeting organized by the CPC Shanghai Municipal Committee and the Shanghai government, Li Qiang, Shanghai's Party chief, said that principles of the speeches by General Secretary Xi Jinping at the ceremony marking the CPC centenary and at the grand gathering to celebrate the 30th anniversary of the development and opening-up of Shanghai's Pudong must be implemented, as well as the guidelines of building a pioneer area for socialist modernization. The city sends a strong message of high-level reform and opening-up, and will make great efforts to achieve new miracles and build a new image. On the new journey, we will always be at the forefront of reform and development and be a great pioneer in accordance with the requirements of the CPC Central Committee.  

First, a holistic strategic design is needed. We will make a holistic strategic design in accordance with requirements by General Secretary Xi Jinping on Shanghai's work during the process of promoting high-level reform and opening-up of Pudong. The priority is to build economic zones with special functions in Pudong and promote the construction of a special customs supervision zone. Pudong will be built as an international financial, trade and shipping center, and a core area for international scientific and technological innovation. Moreover, Pudong will be supported in constructing an international consumption center and a model of modern urban governance that people enjoy living and working in. Meanwhile, we will improve the system of legal protections so that Pudong will be supported to find solutions through trials and breakthroughs when facing up to new challenges.

Second, we will strengthen the pioneering role of landmark projects, so as to make more breakthroughs as soon as possible and bring Pudong area and Shanghai to new heights of development. Firstly, we will promote the innovative development of the Chinese capital market through building of the trading platform for international financial assets. Several major pieces of financial infrastructure will be constructed including a national warehouse receipt registration center for bulk commodities traded on the exchange and a national large-scale warehouse for precious metals traded on the exchange. Secondly, we will build new highlands of independent innovation and further highlight the functions and role of the Zhangjiang Comprehensive National Scientific Center. National laboratories, world-class major science and technology clusters, an international data port and a data exchange will all be built. Thirdly, we will focus on key functional blocks, major transportation hubs and high-end leading industries, in order to create new highlights and hotspots. Lastly, we will promote major projects for the integrated development of the Yangtze River Delta, such as a global shipping hub, a public health emergency management system and a capital market service base.

Third, we will work to make breakthroughs in system integration. In order to achieve the best level and meet the highest international standards, we will explore and reform system integration and collaboration efficiency, and coordinate finance, shipping, trade and technological innovation. Key blocks, such as Lujiazui Financial Zone, Zhangjiang Scientific Center and Lingang New Area, will be interconnected. We will actively allocate global capital, information, technology, talent and other resources, and expand the fast track of two-way connectivity between basic research, applied research and industrialization, so as to boost the engine of innovation.

Fourth, we will explore ways to achieve independent reform. According to the guideline, the central government has asked us to carry out both a comprehensive pilot reform and an institutional openness pilot. Regarding comprehensive reform, we will further coordinate economic, social and urban governance, formulate pilot schemes, introduce new special measures to further relax market access, and promote the pilot reform of "one permit for one industry" system. A pilot system for listing registration and confirmation will be explored. We will work to see our people are able to access more government services via a single website, and realize the "one network and co-governance" of urban management. In the respect of institutional opening-up, we will intensify risk and stress tests, and expand openness from the factor level to the system level. The Shanghai Pilot Free Trade Zone and Lingang New Zone will be the pioneers, and the Yangshan Special Comprehensive Bonded Zone will witness new breakthroughs in construction. In keeping with the goal of building Pudong into a pioneer area for socialist modernization and in line with the central government's general layout for Shanghai's development, we will further delegate power and energize development in Pudong, and transform institutional policies into powerful driving forces. We will strengthen coordination between reform, innovation and development. The high-level reform and opening-up in Pudong are expected to play a bigger role in leading and stimulating the integrated development of the Yangtze River Delta, the development of the Yangtze River Economic Belt, as well as China's overall economic development. We will spare no efforts to fulfill all the tasks assigned by the central government. Thank you.

Chen Wenjun:

Thank you, Mr. Chen. The floor is now open for questions. Please identify your news outlets before asking questions.

CCTV:

The guideline listed measures to build Pudong into a pioneer area for socialist modernization. In what areas will Pudong play a leading role? Thank you.

Cong Liang:

Thanks for your question. Your question really touches on a key aspect of the guideline. During the 14th Five-Year Plan period (2021-2025), China steps into a new development stage of fully building a modern socialist country. In face of a complex and fast-changing situation, there are no precedents or prior experiences to follow. Therefore, advanced regions are needed to spearhead and become pioneers. The CPC Central Committee supports Pudong to become a pioneer for socialist modernization. In my opinion, its leading role will be reflected in the following four aspects:

First, it will lead in fostering the impetus for high-quality development. As the largest economic city in the country, Shanghai is positioned as international economic, financial, trade, shipping and technological innovation centers. Pudong will carry out the important function of helping Shanghai build itself into the "five centers". In order to fulfill the goal of becoming a pioneer area for socialist modernization, Pudong has to completely, accurately and comprehensively implement China's new development paradigm, and explore a creative path to transform philosophy into practice. In this way, Pudong will be able to foster a powerful momentum for regional development, and promote Shanghai to play a better role in leading the integrated development of the Yangtze River Delta, so as to improve the overall efficiency of China's economy.

Second, it is reflected in promoting the realization of a high level of self-reliance and self-strengthening and a smooth economic cycle. Core technologies controlled by others are our biggest hidden risk. The key core technologies cannot be requested, bought or begged, so we can only depend on being self-reliant. Pudong has unique advantages in planning and initiating scientific and technological innovations. It should play the role of being the "vanguard force" or "national team" for key core technologies, and work as a trailblazer and leader in technological innovation, aiming at scaling the heights of the forefront fields of brain science, quantum technology and other areas. This is especially so in terms of solving the problem of cutthroat competition in key areas such as high-end integrated circuit components and basic software and hardware. On the basis of eliminating these bottlenecks and clearing circulation blockages, Pudong will further play its role as a key node in the smooth economic circulation, provide an important channel for better use of domestic and international markets and resources, and create an important hub for the global industrial chain, supply chain and value chain.

Third, it is reflected in the provision of high-level institutional supply. China's reform has entered a "deep-water zone," and some deep-level systematic and mechanism barriers have not been eliminated. Pudong must keep a close eye on important areas and key links, continue to deepen reforms, explore and develop good experiences and practices, and consolidate them in the form of laws and regulations in a timely manner, to provide greater high-level institutional innovation. For example, in terms of establishing a new open economic system, the local government should study open policies and institutional arrangements with strong international market competitiveness, and support Pudong to achieve breakthroughs in the fields of human resources, technology, capital and cross-border data circulation. In terms of finance, it should support Pudong in developing offshore RMB transactions, cross-border trade settlement and overseas financing services, and explore and improve related institutional arrangements. In terms of shipping, the local government should support Pudong in strengthening close connections among river, sea, land, air and rail transportation, explore integrated management systems and mechanisms, and implement a pilot ship registration management system that is in line with international practices.

Fourth, it is reflected in better practicing the people-centered development philosophy. Pudong should take the lead in implementing the concept of "people's city built by the people and for the people"; construct a systematic, complete, scientific, standardized and effective urban governance system; build a harmonious and beautiful ecological environment; develop the city into a beautiful home where people and nature coexist harmoniously; and explore a development path for the megacity with Chinese characteristics which embodies the characteristics of the era and highlights the advantages of China's socialist system. It is necessary to continuously improve the level of balance and quality of public services, leave the best resources for the people, and continuously improve the people's senses of gain, happiness and security. Thank you.

CRNTT:

General Secretary Xi Jinping has called on Pudong to strive to become the central node of the domestic circulation and the strategic link between the international and domestic dual circulations. What considerations has Shanghai made to support Pudong in serving the country's establishment of a new development pattern? Thank you.

Chen Yin:

Thank you for your question. The important speech made by General Secretary Xi Jinping at the grand gathering celebrating the 30th anniversary of the development and opening-up of Pudong can be said to be a plan for Pudong's high-level reform and opening-up, and the instructions on what banner should be upheld and in which direction it should be oriented. The CPC Central Committee's recent guideline further clarified the way forward and strategic priorities. Shanghai will thoroughly implement the important instructions of General Secretary Xi Jinping and the requirements of the CPC Central Committee's guideline, and support Pudong to accelerate building itself as a central node and then into a strategic link, to accumulate new experiences, explore new paths, and achieve new breakthroughs for serving the country in building a new development pattern.

First, we will focus on building the "two specials" (special economic function zone and special customs supervision area), and explore a new system to serve the building of the new development pattern. We will promote the creation of a special economic function zone across the whole district of Pudong, and make new breakthroughs in the reform of the market-based allocation of factors, the reform of the commercial system, and the deepening of the reform of "single industrywide permits." We will also make good use of the open carrier role of the Yangshan Special Comprehensive Bonded Zone to promote institutional innovations for trade and investment facilitation and liberalization. In addition, we will give full play to the radiation and leading role of the Yangtze River Delta, deepen cross-regional cooperation in key areas for the need of the country, for the relevance of the market and for the anticipation of the market, and explore more effective and win-win institutional supply.

Second, we will build "four core zones," which refers to the core zones of Shanghai as an international financial, trade, shipping and tech-innovation center, and enhance the new momentum to serve the building of the new development pattern. We will strengthen independent innovation capabilities and build a number of national innovation bases, functional industries and service innovation platforms in key areas such as integrated circuits, biomedicine, artificial intelligence and aerospace. We will also deepen financial opening-up and innovation, develop RMB offshore transactions, cross-border trade settlement and overseas financing services, and increase the two-way opening of the market. In addition, we will upgrade the energy level of trade services, and strengthen the alignment with high-standard international rules in the fields of investment access, service trade and digital trade. We will also accelerate the joint efforts of the Yangtze River Delta to build a global shipping hub, expand the shipping network with countries and regions along the Belt and Road, and build a core hub for the international shipping system.

Third, we will build "one center," namely an international consumption center, to add momentum for fostering a new pattern of development. We will support Pudong to lead in domestic consumption upgrades and prioritize the "debut of new products" economy and brand economy. We will build world-class commercial areas in Lujiazui, the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone, and the Qiantan area of the World Expo Park as consumption clusters to guide and create new consumption demands with high-quality supply.

Fourth, we will build "one standard model," namely a standard model for urban governance toward better livability and working conditions. We will develop an urban governance system that is comprehensive, rational, rule-based, and effective. First, we will innovate the urban governance system, accelerate its digital transformation, and further promote the "one unified management network" to synergize economic, social and urban governance. Second, we will promote organic urban renewal through coordinated efforts, implement the strictest ecological environmental protection system and improve the ability to respond to major emergencies. Third, we will improve the pattern for developing people's well-being, preserve the city's distinctive culture, and create a standard model for urban governance toward better livability and working conditions in a bid to build a people's city.

The guideline also included instructions on establishing a legal system to support Pudong to make bold attempts and trials and carry out independent reforms. We will make full and good use of the local legislative rights granted to Shanghai by the central government, establish a working mechanism that is commensurate with the rights to legislate by reference to special economic zones, and introduce a list of creative legislation and a list of adapted legislation in certain areas to provide a solid legal guarantee for fostering a new pattern of development. Thank you.

ThePaper.cn:

The guideline uses many beautiful words to describe Pudong's future, including the vision to become a shining pearl of a great modern socialist country by 2050. I would like to ask Mr. Weng, how will Pudong New Area achieve this goal? Could you give us an idea of Pudong's future? Thank you.

Weng Zuliang:

Thank you for your questions. The guideline assigns Pudong the major task of building a leading area for socialist modernization and the grand goal of becoming a shining pearl of a great modern socialist country by 2050, fully embodying the expectations of General Secretary Xi Jinping and the CPC Central Committee for Pudong. Officials and people in Pudong are greatly encouraged and inspired.

On the new journey, Pudong will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly study and implement the principles of General Secretary Xi Jinping's important speech at the grand gathering celebrating the 30th anniversary of Pudong's development and opening-up and his other important speeches and instructions about Shanghai, and unswervingly move forward along the three paths that General Secretary Xi Jinping has outlined for Pudong.

First, we will unswervingly free minds and deepen reform. We will comprehensively free minds in order to guide and promote in-depth reform breakthroughs. When making plans for reform breakthroughs, we will give more consideration to the whole development process of things, the entire chain of industrial development, and the full life cycle of enterprises. We will focus on strategic reforms, pioneering reforms, fundamental reforms, targeted reforms, and improvement-oriented reforms to stimulate market vitality and enhance governance efficiency.

Second, we will unswervingly expand opening-up to the world. We will pursue opening-up at a deeper level, in broader areas, and with greater intensity, and pay greater attention to institutional opening-up. We will give better play to the role of the China (Shanghai) Pilot Free Trade Zone and its Lingang Special Area as "test fields," align ourselves with the highest international standards and levels, and step up stress test.

Third, we will unswervingly break free from conventions and pursue innovation and breakthroughs. We will strive to make major innovations in basic science and technology and major breakthroughs in key and core technologies. We will optimize the ecology for innovation and entrepreneurship, smooth the two-way fast lane linking basic research, applied research, and industrialization and build world-class industrial clusters.

The central government has outlined a beautiful vision for Pudong by 2050. In addition to becoming a shining pearl of a great modern socialist country, Pudding is also expected to become an important urban area with strong global appeal, creativity, competitiveness, and influence, and a global model for urban governance capability and efficiency. In my mind, Pudong in the future will become the best destination for global investment, trade, and entrepreneurship. Goods, technology, talents, data, and capital from all over the world will be efficiently allocated here, and new discoveries, inventions, start-ups, and products will constantly emerge. In the future, Pudong will also become the best example of a "people's city," where everyone has the opportunity to excel in life, and can participate in governance in an orderly manner, enjoy a high-quality life, feel the human touch and have a sense of identity and belonging. The people living in Pudong will feel a sense of gain, happiness, and security. Thank you.

Phoenix TV:

My question is for the General Administration of Customs (GAC). We know that currently, there are five special customs regulation zones in Pudong. After the release of the guideline, what measures will the GAC take to support the development of the special customs regulation zones in Pudong? Thank you. 

Sun Yuning:

Thank you for your questions. Since the 1990s, China has successively approved the establishment of five special customs regulation zones in the Pudong New Area, including Waigaoqiao bonded area, Waigaoqiao Port comprehensive bonded area and Yangshan special comprehensive bonded area. These special regions have played an important role in attracting foreign investment and advanced technologies, promoting innovative development and fostering new forms of foreign trade, and carrying out institutional innovation and stress tests. I have a set of data here. In 2020, the total imports and exports in the five special customs regulation zones reached 1.1 trillion yuan, accounting for 53% of the total in Pudong and 32% of the total in Shanghai, respectively, over the same period. From this data, we can see that these special regulation areas are of great significance for the high-level reform and opening-up of the Pudong New Area. The promulgation and implementation of the guideline have brought new historical opportunities and also put forward higher requirements for the development of the special customs regulation zones in the Pudong New Area. Next, the GAC will introduce specific measures to implement the guideline and increase support in the following three aspects:  

First, we will accelerate the institutional opening of the special customs regulation zones, support institutional innovation in Yangshan special comprehensive bonded area, and improve supporting measures and information systems. We will promote a series of innovative measures, including the direct release of goods at customs, with only enterprises outside the bonded area being required to make declarations, and completely canceling customs account books to unleash the dividends of reform. We will advance the policies of Yangshan special comprehensive bonded area in the other qualified special customs regulation zones in Pudong, facilitate the development of strategic emerging industries, and let qualified enterprises enjoy convenient customs clearance measures adopted in Yangshan special comprehensive bonded area.  

Second, we will support the development of advanced manufacturing sector in the special customs regulation zones. We will enhance policy assistance in fields like integrated circuits, biological medicine and civil aviation, take key technologies as a breakthrough point, support the innovative development of advanced manufacturing sector in Pudong, and build world-class industrial clusters.  

Third, we will realize the joint development of the special customs regulation zones. We will assist local governments in making full use of the policies in the special customs regulation zones, better carry out industrial planning and investment attracting and selecting, and encourage each zone to complement each other's advantages and seek differential and complementary development. We will support these special areas to perform the bonded display and trading function, and give play to the driving and spillover effects of the China International Import Expo (CIIE). We will assist Shanghai Futures Exchange in exploring the establishment of a national commodity warehouse receipt registration center, and in carrying out the bonded futures delivery of crude oil and fuel oil, and facilitate the cross-border flow and efficient allocation of all kinds of factors. I believe that the special customs regulation zones will play a bigger role in and make greater contributions to the high-level reform and opening-up of the Pudong New Area. Thank you.  

China News Service:  

The guideline put forward that the Pudong New Area will deepen the innovation of systems and mechanisms for science and technology, and build a new highland for independent innovation. What measures will the Ministry of Science and Technology (MST) take to promote the implementation of the guideline? Thank you.  

Xu Jing:  

Thank you for your question. I'll answer it. The MST has fully implemented the decisions and arrangements of the CPC Central Committee and the State Council, and vigorously supported the Pudong New Area in becoming a model of the times for independent innovation and development to enhance its independent innovation capacity, increase its global influence. The MST will also speed up efforts to develop the Pudong New Area into a core area of the international science and technology innovation center of Shanghai. In general, we have measures in the following four aspects:  

First, we will support Zhangjiang National Innovative Demonstration Zone in playing its leading role and strengthen regional innovation capacity. We will focus on such fields as integrated circuits, life science, artificial intelligence, accelerate the establishment and operation of national laboratories, lead to foster national strategic sci-tech strength, and enhance the development of pilot incubation centers for applying scientific and technological achievements. We will work hard to develop national technological innovation hubs in the Yangtze Delta , build a number of engineering technology research centers and national clinical medicine research centers, and strengthen the development of Zhangjiang Comprehensive National Science Center based on major national sci-tech infrastructure and sci-tech innovation bases.  

Second, we will give full play to the leading role of Pudong New Area in the innovation-driven development of Shanghai and the Yangtze River Delta. The Ministry of Science and Technology will support the Pudong New Area to head the building of the concerted mechanism for technological breakthroughss and innovators in the Yangtze River Delta to jointly achieve breakthroughs in core technologies in several strategic areas and to build and improve the mechanism for the science and technology innovation community in the Yangtze River Delta. We will step up efforts to have a clear division of work, make breakthroughs in key technologies, supply high-end products, and establish Chinese standards. Efforts will be made to support Pudong New Area to play a leading role in building a new generation of the national AI innovative development pilot zone, enhance its capacity to boost original AI innovation, and conduct new AI applications and experiments to energize the industries in the field of AI in a bid to reach a "highland" which features international influence in regard to AI. And we will keep supporting Pudong to host the World Artificial Intelligence Conference. 

Third, we will support the building of a high-level platform for international scientific and technological exchange. In the field of brain science, we will launch international big science research plans and take the lead in developing an effective model for organizing international big science research plans and projects. We will continue to support the Shanghai Pujiang Innovation Forum and World Laureates Forum.

Fourth, we will deepen sci-tech institutional reforms and support Pudong New Area to "move first and experiment first." We will support the national research and development institutions in Pudong to carry out Shanghai's policies for improving sci-tech systems and mechanisms. We will support new-type research and development institutions in Pudong New Area to conduct work under the management framework based on regulations, comprehensive budget management, and performance evaluation. We will support universities and scientific research institutions to establish professional technology transfer institutions. Pilot work will be carried out to confer the ownership or rights of long-term use of job-related scientific and technological achievements on scientific research, and grant Pudong greater autonomy in the management of foreign sci-tech professionals working in Shanghai.

Next, the Ministry of Science and Technology will implement the tasks stipulated in the guidelines and ramp up efforts to build Pudong New Area into an exemplary success in an era marked by independent innovation and development. Thanks for your questions.

Red Star News:

The guidelines stipulate that efforts on the research and development of core technologies should be stepped up in Pudong New Area, and a batch of national science and technology innovation bases will be built there accordingly. What are the major advantages of Pudong compared to other regions across the country? Thanks. 

Weng Zuliang: 

Thanks for your question. Pudong is the core area of the Shanghai international science and technology innovation center. With regards to the building of Zhangjiang Science City, we constantly improved the magnet effect of Zhangjiang Comprehensive National Science Center and its role in demonstrating the achievements of cutting-edge technology. Now Pudong is home to 10 big scientific research facilities (some are under construction), 249 foreign-invested research and development centers, and 717 research and development institutions affiliated with companies. The guidelines stipulate that Pudong should strengthen basic research and applied basic research, better equip itself to achieve breakthroughs in core technologies, and build a number of national sci-tech innovation bases. This demonstrates the country's support for Pudong and trust in Pudong as a whole. We will spare no effort to guarantee success in these areas and put the bases to use as soon as possible.  

To build Pudong into a highland for independent innovation, we will gather strategic sci-tech driving forces, focus on optimizing the atmosphere for innovation and entrepreneurship, and promote the integration of basic research, applied research, and industrial development. The focus will be on improving four systems to catalyze innovation and entrepreneurship, which we believe also draws on Pudong's advantages in the following areas.

First, it's a whole-of-the-life-cycle system for innovation incubation. Pudong has established an incubation chain encompassing the seedbed, incubator, and accelerator. It houses more than 170 accredited incubators. Leading companies have set up the Open Innovation Center to better leverage their advantages of resources within the company and of global innovation networks to foster small and medium-sized sci-tech companies with joint efforts and achieve collaborative innovation among companies.

Second, it has a public sci-tech service system that covers all links. Revolving around the innovation chain, we made plans to develop the area's service chain. Pudong has already built over 200 platforms for sci-tech public services, involving services for research, measurement, testing, and certification of scientific and technological achievements, reducing the cost of innovation.

Third, it has a comprehensive intellectual property rights (IPR) protection system. The first Chinese mainland intellectual property bureau, dealing with all legal issues concerning patents, brands, copyright, and geographical indication opened in Pudong New Area. Pudong is also home to the first IP court in the free trade zone, which unifies the adjudication of civil cases, administrative cases, and criminal cases with regard to IPR. Platforms such as the China (Pudong) IPR Protection Center and Copyright Service Center of the Shanghai Pilot Free Trade Zone were set up to provide companies with quick examination, proper determination, and correct protection. Next, in accordance with the guidelines issued by the CPC Central Committee and the State Council, we will build a high-level IPR protection system and implement a stricter system on punitive damages involving IPR infringement cases.

Fourth, it has a financing and investment system that covers all sectors regarding sci-tech development. By setting up a fund of funds for sci-tech innovation, granting credit enhancement funds to small and micro-sized companies and piloting the program for securitization of IPR, Pudong has taken multiple approaches to address the difficulties faced by startups in accessing financing. The Yangtze River Delta Capital Service Base was also established in Pudong New Area, which helps startups go listed on the START market by providing professional training and services. We have taken solid steps to improve systems and measures, to help Pudong grow into a magnet for sci-tech innovation. Thanks. 

Beijing Youth Daily:

"Born for and thriving on China's reform and opening-up" has always been Pudong's motto. In June 2005, the State Council designated Pudong as a pilot area in its national comprehensive reform strategy. In September 2013, the China (Shanghai) Pilot Free Trade Zone (FTZ), the country's first FTZ, was officially unveiled in Pudong. In the process of building Pudong into a pioneer area for socialist modernization, what new standards and requirements have been selected for the reform and opening-up? Thank you.

Cong Liang:

Thank you for your question. Reform and opening-up is a significant feature of contemporary China. Over more than 30 years, Pudong has been at?the forefront?of China's reform and opening-up, creating many "national firsts": the first finance and trade zone, first bonded area, first pilot free trade zone, new Linggang area and so on. The development of Pudong has provided the most vivid portrayal of China's reform and opening-up and the course of socialist modernization. As we have entered the new stage of development, reform and opening-up stands at a new historical juncture with more arduous tasks and more severe challenges. It requires us to be more courageous and take more measures to remove barriers on the path to development, in a bid to strengthen the momentum and vigor for development. The high-level reform and opening-up of Pudong New Area supported by the CPC Central Committee requires Pudong to remain a pioneer in China's new reform drive, be sensitive to changes, respond to them with well-judged actions, be ready to adjust the approach when necessary, so as to enrich China's reform and opening-up in practice and further deepen reform and expand opening-up on a higher level. 

Regarding the aspect of reform, we will focus on reinforcing system integration and synergistic efficiency. Pudong will take the lead and provide experience for the rest of the country. We will design the reform measures based on the overall processes of the development of things, the whole chains of industrial development and the lifecycle of the development of enterprises, enhance consistency among multiple reform measures, and amplify the comprehensive effects of reform.

Regarding the aspect of opening-up, we will focus on making new ground in pursuing opening-up on all fronts, employ the highest standards, and expand openness from the factor level to the system level of rules, regulations, managements and standards, so as to provide high-level systems, high-quality products and high-efficiency funds, and take a lead in establishing a new system for an open economy that is compatible with international rules.

In a bid to achieve these goals, General Secretary Xi Jinping has made clear requirements for the central and state organs to make concrete plans in support of the high-level reform and opening-up in Pudong. Regarding the aspect of deepening reform, the guideline calls for a range of fundamental measures aimed at leading reform efforts. It also urges innovation in the methods of government services, easing of market access, deepening the reform of "one integrated license," and giving Pudong greater power in compiling resources. According to the guideline, we should explore a new management mode for the total area of construction land, in combination with the territorial spatial planning. In terms of the use of energy, we should carry out an energy consumption intensity-oriented system with moderate flexibility in total energy consumption. Regarding high-level opening-up, the guideline says that we should build a special economic function zone covering the whole of Pudong New Area, strengthen stress tests for the open economy, accelerate the construction of special customs supervision zones, upgrade regulatory and monitoring arrangements, and allow qualified enterprises to enjoy the preferential custom policies such as those of Yangshan Special Comprehensive Bonded Area. We should also provide support in the fields of tax arrangements, cross-border services, high-end talent introduction, financial opening-up and so on. At the same time, the guideline requires us to improve the system of legal protections so that Pudong will be supported to find solutions through trials and breakthroughs when facing up to new challenges. At the 29th session of the 13th National People's Congress (NPC) Standing Committee, which concluded on June 10, the committee adopted a decision authorizing Shanghai Municipal People's Congress and its standing committee to formulate regulations concerning the Pudong New Area based on the practical needs for reform and innovation in Pudong. Such regulations must abide by the Constitution, as well as the basic principles of the laws and the administrative regulations.

It should be emphasized that, instead of making Pudong a "land of preferential policies," the government's supportive measures will give Pudong greater say in reform and development and help build it into a powerful "propeller" for high-level reform and development. Thank you.

Yicai:

Shanghai is becoming an open center for RMB asset allocation. What new measures will the PBC take to promote the two-way opening of financial markets and two-way cross-border RMB capital flow? What role will Shanghai play in this process? Thank you.

Wang Xin:

Thank you for your questions. In recent years, China has continuously promoted the opening of its financial sector in a market-oriented, law-based, and internationalized manner. This is reflected in several recent aspects. First, we have been promoting high-level opening up for bond markets, stock markets, foreign exchange markets, commodity futures markets, and financial derivatives markets. Second, we have been lifting restrictions on the proportion of foreign shares held in banks, securities, funds, futures, and personal insurance. Third, we have been easing access restrictions in areas such as corporate credit investigation, rating, and payment.

With the development of the financial market, China's bonds and stocks have been included in many international mainstream indexes such as MSCI, Bloomberg, JPMorgan Chase & Co, and FTSE Russell. An increasing number of foreign investors have a growing willingness to hold more RMB financial assets. We have continuously expanded cross-border investment and financing channels, improved relevant institutional arrangements, and provided convenience for overseas investment to flow into the market, forming a multi-channel and two-way open framework featuring direct market entry and interconnection mechanism. Shanghai is gradually improving its functions as a global center for RMB assets allocation, pricing, and risk management.

As global demands for RMB assets increase steadily, there will be more calls to improve risk management, the legal environment, and talent supply for handling RMB assets. Shanghai will become a hub for RMB asset allocation, risk management, and fintech development, a model city for best-in-class business environment and a preferred destination for financial professionals with enhanced competitiveness as an international financial center.

For the next step, the PBC will continue to support Shanghai's international financial center initiative. It will also support Shanghai in further improving systems of the financial market, products, institutions, and financial infrastructure, and in strengthening its role in global financial resource allocation. Meanwhile, it will support Shanghai to take the lead in the free exchange of RMB. Upholding three principles of conducting business and preventing money laundering, terrorist financing, and tax evasion, we will further facilitate the corporate trade and investment funds to flow in and out, explore the free flow and convertibility of capital in the Lingang New Area of Shanghai Pilot FTZ. In these ways, we will contribute to building Shanghai into an important hub and bridge linking the international and domestic markets under the new development paradigm.

Macao Monthly:

How will Shanghai Pudong New Area attract top global talents in the process of keeping abreast of global science and technology development, meeting major national needs in the economic battlefield, safeguarding people's lives and health, strengthening the transformation of scientific and technological achievements into actual productivity, improving the industrial chain, and building a world-class scientific and technological innovation industrial cluster? Thank you.

Weng Zuliang:

I will answer this question. Thank you for your question. We all know that talents are the primary resource. The total number of talents in Pudong has reached 1.55 million. To complete the major tasks assigned by the central government to build the pioneer area, it is necessary to further gather global talents. Pudong will grow into a pacesetter for attracting talents from around the world.

In recent years, Pudong has established China's first overseas talent bureau and an international talent hub integrating functions for providing talent services and allocating human resources. It has taken the lead in issuing a series of innovative policies to improve the flow of overseas talents and the convenience of work. For example, we took the lead in achieving "services to be accessed via one website" for overseas talents to work in China. We issued China's first permanent resident identity card linked to a pilot free trade zone, the first work permit for foreign students with a bachelor's degree, the first batch of work permits for foreign entrepreneurs, and the first batch of business licenses for technological companies established by high-level foreign talents holding the permanent resident identity card.

In General Secretary Xi Jinping's important speech at the grand gathering to celebrate the 30th anniversary of the development and opening-up of Shanghai's Pudong, he described how Pudong should take the lead in implementing more open policies for facilitating the attraction of talent. Pudong, in accordance with the requirements of the general secretary and with the support of relevant national and municipal departments, continues to strengthen opening-up and innovation of talent policies. It is also piloting the launch of policies for foreign talents to conveniently purchase foreign currency with their salary and special medical insurance policies for foreign talents. We also set up pilot areas to carry out national immigration policies and implemented immediate approval of work permits for high-level foreign talents.

Looking forward, we will work to carry out reform concerning the mutual recognition of the foreign talents' certificate, establish a one-stop referral system for foreign talents' permanent residence in the Pudong New Area, and push for the right of review on high-end foreign talents. We will also gradually relax restrictions on the employment of foreign talents in professional sectors and introduce a list system recognizing international vocational qualifications. In the meantime, we are working for a better environment concerning career development and living conditions of talents so that talents around the world are able to be introduced, stay, and develop in Pudong and give full play to their talents here. Thank you.

Cover News:

According to the guideline, Pudong will expand openness from the factor level to the system level and take the lead in establishing an open economic system that is compatible with prevailing international rules. A special economic function zone will be built in Pudong, and risk tests on the open economy in the area will be intensified. What are the considerations behind this target? Regarding expanding openness from the factor level to the system level, what are the specific plans and how will these plans be carried out? What messages does it send concerning intensifying risk tests on the open economy? Thank you.

Chen Ying:

Thank you for your questions. Back in 2010, Comrade Xi Jinping paid a visit to Pudong and put forward three requirements concerning the area's development principles. He stressed that Pudong's development is significant due to its exemplary role and functions, its courage in pilot trials, and its functions as a pacesetter. These three requirements are further reflected in the CPC Central Committee and the State Council's guideline, which supports building Pudong into a pioneer area for socialist modernization. The guideline stipulates that a special economic function zone will be built in Pudong, which demonstrates the necessity of carrying out opening-up policies and systems that are highly competitive in the global market. All of these provide new opportunities for Pudong's development and grant it new historic missions. This is reflected in the following three aspects:

First, more advanced pilot trials will be carried out in Pudong in a bid to showcase its full opening-up. The guideline stipulates that Pudong will pilot system-related opening-up measures. While further expanding openness in the fields of investment and trade, the area will also work to enhance its cooperative capacity domestically to better contribute to the national development strategy. We will highlight the internal driving force of market entities, give full play to the platform function of China (Shanghai) Pilot Free Trade Zone, its new Lingang area, and Yangshan Special Comprehensive Bonded Area. More institutional innovations will be introduced to meet the needs of enterprises and encourage more market entities to develop their internal driving force. We will also double the efforts to prevent systemic risks. As we usually say, openness is only possible under sound management. We will think about worst-case scenarios, coordinate relations between development and security, and establish a risk-control system concerning financial risks, public health emergency response, urban security, and safe production so as to better cope with a higher-level reform and opening-up.

Second, more advanced industrial functions will be developed in Pudong. By building a special economic function zone, the area's industrial capacity will be further expanded. We will focus on developing world-level industrial clusters in the fields of integrated circuits, artificial intelligence, and biomedicine so as to promote breakthroughs in key lines and core technologies. We will proactively study and practice new topics concerning international economic and trading rules, such as digital currency, building institutional strength and competitiveness concerning industrial development, and accelerating our pace in establishing an open industrial system that matches its positioning of a special economic function zone, so as to better participate in the global market on behalf of the country.

Third, a stronger exemplary role of Pudong will be given full play. To build a special economic function zone in the area, the key is to enhance the capacity of leveraging global resources. Looking forward, we will work to seek greater synergy among core fields such as finance, shipping, trade, and sci-tech innovation. We will build Pudong into a central pivot of domestic economic circulation and also a strategic link between domestic and international circulation. By doing so, we will better integrate Pudong's higher-level reform and opening-up into major national strategies such as the integrated development of the Yangtze River Delta and Hongqiao international open hub to give full play to Pudong's leading role in the integrated development of the Yangtze River Delta. 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 Zhang Liying, Wang Qian, Wang Yanfang, Zhou Jing, Lin Liyao, Zhang Junmian, Zhang Rui, Wang Wei, Yuan Fang, Yan Xiaoqing, Xu Xiaoxuan, Yang Xi, Wang Yiming, Zhu Bochen, Li Huiru, Qin Qi, Wang Yanfang, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Peng Huagang, secretary general of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) and spokesperson for the SASAC

Chairperson:

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

Date: 

July 16, 2021

Xing Huina:

Friends from the media, good afternoon! Welcome to this press conference held by the State Council Information Office (SCIO). We are delighted to be joined by Mr. Peng Huagang, secretary general and spokesperson of the State-owned Assets and Administration Commission of the State Council (SASAC). He will introduce the performance of the state-owned enterprises (SOEs) managed by the central government in the first half of this year and answer your questions. 

We will first invite Mr. Peng Huagang to give a brief introduction.

Peng Huagang:

Thank you, Ms. Xing. Friends from the media, good afternoon! First, I'd like to extend my appreciation to you for your long-term attention, care, assistance and support for the SASAC and centrally administered SOEs. As usual, I will make a brief introduction and then answer your questions.  

The first half of this year is an important period for celebrating the centenary of the Communist Party of China (CPC) and realizing our first centenary goal, which is to build a moderately prosperous society in all respects. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the SASAC and centrally administered SOEs have resolutely implemented the decisions and arrangements of the CPC Central Committee. We have followed the general principle of pursuing progress while ensuring stability; seized the opportunities brought by the continuous recovery of production demand; adjusted and optimized their production and operation rhythm; and accelerated to upgrade their efforts for higher quality and better efficiency. In the first half of the year, central SOEs made progress, achieved steady and sound performance, and improved quality while registering relatively fast growth. The economic performance of these enterprises has significantly improved, showing unceasing development resilience.  

In the first half of 2021, the net profits of centrally administered SOEs reached 1.02 trillion yuan, exceeding one trillion yuan in half a year for the first time, up 133.3% year-on-year and 45.4% over the same period of 2019, registering a two-year average growth of 20.6%. In June, the net profits of the central SOEs stood at 244.62 billion yuan, up 54.3% from June 2019, with both the accumulative and monthly net profits hitting a record high. In the first half of this year, the accumulative operating revenues of central SOEs totaled 17.1 trillion yuan, up 28.2% year-on-year and 18.2% over the same period of 2019, achieving a two-year average growth of 8.7%. The operating revenues in June registered 3.6 trillion yuan, up 23.3% from June 2019.  

In the first half of the year, centrally administered grid enterprises sold 3.1 trillion kilowatt-hours of electricity, up 19% year-on-year and 16.9% over the same period in 2019. The power output rose 9.4% in June from a year earlier, registering positive growth for 15 consecutive months. The crude oil output of central SOEs in the petroleum and petrochemical sectors reached 160 million tons, down 0.1% year-on-year and 1 percentage point narrower than that of the first five months. The sales of refined oil stood at 160 million tons, up 8.8% year-on-year. Coal enterprises produced 500 million tons of raw coal accumulatively, up 5.4% year-on-year. The accumulative sales of commercial coal totaled 660 million tons, up 16% year-on-year. Steel enterprises produced 90.38 million tons of steel in total, up 18.3% year-on-year. The total transport turnover of air transportation enterprises was 29.31 billion ton-km, up 38.8% year-on-year, and the monthly total transport turnover has maintained positive growth for five consecutive months.  

In the first half of the year, the SASAC and centrally administered SOEs, always bearing in mind the country's most fundamental interests, have done a tremendous amount of effective work in serving and supporting major national strategies, implementing peak carbon emission and carbon neutrality plans, boosting rural revitalization as well as the production and supply of COVID-19 vaccines, and preventing and defusing major risks. At the same time, a number of super projects made their debut. For example, all the generating units of the Wudongde Hydropower Station under the China Three Gorges Corporation and the first three units of Baihetan Hydropower Station were put into operation. The ultra-deep-water gas field, Deep Sea No. 1, of China National Offshore Oil Corporation (CNOOC) started production. The venues of Beijing 2022 Winter Olympics undertaken by China Minmetals Corporation and China Communications Construction Company were fully completed. A number of major programs presented a steady flow of feats. For instance, China's Tianwen-1 spacecraft left a Chinese footprint on Mars for the first time; the Shenzhou-12 spaceship conducted a fast autonomous rendezvous and docking with China's space station core module Tianhe; and the domestically designed third-generation nuclear reactor Hualong One entered commercial operation. Major projects and programs have been put into operation intensively, effectively demonstrating the strength of the country and greatly boosting the morale of the people in this year of grand celebration. 

A few days ago, the SASAC Party committee held a seminar for leaders of central enterprises to fully study and put into practice the guiding principles of General Secretary Xi Jinping's important CPC centenary ceremony speech on July 1, and made special work arrangements for the second half of the year. Next, the SASAC will follow the guidelines of General Secretary Xi Jinping's important speech on July 1, adhere to the general principle of seeking progress while pursuing stability, consciously incorporate the work of the SASAC and centrally administered SOEs into fostering a new development paradigm for overall consideration and planning. We will work hard and actively make progress and real results. We will focus on priorities and strengthen our foundation, and further arm ourselves with the Party's innovative theories. We will work on our foundation and look to the long run, and effectively promote the high-quality development of enterprises. We will concentrate on urgent tasks and better tackle critical problems, and resolutely carry out key reform and innovation missions. We will pay attention to security and prevent risks, and cement the bedrock for safe development. We will emphasize providing support and gave play to advantages, and comprehensively improve the quality of Party building work in our enterprises. By doing so, we aim to ensure the fulfilling of various goals and tasks, get off to a good start of the 14th Five-Year Plan, and make positive contributions to the steady and healthy growth of the national economy.  

Now, I would like to take your questions. Thank you.

Xing Huina:

Thank you, Mr. Peng, for your introduction. The floor is now open for questions. Please state the name of your media organization before asking your question.

China Media Group:

In terms of the main data, the performance of central SOEs in the first half of this year has been very good. What are the main reasons for this? What are the new characteristics of central SOEs in the first half of the year? Thank you.

Peng Huagang:

Thank you for your questions. In the first half of this year, as I have just mentioned, central SOEs have made steady progress in their economic operations, significantly improved their economic performance, showed sustained resilience in their development, and maintained a development trend of steady and fast improvement. All business indicators are eye-catching, which is the biggest feature of the first half of this year.

First, revenue and profit increased rapidly. In the first half of the year, the operating revenue of central SOEs reached 17.1 trillion yuan, up 28.2% year on year, while the two-year average growth rate was 8.7%. More than 90% of enterprises maintained double-digit growth, and the total realized profit was 1.31 trillion yuan, up 116.7% year on year, and the two-year average growth rate was 17.9%. At the beginning, I also reported that the net profit was 1,023.21 billion yuan, exceeding 1 trillion yuan for the first time in half a year. We used to say that "half of task is completed halfway through the year." In fact, from the perspective of the law of economic operation, the task is a little less completed, because more efforts will be made in the second half of the year. This time, we absolutely completed half of our task as we marked the halfway point, and for the first time, exceeding 1 trillion yuan, with an average growth of 20.6% for two years. The net profits of most industries witnessed substantial increase.

Second, operation quality continued improving. In the first half of the year, the operating revenue profit margin of central SOEs was 7.6%, up 3.1 percentage points compared to the same period of the previous year, and 1.1 percentage points higher than that of the same period in 2019. The annual labor productivity was 685,000 yuan per worker, up 30.5% year on year. In the first half of the year, the operating cash flow of central SOEs exceeded 1 trillion yuan, which was the best ever level during this period, an increase of 139.6% year-on-year. At the same time as a substantial growth in performance, various enterprises have persisted in tightening their belts, focusing on management and controlling costs, and the financial expenses have decreased by 6.4% year on year. At the end of June, the overall debt-to-asset ratio of central SOEs was 64.9%, a year-on-year decrease of 1 percentage point. 

Third, driving force for development became stronger. In the first half of the year, central SOEs invested 321 billion yuan in R&D, an increase of 37.4% over the same period last year, and the intensity of R&D investment increased by 0.12 percentage point over the same period last year. Among them, the R&D investment intensity of central industrial enterprises increased by 0.14 percentage point year on year. In the first half of the year, the fixed asset investment of central SOEs increased steadily, with a total investment of 1.1 trillion yuan, a year-on-year increase of 10.5%, and an average growth rate of 8.7% in two years. The growth of scientific research investment and investment has made our development more powerful.

It should be said that the economic operation of central SOEs has made steady progress, and improved steadily and rapidly, providing strong support for the "six stabilities" and "six guarantees."

We owe these achievements to the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core and to the scientific guidance of General Secretary Xi Jinping's important remarks on the reform and development of state-owned enterprises and Party building. At the historic juncture of the "Two Centenary Goals," General Secretary Xi Jinping, with a strong sense of historical responsibility, made plans for China's economic work in the first year (of the 14th Five-Year Plan period), pushed China's economic recovery and epidemic prevention and control measures to remain at the forefront of the world, provided fundamental impetus for the business and development of central SOEs, and strengthened their confidence and determination.

In the first half of the year, central SOEs also benefited from China's further advantages in epidemic control and economic growth as well as a sound external environment. Another reason for the good performance is that the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) and central SOEs have resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, made thorough plans, taken proactive actions, and worked hard to overcome difficulties and achieve new progress. Central SOEs planned and acted proactively and implemented the requirements for them to achieve the goals that the growth rates of net profit and total profit are higher than that of the national economy, the profit margin of operating income, the intensity of R&D investment, and the productivity of all employees improve notably, and the asset-liability ratio is steady, healthy and controllable. They have actively risen to all kinds of risks and challenges, and seized opportunities to expand markets, increase income, bring out potential and improve performance. All staff members have been hard-working and dedicated, making new achievements in reform, development and Party building. It is fair to say that we have delivered very good performance in the first half year. Thank you.

ThePaper.cn: 

Since the beginning of this year, two groups of four central SOEs have completed merger and reorganization. Since the 18th National Congress of the CPC in 2012, a total of 20 groups of 38 enterprises have been reorganized. I would like to ask, regarding these mergers and reorganizations, what are the considerations of the SASAC? What measures will you take next to optimize the layout and structure of central SOEs?

Peng Huagang:

Thank you for your questions. Accelerating the merger and reorganization of central SOEs is a key step to optimize the distribution, structural adjustment and efficiency of resource allocation of the state-owned sector at an accelerated pace. It is of great significance to keep the industry and supply chains stable as well as to foster world-class enterprises with global competitiveness at an accelerated pace. It is an issue of common concern. 

In the first half of this year, in line with the decisions and arrangements of the CPC Central Committee and the State Council, the SASAC worked with other relevant departments to promote the merger and reorganization of central SOEs in a steady manner, and made good progress. These included the merger and reorganization of ChemChina and Sinochem. Besides, we have carried out merger and reorganization to form specialized enterprises. For example, we established China Satellite Network Group Co. Ltd as the first central SOE headquartered in Xiongan New Area. Sinochem Holdings has been established and the integration of Sinochem and ChemChina's agricultural business has been completed. Further efforts will be made to deepen their business integration. Resources coordination in chemical engineering and other fields is also proceeding in an orderly manner. Besides, we have completed the integration of Potevio into China Electronics Technology Group Corporation. We are now connecting the two enterprises in various aspects including strategic planning, corporate governance, management system, business layout, and Party building to lay a solid foundation for deeper integration. Moreover, PipeChina is further integrating oil and natural gas pipelines and the shareholding rights of KunLun Energy's pipelines has been transferred, marking the end of the integration of major pipelines to basically form a national network. We have made great efforts in this regard in the first half of this year.

Next, the SASAC will firmly follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and implement the instructions on optimizing the distribution and structural adjustment of the state-owned sector. We will uphold market rules and guide central SOEs to carry out merger and reorganization proactively and prudently in accordance with laws and regulations. We will focus on efforts in the following aspects:

First, regarding strategic reorganization, we will focus on the supply-side structural reform, innovation-driven development and efforts to build China into a manufacturer of quality. In light of the needs of industrial development, we will steadily promote merger and reorganization in such industries as steel, and power transmission and distribution equipment manufacturing for central SOEs with ripe conditions. We will actively foster and establish new central SOEs in related fields at proper times. Several years ago, reorganization usually occurred among two or three enterprises. In recent years, specialized reorganization usually gives birth to new central SOEs. 

Second, in terms of specialized integration, with the goal of building strong and specialized enterprises, we will vigorously promote specialized integration through free transfer of shares, purchase of shares, joint-shareholding and other means and enterprises with competitive edges will be the major players in the process. By optimizing resources allocation, we hope to sharpen enterprises' core competitiveness and build world-class enterprises with global competitiveness.

Third, to advance integration, we will urge newly-established central SOEs and those involved in new merger and reorganization operations to further integrate internal resources, bring out the benefits of synergy, and improve the efficiency of resources allocation to achieve the goals of the reform as soon as possible. Thank you. 

China Economic Information Service:

The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council put forward operating goals for China's centrally-administered state-owned enterprises (SOEs) this year, which is to promote net profits and total profits of central SOEs to grow faster than the national economy. The profit margin of operating income, the amount of R&D investment, and the per capita labor productivity must significantly increase. Meanwhile, we must maintain a stable and controllable asset-liability ratio. In the second half of the year, what are the key arrangements for central SOEs to achieve these goals? Thank you.

Peng Huagang:

Thank you for your question. When I introduced the situation previously, I mentioned the "two benefits and four rates," around which your question revolves. This is also a new target framework for central SOEs depending on high-quality development. The "two benefits and four rates" target entails new requirements for the operation and development of central SOEs. The requirements you just mentioned were the goals set at the beginning of this year. In order to better achieve these goals, we will work mainly in the following aspects:

First, we will adhere to these goals and promote the continuous improvement of the operating performance of central SOEs. Focusing on the goals and tasks set at the beginning of the year, we will comprehensively leverage tools such as budget guidance, assessment, and incentives to promote the "two benefits and four rates" to achieve "two highs, three increases, and one stability." The "two highs" refer to the fact that the growth rate of net profit and total profit should be higher than that of the national economy. The "three increases" means that the profit margin for operating income, the amount of R&D investment, and the per capita labor productivity must significantly increase. "One stability" means that we need to maintain stability and control of the debt-to-asset ratio.

Second, we will strive to improve quality and efficiency in the high-quality development of central SOEs. Focusing on expanding domestic demands as the strategic fulcrum, we will actively participate in the construction of new infrastructure and new urbanization initiatives and major projects, undertake projects with high return rates, high added value, and high technological value, and constantly explore and develop new growth areas. We will strengthen cooperation across industry chains and coordination within the industry. We will strengthen the infrastructure construction cooperation and share benefits together in industries such as communication towers, oil and gas pipeline networks, ports and wharves. We will actively and steadily carry out international operations in a stable and orderly manner and promote higher-level international cooperation in fields like infrastructure construction, exploitation of energy and resources, and equipment manufacturing.

Third, we must step up structural adjustments and promote the continuous optimization of the distribution of state-owned capital. Focusing on building a new development paradigm and serving major national strategies, we will further adjust and optimize the distribution structure of state-owned capital, strictly implement the negative list of investment projects, and vigorously advance the disposal of the non-main business, non-dominant business, and the elimination of inefficient and idle assets. We will steadily promote strategic reorganization and professional integration and accelerate the construction of a modern industrial system.

Fourth, we must strengthen reform and innovation and bolster the momentum and vitality of central SOE development. We will carry out the three-year action plan for the reform of state-owned enterprises to ensure that more than 70% of the three-year reform tasks will be completed in 2021, and greater and more substantive results can be achieved in key areas. We will tackle key projects concerning central SOEs, continuously improve capacity for independent innovation, and strive to build pacesetters in original technology and extend modern industrial chains.

Fifth, we will work to prevent and defuse risks and promote central SOEs to effectively safeguard national economic security. We will further consolidate the results of bringing down leverage and reducing debt, identify bond redemption risks, and strictly prohibit debt evasion. We will prevent financial business risks, strictly control increments, speed up the optimization of stocks, prevent funds from being diverted out of the real economy, and promote the construction of the treasury management system. We will employ information technology and intelligent means to strengthen capital management and prevent capital risks.

Judging from the situation in the first half of the year, if we can implement these measures in the second half of the year, we will surely be able to accomplish this year's goals and tasks and make greater contributions to overall economic and social development. Thank you.

Hong Kong Bauhinia Magazine:

The outline of the 14th Five-Year Plan was put forward to accelerate the improvement of the distribution and structural adjustment of the state-owned sector. What are the SASAC's overall considerations and objectives for the reform and development of state-owned assets and SOEs during the 14th Five-Year Plan period? Thank you.

Peng Huagang:

Thank you for your question. That is what we have just completed. Implementing the guiding principles of the Fifth Plenary Session of the 19th CPC Central Committee, the SASAC has conducted a comprehensive and in-depth study and is working on its outline of the 14th five-year plan. This year, we have mainly implemented the guiding principles as well as the opinions on the distribution and structural adjustment in the state-owned sector in the new era, putting forward the three-level planning system of the state-owned assets. We have formulated the outline of the 14th five-year plan for central SOEs and the plan for improving the distribution and structural adjustment of the state-owned assets system. Details of both projects have already been released. They aim to lead the state-owned assets and SOEs systems to better uphold and strengthen the leadership of the Party; focus on duties and main business; vigorously improve the distribution and structural adjustment; intensify the reform of state-owned assets and SOEs; develop new strengths in industrial clusters, regional coordination, complementary advantages, new growth drivers, flexible mechanisms, and integrated development; further develop state-owned assets and SOEs; accelerate building world-class enterprises; and give beneficial play to the strategic importance of the state-owned sector.

For the state-owned assets system, we will vigorously improve the distribution and structural adjustment of state-owned assets so that by the end of the 14th Five-Year Plan period, they will play a more prominent role in strategic security, leading the industry, people's livelihoods, and with public services. They will also provide stronger guidance and guarantees for developing proactive and strategic industries and securing industrial chains and supply chains, and significantly increase the competitiveness of SOEs. These efforts will involve a few aspects.

First, we will make great efforts to improve their industrial layout and channel them into important sectors and key fields. Second, we will make great efforts to improve their regional distribution to serve major regional strategies, coordinated regional development strategies, and functional zoning strategies. Third, we will make great efforts to promote their structural adjustment, facilitate the development of different economic sectors side by side, strengthen efficient cooperation among all sides, deepen strategic reorganization and professional integration, and handle market-oriented development and law-based governance.

For central SOEs, we will make great efforts to start a new journey of high-quality development and accelerate the construction of world-class enterprises. By the end of the 14th Five-Year Plan period, we will strive to build a group of leading enterprises in various industries; a group of leading enterprises in scientific and technological innovation; a group of champion companies in specialized, refined, featured, and high-tech products and services; and a group of backbone enterprises for basic guarantees. At present, both plans have been issued for implementation. Next, we will strengthen their implementation to ensure that the tasks laid out in them are in place. Thank you.

21st Century Business Herald:

The Opinions of the CPC Central Committee and the State Council on Supporting High-level Reform and Opening Up of Pudong New Area and Building Pudong into a Pioneering Area for Socialist Modernization were published yesterday. It mentioned actively and prudently promoting mixed-ownership reform, merger, and reorganization of SOEs where conditions permit. How should we interpret it? What deeper explorations will be made in thepioneering area compared with current reform measures? Thank you.

Peng Huagang:

Thank you for your questions. As for the mixed-ownership reform, systematic arrangements have been made throughout the Guidelines on Deepening Reform of SOEs as well as other supplementary policies and the three-year action plan since the Third Plenary Session of the 18th CPC Central Committee. It has also been mentioned in major national strategies, including plans for the pioneering area. This is one of the important aspects of SOE reform, so it should be mentioned. The CPC Central Committee has long made its policies clear, and we have made active efforts over the past few years to implement them. In general, we still carry out reforms according to local, business, and enterprise conditions and oppose one-size-fits-all or arbitrary arrangements, no matter which sector we are handling.

First, we emphasize reform at different levels and in different fields. In terms of different levels, group companies, their subsidiaries and sub-subsidiaries should adopt different measures. Among group companies, we have made it clear to carry out more diversified reforms rather than mixed-ownership reforms. In terms of different fields, we emphasize further promoting market-oriented reforms in highly competitive industries. Enterprises owned by companies invested and operated by state-owned assets are also the focus of our mixed ownership reforms.

In a word, we will actively and prudently promote reforms through approaches tailored to the specific conditions of each enterprise. Another very important part of the process is to transform the operating mechanism. Mixed-ownership reforms help to further improve governance and develop market-based operating mechanism. For example, professional managers and market-based salary distribution are what we require on the whole. We hope that the pioneering area can step up its reform in this regard. Thank you.

Cover News:

China's national carbon market was officially launched on July 16, with the first batch of participants including 2,000 enterprises in the power sector. What work have centrally-administered state-owned enterprises (SOEs) done in building the carbon emission trading market? What are the next plans for SASAC in promoting the green transformation of central SOEs? Thank you.

Peng Huagang:

Thank you for your questions. Carbon peaking and carbon neutrality are very important issues. Central SOEs have been actively carrying out related work. The main task of central SOEs in the national carbon market is to steadily promote the establishment of systems and mechanisms for low-carbon development, improve the system for carbon asset management, actively participate in the construction of a national energy-use rights and carbon emissions trading market, release carbon emissions reports and disclose information in accordance with the law. In addition, we are supporting enterprises to improve their energy efficiency though market-based approaches, such as integrated energy services and contracted energy management. We are also helping enterprises to build investment and financing systems in accordance with the goals of carbon peak and neutrality, and develop green financial products and innovative business. At present, some central SOEs have set up carbon asset management institutions for statistical accounting of carbon emissions and inventory of greenhouse gas emissions, and are actively participating in the trading of carbon emissions. China's central SOEs in key industries such as energy and steel also invested in or hold shares of carbon trading institutions in Beijing, Shanghai, Hubei province and other places. China's central SOEs actively participated in the progress of China's carbon market from establishing rules and markets to trading. Some enterprises said that the first batch of carbon trading participants in pilot regions were mainly central SOEs. SASAC attaches great importance to carbon peak and neutrality goals. We are actively collecting ideas and formulating plans to encourage central SOEs to play a better role in achieving carbon peaking and carbon neutrality.

We will focus on the following tasks:

First, we will steadily promote the green and low-carbon transformation of the industrial structure. During the formulation of the 14th Five-Year Plan for central SOEs, SASAC strengthened the arrangements for green and low-carbon development, with the aims to vigorously develop green and low-carbon industries, promote the low-carbon transformation of traditional industries, and strictly curb haphazard launches of high-energy consumption and high-emission projects.

Second, we will steadily promote the optimization of the energy structure. We will guide central SOEs to control fossil fuel consumption and to develop non-fossil energy, exploit hydropower according to local conditions, accelerate the development of wind and solar power, and develop nuclear power in an active and orderly manner. We will push forward the construction of clean energy via China's mega hydropower stations such as those at Wudongde and Baihetan. We will develop a new electricity system that utilizes new energy as the main source of electricity supply. We will take holistic steps to promote the complete industrial chain of hydrogen resources, including production, transportation, storage and utilization. At present, more than one-third of central SOEs are formulating a complete industrial chain of hydrogen resources and have made achievements in technology research and development and demonstration application.

Third, we will steadily promote efficient use of energy and resources. We will encourage central SOEs to strictly control both the intensity and total consumption of energy. We will strengthen energy management and strictly evaluate the performance of energy conservation targets and pursue accountability accordingly. We will upgrade energy-saving and low-carbon technologies, strengthen energy efficiency benchmarking and target-hitting, and continue to promote green and efficient coal production and use. Central SOEs' energy consumption per unit of output is continuing to decline.

Fourth, we will steadily promote applications of green and low-carbon technologies. We will organize central SOEs to achieve major scientific and technological breakthroughs in low, zero and negative carbon technologies, leading to breakthroughs in green and low-carbon technologies. For some projects carried out by central SOEs, we have advanced the deployment of low-carbon technology in wind power, nuclear power, hydrogen energy and new energy vehicles. We will continue to strengthen efforts in technology research, development and application in smart grids, energy storage, hydrogen energy, carbon capture and other technologies.

Next, SASAC will resolutely implement the decisions of the CPC Central Committee and the State Council. We will organize central SOEs to make every effort to achieve the goals of carbon peak and neutrality. We will enhance efforts to shut down outdated production facilities and promote technology research, development and application in low, zero and negative carbon technologies. We will give full play to the important role of central SOEs and contribute to achieving the goal of carbon neutrality.

Yicai:

At the end of June this year, the debt-to-asset ratio of the centrally-administered SOEs was 64.9%, a year-on-year decrease of 1 percentage point. What are the SASAC's considerations for preventing and resolving major risks for the next step? In particular, what specific measures will be taken to prevent the default risks of SOE bonds? Thank you.

Peng Huagang:

Thank you for your questions. Preventing and resolving risks is an issue that the SASAC and central SOEs attach great importance to. In the past few years, we have done a lot of related works, and the results are excellent. The most direct effect or the most obvious result was that the debt-to-asset ratio of central SOEs at the end of June was 64.9%, a decrease of 1 percentage point year-on-year. On the whole, the ratio has remained stable, and the debt risks are under control. In recent years, there has not been a single bond default incident relating to central SOEs.

In the next stage, we will continue to manage and control central SOEs' debt risks. The works will be done mainly in the following aspects: First, we will control the debt ratio. We attach great importance to debt ratio. We will formulate warning lines and control lines according to each industry's situation; implement categorized control and operate on a one-policy-for-one-enterprise basis; set an annual target of the debt ratio for each central SOE and follow it up for implementation, so as to keep central SOEs' overall debt level stable. Second, we will put key enterprises under control. We will strengthen the dynamic monitoring of debt risks, accurately identify high-risk enterprises through the debt risk quantitative assessment system, and adopt special regulatory measures to resolve and handle the risks of different enterprises with different policies. Third, we will keep high-risk businesses under control. We will strictly control the risk of bulk commodity trade that is not the main business of an enterprise and only yield a low gross profit. We will strictly control the risks of such businesses as financial derivatives, financing guarantees and public-private partnership (PPP). We will also resolutely prohibit trade financing business. In the past few years, we kept rectifying trade financing activities, and now we strictly prohibit the development of this business.

In terms of preventing bond risks, we have established a set of bond risk prevention mechanisms for central SOEs. First, we strictly limit the proportion of bond issuances. We strictly control the proportion of high-risk corporate bonds in interest-bearing debt, and the proportion of short-term bonds in all bonds, so as to prevent the risk of centralized redemption. Second, we will strictly control the use of bond funds, focus on main businesses and industries, strictly prevent funds from circulating within the financial sector without investing into the real economy or being diverted out of the real economy, and strictly prevent any misappropriation of funds for illegal arbitrage. Funds raised through bonds must be invested into the real economy and are not allowed to be used in other sectors. Third, we will strengthen bond risk monitoring, paying close attention to the bond default risks of enterprises with severe operating losses and tight cash flow, and make arrangements for redemption funds in advance. Fourth, we will establish a credit guarantee fund to encourage enterprises to steadily resolve bond default risks in accordance with market principles, laws and international standards. Enterprises face many risks in market operations, but financial risks and bond risks are very direct risks. Therefore, the SASAC and central SOEs attach great importance to this work, and the results have so far been quite good. Thank you.

Red Star News:

Which central SOE business sectors have been most affected since the outbreak of the COVID-19? Have these sectors fully recovered based on their performance in the first half of this year? In addition, how is the overseas investment performance of central SOEs? Thank you.

Peng Huagang:

Thank you for your questions. Since the outbreak of the COVID-19, the central SOEs' aviation industry has suffered the heaviest blow. Businesses in all three central aviation enterprises were severely affected in 2020. Total transport turnover and passenger volume last year was less than half of normal annual levels, suffering losses of nearly 30 billion yuan, which was indeed a heavy blow. China is not alone in this regard, with most aviation enterprises around the world having been seriously hit by the pandemic. Nevertheless, it didn't take long for China to resume production and restore the normal operation of its economy and society, and the affected industries are also recovering gradually. In general, the situation this year is better than that of the same period in 2020.

In the first half of this year, the total transport turnover of all three central aviation enterprises increased by 38.8%; passenger volume increased by 63.1%; and cargo and mail volume increased by 25.2%. Their major business volume has recovered to more than 70% of that seen in the same period in 2019. In the first half of this year, the total business revenue among these three enterprises increased by nearly 30% year on year. Although their net profit is still in deficit, their losses were significantly reduced by more than 15 billion yuan compared to the same period last year.

Regarding your question about central SOEs' business development overseas, I think the overall situation is manageable, but it will definitely affect performance to a certain extent. Since the outbreak of the pandemic, we have taken numerous measures. While the pandemic in China has been effectively curbed, the situation abroad is still rather grave. Given this, the SASAC established guiding groups for pandemic prevention overseas at the early stage of the outbreak. Until now, the guiding groups have still been on duty 24 hours a day, maintaining contact with central SOEs overseas, and issuing a series of standard guiding documents and manuals for projects and personnel abroad. This is a summary of effective on-site pandemic prevention measures. To provide timely medical treatment for those infected, we have established a telemedicine platform, coordinated medical resources at home, and built standardized clinics in other countries. These clinics are directly connected to major hospitals in China via telemedicine means and have played a crucial role in dealing with infected staff overseas in a timely manner. In accordance with the domestic requirements of pandemic prevention and control, flights outside China have not fully resumed. The flow of personnel should also follow requirements accordingly. By arranging charter flights and other means, we have managed to coordinate the dispatch of staff and relevant vocation plans. So far, we have dispatched employees on approximately 170,000 overseas trips, of which 20,000 trips were made via charter flights. We have also organized 170,000 trips bringing employees back to China, of which 10,000 trips were made via charter flights. Currently, central SOE projects concerning the construction of the Belt and Road Initiative have not been affected by the pandemic and are continuing. The overall situation in this regard is going well. Thank you.

CRI:

China aims to achieve more than 70% of the goals of its three-year action plan by the end of this year, so what measures have been taken to boost the action plan? What are the difficulties? How about the work plan for the second half of the year? Thank you. 

Peng Huagang:

Thanks for your questions. The three-year action plan has been the top priority of the SOE reform in recent years. Compared with the reforms of previous years, the promotion of the three-year action plan has its own characteristics. As we often say, we should advance the three-year action plan in accordance with the requirements of being measurable, assessable, and verifiable, and by taking real actions. We should also focus on integrating the Party's leadership into corporate governance, and work on improving efficiency, promoting innovation, defusing risks and standardizing accounting. Specifically, there are three characteristics.

First, systematic advancement. We printed and distributed work reports, refining the tasks of the three-year action plan into 337 specific measures, and specifying objective requirements, forms of achievements and timelines. State-owned enterprises and localities have also formulated work reports, putting forward 11,913 and 3,679 reform measures respectively, and thus making the reform tasks detailed, practical and specific. Taking work reports as the focus of our efforts, we have established at all levels a system of written pledges and a system of "holder of primary responsibility," and made sure that responsibilities are fullfiled at all levels. The intensity of work has been unprecedented. 

Second, penetrable promotion. In the past, we advanced reforms step by step. This time, we have been working at a high level to make extensive efforts to move forward with a checklist of reform measures and time-bound reform tasks. We established the work promotion system of monthly meetings, quarterly reviews, semiannual reports and a year-end summary. The monthly meetings are held through remote video link, directly involving the important secondary and tertiary subsidiaries to remove obstacles of the "last one kilometer" of reform policy implementation. We found this problem a few years ago: some enterprises have done well in promoting reforms through layer-by-layer arrangements, while some do not know how to reform. The three-year action plan has helped solve this problem once and for all through penetrable operations. 

Third, quantitative supervision. An online supervision system was established, setting up 94 collection indicators and 26 calculation indicators for centrally administered state-owned enterprises and 79 collection indicators and 34 calculation indicators for local enterprises. The system summarizes and informs the accomplishment of key tasks monthly to identify, analyze and solve problems in time, effectively playing the role of dynamic monitoring, data collection, regular summaries and real-time supervision. During the process of promoting the three-year action plan, these measures are really innovative and the promotion made the tasks of reform clearer for enterprises at various levels and provided greater reform motivation and pressure. During the process of our supervision, we will directly send a supervision letter to the company if we think there is a problem and ask the chairman of the company to read it. This method has achieved good results. 

According to the current situation, many institutional problems have been satisfactorily solved through the three-year action plan of SOE reform. For example the following tasks have entered their final stages, with fulfilment rates of more than 97%, 98% and even 99%: relieving SOEs of their obligations to provide water, electricity, heating and property management services to their employees' homes; reforming medical and educational institutions and collectively owned factories run by SOEs; and socialized management of retired employees. The task of relieving SOEs of their obligations to operate social programs as well as other longstanding problems will soon be resolved once for all. 

The reform has also enriched the modern management system. By focusing on the tenure system and contract management of the executive level at SOEs and deepening the reform of the personnel, labor and income distribution, SOEs have seen increased vitality and effectiveness. In addition, their employees are demonstrating more enthusiasm and creativeness at work.

There are many good examples. Not long ago, we held a meeting at China FAW Group Corporation (FAW) and asked some central SOEs which have seen quite effective reforms to share their experiences. For example, China First Heavy Industries (CFHI), as we all know, it is a Qiqihar-based SOE for heavy equipment and machinery. General Secretary Xi Jinping visited it twice. The leadership of the heavy machine maker has been resolute in applying the tenure system and contract management of the executives to the company. The goal is to remove the rigid evaluation bondage so that the selection of management staff can be based on their performance. If an executive cannot meet 60% of the target income and 70% of the target profit, the person will be removed from the post. Moreover, through market-based recruitment and employment policies, the company has canceled 187 management units, laid off 2,355 staff and lowered its corporate burden by 21%. Such ambitious moves have stimulated the company's vitality and helped improve the company's performance. Thanks to the reform, CFHI's annual profit growth has maintained 131% during the past three years.

Another example is FAW, which has intensified its market reform, especially in terms of personnel, labor, income distributions and management units. The reform started from its headquarters and expanded to its subsidiaries. A total of 28,000 staff participated in the re-recruitment process for the company's job posts, in which 1,700 defeated went into a round of training to increase their competency for another chance of re-employment. The process has led to a 16.7% adjustment in the company's senior managers and attracted much public attention. Over the past years, its self-developed Hongqi brand has seen a surge in sales from 4,000 in 2017, 30,000 in 2018 and 100,000 in 2019, to 200,000 in 2020. This year's sales target is 400,000. The sales are growing in line with the improvement in production. Thanks to its effective reform, the company is seeing stronger vitality and improvement in technological innovation, operations and manufacturing.

The above are the main features of the three-year action plan for SOE reform, which have brought tangible progress. In the next step, we will follow the decisions of the CPC Central Committee and the State Council as well as the requirements of the Leading Group of the SOE Reform of the State Council, strive to complete 70% of the goals by the end of this year, and meet all the reform targets of the action plan by July 1 next year.

Xing Huina:

As there are no more questions, today's press conference is hereby concluded. Thank you to Mr. Peng and friends from the media. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Qian, Xiang Bin, Huang Shan, Qin Qi, Yuan Fang, Wang Yiming, Wang Yanfang, Zhang Jiaqi, Wang Zhiyong, Dong Qingpei, Huang Shan, Zhang Rui, Chen Xia, Zhu Bochen, Yang Xi, Liu Qiang, Guo Yiming, Li Huiru, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Tian Yulong, a member of the Leading Party Members Group of the Ministry of Industry and Information Technology (MIIT) and MIIT chief engineer and spokesperson

Huang Libin, MIIT spokesperson and director general of the MIIT's Performance Inspection and Coordination Bureau

Zhao Zhiguo, MIIT spokesperson and director general of the MIIT's Information and Communications Administration Bureau

Chairperson:

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

Date: 

July 16, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to be joined by Mr. Tian Yulong, a member of the Leading Party Members Group of the Ministry of Industry and Information Technology (MIIT) and MIIT chief engineer and spokesperson. He will introduce the development of industry and information technology in the first half of 2021 and answer your questions. Also present at today's press conference are Mr. Huang Libin, MIIT spokesperson and director general of the MIIT's Performance Inspection and Coordination Bureau, and Mr. Zhao Zhiguo, MIIT spokesperson and director general of the MIIT's Information and Communications Administration Bureau.

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

Tian Yulong:

Friends from the media, good morning! First of all, thank you all for your concern and support for the development of industry and information technology in China. I will first briefly introduce the overall situation of industrial and information technology development in the first half of this year, and then I will join my colleagues to answer your questions.

General Secretary Xi Jinping delivered an important speech at a ceremony marking the centenary of the Communist Party of China (CPC), which pointed out the direction for building a great modern socialist country in all respects. The industrial and information sectors have earnestly studied and implemented the guiding principles of General Secretary Xi Jinping's important speech, strived to build China's strength in manufacturing and cyberspace, and made unremitting efforts toward the second centenary goal of building China into a great modern socialist country in all respects. Since the beginning of this year, we have thoroughly implemented the guiding principles of the Fifth Plenary Session of the 19th CPC Central Committee and the Central Economic Work Conference, and the overall plan set out in the government work report. We have worked to ensure the six priorities of employment, people's livelihoods, development of market entities, food and energy security, stable operation of industrial and supply chains, and smooth functioning at the community level, and ensure stability in six areas: employment, finance, foreign trade, foreign investment, domestic investment, and market expectations. The industrial sector continued its steady recovery, while the information technology sector enjoyed sound development. The economy showed steady and robust growth, laying a solid foundation for achieving the annual goal and ensuring a good start of the 14th Five-Year Plan (2021-2025).

There are four main highlights in the development of industry and information technology in the first half of the year.

First, the industrial economy regained its strength and demonstrated resilience. Since the beginning of this year, China's industrial economy continued to steadily recover; supply and demand grew progressively; the rebound of domestic and external demand accelerated and broadened; market expectations continued to improve; internal growth drivers were boosted; and corporate profits in the industrial sector rose significantly. In the first half of the year, the value-added of industrial enterprises above designated size increased by 15.9% year on year, and the two-year average growth rate was 7%. In the first five months, the profits of industrial enterprises above designated size increased by 83.4% year on year, and the two-year average growth rate stood at 21.7%, which was a historical high.

Second, we have continued to advance industrial upgrading and foster new drivers of growth. Since the beginning of this year, we have actively ensured supplies when conducting epidemic prevention and control on an ongoing basis and comprehensively increased China's vaccine production capacity to ensure vaccine supply. As of July, China's annual production capacity for COVID-19 vaccines reached 5 billion doses, with over 1.4 billion doses of vaccines administered in China and over 500 million doses provided to other countries around the world. Meanwhile, we have accelerated the transformation of our manufacturing industry to be green and low carbon and developed innovative applications of intelligent manufacturing and the industrial internet. We have implemented special actions for the development of advanced manufacturing clusters and built national-level internet of vehicles pilot zones and national artificial intelligence innovation application pilot zones. In the first half of the year, the value-added of the high-tech manufacturing sector increased by 22.6% year on year, and the two-year average growth rate was 13.2%. New drivers of growth and new industries continued to facilitate innovative development.

Third, production and business operations have been improved and the vitality of enterprises continues to increase. Multiple departments jointly issued guidelines on accelerating the cultivation of high-quality manufacturing enterprises to vigorously promote the development of leading manufacturers and technologically advanced "little giants," which refer to the industry leaders recognized by the MIIT with specific market orientation, excellent innovation capabilities, large market shares, core technologies, and high product quality and profitability. We have continued to improve the "321" work system for facilitating the development of small- and medium-sized enterprises (SMEs), that is, providing support in the three aspects of policy, services and the environment, focusing on the two key tasks of addressing financing difficulties and enhancing the protection of their legitimate rights and interests, and aiming for the target of making them more innovative and professional. We have implemented structural tax reduction measures, promoted the reduction of guaranty fees for small and micro businesses, and improved the long-term mechanism for preventing and dealing with the problem of defaults on payments to SMEs. In these ways, we continued to improve the policy environment for SMEs. In the first half of the year, the value-added of small- and medium-sized industrial enterprises increased by 18% year on year, and the two-year average growth rate was 8.1%.

Fourth, information and communications have accelerated development, while innovation and industrial integration keeps driving growth. At present, a total of 961,000 5G base stations have been set up. As of the end of June, these stations covered all cities at the prefecture level and above across the country, with approximately 365 million 5G terminal connections. Meanwhile, we have accelerated the construction of "dual gigabit" networks, and the number of gigabit broadband users has reached 13.62 million. The application scenarios of "5G plus industrial internet" continue to expand, and great progress has been made in key demonstration areas, industries and regions. 5G empowers industries to improve quality, increase efficiency, reduce costs, and pursue green and safe development. With the collaboration of multiple departments, we made great efforts to address hidden information security risks, and officially launched the 12381 Fraud Prevention Message System. Significant results have been achieved in actions to protect personal information on apps and to adapt telecommunications services to better suit senior users. People's sense of gains and security has been significantly improved.

Of course, we are keenly aware that there are still great uncertainties, risks and challenges regarding the global pandemic and the external environment. There are still uncertain factors concerning the sustained economic recovery; and the microeconomic operation still faces difficulties and challenges. Meanwhile, small and medium-sized enterprises in particular are confronted with many difficulties. The MIIT will study and implement the guiding principles of an important speech by General Secretary Xi Jinping at the ceremony marking the Party's centenary on July 1. We will firmly implement the decisions and plans of the CPC Central Committee and the State Council, ground our work in this new stage of development, apply the new development philosophy, and foster a new pattern of development. We will jointly work with other departments to focus on priorities and deepen supply-side structural reforms, prevent and defuse risks, and tackle structural problems. We will stay focused, and ride the momentum to speed up a sustained and steady recovery and ensure the high-quality development of the industrial economy. We will work hard to ensure all tasks and goals set throughout this year are accomplished, in order to achieve a good start in the 14th Five-Year Plan period (2021-2025) and write a new chapter of the new journey toward the second centenary goal of building China into a great modern socialist country in all respects. 

This is all for now. Next, my colleagues and I will answer your questions.

Shou Xiaoli:

The floor is now open for questions. Please identify your news outlets before asking questions.

CCTV:

At the ceremony marking the Party's centenary on July 1, General Secretary Xi Jinping said, "The Communist Party of China is rallying and leading the Chinese people on a new journey toward realizing the second centenary goal." What plans and measures will be formulated on the new path of industrialization to help realize the goal? Thank you.

Tian Yulong:

Okay, I will answer your question. General Secretary Xi Jinping has stressed on many occasions that "manufacturing is the foundation on which to build the country and make it strong." Promoting the country's industrial modernization and working faster to make China strong in manufacturing concerns the goal of building China into a great modern socialist country. According to the decisions and plans of the CPC Central Committee and the State Council, we are now formulating the development plans for the industrial and information technology sectors for the 14th Five-Year Plan (2021-2025) and the medium- and long-term periods. They will be promulgated in the second half of the year. With a focus on the second centenary goal, these plans aim to speed up developing a new type of industrialization. During the 14th Five-Year Plan (2021-2025) and the medium- and long-term periods, we will set out comprehensive plans concerning the goals, approaches and tasks of building China's strength in manufacturing and cyberspace. Specifically, we will take strong measures in five areas.

First, we will further implement an innovation-driven development strategy. We will promote industrial innovation led by enterprises and work hard to create new advantages for the innovative development of manufacturing. We will carry out projects to achieve breakthroughs in core technologies in key areas, and develop key technologies, products and equipment. We will implement the project of developing a national network for manufacturing innovation and establish an open, collaborative and efficient generic technology platform.

Second, we will build a modern industrial chain. We will continue to implement projects to rebuild our industrial foundation, and work faster to upgrade it. We will focus on strategic areas concerning the national economy, people's livelihoods, national security and high technology. We will give full play to the strengths of the industrial and supply chains, and strengthen our weakness in this regard. We will promote the transformation and upgrading of the whole industrial chain in traditional sectors. With a focus on a new generation of information technology, new materials, new processes and new equipment, as well as aviation, aerospace, marine, and other emerging industries, we will develop industrial digitalization and digital industrialization, make a forward-looking layout of future industries, and seize the initiative of industrial development.

Third, we will promote the development of manufacturing and make it high-end, smart and eco-friendly. We will accelerate the implementation of the strategy to make China a country strong with quality, expand the supply of high-quality products, and build high-end manufacturing brands with international influence. We will promote smart manufacturing, build smart factories and a smart industrial chain, and cultivate and develop new business forms and new models of smart services. With focus on the goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060, we will develop a system of eco-friendly manufacturing, speed up the green and low-carbon transformation of manufacturing, and build new engines for green growth.

Fourth, we will move forward with the integrated development of small, medium-sized, and large enterprises. We will work faster to cultivate excellent enterprises, including those that can take the lead and maintain dominance. We will implement projects to enhance the innovation capabilities of small- and medium-sized enterprises; cultivate a number of "little giants"; and achieve the integrated and innovative development of small, medium-sized, and large enterprises. We will upgrade the collaborative system to support the industrial chain in key areas, sectors and regions, and accelerate the cultivation and development of world-class advanced manufacturing clusters.

Fifth, we will foster a sound ecosystem for the development of manufacturing. We will work with other departments to improve and innovate fiscal and taxation supportive policies, enhance multi-level capital markets, optimize the supply of financial products and services, and establish systems and mechanisms for the financial sector to effectively support the real economy. We will comprehensively improve the skills of our workers and the professional qualities of our manufacturing talent. We will support capable enterprises to go global and deeply integrating themselves into the global industrial chain. We will build a win-win community of shared interests connected by industry and supply chains, and create new advantages in international cooperation and competition.

Next, we will formulate plans in the above five aspects and take effective measures to promote them. Thank you.

China National Radio:

We have noticed that the industrial economy maintained a steady recovery in the first half of the year. What is the assessment of the spokesperson on the current performance of the industrial economy? Also, what specific measures has the MIIT taken to drive the steady recovery of the industrial economy, and how do you predict the situation will develop in the second half of the year?

Tian Yulong:

Thank you, Mr. Huang Libin will answer these questions.

Huang Libin:

Thank you for your questions. Mr. Tian just presented in his opening remarks the overall situation of the industrial economy and development of information technology in the first half of the year. The main characteristics of the economic performance in the first half of this year can be summarized as "solidifying and gaining better quality and brighter prospects, while maintaining stability." As for "solidifying while maintaining stability," we mean that the momentum of steady recovery of industrial economy has become more solidified, and economic growth has become more stable, balanced and endogenous. 

Speaking of stability, excluding the impact of last year's base, the two-year average growth rate remained stable overall. The industrial added value above designated size saw a year-on-year growth of 15.9% in the first half of this year, putting the two-year average growth rate at 7%. The two-year average growth rates in the first and second quarters were 6.8% and 6.6% respectively, not showing much fluctuation. The utilization rate of industrial capacity reached 78.4% in the second quarter, which is 1.2 percentage points higher than in the first quarter. Economic indicators such as the delivery value of exports and proportion of products sold all reached relatively higher levels seen in recent years. 

Speaking of being balanced, among the 41 main industrial categories, 39 of them, or more than 90% of them, saw growth in the first half of the year. The policy of expanding domestic demand and boosting consumption was implemented and results were achieved. Investment was increased to make up for weaknesses; domestic demands played a stronger role in boosting industrial growth; and consumer goods manufacturing sector saw the two-year average growth in added value reach 4.8% in the first half of the year, a 0.6 percentage point higher than in the first quarter. 

Speaking of being endogenous, various policies aimed at aiding and benefiting enterprises continued to deliver dividends. Market entities further restored their vitality. In the first five months, industrial enterprises above designated size saw a big growth rate of 83.4% in the total amount of profits over the same period last year. The operating profit ratio also reached a high level of 7.11%. 

Based on the significant improvement of profitability of enterprises, investment in manufacturing sector grew 19.2% year-on-year in the first half of the year. Investor confidence in the market continued to strengthen. 

As for gaining better quality while maintain stability, we mean that the industrial economy was running within a reasonable range. The industrial structure continued to optimize and high-quality development reached a new level. Efforts to transform and upgrade traditional industries continued to intensify. We cemented the success in cutting capacity in the steel industry and pushed for green, low-carbon development. The energy consumption per unit of industrial added value of enterprises above designated size decreased 5.7% year-on-year over the first five months. Meanwhile, implementation was deepened in the project of intelligent manufacturing and project of innovative development of the industrial Internet. The manufacturing sector became increasingly digitalized, smart and internet-powered. As of the end of May, the popularity of digitalized tools used in R&D and design reached 73.5% among enterprises, and the numerical control rate of key processes reached 52.4% among enterprises. The development of new industries and new growth drivers was accelerated. In the first half of the year, the added value of high-tech manufacturing sector grew 22.6% year-on-year, with the two-year average growth rate reaching 13.2%, notably higher than the overall industry. The output of new energy vehicles and industrial robots increased by 2.1 times and 69.8% year on year respectively. New industries in the digital economy such as big data, cloud computing and blockchain flourished, and new models such as live-streaming e-commerce, online medical treatment and remote work grew rapidly.

As for gaining brighter prospects while maintaining stability, we mean that positive factors supporting the sustained and steady recovery of the industrial economy accumulated and the sustainability of the economic recovery further strengthened. Our country led the world in epidemic prevention and control and economic recovery and this advantage has continued to strengthen. The industrial system exhibited its resilience; efforts to foster a new pattern of development was accelerated; the potential of the domestic market was continuously unleashed; and the fundamental situation that the industrial economy is looking good in the long term has continued to expand. As the vaccination work accelerates, the world economy is steadily recovering, household consumption continues to recover, construction of new-type infrastructure is accelerated, and the periodical economic rebound continues to gain strength. We have the capability and resources to keep the industrial economy running within a reasonable range. 

In the meantime, we should see that we are currently facing an international environment that is complicated and stern with numerous factors of instability and uncertainty. Rising commodity prices, chip shortages and other issues have put new pressures on the recovery of the industrial economy. Next, we will attentively implement the decisions and arrangements of the CPC Central Committee and the State Council, make serious efforts in implementing various policies and measures, address all sorts of difficulties and challenges proactively, and push for the sustained and steady recovery of the industrial economy and its high-quality development. Thank you.

China Daily:

More than 1.4 billion doses of COVID-19 vaccines have been taken in our country. How is the situation regarding the production and supply of COVID-19 vaccines in our country? Can we manage to meet the demands for vaccine exports? What measures has the ministry taken to secure the production and supply of vaccines? Thank you.

Tian Yulong:

Thank you for your questions. I will answer these questions. The ministry has deepened its efforts to implement the spirit of a series of important directions and instructions by General Secretary Xi Jinping regarding epidemic prevention and control and vaccine production and supply. Under the overall arrangements and demands of the Joint Prevention and Control Mechanism of the State Council, the ministry led relevant departments to increase efforts in organizing and coordinating the production and supply of vaccines. We offered guidance for seven enterprises to quickly expand their capability and output, and accelerate the industrialization of vaccine production. As of this year, efforts to expand the capability and output of vaccine production have been remarkably accelerated, and the capability of vaccine production and supply has been significantly improved. Everybody can see this. As of July, vaccine production capability reached 5 billion doses, effectively meeting domestic demand. As you just mentioned, we have supplied 1.4 billion doses of the vaccine now. We also supplied 570 million doses of vaccine overseas. The production capability and output of COVID-19 vaccines has continued to expand, the supply capability has continued to improve, and the growth has been significant, which has well met domestic demands for epidemic prevention and control and vaccination, and also supported other countries for epidemic prevention and control in our best abilities. 

We have high demands for vaccine quality and safety because people's lives are of supreme importance. It takes three months for a vaccine to go from production to inoculation due to technical difficulty, a number of control links and procedures. The MIIT and relevant departments have worked together to coordinate the whole chain of production and supply, including research and development, production, review, approval and transportation and effectively guaranteed production and supply. There are mainly several specific measures.

First, we have accelerated the building of production capacity for all types of vaccines. Progress has proceeded according to plan. On the basis of ensuring quality and safety, we have made great efforts to expand production capacity and guarantee supply. Second, we have guided vaccine companies to strengthen quality and safety control. In particular, higher requirements have been put forward concerning the supply of raw and auxiliary materials, inspection and quality. Ensuring quality and safety is our first priority. Third, we have strengthened connection between supply and demand. Domestically, we have guaranteed supply for key cities and regions in urgent need for vaccines. Internationally, we have communicated with the WHO and other countries to provide support, which is also a very important task.

In the second half of the year, in accordance with the decisions and deployments of the CPC Central Committee and the State Council, the MIIT will continue to organize and coordinate with relevant departments, and guide enterprises to guarantee the quality and safety of vaccines and maintain stable production. We will also coordinate domestic and international demands, and support vaccine enterprises to carry out international production capacity cooperation in multiple ways to expand vaccine accessibility and affordability and make more contributions to the global fight against COVID-19. Of course, we will still give priority to domestic epidemic prevention and control and vaccination needs. We are confident that we will accomplish this task. Thank you.

Hong Kong Commercial Daily:

Nowadays, almost everyone has a mobile phone with many apps installed. The management of apps, relating to the vital interests of the public, is a hot issue of common concern. What important measures has the MIIT taken recently to manage apps? Thank you.

Tian Yulong:

Thanks for your question, Mr. Zhao Zhiguo will answer it.

Zhao Zhiguo:

Thank you for your question. The MIIT pays great attention to the protection of app users' rights and interests. In recent years, we have adopted a holistic approach to improve our management system. Through the following four areas of work, we have achieved new progress and effects.

First, problem-addressing actions on apps' infringement of users' rights and interests were continued. We have organized communication authorities in Guangdong, Zhejiang, Jiangsu, Shanghai, Tianjin, Sichuan, Anhui and Inner Mongolia to carry out six batches of random inspections. In total, 760,000 apps were examined, 748 apps were reported to be violating rules, and 245 apps that refused to make corrections were disposed. We have maintained high-pressure deterrent against violations.

Second, supervision of key responsibility chains was strengthened. App stores were asked to strengthen self-examination, dispose faulty apps, and check new apps. By the end of May, there were 3.02 million apps in the Chinese market, 13% down from the 3.5 million before the campaign. With these efforts, the quality of apps has improved, and we have promoted the healthy development of apps that conform to rules. At the same time, the problem-finding rate of random inspections in app stores has steadily declined. 

Third, special campaigns to address app pop-ups were carried out. One campaign focused on pop-ups which appear as an app opens and are difficult to close as well as on those which mislead users to click to another page. These two problems received the most complaints from users. In the second quarter, complaints about open screen pop-ups fell by 50% from the previous quarter. Among the top 100 most-used apps, only 1% were found to have pop-ups showing up as they open, down from 69%. Also only 12 percent of them were found to have pop-ups appearing to mislead users to click to another page, down from 90%.

Fourth, the ability of technical examination was significantly advanced. With big data, artificial intelligence and other technologies, the capability of automatic examination, monitoring and data analysis of the national app technical examination platform has improved constantly. At present, the platform can examine 150,000 apps each month, and it is expected to cover 1.8 million apps by the end of this year.

Next, the MIIT will continue to improve app governance as a specific measure to solve practical problems for the people and strengthen efforts in the following three areas. With sustained momentum and work rhythm, we will strive to create a safer, healthier and cleaner app environment for the general public. 

First, we will push ahead efforts to improve management policies and industry standards. Together with other relevant departments, we will issue the interim provisions on the protection and management of personal information on mobile apps. We are now studying and incorporating opinions and suggestions solicited from the public after the drafts went online and will issue the provisions as soon as possible. We will also make efforts to formulate and improve relevant industry standards. By doing so, we can better guarantee app governance with policies and industry standards.

Second, we will launch a campaign to improve service. The campaign will focus on several major issues, including fixing undesirable services and improving user experience for apps, and adopt effective measures to improve the quality of service in those apps. We will launch the campaign in the second half of this year and adopt strong and effective measures to improve user experience.

Third, we will conduct follow-up inspections for key issues and businesses on a timely basis while ensuring routine supervision. For companies who have been found repeatedly accessing users' address books and geographical locations illegally, we will enhance law enforcement efforts to ensure those problems won't happen again. Thank you.

Cover News:

We've noticed that auto production and sales have been declining year-on-year since May compared to the strong momentum of growth in previous months. What's your comment on this? Is the decline related to factors such as the auto chip shortage? What will MIIT do in response? What's your forecast for trends in this year's auto market? Thank you.

Tian Yulong:

Thanks for your questions. As you know, auto production and sales in China maintained steady growth in the first half of 2021, especially in new energy vehicles (NEVs), which registered rapid development. According to statistics, the production and sales of automobiles in the first half of 2021 totaled 12.57 million and 12.9 million, respectively, up by 24.2% and 25.6%, demonstrating a strong momentum of growth. The production and sales of NEVs were 1.22 million and 1.21 million, respectively, double the figures in the same period last year.

Of course, as you said, auto production and sales declined in May and June due to reasons like chip shortages and the transition of vehicle emission standards. In June, auto production and sales were 1.94 million and 2.02 million, respectively, down by 4.8% and 5.3% month-on-month as well as a decline of 16.5% and 12.4% year-on-year.

MIIT has set up a special workforce for the promotion and application of auto semiconductors to respond to the auto chip shortage. We have held several coordination meetings and formulated measures with targeted goals to bring the role of local government, auto manufacturers, and chip foundries into full play, enhance the synergy between the supply and demand side, and increase the supply of auto chips. Our efforts are gradually paying off. In the next step, we will continue to bring synergy between the supply and demand side, actively identify alternative measures to strengthen China's manufacturing capacity to contribute to the stable and healthy development of the auto industry.

Looking at the domestic and international economic situation together, we expect the auto industry to maintain steady and long-term growth, based on continuous macroeconomic recovery, the policies bolstering auto consumption, as well as other strategic goals for peak emissions and carbon neutrality. According to industry analysis, this year's auto production and sales will enjoy mild growth. NEVs, in particular, are expected to enjoy high-speed growth, with sales on course to hit 2 million. In general, the auto industry is playing its part to boost industrial and economic growth. Our goal is to maintain this steady and rapid growth. Thank you.

Red Star News:

Online mobile app stores have been notified to remove ride-hailing service app Didi Chuxing due to its serious violations of laws and regulations regarding the collection and use of personal information. In recent years, MIIT has been promoting data protection in mobile apps. Could you share with us the progress made regarding these issues in 2021, especially with the rectification of the apps in violation of users' rights? What will MIIT do next to improve data protection? Thank you.

Tian Yulong:

Thank you. Mr. Zhao Zhiguo will take your questions.

Zhao Zhiguo:

This year, we launched a special campaign and adopted a series of measures to rectify the infringement of users' rights in mobile apps. The measures have been quite effective. We have noticed that the Didi Chuxing app has been taken down from online stores. We will work with related departments, with each of us assuming our respective responsibilities, in order to rectify problems in mobile apps.

In the next step, given the current situation, we will work on the following three aspects in response to issues of wide public concern. First, we will enhance institutional development and standard-setting. Specifically, we will launch an interim regulation on the protection of personal information on mobile apps along with several other departments. The regulation is targeted toward the protection of user information and is based on opinions and common ground reached by various knowledgeable circles. This will be one of our priorities for the next step. Moreover, with more and more types of mobile apps seen in the market, we will improve standard-setting and routine testing in order to form a solid foundation for better management.

Second, we will launch a campaign to improve user experience among mobile apps. By screening apps that offer undesirable services and poor user experience, we will identify those that have received more user complaints, and further take strong, targeted, and effective measures to improve the quality of service among those apps. We believe that it is necessary to conduct such a campaign as mobile apps are used widely and are an important part of people's lives, studies, and work. 

Third, on the basis of regular supervision, we will carry out follow-up checks on the problems that occurred in the previous rectification period and establish a ledger and responsibility list system for key issues and key enterprises, especially for the recurring issues that people are most concerned about, such as accessing the address book, users' location information, among others. We will increase punishments for those who access these databases when they are not necessary for usage scenarios, as they do not meet the minimum necessary principle of access of information collection. For entities whose rectification is not in place and the implementation results are poor, we will incorporate them into our credit management based on rectification. All in all, we will make sure that the rectified problems of the apps do not rebound or repeat so that people can have a better sense of gain and security and can use all kinds of apps in a safe and clean internet environment, ideally to meet the needs of ordinary people in all aspects of life, study, and work.

Yicai:

We all know that everybody is now concerned about data security. What specific work has the MIIT implemented in data security management this year? In addition, the MIIT recently said that it will establish a sound management mechanism and technical protection system for data security protection and strictly enforce every step from the collection and storage to flow and use of data resources. Could you tell us how exactly these tools will be implemented? Thank you.

Tian Yulong:

Thank you for your questions. Please let Mr. Zhao Zhiguo answer your questions. 

Zhao Zhiguo:

Thank you for your questions. Data is one of China's basic strategic resources and features several important production factors. General Secretary Xi Jinping has emphasized that the country's data security must be effectively guaranteed. Based on its responsibilities, the MIIT has steadily promoted data security management in the information and communication industry, issued the guidelines for the construction of data security standard systems in the telecommunications and internet industries, published a number of industry standards such as the classification of online industry data and the identification of important data, launched a special campaign to improve the capabilities for protecting online industry data, issued the "Key Points of Compliance Assessment on Online Data Security of Telecom and Internet Enterprises (2020)," established a public service platform for online data security, strengthened industry data security supervision and inspection in accordance with the law, and organized 133 enterprises including Tencent and Baidu to sign data security self-discipline conventions. We have also guided enterprises to implement their main responsibilities, carried out trials and demonstrations, and strengthened the research and development, promotion, and application of key data security technologies. It is fair to say that we have undertaken a series of tasks to ensure the implementation of these key points.

Next, the MIIT will carry out work in the following areas in accordance with its responsibilities under the framework of relevant laws and mechanisms, which are: industry data security supervision, improving data security supervision capability building, and promoting the development of the data security industry.

First, we will introduce a data security management system. We will speed up the formulation of data security management policies in the industrial and information fields to better facilitate the implementation of the "Data Security Law" among industries. We will carry out related work such as the classification of industry data, the development of important data catalogs, build a standard system in the field of industry data security, and formulate important data security standards in the fields of the internet of vehicles (IoV) and the industrial internet.

Second, we will establish a data security certification system. We will organize research on the data security protection certification system and formulate assessment specifications for industry data security protection capabilities. We will establish an evaluation and certification mechanism involving industry organizations, scientific research institutions, and key enterprises to guide related certification work.

Third, we will carry out data security supervision and inspections. We will combine security assessments of basic telecommunications enterprises with "Two Randoms and One Disclose" inspections (that is, during the supervision process, the inspection objects are randomly selected, law enforcement inspectors are randomly selected, and the results of random inspections and investigation will be disclosed to the public in a timely manner) and other regulatory methods to establish and improve the industry's acceptance mechanism for complaints and reports, and urge enterprises to implement obligations of data security protection. We will establish mechanisms for monitoring and reporting industry data security situation and improve capacity building for risk information analysis, study, and handling.

Fourth, we will promote the development of the data security industry and support breakthroughs in key data security technologies through measures such as building key laboratories and innovative technology centers. We will cultivate backbone enterprises through multiple channels such as supporting the leading champion in a certain field, supporting "specialized, refined, distinctive, and innovative" small- and medium-sized enterprises, as well as integrating industry and finance. We will explore the development of disciplines related to data security and encourage colleges and enterprises to jointly cultivate data security talent.

The Paper:

Under the guidance of the carbon peak and neutrality goals, many energy-intensive industries have begun to explore green transformation. How will the MIIT guide their green transformation? What's next for directing the green development of industrial industries? Thank you.

Tian Yulong:

Thank you for your questions. Mr. Huang Libin will answer these questions.

Huang Libin:

Thank you for your questions. Industry is one of the major areas of China's energy consumption and carbon emissions. Promoting green industrial development is an active and effective measure to fulfill the promise on achieving carbon emissions peak and carbon neutrality. MIIT will soon release the Plan for Green Industrial Development during the 14th Five-Year Plan Period and the Plan for Raw Material Industry Development during the 14th Five-Year Plan Period to promote the green and low-carbon transformation of industry, especially their energy-intensive sectors, strengthen the supporting role of the green manufacturing system, and amplify emission and carbon reductions at the source and from the aspects of industrial structure, energy consumption, production process, resource utilization, and product supply, etc.

The MIIT will speed up its advance toward reaching peak carbon in the industrial sector, and work with relevant departments to formulate action plans for carbon peaking in key industries such as nonferrous metals, building materials, steel and petrochemicals. We will also clarify the path for cutting industrial carbon emissions, promote major low carbon technologies, and carry out major demonstration projects for reducing carbon emissions to encourage all industries to achieve carbon peak targets.

Next, we will focus on the following six areas:

First, we will promote the high-end transformation of the industrial structure. We will resolutely curb the blind development of high energy consumption and high emission projects, improve and strictly implement policies on replacing production capacity, close down outdated production facilities, and develop strategic emerging industries and high-tech industries.

Second, we will accelerate the transition to low-carbon energy consumption. We will increase the proportion of clean energy consumption, boost energy utilization efficiency, improve energy management and service mechanisms, and build a clean, efficient and low-carbon industrial energy structure.

Third, we will promote the transition to recycled resources utilization. We will promote the coordinated use of primary energy resources, the recycling of renewable resources, the large-scale and comprehensive utilization of industrial solid waste, and the economical use of water resources, and reduce the output of industrial solid waste and waste water.

Fourth, we will promote the transition to clean production processes. We will vigorously promote green design, encourage existing enterprises to implement cleaner production technologies, promote the use of advanced and suitable environmental protection equipment in key industries, and promote stable and efficient governance capabilities.

Fifth, we will guide the green transition of product supply. We will increase the supply of green, low-carbon products and environmentally friendly equipment, so that we can provide a solid guarantee for a green and low-carbon transition in all sectors.

Sixth, we will improve the support system for green manufacturing. We will build a green public service platform, improve the green manufacturing standard system, implement green supply chain management, and improve the long-term mechanism for green and low-carbon industrial transition. Thank you.

Shou Xiaoli:

The last two questions, please.

People's Posts and Telecommunications News:

How has the 5G situation developed in the first half of 2021? As the most innovative 5G application areas, what are the next priorities for "5G + industrial internet"? Thank you.

Tian Yulong:

Thank you for your questions. 5G is an important area that many people are paying attention to. In accordance with the decisions and deployments of the CPC Central Committee and the State Council, the MIIT has vigorously promoted the construction and development of 5G new infrastructure. With the joint efforts of all departments, local governments and industries, China's 5G industry has gradually expanded its ecosystem, become increasingly active in integrated applications, and has formed competitive systematic advantages. These include three main aspects:

First, we have maintained a leading position in 5G network construction. At present, we have built the world's largest 5G independent network. In total, 961,000 5G base stations are in operation, over 400,000 5G base stations have been jointly built and shared, and the number of 5G terminal connections has reached 365 million. Second, the advantages of the 5G industry continue to increase. Chinese companies continue to lead the world in the claiming of 5G standard essential patents, and Huawei and ZTE have more than 50% of the 5G equipment market share. Shipments of 5G cellphones in China stood at 128 million units in the first half of this year, accounting for 73.4% of the country's total cellphone shipments during the period. Third, the trend of 5G applications integrating into thousands of industries has become prominent. Since its commercialization two years ago, 5G technology has played an important role in such fields as industrial production, energy and medical services. It has also opened up a new path and provided a new engine for digital transformation in China's economy and society and development of the digital economy.

The industrial internet will be the focus of our work this year. We have relied on industrial internet innovation and development projects, focused on the 5G application industry, and worked hard on the research and development and industrialization of key system equipment. Especially in the application of "5G + industrial internet," we held on-site meetings to carry out demonstrations and promotions in key industries, key areas and advantageous regions. We have also presented typical cases to promote the application of "5G + industrial internet" and speed up the development of its integration. Therefore, a number of achievements have been made and we have gradually deepened the development of "5G + internet." At present, nearly 1,600 projects have been completed in building "5G + industrial internet," covering more than 20 key industries and fields of the national economy, which play an important role in transforming and upgrading the real economy to digital, networked and intelligent industries.

"5G plus industrial internet" will continue to be the focus of our work. We have issued two action plans: one is the "Sailing" action plan for 5G applications, and the other is the industrial internet innovation and development action plan. We will focus on four areas.

First, we will continue to strengthen the network foundation. Adhering to the principle of appropriately leading the way, we will promote the construction of 5G networks, speed up the coverage of 5G networks in key areas and industries such as factories and industrial parks, carry out trials of 5G private networks, and enhance the network supply capacity of the industry.

Second, we will strengthen industrial support. We will accelerate the development of integrated application standards for "5G plus industrial internet" in the vertical industry and continue to promote the development of customization. In particular, we will make great efforts to provide high-quality technical products in the R&D and industrialization of 5G chips, modules, terminals, and other key products and devices.

Third, we will continue to enrich integrated applications. We will carry out the construction of pilot demonstration applications for the industrial internet and pilot areas for integrated applications, continue to release the second batch of application scenarios and industrial practices, and guide local governments, based on their distinctive and competitive industries, to create a batch of industry and field benchmarks through a series of on-site meetings and further deepen integrated applications.

Fourth, we will focus on improving the 5G ecosystem. We will coordinate with other departments to create synergy and promote the innovative development of "5G plus industrial internet." We will continue to encourage local governments to provide support in areas such as 5G construction sites, electricity, and human resources. At the same time, we also encourage enterprises to keep innovating, give full play to their subjective initiatives, create synergy, make collaborative innovation, and achieve win-win cooperation so that "5G plus industrial internet" will play a leading role in the digital economy. Thank you.

The Poster News APP:

Data shows that in the first half of this year, PPI rose by an average of 5.1%, 3 percentage points higher than that in the first quarter. How does the Ministry of Industry and Information Technology view the cost pressure brought by the rise of PPI on the middle and downstream enterprises? Also, will there be further measures to help micro, small and medium-sized enterprises cope with the crisis? Thank you.

Tian Yulong:

Thanks. Mr. Huang Libin will answer your questions.

Huang Libin:

Thanks for your questions. Due to the rapid economic recovery and multiple internal and external factors, the price of raw materials has risen sharply and fluctuated at a high level since the beginning of the year. In the first half of the year, PPI rose by 5.1% on average. In the second quarter, the year-on-year increase in PPI was significantly higher, putting great pressure on the costs of middle and downstream industries and related enterprises and squeezing their profit margins. Among them, most small and medium-sized enterprises are in the middle and lower reaches of the industrial chain, and their bargaining power is not strong. Therefore, it is difficult for them to absorb the pressure of rising costs caused by the sharp rise of prices in raw materials in a short time. The impact of rising costs on the production and operation of small and medium-sized enterprises is relatively more prominent.

The reasons for recent rising commodity prices are complicated. On the whole, global demand is recovering faster than supplies, domestic demand is recovering faster than international demand, and liquidity is happening faster than the real economy is recovering. Therefore, prices increases are, to a large extent, the result of the mismatch between supply and demand, the influence of external inputs, and speculation. Judging from the later trend, unlike the "supercycle" of rising commodity prices in the 1970s and the beginning of this century, this round of prices increase is more the result of the superposition of short-term factors. Deep-seated barriers such as high global debt, polarization between the rich and the poor, and the aging population make it difficult for demand to expand over a long time, and the possibility of a significant contraction in supply is relatively small. Therefore, it is difficult to form a "supercycle."

The CPC Central Committee and the State Council attach great importance to the impact of rising raw material prices on middle and downstream industries as well as micro, small and medium-sized enterprises. The executive meeting of the State Council has made a special study on the issue of rapid commodity prices increases. Recently, it has used monetary policy tools such as lowering the reserve requirement ratio to further strengthen financial support for the real economy, especially for micro, small and medium-sized enterprises, to hedge the impact of rising commodity prices on the production and operation of those enterprises.

In the next step, we will cooperate with relevant departments to ensure the supply and price of bulk commodities; strengthen publicity and guidance and policy interpretation; support upstream and downstream industries in establishing a long-term stable cooperative relationship; guide upstream and downstream industries to stabilize the supply of raw materials and the coordination of production, supply, and marketing; coordinate to deal with the risk of market price fluctuation; and resolutely crack down on hoarding, malicious speculation, and price hiking. Thank you.

Shou Xiaoli:

Thanks to our speakers, and thank you, friends from the press. That's all for today's press conference. Goodbye.

Translated and edited by Wang Yiming, Wang Wei, Wang Qian, Liu Sitong, Yang Xi, Lin Liyao, Yuan Fang, Guo Yiming, Li Huiru, Zhang Liying, Zhang Rui, Liu Qiang, Yan Xiaoqing, Xiang Bin, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese 

Speakers:

Yao Jingyuan, special researcher of the Counselor's Office of the State Council

Xu Xianchun, professor at the School of Economics and Management at Tsinghua University, and director of China Data Center at Tsinghua University

Chairperson:

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

Date: 

July 15, 2021

Xing Huina:

Friends from the media, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). This morning, the SCIO held a press conference to brief you on China's economic performance in the first half of 2021, which attracted a lot of media attention. In order to help you gain a deeper understanding of the national economy, we are joined by two experts today who will give you an in-depth interpretation of the economic situation in the first half of this year.

Let me first introduce the two experts: Mr. Yao Jingyuan, special researcher of the Counselor's Office of the State Council, and Mr. Xu Xianchun, professor at the School of Economics and Management at Tsinghua University and director of China Data Center at Tsinghua University.

In today's briefing, we have invited the two experts to briefly introduce their interpretations of the economic situation in the first half of the year, and then take your questions. 

Yao Jingyuan:

In the first half of the year, seeking progress while maintaining a stable performance has been an effective method in carrying out economic work. We can clearly see that the national economy in the first half of the year has continued its stable and sound performance. We can understand the situation from the following aspects:

First, the fundamental of the economic work lies in people's livelihoods. Therefore, whether the economy is performing well is first reflected in changes to people's livelihoods. With people's livelihoods as the priority, employment is the cornerstone of their wellbeing. In the first half of this year, 6.98 million new urban jobs were created in China, accounting for 63.5% of the annual target. I think this has been a very important achievement.

Second, the fundamental criterion of economic performance is economic benefits. How should we understand it? We often look at three sources of money: the corporate profits of companies; fiscal revenue of the government; and the income of urban and rural residents of ordinary people. First, let me talk about corporate profits. From January to May, the profits of industrial enterprises above designated size increased by 83.4% year on year, and the profits of service industry enterprises above designated size increased by 1.5 times year on year, which is a high point in recent years. The government's source of money is fiscal revenue. Under the circumstances when we cut taxes and fees substantially, government fiscal revenue in the first half of this year still increased by over 20% year on year. Third, the growth in income of urban and rural residents basically kept pace with that of the national economy. Another important point is that the per capita disposable income of rural residents continues to rise faster than that of urban residents. Therefore, an important result of economic growth in the first half of this year is that the income gap between urban and rural residents has narrowed, which is in line with the new development concept.

Furthermore, China's economic structure and growth model were optimized in the first half of the year. For example, the tertiary industry accounted for 53% of the entire national economy, and consumer spending contributed 61.7% to overall economic growth. The proportion of China's industry, especially the manufacturing industry, has been declining in recent years. The outline of the 14th Five-Year Plan (2021-2015) clearly states that we must stabilize the proportion of manufacturing during the 14th Five-Year Plan period. Looking at the figure now, the proportion of manufacturing in the first half of the year increased by 1.6 percentage points compared with the same period last year, which is a very positive sign. The industrial structure has also been optimized. For example, the output of new energy vehicles has increased by more than 200%, industrial robots nearly 70%, and integrated circuits nearly 50%. Therefore, the industrial structure is optimizing, indicating that innovation is increasingly becoming an internal driving force of economic development. Another important thing is that energy consumption per unit of GDP fell in the first half of the year, which I think is not an easy achievement. Promoting peak emissions, carbon neutrality and green development have been hot topics. Energy consumption per unit of GDP fell by 2% in the first half of this year.

Indeed, despite so many major achievements in the first half of the year, there are still some problems. These problems are reflected more in terms of the structure, such as employment. I just talked about employment. We completed 63.5% of the annual target for new urban employment in the first half of the year. However, from a structural point of view, there are difficulties for college students in finding jobs. We must pay attention to this structural problem. In the second half of the year, we should develop solid policies to help college students find jobs. Another structural problem is that although the profit growth rate of industrial enterprises above designated size was not low, reaching 83.4%, the profits were made more in upstream industries, such as steel, coal, nonferrous metals, chemicals and petroleum, which is related to the rise of raw material prices in the upstream industries. In addition, from the perspective of the overall economic operations in the first half of the year, consumption should be further increased in the second half of the year so that it plays a greater role in economic growth. Looking forward to the second half of the year, I think that the main targets for China's economy set out at the beginning of the year can be successfully achieved. That is all from me for now.

Xing Huina:

Thank you, Mr. Yao Jingyuan. Next, I will give the floor to Mr. Xu Xianchun.

Xu Xianchun:

Thank you, Chairperson. Journalists, good afternoon.

It is a great pleasure and a privilege to attend this briefing and exchange my views with you. Just now, Mr. Yao shared his view on the economic situation in the first half of 2021 and the structural problems in the economy. I would like to talk about some features of the economic situation in the first half of the year from two perspectives: production and demand.

In terms of production, I would like to focus on four features. First, gross domestic product (GDP) grew faster in the first half of 2021 than it did over the same period last year, showing the momentum of continued economic recovery. According to data released by the NBS at the press conference this morning, in the first half of the year, China's GDP expanded 12.7% year-on-year. The figure puts average H1 growth for the past two years at 5.3%, a 0.3 percentage point faster than the two-year average of Q1 growth from the 2019 level. This shows that China's economic recovery continues to consolidate.

Second, the value added of the secondary industry increased faster than that of the primary and tertiary industries, which significantly powered economic growth. In the first half of 2021, the value added of the secondary industry went up 14.8% year-on-year, while the average H1 growth for the past two years stood at 6.1%. Both figures were higher than those of the primary and tertiary industries, supporting economic growth significantly in the first half of the year.

Third, the tertiary industry became the main driver of and biggest contributor to economic growth. In the first half of 2021, the value added of the tertiary industry went up 11.8% year-on-year. The figure puts the average growth for the first halves of the past two years at 4.9%. The value added of the tertiary industry accounted for 55.7% of GDP and contributed 53% of economic growth. According to my calculation, the tertiary industry drove economic growth up by 6.7 percentage points in the first half of the year – that is to say, the tertiary industry contributed to 6.7 percentage points of the 12.7% economic growth of the first half of the year.

Fourth, the secondary industry recovered relatively quickly, while the tertiary industry recovered relatively slowly in the first half of 2021. The average H1 growth for the past two years of the value added of the secondary industry stood at 6.1%, 1.1 percentage points higher than the two-year average of first-half growth from the 2019 level before COVID-19, which indicates a relatively fast recovery. In contrast, the average growth for the first halves of the past two years of the value added of the tertiary industry stood at 4.9%, 2.3 percentage points lower than the two-year average of H1 growth from the 2019 level, showing a slower recovery. In short, I think these are the four features, in terms of production, that deserve attention.

In terms of demand, I would like to focus on the following three features. First, there are three demands jointly driving economic growth, with consumer demand being the primary engine. In the first half of 2021, consumer demand contributed 61.7% to economic growth, and drove economic growth up by 7.8 percentage points – that is to say, consumer demand contributed to 7.8 percentage points of the 12.7% economic growth of the first half of the year. These figures contrast sharply with those of the same period last year. In the first quarter and first half of 2020, the economic growth was driven down by low consumer demand.

Second, the recovery of investment demand continues to consolidate and plays an important role in driving the economic growth. In the first half of 2021, investment demand contributed 19.2% toeconomic growth, and drove economic growth up by 2.4 percentage points.

Third, net export demand has shown a good performance, driving economic growth effectively. In the first half of 2021, net export demand contributed 19.1% to economic growth, and drove economic growth up by 2.4 percentage points.

To summarize, all the above are features of China's economic performance in the first half of this year in terms of production and demand. Thank you.

Xing Huina:

Thanks to the two speakers for their brief and clear explanations. Now, the floor is open for questions. Friends from the media, please state the news outlet you belong to and then ask your questions.

The Beijing News:

My question is for Mr. Yao. You mentioned just now that greater efforts will be made to promote consumption in the second half of this year, so that it will contribute to economic growth. Do you have any suggestions to make this work? Moreover, talking about foreign trade, as the COVID-19 pandemic gradually comes under control abroad, what are your thoughts regarding the trend of China's foreign trade? Thank you. 

Yao Jingyuan:

It is important to ensure China's economic growth is more reliant on domestic demand instead of exports when it comes to transforming economic growth patterns. What is domestic demand? It is composed of two aspects — investment and consumption. We used to depend on investment to stimulate domestic demand. However, we need to ensure consumption's leading role in the "three-horse troika" pulling the economy ahead. The Central Economic Work Conference has identified the specific roles that investment, export and consumption will play in boosting economic development. In terms of consumption, the conference considers it as the foundation, emphasizing its importance in leveraging the fundamental role of consumption in promoting economic growth. We are building a new development paradigm in which domestic circulation will play the primary role, and domestic and international circulations will reinforce each other. But why do we need to build such a new paradigm? In terms of domestic circulation, the largest strength of the Chinese economy lies in its vast domestic market. China, with its population of 1.4 billion, has realized a moderately prosperous society in all respects, with around 400 million people classed in the middle-income category, which is equal to the combined populations of the United States and Japan. The principal contradiction facing the Chinese economy has evolved to exist between unbalanced and inadequate development and the people's ever-growing needs for a better life. Given this, we need to focus on China's second centenary goal, and meet people's needs for a better life, as this is the most powerful internal driving force for China's economic growth. 

Obviously, the largest strength of the Chinese economy lies in its huge domestic market and great potential for domestic demand. General Secretary Xi Jinping has said that the ultimate goal for advancing economic development is to meet people's needs for a better life. In this regard, consumption should play its fundamental role in boosting economic growth while China is striving toward its second centenary goal.

Talking about consumption, we all know that it was the hardest hit area by the pandemic last year. In the first quarter of 2010, China's total retail sales of social consumer goods dropped 19% year on year. A fall of 19% was the slowest growth rate in six decades. Human contact is necessary when it comes to consumption activities, but due to the quarantine measures adopted to address the pandemic, consumption was seriously affected last year. During the recovery later on, we put our focus on the resumption of work and production. In addition, we also managed to reopen businesses. The positive role of consumption in boosting economic growth did not completely resume last year. In the first quarter of this year, consumption remained weak, but in the second quarter, its contribution to economic growth improved. These represent China's huge consumption potential.

In terms of China's future economic development, why can we achieve economic upgrading and transformation? Consumption is vital to achieving the second centenary goal. How can consumption be promoted? I think reform is the solution. To expand consumption, the ultimate solution is to increase people's incomes. In the first half of this year, China's per capita disposable income increased basically in line with the growth in GDP, which is also one of the targets of the 14th Five-Year Plan. I think it is important to further increase the incomes of urban and rural residents through reforms. For example, the Fifth Plenary Session of the 19th CPC Central Committee formulated that we will raise the proportion of labor remuneration in the primary distribution. We used to pursue high-speed growth under the past growth pattern, which is why capital and land played more important roles in promoting economic growth. Therefore, in the primary distribution, we prioritized capital and land, and the proportion of labor was relatively low when it came to labor. In this case, we need to tackle this problem through reforms.

Moreover, since we are building a complete domestic circulation market, instead of a closed internal loop, I think we should eliminate regulations that are hampering consumption activities. I think China has great consumption potential, and I'd like to use an example to illustrate why. Take the production of automobiles as an example, which was also talked about during the press conference this morning. In 1978, China's total auto production was 150,000. Now, that number has surpassed 20 million thanks to four decades of rapid development. There have been some problems facing us in terms of production and sales over the past two months, about which some people are concerned. There is still a gap in car ownership per 1,000 people between China and developed countries. The U.S. has more than 800 cars per 1,000 people, and Japan has around 600, while China's current level is about 200. As such, there is huge potential in the Chinese market. Given this, we need to make concrete efforts in the future to expand consumption. Thank you. 

CCTV:

We learnt from this morning's press conference that the service sector continued to recover in the first half of this year. What's your opinion on the role of service sector in the overall economic recovery? Since the start of the pandemic, modern service industry, including information transmission, software and information technology services, have demonstrated favorable momentum, but the growth rate of added value of some parts of the service sector has been relatively low. How would you evaluate that? Thank you.

Xu Xianchun:

Thank you! The National Bureau of Statistics (NBS) released the statistics of the national economy for the first half of the year this morning. During the first half of this year, the tertiary industry increased by 11.8% year-on-year, with an average two-year growth of 4.9%. This was lower than the secondary industry, as the secondary industry increased by 14.8% year-on-year, with an average two-year growth of 6.1%. However, the total added value of the tertiary industry accounts for a relatively high proportion of GDP, which was 55.7% in the first half of the year, and its contribution to economic growth reached 53%. So, it plays a vital role in stimulating the economic growth. 

The growth of added value of the tertiary industry was polarized in the first half of the year. The growth rate of modern service industry was relatively fast. Specifically, the added value of information transmission, software and information technology services increased by 20.3% year-on-year, with an average two-year growth of 17%. In the first five months of the year, the total profits of large high-tech services businesses went up by 27.4% year-on-year, with an average two-year growth of 12.5%, 4.2 percentage points higher than that of large services businesses as a whole. At the same time some parts of the service sector had lower growth rates in added value, such as wholesale and retail trades. The average two-year growth was relatively low, which is significantly lower than the growth rate in the same period in 2019 before COVID-19 outbreak. The contact services sector, such as accommodation, catering, rental and business services, was more severely affected by the epidemic and still grew negatively on average over this two-year period. In short, during the first half of the year, the growth of added value in the service sector was polarized. The growth rate of modern service industry was relatively fast, while the growth rates of contact type and traditional services were relatively low, with some still witnessing negative growth.

In fact, modern service industry has been demonstrating favorable momentum in recent years. For example, from 2017 to 2019, the added value of information transmission, software and information technology services grew at an average annual rate of about 23%. We know that the economic growth rate has fallen back during this period. China's GDP increased 6.9%, 6.7% and 6% respectively in 2017, 2018, 2019. The added value of information transmission, software and information technology services maintained a growth rate of more than 20%, which played an important role in slowing down the decline in economic growth. Hobbled by the coronavirus, China's GDP shrank 6.8% in the first three months of 2020. Under these circumstances, information transmission, software and information technology services rose by 13.2% against the tide and bucked the trend during the epidemic, contributing 0.6 percentage point to the GDP growth. If there was no 13.2% growth in information transmission, software and information technology services, the GDP decline would not be 6.8%. If this sector had also grown negatively, the decline in GDP would have been even greater. The added value of information transmission, software and information technology services maintained rapid growth in the second quarter, the third quarter and the fourth quarter. They were up by 15.7%, 18.8% and 19.7% respectively. The increasing quarter-on-quarter trend played an important role in the quarterly recovery of economic growth.

Therefore, the modern service industry has played an crucial role in stimulating economic growth, inhibiting the declining economic growth rates in previous years, slowing down the economic decline in the first quarter of last year, and making contributions to resuming economic growth in the following three quarters of 2020. With the rapid development of information technology, I believe that the modern service industry will maintain a relatively rapid growth, and will be a vital driving force for China's economic growth in the future. Thank you!

The New York Times:

I have two questions. First, in the past decade, we have never seen such a huge difference between nominal GDP growth and real GDP growth as during this year. What's the reason behind the difference, and does it indicate severe inflation? Second, how can retail sales maintain a relatively high growth when auto sales are so weak? Thank you.

Xu Xianchun:

For your first question, I think it's normal to see an obvious difference between nominal GDP growth and real GDP growth in the first half of this year. As we know, China's PPI registered a high growth, as the index is greatly affected by international bulk commodity prices. Our study suggested that China's PPI is closely related to PPI of OECD countries and international bulk commodity prices. The rise in international bulk commodity prices has pushed up China's PPI. Since the value-added of industry accounts for more than 30% of GDP, the increase in PPI is bound to create a difference between nominal GDP growth and real GDP growth. The CPI grew by only 0.5% in the first half of the year, while the growth of PPI was relatively high. A rise in PPI will drive up the GDP deflator. That's my answer to the first question.

Yao Jingyuan:

Automobiles are not the most important part of China's consumption. From the perspective of the Engel's coefficient, food accounts for 30% of household spending in China. Therefore, food is the most important part of China's consumption, as it constitutes the largest bit of people's basic expenses. Generally, to assess China's overall consumption situation, including the trend of CPI, we need to focus on changes in the food sector. 

Red Star News:

My questions involve two issues. The first is pork prices. According to the press conference this morning, pork prices in China went down by 19.3%. Will the decline cause the prices to be lower than the cost of pig breeding? What's the reason behind the downward trend? What measures should be taken if the prices further drop? Will the country's purchase and storage policies effectively keep the market stable? Second, in the first half of the year, China's PPI went up by 5.1% year-on-year. What's the reason behind the increase? Will this increase lead to higher industrial costs and losses for industrial enterprises? What impact will a high PPI and a low CPI have on the national economy? Will it cause ripple effects to consumer prices? Thank you.

Yao Jingyuan:

Both issues are of great concern to the people. There is an economic law called the cobweb theory. To put it simply, the theory means that the current output of a product determines its current price, which in turn determines its output in the next period. When the current output of a product is large, its price will fall, and so will its output in the next period. The decrease in output will in turn lead to an increasing price.

There has already been much research worldwide about cobweb theory and its application for agricultural products. Over the past decade, we have accumulated numerous positive experience. In the beginning of 2018, there was a rebound in pork prices. According to my research in 2019, each pig can make a profit of 2,000 yuan, and profits can reach 20 million yuan when raising 10,000 hogs. Pork prices have now risen to 80 yuan per kilogram, and the public complains. This is mainly due to the decrease in the supply of pigs, i.e., the number of pigs available for slaughter. In 2019 and 2020, there was a drop in the number of pigs available for slaughter — down by almost a third — resulting in a rise in pork prices. Therefore, people increased their spending on raising pigs, and the number of pigs available for slaughter rose. There were also some other factors in 2019 that affected prices, for example, swine flu. Over the past two years, we have witnessed a rapid recovery in the number of pigs available for slaughter and growing piglet replenishment. At the end of June, pig stocks numbered 439.11 million, recovering to historically normal levels. So pork prices began to decrease. From June to August, the summer months, the decline in meat consumption leads to a drop in pork prices. 

You asked about whether the pork prices dropped to the cost price. Indeed, individual pig farmers have already sold pigs at below-cost prices, while large-scale pig breeding farms continue to make profits. We usually take several measures to stabilize pork prices. Besides increasing pig imports, we now put more effort into expanding government reserve purchases. We have already summarized many helpful experiences, and the National Development and Reform Commission is actively working on implementing these measures. Now, pork prices have dropped too sharply. People living in urban areas hope to purchase pork at the lowest possible price. But for farmers and the pig breeding industry, we need to stabilize prices. So the government has taken measures to purchase pork as part of its effort to stabilize the market and prices. In the next round, when the pork prices go up, the government will sell the pork from state reserves at a lower price in a bid to moderate pork prices. We have now accumulated much more experience and this will not be a matter of concern. 

As to your second question, the price of upstream raw materials has now risen. China's producer price index (PPI) increased 8.8% year on year in June, the highest level seen over the past few years. Increasing prices in upstream raw materials are due to loose fiscal and monetary policies that the U.S. and some countries have taken. So there has been a rise in the prices of bulk raw materials in the international market, such as oil, steel, and non-ferrous metals. Raw materials have also witnessed rising prices in the international market. China is the world's biggest bulk commodity importer, and the rising prices of raw materials in the international market will surely affect the domestic market through imports. In the domestic market, the downstream manufacturing companies will be most pressured, which will require us to pay more attention to prices in the second half of this year. The rising prices of upstream raw materials such as oil, coal, steel, non-ferrous metals, and chemicals will definitely influence downstream companies, and that's exactly what sparks concerns. 

I see that people are worried about how changes in the PPI may affect the CPI (consumer price index), which may eventually lead to growing inflation. I don't think this is a major issue. What concerns us most is that if manufacturing companies find difficulty in moving out and the prices of upstream raw materials can not be stabilized, these companies will face additional difficulties and challenges. I also believe that manufacturers should turn the pressure resulting from soaring prices of upstream raw materials and power resources into driving forces for the innovation and technological advances in companies. However, boosting the capacity for innovation, technological advances, and management doesn't happen overnight. So what measures should we take? In accordance with the deployment and decisions of the CPC Central Committee and the State Council, we will strengthen work to ensure supplies and stabilize the prices of major upstream raw materials and power resources. There is no problem with that, and it is not a matter of concern. According to the guiding principles, since we are committed to peaking carbon emissions and achieving carbon neutrality, to some extent, we don't support expanding steel production. However, once we lift restrictions, there will be a rise in steel production, as well as in coal. Coal prices have recently increased, but prices will stabilize as long as we encourage production and expand production while ensuring supply. We have confidence in our production capacity, and prices will stabilize. China's PPI increased 8.8% year on year in June, down by 0.2 percentage point from May, which is a hard-won achievement. I'm confident that we will stabilize prices in upstream raw materials and maintain a stable trend in the second half of this year. I know many people are worried about inflation. The CPI may edge up during the second half of the year, especially in September, when there is increased meat consumption during the Mid-Autumn Festival and National Day holiday. Even so, CPI growth is expected to stay below 3% throughout the whole year. I suggest that we should now place more focus on easing manufacturing companies' difficulties. 

Global Times:

I have two questions. The first question is: the data released this morning shows that China's economic growth rate in the first half of the year reached 12.7% — how do you view this level of economic growth compared to the rest of the world? What do you predict for the whole year? My second question is: Mr. Yao just mentioned the goal of building a moderately prosperous society and the second centenary goal. It took China only 40 years from proposing to build a moderately prosperous society to finishing building a moderately prosperous society in all aspects, so I would like to know, what do you think of China's economic achievements over the past 40 years? Do you think China can continue to create such an economic miracle or achieve higher levels of growth on its path toward its second centenary goal? Thank you.

Xu Xianchun:

Thank you for your questions! Regarding your question of how to evaluate the 12.7% economic growth in the first half of the year in comparison to the rest of the world, here is my answer: the period most severely hit by the COVID-19 epidemic in China was the first quarter of last year, and it also affected the first half of last year, so the base number for the same period last year was low, and the 12.7% growth rate in the first half of this year appears to be relatively high. The epidemic has hit different countries at different times, so it is not easy to compare them directly. If you want to compare, I think it might be better to use the two-year average growth data proposed by the NBS. Why do I say this? We know that year-on-year growth has a base number issue. Although year-on-year growth also reflects the actual situation and is illuminating, it is a longitudinal comparison. If comparing the year-on-year growth rates between two quarters, an issue will arise as to whether the two base figures are comparable. For example, when the NBS releases the value-added of industrial enterprises above the designated size and the total retail sales of consumer goods, it often combines January and February figures. Why? Because in some years, the Lunar New Year occurred in January and others, February. If we compare two years back to back and the Lunar New Year period does not happen in the same calendar month, differences in the base numbers will be significant. The NBS puts these two months together in order to reduce the impact of incomparable base figures.

We know that the impact of the COVID-19 epidemic on economic growth in each quarter of last year was different. Since the impact in the first quarter of last year was the greatest, the economy grew 18.3% year-on-year in the first quarter of this year, which was actually due to the 6.8% drop during the same period last year. In the second quarter of last year, the growth rate returned to 3.2%, a rebound of 10 percentage points. Therefore, last year's base figures for the two quarters are completely different. One had a decrease of 6.8%, and the other had an increase of 3.2%. If the base numbers were not built on a comparable basis, the data will be incomparable. The NBS used 2019, which was not affected by the epidemic, as the base period for comparison and conducts two-year average figures. When the base numbers are comparable, the growth rates can be comparable. In the first quarter, GDP's two-year average growth rate was 5%, and in the second quarter, it was 5.5%, an increase of 0.5 percentage point. This is comparable.

I believe the next step of economic growth will also be affected by the base number. For example, the economic growth in the third quarter of last year was 4.9%, an increase of 1.7 percentage points from the second quarter, but still lower than the growth for a normal year. That is to say, it was lower than the potential economic growth. Therefore, economic growth in the third quarter of this year is still based on a relatively low base and is likely to remain relatively high. Of course, there are many other uncertain factors, such as how the pandemic plays out overseas. China's current export situation is relatively good. An important reason is that there is a gap in supply and demand overseas due to the impact of the pandemic. China can make up for this gap because of the better control of the epidemic. After the pandemic situation improves, if overseas production resumes, this supply-demand gap may narrow, and China's exports may decrease. Taking these factors into consideration, I project that the economic growth rate in the third quarter will still be relatively fast, but it will definitely be lower than that in the second quarter of this year. The economy grew by 6.5% in the fourth quarter of last year, exceeding the growth rate in the same period in 2019. So I estimate the growth rate in the fourth quarter this year may continue to decrease. This year, GDP growth will likely decline from quarter to quarter, but the annual growth rate will still remain relatively high, and will definitely exceed the economic growth rate of recent years.

I have preliminarily calculated that the 12.7% economic growth in the first half of the year will drive the annual economic growth by about 5.7 percentage points. Therefore, even if the economic growth rate declines in the second half of the year, I think it will still drive the annual economic growth by about 3 percentage point. The annual economic growth may be between 8.5-9%. Of course, this is entirely my personal prediction. I have also seen relevant international organizations such as the World Bank (WB), the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), and the Asian Development Bank (ADB) estimate that China's economic growth rate will exceed 8% in 2021. Some domestic institutions may have higher estimates. However, this is no cause for thinking that China's current economic growth is too high because this growth rate is based on a relatively low base figure from last year. If we remove the base figure factor, the two-year average growth rate is not really high. This is an estimate for this year's economic growth. It is entirely a personal estimate and is for reference only. Please correct me if I am wrong. Thank you!

Yao Jingyuan: 

Your second question is about China's economic development. Over the last 40 years, in 1978, China's economy totaled 367.9 billion yuan, while last year the figure stood at 101 trillion yuan. Judging from this, I agree with you that China's economy has created a miracle over the past four decades. I once served in the National Bureau of Statistics (NBS), and to be honest, I was often asked whether the statistics were accurate. I gave them an accurate and undoubted indicator as an answer, which is the country's foreign exchange reserves.

I don't know if you are aware of this, China's foreign exchange reserves in 1978 were less than $200 million. While I was learning the history of the Communist Party of China some time ago, I read a story about Comrade Deng Xiaoping and his visit to France in 1975. The day before he returned to China, he recalled a small cafe in Paris where he had a cup of coffee during his work and studies in France. After he told the story, a staff member found the cafe was still there. Deng Xiaoping drank the coffee of that cafe again and mentioned that the French bread tasted good. At this time, someone suggested that before returning to China, he should buy some bread to take back as a small gift, but Comrade Deng Xiaoping said that it would cost foreign currency to buy bread. Even Comrade Deng Xiaoping had to worry about the foreign exchange when buying bread abroad at that time, but who needs to be concerned about it now? The latest data shows that as of June 30, China's foreign exchange reserves had reached $3,214 billion, a figure that can't be falsified. In the past 40 years, the country's foreign exchange reserves have increased tremendously from $200 million to $3,214 billion. Therefore, I think it's appropriate to describe China's economy in the past four decades as a miracle. 

We have achieved the first centenary goal and are now marching towards the second, which will take about 30 years to fulfill. The 30 years are divided into two phases, with each one lasting 15 years. Our goal by 2035 (after the first 15 years) is to basically realize socialist modernization. As I said some time ago, the simplest but multifaceted way to view socialist modernization is to focus on the main economic indicators like the economic aggregate. In the next 15 years, by 2035, our total economy is expected to double to more than 200 trillion yuan, based on the 101 trillion yuan last year. Our per capita GDP is $10,000 now, and doubling it means an increase to $20,000. Another important indicator is the market scale. The total retail sales of consumer goods last year registered 39 trillion yuan, and doubling it means a rise to about 80 trillion yuan. If we are to double the main indicators in the next 15 years, an economic growth rate of 4.72% or 4.73% is enough. 

To achieve the second centenary goal, the principal contradiction won't lie in speed. Mr. Xu said just now that China can achieve an economic growth rate of 8% this year. I think the growth rate could be lowered a bit during the 15th and 16th Five-Year Plan periods (2026-2030 and 2031-2035), as this will help us concentrate more on the quality of economic growth. While we were making efforts to fulfill the first centenary goal in the past four decades, we created a miracle more in terms of the growth speed. At that time, we had yet to eliminate poverty and meet the basic needs of the people, hence we needed to achieve an extraordinary economic growth rate. But from now on, as we are striving to realize the second centenary goal, we should create a miracle in growth quality, namely the high-quality development. Judging from the economic data of the first half of this year, I believe the miracle in the future will be made in high quality development. For example, we should take innovation as the fundamental driving force. Future development should be green by achieving peak carbon emissions and carbon neutrality; it should be coordinated across the eastern, central and western regions, between urban and rural areas, and among various industries; and it should be more open and shared by all to ensure that each and every one of our 1.4 billion people can fully enjoy the benefits of development. Therefore, in this respect, I quite agree with you that when we achieve the second centenary goal, China's economy will still be a miracle. However, this miracle will be different from that of the past 40 years, as the past one was more about quantity and speed and the new one will be reflected in quality. Thank you.

Hong Kong Economic Herald: 

The World Bank expects China's economy to grow by 5.4% next year, returning to its long-term trend before the COVID-19 epidemic. Mr. Yao and Mr. Xu, how do you see China's economic forecast next year? Thank you.

Xu Xianchun: 

The World Bank predicted that China's economy will grow by 5.4% next year. The World Bank is an important international institution, its forecasts are closely watched, and we often follow its predictions as well. Nonetheless, its forecasts are often revised. When the NBS issues new data, the World Bank may adjust its projections. 

How should the World Bank's prediction of 5.4% economic growth in 2022 be viewed? I agree with Mr. Yao's comments just now that China will not maintain a very high growth rate as China's GDP gradually increases. For example, China's GDP was around 10 trillion yuan in 2000, while the number exceeded the 100 trillion yuan threshold in 2020, which is 10 times higher than 20 years ago, or more than six times that in 2000 when the price factor is excluded. What does this mean? It means that one percentage point increase now is equivalent to growth of six percentage points in 2000. Therefore, we cannot count on GDP continuing at such a high speed. The CPC Central Committee and the State Council have attached high importance to high-quality economic growth, and China is shifting from high-speed growth to high-quality development. We need a certain growth rate as development is the foundation for and the key to addressing almost every problem. Economic growth is an important part of development, but instead of blindly pursuing growth rate we need high-quality development.

Looking back over the previous economic growth data: China's economic growth rate reached a peak of 14.2% in 2007; the figure was 10.6% in 2010, 6% in 2019 and last year saw a 2.3% growth due to the pandemic. Obviously, China's growth rate is gradually dropping, which I believe is quite normal. China's economy has expanded remarkably after a long period of acceleration, and one percentage point growth now is not the same as it was before. In addition, we are pursuing high-quality development. I think China's potential growth rate is between 5.5% and 6%, and it is normal for our GDP to be within this range. Over time, economic growth may decrease, but we should not be surprised at this and should be confident in achieving our future targets as long as the data is controlled within a reasonable range and we adhere to high-quality development. Thank you.

Yao Jingyuan:

I'd like to add something. I have an example to explain that different economic phases should match with different growth rates: My family welcomed in a baby granddaughter, weighing 3 kg. After a month she had reached 4.5 kg, which the doctor said was normal. However, I questioned that figure because she is just a baby and gained 50% of her weight in a single month. If we as adults, gained 50% of our weight in one month, then we should definitely go see a doctor. As such, we should understand that different growth stages face different health indexes. What Mr. Xu Xianchun said just now is quite clear: that it was reasonable to reach a high-speed growth rate in the past as we faced problems such as poverty, and a lack of food and clothing. Now we have realized our first centenary goal and are marching toward the second centenary goal, amid which China's economy has shifted from high-growth to high-quality development. Just like my granddaughter is growing up and we need to pay more attention to her studies and her ethics and morals. So, I want to say that we shouldn't be too sensitive about the speed of economic growth, whether it is an average of 4.7% in the coming 15 years, exceeds 6% or even drops below 4% in certain years. In general, the quality of growth will determine whether we can reach our second centenary goal.

Xing Huina:

One hour has now passed, but we still have two journalists with their hands raised. We'll spend the last 10 minutes to give each journalist the opportunity to ask their questions.

Cover News:

My question is on CPI. The data released this morning shows that CPI is up 0.5% year on year, lower than the inflation-control target of 3% this year. So, which are the main control policies that have taken effect? What are your predictions for the CPI trend for the whole year? And do you believe that inflation will not be a main contradiction for China's economic performance this year? Thank you.

Yao Jingyuan:

China's Consumer Price Index (CPI) rose 1.1% year-on-year in June and 0.5% year-on-year in the first half of 2021. The CPI's moderate rise can still be attributed to the intensified efforts on supply-side structural reform. How can we keep the rise of the CPI under control? Food prices account for 30% of the CPI, which is the biggest component. To ensure the stability of food prices, the prices of pork are of utmost importance. We have attached great importance to pork prices since 2019. Governments at all levels have introduced favorable policies on land use for hog production, tax reduction and exemption, and encouragement of large-scale hog breeding, to name a few of them. As of the end of June, the number of pigs available for slaughter increased to 439.11 million, returning to the historically normal level. The supplies have thus been increased. Thanks to the supply-side structural reform, the CPI can be kept stable.

In terms of the CPI, if problems emerge in the overall market sales, then they are also related with structural issues. The principal contradiction facing Chinese society has evolved and is now that between the people's ever-growing needs for a better life and unbalanced and inadequate development. The supply of things to meet the people's needs for a better life is insufficient. For example, we all need green products, but the supply is far from sufficient.

Regarding the trend of the CPI in the second half of this year, I believe that it is likely to rebound especially in September. Due to the consumption peak brought about by the Mid-Autumn Festival and the National Day holiday as well as the consolidated progress of epidemic prevention and control, consumption and demand in September will increase, which may lead to a rise in prices. At the beginning of this year, China's CPI was set to rise no more than 3% year-on-year. There shouldn't be any problems accomplishing this target. However, we should also be aware that the rise in raw material prices will lead to the rise of the CPI; that the rise of oil prices will result in the rise of chemicals prices; and that the rise of fertilizer prices will cause the rise of food prices. People are concerned about a series of problems like these. The measures we take currently to ensure the supply of commodities and keep their prices stable have been rather effective. Therefore, although the CPI may rise for one or two months in the second half of 2021, I believe that its rise can be kept within 3% throughout this year. 

Xing Huina:

We will have the last question.

China Youth Daily:

My question is about employment. In the first half of 2021, China achieved 63.5% of its annual target of creating new urban jobs. Still, the employment pressure remains relatively high in the second half of this year, as there are 9.09 million new graduates from universities and colleges. The surveyed unemployment rate among those aged between 16 and 24 also stood at around 15%. How can we cope with such employment pressure in the second half of 2021? Thank you.

Yao Jingyuan:

In the first half of this year, China achieved 63.5% of its annual target of creating new urban jobs, but the employment of college graduates is indeed a big issue. This year, there are 9.09 million new graduates from China's universities and colleges, which is a record high. The figure last year was 8.74 million. Due to the impact of the pandemic, the employment of some graduates was delayed to this year. Thus, we also need to address the employment issue of some of last year's graduates. In addition, if there weren't the pandemic, hundreds of thousands of graduates would pursue further study overseas. But this figure also plummeted now. At the end of last year, I suggested that more graduate students be enrolled so as to provide opportunities and conditions for their further study. This year, the total number of the employment supply is unprecedented. As the graduation season is underway, I suggest Party committees and governments at all levels attach great importance to the employment of graduates and spare no efforts to create jobs. Flexible employment is an excellent measure as it provides sufficient choices for every young person. Flexible employment requires further policy support, such as the social security, so that young people in this sector can feel reassured when chasing their dreams. Measures should be taken to allow every graduate to land their ideal jobs and a satisfactory salary. 

You've raised a very important question, and this should be a major task for Party committees and governments at all levels in the second half of this year. Currently, the CPC Central Committee and the State Council has attached great importance to the issue. I believe the next six months will see solid and effective results.

Xing Huina:

Today's briefing is hereby concluded. I thank the two experts for their excellent explanations, which I believe is of great help for all the friends from the media. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Li Xiao, Zhang Rui, Gong Yingchun, Li Huiru, Wang Mengru, Huang Shan, Zhang Liying, Zhang Junmian, Cui Can, He Shan, Yuan Fang, Xu Xiaoxuan, Wang Zhiyong, Zhu Bochen, Zhang Tingting, Liu Qiang, David Ball, Jay Birbeck, and Tom Arnstein. 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:

Liu Aihua, spokesperson of the National Bureau of Statistics (NBS), director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

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

Date:

July 15, 2021

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). We are joined by Ms. Liu Aihua, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS. Ms. Liu will first introduce the details concerning China's economic performance in the first half of 2021 and then answer your questions. 

Now, let's give the floor to Ms. Liu.

Liu Aihua:

Good morning, I'll start by briefing you all on China's economic performance in the first half of this year and then take your questions.

In the first half of the year, the steady and sound growth momentum of the national economy was further consolidated. In the first half of this year, faced with a complicated and changing environment both at home and abroad, under the strong leadership of the CPC Central Committee 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, continued to consolidate the achievements made in the epidemic prevention and control and the economic and social development, and implemented accurate macro policies. China's economy sustained a steady recovery with both production and demand picking up, employment and prices remaining stable, new driving forces beginning to quickly thrive, quality and efficiency enhancing, market expectations improving and major macro indicators staying within a reasonable range. The steady and sound growth momentum of the national economy was further consolidated.

According to the preliminary estimates, the gross domestic product (GDP) of China in the first half of the year was 53.22 trillion yuan, a year-on-year increase of 12.7% at comparable prices, 5.6 percentage points lower than that of the first quarter. Meanwhile, the average two-year growth was 5.3%, a 0.3 percentage points faster than that of the first quarter. By quarter, the year-on-year GDP growth for the first quarter was 18.3%, with an average two-year growth of 5%; and it was 7.9% for the second quarter, with an average two-year growth of 5.5%. By industry, in the first half of the year, the value added of primary industry was 2.84 trillion yuan, a year-on-year growth of 7.8%, with an average two-year growth of 4.3%; secondary industry was 20.72 trillion yuan, a year-on-year growth of 14.8%, with an average two-year growth of 6.1%; and the tertiary industry was 29.66 trillion yuan, a year-on-year growth of 11.8%, with an average two-year growth of 4.9%. The quarter-on-quarter GDP growth of the second quarter was 1.3%.

First, summer grain witnessed another bumper harvest, while production of animal husbandry grew steadily.

In the first half of the year, the value added of agriculture (crop farming) went up by 3.6% year-on-year, a 0.3 percentage points faster than that of the first quarter, with an average two-year growth of 3.7%. Specifically, in the second quarter it grew by 3.7%, a 0.4 percentage points faster than that of the first quarter. The overall output of summer grain was 145.82 million tons (291.6 billion jin), 2.97 million tons (5.93 billion jin) higher than that of last year, an increase of 2.1%. The structure of crop farming continued to be optimized, as sown areas for cash crops like rapeseeds increased. In the first half of the year, the output of pork, beef, mutton, and poultry was 42.91 million tons, up by 23% over the same period last year. Specifically, the output of pork increased by 35.9%; milk rose up by 7.6%; and eggs were down by 4.1%. By the end of the second quarter, 439.11 million pigs were registered in stock, a year-on-year growth of 29.2%. Specifically, 45.64 million were breeding sows, up by 25.7%.

Second, industrial production grew steadily and high-tech manufacturing grew fast.

In the first half of the year, the total value added of industrial enterprises above the designated size grew by 15.9% year-on-year, with an average two-year growth of 7%, a 0.2 percentage points faster than that of the first quarter. Specifically, that of the second quarter went up by 8.9% year-on-year. In June, the total value added of industrial enterprises above the designated size grew by 8.3% year-on-year, with an average two-year growth of 6.5%; and a month-on-month growth of 0.56%. In terms of sectors, in the first half of the year, the value added of mining went up by 6.2% year-on-year, with an average two-year growth of 2.5%; manufacturing was up by 17.1%, with an average two-year growth of 7.5%; and production and supply of electricity, thermal power, gas and water went up by 13.4%, with an average two-year growth of 6%. The value added of high-tech manufacturing went up by 22.6% year-on-year, with an average two-year growth of 13.2%. In terms of products, the production of new-energy automobiles, industrial robots and integrated circuits increased by 205%, 69.8%, and 48.1% year-on-year respectively, with average two-year growth all exceeding 30%. An analysis by types of ownership showed that the value added of the state holding enterprises went up by 11.9% year-on-year; share-holding enterprises went up by 15.8% year-on-year; enterprises funded by foreign investors and investors from Hong Kong Special Administrative Region (SAR), Macao SAR, and Taiwan were up by 17% year-on-year; and private enterprises were up by 18.3% year-on-year. In June, the Manufacturing Purchasing Managers' Index of China was 50.9%, staying above the threshold for 16 months in a row. The Production and Operation Expectation Index was 57.9%.

In the first five months, the total profits made by industrial enterprises above the designated size were 3.42 trillion yuan, up by 83.4% year-on-year, with an average two-year growth of 21.7%. The profit rate of the business revenue of industrial enterprises above the designated size was 7.11%, 2.05 percentage points higher than that of the first five months of 2020.

The service sector recovered steadily with market expectation picking up.

The first half of the year witnessed a steady recovery of the tertiary industry. Specifically, the value added of the tertiary industry for the second quarter increased by 8.3% year-on-year, with an average two-year growth of 5.1%; that for the first quarter increased by 15.6% year-on-year, with an average two-year growth of 4.7%. Specifically, in the first half of the year, the value added of transportation, storage and postal services and information transmission, software and information technology services increased by 21% and 20.3% year-on-year respectively, with average two-year growth increasing by 6.9% and 17.3% respectively. In June, the Index of Services Production increased by 10.9% year-on-year, with an average two-year growth rate of 6.5%. In the first five months, the business revenue of service enterprises above the designated size went up by 31.9% year-on-year, with an average two-year growth of 11.1%, a 0.2 percentage points higher than that of the first four months.

In June, the Business Activity Index for services was 52.3%, staying above the threshold for 16 months in a row. Specifically, the Business Activity Index for sectors closely related with online consumption such as express mail services, telecommunication, broadcast, television and satellite transmission services, internet, software and information services stayed within the expansion range of 57% and above. Monetary and financial services and insurance stood within the expansion range of 60% and above. In terms of market expectation, the Business Activities Expectation Index was 60.4%, continuing to stay within the expansion range.

Fourth, market sales improved gradually and sales of upgraded consumer goods witnessed accelerated growth.

In the first half of this year, the total retail sales of consumer goods reached 21.19 trillion yuan, up by 23% compared with the previous year, registering a two-year average growth of 4.4%, 0.2 percentage point faster than that of the first quarter; and the total retail sales of the second quarter went up by 13.9% year-on-year, with a two-year average growth of 4.6%. In June, the total retail sales of consumer goods reached 3.76 trillion yuan, up by 12.1% year-on-year, with a two-year average growth of 4.9%, and up by 0.70% month-on-month. In the first half of this year, in terms of regions, the retail sales of consumer goods in urban areas reached 18.41 trillion yuan, up by 23.3% year-on-year, with a two-year average growth of 4.4%, and the retail sales of consumer goods in rural areas stood at 2.78 trillion yuan, up by 21.4%, with a two-year average growth of 4%. Grouped by consumption patterns, the retail sales of goods reached 19.02 trillion yuan, up by 20.6% year-on-year, with a two-year average growth of 4.9%; catering revenue was 2.17 trillion yuan, up by 48.6% year-on-year and basically the same as that of the first half of 2019. Grouped by categories, the year-on-year growth rates for 18 categories of goods by enterprises above the designated size all exceeded 10%, among which, over 70% of categories of goods witnessed year-on-year growth rates exceeding 20%. In terms of the two-year average growth, excluding petroleum products, retail sales of other categories of goods all witnessed positive growth, among which, the two-year average growth rates of nine categories, including sports and recreational articles, communication equipment, cosmetics, and cultural and office supplies, exceeded 10%. Online retail sales reached 6.11 trillion yuan, with a year-on-year growth of 23.2% and a two-year average growth of 15%, 1.5 percentage points faster than that of the first quarter. Specifically, the online retail sales of physical goods reached 5.03 trillion yuan, up by 18.7%, with a two-year average growth of 16.5%, 1.1 percentage points faster than that of the first quarter. This accounted for 23.7% of the total retail sales of consumer goods, 1.8 percentage points higher than that of the first quarter.

Liu Aihua:

Fifth, investment in fixed assets continued to recover and the two-year average growth of investment in manufacturing sector accelerated.

In the first half of this year, the investment in fixed assets (excluding rural households) reached 25.59 trillion yuan, up by 12.6% year-on-year, and it grew by 0.35% month-on-month in June. The two-year average growth rate reached 4.4%, 1.5 percentage points faster than that of the first quarter. In terms of sectors, in the first half of this year, investment in infrastructure was up by 7.8% year-on-year, with a two-year average growth of 2.4%, a slight decrease compared with the first five months. Investment in manufacturing was up by 19.2% year-on-year, with a two-year average growth of 2.0%, 1.4 percentage points faster than that of the first five months. Real estate development was up by 15% year-on-year, with a two-year average growth of 8.2%, a slight decrease compared with the first five months. The floor space of commercial buildings sold reached 886.35 million square meters, up by 27.7% year-on-year, with a two-year average growth of 8.1%. The total sales of commercial buildings reached 9.29 trillion yuan, up by 38.9% year-on-year, with a two-year average growth of 14.7%. In terms of industries, investment in the primary industry went up by 21.3% year-on-year, with a two-year average growth of 13.2%. Investment in the secondary industry was up by 16.3% year-on-year, with a two-year average growth of 2.9%. Investment in the tertiary industry was up by 10.7% year-on-year, with a two-year average growth rate of 4.8%. Private investment was up by 15.4% year-on-year, with a two-year average growth rate of 3.8%. Investment in high-tech industries grew by 23.5% year-on-year, with a two-year average growth of 14.6%, of which the investment in high-tech manufacturing and high-tech services increased by 29.7% and 12% year-on-year respectively and their average two-year growth rates reached 17.1% and 9.5% respectively. In terms of high-tech manufacturing, investment in the manufacturing of computers and office equipment and in the manufacturing of medical equipment, measuring instruments and meters grew by 47.5% and 34.2% year-on-year respectively and their two-year average growth rates reached 26.3% and 18.7% respectively. In terms of high-tech services, the investment in e-commerce services and in research, development and design services went up by 32.9% and 28.4% year-on-year and their two-year average growth rates reached 32.5% and 15.9%. The investment in social sectors went up by 16.4% year-on-year, with a two-year average growth rate of 10.7%, among which the investment in health and education went up by 35.5% and 14.2% year-on-year, with a two-year average growth of 24.9% and 12.5% respectively.

Sixth, imports and exports of goods grew fast and the trade structure continued to optimize.

In the first half of this year, the total imports and exports of goods expanded by 27.1% year-on-year to reach 18.07 trillion yuan. The total value of exports was 9.85 trillion yuan, up by 28.1% year-on-year. The total value of imports was 8.22 trillion yuan, up by 25.9% year-on-year. The trade balance was 1.63 trillion yuan in surplus. The trade structure continued to improve. In the first half of this year, the exports of mechanical and electrical products accounted for 59.2% of the total value of exports, up by 0.6 percentage point over the same period last year. The imports and exports of general trade accounted for 61.9% of the total value of imports and exports, up by 1.7 percentage points over the same period last year. The imports and exports by private enterprises accounted for 47.8% of the total value of imports and exports, up by 2.8 percentage points over the same period last year. In June, the total value of imports and exports was 3.29 trillion yuan, an increase of 22% year-on-year. The total value of exports was 1.81 trillion yuan, up by 20.2% year-on-year. The total value of imports was 1.48 trillion yuan, up by 24.2% year-on-year.

Liu Aihua:

Seventh, consumer prices rose mildly and producer prices for industrial products remained at a high level.

The consumer price index (CPI) went up by 0.5% year-on-year in the first half of this year, while remaining flat year-on-year in the first quarter. In June, consumer prices went up by 1.1% year-on-year, 0.2 percentage point slower than May, and down by 0.4% month-on-month. In the first half of this year, consumer prices went up by 0.6% in urban areas and 0.4% in rural areas. Grouped by commodity categories, prices for food, tobacco and alcohol were up by 0.4% year-on-year; clothing remained the same year-on-year; housing was up by 0.2%; articles and services for daily use were up by 0.1%; transportation and communication were up by 1.9%; education, culture and recreation were up by 0.9%; medical services and health care were up by 0.3%; and other articles and services went down by 1.1%. In terms of food, tobacco and alcohol prices, prices for pork went down by 19.3%, grain was up by 1.2%, fresh fruits were up by 2.6% and fresh vegetables were up by 3.2%. Core CPI, excluding the prices of food and energy, went up by 0.4%, after remaining the same year-on-year in the first quarter.

In the first half of this year, producer prices for industrial products went up by 5.1% year-on-year, 3 percentage points faster than the first quarter. In June, it grew by 8.8% year-on-year, 0.2 percentage point slower than in May. In the first half of this year, the purchasing prices for industrial producers went up by 7.1% year-on-year, 4.3 percentage points faster than the first quarter. It went up by 13.1% year-on-year and 0.8% month-on-month in June.

Eighth, the surveyed unemployment rate in urban areas was the same as last month and employment was generally stable.

In the first half of this year, 6.98 million new jobs were created in urban areas, which meant that 63.5% of the whole year target was achieved. In June, the surveyed unemployment rate in urban areas was 5%, the same as in May and 0.7 percentage point lower than the same period of last year. The surveyed unemployment rate of the population with local household registration was 5% and that of the population with non-local household registration was 5.1%. Specifically, the surveyed unemployment rates of the population aged from 16 to 24 and from 25 to 59 were 15.4% and 4.2%, respectively. The urban surveyed unemployment rate in 31 major cities was 5.2%, the same as that of May. The employees of enterprises worked 47.6 hours per week on average, 0.3 hours more than in May. By the end of the second quarter, the number of rural migrant workers totaled 182.33 million.

Liu Aihua:

Ninth, resident income continued to grow and the ratio of per capita disposable income between urban and rural residents narrowed.

In the first half of this year, China's per capita disposable income of residents was 17,642 yuan, a nominal increase of 12.6% over that of last year, which was mainly due to a low base in the first half of last year. The two-year average growth rate reached 7.4%, 0.4 percentage point faster than that of the first quarter. The real growth was 12% year-on-year after deducting price factors, registering a two-year average growth of 5.2%, which was slightly slower than overall economic growth but generally growing at the same pace. In terms of permanent residence, the per capita disposable income of urban residents was 24,125 yuan, a nominal growth of 11.4% and a real growth of 10.7% year-on-year. The per capita disposable income of rural residents was 9,248 yuan, a nominal growth of 14.6% and a real growth of 14.1% year-on-year. In terms of sources of income, the income from wages and salaries, net operative income, net property income and net transfer income grew by 12.1%, 17.5%, 15%, and 9% year-on-year nominally. The per capita income of urban residents was 2.61 times that of rural residents, 0.07 less than the same period last year. The median of the nationwide per capita disposable income was 14,897 yuan, an increase of 11.6%.

In general, the national economy has sustained a steady recovery in the first half of the year, delivering a stable performance with a consolidated foundation and good momentum of growth. However, we are also aware that the global epidemic development brings many external instabilities and uncertainties, and the unbalanced recovery of the domestic economy demands more efforts to enhance the foundation for steady recovery and growth. Next, we will uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guide, and stay committed to the general principle of pursuing progress while ensuring stability in accordance with policy decisions and plans of the Central Economic Work Conference and the Report on the Work of Government to better coordinate epidemic prevention and control with economic and social development. We will continue to deepen supply-side structural reforms and unlock the potential of domestic demand. We will step up efforts to bail out enterprises. We will accelerate reform and opening-up, and coordinate all work to ensure that the economy operates within an appropriate range. We must make solid progress in high-quality development, and redouble our efforts to fulfill the targets and tasks for economic and social development this year. 

That's all for my introduction. I will now answer your questions.

Xing Huina:

Thank you, Ms. Liu. Now the floor is open to questions. Please state the name of the news outlet you work for before asking questions.

CCTV:

From the data just released, we note that China's average two-year growth in the first half of the year is faster than that in the first quarter. What are the factors that are driving economic growth? What's your opinion on the general performance of China's national economy in the first half of the year? Thank you.

Liu Aihua:

Thank you for your questions. The newly released data of all sectors shows that in the first half of the year, we continued to expand and consolidate the achievements in coordinating epidemic control with economic and social development, and China's economy sustained a steady recovery, delivering a stable performance with a consolidated foundation and a good momentum of growth. Its characteristics can be reflected in five aspects.

First, China's economy continued to resume growth. China's GDP expanded 12.7% year-on-year in the first half and rose 7.9% year-on-year in the second quarter, with a 1.3% increase quarter-on-quarter. Average two-year growth stood at 5.5%, 0.5 percentage point higher than that in the first quarter. Judging from the relevant indicators, the total freight volume in the first half of the year jumped 24.6% year-on-year, bringing the average growth for the past two years to 7.2%. Total electricity consumption climbed by 16.1% year-on-year, putting the average two-year growth at 7%.

Second, the economic structure was adjusted and improved. First of all, the support of industries has been enhanced. The contribution of the value added of the service sector to economic growth reached 53% in the first half of the year, 2.1 percentage points higher than that in the first quarter. The manufacturing sector cut a larger share of the GDP. The value-added of the manufacturing sector accounted for 27.9% of the GDP in the first half of the year, 1.3 percentage points higher than that in the same period last year. Besides, consumption played an increasing role in driving economic growth. In the first half of the year, the final consumption expenditure contributed 61.7% to economic growth, 42.5 percentage points higher than the contribution of the total capital formation. The consumption of upgraded consumer goods saw rapid growth. In the first half of the year, retail sales of sports and entertainment goods, communication appliances and cosmetics enterprises above designated size all registered an average two-year growth of more than 10%. Meanwhile, investment in sectors of weakness grew fast. In the first half of the year, the average two-year growth of the investment in high-tech industries and the social domain stood at 14.6% and 10.7% respectively, 10.2 percentage points and 6.3 percentage points higher than the total investment respectively. Fourth, the gap between urban and rural incomes has narrowed, with the ratio of urban and rural per capita disposable personal incomes falling to 2.61 in the first half of the year, 0.07 lower than the same period last year.

Third, innovation drivers were strengthened. First of all, new market entities registered rapid growth. The Basic Unit Database compiled by the National Bureau of Statistics at the end of June shows that the number of legal entities exceeded 30 million for the first time, up 16.6% year-on-year. Besides, new industries and new products witnessed fast growth. In the first half of the year, the value-added of hi-tech manufacturing enterprises above designated size saw an average two-year growth of 13.2%, 0.9 percentage point higher than that in the first quarter. From January to May, the total profits of hi-tech enterprises above designated size in the service sector jumped 27.4% year-on-year, with an average two-year growth of 12.5%, 4.2 percentage points higher than that of the total service enterprises above designated size. In terms of products, the output of new-energy automobiles, industrial robotics and integrated circuits sustained rapid growth year-on-year in the first half of the year. Third, new forms and models of business was growing. In the first half of the year, online retail sales of goods registered an average two-year growth of 16.5%, accounting for 23.7% of total retail sales of consumer goods. Express delivery services exceeded 50 billion items in the first half of the year, close to the level of the entirety of 2018.

Fourth, the quality and efficiency of economic performance improved in general. First of all, the ability of enterprises to make a profit was enhanced. From January to May, the total profits of industrial enterprises above designated size surged by 83.4% year-on-year, with an average two-year growth of 21.7%. The profit rate of their revenues reached 7.11%, 2.05 percentage points higher than that in the same period last year. From January to May, the total profits of enterprises above designated size in the service sector skyrocketed by 1.5 times year-on-year. Besides, the fiscal revenue continued to increase. From January to May, revenue in the general public budget grew by 24.2% year-on-year. Third, the capacity utilization rate also rose. The rate of the industrial capacity utilization stood at 78.4% in the second quarter, 4 percentage points higher than that in the same period last year, or 1.2 percentage points higher than that in the first quarter.

Fifth, the people's wellbeing continued to improve. First of all, the overall employment situation remained stable. In the first half of the year, the survey-based urban unemployment rate registered 5.2% on average, 0.6 percentage point lower than that in the same period last year, or 0.2 percentage point lower than that in the first quarter. The figure is lower than the expected target of roughly 5.5%. A total of 6.98 million new urban jobs were added, accomplishing 63.5% of the targets and tasks over the whole year. By the end of the second quarter, the number of rural migrant workers reached 180 million, basically recovering to the level of the same period in 2019. Besides, consumer prices posted a modest growth, up 0.5% year-on-year in the first half, a relatively low level of growth. Third, growth in personal income was basically in step with economic growth. In the first half of the year, per capita disposable income climbed by 12% in real terms year-on-year, with an average two-year increase of 5.2%, basically in keeping with economic growth.

Based on the five aspects mentioned above, the national economy in the first half of the year sustained a steady recovery and witnessed the consolidation of its firm growth and sound momentum. At the same time, faced with the volatile pandemic situation and many uncertainties internationally, the domestic economic recovery remains uneven and more efforts are needed to consolidate steady recovery development. In the next step, following the decisions and plans of the Central Economic Work Conference and the government work report, we will continue to deepen supply-side structural reforms, release the potential of domestic demand, help bail enterprises out, promote high-quality development, and endeavor to complete the economic and social development target and tasks throughout the year. That's all about the first question. Thank you.

Bloomberg:

You mentioned the income just now. My question is about the income growth. The real growth of income in the first half was 5.2% on a real average, also on a two-year average basis, which was slower than the economic growth. The Ministry of Commerce said last week in the five-year plan the retail sales will grow 5% a year through 2025. How can the economy rebalance and the dual circulations be successful, if the income and retail sales grow much slower than the overall economy? Thank you. 

Liu Aihua: 

Thank you for your question. Your question was mainly about income in the first half of the year. According to the statistics we just released, the nationwide per capita disposable income of residents in the first half of the year grew by 5.2%, almost the same as the average 5.3% two-year growth of GDP during the same period. Considering the impact of the pandemic, it was not easy to realize a per capita income growth of 5.2%. From the perspective of structure, there were three structural elements propelling the income growth rate to reach 5.2%.

First, with the continuous and steady recovery of the economy, the employment situation was generally stable, and growth of income from wages and salaries advanced swiftly. In the first half of the year, the income from wages and salaries grew by 12.1% year on year, with an average two-year growth of 7.2%.

Second, local governments have stepped up measures such as raising pension standards, improving basic living security for people in difficulties, and providing social relief and temporary assistance timely to meet people's living needs. Per capita net transfer income grew by 9%, with an average two-year growth of 8.6%.

Third, with the epidemic now under control, business activities gradually resumed. The statistics reflect the situation, with net business income growing by 17.5% year on year in the first half of the year and by 5.6% on a two-year average basis. The growth was attributed to the economic recovery, which propelled the increase of employment and income, policy support from local governments for ensuring people's living needs, and also endeavors from every economic entity. Based on the above-mentioned aspects, we consider these achievements remarkable as the income growth was generally in step with the economic growth. 

Judging from these aspects, the internal driving force of the Chinese economy is increasing and the vitality of market entities is also growing. We hold that income growth at the next phase will also have a solid basis to provide strong support for consumption.

Bauhinia Magazine:

The statistics from the NBS showed that the added value of the "three new" economy, namely, new industries, new business formats, and new business models, have accounted for an increasing share of the GDP in recent years. What's your comment on the propelling effect of the "three new" economy on the overall economy? How should we promote the sustained and rapid development of the "three new" economy in the future?

Liu Aihua:

Thank you for your question. We released the statistics on the proportion of the "three new" economy against GDP last year. Here, I'll brief you first on their conditions in 2020.

Generally, against the backdrop of the great impact of the COVID-19 pandemic and the severe and complicated international situation, the new industries, new business formats, and new business models maintained rapid growth in 2020. The added value of the "three new" economy accounted for 17.08% of the country's GDP, up 0.7 percentage point year on year. The nominal growth of the "three new" economy grew by 4.5% year on year, 1.5 percentage points higher than that of the GDP growth during the same period. According to the statistics, their sustained and rapid growth and the increase of their proportion were attributed to four aspects.

First, a significant increase of scientific and technological investments. In 2020, China's R&D expenditure accounted for 2.4% of the GDP, 0.34 percentage point higher than that in 2015.

Second, the continuous expansion of scientific and technological talents. China has had the highest total number of R&D personnel in the world for the past eight consecutive years.

Third, the acceleration of scientific and technological industrialization. The integration of industrialization and informatization continues to deepen, and we have accelerated the application of research findings so that new industries keep developing rapidly. During the 13th Five-Year Plan period (2016-2020), the output of high-tech manufacturing saw an annual average growth of 10.3%, much higher than the output of industrial enterprises with annual revenue of 20 million yuan or more from their main business operations.

Fourth, the increasing support from government policies. The pandemic is a challenge but also an opportunity for the development of new industries. Our country addressed the challenge positively and turned the crisis into an opportunity by releasing a series of support measures targeting key sectors, such as accelerating the improvement of the technological innovation system with enterprises as the main body, and adopting tax reduction and exemption measures on R&D expenditure and other support policies to step up innovation and entrepreneurship. The leading role of innovation has been significantly enhanced, hence promoting the growth of new industries and new business models.

Judging from the situation in the first half of this year, the rapid growth of the "three-new" economy (new industries, new formats, and new business models) has continued. Just now I introduced to you the growth of the added value, and new products of the high-tech industry, as well as the growth of new business models. As you can see, the rapid growth of the "three-new" economy played an important role in the sustained and stable recovery of the national economy in the first half of this year. From a longer-term perspective, it also provides strong strategic support for accelerating the construction of a new development pattern. Thank you.

Hong Kong Economic Herald:

How should we look at the pressure of achieving peak carbon emissions and carbon neutrality targets ("dual carbon" targets) on economic operations? Some places are taking more radical measures to reduce energy consumption, such as restricting production on high-energy-consuming enterprises. Take coal power as an example, if the output limit is too large in the short term, it may cause instability in the supply of coal power, which would lead to power shortages in some regions, and also affect stable economic growth. How do you think local governments should handle the relationship between green transformation and stable growth? Thank you.

Liu Aihua:

Thank you for asking. Regarding the impact of the "dual carbon" targets on the economy in the short term, I think the current Chinese economy has shifted from a stage of rapid growth to a stage of high-quality development. Peak carbon emissions and carbon neutrality are not only our solemn commitment to the world, but also an inevitable requirement for high-quality development, and the only way to make progress in further modernization. Based on our current stage of development, we are still the largest developing country in the world and have not yet completed the process of industrialization. Given this, achieving peak carbon emissions and carbon neutrality is indeed a very heavy task with a lot of pressure.

We should realize that promoting green transformation and development may curb the short-term growth of some high-energy-consuming and high-emission industries. But at the same time, green transformation and development will also create new demands and give birth to new industries. Green industries such as energy conservation, environmental protection, and clean energy, will create new development opportunities. The green transformation and upgrading of traditional industries will also create huge market demands, so we should still seize this historical opportunity, actively respond to challenges, and promote China's economy to move steadily forward. Thank you.

Cover News:

I'd like to ask the spokesperson how she assesses the employment data in the first half of the year, and what the employment situation of college graduates is for this year? The data shows that the surveyed unemployment rate for those aged 16-24 reached 15.4%, an increase of nearly 2 percentage points from the end of the first quarter. How do you see this change in trend? Thank you.

Liu Aihua:

Thank you for your questions. You have just read our press release in great detail, and you have paid attention to the overall employment and structural issues. From the overall perspective of the first half of this year, the employment situation is generally stable. In the first half of the year, under the effects of a series of policies to reduce burdens, stabilize jobs, and expand employment, the surveyed national urban unemployment rate averaged 5.2% in the first half of the year – a decrease of a 0.6 percentage point from the same period last year, and a decrease of a 0.2 percentage point from the first quarter. Looking at the situations of each month, except for 5.5% in February, the other months were all below 5.5%.

The statistics of new urban job employment nationwide have already completed 63.5% of the annual target task. The surveyed unemployment rates in cities and towns in May and June were both 5%, which was a 0.7 percentage point lower than the same month of the previous year. The decline in the surveyed unemployment rate in cities and towns is mainly attributable to the continuous and stable economic recovery and employment stabilization policies. From the perspective of the unemployment rate of the main working-age population, it is even more outstanding. The unemployment rate of the main working-age population aged 25-59 fell to 4.2% in June. This was 1 percentage point lower than the same month of the previous year. From the perspective of month-to-month, it has also continued to fall.

Of course, while seeing the stability of the total amount, we must also see that there are prominent structural problems regarding employment. As you mentioned just now, with the arrival of the graduation season in June, more and more college graduates are entering the labor market for jobs, which will significantly increase the employment pressure and lead to a significant rise in youth unemployment rate. In June, the surveyed unemployment rate among urban youths aged 16-24 was 15.4%, an increase of 1.6 percentage points over the previous month, which is the same as the same month of the previous year.

Looking forward to the next stage, on the one hand, we should see that we are in a situation of epidemic prevention and control normalization, the economy is continuing to recover steadily, and the labor market is continuously picking up. Therefore, from what we currently have learned, this year's graduates have greater determination and anticipation of being employed than last year, and their job search activity has been significantly higher. But on the other hand, it is true that the number of college graduates this year has reached 9.09 million, a record high, so the employment pressure is indeed relatively high. Therefore, in the next stage, we give top priority to employment and continue to implement the policy of reducing burdens, stabilizing jobs, and expanding employment, as well strengthening employment aids to key groups, optimizing employment services, expanding employment capacity, and consolidating employment stability. Thank you.

CNR:

Having noted the sustained recovery of fixed-asset investment in the first half of 2021, what do you think of investment's role in stimulating economic growth? The two-year average investment growth rate still shows significant disparities compared with pre-epidemic levels. What measures should be taken to expand effective investment in the next phase? Thank you.

Liu Aihua: 

Thank you for your question. You focused on the estimation of China's investment and its trends in the next phase. In terms of monthly changes, the country's investment has seen a sustained and stable recovery in the first half of this year. The two-year average growth of fixed-asset investment in the first six months was 4.4%, up 1.5 percentage points from the first quarter, which was an acceleration. Investment has played a key role in further optimizing the supply structure regarding three aspects. First, the investment in high-tech industries grew rapidly. In the first half of 2021, the two-year average growth of investment in high-tech industries rose 14.6%, up 4.7 percentage points from the first quarter, among which the growth of investment in high-tech manufacturing and service industries sped up. Second, the investment in social sectors grew rapidly, with an average two-year growth of 10.7%, 1.1 percentage points faster than that of the first quarter, among which the investment in the health sector and social work went up by more than 20%. Third, the growth of private investment also accelerated. In the first half of the year, the two-year average growth of private investment grew by 3.8%, up 2.1 percentage points from the first quarter. Investment in high-tech industries has strong kinetic energy, while the investment in the social sectors shores up weaknesses, and the private investment reflects the market vitality. With the acceleration of all of these areas, effective investment has shown to play a key role in further optimizing the supply structure.

As for the next phase, the advantages supporting continued investment recovery are increasing. First, market vitality has gradually increased. According to the profits of industrial enterprises and service enterprises above the designated size from January to May, the performance of enterprises has improved, which will enhance their confidence and ability in investment. Second, financial support is relatively strong. In the first half of the year, the funds in place for fixed-asset investment rose by 16.8% year-on-year, and the growth rate exceeded that of the investments. Third, policies to stabilize investment continue to show positive effect. A batch of major projects set out in the 14th Five-year Plan is being deployed and advanced. As we know, in June, more than 10,000 large-scale projects worth 50 million yuan ($7.74 million) and above were newly included, an increase of 11.6% from the previous month. Fourth, in the long run, new industrialization, IT application, urbanization, and agricultural modernization all offer enormous opportunities for investment. There is huge potential for investment in promoting the renovation of urban infrastructure, implementing the rural vitalization strategy, optimizing and stabilizing the industry chains and supply chains, and accelerating the transformation and upgrading of traditional industries. Therefore, we believe that investment in the next phase will continue to maintain sustained recovery on the whole. Thank you.

CNBC: 

My question is about the impact of data in the second half of 2021, such as whether exports will continue to grow. We saw growth in the automobile consumption, which is somewhat different from June's data for the industry. What are the main factors behind this discrepancy? Thank you.

Liu Aihua: 

Thank you. Let me clarify the two questions. The first is about the estimation of the growth of foreign trade. The second is about the development of the automobile industry. First of all, with regard to foreign trade outlook, relevant departments announced the data for the first half of this year a few days ago. The figures showed that China's foreign trade in the first half registered rapid growth, which is a result of many factors, including the sustainable economic recovery both at home and abroad and a relatively low base last year. The country's foreign trade rose 27.1% year on year in the first six months, an increase of 22.8% from the same period in 2019 and a two-year average growth rate of over 10%. Foreign trade in the first half of this year performed well. As for the second half, we need to pay attention to two aspects: on the one hand, we will face a certain impact on the foreign trade environment resulting from the complex situation of the global COVID-19 pandemic, the relatively high pressure of rising prices in bulk commodities, as well as the unstable external environment and many uncertain factors. On the other hand, there are more favorable conditions for foreign trade. At present, global demand is recovering, and the domestic demand is rebounding. Meanwhile, Chinese enterprises' ability to adjust to external changes has increased over the years, showing strong resilience in development. Taking these factors into full consideration, China's foreign trade is expected to maintain rapid growth for the entire year.

Second, regarding your question about the automobile industry, data in the first six months showed that, despite having fallen in the last two months, the added value of the automobile industry in the first half of 2021 increased by 21.8% year-on-year, and the two-year average growth rate increased by 8.6%. Both are faster than the growth rate of China's value-added industrial output. However, the growth of the automobile industry is also facing certain constraints spanning from chip shortages to policy adjustments, which might bring about short-term constrains such as long supply cycles and rising costs. Nevertheless, for now, there is still a gap in car ownership per thousand people between China and developed countries, which shows the automobile industry still has plenty of room to grow. In the short run, driven by the signals of rising demand and prices, the production of integrated circuits will gradually step up in spite of the complicated external environment and the time-consuming recovery of the global production capacity. Generally speaking, we assume that the automobile industry will maintain relatively fast growth in the long run. Thank you.

Yicai: 

Since the beginning of 2021, prices of bulk commodities have been increasing, which has had an impact on the middle-and-down stream of the industrial chain and caused small and medium-sized enterprises (SMEs) to come under pressure in regards to earning profits. What are your views on price trend of bulk commodities and how should SMEs respond to this? In addition, prices of pork are continuously declining and have become the main drag for CPI. Do you believe that the pork prices have bottomed out? How do you view inflation throughout the year? Thank you.

Liu Aihua:

Thank you for your questions. You talked about at least two issues: one is about price trends among bulk commodities, and the other is related to the CPI trend.

In regard to price trend of bulk commodities: in the first six months, China's producer price index (PPI) growth averaged 5.1% year-on-year, 3 percentage points higher than that in the first quarter, according to current data. The accelerated PPI growth in the second quarter was mainly affected by the following factors: first, the economy is continuing recovering, while demand is expanding; second, it was influenced by the spike in prices of bulk commodities on the international market. This June, the global energy price index rose 92.6% year-on-year, and the non-energy price index climbed by 43.2%, with both being high; third, it was impacted by a low base over the same period last year. Affected by the pandemic, from February 2020, the PPI saw consecutive falls throughout the second quarter of last year, and the figure decreased by over 3% year-on-year for each month of the quarter. Therefore, the year-on-year growth of the PPI obviously rose in the second quarter of this year, bringing mounting cost pressures to middle-and-down stream enterprises and micro, small, and medium enterprises (MSMEs). Judging from the general situation, China boasts a strong industrial productive capacity and a sufficient supplying power in industrial products, although there remains some upward pressure caused by the surging prices of bulk commodities on the international market. Meanwhile, initial effects have been appearing as some departments recently implemented policies on safeguarding supply and stabilizing prices for bulk commodities. In June, the PPI rose 8.8% year-on-year, 0.2 percentage point slower than that was recorded in May. Therefore, the impacts of PPI growth can be generally controlled.  

Your second question relates to CPI trends and the prediction of pork prices. The CPI went up moderately by 0.5% year-on-year in the first half of the year, dropping 3.3 percentage points compared to the same period in 2020, and maintained its relatively low level over the past few years. In June, the consumer prices went up by 1.1% year-on-year, 0.2 percentage point slower than in May. Declining food prices may be the main reason for the drop in CPI growth rate. Food prices decreased 0.2% year-on-year in the first half of the year, while the figure in the same period of the last year was an increase of 16.2%. Declining food prices pushed down consumer inflation in the first half of the year by 0.04 percentage point and became a main influencing factor in price fluctuations. Pork prices, as you mentioned, have been continuously decreasing for nine consecutive months, with an average drop of 19.3% in the first half of the year, pushing down consumer inflation by 0.45 percentage point. We could say that the consumer prices rose mildly in the first half of the year, with the food prices, pork prices in particular, being the main reason for the slower CPI growth.

Non-food prices, meanwhile, rose 0.7% in the first half of the year, demonstrating a similar scale with the same period of last year, pushing up the CPI by 0.57 percentage point. Energy price surges were most prominent among non-food prices, with gasoline and diesel prices rising 8.5% and 9.2% respectively in the first half of the year, which jointly push up the CPI by 0.24 percentage point. Mild CPI growth in the first half of this year resulted from the declining food prices as well as a stable growth in non-food prices.

Regarding the three categories affecting CPI in the following phases: first, food prices. China reaped a bumper summer harvest in 2021 as we noted in yesterday's announcement, and grain prices are expected to be stable this year. Pork prices are expected to remain stable as hog production continues to recover and the country's purchase and storage policies provide support. Generally speaking, food prices will face mild upward pressure under the background of a bumper summer harvest and stable pork prices.

Second, the prices of industrial consumer goods. Price hikes in bulk commodities on the international market can drive a price increase in some industrial consumer goods. However, in the long run, the market supply of industrial consumer goods will remain generally sufficient, and the prices will not generate a large-scale increase as China boasts a strong supply and industrial production capacity as well as a complete industrial system .

Third, service prices. Service prices in the first half of this year were continuously affected by the sporadic resurgence of COVID-19 cases and rose 0.3% year-on-year, remaining at a low point in recent years. In the next stage, service prices will resurge to a certain extent as the nation's pandemic prevention and control situation continues to improve; the consumption demands in catering, accommodation, and tourism gradually recover; and the market gains more confidence as well as residents' income growth rates accelerate. But in general, service prices are expected to generate a small-scale increase considering the impact of regular epidemic prevention and control.

Taking into consideration development trends in the above three categories, the prediction that prices will register a moderate rise this year is based on necessary basis and conditions, so is meeting the consumer inflation target of around 3% for the year. Thank you!

Xing Huina:

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

21st Century Business Herald:

China's central bank recently announced cutting the reserve requirement ratio (RRR), which is interpreted as a move to ease policies in advance so as to address the significant downward pressure that the economy will be faced with in the second half of the year. What's your comment on this? At a symposium attended by experts and entrepreneurs held a couple of days ago, Premier Li Keqiang said that we should step up cross-cyclical regulation and address some particular cyclical risks. How to make the cross-cyclical regulation work? What are the cyclical risks currently facing the Chinese economy? Thank you. 

Liu Aihua:

Thank you for your question. I think your question is actually focusing on two aspects. One is about the economic outlook in the second half of this year, and the other is about the trajectory of macroeconomic policies. 

Let me begin with the first question. Regarding the economic outlook, we can see from the data that the economy continued to recover steadily in the first half of this year, and the supply-demand cycle was unimpeded. The economic fundamentals have laid a good foundation for the economic performance in the second half of this year. In terms of the factors affecting the economic trajectory in the second half, the factors supporting the further recovery and improvement of the economy, in general, are gradually accumulating and increasing. First, the internal driving force for economic growth is becoming more powerful. In the first half of this year, the contribution of domestic demand to economic growth reached 80.9%, up 4.9 percentage points from the first quarter. Market sales also witnessed a steady recovery. The average growth of the total retail sales of consumer goods in the first half-year over the past two years has been 4.4%, 0.2 percentage points higher than that of the first quarter. Investment has also been recovering steadily, with investment in fixed assets seeing a two-year average growth of 4.4% in the first half-year, up 1.5 percentage points from the first quarter. It shows that domestic demand is increasingly important in promoting economic growth. Second, growing confidence among market entities has been seen. In June, the Manufacturing Purchasing Managers' Index (PMI) was 50.9%, staying above the threshold for 16 months in a row. The non-manufacturing PMI and the composite PMI output index were both considerably above the threshold, indicating greater confidence among market entities in economic growth and growth dynamics. Third, the global economy has continued on its recovery trajectory, laying a foundation for the growth of external demand. The global composite PMI for June was 56.6%, which was among the best registered over the past 15 years. Global merchandise trade volume is expected to increase by 8% in 2021, according to the World Trade Organization's most recent forecast. An 8% projection shows that global trade recovery is getting faster, which ensures that external demand will maintain rapid growth. 

While the economic fundamentals, as well as supply and demand, have maintained a stable performance with good momentum for growth, macroeconomic policies have continued to provide support for the real economy and more policies have gradually been adopted to support individually-owned businesses as well as small and micro businesses. These are conducive to alleviating difficulties and solving the problems enterprises are faced with and will also inject new momentum to the market. Looking ahead to the second half of the year, many external destabilizing factors and uncertainties remain. Domestically, we have to face the reality of unbalanced economic growth, caused in part by the rising prices of the raw materials that you mentioned, which have put pressure on small and micro businesses, especially those in the middle and lower reaches, in terms of their production and operation. However, considering the general fundamentals, supply-demand cycle, market confidence, and the increasingly strong domestic demand, China's economy is expected to maintain a sustained and stable recovery in the second half of the year.

Regarding future macroeconomic policies, as I said just now, this year's overall economy will deliver a stable performance with a consolidated foundation and a good momentum for growth. On the one hand, we should be aware that the overall trend is positive. On the other hand, we should also understand that the current environment at home and abroad is complicated and that the rise in bulk commodity prices in particular, is putting great pressure on enterprises in terms of costs. Given the prominent operational problems, we should act in accordance with the decisions and deployments of the CPC Central Committee and the State Council, and focus on the present while keeping an eye on the future, ensuring cross-cyclical regulation and properly address possible cyclical risks. With a focus on fostering and boosting market entities, we need to press ahead with reforms to streamline administration, delegate power, improve regulation, and upgrade services to improve the business environment and provide more development opportunities for micro, small, and medium-sized enterprises, and lay a solid foundation for steady and sound economic growth. Thank you.  

Ta Kung Pao and Wen Wei Po:

The data shows that the value added to enterprises funded by foreign investors or investors from Hong Kong, Macao, and Taiwan increased by 17% year on year from January to June. What is your comment on this figure? Thank you. 

Liu Aihua:

Thank you for your question. You've checked the data very carefully. As you said, the value added to enterprises funded by foreign investors or investors from Hong Kong, Macao, and Taiwan increased by 17% year on year. Such a growth rate is higher than that of the industrial enterprises above the designated size. In the first half of this year, the total value added to the industrial enterprises above the designated size grew by 15.9% year on year. The 17% growth rate indicates that the investment from foreign investors and those from Hong Kong, Macao, and Taiwan have shown flexibility in responding to the economic fallout of the pandemic and adapting to the market changes. Moreover, our policies have been providing more support to enterprises and the real economy. In general, the increase of enterprises and industries invested in by foreign investors and those from Hong Kong, Macao, and Taiwan also confirms the recovery of our overall economy and indicates that the business performance of market entities is also improving. Thank you.

Xing Huina:

Thank you, Ms. Liu. Today's press conference is hereby concluded. Thank you to all of our friends from the media. Goodbye. 

Translated and edited by Wang Yiming, Wang Qian, Cui Can, Yuan Fang, Duan Yaying, Chen Xia, Mi Xingang, Wang Wei, Zhang Rui, Wang Zhiyong, Zheng Chengqiong, Li Huiru, Zhang Tingting, Huang Shan, Gong Yingchun, Liu Qiang, Jay Birbeck, and Tom Arnstein and Geoffrey Murray. 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:

Ruan Jianhong, spokesperson of the People's Bank of China (PBC) and director general of the statistics and analysis department at the PBC

Sun Guofeng, director general of the monetary policy department at the PBC

Zou Lan, director general of the financial market department at the PBC

Chairperson:

Chen Wenjun, head of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 13, 2021

Chen Wenjun:

Ladies and gentlemen, good afternoon. Welcome to this press conference about China's first-half financial statistics of 2021. We are delighted to invite Ms. Ruan Jianhong, spokesperson of the People's Bank of China (PBC) and director general of the statistics and analysis department at the PBC; Mr. Sun Guofeng, director general of the monetary policy department at the PBC; and Mr. Zou Lan, director general of the financial market department at the PBC, to meet with you to introduce the financial statistics and answer your questions.

Now, I give the floor to Ms. Ruan.

Ruan Hongjian:

Friends from the media, good afternoon. Since 2021, the PBC has resolutely implemented the deployments of the CPC Central Committee and the State Council; adopted a prudent monetary policy that is accurate, flexible, proper, and stable; maintained reasonable and ample liquidity; reduced the required reserve ratio; optimized the funding structure of financial institutions; and given full play to the targeted guiding role of structural monetary instruments such as refinancing, rediscount, and direct tools. We have continued to release the dividends of LPR reform, kept the increases in money supply and aggregate financing generally in step with economic growth in nominal terms, maintained the macro-leverage ratio basically stable, and built support for key areas and weaknesses in the real economy. 

First, total financial resources have grown appropriately and maintained reasonable and ample liquidity. In 2021, the financial system consolidated its achievements in coordinating epidemic control with economic and social development. We have put the real economy in a more prominent position, and the total financial resources increased appropriately. RMB loans for the first half of the year increased by 12.76 trillion yuan, a year-on-year increase of 667.7 billion yuan. The balance of the M2 money supply was 231.78 trillion yuan, an increase of 8.6% year-on-year and 0.3 percentage points higher than at the end of the previous month. The balance of aggregate financing was 301.56 trillion yuan, an increase of 11% year-on-year, and the same as seen at the end of the previous month. The growth rate of M2 and aggregate financing were generally in step with economic growth in nominal terms.

Second, significant results have been achieved in maintaining the basic stability of the macro-leverage ratio. In the first half of the year, the overall national economy continued to recover stably and the order of production and life was steadily restored, providing a basic guarantee for the stability of the macro-leverage ratio. In the first quarter of 2021, China's macro-leverage ratio was 276.8%, 2.6 percentage points lower than at the end of the previous year. The leverage ratios of non-financial enterprises, government departments, and households declined by 0.9, 1.3, and 0.4 percentage points, respectively, all of which fell by varying degrees. Judging from the economic recovery and debt growth in the second quarter, we expect the macro-leverage ratio to remain stable in the second quarter.

Third, the overall financing cost of the real economy has steadily decreased. Since the beginning of the year, the PBC has continued to improve the market-based interest rate formation and transmission mechanism and the PBC's policy interest rate system, optimize supervision over deposit interest rates, release the potential for LPR reform, and promote further reductions in actual loan interest rates. Meanwhile, two monetary policy tools directly concerning the real economy were also leveraged to reduce the financing costs of micro and small enterprises. In the first half of the year, the contract interest rate of new loans issued to micro and small enterprises was 5.18%, down by 0.3 and 1.06 percentage points than during the same period in 2020 and 2019. The contract interest rate for manufacturing loans was 4.13%, down by 0.25 percentage points, compared to the same period last year. In addition, the universal RRR cut has reduced capital costs among financial institutions by about 13 billion yuan per year, and transmission through financial institutions has promoted the reduction of overall financing costs.

Fourth, the financial sector has bolstered support for high-quality development. The financial system has implemented an innovative, coordinated, green, open, and shared development philosophy and built on the new development paradigm to promote high-quality economic development and increased support for technological innovation. As of the end of May, the rate of obtaining loan for small and medium sci-tech enterprises were 41.8%, while the loan balance increased by 8.75% over the beginning of the year, and the development of green finance was solidly promoted. We have improved the green financial standard system, established a climate and environmental information disclosure system, and encouraged the financial sector to increase support for green industries. We have also continued to develop inclusive finance. At the end of June, the balance of inclusive loans for micro and small firms reached 17.7 trillion yuan, a year-on-year increase of 31% and 18.7 percentage points higher than the growth rate of various loans in the same period. At the end of June, 38.3 million micro and small firms had received inclusive loans, a year-on-year increase of 29.2%.

Fifth, we have effectively controlled financial risks in key areas. By the end of the first quarter, the shadow banking assets, non-standard credit assets, and non-standard capital in the financial system dropped by about one-fifth, one-fourth, and one-fifth, respectively, compared to historical records. We have been exploring risk control mechanisms in small- and medium-sized financial institutions, and made progress in installing risk control mechanisms in small- and medium-sized financial institutions with high risks. We are also improving and establishing long-term financial regulation mechanisms for the real estate sector with a focus on stabilizing land prices, property prices, and people's expectations.

To sum up, the finance sector has been progressing smoothly with continued improvement in its structure. In the next step, the PBC will conscientiously implement the principles of the fifth plenary session of the 19th CPC Central Committee as well as the Central Economic Work Conference, uphold the underlying principle of pursuing progress while ensuring stability, keep a prudent monetary policy that is consistent, stable, and sustainable. We will deepen structural supply-side reforms in the finance sector, increase financial support for key sectors such as the private sector, small- and micro-businesses, rural vitalization, and green and low-carbon. We will continue to improve the adaptability and inclusiveness of the financial system and financial services and make contributions to reaching the second centenary goal.

Chen Wenjun:

Thank you, Ms. Ruan. The floor is now open to questions. Please identify the news organizations you represent before raising questions.

China Securities Journal:

What are the structural features of total social financing (TSF) in the first half of the year? How will they change in the second half of the year? Thank you.

Ruan Jianhong:

The TSF grew by 17.74 trillion yuan in the first half of the year, a drop of 3.13 trillion yuan year-on-year, but a 3.12 trillion yuan increase than the same period in 2019. At the end of June, the growth rate of TSF was 11%, leveling the same period in May, and was consistent with the nominal GDP growth. Therefore, our financial support toward the real economy is consistent with the overall economic growth.

Let's take a look at the TSF structure. We can see from the statistics that the structure shows some signs of divergence, which may affect our impression on the overall scale. Two reasons have contributed to the decelerated growth or accelerated decline compared to last year. The first is that shrinking shadow banking assets have led to a drop in off-balance-sheet financing. In the first half of the year, off-balance-sheet financing, including entrusted loans, trust loans, and undiscounted bankers' acceptances, declined by 843.6 billion yuan, a drop of 869.9 billion yuan year-on-year. Second, compared to last year's expanded government and corporate bonds to offset the impact of COVID-19 on the economy, this year's bond issuance has been normalized. At the same time, the reason for an accelerated growth in TSF compared to 2019 is the rise in RMB-denominated loans and stock financing. Specifically, RMB loans rose by 613.5 billion yuan in the first half of the year compared to the same period last year. In comparison, stock financing by non-financial companies reached 495.5 billion yuan, up by 249.4 billion yuan year-on-year.

In the second half of this year, we will continue to implement prudent monetary policies that are flexible, precise, reasonable, and moderate and will serve the development of the real economy. We expect the TSF to grow steadily and consistently with the nominal GDP growth. Thank you.

Thecover.cn:

In the financial statistics of the first half of the year, we noticed that RMB loans have increased by 12.76 trillion yuan, up by 667.7 billion yuan year-on-year. Loans to enterprises and public institutions increased by 8.37 trillion yuan. What's your opinion on the scale of loans to those enterprises? What will PBC do to further increase financial support to the real economy. Thank you.

Ruan Jianhong:

The RMB loans increased by 12.76 trillion yuan in the first half of the year, up by 667.7 billion yuan. In the end of June, the growth rate of RMB loans was 12.3%, up by 0.1 percentage points month-on-month and a decrease of 0.9 percentage points year-on-year, representing a steady growth over the high baseline last year. This year, our credit policy continues to serve the real economy, providing powerful support for high-quality economic growth.

You mentioned that loans to enterprises and public institutions rose by 8.37 trillion yuan in the first half of the year, down by 402.1 billion yuan. Specifically, short-term loans increased by 1.23 trillion yuan, a drop of 1.6 trillion yuan year-on-year, representing that the liquidity demand for businesses is returning to normal. At the same time, medium- and long-term loans increased by 6.62 trillion yuan, up by 1.77 trillion yuan year-on-year, indicating that financial institutions have provided strong support for the medium- and long-term investment in businesses.

According to the structure of medium- and long-term investment, the financial sector has provided steady and strong support to manufacturing, infrastructure, and the service industry (not including real estate). The structure of credit supply has continued to improve. 

Medium- and long-term loans to manufacturers increased rapidly. At the end of June, the outstanding balance of medium- and long-term loans to manufacturers grew by 41.6% year-on-year, up by 16.9 percentage points from the same period last year, and 24.8 percentage points higher than that of all industries, increasing by more than 40% for the fourth straight month. Specifically, medium- and long-term loans to high-tech manufacturers increased by 46.3%, continuing a relatively high growth rate. 

Medium- and long-term loans to the infrastructure industry also increased rapidly. At the end of June, the outstanding balance of medium- and long-term loans to the infrastructure industry increased by 17.3% year-on-year, up 5.4 percentage points from the same period last year. In the first half of the year, medium- and long-term loans to infrastructure increased by 2.49 trillion yuan, up by 967.4 billion yuan year-on-year. 

Support for the service industry (not including real estate) continued to grow. At the end of June, medium- and long-term loans to the industry grew by 19.1% year-on-year, 2.3 percentage points higher than that of all industries. Thank you. 

Economic Daily:

Micro, small and medium enterprises (MSMEs) have played an important role in promoting economic growth and stabilizing employment. In recent years, the PBC has rolled out a series of measures. What have been the results of these measures? What other innovative measures will be adopted to further support the development of MSMEs? Thank you. 

Zou Lan: 

This year, the PBC has firmly implemented the arrangements and decisions of the CPC Central Committee and the State Council to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment and market expectations) and maintain security in the six areas (residential employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations). We have adhered to the principles of adopting long- and short-term policies and have addressed both the symptoms and root causes in order to improve financial services for market entities such as small and micro enterprises. We have made achievements in the following aspects. 

First, the financing of small and micro enterprises saw an increase in amount and scope and a decrease in cost. At the end of June, the outstanding balance of loans to small and micro businesses under inclusive financial services, as introduced by Ms. Ruan, amounted to 17.7 trillion yuan, increasing 31% year-on-year. A total of 38.3 million small and micro businesses were supported, increasing by 29.2% year-on-year. In May, the interest rate of loans to small and micro businesses with single-client credit lines under 10 million yuan was 4.93%, down by 0.3 percentage point year-on-year. 

Second, the two monetary policy instruments that can directly stimulate the real economy exerted remarkable effects. From 2020 to May of 2021, the financial institutes in the banking industry have postponed principal and interest repayments across China on 10.9 trillion yuan of loans and issued 6.3 trillion yuan in credit loans to small and micro businesses under inclusive finance services. 

Third, support for enterprises in key industries has been further expanded. By the end of May, a key enterprise database, including 383,000 key enterprises across China, was established. The financial institutes have provided loans of 7 trillion yuan to 180,000 enterprises, creating about 30 million jobs. 

Besides, in terms of reducing fees and making interest concessions, since this year, the PBC has been unleashing dividends of the LPR reform, improving supervision on deposit interest rates, and reducing the costs of debt for banks. We have launched 12 measures to cut fees for five categories of services, namely bank account services, RMB settlements, e-banking, bankcard use, and payment account services. We have decreased service charges for cash withdrawals across ATMs of different banks with the China Banking and Insurance Regulatory Commission. According to our estimates, annual service charge reductions following implementation of the measures will amount to 24 billion yuan, of which over 16 billion will be saved among small and micro enterprises and self-employed workers. In the first six months, the average interest rate in enterprise contracts was 4.41%, down by 0.28 percentage point year-on-year. In general, the financial system has intensified support for the real economy and made financing more convenient for enterprises; total financing costs decreased while ensuring stability. 

For the next step, the PBC will ensure the continuity and stability of policies and carry out the program to improve financial services for MSMEs. We will also introduce a specialized program themed “providing loans for small businesses, improving people's well-being” to scale up financial support for self-employed workers. We will continue to improve financial services for small and micro enterprises and other market entities. Thank you. 

CCTV:

At the end of last year, the Central Economic Work Conference required a prudent monetary policy that is flexible, precise, reasonable and appropriate. What direction will the monetary policy take in the second half of 2021? What will be the difference compared to the first half? Thank you. 

Sun Guofeng:

This year, the prudent monetary policy has been flexible, precise, reasonable, and appropriate, emphasized stability, and provided strong support for the real economy, achieving good results. 

First, the supply of money and credit and aggregate financing grew reasonably. At the end of June, the M2 money supply increased by 8.6% year-on-year. Aggregate financing grew by 11%. In the first six months, new RMB loans totaled 12.76 trillion yuan, an increase of 667.7 billion yuan compared to the same period last year, providing strong support for the real economy. 

Second, precise support was provided to key sectors and weak links such as small and micro enterprises and manufacturing. At the end of June, the outstanding balance of all-inclusive loans of small and micro businesses increased by 31% compared with the same period last year, up by 0.7 percentage point from the end of last year; the number of market entities supported by all-inclusive loans of micro and small businesses was 38.3 million, up by 29.2% compared with the same period last year; medium- and long-term loans to manufacturers increased by 41.6% compared with the same period last year, increasing by over 40% for four consecutive months. 

Third, overall financing costs have steadily dropped. The interest rate of business loans from January to June was 4.63%, down 0.16 percentage point compared to the figure of the previous year. The weighted average interest rate of inclusive finance lending to micro and small businesses was 4.93% in May, down 0.15 percentage point compared with last December. Currently, China's economy has maintained the momentum of stable and sound development, and overall price trends are under control. During our response to the pandemic last year, we persevered in implementing normal monetary policies, and the intensity gradually returned to normal after May 2020, and by the first half of this year had almost returned to its normal pre-pandemic state. China has been leading the world in macro policies. 

Next, the PBC will make stability a top priority, giving prominence to domestic situation and implementing policies with proper intensity and pace mainly according to economic situation and price trends at home. We will take into consideration the balanced domestic and external development and give better support to the real economy, creating an appropriate monetary and financial environment for the high-quality economic development. In terms of aggregate, the PBC will ensure that money supply and aggregate financing are generally in step with economic growth in nominal terms. In terms of structure, the PBC will support the green development and scientific and technological innovation of small and medium enterprises. In terms of prices, the PBC will consolidate the outcomes of lower loan interest rates in real terms and ensure that overall financing costs steadily drop. Thank you.

Nihon Keizai Shimbun:

Since the autumn of 2020, the PBC has expanded trials of the digital RMB. Last week, a vice-governor of the PBC mentioned that the number of selected users in the trial had reached 10 million. Up to now, how does the PBC assess the effectiveness of the trial? Thank you. 

Ruan Jianhong:

I will answer this question. In 2019, the digital currency trial was launched in the cities of Shenzhen, Suzhou and Chengdu, Xiongan New Area and Beijing 2022 Winter Olympic Games venues. In October 2020, the trial expanded to the cities of Shanghai, Changsha, Xi'an, Qingdao and Dalian, and Hainan province. The selection of participants in the digital RMB R&D pilot is based on major national development strategies, the coordinated regional development strategy, and the characteristics of local industries and economies. At present, the pilot provinces and cities cover the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei region, central, western, northeast, and northwest China, which are broadly representative and conducive to testing and assessing promising prospects of the digital RMB in different regions. 

The trial of the digital RMB follows the principle of stability, safety, and controllability, focusing on small and retail payments for some selected groups of users. During the trial, various sectors have shown a keen interest in the digital RMB, and users in the pilot areas are very active. The testing scenarios have included living costs, catering services, transportation, shopping, and government services. The digital RMB pilot programs are expanding in an orderly manner, with a gradual increase in application scenarios and innovations in application modes. The system is in a stable operation overall. Thank you. 

China Daily:

My question is about the achievements of financial measures for targeted poverty alleviation. How can we ensure that financial support can consolidate and expand the achievements in poverty alleviation and advance rural vitalization? Thank you. 

Zou Lan: 

Thanks for your question. In recent years, the PBC implemented the decisions and deployments of the CPC Central Committee and the State Council, improved the policy system and organizational system of financial measures for targeted poverty alleviation, and encouraged the financial sector to increase support to poverty-stricken areas. Since the battle against poverty, micro credit provided to the poor amounted to more than 710 billion yuan; poverty alleviation re-lending totaled 668.8 billion yuan; and targeted loans for poverty alleviation reached 9.2 trillion yuan, giving strong support to the complete victory in the battle against poverty. 

As of this year, the PBC also introduced a number of policies and measures and made solid efforts to make sure that financial support can consolidate and expand the achievements in poverty alleviation so as to help achieve rural vitalization. 

First, this includes strengthening top-level design. In June, the PBC issued opinions on financial support for consolidating achievements in poverty alleviation and comprehensively advancing rural vitalization, which adjusted and improved financial assistance policies. The PBC also introduced measures on appraisals and evaluations for financial institutions serving rural vitalization, stressing the incentive role of assessment and guiding more financial resources to be invested in the areas relating to agriculture, rural areas and the wellbeing of farmers. As of the end of June, the loans to agriculture, rural areas and farmers totaled 41.66 trillion yuan, up 10.1% year on year. 

Second, by giving full play to the guiding role of monetary policy tools. The PBC issued a notice to further give full play to the stimulating and guiding role of re-lending, saying that poverty alleviation re-lending can be extended in accordance with regulations. It also guides financial institutions to expand credit supply for rural vitalization by using monetary policy tools such as re-lending to agriculture, rural areas and farmers and small businesses. 

Third, by increasing support in key areas. In May, the PBC took the lead in issuing opinions on extending financial support for the development of new types of agribusinesses to promote the integrated development of primary, secondary, and tertiary industries in rural areas. 

Next, the PBC will promote the implementation of the measures that have already been introduced, focus on key areas such as key counties assisted in the country's rural vitalization drive, and increase financial support for them. We will ensure financial services for new-type agricultural business entities and strengthen financial support for food security, seed industry development, and other fields. We will also work hard to ensure risk prevention and strive to form a long-term, effective mechanism for financial support for rural vitalization. Thank you.

Phoenix TV:

We noticed that the year-on-year increase of PPI in June dropped by 0.2 percentage points from May to 8.8%, but it remained running at a high level. What do you project for the next PPI trend? Do you think this decrease will continue and, on the basis of the recent comprehensive RRR cut, is there any need for further RRR cuts or even interest rate cuts in the future? Thank you.

Sun Guofeng:

Recently, China's PPI has risen rapidly. This is due to the low base factor of the negative growth of PPI caused by the impact of the epidemic in the same period last year, as well as the imported impact of rising international bulk commodity prices. This year's phased increase in PPI should be viewed objectively. On the one hand, this is a high reading based on last year's low base. In this regard, we can use the overall perspective of three consecutive years - last year, this year, and next year - to observe the changes in PPI. On the other hand, historically, the PPI indicator itself has relatively large fluctuations, so it is not uncommon to see peaks and troughs over a period of a few months. Generally speaking, the rise of China's PPI is temporary, and it may remain relatively high in the second and third quarters of this year. But, with the gradual decline of the base effect and the weakening of the imported impact brought about by the recovery of global supply, PPI is expected to decline in the fourth quarter of this year and into next year.

The recent RRR cut is a regular liquidity operation after the monetary policy returned to normal, and the stance of prudent monetary policy has not changed. Thank you.

South China Morning Post:

Regarding the RRR cut, with the U.S. Federal Reserve has hinted a signal of policy tightening, is the central bank worried about the risks brought about by the differentiation of China's and the US' monetary policies, including RMB depreciation or capital outflow? What measures will be taken to handle these risks? Thank you.

Sun Guofeng:

Since 2020, China has always adhered to and implemented a prudent monetary policy, which not only strongly supports the real economy but also refrains from resorting to a deluge of strong stimulus policies. At the same time, in the light of the domestic epidemic prevention and control and the economic and financial situation, we have appropriately adjusted the intensity and pace of the policies. From February to April last year, due to the severe impact of the epidemic on the domestic economy, the monetary policy response was relatively large. Since May last year, the intensity of monetary policy has gradually stabilized. In the first half of this year, it has basically returned to the normal state before the epidemic, maintaining a leading position in global macro policies.

In the context of global economic integration, the economy and finance of various economies have mutual effects on one another. However, due to differences caused by their various states of epidemic prevention and control and economic recoveries, it is normal that the U.S. and China have different operations of their monetary policy. Currently, China's economy is stable and improving, and the stance of prudent monetary policy has not changed. The RRR cut is mainly in place to optimize the capital structure of financial institutions, improve financial service capabilities, and better support the real economy.

In the next stage, the monetary policy will focus on the domestic situations and prioritize stability. We will stick to a normal monetary policy, and maintain monetary policy independence. We will adjust the intensity and pace of our policies in the light of the domestic economic situation and price trends, take into account internal and external balances, and strongly support the real economy. At the same time, we will also pay close attention to the changes in the international economic and financial situations, taking ourselves as the mainstay and carry out international macro policy coordination to jointly foster a positive environment in order to promote the stable recovery of the global economy. Thank you.

CNBC:

I have two questions. The first question is about consumer loans: what can you tell us about the different types of consumer loans, especially in the context of varying consumer income? The second question is about non-performing assets: some recently published analyses and reports indicate that there are relatively large gaps in non-performing assets of banks across different regions. Has the central bank conducted research on this issue, and what risks need to be considered to protect the national financial system? Thank you.

Ruan Jianhong:

Let me answer your second question first. The statistics of non-performing assets are released by the supervisory authorities, so you can stay tuned with them for information updates.

Zou Lan:

In recent years, China's consumer loans have grown steadily, which is basically consistent with the growth trend of household consumption. At the end of June, the balance of RMB personal consumption loans increased by 13% year on year. Among them, short-term consumer loans increased by 11.1% and medium- and long-term consumer loans increased by 13.4%. With the economic and social development and the improvement of people's living standards, there is still much room for improvement in household consumption. The PBC will actively guide commercial banks to conduct consumer finance businesses in a prudent and standardized manner and strengthen the management of consumer loan use, giving full play to the positive role of consumer finance in supporting upgrades in household consumption and promoting "dual circulation." Thank you. 

Bloomberg:

I have two questions. First, will green finance re-lending be the new monetary policy tool to support the decarbonization policy? Second, how is the PBC preparing to handle the external shocks and also the impact of the Fed's policy tightening in the future? Thank you.

Sun Guofeng:

I will first answer your question regarding our tools to support carbon emission reduction. To implement the policy decisions and plans made by the CPC Central Committee and the State Council on accelerating green and low-carbon development and solidly carrying out work to achieve carbon peak and neutrality goals, the PBC is now working in an orderly manner to set up tools to support carbon emission reduction in accordance with the government work report and the requirements of the State Council executive meetings. The tools will provide targeted and direct support to the development of clean energy, energy conservation, environmental protection, and carbon emission reduction technologies, and will encourage more social funds to promote carbon emission reduction. As structural monetary policy tools that can provide direct support to the real economy, our tools will provide eligible financial institutions with low-cost funds and encourage them to offer financing at preferential interest rates for key projects with significant effects in carbon emission reduction.

The tools to support carbon emission reduction are being devised under the principles of marketisation, the rule of law and internationalization, and fully demonstrate openness and transparency. The tools are feasible, computable and verifiable, and provide targeted and direct support. "Feasible" means the tools will definitely provide support to key projects with significant carbon reduction effects, including those regarding clean energy, energy conservation, environmental protection, and carbon emission reduction technologies. "Computable" means financial institutions can calculate emission cuts supported by loans, and then disclose the information for public supervision. "Verifiable" means third-party organizations will be invited to verify the authenticity of the information released by financial institutions to ensure the effectiveness of the policies.

The tools to support carbon emission reduction give full play to the role of monetary policy tools in policy proclamation, enabling financial institutions and enterprises to better understand the importance of green transition. The tools also promote a green and low-carbon lifestyle and a circular economy among the public. They encourage investment and financing from non-government sources to flow into green and low-carbon sectors to help achieve carbon peak and neutrality goals. This is my answer to your first question.

As for your second question regarding the impact of the Fed's monetary policy shift, I have just covered this when answering previous questions. We have noticed the recent discussions about the Fed's tightening monetary policy. As for the Chinese financial market, the interest rate of 10-year government bonds now stands at about 3%, lower than that of the previous period. The RMB exchange rate is floating both ways and financial markets are running smoothly. As I just said, our economy has maintained steady and sound performance. Therefore, I think the discussion about the Fed's monetary policy shift has a relatively small impact on China's monetary policies and financial markets. Next, the PBC will carry out international macro-policy coordination, giving prominence to China's domestic situation and jointly making a positive voice in stabilizing and reviving the world economy. Thank you.

hb.dzwww.com:

Medium- and long-term household loans, which reflect the changing trend of property loans, increased by 3.43 trillion yuan ($529.6 billion) in the first half of 2021, the highest in recent years. However, the same period has witnessed at least two rounds of lending policies being tightened in the real estate market. Do these two facts contradict each other? What should we make of this data? Thank you.

Ruan Jianhong:

I will answer this question. According to the latest data, the outstanding balance of RMB loans to the real estate sector stood at 50.8 trillion yuan at the end of June, up 9.5% year on year. The growth rate of real estate loans was 2.2 percentage points lower than that at the end of last year, and 2.8 percentage points lower than that of total loans over the same period. The balance of real estate loans was 2.4 trillion yuan higher than that at the beginning of this year. The growth accounted for 18.9% of that of total loans over the same period, and was 569.9 billion yuan less than the same period last year.

Among them, the balance of real estate development loans was 12.4 trillion yuan, up 2.8% year-on-year. The growth rate was 3.3 percentage points lower than that at the end of last year. The balance was 343.3 billion yuan higher than that at the beginning of this year. The growth accounted for 2.7% of that of total loans over the same period, and was 401.2 billion yuan less than the previous year.

At the end of June, the balance of individual housing loans was 36.6 trillion yuan, up 13% year-on-year. The growth rate was 1.6 percentage points lower than that at the end of last year. The balance was 2.1 trillion yuan higher than that at the beginning of this year. The growth accounted for 16.7% of that of total loans over the same period, and was 160.2 billion yuan less than the previous year. Thank you.

Chen Wenjun:

Thanks to our speakers. Today's press conference concludes here. Thank you everyone.

Translated and edited by Wang Yiming, Wang Qian, Guo Yiming, Li Huiru, Liu Jianing, Yuan Fang, Yang Xi, Huang Shan, Zhang Rui, Zhang Junmian, Li Xiao, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.