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Read in Chinese

Speakers:

Xin Guobin, vice minister of industry and information technology

Xu Xiaolan, vice minister of industry and information technology

Han Xia, chief engineer of the Ministry of Industry and Information Technology (MIIT)

Chairperson:

Shou Xiaoli, spokesperson of the Publicity Department of the Central Committee of the Communist Party of China (CPC)

Date:

June 14, 2022

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Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the Publicity Department of the CPC Central Committee. This is the eighth press conference under the theme of "China in the past decade." Today, we have invited Mr. Xin Guobin and Ms. Xu Xiaolan, vice ministers of industry and information technology, and Ms. Han Xia, chief engineer of the Ministry of Industry and Information Technology (MIIT), to brief you on China's achievements in industrialization and IT application since the 18th Party Congress, and to take your questions.

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

Xin Guobin:

Ladies and gentlemen, friends from the media, good morning. I would like to thank you for your long-term interest in and support for the development of China's industrialization and IT application. I am very glad to meet with you today along with my two colleagues to share with you the developments in China's industrialization and IT application over the past decade.

Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the development of the real economy, especially the manufacturing sector, and made the major strategic decision to build China into a country strong in manufacturing and cyberspace. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, major achievements have been made in the development of China's industrialization and IT application, the advancement of new industrialization has been accelerated, the industrial system has been improved, the industrial chain has become more complete, and the overall strength, quality and efficiency of industries as well as their innovation, competitiveness and resilience have been significantly enhanced. China has achieved a historic leap from a major manufacturing country and a major cyberspace country to a strong manufacturing country and a strong cyberspace country, laying a solid foundation for completing the building of a moderately prosperous society in all respects and embarking on a new journey of building a modern socialist country in all respects. 

Over the past decade, we have made great efforts to strengthen, improve and expand the manufacturing sector. The overall strength of the sector and its international influence have been greatly bolstered. From 2012 to 2021, the added value of industries increased from 20.9 trillion yuan to 37.3 trillion yuan, with an average annual growth rate of 6.3%. The added value of the manufacturing sector increased from 16.98 trillion yuan to 31.4 trillion yuan, with its share of the global total rising from around 20% to nearly 30%. China's output of more than 40% of the 500 main industrial products ranks first in the world. China has 41 major industrial categories, 207 intermediate industrial categories and 666 small industrial categories, with its strength in having a complete industrial system further consolidated, and the resilience and competitiveness of its industrial and supply chains constantly improved, effectively enhancing the economy's ability to cope with external shocks. The development of the manufacturing sector has greatly boosted the people's sense of gain. Intelligent and energy-efficient home appliances have been popularized across the country, and cars have quickly entered the homes of ordinary people. The number of vehicles per 1,000 people has increased from 89 in 2012 to 208 in 2021, indicating a great improvement. As opening-up and cooperation have been deepened, China's share of the trade in manufactured intermediate products now accounts for around 20% of the global total. Since the pandemic began, China has provided a large number of vaccines and medical supplies to the international community, strongly supporting the global fight against the pandemic, as well as economic recovery and development. 

Over the past decade, we have worked hard to improve the quality of the supply system, and the industrial structure has been further optimized. Emerging industries have been developing at a faster pace. Products including service robots and smart wearable devices have registered strong growth, the production and sales of new-energy vehicles have topped the world for seven consecutive years, and the output value of the new materials industry has doubled. The transformation and upgrading of traditional industries have been accelerated, and progress has been made across the board in digital and green transformation. Intelligent manufacturing in some sectors is at an advanced international level. The high-tech manufacturing industry and equipment manufacturing industry accounted for 15.1% and 32.4% of the added value of industries above designated size in 2021, up from 9.4% and 28% in 2012, respectively. Regional development priorities have been continuously refined, the leading role of key regions has been boosted, and a large number of advanced manufacturing clusters have been formed in such fields as electronic information and rail transit. 

Over the past decade, we have focused on implementing the strategy of innovation-driven development, with significant progress having been made regarding innovation in key areas. A large number of major landmark innovation achievements have led China's manufacturing industry to new heights, including the Fendouzhe (Striver) deep-sea manned submersible diving to a depth of more than 10,000 meters, the C919 large passenger aircraft being granted airworthiness certificates and delivered, the Chang'e lunar probes, the Zhurong Mars rover, the Xihe solar exploration satellite, the construction of the BeiDou Navigation Satellite System global network, the successful development of unmanned agricultural electric tractors, the clinical application of orthopedic surgical robots in hospitals, the first five-axis processing machine of industrial and mining enterprises, the successful development of 8.8-meter super-large intelligent mining equipment, and the operation of million-kilowatt generating units in Baihetan Hydropower Station.

Over the past decade, we have taken stronger steps to foster high-quality enterprises, and the strength and competitiveness of manufacturing enterprises have been remarkably enhanced. A large number of leading enterprises have stood out. Seventy-three industrial enterprises have been listed among the world's top 500 companies, and the assets of industrial enterprises above designated size have doubled. More than 40,000 specialized and sophisticated small- and medium-sized enterprises (SMEs) producing new and unique products, 4,762 "little giants" (China's top novel SMEs that engage in manufacturing, specialize in niche markets and boast cutting-edge technologies), and 848 "champion manufacturing businesses" (companies with world-class strength in niche markets) have been cultivated. Enterprises have continued to strengthen innovation, and total investment in research and development (R&D) made by industrial businesses above designated size have multiplied. Sales of new products have increased from 11.9% to 22.4% of business revenue. More than 570 industrial enterprises have made the list of the 2,500 companies that have invested the largest sums in R&D worldwide. 

Over the past decade, we have improved our capacity to support social and economic development, and the information and communication technology (ICT) sector has seen leapfrog development. We have built the world's largest internet infrastructure with advanced technology, and the access bandwidth of the optical fiber networks has registered exponential growth from a transmission speed of 10 megabits per second (Mbps) and 100 Mbps to 1,000 Mbps. China has also made great strides in developing its mobile network by making breakthroughs in 3G, keeping pace with the rest of the world in 4G, and securing a leading position in 5G. All administrative villages across the country now have access to broadband internet, which is a historic achievement and greatly contributes to completing all poverty eradication targets and tasks. The internet has played a bigger part in both the consumption and production sector. 5G networks, industrial internet, big data, cloud computing, and artificial intelligence (AI) have been further integrated with the manufacturing industry, which continues to expedite the digitalization of industries and develop the digital sector. The digital economy has seen robust growth momentum. In the meantime, we stay conscious of the existing problems in the industry and information technology sector. For example, our supply system could not fully meet the needs for consumption upgrades. There are many weak links in the key fields of our industrial and supply chains, and some SMEs face new difficulties and challenges in production and business operation.

Standing at a new starting point, the MIIT will work under the stronger leadership of the CPC Central Committee with Comrade Xi Jinping at its core, firm up confidence, and continue to make efforts. The MIIT will firmly implement the decision and deployments made by the CPC Central Committee and speed up the pace of building China's strength in manufacturing and cyberspace to make new and greater contributions toward building a modern socialist country in all respects.

That concludes my introduction. Next, my colleagues and I will take questions from the media. Thank you.

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Shou Xiaoli:

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

China News Service:

Since the 18th CPC National Congress, what measures has the MIIT taken to bolster the manufacturing industry? What is the progress like so far? What are the plans next? Thank you.

Xu Xiaolan:

Thank you for your questions. Since the 18th CPC National Congress, China's economy has shifted from high-speed growth to high-quality development. Transforming the growth model, optimizing the economic structure, and shifting to new growth drivers have become urgent and pivotal. Given the manufacturing industry's foundational role in the real economy, the MIIT has been implementing the new development philosophy in a complete, accurate and comprehensive manner and further prioritizing the high-quality development of the manufacturing industry. Focusing on the supply-side structural reform, the MIIT has coordinated efforts to strengthen the economic foundation, promote industrial upgrades, develop new growth drivers and improve growth quality to enhance the overall capacity of China's manufacturing sector.

First, the industrial foundation has seen steady improvement. Projects designed to strengthen and reengineer industrial foundations have been carried out. Infrastructure products and materials, such as urban rail transit and electrical equipment, have met domestic needs. We have established 22 national manufacturing innovation centers focusing on power batteries, additive manufacturing, and other fields. We also built two manufacturing innovation centers out of central-local collaboration, more than 200 provincial manufacturing innovation centers, 125 public service platforms for industrial foundations, and 29 key platforms for new materials. 

Second, traditional industries have been transformed and upgraded. We have been proactively and steadily addressing overcapacity and strictly implementing the equivalent or reduced replacement of production capacity. We have cleaned up 140 million metric tons of substandard steel products and cut almost all backward production capacity in industries such as electrolytic aluminum and cement manufacturing. Projects on technology transformation and upgrading have been carried out to support enterprises to transform toward a high-end, intelligent, and green development model. Since 2012, investment in technology transformation has remained stable by consistently accounting for over 40% of the total industrial investment, becoming a crucial force boosting the latter.

Third, emerging industries have been given more support. We formulated a development plan for emerging industries and ramped up support in the fields of technologies, industrial standards, and policies. High-tech and equipment manufacturing has played a bigger part in supporting the manufacturing sector. Key industries, such as new energy vehicles (NEV), smartphones, and consumer drones, have ranked high globally. Service robots have been rolled out in the household services and the medical rehabilitation industry. Orthopedic surgical robots have successfully carried out some 20,000 surgeries.

Fourth, the quality of industrial products has been improved. A special campaign has been launched to increase product variety, improve quality and build brands, and the supply of middle- and high-end products have been remarkably increased. In terms of increasing product variety, products such as functionalized and bio-based fibers are accessible to thousands of households. Smart devices and home appliances not only meet the diversified needs domestically but also gain popularity in overseas markets. In terms of improving product quality, more than 95% of the industrial standards of domestic home appliance and shoe-making sectors meet the international standard. In terms of brand-building, a total of 24 domestic brands in the industry and information technology sector made to the list of the World's 500 Most Influential Brands in 2021, 14 more than in 2012.

Looking forward, the MIIT will ground our efforts in the new development stage, apply the new development philosophy, and work to create a new development pattern. The MIIT will double the efforts to consolidate China's long-established supply chains, complete the industrial system, and stabilize the manufacturing industry's contribution to the economy. The MIIT will coordinate efforts to shore up weak links and give full play to industrial strength, upgrade the industrial base, modernize industrial chains, and steer the manufacturing industry toward the high-end, intelligent upgrade and green transformation.

Thank you.

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Xinhua News Agency:

As China's economic development entered a new normal and risks and challenges mounted in recent years, how did we achieve steady and rapid growth of the industrial economy? And what's your view on its prospects? Thank you.

Xin Guobin:

Thank you for your question. The industrial economy is the mainstay and core growth engine for the national economy. Since the 18th National Congress of the CPC, with a commitment to the general principle of pursuing progress while ensuring stability we have implemented the strategies of building China into a leader in manufacturing and cyberspace, thus promoting the industrial economy to achieve steady improvement in quality and an appropriate increase in size.

China's value-added industrial output expanded from 20.9 trillion yuan in 2012 to 37.3 trillion yuan last year. The average annual growth rate stood at 6.3 percent in real terms, much higher than the global rate of around 2 percent. Despite the impacts of the pandemic, the average growth rate for 2020 and 2021 reached 6.1 percent, giving a strong boost to the steady and sustained development of the Chinese economy and playing an important role in stabilizing the global industrial and supply chains and promoting the recovery of the world economy.

Over the past 10 years, we have taken the following measures to develop our industrial economy. First, we highly valued planning. Aiming for the goals set in both the medium-long term plans and five-year plans, we formulated annual targets and arrangements in time, thus forming a mixed, scrollable goal system for the development of the industrial economy. 

Second, we highly valued policy support. Over the years, thanks to the joint response of the central authorities and local governments and coordination between relevant departments, a series of policies have been adopted to expand investment, promote consumption, ensure unimpeded channels, and upgrade the working environment, providing strong support for the steady growth of the industrial economy.

Third, we highly valued the transformation of growth drivers. We sped up upgrading technology and equipment, prompted enterprises to be smart, green, and high-end, and accelerated modernization of the industrial system, all in a drive for high-quality development. 

Fourth, we highly valued the vitality of market entities. We fully implemented reforms in key sectors and took solid steps to streamline administration and delegate power, improve regulation, and upgrade services. We continued supporting micro, small, and medium-sized enterprises (MSMEs), fostered competitive enterprises in a gradient manner, endeavored to ease enterprises' burdens, and made every effort to sustain enterprises – the foundation of the industrial economy.

Fifth, we highly valued international cooperation. We coordinated global and domestic industrial circulation and expanded opening up at a higher level. We attracted global high-end factors and advanced manufacturing to the domestic market while encouraging homegrown enterprises to explore the international market so as to foster a new development paradigm. 

Sixth, we highly valued the prevention and defusing of risks and challenges. We worked hard to make breakthroughs in core technologies in key fields, kept the industrial and supply chains safe and stable, and effectively prevented and defused risks and challenges. 

Impacted by geopolitical conflicts and new waves of COVID-19 infections, our development climate is becoming increasingly complex, severe, and uncertain, and the downward pressure on the industrial economy is mounting. Even so, we consider these shocks and impacts temporary, as our manufacturing system is complete, of strong resilience, and has great potential. Its fundamentals sustaining long-term growth remain unchanged. The central government recently issued a package of supporting policies to stabilize the economy, which is very much needed and reassuring. Enterprises are resuming work and production in an orderly manner and gearing up for design capacity. Continuously boosted by various policies, the industrial economy is expected to return to normalcy in the near future. 

Following the general principle of controlling the COVID-19 pandemic while stabilizing the economy and pursuing a sound and safe growth, we will take well-coordinated measures to contain the pandemic, facilitate smooth flows, protect market entities, expand demands, and stabilize expectations. We will spare no effort to keep the performance of the industrial economy within an appropriate range and embrace the convention of the 20th National Congress of the CPC with concrete measures.

Thank you.

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

In recent years, China has paid increasing attention to and offered greater support for SMEs, and more and more SMEs have reached a consensus on following a development path characterized by specialization, refinement, uniqueness and innovation. As a leading department of the State Council in promoting the growth of SMEs, how does the MIIT view this phenomenon? What supportive measures will be taken to tackle the difficulties facing SMEs?

Xu Xiaolan:

Thank you for your questions. General Secretary Xi Jinping said, "SMEs can make great achievements," and stressed many times that we should work unswervingly to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector, which motivated a large group of enterprises featuring specialization, refinement, uniqueness and innovation. The annual Central Economic Work Conference and government work report always make plans to promote the growth of SMEs. In the past decade, under the strong leadership of the CPC Central Committee, China has provided unprecedented support for SMEs, rolling out a host of policies with higher value than ever before. The system and mechanism driving the growth of SMEs are continuously being improved, the business environment is being significantly optimized, and the concept of SMEs focusing on specialization, refinement, uniqueness and innovation has taken root in people's minds. The core competitiveness of China's MSMEs has significantly increased, contributing greatly to the country's economic and social development. This can be seen from the following three main aspects.

First, SMEs have grown rapidly. By the end of 2021, the total number of enterprises nationwide reached 48.42 million, 2.7 times that in 2012. Among them, over 99% were SMEs. In the industrial sector, the number of China's SMEs above designated size reached 400,000, operating revenues exceeded 75 trillion yuan and total profits reached 4.7 trillion yuan, up 23.5%, 38.7% and 37.1%, respectively, compared with 2012.

Second, SMEs have made great contributions. Data from the fourth national economic census showed that the number of people working in SMEs accounted for 80% of the total number of employees. In 2021, the total number of people working in China's private sector reached 400 million, about 200 million more than in 2012. Private firms, mainly MSMEs, are the largest foreign traders in China, contributing more than 58.2% to the growth of foreign trade in 2021. Research shows that the correlation coefficient of SMEs and regional economic growth exceeds 0.8. Regions with SMEs actively engaged in business are also the popular locations for job hunting and have witnessed greater economic development.

Third, SMEs have demonstrated vitality. Taking the development path of specialization, refinement, uniqueness and innovation has been a distinctive feature of SMEs in China in recent years. More than 60% of little giants are engaged in the basic field of industry, over 70% have been deeply immersed in industry for more than 10 years, more than 80% have entered strategic emerging industrial chains, and over 90% are experts supporting well-known large enterprises at home and abroad. The average R&D intensity of little giants has reached 10.3%, which is 1.8 percentage points higher than that of listed companies. Therefore, it is fair to say that SMEs featuring specialization, refinement, uniqueness and innovation boast a strong capacity in innovation, have great growth potential, and play an indispensable role in strengthening, completing and stabilizing industrial chains.

Only if SMEs prosper can China's economy maintain sound momentum. Going forward, the MIIT will continue to implement preferential policies in a comprehensive way, make full use of various means, and do everything possible to help MSMEs overcome difficulties. We will support them to keep raising their innovation ability and professional level and ensure the stability of these market entities, in an effort to lay a solid foundation for the stability of China's economy. 

Thank you.

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zhonghongwang.com:

We notice that the digital transformation of the manufacturing industry has drawn much attention from the government and enterprises. Would you like to introduce the achievements China has made in the digital transformation of the manufacturing industry? Also, what did we achieve in terms of developing smart manufacturing and the industrial internet? What are the policies that will be taken into consideration in the future? Thank you.

Han Xia:

Thank you for your questions. Digital transformation is a general trend in current global economic development. In recent years, the integration of China's new generation of information and technology in the manufacturing sector has greatly improved. We worked to lay a solid foundation for integrated development and pushed development to a new level. The work was mainly as follows:

First, we deepened the digital transformation. By the end of 2021, the numerical control rate of key processes and the penetration rate of R&D and design tools for digital transformation in industrial enterprises nationwide reached 51.3% and 74.7%, respectively, up 30.7 percentage points and 25.9 percentage points over 2012. With the help of new technologies and applications, China's manufacturing sector has undergone rapid changes in its production methods, enterprises forms, business models, and means of employment, effectively helping the manufacturing sector to improve quality, lower costs, increase efficiency, and pursue a green and safe development. 

Second, we promoted smart manufacturing projects with great effort. We released 42 international standards and more than 300 national standards for smart manufacturing. The penetration rate of national standards, which are fundamental, generally applicable, and are for key technologies, reached 97.5%. We built over 700 digital workshops and intelligent factories. The average production efficiency of smart manufacturing demonstration projects increased by 48%, and the R&D period of products was lessened by 38% on average, with the non-performing rate of products dropping by 35% on average. So far, China has fostered more than 6,000 smart manufacturing system solution suppliers. China now leads the world in the smart manufacturing of refining, printing, and dyeing, as well as home appliances and other sectors. 

Third, we carried out industrial internet innovation and development action plans. We accelerated the building of three systems covering internet, platform, and security. The industrial internet has been applied in 45 major national economic categories. So far, more than 300 cities in China are connected to the high-quality extranets of the industrial internet. An analysis system for industrial internet identification has been basically constructed. The five major top-level nodes have operated steadily. The second-level nodes have almost covered all provincial-level regions in China. More than 150 large industrial internet platforms have been established, connecting over 78 million units (sets) of industrial equipment. A technical monitoring system has been established to coordinate the works at the national and provincial level and that of enterprises. 

Fourth, we made great efforts to enhance the supporting capacity of industries. From 2012 to 2021, the industry scale of China's electronic information manufacturing sector increased from 10.7 trillion yuan to 14.1 trillion yuan, and that of the software industry from 2.5 trillion yuan to 9.5 trillion yuan, both ranking high among the industries in the national economy, playing a fundamental role. The number of industrial apps exceeded 600,000, with those related to operation and management accounting for 70% of the total. The stability and reliability of products have been steadily improved.

Next, we will focus on smart manufacturing, promote breakthroughs in core technologies, continue to improve the policy system for integrated development, and push forward actions for developing industrial internet and smart manufacturing. Efforts will be made to push forward digital, internet-powered, and smart development. Thank you. 

Thank you.

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ThePaper.cn:

China is committed to green development. Especially after China proposed the "dual carbon" goals, we have further accelerated the transformation towards green and low-carbon development. So, what measures has the ministry made to conserve resources, reduce carbon emissions, and promote green transition in the industrial sector? What are the future considerations?

Xin Guobin:

Thank you for your questions. The industrial sector is a major energy consumer and carbon emitter in China. Over the past decade, we have firmly established and acted on the principle of "lucid waters and lush mountains are invaluable assets" and pursued a green, low-carbon, and circular development. We have achieved remarkable progress in the green development of the industrial sector. Here are some data I want to share with you.

In terms of energy and water consumption, the energy consumption per unit of the added value of industries above the designated size fell by 28% and 16%, respectively, during the 12th Five-Year Plan period and 13th Five-Year Plan period. On that basis, it dropped by 5.6% in 2021. The water consumption per 10,000 yuan of the value-added of industry dropped by 35% and nearly 40%, respectively, during the 12th Five-Year Plan period and 13th Five-Year Plan period. On that basis, it dropped by 7% in 2021. In terms of the comprehensive use of resources, in 2020, the comprehensive utilization rate of general industrial solid waste reached 55.4%, and China recycled 380 million tonnes of renewable resources. In terms of fostering new engines for green development, since 2012, the compound annual growth rate of the total output value of the environmental protection equipment manufacturing industry has exceeded 10%. These all demonstrate that China has made remarkable progress in this aspect. 

In pursuit of the goal of energy conservation, reducing carbon emissions, and completing a green transition in the industrial sector, our work over the past decade has mainly given priority to the following aspects. First, we have carried out green manufacturing programs. We have taken solid steps to advance the development of the system of policies and standards for green manufacturing, building a group of green factories, green industrial zones, and green supply chain management enterprises. In the meantime, we have further deepened industry-finance integration, working with relevant financial institutions to build a key project recommendation mechanism to support the transformation of industrial enterprises towards green development.

Second, we have increased the supply of green technological equipment products. We have promoted breakthroughs in technology, attached greater importance to standards, and gradually built a supply system composed of entirely green product chains that cover everything from raw materials to terminal consumer goods. Since the 12th Five-Year Plan period (2011-2015), a total of over 20,000 types of green products and more than 4,000 kinds of technological equipment for energy and water conservation and comprehensive utilization of resources have been promoted.

Third, we have actively advanced the recycling of industrial resources. We have built a group of demonstration bases for comprehensive utilization of industrial resources, implemented standardized management of scrap iron and steel, waste plastics, and other renewable resource industry, and promoted the system for extended producer responsibility. We have built more than 10,000 service outlets for recycling new-energy vehicle batteries and plan to develop a recycling and utilization system for solar photovoltaic cell modules. 

Next, we will fully implement Xi Jinping Thought on Ecological Civilization, launch an campaign to peak carbon emissions in the industrial sector, vigorously promote green manufacturing, and resolutely stop the blind development of energy-intensive projects with high emissions. We will keep advancing the steady development of wind and photovoltaic power and continue to encourage green consumption. By doing so, we are striving to make greater contributions to building a beautiful home with blue sky, green vegetation, and clear rivers.

Thank you.

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Science and Technology Daily:

What are the characteristics of the development of the information and communications industry over the decade? What achievements have been made? And what are the future plans for the development of 5G technology? Thank you.

Han Xia:

Thanks for your question. Since the 18th CPC National Congress, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the information and communications industry has made leap-frog development, with its strategic, fundamental, and pioneering role in the overall economic and social development having become increasingly prominent, providing a solid foundation and strong support for building China's strengths in manufacturing and cyberspace and for building a digital China, which is mainly demonstrated in the following five aspects:

First, with the infrastructure developing from copper wire to optical fiber, from the popularization of 3G technology to the commercial application of 5G technology, the comprehensive capacity has been improved by leaps and bounds. We have built the world's largest internet infrastructure with world's leading technologies. We have completed the transformation from narrow band connectivity to broadband connectivity and from copper wire networks to fiber-optic networks, with fiber-optic networks covering all prefecture-level cities. The number of users enjoying services at speeds of 100Mbps or above accounts for 93.4% of all users, and the number of users enjoying services of gigabit fiber-optic networks has exceeded 50 million. The number of 4G base stations accounts for more than half of the global total, and the number of 5G base stations has reached 1.615 million, with over 400 million 5G mobile phone users.

Second, major breakthroughs in core technologies in key fields have been achieved, and the strength of the technology industry has been significantly enhanced. Mobile communications technology has developed from "making breakthroughs in 3G technology" to "keeping pace with the world in the development of 4G technology" and to "becoming the world leader in the development of 5G technology." And the proportion of 5G standard essential patents declared by our enterprises has reached 38.2%. China has built the world's largest and most complete optical communication industry system, with some key technologies such as optical communication equipment, optical module devices, and optical fiber cables having reached the advanced international level and a number of global-leading companies having emerged.

Third, the innovative application of digital technology has been expanding from areas of consumption to areas of production, and the world's largest and most active digital service market with the greatest potential has been created. Internet applications have been fully popularized. The annual transaction volume of mobile payments has reached 527 trillion yuan. More than 20 million flexible jobs have been created by new industries and new business forms. And the cumulative number of applications in the 5G industry has exceeded 20,000. The innovative development strategy for the industrial internet has been fully implemented, creating China's approach based on the development stage of its manufacturing sector and working on addressing inadequacies, shoring up points of weaknesses, and making innovations at the same time. 

Fourth, information services are of better quality, lower price, and are now a digital service convenience shared by the public. Broadband connection covers all administrative villages in China. The proportion of primary and secondary schools connected to broadband has risen from 25% to 100%, and telemedicine has covered all impoverished counties. We have continued to speed up broadband and lower internet rates, with the average download rate of broadband networks increasing by nearly 40 times and the average rates for mobile internet services dropping by over 95%. Digital travel records have provided nearly 60 billion free inquiry services, strongly supporting regular epidemic prevention and control and the smooth travel of the people.

Fifth, the industry management and safety guarantee system were continuously optimized. A new regulatory mechanism based on credit management has been gradually established, and business operation compliance, the industry's ecosystem openness, and users' satisfaction levels have all been significantly improved. Hotspot and difficult issues such as telecommunication network fraud were effectively dealt with, and the number of complaints from users about spam in the form of short messages dropped to the lowest level in history. The national network infrastructure's security guarantee capability has been comprehensively enhanced, the data security management system in the industry and information fields has been initially formed, and the comprehensive strength of the network security industry has increased rapidly.

Next, we will thoroughly implement General Secretary Xi Jinping's important idea on building China's strength in cyberspace, comprehensively strengthen the construction of new information infrastructure, promote the extensive coverage of 5G networks, implement the "Set Sail" action plan for 5G applications, accelerate the large-scale application of emerging technologies such as 5G, and continue to expand industrial openness and cooperation to contribute to high-quality economic development and continuous improvement of people's livelihoods.

Thank you.

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CNBC:

First, I would like to know how the resumption of work and production of enterprises going in key development regions such as Shanghai and the Greater Bay Area? Second, in terms of chip R&D, what important progress has China made in recent years? In the next step, what are your plans for attracting talent and foreign investment? Third, what is the frequency of accidents in autonomous driving tests? From the policy level, how to balance the safety and commercialization of autonomous driving? Thank you.

Xin Guobin:

Thank you for your questions. You are concerned about many issues, mainly on the resumption of work and production, autonomous driving, and the development of integrated circuits. Let me first answer the questions about the resumption of work and production and autonomous driving.

The Yangtze River Delta and the Pearl River Delta are the most economically developed regions in China, and the resumption of work and production in these regions is our top priority during this period. In our work, we focus on key regions, key industries, and key enterprises, establishing a white list system for key industrial-chain and supply-chain enterprises, enhancing cross-regional and cross-departmental coordination, and are doing everything possible to support enterprises to reopen, stabilize production, and reach their target output. Positive results have been achieved so far. All 22,500 ministerial- and provincial-level whitelisted enterprises have resumed work, and the vast majority of enterprises have returned to their pre-epidemic production levels. In terms of the Yangtze River Delta region, industrial enterprises above designated size in Jiangsu, Zhejiang, and Anhui provinces have resumed work and reached production capacity better than expected. The work resumption rate of industrial enterprises above designated size in Shanghai also reached 96.3%, and the rate of reaching target output exceeded 70%. During the epidemic prevention and control course in Shanghai, key enterprises in the integrated circuit field have maintained a high capacity utilization rate of more than 90%, and the rate of reaching target output in the automotive field has been steadily increasing.

I made a point of checking on them this morning. SAIC Motor's production in early June achieved a year-on-year increase of nearly 60%, and Tesla has achieved full production. Looking at the situation in the Greater Bay Area, industrial enterprises in Guangdong province have basically resumed normal production. At present, the resumption rate of industrial enterprises has exceeded 98%, and key industries such as auto and telecoms, which were greatly affected by the epidemic in the early stage, have basically returned to normal. Many companies expressed their will that they would try to regain the output delayed in March and April through two months of efforts in May and June.

Next, we will follow the general requirements of "the epidemic must be prevented, the economy must be stabilized, and development must be safe," and encourage enterprises to shift from reopening to stabilizing production and reaching target output to ensure that industrial and supply chains are stable and unimpeded.

Regarding the question that you raised about autonomous driving tests, here I have the data of an Intelligent Connected Vehicle (ICV) test demonstration area, and I will introduce some information. In 2021, the total mileage of real road tests in autonomous driving modes in this demonstration area was about 3.08 million kilometers, and there were 21 accidents that were counted, with an average of one accident per every 147,000 kilometers. Such a number is also at an advanced level in the world.

Next, we will continue to coordinate development and safety, adhere to the bottom line of public safety, and make concerted efforts in management policy, technological innovation, standard systems, testing, and demonstrations, etc., and introduce important standards such as functional requirements and information security for autonomous driving. We will also launch market access pilots at the right time to promote the stable and long-term development of the ICV industry.

Vice Minister Xu Xiaolan will now answer your question about chips.

Xu Xiaolan:

I would like to answer the question about chips. China is an important integrated circuit market in the world. In recent years, thanks to the joint efforts of domestic and foreign-invested enterprises, the scale of China's integrated circuit industry has been growing, and the technological innovation capacity in the industry has been sharply enhanced. In 2021, the sales of the whole industry exceeded one trillion yuan for the first time. The compound growth rate from 2018 to 2021 stood at 17%, more than three times the global growth rate over the same period. Upholding the principle of open development, the Chinese government is committed to building global industrial chains and supply chains with close cooperation. In 2020, China issued a package of policies for promoting high-quality development of the integrated circuit and software industries in the new era, treating domestic and foreign-invested enterprises equally. We welcome integrated circuit enterprises around the world to set up R&D, production, and operation centers in China. We encourage more outstanding entrepreneurs and high-quality technical and management talents to come to China for development and share the benefits of the growing market demand. We will focus on policy implementation, step up talent recruitment and education efforts, deepen international cooperation pragmatically, strengthen intellectual property protection, create a fair and equitable market environment to promote high-quality development of the integrated circuit industry. Thank you.

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CCTV:

Since the 18th National Congress of the CPC, several world-renowned super projects have emerged in China, including the Fuxing bullet trains, the Baihetan hydropower project, and the C919 large passenger aircraft. Major technological equipment is an effective means to build super projects. Could you introduce the development of major technological equipment in China? What steps will be taken next to build more major projects in China?

Xu Xiaolan: 

Thank you for your questions. The development of major technological equipment is vital to the lifeblood of the national economy and strategic security. It is an important indicator of a country's overall strength and sci-tech progress. Since the 18th National Congress of the CPC, China has taken major technological equipment as a key area in building itself into a manufacturing powerhouse. It has made breakthroughs in a number of high-quality equipment and nurtured industrial clusters with their respective strengths and characteristics. A number of leading enterprises and related sophisticated enterprises that produce new and unique products are thriving, and the international influence of their brands continues to improve. All of these provide a solid guarantee for the construction of major projects, the development and utilization of energy and resources, and the improvement of people's well-being. For instance, Fuxing bullet trains are well-connected all over China, becoming a faster and more comfortable choice for travel. The manned deep-sea submersible "Fendouzhe," which means "striver" in Chinese, landed on the Mariana Trench, topping the world in terms of the number of 10,000-meter deep-sea diving operations and people involved in the operations. A major breakthrough has been made in developing the C919 large passenger aircraft, which will get a certificate for delivery. The hydroelectric generating set, with the world's largest single-unit and a capacity of 1 million kilowatts, was put into operation at the Baihetan hydropower station, generating electricity to meet the needs of 75 million people a year. The super-sized tunnel boring machine Jinghua was launched to cut through mountains and into the ground to build a well-connected transportation network. A few days ago, the Shenzhou-14 manned spacecraft sent a crew of three astronauts to China's space station, where a national space laboratory will be built, marking that mankind has taken another solid step forward in exploring space. Every time I talk about this, my heart is filled with pride.

Next, we will attach equal importance to the innovation of integration and upgrading of the basis, strive to build an innovation and application ecosystem, and promote the high-end, intelligent, green, and international development of major technological equipment. First, we will strengthen the top-level design and implement plans for major technological equipment and accelerate the building of a major technological equipment system that matches supply and demand with high quality and efficiency. Second, we will strengthen policy coordination to play a leading role in the application, promote the synergy between supply and demand, and increase application. Third, we will enhance openness and cooperation and carry out mutually beneficial cooperation with global innovation resources and industrial factors on a larger scale, in broader fields and at deeper levels, to foster a collaborative and efficient industrial development ecosystem. Thank you.

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Southern Metropolis Daily:

Nearly a decade ago, the MIIT issued China's first regulations on the protection of personal information. This year, regulations on protecting personal information of telecom and Internet users will be revised for the first time. We note that personal information protection has also experienced a process from dispersive legislation to special legislation over the past ten years. What are the priorities and changes of the MIIT's work in protecting personal information against the backdrop of special legislation? Thank you.

Han Xia:

Thanks for your question. Protecting personal information is taking center stage as the internet rapidly develops and various online applications and services are emerging. The MIIT has attached great importance to the protection of personal information. We are thoroughly implementing the Personal Information Protection Law and applying legal norms, administrative supervision, technical support, social co-governance, and other measures to effectively protect personal information.

First, we have actively adapted to technological development and changes and studied and improved the legal system in a timely manner. In 2013, the MIIT issued the first domestic departmental regulation on personal information protection, namely the Provisions on Protecting the Personal Information of Telecommunications and Internet Users. Last year, we drafted the Interim Provisions on the Protection and Management of Personal Information of Mobile Internet Applications. At present, we are revising the Provisions issued in 2013 to determine the liability, enhance application management, and further improve the personal information protection system.

Second, we have focused on the people's concerns and strengthened the governance of prominent issues in protecting personal information in the telecommunications and internet industries. We have launched several special campaigns to crack down on applications' infringement on users' rights and interests and made known and removed nearly 3,000 illegal applications. As a result, the applications' infringement on users' rights and interests was effectively curbed. Next, we will protect users' rights and interests by supervising all existing apps, various terminals, application stores, and software development kit (SDK), among other key entities and areas. 

Third, we have accelerated the improvement of governance capacity by applying more technologies. We launched a national technology platform to detect applications. A total of 3.22 million applications have been detected. Next, a public service platform for detecting and certifying mobile internet programs will be set up to improve automatic detection, big data analysis, monitoring and early warning, certification signature, and ability to provide public services. These measures will provide stronger support for industry governance.

Fourth, we have fostered a favorable governance environment by creating synergy. We have strengthened coordination with relevant departments and ensured the active role of all sectors of society is given full play, forming a co-governance pattern featuring government supervision, corporate self-discipline, social supervision, and user participation. In the future, we will continue to look into new situations and new problems, summarize the new practical experience, refer to successful international practices, strengthen supervision and inspection, and urge enterprises to take their responsibilities and improve their compliance, in order to create a safe, sound and orderly environment for the application of information and communication. Thanks.

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Cover News:

China's new energy vehicles (NEVs) have made rapid progress in the past decade, and the market size has grown to a new high. What are the motivating factors behind this development? How about the construction of NEV charging infrastructure? Where are the bottlenecks that need to be broken down to achieve high-quality development of NEVs in the future, and what is the plan of the MIIT for this? Thanks.

Xin Guobin:

Thanks for your question. NEVs have developed rapidly over the past 10 years. General Secretary Xi Jinping noted that developing NEVs is a sure path to turning China from a large automotive manufacturing country to a country with great strength in the automobile industry. Since the 18th CPC National Congress, China has further promoted the national strategy for developing NEVs and strengthened top-level design and innovation. Its automobile industry has grown from small to large, from weak to strong, becoming an important force for the transformation and upgrading of the global automobile industry.

In terms of production and sales volume, the cumulative sales of NEVs have soared from 20,000 at the end of 2012 to 11.08 million at the end of May this year. Since 2015, China's production and sales of NEVs have ranked first globally for seven consecutive years.

On the technical front, Chinese enterprises in the automobile industry have mastered the underlying control technology based on forwarding engineering, increasing the energy density of NEV power batteries by 1.3 times compared with 2012, and axing their prices by 80%.

Regarding corporate brands, six of the top 10 best-selling electric vehicles in the world in 2021 were produced by China's automakers. Chinese companies occupy six seats among the top 10 companies in terms of power battery shipments.

To create an industry-supporting environment, we have built the world's most significant charging and battery-swapping network for NEVs, with 2,617,000 charging piles and 1,298 battery-swapping stations across the country by the end of last year.

Looking back to the past decade, we deeply understand that the rapid development of the NEV industry is attributable to the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core. We have given full play to the advantages of socialism with Chinese characteristics and stimulated enthusiasm across the society to solve significant problems that restrained industrial development. We have created a unified, open, competitive and orderly market environment. To sum up, we have mainly done the following work to promote the sector's development.

First, we made strategies to lead the coordinated development of the sector. Since 2012, we have worked out two medium- and long-term development plans to navigate the sector's growth based on the facts that it was in initial and early development periods. The first plan spanned from 2012 to 2020, and the second spans from 2021 to 2035. The State Council has founded an inter-departmental joint meeting mechanism led by the MIIT and participated by 20 departments to promote the development of the NEV industry.

Second, we have been improving our policies to nurture the NEV market. The central and local governments have launched over 600 policies covering technology innovation, promotion, application and security oversight to support the NEV industry. For example, consumers can enjoy NEV purchase subsidies, be exempt from particular driving and purchasing restrictions, and use special license plates. These measures have promoted the rapid formation of the NEV market.

Third, we made enterprises into key players in the market and made innovations and breakthroughs in the sector. We implemented an NEV technology innovation campaign and built national manufacturing innovation centers for power batteries and intelligent connected vehicles. The innovation center for power batteries is China's first national manufacturing innovation center. We have also supported enterprises in the upper and lower industry chain to increase R&D spending and create new business models to drive the internal momentum of the sector.

Fourth, we have stuck to open cooperation and facilitated regulated development. We have been promoting the opening up of auto industry in a well-planned way and have built multilateral and bilateral exchange and cooperation platforms such as those with Europe, Japan, and Britain. Several foreign-funded or joint venture NEV businesses have begun operating or manufacturing in China. We also established and improved a management system of the investment approval and production access for NEVs in the country to guide and regulate the sector's orderly development.

We clearly understand that China's NEV industry still has its weakness in some key technologies and supporting capabilities. In the next step, we will study and solve these problems as soon as possible. For example, we are now trying to make decisions through further consultations with related departments on whether the tax exemption for NEV purchasing, which is due to expire by the end of this year, should be extended. Moreover, we will improve the existing dual-credit policy, strengthen R&D and breakthroughs in new batteries and the car's operating system, and launch pilot programs in some cities to electrify all public transportation. We will constantly improve the system of standards and strengthen security oversight. Safety is the prerequisite for the sector's long-term and sustainable development.

That's all. Thank you!

Shou Xiaoli:

Thanks to the three speakers and friends from the media. Today's briefing is now concluded.

Translated and edited by Xu Xiaoxuan, Wang Qian, Zhu Bochen, Li Huiru, Ma Yujia, Zhang Tingting, Wang Wei, Cui Can, Zhou Jing, Xu Kailin, Huang Shan, Zhang Rui, Liu Qiang, Duan Yaying, Yang Xi, Wang Yiming, He Shan, Guo Yiming, Li Xiao, 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.