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Speakers:

Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Su Wei, deputy secretary-general of the NDRC

Mr Ou Hong, deputy secretary-general of the NDRC

Mr. Yang Yinkai, deputy secretary-general of the NDRC

Chaiperson:

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

Date: 

June 28, 2022

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the Publicity Department of the CPC Central Committee. Today, we are holding the 12th press conference under the theme of “China in the past decade.” We have invited Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC) to brief you on fully and faithfully applying the new development philosophy on all fronts and promoting high-quality development and take your questions. Also joining us today are deputy secretary-generals of the NDRC: Mr. Su Wei, Mr. Ou Hong and Mr. Yang Yinkai.

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

Zhao Chenxin:

Friends from the media, good morning. It is a great pleasure for me to attend the press conference with my colleagues and brief you on China's economic development over the past decade.

Since the 18th CPC National Congress, faced with an ever-changing global environment and many risks and challenges, the CPC Central Committee with Comrade Xi Jinping at its core has united and led the whole Party and Chinese people of all ethnic groups in following the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, moving forward in a coordinated manner with the Five-sphere Integrated Plan and the Four-pronged Comprehensive Strategy, acting on the general principle of pursuing progress while ensuring stability, grounding our efforts in the new development stage, fully and faithfully applying the new development philosophy on all fronts, fostering a new pattern of development, promoting high-quality development, deepening supply-side structural reform, pursuing development and safeguarding security, responding calmly to drastic changes and a pandemic both unseen in a century, and working hard to accomplish tasks related to domestic reform, development and stability. We have seen new historic changes in the cause of the Party and the country, and secured historic achievements in reform and opening-up and Chinese modernization. We have realized the first centenary goal of building a moderately prosperous society in all respects. This means that we have brought about a historic resolution to the problem of absolute poverty in China. We have embarked on a new journey to build China into a modern socialist country in all respects and advance toward the second centenary goal.

Over the past decade, China's economic strength has reached a new high. During the transition to high-quality development, China has developed new and better approaches to macro regulation, thus appropriately expanding and steadily upgrading its economic output. China's GDP grew from 53.9 trillion yuan in 2012 to 114.4 trillion yuan in 2021, its share of the global economy rose from 11.3% to 18%, and its per capita GDP grew from $6,300 to more than $12,000. Fruitful results have been achieved in building China into a country of innovators. In 2021, China's ranking on the “Global Innovation Index” rose to 12th, with historic changes in key areas. Major regional strategies have been steadily advanced and steady progress has been made in rural revitalization. The standard and quality of new urbanization have been improved, and the potential has been unleashed for more balanced development between regions and between rural and urban areas.

Over the past decade, new advances have been made in China's reform and opening-up. The country has comprehensively deepened reform with a focus on economic reform. The socialist market economy has become more mature and sophisticated. Steady progress has been made in building a high-standard market system. The systems and mechanisms for the market-based allocation of production factors have been improved. A unified national market is being developed at a faster pace. Positive progress has been achieved in developing the systems underpinning the market economy, such as those for property rights protection, market access, fair competition and social credit. The building of an all-round higher-standard open economy has been accelerated. Joint efforts to pursue the Belt and Road Initiative (BRI) have yielded fruitful results. China has signed more than 200 BRI cooperation agreements with 149 countries and 32 international organizations. The China-Laos Railway has opened, and solid progress has been made in a large number of projects including the Jakarta-Bandung High-Speed Railway. China has promoted trade and investment liberalization and facilitation, with its total stock of overseas investment increasing from less than $600 billion to more than $2.6 trillion. China has actively participated in global economic governance, contributing its wisdom and strength to building a community with a shared future for humanity.

Over the past decade, Chinese people's lives have improved on all fronts. China has scored a complete victory over extreme poverty. The 98.99 million people in rural areas who were living below the current poverty threshold all shook off poverty — a miracle in the history of humankind. Putting the people and their lives first, China has strengthened the policy of preventing imported cases and domestic resurgences of COVID-19, adhered to targeted protocols across the chain of pandemic response and dynamic zero-COVID approach, thus making a major strategic achievement in fighting the virus. The quality of employment has been significantly improved, with more than 13 million new urban jobs being created each year on average. Education has developed vigorously, with the average number of years of schooling received by the working-age population reaching 10.9. China has been transforming from a country with a large labor force to one with strong human resources. Rural and urban residents' access to basic public medical care services has become more equitable. Chinese people's average life expectancy ranks among the top of middle- and high-income countries. A public service system for fitness and sports is basically in place. The social security system has benefited everyone, and the net to ensure the people's basic needs has been consolidated.

Over the past decade, China has made remarkable achievements in ecological conservation. The great notion that lucid waters and lush mountains are invaluable assets has taken root in people's minds, and the system for developing an ecological civilization has taken shape. China has made a solemn commitment to achieving peak carbon emissions before 2030 and achieving carbon neutrality by 2060, and has put in place a "1+N" policy framework for carbon peaking and carbon neutrality. We have vigorously promoted the green transformation of industries and the adjustment of energy structures, accelerated the construction of large-scale wind power and photovoltaic bases, and resolutely stopped the blind development of energy-intensive projects with high emissions and backward production capacity. With such efforts, energy consumption per unit of GDP dropped by around 26.2%. We have continued working to keep our skies blue, waters clear, and lands pollution-free, and met the phased goals for the critical battle of pollution prevention and control. We have also carried out holistic conservation and systematic governance of our mountains, rivers, forests, farmlands, lakes, grasslands, and deserts.

In the past decade, China's economic security has been comprehensively strengthened. For seven consecutive years, the country has maintained its annual grain output above 1.3 trillion jin (650 million tonnes), ensuring basic self-sufficiency in grain and absolute security in staple food, and firmly securing the food supply for the Chinese people. China's capacity to guarantee energy supply has continued to be strengthened, and its production, supply, storage, and marketing systems for coal, electricity, petroleum, and natural gas have continued to be improved. China has also continued to enhance its capacity to ensure the security and stability of industrial and supply chains, and accelerated its pace to make breakthroughs in core technologies of key fields such as 5G, basic software, industrial machine tools, new energy vehicles and smart cars, and renewable energy development, among others. Significant progress has been made in preventing and defusing major risks.

Reflecting on the glorious course of economic and social development since the 18th CPC National Congress, under the guidance of Xi Jinping's economic thought, our country is accelerating its steps to march on a road towards development that is of higher quality, higher efficiency, fairer, more sustainable, and more secure. China's economic strength, scientific and technological strength, comprehensive national strength, and international influence have continued to increase. Therefore, our achievements, which have won the approval of our people and global recognition, will be remembered in history.

As China is experiencing the combined impacts of major changes and a pandemic, both unseen in a century, it is facing many new challenges in pursuing its economic and social development. However, China is still in an important period of strategic opportunity for development, when opportunities outnumber challenges. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, with the institutional strength of socialism with Chinese characteristics, supported by the solid foundation established through economic and social development since reform and opening up, especially since the 18th CPC National Congress, and being capable of addressing various kinds of risks and challenges with rich experiences, we have the confidence, resolve, a foundation, and conditions to promote steady, healthy, and sustainable growth of the economy.

That's all for my introduction. Next, I would like to answer your questions with my colleagues. Thank you.

Shou Xiaoli:

Thank you for your introduction, Mr. Zhao. Next, we'll move on to the question-and-answer session. Please identify the media outlet you represent before asking a question.

China Development and Reform News:

Currently, the internal and external environment for China's development is becoming more complicated and severe, while economic development is facing new downward pressure. Can our country achieve this year's GDP growth target of around 5.5%? How will the government facilitate the policy toolbox to effectively stabilize economic performance? Thank you.

Ou Hong:

Since March, the COVID-19 pandemic and the Ukrainian crisis have led to more risks and challenges, thus China's economy has seen increasing complexity, severity, and uncertainty in pursuing growth and also faced new challenges in ensuring its stable growth, stable employment, and stable prices. In the face of new downward pressure on the economic performance, we must resolutely implement the Party Central Committee's requirements of containing the epidemic, stabilizing the economy, and keeping development secure, focusing on fully implementing all policies that have been introduced. We must also effectively coordinate the epidemic response with economic and social development and effectively coordinate both development and security.

First, we should fully implement all policies that have been introduced. This year's economic work was outlined at the Central Economic Work Conference and in the government work report. Recently, the State Council has also introduced a package of policies and measures to stabilize the economy. We should speed up the implementation of various established policies to deliver results, focus on removing all impediments that restrict the flows of the economy, and actively expand effective demand. We should intensify our efforts to help enterprises ease their difficulties, adopt multiple measures to stabilize employment and work to ensure the supply of essential commodities related to people's livelihoods and stabilize their prices. We should further unleash the policy effect, effectively stabilize the economic performance, and keep major economic indicators within an appropriate range. In the near future, we should, in particular, accelerate the promotion of a number of projects covering water conservancy, transportation, underground utility tunnels, and other areas that secure both short-term and long-term benefits, so that related work can begin as soon as possible. We should implement multiple policies to promote consumption in such areas as automobiles and home appliances and accelerate the release of the consumption potential. 

Second, we should take well-coordinated steps to respond to COVID-19 and pursue economic and social development. As the ongoing pandemic situation remains grave and complex, we must never falter in our commitment to the overall strategy of preventing imported cases and domestic resurgences as well as the general principle of dynamic zero-COVID, and intensify efforts to boost our capacity to control COVID-19 with targeted and science-based measures in all fields in an all-round manner. We must act quickly to review good experiences and practices and apply them on a broad scale, and adjust and improve the response measures in view of the evolving COVID-19. We must resolutely avoid an oversimplified and one-size-fits-all approach, and allow local governments to take excessive policy steps. Meanwhile, we must race against time to further smooth transportation and logistics, and accelerate the resumption of work and production to meet people's basic living needs. We must step up efforts to carry out regular COVID-19 controls and maintain normal production and everyday life to protect people's lives and health to the maximum extent possible and minimize the impact of COVID-19 on social and economic development.

Third, we should balance development and security imperatives. We should firmly maintain bottom-line thinking, manage risks in key sectors and forestall systemic risks. In particular, we should further ensure food and energy security as well as the security and stability of industrial and supply chains. At present, our main task is to accelerate efforts to implement the food crop production strategy based on farmland management and technological application, and improve production, supply, storage and marketing systems. Ensuring safe, clean and efficient utilization, China will release high-quality production capacity of coal in an orderly manner, accelerate the construction of large wind power and photovoltaic bases primarily located in sandy areas, rocky areas and deserts, and promote breakthroughs in core technologies in key sectors.

At the same time, to deal with more complex and difficult situations, we will take into consideration solving difficulties, expand and improve reserved policies regularly, and issue them promptly based on new developments. In view of recent economic developments, we have coordinated the COVID-19 response with economic growth and security in accordance with the requirements of the central leadership. We have brought COVID-19 under control in key regions, boosted the resumption of work and production, and exerted the role of policies to stabilize growth. The economy showed marginal improvement in May, with the main indicators picking up. More importantly, China's economy remains resilient with strong potential and ample room for growth. We have full confidence in overcoming difficulties and challenges in economic operation, and have the ability to cope with changes possible beyond expectations to ensure steady, sound and sustainable economic development.

CCTV: 

Steady and sound economic development cannot be achieved without the support of policies, and macro-control is particularly important. My question is, what experience has been gained in innovating and improving macroeconomic regulation over the past decade? As we enter a new stage of development, how will macro regulation work to better promote high-quality economic development? Thank you.

Zhao Chenxin:

Since the 18th CPC National Congress, in the face of changes in the international environment and new developments and features in economic performance, the CPC Central Committee with Comrade Xi Jinping at its core has made coordinated efforts to advance the Five-sphere Integrated Plan and the Four-pronged Comprehensive Strategy, and carry out the general principle of pursuing progress while ensuring stability. We will uphold and improve socialism with Chinese characteristics and the country's governance system so that the market can play a decisive role in resource allocation, and the government can play a better role. We are refining macro regulation with Chinese characteristics that follows a general rule of the market economy, and making it more forward-looking, targeted and effective.

In terms of innovating and refining macro regulation, we have increased focus on the following five aspects: first, clarifying the philosophy of macro regulation, second, innovating the approach to macro regulation, third, identifying the focus of macro regulation, fourth, expanding regulatory tools, and fifth, enhancing synergy in regulation.

In terms of clarifying the regulation philosophy, we have continually implemented the new development philosophy in a complete, accurate and comprehensive manner, and promoted high-quality development. We have given full play to the strategic guiding role of national development plans and strengthen macro guidance of annual plans. In particular, we have paid more attention to coordinating development and security, and ensured we avoid systemic risks.

In terms of innovating the approach to regulation, we have continued to seek truth from facts and proceed from reality to make economic stability our top priority and pursue progress while ensuring stability. We have enhanced targeted, well-timed and precision regulation on the basis of range-based regulation. We have refrained from resorting to a deluge of strong stimulus policies, relying more on reform and innovation, and making greater use of market forces.

In terms of identifying the focus of regulation, we have accurately grasped the changes to the principal contradictions facing development, and accelerated the establishment of the new development paradigm. With intensifying supply-side structural reform as the main task and expanding domestic demand as a strategic measure, we have stepped up efforts to improve the quality of the supply system and smooth out internal and external economic circulation, and worked toward a higher level of dynamic balance in which supply creates demand and demand guides supply.

In terms of expanding regulatory tools, we have made coordinated efforts to maintain stable growth, advance reform, make structural adjustments, improve living standards, guard against risks and ensure stability. We have ensured that policies are consistent and stable. We have cut taxes and fees on a larger scale, innovated structural monetary policy tools, and reformed the mechanism for setting quoted interest rates on loans. We have focused on structural problems, and improved policies related to science and technology, industries, regions and environmental protection.

In terms of enhancing synergy in regulation, we have integrated central and local efforts, promoted cross-departmental collaboration, and coordinated domestic development with international cooperation. We have also enhanced the policy coordination between different sectors and ensured the evaluation, pre-study and preparation of policies. The worth of any plan lies in its implementation, thus we have made great efforts to ensure that major plans, reforms, and policies have a specific timetable and roadmap, with detailed responsibility division so as to encourage accountability and action. 

Going forward, we will make more effort to develop new ideas and methods for macroeconomic regulation in light of changes in the domestic and international environment so as to promote economic growth in a stable, sound, and sustainable way. 

Red Star News:

Reform of the economic system is the top priority of comprehensively deepening reform. What achievements and progress have been made in economic system reform since the 18th CPC National Congress? What will be the focus of the following-up efforts? Thank you. 

Su Wei:

Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, reforms of the economic system, which aim to balance the relationship between government and market, have been advanced in a comprehensive and systematic manner, with milestone achievements being made in key areas and at key links. As such, the socialist market economic system has become more systematically perfected and mature, and the modernization of the country's system and capability for governance has been advanced in an effective way. New achievements have been witnessed in the following four aspects:

First, new achievements have been made in reforms to spur the vitality of market entities. Top-level design for the state capital and state-owned enterprises (SOEs) reforms has been put in place. The layout and structure of the state-owned sector have been steadily advanced, and breakthroughs have been made in building the modern corporate system with distinctive Chinese features. The mixed ownership sector has witnessed solid development, and the system of state capital supervision by focusing on capital management has been improved. Market-oriented reforms of competitive links in major sectors have steadily advanced. A better development environment has been created for the non-public sector. The number of private enterprises in the country has quadrupled in the past decade from 10.85 million to 44.57 million. 

Second, new achievements have been made in the reform of the market system. An all-around property rights protection system in terms of law-making, law enforcement, and justice is taking shape. We have comprehensively implemented a negative list system for market access and established a fair competition review system to sort through and do away with regulations and practices that impede the development of a unified market and fair competition. We have improved the social credit system, setting up a new-type credit-based supervision mechanism. Accelerated efforts have been made to improve the market-based production factor allocation system where prices are determined by the market, the flow of factors is self-decided and in an orderly manner, and the allocation is efficient and fair. Therefore, a strong domestic market has been created, with its economy surpassing 100 trillion yuan, its population reaching 1.4 billion, and its middle-income earners hitting around 400 million.

Third, new achievements have been made in macroeconomic governance reforms. Continued efforts have been made to improve the macro regulation system that coordinates policies regarding employment, industries, investment, consumption, environmental protection and various regions, with national development plans as the strategic guidance and fiscal and monetary policies as the main methods. New methods for macro regulation have been developed. Regulation practices have been made more flexible and efficient, including range-based, targeted, and well-timed regulations, as well as counter-cyclical and cross-cycle adjustments. As the result, the economy has been running within an appropriate range. We have intensified reforms to streamline government administration, delegate power, improve regulation, and upgrade services, issuing regulations to improve the business environment. We have promoted reforms to the government approval system, greatly cutting the number of items that require government approvals. By doing so, China's business environment has remarkably improved, with its global ranking jumping to 31st from 96th in 2013. 

Fourth, new progress has been made in the reform of the new system for a high-level open economy. A total of 21 pilot free trade zones have been established thanks to coordinated efforts, and more than 260 institutional innovation outcomes have been replicated and applied elsewhere. The Hainan Free Trade Port has gotten off to a good start. The system of pre-entry national treatment plus negative list management for foreign investment has been implemented. We have adopted the foreign investment law. The single-window system for international trade has been established and implemented in the ports nationwide, thus greatly facilitating international trade. 

Going forward, we will step up efforts to promote reforms in four aspects. First, we will strive for the high-level systems underpinning the market economy to ensure full and equal protection for various property rights in accordance with the law. We will refine the negative list system for market access, improving the policy framework and implementation mechanism for fair competition. We will also ensure a law-based social credit system. Second, we will strive to create high-quality market entities. Continued efforts will be made to improve the modern corporate system with distinctive Chinese features. We will deepen the mixed ownership reform in a proactive and steady manner and reform the structure of private enterprises at a faster pace, offering support and guidance to promote the well-regulated and healthy development of capital. More efforts will be made to help Chinese companies become world-class outfits with global competitiveness. Third, we will strive for a high-standard market system. We will advance reforms for the market-based allocation of production factors and pilot a comprehensive reform on the market-based allocation of production factors. We will improve the systems underpinning data-driven factors and build a unified national market at a faster pace. Fourth, we will strive to establish a high-efficiency system of macroeconomic governance. We will improve the system of macroeconomic policies and intensify the synergies of various policies. We will also improve the mechanisms for cross-cycle macro policy adjustment and improve our expectation management system in a bid to keep the major economic indicators within a proper range. 

CNBC:

I have two questions. The first question is, what achievements have been made in terms of foreign investment in the effort to promote high-quality development, and what will be your focuses in the future? My second question is, as the unemployment rate among young people continues to grow higher, people worry that the Chinese economy may come to a halt. What measures are being used to improve the employment of young people and prevent the economy from stagnating in a bid to promote high-quality development? Thank you.

Zhao Chenxin:

Let us invite Mr. Su and Mr. Yang to answer these two questions, respectively. 

Su Wei:

I will answer the question about foreign investment. During the past 10 years, China has unswervingly expanded its opening up and scored significant achievements in utilizing foreign investment. First, utilized foreign investment has increased steadily. China has ranked first among developing countries in attracting foreign investment. China's actual utilized foreign investment in 2021 stood at 1.15 trillion yuan, ranking second worldwide, and up 62.9% compared to 2012. Second, laws for foreign investment have been improved. Coming into effect in 2020, the Foreign Investment Law upholds the basic principle of opening up and stipulates the basic institutions for promoting, protecting, and governing foreign investment. It has provided an all-around and powerful legal guarantee for protecting the rights and interests of foreign investors, reflecting a high-standard opening up. Third, the level of opening up has seen marked improvement. We have shortened the negative list for foreign investment for five consecutive years from 2017 to 2021. The number of restrictive measures nationwide and in pilot free trade zones have been cut to 31 and 27 respectively in 2021. We have introduced a series of major measures to open up manufacturing, mining, agriculture, and finance sectors and attracted more foreign-funded companies to do business in China. Fourth, the environment for foreign investment has been improved. We have conducted a review of laws, regulations, and normative documents that do not conform to the Foreign Investment Law for three years straight. By enacting, revising, and repealing a total of 500 documents, we have guaranteed that foreign-invested companies enjoy fair competition. As one of the largest and fastest-growing markets worldwide, China has a well-organized industry support system, rich human resources, a sound environment for innovation, and unparalleled potential of domestic demand. Foreign-invested companies have been upbeat about China's economic outlook and are willing to deeply integrate into the Chinese market and grow with China's economy. 

Next, the NDRC will continue to implement measures of opening up and stabilizing foreign investment. 

First, we will revise and enlarge the catalog of encouraged industries for foreign investment. In May this year, we issued its draft to solicit opinions and received many suggestions from all areas of society. Now, we are amending and improving the catalog. We will expand the scope of encouraged industries and channel foreign investment into manufacturing, producer services, and other major sectors, as well as into central, western, and northeastern regions.

Second, we will advance major foreign investment projects. The first five batches of foreign investment projects have seen accelerated implementation. Smooth progress has been made in major foreign investment projects like the Sino-Saudi Gulei Ethylene Complex Project in Fujian and the third plant of the BMW Brilliance Automotive in Shenyang. We are identifying the reserves of foreign investment projects in all regions and will release a new batch of major foreign investment projects that can drive development.

Third, we will intensify foreign investment services. We will organize and launch activities to promote international industrial investment and cooperation and build platforms to facilitate the investment of multinational companies and aid local governments to attract investment. We will improve a direct contact mechanism for foreign-invested companies and smooth communication channels, solve the prominent problems companies report in time and meet their reasonable needs, and provide excellent services for foreign-invested companies to expand investment in China.

Fourth, we will improve the environment for foreign investment. We will continue to implement the Foreign Investment Law so that all policies are equally applied to foreign-funded companies to ensure their national treatment. Limitations, except ones on the negative list for foreign investment, will be further removed and protection of intellectual property rights will be strengthened. We will continue to build a market-oriented, law-based, and internationalized business environment. 

Yang Yinkai:

I will answer the question about the employment of young people. Employment is a social and economic issue. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has been committed to a people-centered philosophy of development, implemented the employment-first strategy, and intensified policies in this regard. In so doing, we have made historic achievements in promoting employment. More than 130 million urban jobs have been added in the past 10 years. As a developing country with a population of 1.4 billion, China has achieved relatively full employment. 

Since this year, amid the complex international situation and domestic COVID-19 resurgence, the surveyed urban unemployment rate, especially the unemployment rate of young people, has increased, with young people, including college graduates, facing mounting employment pressure. Since May 2022, positive changes have been seen in employment, as the package of policies to stabilize the economy delivered initial results and relevant policies to promote youth employment and entrepreneurship were implemented.

Next, we will fully implement the decisions and plans of the Party Central Committee and the State Council, continue to intensify macro policy adjustments to promote employment, adopt detailed and effective measures for an employment-first policy, make every effort to expand market-oriented and socialized employment channels, and make efforts to boost the employment of young people, including college graduates.

First, we will strengthen the economic foundation of the employment of young people. We should continue to promote the implementation of policies to stabilize the economy and make new engines of growth. We should develop advanced manufacturing, modern service industries, and strategic emerging industries to create more knowledge-based technical jobs to give full play to the intellectual advantages of young people. We should advance rural vitalization on all fronts, promote new urbanization with a focus on county seats, and encourage college graduates to find employment at the primary level in urban and rural areas or start their own businesses in rural areas.

Second, we will promote employment stability and broaden employment channels by keeping the operations of market entities stable. We will implement policies for easing the difficulties of businesses to promote the resumption of full-capacity production of enterprises and enhance employment in the market. We should guide local governments to implement subsidy policies to support micro, small, or medium-sized enterprises to offer more jobs to college graduates. Micro, small and medium-sized enterprises that hire a certain amount of college graduates and meet relevant conditions will be favored when allotting bail-out funds or offering discounted loans for technological transformation use. 

Third, we will support young people who pursue innovations and start businesses. We will continue to improve the environment for starting businesses, carry out special actions to stimulate employment through entrepreneurship, give play to the path-finding role of innovation and entrepreneurship demo centers, and encourage college students to actively start businesses and find flexible employment. We should guide local governments to implement relevant policies that support college graduates to start their businesses. About 30% of the space provided by government-invested venture carriers will be free for college graduate entrepreneurs.

Fourth, we will strengthen employment services for young people. We will provide continuous employment services to college graduates and other young people and accelerate the recruitment of local civil servants; public institutions; preschool, primary, and secondary school teachers; and community-level employment projects. We should deepen the integration of vocational education with industries, explore the integration of technical training and industrial production, focus on young people, and launch vocational skills training programs on a large scale. We should give greater employment support for young, urban jobseekers facing difficulties in securing employment.

21st Century Business Herald:

My question is about investment. What achievements and progress has China made in the field of investment in the past 10 years? In recent years, China's investment growth rate has shown a downward trend. Where is the further investment space in China? Thanks.

Yang Yinkai:

Thank you for your questions. Since the 18th CPC National Congress, we have fully implemented the decisions and plans of the Party Central Committee and the State Council to proactively expand effective investment, deepen institutional reform in investment and financing, promote private investment, and fully leverage the key role of investment. The steady growth of fixed asset investment has played an important role in the sustained and healthy development of the economy. We have achieved four remarkable results.

First, the scale of investment has grown steadily, and the investment structure has been improved. Accumulative investment in fixed assets in the country totaled 409 trillion yuan from 2013 to 2021, with an average annual growth rate of 7.8%. Over the past 10 years, the investment structure has been continuously optimized. For example, the growth rate of investment in the tertiary industry is faster than the growth rate of overall investment. The investment in the tertiary industry grew at an annual average rate of 8.9% between 2013 and 2021. The share of investment in the tertiary industry grew from 61.7% in 2012 to 66.6% in 2021. In addition, investment in new growth drivers showed bright spots, with investment in high-tech industries growing at an annual average rate of 15%. Also, investment in the social sector has been growing rapidly, with a double-digit growth rate in recent years.

Second, the construction of key areas has achieved remarkable progress, and a number of major projects have been successfully implemented. New infrastructure and new urbanization initiatives and major projects have been accelerated. The construction of new infrastructure, covering fields like 5G and data centers, has been sped up. The construction in the fields of water conservation, railway and energy has been enhanced. We have strengthened the building of weak areas and weak links. The central government invested to increase the area of high-standard cropland by 900 million mu (60 million hectares), providing a solid foundation for ensuring national food security. Investment in fields such as education, medical care, government-subsidized housing, and ecological conservation grew rapidly. Major projects such as the Beijing Daxing International Airport, the Hong Kong-Zhuhai-Macao Bridge, and the Beijing-Xiongan intercity railway were completed smoothly, and the Sichuan-Tibet Railway and the Baihetan hydropower station have made smooth progress.

Third, the reform of the investment and financing system continued to deepen, and the level of investment and development facilitation was significantly improved. Administrative regulations such as the regulations on government investment and the regulations for managing the approval and recording of business-invested projects have been issued, and the investment management system has been improving. The Party Central Committee and the State Council issued the guidelines on deepening reform of the investment and financing systems, revised the catalog of investment projects requiring government review three times, substantially canceled and delegated approval items, and established a new approval and notification filing system for business-invested projects. An online investment approval and supervision platform connecting 62 State Council departments and covering the national, provincial, city and county levels has been built, facilitating investment approval through a single portal. Hence, businesses need to make fewer visits to deliver their demands to government departments, and can turn to online channels. The investment approval process has been improved remarkably. 

Fourth, the investment environment for the private sector has been continuously optimized, and investment vitality has been further enhanced. We have continued to deepen and refine specific measures to encourage the sustainable and healthy development of the private investment. The State Council has issued a series of policies and measures to promote social investment, stimulate private investment, and put idle assets to use. Over the past 10 years, China's private investment has grown steadily, making great contributions to economic and social development. Since 2012, the proportion of private investment in China's total investment has remained above 55%, making it the mainstay of investment growth.

General Secretary Xi Jinping pointed out that it is necessary to actively expand effective investment and give full play to the key role of investment in improving the supply structure. In the next step, we will conscientiously implement the important instructions of General Secretary Xi Jinping, focus on three areas, and actively expand effective investment. First, we will comprehensively strengthen infrastructure construction. We will accelerate the construction of new infrastructure, improve traditional infrastructure, and make a proactive infrastructure layout conducive to leading industrial development and urbanization as appropriate. Second, we will expand investment in manufacturing and high-tech industries. We will increase the transformation and upgrading of traditional industries to enhance the core competitiveness of the manufacturing industry. We will strengthen the capacity for innovation, promote breakthroughs in core technologies in key fields, and advance the industrialization of new technologies and products. Third, we will shore up weak links in areas that are important to people's lives. We will strengthen the building of affordable housing projects and supporting infrastructure, accelerate the renovation of aging urban gas pipelines and the construction of drainage facilities, and focus on strengthening construction in the social sector.

Cover News:

Since the 18th CPC National Congress, China has rolled out major regional development strategies, such as the coordinated development of the Beijing-Tianjin-Hebei region and the development of the Yangtze Economic Belt. May I ask what role the implementation of these major development strategies played in promoting coordinated regional development? And what are the considerations for promoting coordinated regional development in the next step? Thank you.

Ou Hong:

Thank you for your question. Since the 18th CPC National Congress, General Secretary Xi Jinping has looked beyond the horizon, coordinated the overall situation, and accurately grasped the overriding trends at home and abroad. He has personally planned, deployed, and promoted a series of major regional development strategies, such as the coordinated regional development of the Beijing-Tianjin-Hebei region, the Yangtze Economic Belt, and the Guangdong-Hong Kong-Macao Greater Bay Area, the integrated development of the Yangtze River Delta, and ecological conservation and high-quality development in the Yellow River basin. These efforts have led to historic changes and achievements in China's regional development.

First, a driving force to drive China's high-quality development has been cultivated and formed. The Beijing-Tianjin-Hebei region has firmly relieved Beijing of functions nonessential to its role as the capital, promoting regional coordinated development. The construction of Xiongan New Area promotes high standards and quality requirements, and the area is filled with tower cranes and construction is in full swing. Many central government enterprises have started building their new headquarters in Xiongan New Area. The construction of major projects in Beijing's sub-center has achieved remarkable results. The Guangdong-Hong Kong-Macao Greater Bay Area has taken further steps to deepen cooperation. In 2021, the total GDP of Guangdong province's nine cities situated in the GBA exceeded 10 trillion yuan. The vitality of innovation and development in the Yangtze River Delta continues to increase. Meanwhile, the construction of a demonstration zone for integrated ecological and green development in the Yangtze River Delta region and the new area of the Shanghai Pilot Free Trade Zone has also yielded impressive results.

Second, China has embarked on the regional development path which prioritizes ecological conservation and green development. Efforts to protect and restore the Yangtze Economic Belt's ecological environment are progressing steadily. For example, the 10-year fishing ban on the Yangtze River has been fully implemented. Moreover, the Yangtze River Protection Law, the first river basin law in China, was promulgated and implemented. The flood prevention system in the Yellow River Basin has been continuously improved, and the excessive water consumption growth has been effectively contained. The mainstream of the Yellow River has constantly flowed for more than 20 consecutive years.

Third, we have built a regional economic layout featuring mutual complementarity and high-quality development. Under the general requirement of "to make use of the water and mountain resources, grow crops, and develop agriculture, industry or business where conditions permit," all regions have taken the road defined by rational division of labor and optimized development in accordance with their own conditions. The carrying capacity of central cities, city clusters and other advantageous areas for economic development has been further enhanced. The supporting capacity of major agricultural production zones, key ecosystem service zones, energy and resource-rich areas, and border areas has been further improved. New steps have been taken to revitalize and develop regions with unique features. Moreover, recent achievements have been made in the development of the marine economy.

We will further implement major regional strategies for the next step and promote coordinated regional development. First, we will relieve Beijing of functions nonessential to its role as China's capital, develop the Xiongan New Area with high standards and high quality, and bring the coordinated development of the Beijing-Tianjin-Hebei region to a higher level. Second, we will step up the conservation of the Yangtze River and stop its over-development. We will continuously strengthen the protection and restoration of ecological and environmental systems and strive to build the Yangtze River Economic Belt into the main battlefield for green development by prioritizing ecological protection. We will turn it into the artery for smooth domestic and international dual circulation and the main force leading the high-quality development of the economy. Third, we will actively advance the development of the Guangdong-Hong Kong-Macao Greater Bay Area in a steady manner, integrate Hong Kong and Macao into the country's overall development, and build a world-class Bay Area and city clusters full of vitality and international competitiveness. Fourth, we will bring the integrated development of the Yangtze River Delta to a higher level and strive to make breakthroughs in several key areas. Fifth, we will promote the ecological conservation and high-quality development of the Yellow River Basin and conduct the conservation of mountain, river, forest, farmland, lake, grassland, and desert ecosystems and address their degradation at the source in a coordinated way, to fundamentally improve the ecological and environmental quality of the Yellow River Basin. 

Yicai.com:

I have two questions. First, how can we evaluate the progress and effectiveness of price mechanism reform over the past 10 years? What areas can be further improved in the future? Secondly, as we have noticed, prices in Europe and the United States have skyrocketed. What should we do to guard against imported inflation risks? How can we keep the supply and prices of bulk commodities and other commodities essential for people's livelihood stable in the future? Thank you.

Yang Yinkai:

Thank you for your questions. Since the 18th CPC National Congress, China's reform of price mechanism has been further advanced and scored a series of noticeable achievements in accordance with the deployments and arrangements of the CPC Central Committee and the State Council. That progress has been mainly manifested in the following four aspects. 

First, we have substantially narrowed the scope of government-set pricing. A mechanism whereby the market largely determines prices has basically taken shape. We have further promoted market-orientated pricing reform in key areas such as agricultural products, energy and resources, and transportation. Currently, the market decides the prices of all agricultural products, 80% of electricity, 50% of natural gas, and 90% of air passenger transport. By the end of 2021, the marketization of goods and services prices in China had reached 97.5%. The price reform targets set at the third plenary session of the 18th CPC Central Committee have been basically achieved.

Second, we have constantly improved price control mechanisms to ensure the long-term basic stability of the overall price level. We have comprehensively taken measures, including monitoring and early warning, reserve adjustment, guidance on expectations, and market regulation to ensure supply and price stability. We have established price range regulatory mechanisms, including setting a floor, ceiling, and upper- and lower-limit prices for key varieties such as rice, wheat, hogs, refined oil products, and coal to effectively cope with abnormal price fluctuations. From 2012 to 2021, the average annual rate of China's consumer price index (CPI) stood at around 2%, which was essential for promoting long-term and sound economic and social development.

Third, we have strengthened price and cost supervision and established a scientific and reasonable government pricing mechanism for those areas where government pricing is still needed. First, we have listed all relevant prices, included all items for which the central government sets the prices in the pricing catalog and made it public. Second, we have promoted the standardization process of pricing, revised the rules of government pricing, procedures for hearings and methods for monitoring and reviewing costs, and constantly improved the procedures of government pricing. Third, we have accelerated the science-based supervision process, introduced measures for price management and cost supervision and examination in areas such as power transmission and distribution and gas pipeline networks, and established a price supervision system combining constraints and incentives for monopoly industries.

Fourth, we have continuously improved the price mechanism for promoting green development in line with the "polluter pays" principle while benefiting conservationists. First, focusing on the economic and intensive use of resources, we have comprehensively established a tiered price system for residential use of electricity, water and gas, and a progressive pricing system for non-residential use of water exceeding quotas, and implemented a tiered electricity price policy based on energy consumption for the electrolytic aluminum, cement, and steel industries. Second, regarding green and low-carbon energy transformation, we have constantly improved the on-grid pricing policies for wind power and photovoltaic power generation to support the leapfrog development of the industry. Third, focusing on reducing the discharge of pollutants, we have improved the charging mechanism for sewage and garbage treatment and made reasonable adjustments to charging standards.

I will briefly answer your question about preventing imported inflation and ensuring supply and price stability.

Since this year, global inflation continues to rise from an already high level, and the year-on-year increase in CPI in many European and American countries has hit a 40-year high. Relatively speaking, prices in China have been kept within the appropriate range. In May, China's CPI rose by 2.1% year on year, which was significantly lower than those of other major economies. This has fully demonstrated China's resilience in economic growth, effectiveness in macro regulation and precision in price regulation.

For some time to come, geopolitical conflicts and other factors may bring to China relatively large imported inflation pressure. However, with generally sufficient market supply and policy tools, China has all the necessary conditions, capability and confidence to keep prices stable. General Secretary Xi Jinping has repeatedly emphasized that it is essential to ensure the supply and price stability of important livelihood commodities and bulk commodities and to keep the overall price level basically stable. Next, following the important instructions of General Secretary Xi Jinping, we will focus on three respects in our work. First, we will do our best to ensure the supply and price stability of livelihood-related commodities, stabilize production and supply, strengthen the coordination between production and sales, and leverage the buffering role of reserves and adjusting role of imports and exports. We will keep the supply and prices stable of livelihood-related commodities such as grain, oil, meat, eggs, milk, fruits and vegetables, and especially better regulate hog production to prevent price fluctuations. Second, we will continue to redouble efforts to ensure bulk commodities' supply and price stability. We will improve the production, supply, storage and marketing systems for coal, accelerate the release of high-quality production capacity, improve the coal market price-setting mechanism, and guide coal prices to be kept within the appropriate range. We will make more efforts to explore and develop domestic mineral resources, strengthen the adjustment of imports and exports, and enhance the ability to guarantee supply. Third, we will continue to strengthen market supervision, closely track market changes, maintain a high level of supervision, severely crack down on activities violating laws and regulations, such as hoarding and profiteering, as well as price gouging, and resolutely curb excessive capital speculation.

Zhonghongwang.com:

We have noticed that uncertainties have mounted in the current international grain market. How will this impact China's food security? In addition, what measures will the NDRC take to ensure the safe and stable supply of grain and other critical agricultural products? Thank you.

Ou Hong:

Thank you for your questions. Since the 18th CPC National Congress, General Secretary Xi Jinping has presented a series of important proposals on ensuring national food security and emphasized that we must always have control over our own food supply, with the main supplier being China itself. China's annual grain output has increased by nearly 70 million tonnes in the past decade, remaining above 650 million tonnes for seven consecutive years.

Since this year, due to various factors, including the COVID-19 pandemic and the Russia-Ukraine conflict, international food prices have risen sharply, which has inevitably affected our domestic food prices. However, the increase in domestic food prices is significantly lower than that in the international market. China's grain supply is fully guaranteed, and this year's summer grain is bound to have a good harvest. We are faced with many risks and challenges in achieving the goal of ensuring the basic self-sufficiency of grains and absolute food security. Still, through hard work, we have the foundation and conditions to achieve it. The NDRC will work with relevant departments to unswervingly promote the implementation of the grain production strategy based on farmland management and technological application. We will focus on increasing production, optimizing structure, enhancing capabilities, and guiding consumption, and ensuring national food security at a higher level to better meet the people's ever-growing needs for a better life. 

First, we will increase production. We will increase support for grain production, adhere to and improve the minimum purchase prices policy for rice and wheat and the grain-growing subsidy system, speed up efforts for grain insurance, and ensure reasonable income for grain growers and keep their enthusiasm. We will prioritize limited water and soil resources to produce rice, wheat and other food and consolidate and increase corn production capacity. We will vigorously promote the strip-shaped composite planting of corn and soybeans and further focus on producing soybeans, rapeseed, peanuts and other oilseed crops to improve production levels.

Second, we will optimize the structure. We will implement the "big food" concept (developing food resources in an all-round and multi-channel way), adhere to the principle of growing grain, developing the economy and grazing in light of actual conditions, and foster a modern agricultural production structure and regional layout that are compatible with market demand and carrying capacity of resources and the environment. We will, on the premise of ensuring national food security, promote the combination of land use and land fertility improvement, take more decisive action to address agricultural pollution from non-point sources, and realize the green development of agriculture. We will actively cultivate new types of agribusiness entities, vigorously develop producer services, develop appropriately scaled agribusiness operations of various kinds, and continuously make grain production more modernized.

Third, we will strengthen capacity. We will enhance the protection of cropland and scale up the development of farmland. We will work to properly implement the plan for developing high-standard farmland and continuously upgrade low- and medium-yield cropland. We will also accelerate the development of high-efficiency water-saving irrigation and construct or upgrade a number of medium and large irrigated areas in regions with suitable water and soil conditions. We will further carry out chernozem soil conservation projects and turn suitable saline-alkali lands and other land reserves into cropland in a proper and orderly manner. We will strengthen the development of the modern seed industry and other supportive technological measures, launch the initiative on seed industry vitalization, make efforts to improve the modern seed industry, and speed up construction of the systems concerning grain production, purchasing, storage, processing and sales.

Fourth, we will provide more guidance to the consumption side. We will guide the orderly development of intensive grain product processing, and avoid the situation where people and animals compete for food due to intensive grain product processing. We will work to better ensure the supply of corn that is used for animal feed and develop intensive corn processing in a reasonable manner. We will proactively promote moderate processing technologies that reduce food loss and waste. We will also implement the Anti-Food Waste Law, carry out the action plan on saving food, ramp up efforts to promote the consumption of health services, and guide food consumption from excess toward being healthy and nutrition-centered. We will work to develop a science-based and sound diet structure and a social atmosphere that features diligence and frugality. Thank you.

ThePaper.cn:

Since the 18th CPC National Congress, China's energy industry, and especially the new energy sector, has registered rapid growth. What are the plans for securing China's energy security? In addition, recent reports state that China plans to build over 200 pumped-storage hydroelectric projects in more than 200 cities and counties during the 14th Five-Year Plan period (2021-2025). Could you explain the development plans for the nation's pumped-storage hydropower industry? Thank you.

Zhao Chenxin:

Thank you. I'll take these questions. Since the 18th CPC National Congress, the NDRC has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and earnestly implemented the decisions made by the CPC Central Committee and the State Council. Focusing on safeguarding energy security, the NDRC has expedited its efforts to carry out the new strategy on energy security and strived to create a clean, low-carbon, safe and highly efficient energy system. As a result, our systems for energy production, supply, storage and marketing keep improving, which has offered robust and reliable energy guarantees for building a modern socialist country in all respects.

First, the energy production capacity has improved significantly. By phasing out outdated production capacity at an accelerated pace and developing quality production capacity, we have continuously optimized the structure and distribution of the coal production capacity. In 2021, the size of single wells of the average coal mine has increased by more than one time compared with 2012, and the output of large-scale coal mines with an annual yield of over 1.2 million metric tons accounts for more than 80% of the total. In terms of electricity, electricity production capacity has increased rapidly, especially wind power and photovoltaic power. By the end of 2021, China's total installed power generation capacity reached 2.38 billion kilowatts, double that of 2012, with an average annual growth rate of 8.4%. Specifically, the total installed capacity of wind and photovoltaic power reached 635 million kilowatts, nearly 90 times that of 2012. In terms of petroleum and natural gas, by continuously boosting exploration efforts, China's output of crude oil in 2021 amounted to 199 million metric tons, and the annual output has remained at around the 200-million-threshold for a decade. China's output of natural gas reached 207.58 billion cubic meters, nearly 100 billion cubic meters more than that in 2012, nearly doubling in amount.

Second, the capability of guaranteeing energy supply has improved significantly. Coal transport capacity has seen great improvements. With railway lines such as the Haoji Railway and Watang-Rizhao Railway being completed and put into operation, China's cross-regional coal transport capacity, namely from north to south and from west to east, has been greatly enhanced. Power transmission from large-scale clean energy bases has been carried out in an orderly manner, and more channels are being built for cross-provincial and cross-regional power transmission. By the end of 2021, electricity transmission lines of 220 kilovolts and above in China totaled 843,000 kilometers, and the capacity of substation equipment reached 4.94 billion kilovolt-amperes, 1.7 times and 2.2 times that of 2012, respectively. The distribution of petroleum and natural gas pipelines has also continued improving, and the infrastructure network in this regard is taking shape. By the end of 2021, the length of China's petroleum and natural gas pipelines reached 180,000 kilometers, double that of 2012. All these figures are fairly convincing.

Third, the energy storage capacity has improved significantly. Coal storage facilities of enterprises keep improving, and coal-related emergency response capability is enhancing. The adjustment capacity of China's power sector has seen great improvements, and its peak-shaving ability is increasing steadily. Flexible manufacturing and renovation of coal-fired power plants have been rolled out in a comprehensive manner. Power storage technologies continue to be developed, and related industrial applications keep being upgraded. We are also continuously optimizing the reserve system for petroleum and natural gas, and have established a stable and highly efficient system in this regard.

Fourth, the energy market system keeps improving. We have built a unified domestic coal trading market and are continuously working to optimize it. We have also rolled out market-oriented reforms in the electric power sector and developed a market-oriented mechanism to coordinate the prices of electricity and fuel. Mr. Yang has already briefed you on the issues concerning prices earlier. In 2021, the amount of electricity traded in the domestic market reached 3.7 trillion kilowatt hours, accounting for 44.5% of total electricity consumption. This is a remarkable achievement. We have also ramped up regulation in the petroleum market and built a natural gas market system featuring orderly competition and efficient supply. Institutional reforms concerning petroleum and the natural gas sector have seen tangible progress.

In general, over the past decade China has quickened the step to establish and improve the systems for energy production, supply, storage, and marketing, and the country's capacity to provide a safe and stable supply of coal, electricity, oil, and gas has continued to increase, providing solid support for economic and social development.

In addition, I would like to give a brief response to the development of China's pumped storage hydropower industry you mentioned just now. With the increasing scale and proportion of renewable energy in China, it is more and more important to improve the peak-shaving ability of power systems through pumped storage hydropower plants. In recent years, the construction of pumped storage hydropower stations in China has been accelerating, the number of projects has increased significantly, and distribution areas have constantly expanded. China has successively built a number of world-leading pumped storage hydropower stations, which have played a very good and effective role in the field's development. By the end of 2021, the installed capacity of pumped storage hydropower stations nationwide had reached 36.39 million kilowatts, an increase of nearly 80% over 2012, with an average annual growth rate of 6.7%. In 2021, the nationwide pumped storage hydropower generation reached 39 billion kilowatt-hours (kWh), an increase of more than three times that of 2012, with an average annual growth of 17.3%, which indicates that the operation efficiency of such plants is very good. Next, the NDRC will organize local governments and enterprises to further strengthen efforts to promote the development of pumped storage hydropower stations across the country, improve guaranteed energy supply capacities, boost the level of absorbing electricity generated from renewable energy sources, and accelerate the construction of a new power system.

China News Service:

Data shows that the scale of high-tech industries has doubled in the past decade. What has the NDRC done in the field of innovation and high-tech development? What's the next move to improve the level and competitiveness of industrial technologies? Thank you.

Yang Yinkai:

Thank you for your questions. Since the 18th CPC National Congress, General Secretary Xi Jinping has made a series of major arrangements for firmly establishing a new development philosophy and deeply implementing the innovation-driven development strategy. Over the past decade, China's scientific and technological innovations have undergone historic, overall, and structural changes. China has risen from 34th place 10 years ago to now ranking 11th on the Global Innovation Index 2022 list and has successfully entered the ranks of innovative countries. China has made great achievements in innovative and high-tech developments in four aspects.

First, the high-tech industry is now larger. Over the past decade, the business revenue of high-tech industries has doubled from 9.95 trillion yuan in 2012 to 19.91 trillion yuan in 2021. The proportion of high-tech manufacturing in the added value of industries above designated size increased from 9.4% in 2012 to 15.1% in 2021. The number of high-tech manufacturing industrial enterprises above designated size has increased from 24,600 in 2012 to 41,400 in 2021, and many leading innovative enterprises with international competitiveness have emerged.

Second, the quality of high-tech products is better. Over the past decade, the R&D investment intensity of the high-tech industry has increased from 1.68% in 2012 to 2.67% in 2021, realizing a significant transformation of "from 0.23 percentage points lower than the R&D investment intensity of the whole society to 0.23 percentage points higher." Flatscreen TVs, drones, smartphones, solar photovoltaic modules, and other products are greatly favored by the international market, while China's high-speed trains, third-generation nuclear power plants, manned space flights, BeiDou navigation tools, and other pillar projects have become new national business cards. The international image of China's high-tech products has fundamentally changed.

Third, the high-tech industry has a stronger foundation. Over the past decade, we have always placed basic research and cutting-edge technology development in a prominent position; laid out and built more than 40 major scientific and technological infrastructures, including the Shanghai Synchrotron Radiation Facility (SSRF); and made every effort to build international scientific and technological innovation centers in Beijing, Shanghai, and the Guangdong-Hong Kong-Macao Greater Bay Area, as well as building comprehensive national science centers in Beijing's Huairou District, Shanghai's Zhangjiang Town, Hefei City, and the Greater Bay Area. Basic research funds increased three-fold, and the number of domestic invention patents and PCT (Patent Cooperation Treaty) international applications jumped to number one in the world. China has built the world's largest 5G network, with the number of internet users reaching 1.032 billion in 2021, helping it maintain the title of the world's largest online retail market for nine consecutive years.

Fourth, the vitality of innovation, entrepreneurship, and creativity is stronger. Over the past decade, we have vigorously deepened the reform of the system and mechanisms and created a good environment for innovation. China has become a fertile soil for vigorous innovation and entrepreneurship in the world. The number of newly established entities in the market per day is constantly increasing, and the tax amount of newly increased tax-related entities since 2013 has reached 4.76 trillion yuan. China's digital economy is booming, and its scale ranks second in the world. The development and application of new technologies such as artificial intelligence, blockchain, quantum communication, and intelligent driving are at the forefront of the world's industries. Express delivery, telehealth service, online offices, the "new individual economy," the "unmanned economy," and other new business formats and models continued to emerge, creating hundreds of millions of flexible jobs.

Next, we will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the innovation-driven development strategy, regard innovation as the primary driving force for development, and strengthen our science and technology to provide strategic support for China's development. We will coordinate development and security, give full play to the advantages of the nationwide pooling of efforts and resources on key national undertakings, boost our strategic scientific and technological strength, and reinforce the principal position of enterprises in innovation. We will focus on major, cutting-edge, and basic technologies and continue to improve the ecology of innovation, entrepreneurship, and creation. In these ways, we will strive to become one of the leading innovative countries and a global power in science and technology at an early date.

Thank you.

Phoenix TV:

How has the Belt and Road Initiative (BRI) progressed over the past eight years since it was proposed? In addition, this year marks the 25th anniversary of Hong Kong's return to the motherland. How can Hong Kong better participate in and contribute to the BRI?

Su Wei:

In 2013, General Secretary Xi Jinping proposed the pioneering initiative of jointly building the Belt and Road. Over the past nine years, we have upheld the principle of extensive consultation, joint contribution and shared benefits, stayed committed to the vision of open, green and clean cooperation, and pursued the goal of high-standard, people-centered and sustainable development. The BRI's international cohesion, appeal, and influence have continued to increase and solid new achievements have been made.

First, our circle of friends has grown bigger. Jointly building the BRI has continuously consolidated and expanded the scope of cooperation. Up to now, China has signed more than 200 cooperation documents with 149 countries and 32 international organizations, and the coordination of development plans has been promoted. Jointly building the BRI has been included in documents of major international institutions, including the United Nations, the G20, the Asia-Pacific Economic Cooperation and the Shanghai Cooperation Organization. 

Second, infrastructure connectivity has yielded fruitful results. A large number of cooperation projects have been implemented. The China-Laos Railway has been officially implemented, and the passenger turnover and freight transport volume have grown steadily. The Beno section of the Hungary-Serbia railway in Serbia has been successfully opened to traffic. The longest tunnel of the Jakarta-Bandung high-speed railway has been finished. Gwadar Port has become a regional logistics hub and industrial base. Moreover, the China-Europe Railway Express has opened up a new channel for land transportation between Asia and Europe. As of May 2022, 55,493 China-Europe Railway Express trips had been made, transporting 4.8 million standard containers. This provided strong support for ensuring that the international supply and industry chains were stable and unimpeded. In particular, during COVID-19, the freight volume bucked trends and increased, showing strong development resilience, and becoming a flagship project of jointly building the BRI.

Third, economic and trade exchanges and cooperation have continued to develop. The international market for the BRI has been continuously expanded. As of May 2022, the total volume of trade in goods between China and countries along the routes had reached approximately $11.8 trillion, and non-financial direct investment in countries along the routes had exceeded $140 billion. China has signed Authorized Economic Operator (AEO) mutual recognition agreements with 32 countries and regions, and trade liberalization and facilitation have been continuously enhanced.

Fourth, international cooperation in emerging areas has continued to expand. There are many highlights in digital and innovative international collaboration. China has actively participated in the global response to COVID-19 and cooperated with the BRI countries in vaccine production, contributing to bridging the immunization gap. China has implemented the philosophy of green development and issued and implemented policy documents such as the Opinions on Promoting Green Development in Jointly Building the Belt and Road.

Fifth, the diversified investment and financing system has been continuously improved. The investment and financing channels for jointly building the BRI have been constantly expanded, and the "Guiding Principles on Financing the Development of the Belt and Road" and "Green Investment Principle for the Belt and Road Initiative" have been steadily promoted, effectively expanding the financing integration of the BRI countries. The transaction volume and influence of China's Cross-Border Interbank Payment System (CIPS) are steadily increasing. 

Sixth, people-to-people and cultural exchanges and cooperation have continued to expand. Jointly building the Belt and Road has promoted diverse cultural and people-to-people exchanges. More than 10 flagship cultural exchange and educational cooperation projects, including the Luban Workshop, have been established. Moreover, organizations such as the Silk Road International Leagues of Theatres, Museums, Arts Festivals, Libraries and Art Galleries, and the Alliance of International Scientific Organizations are all operating well. These projects effectively enhanced exchanges, understanding and recognition among different cultures.

Now, I will address Hong Kong's participation in the joint building of the BRI. This year marks the 25th anniversary of Hong Kong's return to the motherland, and the practice of One Country, Two Systems has entered a new stage. The central government and all walks of life in Hong Kong have high expectations for the new Hong Kong SAR government. To implement the Outline of the 14th Five-Year Plan (2021-2025) and support Hong Kong's participation in and contribution to the BRI, we will give full support to Hong Kong in leveraging its strengths, consolidating and enhancing its competitive edge, deeply participating in jointly building the BRI, and achieving prosperity and development while better integrating and serving the overall development of the country.

Shou Xiaoli:

Thank you, Mr. Zhao, Mr. Su, Mr. Ou, Mr. Yang and all the journalists for your participation. That's all for today's press conference.

Translated and edited by Zhou Jing, Zhang Rui, Gong Yingchun, Liu Sitong, Liu Jianing, Yuan Fang, Wang Mengru, Yan Bin, Huang Shan, Qin Qi, Wang Yiming, Xu Xiaoxuan, Li Huiru, Liu Qiang, Wang Yanfang, Ma Yujia, Duan Yaying, Wang Qian, Zhang Liying, Yang Xi, Zhu Bochen, David Ball, Jay Birbeck, and Tom Arnsten. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.