Yicai:
Sporadic cases have been reported in several regions, and the base number for the first quarter of last year was relatively high. In this context, what do you think of the industrial growth rate in the first quarter of this year, and what measures will be taken to boost the industrial economy? Thanks.
Tian Yulong:
That's a good question. Mr. Luo Junjie will answer it.
Luo Junjie:
Thanks. Mr. Tian has already mentioned this issue. Facing the downward pressure on the industrial economy, we have been formulating new development policies in collaboration with relevant departments since the second half of last year. In the fourth quarter, the MIIT and the National Development and Reform Commission jointly issued an implementation plan for invigorating the industrial economy and promoting high-quality industrial development. The plan, which includes 16 policy measures to stabilize industrial growth from four aspects, effectively boosted the industrial economy in the fourth quarter of last year. Currently, the industrial economy's recovery is stuttering and we have been facing significant downward pressure in the first quarter of this year due to a range of factors. Globally, there are many uncertainties about the pandemic and the world's economic growth and trade are sluggish. Domestic factors include concerns about supply constraints, weak consumption and investment demand, difficulties facing SMEs, sporadic COVID-19 outbreaks, the base effect, etc. Well aware of the situation, we made plans early and took proactive measures. At the end of last year, we made arrangements to ensure a stable start for industrial performance during the first quarter of this year. Local industry and information technology authorities were required to help enterprises organize operations during the New Year's Day and Spring Festival holidays, strengthen the supply of production factors such as raw materials and labor, and resume work and production after the Spring Festival holiday. In the next step, we will faithfully implement the guiding principles of the Central Economic Work Conference, prioritize stability and pursue progress while ensuring stability. We will continue to strictly observe virus prevention and control protocols and implement existing policies and measures. Meanwhile, we will respond to new developments and roll out more effective measures in collaboration with other departments in terms of finance and taxation, ensuring supply and price stability and supporting the development of SMEs. We will carry out anticipatory, fine-tuning, and cross-cycle adjustments. We will take a series of measures and spare no effort to ensure steady industrial growth in the first quarter, which will act as a "ballast" for the overall economic development. Specifically, we will do the following:
First, we will work hard to boost investment in the manufacturing sector. We will give play to investment's key role in stabilizing industrial growth and accelerate the launch of major projects listed in the country's 14th Five-Year Plan, as well as the corresponding five-year plan in the field of industry and information technology. We will establish a mobilization and service mechanism for major programs in collaboration with relevant departments and local governments. At the same time, we will strengthen the cooperation between industry and finance, encourage and support enterprises to increase investments and guide financial institutions to bolster their support for the digitalization and green transformation of enterprises.
Second, we will actively guide and expand consumption demand. We will seize opportunities from the shopping seasons associated with traditional festivals, such as Spring Festival and Lantern Festival, and unleash the potential of the huge domestic market and tap into residents' consumption potential. We will further implement the strategy of increasing the variety and quality of products and nurturing domestic brands, promote the upgrade of information consumption, and boost the development of the intelligent connected vehicle (ICV) industry, the smart health and senior care industry, as well as the ice and snow equipment industry. We will expand the consumption of new energy vehicles and encourage the use of green smart home appliances and green building materials in the countryside where conditions permit.
Third, we will work to ensure the supply and coordination of energy factors. We will precisely unclog bottlenecks within industrial chains and supply chains, address chip shortage issues, container shortages and labor shortages, accelerate efforts to ensure and coordinate factors of energy, logistics and labor force, prioritize the stable operation of key industrial chains and supply chains, with an emphasis on addressing the chip shortage in the auto industry and maintaining the smooth operation of key component supply chains.
Fourth, we will boost the role of the new impetus as a growth driver. We will stimulate new dynamics of economic growth through upgrading traditional industries with digital and smart technologies and create big, strong emerging industries, improve the multi-level system of industrial internet platforms, deepen the integration and application of 5G and gigabit fiber-optic networks in the manufacturing, mines, energy, agriculture and transportation sectors to contribute to the digital transformation of those industries. We will actively expand applications for virtual reality and smart health and elderly care products, as well as foster emerging industries such as big data, artificial intelligence and Internet of Vehicles. Thank you.
