Bloomberg: 

Investment last year was a key driver of economic growth, but local government finances are seeing increasing stress because of the cost of COVID zero and the housing slump. What's your estimate for infrastructure investment this year? And based on the information we have, are there enough quality projects qualified to use that 3.8 trillion yuan quota for local special government bonds? Thank you.

Yang Yinkai:

Thank you for your questions. Last year, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the NDRC worked together with relevant parties to actively expand effective investment. In 2022, China's fixed-asset investment increased by 5.1% year on year. Infrastructure and manufacturing investment grew by 9.4% and 9.1%, respectively, playing an important role in stabilizing the overall macroeconomic market.

This year, we will fully implement the guiding principles of the 20th CPC National Congress and the Central Economic Work Conference. We will continue to expand effective investment and make solid progress on major projects. We will effectively drive investment of the whole society through government investment and policy incentives. We will consolidate the sound momentum of steady growth in infrastructure investment and manufacturing investment and enhance the key role of investment in improving the supply structure. We will focus on the following four aspects.

First, we will focus on weak links and accelerate construction in key areas. We will implement the 102 major projects listed in the country's 14th Five-Year Plan (2021-25) in an orderly manner. We will strengthen food security, energy security, and the security of industrial and supply chains. We will accelerate the construction of major infrastructure in transportation, water conservation, energy and other fields. We will also strengthen investment in manufacturing and high-tech industries and develop a systematic layout for new infrastructure. Moreover, we will accelerate the renovation of aging urban gas pipelines, address urban waterlogging, and promote social programs regarding people's livelihoods.

Second, we will give full play to the role of a package of investment policies and advance the development of major projects in a coordinated way. We will adhere to the requirement that projects follow their planning and that investment funds and other production factors stay with the projects they are allocated to. We will fully use our experience and actions in promoting the coordination mechanism for key projects of effective investment and continue to improve and expand the long-term working mechanism for effective investment. According to the report from the State Council on the execution of the central and local budgets for 2022 and on the draft central and local budgets for 2023, as well as the draft central and local budgets for 2023 submitted to the first session of the 14th National People's Congress for deliberation yesterday, investment from the central government budget will reach 680 billion yuan this year. Next, we will further improve the investment mix and pool all resources to accomplish major tasks and deal with difficulties and emergencies at the national level. We will organize relevant authorities to prepare for special-purpose bond projects for local governments, urging local governments to accelerate the issuance and use of special-purpose bonds, and kick-start and advance the projects. We will continue to accelerate the creation of policy-based and developmental financial instrument projects, which began last year, and make efforts to do much more work.

Third, we will build up the number of investment projects in reserve and continue to raise the quality of preliminary work for investment projects. We will guide local governments to keep building up a reserve of major projects securing both short-term and long-term benefits to lay the foundation for expanding effective investment. We will urge local authorities to launch in-depth preliminary research and demonstration for projects, effectively improving the quality and efficiency of preliminary work for projects. We will coordinate with relevant authorities to strengthen the support of land use, environmental protection assessments, and other factors of production.

Fourth, we will further stimulate private investment and continue to improve the investment environment. We will establish and enhance the mechanism of private investors' participation in the development of major projects. We will fully use the mechanism for facilitating cooperation on investment and financing of nongovernmental capital to encourage more private capital to get involved in developing major national projects to strengthen areas of weakness. We will promote advanced experience and earnestly implement the policy documents supporting the development of private investment. We will guide private capital to use idle assets in various ways and promote high-quality private investment projects to issue infrastructure REITs.

Concerning your question about special-purpose bonds for local governments, special-purpose bonds have now become important sources of funding for construction projects of local governments. According to the arrangement and requirements of the State Council, next, we will take practical measures to fulfill the duties of establishing criteria for investment and screening projects. We will guide local authorities to continue to plan for and build up a reserve of special-purpose bond projects. Rolling groups of projects will be applied and launched one after another. We will tighten the review of projects and urge local authorities to follow the principle that investment funds and other production factors stay with the projects they are allocated to and choose projects from a list of projects in reserve we have screened and established for bond issuance. I would like to emphasize that all projects included in the list of projects in reserve are infrastructure and public service projects that conform to planning, are led by governments, will be launched sooner or later, and have certain benefits. Meanwhile, in addition to the bond issuance in the areas of transport, energy, agriculture, forestry and water conservancy, social programs, utilities and industrial parks, and new types of infrastructure, we will follow the decisions and arrangements of the Party Central Committee and the State Council and work with relevant authorities to actively explore and further expand the areas for the issuance of special-purpose bonds. Thank you.