Read in Chinese

Speakers:

Mr. Zhao Zhiguo, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT) and director general of the Information and Communications Management Bureau of the MIIT

Ms. Tao Qing, director general of the Bureau of Operation Monitoring and Coordination of the MIIT

Chairperson:

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

Date:

April 20, 2023

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Zhao Zhiguo, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT). He will brief you on the development of industry and information technology in the first quarter of 2023, and take your questions. We're also joined by Ms. Tao Qing, director general of the Bureau of Operation Monitoring and Coordination of the MIIT.

Now, I'll give the floor to Mr. Zhao for a brief introduction.

Zhao Zhiguo:

Ladies and gentlemen, friends from the media, good afternoon. Thank you for your consistent interest in and support for the industry and information technology sector. Next, I'll brief you on the sector's development in the first quarter of this year.

Since the beginning of this year, in the face of a complex and fast-changing external environment and various difficulties, risks and challenges, the MIIT, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, has thoroughly implemented the guiding principles of the 20th CPC National Congress and earnestly put into practice the decisions and deployments made at the Central Economic Work Conference and the annual "two sessions." The MIIT has prioritized ensuring stable growth and proactively collaborated with all localities and government departments in implementing related policies to accelerate the resumption of work and production, enhance efforts to ease businesses' difficulties, and maintain stable performance of industrial sector. In general, the industry and information technology sector has started off stably this year, with a positive trend to follow.

First, the industrial sector has maintained stable operation, evidenced by three key factors. For starters, industrial production has rebounded steadily. In the first quarter of this year, the added value of China's industrial enterprises above the designated size rose by 3% year on year, a 0.3 percentage point increase from the fourth quarter of 2022, reversing the continuous downward trend in growth since last October. According to statistics from the China Association of Automobile Manufacturers (CAAM), the production and sales of automobiles in March increased by 15.3% and 9.7% year on year, respectively, and that of new energy vehicles (NEVs) in the same period surged by 44.8% and 34.8% year on year, respectively. The second aspect is that manufacturing investment kept growing steadily. In the first quarter of this year, manufacturing investment grew by 7% year on year, 1.9 percentage points higher than fixed-asset investment in the country, maintaining a comparatively fast growth rate despite the high comparison bases over the past two consecutive years. The third aspect is that the leading role of major industrial provinces has become more prominent. The industrial growth rate of major industrial provinces, including Hebei, Shandong and Jiangsu, is significantly higher than the national average. The industrial sectors of Guangdong, Zhejiang and other provinces have also seen an upturn since March.

Second, advanced manufacturing demonstrated a sound growth momentum. General Secretary Xi Jinping stressed that we must firmly pursue high-quality development as our primary task. Premier Li Qiang's first research trip outside Beijing also focused on the development of advanced manufacturing, which sent a clear message of China's resolve to vigorously develop the sector. We have made every effort to boost advanced manufacturing and ensure that manufacturing becomes higher-end, more intelligent and more eco-friendly. We have carried out industrial foundation reengineering projects and research projects on major technologies and equipment. Major progress has been made in some sectors. For example, the ARJ21 aircraft have transported over 6.55 million passengers and have recently been put into commercial operations overseas. The world's largest container vessel, with a capacity of 24,188 TEUs, has been deployed for service in China. The country also successfully developed its first homegrown extracorporeal membrane oxygenation (ECMO) device and granted approval for it. We also implemented projects for intelligent manufacturing and promoted the digital transformation of industry. The three major functional systems of the industrial internet, namely those concerning networks, platforms and security, have been established, and the scale of the core industry has surpassed 1.2 trillion yuan ($170 billion). We also expedited our efforts to guide the transformation of industry toward eco-friendly and low-carbon development. We accelerated efforts to develop emerging industries such as the NEV and photovoltaic sectors. In the first quarter of this year, fixed-asset investment in the high-tech manufacturing industry increased by 15.2% year on year, and the production of emerging products such as NEVs and solar cells surged by 22.5% and 53.2% year on year, respectively.

Third, the empowering role of the information and telecommunications sector has continued to grow. We have spared no effort to develop new types of infrastructure and ensure it effectively supports high-quality socioeconomic development. In the first quarter of this year, the business revenue of China's telecom industry increased by 7.7% year on year. We worked to promote the construction of the "dual gigabit" internet in a steady manner. Over 2.64 million 5G base stations have been built, and the number of gigabit internet users has exceeded the 100 million mark. We continued to promote the integration of internet applications into industrial sectors, with 5G technology fully applied in 52 major sectors of the national economy. We improved the capacity of applications and services and further enhanced the supply of mobile internet applications and services. We accelerated the promotion of demonstration cases for elderly-friendly and barrier-free internet applications across the country. We also coordinated development and security by rolling out policies that bolster the development of industries concerning data security, strengthening the protection of key information infrastructure, and ensuring the safe and stable operation of basic telecommunications networks.

Fourth, the environment for industrial development was further improved. We adhere to an approach characterized by an efficient market and a well-functioning government, aiming to create an ecosystem conducive to industrial development. We thoroughly implemented the development plan for the industrial and information technology sector during the 14th Five-Year Plan period, and organized efforts to formulate work plans for stabilizing growth in major sectors such as automobiles and electronics. Regarding the pressing difficulties and problems facing small- and medium-sized enterprises (SMEs), the MIIT worked with related government departments and rolled out a series of policy measures to help businesses stabilize growth, adjust their structures, and strengthen their capacities. The MIIT also launched the fifth round of work to develop "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge. It also convened this year's working session for the State Council's inter-ministerial joint meeting on reducing business burdens. The MIIT made efforts to precisely align industries with financial resources, and the national platform in this regard has helped enterprises raise more than 500 billion yuan in total.

Of course, we need to be aware of the current difficulties and challenges facing the development of the industrial sector. However, the fundamentals underpinning the long-term robust growth of China's industrial sector remain unchanged, and we maintain our confidence in it. Looking forward, the MIIT will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and earnestly implement the decisions and deployments made by the CPC Central Committee and the State Council. The MIIT will act with firm confidence, push for innovation, stabilize the development of major sectors, and support the growth of leading enterprises and enterprises with high growth potential, advanced technology and strong market competitive edge. The MIIT will work to boost existing strengths, develop new advantages, and shore up weak links in a bid to ensure the sustained upturn of the industrial sector and accelerated growth of the information and telecom industry in the second quarter. This will lay a solid foundation for the accomplishment of the annual targets and tasks.

That concludes my introduction. Next, my colleague and I will take your questions.

Shou Xiaoli:

Thank you, Mr. Zhao. The floor is now open for questions. Please identify the media organization you work for before asking your questions.