Global Times:

Since the beginning of this year, the growth rate of investment has continued to slow down. What is the main reason behind this? What do you think of the investment data in the first half of the year? And what is the outlook for future investment growth? Thank you.

Fu Linghui:

Thank you for your question. Investment is an important field for expanding domestic demand. Since the beginning of this year, due to the adjustments to the real estate market, the growth rate of fixed asset investment has slowed down, but all regions and departments have implemented the plans and arrangements of the Party Central Committee to actively expand effective investment, optimize the investment structure, promote major infrastructure construction, support enterprises to increase investment in innovation, and maintain sustainable growth of fixed asset investment. In the first half of the year, the fixed asset investment increased by 3.8% year on year, the investment structure continued to be optimized, and investment in key areas continued to strengthen.

First, infrastructure investment grew rapidly. Concerted efforts have been made to promote major infrastructure construction, such as transportation and water conservancy, and the results became more evident. In the first half of the year, infrastructure investment increased by 7.2% year on year, of which investment in railway transportation and water conservancy management increased by 20.5% and 9.6%, respectively. The construction of new infrastructure moved forward steadily, laying a good foundation for long-term economic and social development. In the first half of the year, investment in new infrastructure construction increased by 16.2% year on year, of which investment in new information infrastructure such as 5G and data centers increased by 13.1%, and investment in new integrated infrastructure such as industrial internet and smart transportation increased by 34.1%.

Second, manufacturing investment continued to grow. The manufacturing industry is showing strong momentum in upgrading and development, and investment in capital and technology-intensive industries is growing rather rapidly. In the first half of the year, manufacturing investment increased by 6% year on year, of which investment in equipment manufacturing increased by 14.4%, playing a significant role in supporting the growth of investment in manufacturing. The pace of green transformation of the manufacturing industry has accelerated, and investment in new energy vehicles, lithium battery manufacturing and other industries has maintained rapid growth. In the first half of the year, investment in automobile manufacturing and electrical machinery and equipment manufacturing increased by 20% and 38.9%, respectively, year on year.

Third, the innovation investment demonstrated good growth momentum. Investment in innovation represented by high-tech industries and technical services, continued to increase, and its role in supporting investment growth was enhanced. In the first half of the year, investment in high-tech industries increased by 12.5% year on year, significantly faster than the growth of total investment. Enterprises' growing demand for technical services drives the continuous increase of investment in related industries. In the first half of the year, investment in professional technology and technological achievements transformation increased by 51.6% and 46.3% year on year, respectively.

Fourth, investment in emerging fields expanded. As the digital transformation of the economy continues to deepen, related investments have maintained rapid growth. In the first half of the year, investment in electronics and communication equipment manufacturing and e-commerce services increased by 14.2% and 22.2%, respectively. The green transformation of energy has accelerated, and investment in clean power has increased. In the first half of the year, investment in clean power increased by 40.5% year on year, of which investment in solar and wind increased by 84.4% and 16%, respectively.

All these show that although investment growth has slowed this year due to multiple factors, the investment structure has continued to be optimized, and its support for future development has gradually increased. In the next stage, we will continue to give full play to the role of government investment and policy incentives and guidance, effectively stimulate private investment, continue to optimize the investment structure, and improve investment efficiency to promote high-quality economic development. Thank you.