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Speakers:

Mr. Xin Guobin, vice minister of industry and information technology

Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT) 

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

Chairperson:

Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 19, 2024

Xing Huina:

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

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

Xin Guobin:

Ladies and gentlemen, friends from the media, good morning. Thank you for your continued interest in and support for the development of industry and information technology. Now, I'll brief you on the sector's general situation in 2023.

The year 2023 is pivotal for China, as it is the first year of fully implementing the guiding principles of the 20th National Congress of the Communist Party of China (CPC), a year of economic recovery and development after three years of COVID-19 prevention and control, and a significant milestone year in the country's industrial development. In September, the CPC Central Committee held a national meeting on promoting new industrialization, with General Secretary Xi Jinping providing key directives. This initiative sparked nationwide mobilization and arrangement meetings, igniting a wave of new industrialization efforts across the country. Under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the MIIT, along with other departments and regions, conscientiously implemented the decisions and arrangements made by the CPC Central Committee and the State Council. The focus remained on maintaining stability while seeking progress, accelerating new industrialization and solidifying manufacturing. As a result, the industrial sector maintained an upward trend, and the information and telecommunications sector experienced accelerated growth, contributing to solid progress in high-quality development. In general, the progress in these areas can be characterized by five keywords: stability, innovation, strength, integration and enhancement.

First, by stability, we mean the stable growth momentum has been further solidified. In 2023, a series of policy measures targeted at stabilizing growth proved effective as the total value added of industrial enterprises above designated size grew by 4.6% year on year, or 1 percentage point higher than in 2022. Notably, the value added of manufacturing was up by 5% year on year. Over the past year, the industrial sector showed upward momentum while maintaining stability, with expansion across 10 major industrial provinces and 10 major industries, contributing to overall stable growth. The size of the country's manufacturing sector continued to lead globally for the 14th consecutive year.

Second, by innovation, we mean the new growth drivers were further enhanced. We continued to drive the development of a modern industrial system through technological innovation. We built 27 national manufacturing innovation centers, two manufacturing innovation centers through national and local partnerships, and accelerated the creation of 45 national-level advanced manufacturing clusters. We focused on strengthening the industries we excel in, such as the three new growth drivers of export, namely solar batteries, lithium-ion batteries and electric vehicles, which collectively surpassed an export value of over 1 trillion yuan ($139 billion) for the first time. The shipbuilding industry has continued to dominate the global market, maintaining the largest global share for 14 consecutive years. We have also nurtured other new growth drivers of the economy, such as emerging industries like new materials and robotics, which experienced rapid growth. We have also accelerated the commercialization of major technological breakthroughs. This includes significant advancements in fields like machine tools and key software technologies. Moreover, there have been major achievements in the production and application of large passenger airlines and high-end medical equipment.

Third, by strength, we mean the strong industrial foundation has been further solidified. We have accelerated the technological transformation and upgrading of traditional industries, intensified the promotion of intelligent manufacturing, and established 62 "lighthouse factories," accounting for 40% of the global total. We have built 421 national-level intelligent manufacturing demonstration factories and over 10,000 provincial-level digital workshops and smart factories. We have steadfastly promoted green and low-carbon transformation, with green emerging industries gradually growing stronger. The efficiency of comprehensive utilization of industrial resources has further improved, with the annual utilization of bulk industrial solid waste expected to exceed 2.2 billion metric tons. We continue to enhance the resilience and security of industrial and supply chains, coordinating efforts to address weaknesses and strengthen foundations. Industries such as electronics and software have shown strong resilience in their development.

Fourth, the trend of digital integration has further accelerated. We have vigorously promoted core industries of the digital economy. In 2023, the annual telecom service revenue grew by 6.2% year on year. The electronic information manufacturing industry has stabilized, the software industry has grown in terms of both volume and efficiency, and the internet industry has steadily recovered. Network infrastructure has been continuously strengthened, with service capabilities being continuously upgraded, and our total computing power ranks second globally. The integration of digital and physical systems has been deeply implemented, with 5G applications integrated into 71 of the 97 categories of the national economy, and the industrial internet covering all 41 industrial categories. Capabilities for ensuring network and data security have been continuously enhanced.

Fifth, by enhancement, we mean the business environment was further improved. We have deeply implemented 31 policy measures for the private sector, stimulating the vitality of various types of business entities. In collaboration with relevant departments, we have continuously worked to reduce the burden on enterprises. In the first 11 months of 2023, newly implemented tax cuts, fee reductions, refunds and deferred payments amounted to 1.8 trillion yuan. We have advanced the integration of industry and finance, with the national industry and finance cooperation platform providing up to 712 billion yuan in financing for enterprises. We have focused on supporting the growth of small and medium-sized enterprises (SMEs), cumulatively nurturing 103,000 innovative SMEs that use special and sophisticated technologies to produce novel and unique products, including 12,000 "little giant" enterprises with high growth potential. We have extensively listened to the opinions and suggestions of enterprises, established and improved a regular communication mechanism for manufacturing enterprises, and timely addressed and resolved critical issues.

In 2024, the industrial sector still faces a severe and complex internal and external environment. However, with a complete industrial system, a vast market scale, a well-developed information infrastructure as well as the strong momentum gathered for industrial development following the national meeting on promoting new industrialization, the long-term positive trend of China's industrial sector will not change. We will earnestly implement the arrangements of the Central Economic Work Conference and the national meeting on promoting new industrialization, resolutely fulfill the key task of achieving new industrialization, consolidate and reinforce the positive trend of the industrial sector, promote high-quality development in the information and telecommunications industry, and provide a solid material and technological foundation for building China into a great modern socialist country in all respects and advance the great rejuvenation of the Chinese nation on all fronts by pursuing Chinese modernization.

That concludes my introduction. Now, my colleagues and I are willing to answer your questions. Thank you.

Xing Huina:

Thank you. The floor is now open for questions. Please identify the media outlet you represent before raising your questions.