Jiupai News:

We are now in the homestretch to achieve this year's economic and social development goals. Based on data from the first 10 months, can this year's economic development targets be smoothly reached? Thank you.

Fu Linghui:

Thank you for your question. Since the beginning of this year, amid complex changes in the international environment, growing external headwinds, a domestic market characterized by strong supply and weak demand, and persistently low price levels, various regions and departments, under the strong leadership of the CPC Central Committee, have accelerated the implementation of more proactive and effective macro policies, furthered the construction of a unified national market, advanced reform and opening up, and strengthened innovation-driven development. The national economy has withstood pressure and achieved overall stability while also ensuring progress. Looking forward to the next stage, although the economic performance still faces multiple risks and challenges, the core conditions supporting the long-term positive growth of China's economy remain firmly in place. With macro policies continuing to take effect, market space gradually expanding, and new quality productive forces being cultivated and strengthened, many of the conditions for achieving this year's targets are favorable.

First, the economy has maintained stable overall performance. As reflected in the four major macroeconomic indicators, the economy has maintained a stable trajectory, laying a solid foundation for achieving this year's targets. Economic growth has been relatively rapid. In the first three quarters, GDP grew by 5.2% year on year, ranking among the top of the world's major economies. From January to October, the added value of industrial enterprises above designated size and the service industry production index increased by 6.1% and 5.7% year on year, respectively, maintaining rapid growth. Employment and prices have remained generally stable. In October, the surveyed urban unemployment rate continued to decline, and the consumer price index turned from a year-on-year decrease to an increase, showing positive changes. A basic equilibrium was maintained in the balance of payments. From January to October, the total imports and exports of goods increased by 3.6% year on year, and foreign exchange reserves remained stable at over $3.3 trillion at the end of October.

Second, the potential of demand has continued to be unleashed. Supported by various measures in the dedicated campaign to boost consumer spending, market sales have steadily increased, with total retail sales of consumer goods in the first 10 months growing 4.3% year on year, outpacing the previous year. The tourism, cultural and sports sectors and online spending remained strong, injecting new momentum into spending expansion. China has also unswervingly expanded opening up and diversified its markets, demonstrating sustained foreign trade resilience. In the first 10 months, China's imports and exports with ASEAN, the EU and Belt and Road partner countries increased by 9.1%, 4.9% and 5.9%, respectively, all outpacing total goods trade growth. In the next stage, we will strengthen domestic economic circulation while promoting positive interplay between domestic and international economic flows, which will be conducive to expanding market space and further boosting market demand.

Third, new quality productive forces are being fostered and strengthened. The integration of technological innovation and industrial innovation has accelerated. New quality productive forces represented by AI, the digital economy and green economy are being developed at a faster pace, and new industries and new growth drivers are thriving, providing fresh impetus to high-quality economic development. Intelligent product manufacturing has shown strong growth momentum. In the first 10 months, the added value of intelligent unmanned aerial vehicle manufacturing and intelligent on-board equipment manufacturing increased by 54.7% and 25.5% year on year, respectively. Green material production has maintained rapid growth. In the first 10 months, the output of bio-based chemical fibers, and carbon fibers and composite materials rose by 18.9% and 12.8%, respectively.

Fourth, macro policies have continued to take effect. Since the beginning of this year, more proactive and effective macro policies have been implemented; efforts to implement major national strategies and enhance security capacity in key areas, along with large-scale equipment upgrades and consumer goods trade-in programs, have demonstrated tangible effects; and the construction of a unified national market has been further advanced. These efforts have boosted demand and production while improving economic flows, all of which have played an important role in stabilizing the economy. Recently, relevant departments have launched a 500-billion-yuan new-type policy-based financial instrument and activated unused local government debt quotas to enhance local fiscal capacity and expand effective investment. At the same time, measures have been introduced to further stimulate private investment. As existing and newly introduced policies take combined effect, they will fuel the upward momentum of the economy.

It should also be noted that recent positive changes in market supply and demand, gradual improvements in business performance, and the continued accumulation of favorable factors have all contributed to economic growth. In October, the decline in the PPI narrowed for the third consecutive month, and profits of industrial enterprises above designated size from January to September increased by 3.2% year on year, with the growth rate continuing to rise.

In summary, China's economy is underpinned by a solid foundation, multiple strengths, strong resilience and vast potential, with many factors supporting its positive development. In particular, the successful fourth plenary session of the 20th CPC Central Committee, which drew a blueprint for development in the next five years, has greatly boosted the confidence of people of all ethnic groups across the country and injected strong momentum into high-quality development. China's economy is therefore well-positioned to achieve overall stability while also ensuring progress. Thank you.