National Business Daily:

Currently, there is considerable downward pressure on investment, and last year's Central Economic Work Conference clearly called for "halting the decline in investment and promoting its stabilization." Could you please introduce the measures proposed in this year's government work report to stabilize investment? Thank you.

Shen Danyang:

I would like to invite Mr. Chen to answer this question.

Chen Changsheng:

Thank you for your question. Investment is generally regarded as a highly volatile variable and therefore receives close attention. The slowdown in fixed-asset investment has indeed attracted widespread attention. As one of the key priorities of macroeconomic regulation this year, the Central Economic Work Conference called for efforts to stabilize investment and halt its decline. Given China's current stage of development, investment growth has moderated as the economic structure adjusts, the real estate sector undergoes adjustment, and much of the traditional infrastructure has already largely been completed. At the same time, it is important to note that the structure of investment is improving. While real estate investment has weakened, investment in many other sectors, particularly emerging industries, has remained robust. For example, investment in the information services sector grew by 28.4% last year, while investment in aerospace and equipment manufacturing rose by 16.9%. In this process, it is also important to recognize that a new round of investment potential is emerging. Major initiatives such as the national water network, a new round of power grid upgrades, next-generation communications networks, and computing power networks will all drive substantial investment. Demand for urban renewal is also considerable. In addition, this year's campaign to expand capacity and improve quality in the service sector, along with the continued growth of emerging industries, will create new opportunities for private investment. Other areas are also worth noting. In the past two years, the government work report has repeatedly emphasized investing in people and the raising of living standards. At the same time, investment in intangible assets, such as digital assets and intellectual property, is also expanding rapidly. Experience from many developed countries shows that these types of investment have enormous growth potential.

Specifically, stabilizing investment will be advanced mainly from the following three aspects. First, we will fully leverage the guiding role of government funds and the driving force of major projects. A close review of the government work report and its announced figures shows that this year's government investment funds — including central budgetary investments, implementation of major national strategies and enhancement of security capacity in key areas, local government special bonds, and equipment upgrades — will exceed 5 trillion yuan. Combined with local matching funds, the total scale is substantial, and its driving effect is highly anticipated.

The second pillar is the driving force of major projects. As you know, this year marks the start of the 15th Five-Year Plan period (2026-30), and the draft Outline has already mapped out 109 major projects, adhering to the principle that "funds follow projects." While some funds are struggling to find suitable projects, these major projects are well-planned and mature, and will therefore exert a strong pulling effect.

Second, we will step up efforts to make scenarios more accessible to stimulate investment. You reporters often travel to localities, and we also conduct local research. We have observed some changes in recent years. In the past, during our research visits, enterprises mainly appealed for policy and financial support. In recent years, they have increasingly urged for the government to accelerate the openness of scenarios. Accelerating the openness of scenarios is a pressing demand for businesses. The Government Work Report also made arrangements in this regard. On the one hand, regarding traditional scenarios, we will improve the long-term mechanism for private enterprises to participate in the construction of major projects, such as railways, water conservancy, and energy projects, with more opportunities opening to them. Some local governments are already putting the policy into action. In their local government work reports, they have proposed opening projects such as nuclear power and offshore wind power to private capital and set minimum shareholding ratios. On the other hand, we will accelerate the openness of application scenarios in emerging fields, including biomedicine, aerospace, and the low-altitude economy as highlighted in the Government Work Report. —These are key emerging fields with the potential to become pillar industries. For example, the low-altitude economy has seen rapid growth in recent years, with mature applications already established in areas like agricultural and forestry plant protection and inspection and surveying. Therefore, the next step is to speed up the opening of airspace resources and streamline low-altitude flight approvals This will unlock more application scenarios for low-altitude logistics and urban governance. These new scenarios, along with service robots, are set to open up new opportunities for private investment.

Third, we will deepen reforms to unlock investment potential. For example, we will both optimize and relax market access in the service sector, making it clear that apart from requirements related to environmental protection and public health, no other restrictive clauses may be set in violation of regulations. In addition, we will accelerate the revision of the Bidding Law and the Government Procurement Law this year, which will benefit private investment and facilitate cross-regional investment for small and medium-sized enterprises (SMEs), unlocking new investment opportunities for businesses and ensuring fairer competition. We will also push forward price reforms to help enterprises to achieve commercial viability, while dismantling hidden barriers to ensure more equitable access to production factors down the line. All these reforms are designed to invigorate private investment. We hope that these measures will bring about positive changes in investment this year. Thank you.