Zhou Jianshe:

Thank you, Mr. Fu, for your introduction. The floor is now open for questions. Please identify the news outlet you represent before asking your questions.

CCTV:

The key economic indicators for May have been released. How would you evaluate the overall performance of the national economy in May? In addition, what are the main highlights of the current economic performance? Thank you.

Fu Linghui:

Thank you for your questions. In May, high temperatures and heavy rainfall in parts of China weighed on market demand and supply, compounded by a complex and volatile international environment and the continued spillover effects of geopolitical conflict in the Middle East. However, various localities and government departments effectively implemented more proactive macroeconomic policies, and actively responded to external challenges and overcame domestic difficulties. As a result, production and supply grew steadily, new growth drivers accelerated, employment and livelihoods were effectively guaranteed, and the national economy maintained a generally stable and positive development trend. Specifically, the economy shows five main features.

First, production has maintained steady growth. In agriculture, this year's summer grain production is strong, and a bumper harvest is expected. In industry, innovation has played a stronger leading role and production has risen steadily. The value added of industrial enterprises above designated size grew 4.5% year on year in May, 0.4 percentage point higher than the previous month. Equipment manufacturing has effectively supported industrial production, becoming an important driver of its acceleration. In May, the value added of equipment manufacturing grew 9.5% year on year, contributing nearly 80% of overall value-added growth among enterprises above designated size. In services, modern services have shown good growth momentum and producer services have developed well, driving faster growth across the sector. The service production index rose 4.4% year on year in May, 0.1 percentage point faster than the previous month. Among them, the production index for leasing and business services increased 10.9% year on year, maintaining rapid growth. Meanwhile, rapid growth in industrial production also boosted demand for freight transportation. In May, the production index for transportation, warehousing and postal services rose 4.8%, 0.5 percentage point faster than the previous month.

Second, new growth drivers are emerging. Sci-tech and industrial innovation are converging, digital-intelligent integration and green transformation continue to deepen, and emerging industries are growing rapidly, providing strong support for high-quality economic development. High-end manufacturing is developing well. In May, the value added of high-tech manufacturing industries above designated size rose 15.1% year on year, 2.3 percentage points faster than the previous month. Emerging service industries are thriving. In May, the production index of information transmission, software and information technology services increased 11.3% year on year. From January to April, operating income at enterprises above designated size in high-tech services and strategic emerging services both maintained rapid growth. Digital consumption grew rapidly, with online retail showing strong momentum. Online retail sales of goods and services increased 5.9% year on year from January to May.

Third, foreign trade has shown strong resilience. Against a backdrop of challenging global economic and trade growth, China's imports and exports maintained relatively rapid growth, reflecting both the strengths of a major manufacturing country and the resilience and vitality of its economy. In May, the total value of China's trade in goods rose 16.9% year on year, 2.7 percentage points faster than the previous month. Both exports and imports maintained double-digit growth. China's rapid growth in trade in goods has made a positive contribution to global economic and trade development and to the stability of global industrial and supply chains.

Fourth, people's livelihoods have been well protected. Employment is the most basic component of people's well-being. Since the beginning of this year, all localities and government departments have intensified efforts to stabilize employment, helping keep the overall employment situation stable. In May, the national surveyed urban unemployment rate was 5.1%, down 0.1 percentage point from the previous month. The surveyed urban unemployment rate for the main working-age population aged 30-59 and for migrant workers with agricultural household registration both fell from the previous month. Price changes are closely connected to people's daily lives. Despite fluctuations in the international energy market, China strengthened the supply of essential goods, keeping consumer prices generally stable. China's consumer prices rose 1.2% year on year in May, unchanged from April. The market supply of major agricultural products is sufficient, and food prices have remained generally stable, falling 1.7% year on year in May. Facing an early summer, higher temperatures and rapid growth in electricity demand in some areas, regions across China strengthened power supply guarantees. In May, power generation by industrial enterprises above designated size increased 4.2%, 1.6 percentage points faster than in April. Power supply for both households and enterprises remained well secured.

Of course, many unstable and uncertain external factors remain, and the domestic imbalance between strong supply and weak demand is still prominent. Some enterprises face difficulties in production and operations, and the foundation for steady economic improvement still needs strengthening. Moving ahead, we must fully implement the decisions and plans of the CPC Central Committee and the State Council, further strengthen macroeconomic policy adjustment, and continuously expand domestic demand and optimize supply. We must also focus on keeping employment, enterprise operations, markets and expectations stable and strengthen innovation-driven development. Ultimately, we must deepen reform and opening up to promote high-quality economic development. Thank you.