CCTV:

The external environment remains highly complex, and domestic economic growth faces many challenges. How do you view the economic trajectory for the next stage? Will the expected growth target be achieved? Thank you.

Mao Shengyong:

Thank you for your questions. This year marks the start of the 15th Five-Year Plan period. The first quarter of this year and the full-year trend are both being closely watched. The first quarter often serves as a bellwether for the full year. As noted earlier, the economy got off to a good start in the first quarter. This shows that China's economy has a solid foundation, diverse strengths, strong resilience and great potential, boosting confidence across the board in the country's economic development. At the same time, we must also recognize that the international environment remains complex and volatile, uncertainties and unpredictable factors may increase, and the domestic economy faces certain difficulties and challenges in its operation. That said, we remain fully confident. Overall, opportunities outweigh challenges, and solutions outnumber difficulties. China has strong institutional advantages, as well as long-standing industrial, market and talent strengths. Therefore, we are well-positioned to maintain stable economic performance and achieve high-quality development throughout the year. This can be understood from several perspectives.

First, the economy's strong start in the first quarter has laid a solid foundation for stable performance and for achieving this year's targets. China's GDP grew 5% in the first quarter. Other major economies have yet to release their first-quarter figures, but the preliminary estimates of related indicators suggest China will likely remain among the top performers worldwide. This growth rate was achieved despite a more complex external environment and a relatively high base from last year. This year's economic expansion is predominantly driven by the cultivation of new quality productive forces, innovation-driven development, and the accelerated growth of new growth drivers. Meanwhile, other indicators remained relatively stable, with positive changes in prices and gradual improvements in corporate profits. This solid start has set a firm foundation for the rest of the year.

Second, the shift toward innovation-driven, high-quality industrial development continues to inject new impetus into economic growth. The industrial foundation that supported the strong first-quarter start still has room to sustain relatively good growth in the second quarter and for the full year. New growth drivers continue to play a leading role. Their rapid expansion, driven by technological progress and industrial upgrading, is sustainable and resilient enough to meet both domestic and overseas demands. Market surveys showed that orders remain plentiful in some industries and for some products, with certain companies unable to keep up with demand. Journalists may already be aware of conditions at some companies and in some sectors. Various emerging industries are indeed growing very fast, suggesting there's still room for relatively quick growth next quarter and over the full year.

Third, domestic demand has generally improved, creating favorable conditions for sustained economic growth. In the first quarter, domestic demand improved overall, driven by policies supporting equipment upgrades and consumer goods trade-ins as well as policies for implementing major national strategies and building security capacity in key areas. First-quarter data showed domestic demand contributed 84.7% of GDP growth, up nearly 30 percentage points year on year. As mentioned earlier, market sales are gradually recovering, and investment growth has turned positive compared with last year. In particular, imports of consumer goods increased 5.4% in the first quarter, indicating a gradual recovery in domestic demand and creating conditions for sustained economic growth. In addition, the potential of service consumption has been gradually released. Relevant departments have introduced a series of favorable policies to continuously support and encourage the development of related industries. Not long ago, the national conference on the service sector was held in Beijing, proposing high-caliber policies and suggestions to promote the sector. Relevant departments are thoroughly studying how to implement them.

Fourth, high-standard opening-up continues to deepen, opening new space for economic development. China has a very strong foundation for trade. Over the years, experience has repeatedly shown that regardless of shifts in the external environment or the severity of the challenges it faces, the country's foreign trade has consistently demonstrated strong resilience. This can be attributed to enterprises working hard to build their core strengths, raising the technological sophistication of their products and overall competitiveness, alongside supportive foreign trade policies. Looking ahead, despite some uncertainties on the horizon, trade still has the potential to maintain relatively strong growth.

Fifth, policies have been implemented forcefully and effectively, safeguarding the stable operation of the economy. This year marks the start of the 15th Five-Year Plan period. A large number of policies have been introduced in the early stages, some of which have already taken effect, with further impacts expected to follow. A series of major strategic tasks, reform measures and projects will be rolled out one after another. At the same time, there is ample policy space and an abundant reserve of policy tools, with policy effectiveness continuing to improve. All departments are currently focusing on implementing the key tasks outlined in the government work report. Fiscal policy continues to exert force, while structural monetary policy tools provide additional support for key areas such as expanding domestic demand, scientific and technological innovation, and micro, small and medium-sized businesses. Special actions to boost consumption are further advanced, with greater efforts to promote employment and income growth for urban and rural residents and to expand the "AI Plus" initiative. Together, these measures will provide a strong guarantee for stable economic operation going forward.

Facing such a complex external environment, China has the strength and confidence to meet any risks and challenges. This confidence comes from years of accumulated experience and underpins our firm optimism about future development. Thank you.

Jia Huili:

That concludes today's press conference. Thanks to the speaker and all the participating journalists. Goodbye, everyone.

Translated and edited by Zhu Bochen, You Jiaxin, Dong Qingpei, Yang Chuanli, Xu Kailin, Liao Jiaxin, Liu Jianing, Lin Liyao, Gong Yingchun, Mi Xingang, Zhou Jing, Huang Shan, Li Huiru, Ma Yujia, Liu Qiang, Liu Sitong, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.