SCIO briefing on China's economic performance in 2020
Beijing | 10 a.m. Jan. 18, 2021

The State Council Information Office (SCIO) held a press conference in Beijing on Monday about China's economic performance in 2020.

Speaker

Ning Jizhe, commissioner of the National Bureau of Statistics

Chairperson

Hu Kaihong, head of the Press Bureau of the State Council Information Office (SCIO) and spokesperson for the SCIO

Read in Chinese

Speaker:

Ning Jizhe, head of the National Bureau of Statistics

Chairperson:

Hu Kaihong, spokesperson for the State Council Information Office of China

Date:

Jan. 18, 2021


Hu Kaihong:

Ladies and gentlemen, good morning and welcome to this press conference. 2020 was an extraordinary year in which China's economic performance attracted wide attention at home and abroad. Today, we are delighted to invite Mr. Ning Jizhe, head of the National Bureau of Statistics (NBS), to introduce China's economic performance in 2020, and answer your questions.

Now, I would like to give the floor to Mr. Ning.

Ning Jizhe:

Friends from the media, good morning. Let me start by introducing China's economic performance in 2020. China's economy recovered steadily during the year, with major economic indicators surpassing expectations. In 2020, faced with a grave and complex situation both at home and abroad, and the huge impact of the epidemic in particular, under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core, all regions and departments adhered to the general working guideline of making progress while maintaining stability, coordinated epidemic prevention and control work with socio-economic development, and took solid steps to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment and market expectations) and security in the six areas (residential employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations). As a result, the national economy recovered steadily, employment and living standards were ensured, and the main goals and tasks of socio-economic development were accomplished better than expected.

According to preliminary estimates, China's gross domestic product (GDP) was 101.6 trillion yuan in 2020, an increase of 2.3% over the previous year at comparable prices. In the first quarter, China's GDP fell by 6.8% year on year, while the remaining three quarters saw growth rates of 3.2%, 4.9% and 6.5%, respectively. The value-added of primary, secondary and tertiary industries were 7.78 trillion yuan, 38.43 trillion yuan, and 55.4 trillion yuan, respectively, with growth rates of 3%, 2.6%, and 2.1%.

First, grain output reached a record high and the production of hogs saw sustained and rapid recovery.

Last year's total grain output was 669.49 million tons, up 0.9% compared with the previous year, increasing by 5.65 million tons. Of this total, the output of summer grain was 142.86 million tons, up by 0.9%, and that of early rice was 27.29 million tons, up by 3.9%. The output of fall grain reached 499.34 million tons, up by 0.7%. By species, the output of rice was 211.86 million tons, up by 1.1%; wheat was 134.25 million tons, up by 0.5%; corn was 260.67 million tons, declining slightly compared with the previous year; and soybeans was 19.6 million tons, up by 8.3%.

The total output of pork, beef, mutton and poultry in 2020 was 76.39 million tons, down by 0.1% year on year. Of this, the output of beef was 6.72 million tons, up by 0.8%; mutton was 4.92 million tons, up by 1%; poultry was 23.61 million tons, up by 5.5%; eggs was 34.68 million tons, up by 4.8%; milk was 34.4 million tons, up by 7.5%; and pork was 41.13 million tons, down by 3.3%. At the end of 2020, the number of hogs and breeding sows in stock grew by 31% and 35.1%, respectively, over that at the end of 2019.

Second, industrial production continued to increase, and high-tech manufacturing and equipment manufacturing enjoyed faster growth.

The total value-added of industrial enterprises above designated size increased by 2.8% year on year. In terms of ownership, the value-added of state-holding enterprises grew by 2.2%, that of shareholding enterprises was up by 3%; enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan was up by 2.4%; and private enterprises were up by 3.7%.

In terms of sectors, the value-added of the mining sector increased 0.5%, manufacturing grew by 3.4%, and that of producing and supplying electricity, thermal power, gas and water grew by 2%. The value-added of high-tech manufacturing and equipment manufacturing increased by 7.1% and 6.6%, respectively, over the previous year, or 4.3 percentage points and 3.8 percentage points, faster than that of industrial enterprises above designated size. Specifically, the production of industrial robots, new energy vehicles, integrated circuits and microcomputer equipment grew by 19.1%, 17.3%, 16.2% and 12.7% year on year, respectively.

In the fourth quarter, the total value-added of industrial enterprises above designated size grew by 7.1% year on year, which was 1.3 percentage points higher than that in the third quarter. In December, the total value-added of industrial enterprises above designated size grew by 7.3% year on year, up 0.3 percentage points compared with November, and an increase of 1.1% month on month. In 2020, the national industrial capacity utilization rate reached 74.5%. In the fourth quarter, the rate reached 78%, which was 1.3 percentage points higher than that in the third quarter.

In the first 11 months of 2020, the profits of industrial enterprises above designated size reached 5.74 trillion yuan, up by 2.4% year on year, 1.7 percentage points higher than that in the first 10 months. Specifically, the total profits made by industrial enterprises above designated size in November increased by 15.5% year on year, maintaining double-digit growth for six consecutive months.

Third, the service sector recovered gradually, with the modern service sector gaining momentum.

In 2020, the Index of Services Production remained the same as that of the previous year. The value-added of information transmission, software and information technology services as well as financial services grew by 16.9% and 7% year on year, respectively, or 14.8 percentage points and 4.9 percentage points higher than that of the tertiary industry.

In the fourth quarter, the Index of Services Production grew by 7.7% year on year, up 3.4 percentage points compared with the third quarter. In December, the index also rose by 7.7% year on year. In the first 11 months, the revenue of service enterprises above designated size grew by 1.6% year on year. Specifically, the revenue of information transmission, software and information technology services and that of scientific research and technology services grew by 13.5% and 9.9%, respectively, 11.9 percentage points and 8.3 percentage points higher than that of service enterprises above designated size.

In December, the Business Activity Index for services was 54.8%, staying above the expansion range. Specifically, the index for sectors including air transportation, telecommunications, broadcast, television and satellite transmission services, monetary and financial services and capital market services continued to stay within the high expansion range at 60% and above. From the perspective of market expectations, the Business Activity Expectation Index for services was 60.1%, staying within the high expansion range for six consecutive months.

Fourth, market sales recovered quickly, and the growth in the sales of upgraded consumer goods accelerated.

In 2020, the total retail sales of consumer goods reached 39.2 trillion yuan, down by 3.9% compared with the previous year. Specifically, the total retail sales of consumer goods by enterprises above designated size reached 14.33 trillion yuan, down by 1.9%. In terms of regions, retail sales in urban areas reached 33.91 trillion yuan, down by 4%; and retail sales in rural areas stood at 5.29 trillion yuan, down by 3.2%. Grouped by consumption patterns, catering revenue was 3.95 trillion yuan, down 16.6%; and retail sales of goods were 35.25 trillion yuan, down 2.3%.

The sales growth of upgraded consumer goods accelerated. In the fourth quarter, the retail sales of communication equipment, cosmetics, gold, silver and jewelry by enterprises above designated size grew by 26%, 21.2% and 17.3% respectively, or 16 percentage points, 7.1 percentage points and 5 percentage points higher than in the third quarter.

In the fourth quarter, the total retail sales of consumer goods grew by 4.6% year on year, which was 3.7 percentage points higher than in the third quarter. In December, the total retail sales of consumer goods grew by 4.6% year on year, or 1.24% month on month. In 2020, the national online retail sales reached 11.76 trillion yuan, up by 10.9% year on year. Specifically, the online retail sales of physical goods was 9.76 trillion yuan, up by 14.8%, accounting for 24.9% of total retail sales of consumer goods, or 4.2 percentage points higher than that of the previous year.

Fifth, investment in fixed assets rebounded steadily and investment in high-tech industries and social sectors grew fast.

In 2020, the investment in fixed assets (excluding rural households) reached 51.89 trillion yuan, up by 2.9% from last year. Specifically, investment in infrastructure was up by 0.9%, manufacturing down by 2.2%, and real estate development up by 7.0%. The floor space of commercial buildings sold reached 1.76 billion square meters, up by 2.6%, while the total sales of commercial buildings was 17.36 trillion yuan, up by 8.7%. The growth of investment in all three industries showed positive trends. Specifically, investment in the primary industry went up by 19.5%, 0.1% in the secondary industry, and 3.6% in the tertiary industry. Private investment was 28.93 trillion yuan, up by 1.0%, and investment in high-tech industries rose 10.6%, 7.7 percentage points higher than the total investment, with investment in high-tech manufacturing and services rising 11.5% and 9.1%, respectively. In terms of high-tech manufacturing, investment in pharmaceutical manufacturing and computers and office devices grew by 28.4% and 22.4%, respectively. In terms of high-tech services, investment in e-commerce services and information services also grew by 20.2% and 15.2%, respectively. The investment in social sectors rose by 11.9%, 9.0 percentage points higher than the total investment. Likewise, investment in the health and education industries went up by 29.9% and 12.3%, respectively. In December, investment in fixed assets grew by 2.32% month on month.

Sixth, foreign trade achieved positive growth and trade structure continued to optimize.

In 2020, the total imports and exports of goods reached 32.16 trillion yuan, an increase of 1.9% over last year. The exports amounted to 17.93 trillion yuan, up by 4%, while the imports were 14.22 trillion yuan, down by 0.7%. The trade balance achieved a 3.71 trillion yuan surplus. Exports of mechanical and electrical products grew by 6%, accounting for 59.4% of the total exports, which was 1.1 percentage points higher than that of last year. Imports and exports of general trade accounted for 59.9% of the total imports and exports, an increase of 0.9 percentage point compared to last year. Imports and exports by private enterprises grew by 11.1%, accounting for 46.6% of the total imports and exports, which was 3.9 percentage points higher than that of last year. In December, the total imports and exports of goods were 3.2 trillion yuan, up by 5.9% year on year. Specifically, the total exports reached 1.86 trillion yuan, up by 10.9%, and the total imports were 1.34 trillion yuan, down by 0.2%. The trade balance achieved 516.8 billion yuan in surplus.

Seventh, growth of consumer prices slowed and producer prices for industrial products dropped.

In 2020, consumer prices increased by 2.5%, lower than the 2.9% growth of the year before and also lower than the expected annual target of around 3.5%. To be more specific, prices went up by 2.3% in urban areas and up by 3% in rural areas. Grouped by commodity categories, prices for food, tobacco, and alcohol went up by 8.3%; clothing down by 0.2%; housing down by 0.4%; articles and services for daily use remained the same; transportation and communication down by 3.5%; education, culture, and recreation up by 1.3%; medical services and health care up by 1.8%; and other articles and services up by 4.3%. Breaking down food prices, grain prices rose 1.2%, the price of fresh vegetables grew 7.1%, and pork prices increased 49.7%. The core CPI, excluding the prices of food and energy, went up by 0.8%. In December, the consumer price went up by 0.2% year on year and up by 0.7% month on month. In 2020, producer prices for industrial products went down by 1.8% over last year, and in December, went down by 0.4% year on year and up by 1.1% month on month. The purchasing prices for industrial producers decreased by 2.3% over last year, and in December, maintained the same level year on year, or up by 1.5% month on month.

Eighth, employment was generally stable, and the surveyed unemployment rate in urban areas fell to the level observed last year.

In 2020, 11.86 million new jobs were created in urban areas, notably higher than the expected goal of over 9 million a 131.8% increase on the annual target. In December, the surveyed unemployment rate in urban areas was 5.2%, the same as that of last year. Specifically, the surveyed unemployment rate among those aged between 25 and 59 was 4.7%, also the same as that of 2019. In 2020, the average annual surveyed unemployment rate in urban areas stood at 5.6%, lower than the expected target of around 6%. The surveyed unemployment rate in 31 major cities in December was 5.1%. At the end of 2020, the registered unemployment rate in urban areas was 4.24%, lower than the expected target of around 5.5%. The number of rural migrant workers reached 285.6 million, 5.17 million less than that of last year, or down by 1.8%. Specifically, migrant workers working in their home provinces totaled 116.01 million, down by 0.4%; migrant workers working outside their home provinces totaled 169.59 million, down by 2.7%. The average monthly income for migrant workers was 4,072 yuan, up by 2.8% over last year.

Ninth, resident income grew at the same pace as the economy and the ratio of per capita disposable income between urban and rural residents continued to narrow.

In 2020, the nationwide per capita disposable income was 32,189 yuan, a nominal increase of 4.7% over that of last year and a real increase of 2.1% after deducting price factors, which generally grew at the same pace as the economy. In terms of those citizens with permanent residence, the per capita disposable income of urban households was 43,834 yuan, a nominal growth of 3.5% and a real growth of 1.2% after deducting price factors. The per capita disposable income of rural households was 17,131 yuan, a nominal growth of 6.9% and a real growth of 3.8% after deducting price factors. The per capita disposable income of urban households was 2.56 times that of rural households, 0.08 less than that of last year. The median of the nationwide per capita disposable income was 27,540 yuan, a nominal increase of 3.8% over that of last year. Taking the per capita disposable income for nationwide households as compared by income quintiles, that of the low-income group reached 7,869 yuan, the lower-middle-income group 16,443 yuan, the middle-income group 26,249 yuan, the upper-middle-income group 41,172 yuan, and the high-income group 80,294 yuan.

In 2020, the nationwide per capita consumer spending was 21,210 yuan, a nominal decline of 1.6% or a real decline of 4% after deducting price factors. Specifically, the per capita consumer spending of urban households was 27,007 yuan, a nominal decline of 3.8%, while the per capita consumer spending of rural households was 13,713 yuan, a nominal growth of 2.9%.

Generally speaking, the national economy in 2020 recovered steadily, notable results were achieved in stabilizing employment and ensuring people's basic needs, a decisive success was made in eradicating extreme poverty, the 13th Five-Year Plan came to a satisfactory conclusion, and the task of building a moderately prosperous society in all respects will soon be completed. However, the changing COVID-19 situation and external environment pose a multitude of uncertainties and the foundation for economic recovery is yet to be consolidated. At the next stage, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, implement the spirit of the fifth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference, adhere to the general working tone of making progress while maintaining stability, align ourselves with the new development phase, stick to the new development philosophy, foster a new development pattern, unswervingly deepen reform and opening up and innovation, consolidate and proliferate the gains made in epidemic prevention and control as well as economic and social development, take solid steps to ensure stability in six areas, fully carry out tasks to maintain security in six fronts, and implement macro policies in a science-based and precise manner to keep the economy performing within a reasonable range and to ensure a good start of the 14th Five-Year Plan period (2021-2025).

Hu Kaihong:

Thank you, Mr. Ning. The floor is now open to questions.

_ueditor_page_break_tag_

CCTV:

Due to the huge impact of the pandemic and a grave and complex environment both at home and abroad, China's economy recovered quarter by quarter in 2020 after a decline in the first quarter. What do you think of the economy throughout the year? Did we meet the goals and tasks for the year? Thank you.

Ning Jizhe:

Thanks for your questions. 2020 was an unusual year in China's history. In 2020, we faced with a grave and complex environment both at home and abroad on account of the huge impact of the pandemic in particular, but under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all localities and departments put the people and their lives first, adhered to the general working guideline of making progress while maintaining stability, coordinated the work of epidemic prevention and control and economic and social development, pledged stronger macro policies to offset the economic impact of COVID-19, took solid steps to ensure stability in six areas, and fully carried out tasks to maintain security in six fronts. Major strategic achievements were made in epidemic prevention and control, and the main goals and tasks of economic and social development were accomplished better than expectation. The 13th Five-Year Plan came to a satisfactory conclusion and the task of building a moderately prosperous society in all respects will soon be completed. The achievements were mainly shown in the following aspects.

First, major progress has been made in coordinating epidemic response and economic and social development. Thanks to the joint efforts of the whole country, China was the first to bring the epidemic under control, to resume work and production, and to achieve positive economic growth. By late March, the spread of COVID-19 on the mainland had been initially halted, and by mid-April, more than 90% of the enterprises above designated size had resumed operation. The GDP grew by 3.2% in the second quarter, turning from negative to positive, and by 4.9% in the third quarter, 6.5% in the fourth quarter, and 2.3% for the whole year. China is expected to be the world's only major economy to achieve positive economic growth in 2020. There are 18 major economies in the world each with a GDP over US$1 trillion, and economic data from most of these countries is not yet available. Based on the data from the first three quarters of 2020, China is the only major economy to register positive growth and the only one with positive growth for the whole year. In 2020, China's GDP reached 101.6 trillion yuan, exceeding a new watermark of 100 trillion yuan.

Second, decisive success has been achieved in eradicating extreme poverty. All rural residents below the current poverty line have been lifted out of poverty, and all 832 impoverished counties have been raised out of poverty. Extreme poverty has been eliminated, the first time in Chinese history. The personal income for farmers in poor areas has increased rapidly. In 2020, the nominal per capita disposable income growth of rural residents in Guangxi, Sichuan, Guizhou, Yunnan, Gansu, Ningxia, and Xinjiang, the seven provinces (autonomous regions) with a relatively large impoverished population, were all 0.2 to 1.7 percentage points higher than that of the rural residents across the country.

Third, remarkable results have been secured in macro-regulation, with quarterly indicators for economic growth returning to normal levels. In the fourth quarter, China's GDP and the added value of the industrial enterprises above designated size grew by 6.5% and 7.1% year on year, respectively, and 0.7 and 1.1 percentage points higher than the same period of 2019. The annual employment and price targets have been well met. In 2020, 11.86 million new urban jobs were created in the country, surpassing the target set for the year. The annual surveyed urban unemployment rate averaged 5.6% nationwide, lower than the expected target of about 6%. The consumer price index (CPI) for 2020 rose by 2.5% over the previous year, lower than the projection of around 3.5%. Growth in personal income was basically in step with economic growth. In 2020, the per capita disposable income of Chinese citizens grew by 2.1% in real terms, basically in line with economic growth. Overall, the balance of payment has been improved. By the end of 2020, China's foreign exchange reserves stood at US$3.22 trillion, an increase of US$108.6 billion year over year. Energy consumption per unit GDP has been reduced by around 0.1% in 2020 when compared to 2019. The main targets for macro-regulation set out in the government work report have been achieved and exceeded expectations.

Fourth, tasks have been carried out to ensure stability on six fronts (employment, finance, foreign trade, foreign investment, domestic investment, and market expectations) and guarantee stability in six areas (jobs, daily living needs, food and energy, industrial and supply chains, the interests of market players, and the smooth functioning of grassroots governments), and effective results have been achieved. Employment has been safeguarded. In December, the surveyed urban unemployment rate of the main working population aged 25 to 59 nationwide registered 4.7%, a return to levels seen during the same period of 2019. People's livelihoods have been effectively ensured. In 2020, the per capita net transfer income of Chinese citizens registered a nominal year-on-year growth of 8.7%, indicating greater efforts to meet the basic needs of the people. The vitality of market players have been increased. In the first 11 months of 2020, the profits of industrial enterprises above designated size grew by 2.4% year on year, maintaining double-digit growth for six months in a row. Grain and energy supply have increased. In 2020, grain output totaled 669.5 billion kilograms and the total primary energy production increased by some 2.8% over the previous year. Industrial and supply chains have been basically stable, and the growth of industries has continued to expand. In 2020, added value growth was reported in 25 out of the 41 industrial categories of the industrial enterprises above designated size, five categories more than that of the first three quarters. The functioning of grassroots governments has been well maintained. From January to November, expenditures in the general public budget for social security and employment, housing security, and poverty alleviation  all related to the guarantee in three areas of the grassroots governments (people's livelihood, employment, functioning)  rose by 9.8%, 9.5%, and 9.2%, respectively.

Fifth, reform and opening-up have created development miracles. Enterprises across various types of ownership operate more efficiently. In November, state holding industrial enterprises above designated size reported double-digit profits and year-on-year growth, registering positive growth for the sixth consecutive month. From January to November, the profits of industrial enterprises above designated size with foreign investment and investment from Hong Kong, Macao, and Taiwan grew by 4.3% 1.7 percentage points higher than in the first three quarters. The profits of private industrial enterprises above designated size increased by 1.8%, compared with a decline of 0.5% in the first three quarters. All these show that industrial enterprises with various types of ownership have experienced a comprehensive improvement in their efficiency. Supply-side structural reform has been deepened. China's industrial capacity utilization rate reached 78% in the fourth quarter, up 1.3 percentage points over the third quarter,  the highest since 2013. The reforms to streamline administration and delegate power, improve regulation, and upgrade services have continued to show results. From January to November, an average of 22,000 new enterprises were established every day, with a net increase of 12,000 per day. In 2020, the added value of high-tech manufacturing grew by 7.1% over the previous year, 4.3 percentage points higher than that of all the enterprises above designated size, and the online retail sales of goods increased by 14.8%. The growth in foreign trade and inbound investment was better than expected. In 2020, China's total import and export of goods reached a record high, up 1.9% over the previous year, despite a sharp decline in global trade and cross-border investment. From January to November, China's utilized foreign capital increased by 6.3% year on year.

Sixth, historic achievements in the building of a moderately prosperous society in all respects have been made. The main goals set out in the 13th Five-Year Plan have been fulfilled. Our GDP exceeded 100 trillion yuan and the per capita GDP exceeded US$10,000 in 2020. The economic structure has continued to improve; major projects have been basically completed, and; our economic, scientific, and technological strength, as well as the composite national strength, have risen to new highs. Major breakthroughs have been made in the three critical battles against poverty, pollution, and major risks, with accomplishments in the fight against poverty winning international recognition. Approximately 55.75 million rural residents have been lifted out of poverty. The first poverty reduction surveys show that all 13.85 million registered poor households have had their basic living needs met and have access to compulsory education, basic medical services, housing, and safe drinking water. Remarkable results have been achieved in pollution prevention and control. In 2020, the proportion of days with good air quality in 337 cities at or above the prefectural level reached 87%, an increase of 5 percentage points over the previous year. Progress has also been made in preventing and defusing major risks. Financial risks were manageable on the whole and the outstanding local government debt was within the budgeted limit approved by the National People's Congress. People's living standards have improved markedly. Over the past five years, more than 60 million urban jobs have been created. China has established the world's largest social security system, with its basic medical insurance covering over 1.3 billion people and basic old-age insurance covering nearly 1 billion people. Coordinated efforts have been made to implement the Five-sphere Integrated Plan, making coordinated progress in the economic, political, cultural, social, and eco-environmental fields. The confidence, pride, unity, and cohesion of the Party and the people of all ethnic groups have been enhanced remarkably.

In general, China's economy has recorded an extraordinary accomplishment in an extraordinary year, delivering results that have satisfied the people, won international recognition, and will go down in history. These achievements were hard-won after overcoming enormous difficulties, with COVID-19 still wreaking havoc around the world, the world economy falling into a severe recession, and the external environment becoming more complex and graver than before. These accomplishments are attributed to the strong leadership and sound policy-making of the CPC Central Committee with Comrade Xi Jinping at its core and the concerted efforts of the people of all ethnic groups, speaking volumes about the advantages of the socialist system with Chinese characteristics. Thank you.

_ueditor_page_break_tag_

China National Radio:

In 2020, China's GDP exceeded 100 trillion yuan. What does this mean for China's economy? What is the significance for establishing a new development pattern? Thank you.

Ning Jizhe:

These questions are very much to the point. China's GDP has now exceeded 100 trillion yuan. This means that China's economic and technological strength, and composite national strength have taken a big step forward. The achievement is of great symbolic significance in building a moderately prosperous society in all respects and embarking on a new journey of building a modern socialist country in all respects.

First, it marks the continuing rise of China's composite national strength. China's GDP reached 101.6 trillion yuan in 2020, surpassing 100 trillion yuan for the first time in its history. The Chinese economy reached 10 trillion yuan in 2000, exceeded 50 trillion yuan in 2012. Over the past 20 years, the Chinese economy expanded 10 times, which is a remarkable achievement. Converted at the prevailing average annual exchange rate, China's GDP in 2020 reached $14.7 trillion, ranking second in the world, and it is expected to account for around 17% of the global economy. In 2020, its per capita GDP exceeded $10,000 for the second consecutive year, which consolidated China's position among upper middle-income countries and narrowed the development gap with high-income countries.

Second, it marks the continuous improvement of China's scientific and technological strength. Major sci-tech achievements were made over the previous year. Chang'e-5 successfully landed on the moon and returned with samples. China's Mars probe Tianwen-1 was successfully launched. The Five-hundred-meter Aperture Spherical Radio Telescope (FAST) was officially put into operation. The Beidou-3 global navigation satellite system was put into operation. The manned submersible Fendouzhe (Striver) completed a 10,000-meter dive. And, the Jiuzhang quantum computer was successfully developed. The poetic line "[c1] We can clasp the moon in the sky and catch turtles in the deep sea" has now become reality. Scientific and technological innovation is becoming increasingly vigorous, injecting new vitality into high-quality economic development.

Third, it marks significant gains in China's economic strength and a remarkable increase in its industrial and agricultural productivity. In 2020, total grain output reached a record high and continued to rank first in the world. The output of more than 220 industrial products ranks No. 1 in the world, and the added value of the manufacturing sector is expected to rank first in the world for 11 consecutive years. China's infrastructure has constantly improved. The high-speedrailway network hasreached38,000km and expressways exceeded 155,000 km. 5G connections in China has exceeded 200 million, ranking first in the world. The modern service sector, including information services, business services, research and development services and marketing services, continues to develop. The capability of the financial sector for serving the real economy has been enhanced, and the country's social productivity has reached a new level.

Fourth, it has laid a solid foundation for China to build a new development pattern. We are accelerating the formation of a new development pattern with the domestic market as the mainstay and the domestic and international markets mutually supporting each other. The key is to tap the potential of domestic demand, especially consumer demand. China has the largest population and the largest middle-income group in the world. In 2020, the total retail sales of consumer goods reached almost 40 trillion yuan, and final consumption expenditure exceeded 55 trillion yuan. The total capital formation was close to 45 trillion yuan. This will further boost the advantage of the super large Chinese market.

At the same time, we should also clearly recognize that China is still the world's largest developing country, and its per capita GDP is still slightly lower than the global average. Compared with the major developed countries, China still lags far behind. The basic reality that China is still in the primary stage of socialism has not changed. The issue of unbalanced and inadequate development is still prominent, and there is still a large gap between the development of urban and rural areas. Meanwhile, innovation capacity still fails to meet the requirements for high-quality development. In order to achieve long-term economic and social development goals and build China into a modern socialist country, we still need to work hard and make unremitting efforts. Thank you.

_ueditor_page_break_tag_

Reuters:

In 2020, China's total retail sales of consumer goods dropped by 3.9% and growth in December was also weak. Does this have to do with the COVID-19 epidemic? Will China introduce any measures to stimulate consumption in 2021? How do you predict the rates for investment and export in 2021? Thank you.

Ning Jizhe:

I can see that you read our statistics before raising this question. As you know, consumption plays a basic role in economic development. In the past year, the total retail sales of consumer goods registered negative growth but its growth in Q3 and Q4 had trended positive. In Q4, rates grew by 4.6%, which is close to normal levels in recent years. The fluctuations in December were caused by the resurgence of COVID-19 cases in several domestic locations. But if we look at the whole picture, as production supplies continue to increase, domestic consumption can still play a basic role in boosting economic development. In 2021, we can see many positive factors supporting stable economic recovery. China's economy is well-conditioned to maintain its recovery momentum. Though we are facing relatively high pressure in preventing inbound cases and a domestic resurgence, our economy is still growing on strong fundamentals.

First, we have a solid material foundation. Agricultural foundations are growing stronger, with total grain output exceeding 1.3 trillion jin (650 million tons) for six consecutive years. Meanwhile, the industry is playing a more dominant role in the national economy, and our total industry added value is over 30 trillion yuan. Infrastructure is also improving as transportation, telecommunications, energy, and the water conservation sector play a more important role in supporting the economy. These are strong material foundations for us to guard against various risks, maintain steady economic recovery, and ensure the basic well-being of the Chinese people.

Second, we have a complete industrial system. After years of effort, China has become the only country in the world to obtain all industrial categories listed in the United Nations industrial classification. Our total trade in goods ranks first in the world, and the country is the largest trading partner of 120 countries and regions. In the past year, in the face of COVID-19, China's industrial system has demonstrated a strong ability for self-adjustment and resilience. In 2021, China's complete production coordination system and its supporting capacity are bound to play a major effective role in dealing with various uncertainties.

Third, we have a huge market. With a population of 1.4 billion people, including a middle-income population of 400 million, and a total land area of 9.6 million square kilometers, China boasts the world's fastest-growing domestic market. The advantages of the huge market are obvious. With increased per capita income, the structural adjustment and upgrades in consumption will drive upgrades to the industrial, investment, and regional economic structures, providing a huge force for sustainable economic development. In 2021, our vast domestic market will provide enough room for economic growth and manoeuvre.

Fourth, we have built strong technological power. China is proving its strong momentum in technological innovations, boasting the world's second-largest R&D investment and a top filer of international patents, both driven by the development of hi-tech industries and emerging industries with strategic importance. China's emerging industry maintains strong momentum despite the economic headwinds over the past several years as well as the COVID-19 pandemic. The industry digitalization and the industrialization of the digital economy are also in full swing, which in turn will boost additional online consumption. These are the driving forces of China's high-quality economic development.

Fifth, we have abundant human resources. China has the world's largest workforce, with nearly 900 million people of working age (16 to 59 years old), 200 million skilled workers, and the world's largest population of research personnel. These also give continuous intellectual support to the country's high-quality development.

The strong CPC leadership and China's institutional advantages ensure stable and long-term economic development and social stability. The CPC Central Committee's far-sightedness and its sound decisions overall, the institutional advantage of socialism with Chinese characteristics that enables us to pool all resources to complete major missions, the sophistication of China's economic governance, and precise and effective macro-control policies are the keys to successfully preventing and controlling COVID-19 while making achievements in socio-economic development.

Despite the recent COVID-19 resurgence in some areas, the impact of COVID-19 on the economy is generally controllable. As the pandemic continues to spread around the globe, China's outbreak of locally-transmitted cases and cluster infections is posing some uncertainties to economic recovery, which is reflected in the slowed growth rate of December's retail sales.

Generally speaking, we have the abilities and the conditions to contain the spread of COVID-19. Thanks to our rich experience in COVID-19 response in the early stage of the pandemic, we have adopted swift, effective, and scientific measures to contain the spread of the coronavirus in areas experiencing a resurgence in COVID-19 and reduce the impact of lockdown measures on production and life. Currently, production and life in most regions are back on track, economic operations are generally stable, and the impact of COVID-19 is controllable. Of course, we will continue to work hard and keep economic operations within a reasonable range. In response to your question about our investment and consumption policies, we will follow the instructions put forward during the fifth plenary session of the 19th CPC Central Committee as well as the Central Economic Work Conference, implement our financial, monetary, employment, investment, consumption, regional, and industrial policies more precisely, overcome difficulties that arise, keep economic operations within a proper range, and promote the sustainable and healthy development of China's economy.

In general, consumption and investment played key roles in economic development in 2020. The overall fixed-asset investment, investment in the tertiary industry, and investment in the social sector and infrastructures all achieved positive growth. In 2021, we will continue to increase our investment in areas of weakness. Following the instructions of the Central Economic Work Conference, we will ensure to balance investment in both strong and weak areas and boost the overall quality of our investment.

Imports and exports bucked the trend and increased last year. The GACC held a press conference two days ago to introduce the situation. Imports and exports in the first two quarters of last year were severely affected by COVID-19 but a series of effective measures were later adopted to tackle the issues. In addition, China's relatively complete industrial system ensures logistics services and meets the demands of epidemic prevention products, household goods, and office supplies for some countries in the world. Because of the advantages that I have just introduced, China's imports and exports rebounded in the third and fourth quarters and the economy achieved positive growth throughout the year. This year, the coronavirus has continued to spread globally and nations around the world have relatively large demands for epidemic prevention products and daily necessities. Based on boosting domestic demand, we should also meet the needs of foreign markets and expand external demand. It is expected that imports and exports will maintain current momentum. Thank you.

_ueditor_page_break_tag_

Hong Kong Bauhinia Magazine:

How is the progress in China's high-quality development in 2020? Could you elaborate on that? In your opinion, what is the focus of promoting high-quality development in 2021? Thank you.

Ning Jizhe:

This is a good question. Last year, the coronavirus affected our economic growth and development. However, while stabilizing employment, ensuring people's livelihoods, and maintaining the fundamentals of the economy, all regions and departments have been unswervingly implementing new development concepts and promoting high-quality development, continuing to deepen reforms, expanding opening up, and cultivating new drivers of growth. The quality and efficiency of economic growth have been steadily improved.

First, innovation, the primary driving force of development, continues to be stimulated. New industries, new forms of business, and new products are developing rapidly. From January to November in 2020, the operating income of strategic emerging service enterprises above the designated size increased by 8.6% year-on-year, 7 percentage points higher than that of the service industry above the designated size. The proportion of online retail sales of physical goods reached 24.9%, up 4.2% over the previous year; the output of industrial robots, new energy vehicles, and integrated circuits all achieved rapid growth and increased by 19.1%, 17.3%, and 16.2%, respectively. The number of small and medium-sized tech enterprises and high-tech enterprises has exceeded 200,000. Finally, major breakthroughs have been made in the scientific exploration of space and the sea, as I mentioned earlier.

Second, coordination has increasingly become an endogenous feature. New steps have been taken in the transformation of the industrial structure. The added value of the equipment manufacturing industry and the high-tech manufacturing industry increased by 6.6% and 7.1%, respectively, 3.8 and 4.3 percentage points higher than that of all industries above the designated size. The added value of the tertiary industry accounted for 54.5% of China's GDP, up 0.2 percentage point over the previous year. New progress has been made in the adjustment of the demand structure. Investment in high-tech industries and social fields climbed by more than 10% over the previous year to 10.6% and 11.9%, which are 7.7 and 9 percentage points higher than the total investment, respectively. The gap between urban and rural development continued to narrow. The income of rural residents has grown faster than that of urban residents, and the urbanization rate of permanent residents has exceeded 60%.

Third, we made major headway toward green development. Energy conservation and consumption reduction efforts have delivered results. The annual energy consumption per unit of GDP has dropped. The proportion of consumption of natural gas, water, nuclear, wind, solar energy, electricity, and other clean energies has increased by 1 percentage point over the previous year. The environment has also improved significantly. The PM2.5 concentration of 337 cities at or above the prefecture level across the country dropped by 8.3% compared with the previous year. In terms of water environment, among the 1940 national surface water assessment sections, the proportion of water with good quality (Grade I-III) increased by 8.5 percentage points.

Fourth, the path to opening up has become broader. In 2020, we celebrated the 40th anniversary of the establishment of Shenzhen Special Economic Zone and other special economic zones, and the 30th anniversary of the development and opening up of Shanghais Pudong district. Pilot projects are exemplary and stimulate economic development. In the context of shrinking world trade and cross-border investment, China's total import and export of goods and the actual use of foreign capital have both achieved positive growth. The actual use of foreign capital during the last month of 2020 has not been officially announced. From January to November, the figure increased by 6.3%. The actual use of foreign capital has played a major role in stabilizing economic fundamentals. In the past year, the construction of the Hainan Free Trade Port has also been accelerated. We have had active economic and trade exchanges with countries along the Belt and Road. The Regional Comprehensive Economic Partnership Agreement (RCEP) was officially signed and the China-EU Investment Agreement negotiations were completed. These all provide a strong impetus for open development.

Fifth, sharing as the fundamental goal has been further emphasized. Poverty alleviation has achieved remarkable results. We have eliminated both absolute poverty and overall regional poverty. The employment situation is generally stable, and the surveyed unemployment rate has returned to the level of the same period of the previous year. The nationwide surveyed unemployment rate in urban areas peaked in February, reaching 6.2%, but in December, the number dropped to 5.2%. The quality of the life of residents has improved significantly, and the ownership of consumer durables has grown rapidly. The construction of a multi-level social security system has been accelerated. The development of education, culture, health, and other social sectors have been stimulated and the ability to guarantee basic public services has been continuously strengthened.

2021 is the first year of the 14th Five-Year Plan, the theme of which is to promote high-quality development. We must continue to take development as the Party's top priority in governing and rejuvenating the country, unswervingly implement the new development concepts of innovation, coordination, greenness, openness, and sharing, and continue to consolidate epidemic prevention and control and restore economic stability and boost development. We strive to maintain economic operations within a reasonable range and create a favorable environment for high-quality development. Focusing on improving the quality and efficiency of development, we will seek coordinated development of economic quality, structure, scale, speed, efficiency, and safety, and integrate high-quality development concepts into all fields and levels of economic society. Thank you.

_ueditor_page_break_tag_

Bloomberg:

We have two technical questions. I'm wondering what the breakdown is for the contribution to growth from net exports, consumption, and investment? Were also interested in when China's birth rate figure will be released? Thank you.

Ning Jizhe:

Just now I mentioned that investment, consumption, and exports are referred to as a troika of growth, and you brought up a direct question. We will announce the breakdown of the troika tomorrow. To evaluate the impact of the three major demands on the economy, I would like to first introduce the total amount.

First, in terms of total volume, the final consumption rate in 2020 was close to 55%. From 2011 to 2019, China's consumption rate averaged 53.4%. Despite the impact of the coronavirus in 2020, the final consumption expenditure still accounted for 54.3% of GDP, 11.2 percentage points higher than the total capital formation, the highest proportion in recent years. Consumption is still the anchor of a stable economy.

Second, from the perspective of incremental growth, the role of consumption in stimulating economic growth has also increased each quarter. With the steady recovery of China's economic operations, consumptions driving force on economic growth has increased quarter by quarter. In the fourth quarter, the total retail sales of consumer goods increased by 4.6% year on year, and the growth rate was 3.7 percentage points higher than that in the third quarter; and final consumption growth drove economic growth by 2.6 percentage points, an increase of 1.2 percentage points from the third quarter. As the epidemic is more effectively controlled, the momentum of consumer demand will be further restored. The contribution rate of net exports of the trade in goods and services to economic growth during the past year had still been positive. Now, in order to measure the impact of imports and exports on economic development, we should not only look at the growth rate or contribution rate, but also the total amount. First of all, incremental growth has been a positive contributing factor. Looking at the total amount, the total import and export volumes are equivalent to the proportion of China's GDP, which is relatively high among major countries, accounting for more than 30%. Major countries generally focus on domestic demand. Under open conditions, in order to achieve economic circulation, China's proportion is higher than that of strong economies such as the United States and Japan. Therefore, considering the two aspects, the role of imports and exports is still relatively important.

Economic growth depends on domestic demand, which conforms to the laws of economic development. The construction of a new dual-circulation development pattern requires better use of the advantages of the domestic super-large-scale market in China's opening-up. Looking at China's situation, there is still a lot of room for improvement in utilizing the fundamental role of consumption. The average contribution rate of final consumption expenditure to economic growth was around 60% from 2013 to 2019. If compared with the levels of 70% and 80% for developed economies, there is still much room for improvement. As the development stages are different, it is necessary to improve people's consumption abilities, improve consumption policies, improve the consumption environment, and find more areas for consumption growth. Utilizing the key role of investment is also very important. In 2020, investment played an active role in promoting economic recovery. Going forward, we must increase the intensity of effective investment and transform China's relatively high national savings rate into actual investment results. At the same time, we must unswervingly expand opening-up and make better use of the active role of the "three drivers of growth" consumption, exports and investment in building a new dual-circulation development pattern.

Just now, you asked about the population. The seventh national population census was launched on Nov. 1 last year. More than 7 million census takers went into communities, urban and rural areas. After much hard work, on-site registration has now been completed and the process of carrying out random quality checks and verifications, as well as preliminary summary is now underway. The census is conducted once every 10 years, and the previous sixth census was also conducted in November, with the results released in April of the following year. The results of this year's census will also be announced to the whole society in April. As such, we cannot provide the data today. I hope you can understand.

The fifth plenary session of the 19th CPC Central Committee has put forward requirements for population development strategies and policies for the next five years. The statistics departments will ensure the population data is true, accurate and reliable through population censuses and daily surveys, and provide a scientific basis for formulating strategic planning policies for population development. Thank you.

_ueditor_page_break_tag_

CNBC:

In terms of the economy this year, considering some important challenges, such as last year's consumption situation, some economists hope that consumption will account for a bigger part of China's development and play a larger role. There has also been much analysis into the spread of the pandemic at home and abroad, which has raised some concerns about the Chinese economy. What is your take on these issues? Thank you.

Ning Jizhe:

Facing the spread of the global pandemic, increasing the awareness of risks and concerns is extremely important. Looking around the world, the pandemic has rebounded two or three times in some countries, and uncertainties are growing internationally. The foundation for the recovery of the domestic economy is not yet solid. The overall indicators are picking up steadily and are better than expected, but some structural indicators are not ideal, while various problems cannot be solved in the short term. We must adhere to the general tone for work, which is seeking progress while maintaining stability, continue to promote stable economic recovery, and keep it within a reasonable range. We must look from the aspect of challenges, difficulties and risks, as well as the aspect of opportunities, advantages and hope. The challenges are unprecedented, as are the opportunities. On the whole, the opportunities are still greater than the challenges. Judging from the situation of macro-control and corporate recovery last year, some challenges will be transformed into opportunities once they have been overcome. For example, responding to the COVID-19 pandemic was originally a big challenge. However, due to our insistence on technological innovation and reform and opening-up, various market entities have played their parts, and development of the digital economy, entrepreneurship and innovation have become opportunities. Online retail sales, including online education and medical care, have developed well, while the combination of online and offline businesses has created even greater advantages.

The global pandemic is also a big challenge, and especially now we are under huge pressure to prevent imported infections and a domestic resurgence. Due to the pandemics impact, there has been large demand for anti-pandemic products, including face masks, protective suits and home office supplies. We have a complete industrial system and guaranteed international logistics, and are promoting the smooth flow of logistics, so that challenges have become opportunities, and positive trade growth has been achieved. We are satisfied by the data, but more importantly, we are also meeting the needs of people around the world in fighting the pandemic. Saving lives is more important than anything else. This is not only significant for the economy, but also for humanity. We have played a positive role in the world. In China, we insist on putting people and life first, so we must combine economic data with challenges and opportunities in our analysis. Our country is still in a period of strategic opportunities for development. Faced by challenges, we must give full play to our advantages and overcome difficulties to achieve sustained economic recovery, stable operations and healthy development. Thank you.

_ueditor_page_break_tag_

Hong Kong Commercial Daily:

What progress has been made in ensuring people's livelihoods in 2020? The growth of China's per capita disposable income has been weak, how do you regard this situation? What changes have there been in income levels in urban and rural areas? Thank you.

Ning Jizhe:

People's livelihoods are the top priority. Last year, notable results were achieved in ensuring people's wellbeing, as demonstrated in three key aspects: first, job growth continued to expand; second, prices remained generally stable; and third, incomes continued to rise. As I said before, we achieved the year's employment rate target, and the employment situation was better than expected. With support from economic recovery and employment-first polices, the number of newly employed people in urban areas totaled 11.86 million in 2020, well exceeding the goal of 9 million. The surveyed unemployment rate and registered unemployment rate, both for urban areas, were lower than expected. It shows that governments at all levels and market entities have all played a vital role in stabilizing and ensuring employment as the main macro-regulation target, and implementing the employment-first policies.

In addition, consumer prices remained generally stable. Affected by many factors, food prices, especially the price of pork, rose quickly starting around the beginning of last year. Faced with the epidemic, local governments, departments and market entities worked together to boost food supplies, in particular guaranteeing the production, distribution, and supply of hogs. After more than half a year of efforts, the number of hogs both available for slaughter and supplied to the market improved significantly in the fourth quarter. We increased pork imports and ensured domestic supply, resulting in a significant drop in prices during the fourth quarter. Pork prices rose by more than 100% at the beginning of last year, and increased for 19 consecutive months. Between October and December, pork prices then dropped by 2.8%, 12.5% and 1.3%, respectively. Food prices on the whole have also been effectively controlled, showing a downward trend.

Personal income growth exceeded expectations and was basically in step with economic growth. The per capita disposable income in the four quarters changed by -3.9%, -1.3%, -0.6% and 2.1% year on year in real terms, which was generally in step with economic growth. The main characteristics of the growth in residents' incomes can be seen from three aspects: First, net transfer income of residents has grown quickly. This resulted from the policies to ensure and improve people's basic livelihood, such as increasing the pension for retirees and strengthening social relief and temporary aid. The per capita net transfer income of residents nationwide grew 8.7% year on year; per capita old-age pension and retirement pension posted an 7.8% increase year on year; per capita income from social relief and subsidies grew 18.7%; and per capita income from policy-based living subsidies rose by 12.7%. Second, residents' income from salaries showed accelerated recovery through the policies of ensuring employment, including stabilizing employment and encouraging rural labor to move to other areas for employment. The per capita salary-based income of residents increased by 4.3% year on year, which was higher than the growth rate of China’s per capita disposable income, which was 2.1%. The average monthly income of migrant workers also rose by 2.8% over the previous year. Third, market entities improved net operating income, moving from decline to growth. Thanks to the measures including reducing taxes and fees, and providing financial support, household operations improved. The per capita net operating income grew 1.1% year on year in 2020, despite decline during the first three quarters due to the epidemic.

As for your second question, the income gap between urban and rural residents as well as people from different social groups continued to narrow. As I said before, the ratio between urban and rural residents per capita disposable income stood at 2.56, 0.08 lower than in 2019. The income of residents in western regions of the country grew by 6%, faster than 4.6% in eastern regions, showing that the income gap between different regions is also narrowing. The income growth rate of the low-income group was higher than that of residents nationwide. The per capita disposable income of the low-income group increased by 6.6% year on year in nominal terms, 1.9 percentage points higher than that of residents nationwide. The per capita disposable income of the low-income group in rural areas increased by 9.8% over the previous year, 5.1 percentage points higher than that of residents nationwide. As such, data on job creation, consumer prices and income show that the policies to ensure and improve people's livelihoods have yielded positive results.

In the next step, we will continue to promote steady economic recovery and provide stronger employment support for key groups. We will take more measures to stabilize employment, ensure supply and price stability, and strengthen basic living guarantees for disadvantaged groups. There should be solid progress in protecting market entities, sustaining the growth of urban and rural personal income, deepening the reform of the income distribution system, and further narrowing the income gap between urban and rural residents. Thank you.

_ueditor_page_break_tag_

China Daily:

My questions are for Mr. Ning. All three industries registered positive growth in 2020. What were the new situations and characteristics encountered during the year? Did industrial production return to a normal range in Q4? Thank you.

Ning Jizhe:

Your question is a request to provide a conclusion for 2020. With nationwide efforts, we not only saw overall positive growth but also coordinated recovery and development in all three industries. Viewing the year as a whole, the economy reopened in a steadily improving manner.

First, the position of agriculture as the foundation of the economy was further strengthened. Despite the COVID-19 epidemic and severe flooding, 2020 saw another bumper grain harvest. Hog production capacities recovered quickly and the output of poultry, eggs, and milk increased steadily. Agricultural production was better than expected and the value added of agriculture, forestry, animal husbandry, and fishery went up by 3% year on year a good performance compared with previous years. Growth was -3.2% for the first quarter, and 3.3, 3.9, and 4.1% for the second, third, and fourth quarters, respectively. Modern agriculture also performed well with several new super rice varieties developed, which have a yield of 1,000 kilograms per mu.

Second, industrial production stabilized and rallied. Industry as a whole, especially manufacturing, saw steady recovery quarter by quarter. The value added of industrial enterprises above designated size grew 2.8% year on year in 2020. The growth for the manufacturing sector was 3.4%, faster than the general growth. The growth for the first, second, third, and fourth quarter was -8.4, 4.4, 5.8, and 7.1%, respectively, and demonstrate that growth is already returning to normal. In particular, the role of pillar industries strengthened and the recovery of equipment manufacturing quickened. In 2020, value added to the equipment manufacturing sector grew 6.6% year on year, 3.8 percentage points higher than the general growth of industrial enterprises above designated size. The sector contributed 70.6% of the overall growth of industrial enterprises above designated size. It reported double-digit growth in both the third and fourth quarters. New industries and products thrived. In 2020, the value added of high-tech manufacturing enterprises above designated size expanded 7.1% from the previous year, 4.3 percentage points higher than the general growth of all industrial enterprises above designated size. Many products saw their production increase significantly. New products such as 3D printing equipment, smart watches, civilian UAVs, and IC wafers saw their production more than double in response to huge market demand.

Third, the service industry gradually recovered. The sharp decline at the beginning of the year was followed by a gradual recovery quarter by quarter. Major indicators improved continuously, new growth drivers were active, and market confidence was constantly enhanced. In 2020, the value added to the service industry grew 2.1% from the previous year. The gain for the first, second, third, and fourth quarters were -5.2, 1.9, 4.3, and 6.7%, respectively. The modern service industry, led by new technologies, showed relatively good growth. From January to November, business revenues for high-tech service enterprises, technology service enterprises, and enterprises of emerging service sectors of strategic importance increased 12, 11, and 8.6%, respectively. New business forms and models expanded quickly. The COVID-19 epidemic gave rise to new business models. The integration of physical and online stores picked up speed; new technologies such as 5G, AI, and Internet of Things were used widely, and online entertainment and commerce like short videos and live commerce saw trend-bucking growth. Working from home, online education, online healthcare and other new business models boomed, injecting new vitality into the economy and are bound to continue growing this year.

In December 2020, the value added to industrial enterprises above designated size increased 7.3% year on year, the highest growth of 2020. However, judging from the past two years, December was still within the normal range. In March 2019, for example, the figure was 8.5%.

The transformation of traditional industries also quickened to better meet demand, to further strengthen R&D and sales, and to promote the integration of the service sector through industry and agriculture. China's industries have broad prospects and are bound to unleash new potential. Thank you.

Hu Kaihong:

Today's press conference ends here. Thank you, Mr. Ning. Thank you, everyone.

Translated and edited by Zhang Liying, Zhou Jing, Xu Xiaoxuan, Li Huiru, Guo Yiming, Zhang Rui, Wang Yanfang, Wang Mengru, He Shan, Wang Yiming, Wang Qian, Yuan Fang, Wang Wei, Zhang Jiaqi, Yang Xi, Yan Xiaoqing, David Ball, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

/3    Hu Kaihong

/3    Ning Jizhe

/3    Group photo