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Read in Chinese

Speakers:

Mr. Wang Jun, vice minister of the General Administration of Customs of China (GACC)

Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC 

Chairperson:

Ms. Jia Huili, deputy director general of the Press Bureau of the State Council Information Office (SCIO)

Date:

Oct. 13, 2025

Jia Huili:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Wang Jun, vice minister of the General Administration of Customs of China (GACC), to brief you on China's imports and exports in the first three quarters of 2025 and to answer your questions. Also attending today's press conference is Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC.

Now, I'll give the floor to Mr. Wang for his introduction.

Wang Jun:

Thank you, Ms. Jia. Good morning, friends from the media. I'm delighted to meet you all. I will start by briefing you on the imports and exports of goods in the first three quarters of this year, and then my colleague and I will answer your questions.

Since the beginning of this year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China's economy has maintained steady growth, achieving new results in high-quality development. Despite the complex external environment, China's foreign trade has forged ahead under pressure, sustaining positive growth momentum. According to statistics from the GACC, China's foreign trade of goods in the first three quarters of 2025 jumped 4% year on year to 33.61 trillion yuan. Specifically, exports grew by 7.1% to 19.95 trillion yuan, while imports fell by 0.2% to 13.66 trillion yuan. In September, imports and exports totaled 4.04 trillion yuan, increasing by 8%. Specifically, the trade performance can be characterized by five main features:

First, imports and exports have grown at a faster pace each quarter. In the first and second quarters, China's foreign trade grew by 1.3% and 4.5%, respectively, and the growth rate further increased to 6% in the third quarter, achieving year-on-year growth for eight consecutive quarters.

Second, the market has become increasingly diversified. In the first three quarters, China's trade with Belt and Road partner countries reached 17.37 trillion yuan, up by 6.2% and accounting for 51.7% of its total foreign trade, representing an increase of 1.1 percentage points. Trade with ASEAN, Latin America, Africa and Central Asia rose by 9.6%, 3.9%, 19.5% and 16.7%, respectively. Meanwhile, trade with other APEC economies grew by 2%.

Third, export products have become more advanced and their quality has improved. In the first three quarters, China's exports of mechanical and electrical products totaled 12.07 trillion yuan, up by 9.6% and accounting for 60.5% of total exports, an increase of 1.4 percentage points. Specifically, exports of high-tech products such as electronic information, high-end equipment, and instruments and apparatus increased by 8.1%, 22.4% and 15.2%, respectively. Exports of the "new trio" (namely, electric vehicles, lithium-ion batteries and photovoltaic products) and green products such as electric locomotives, all registered double-digit growth.

Fourth, imports have gradually picked up. With the effective release of domestic demand potential, imports increased by 0.3% year on year in the second quarter and accelerated to 4.7% in the third quarter. In the third quarter, the import volumes of crude oil and metal ores increased by 4.9% and 10.1% year on year, respectively, while the import value of measuring and testing instruments, as well as computers and communication equipment, increased by 9.3% and 8.9%, respectively.

Fifth, foreign trade entities have remained vibrant and active. In the first three quarters, the number of foreign trade enterprises with actual import and export activity in China reached 700,000, up by 52,000 from a year earlier. Among them, private enterprises numbered 613,000, with total trade of 19.16 trillion yuan, up by 7.8%; and foreign-invested enterprises totaled 80,000, with trade reaching 9.82 trillion yuan, up by 3.1%.

Overall, in the first three quarters, under the centralized and unified leadership of the CPC Central Committee, local governments and departments have worked hard and overcome difficulties, and foreign trade enterprises have actively adapted and innovated. China's foreign trade has demonstrated resilience and its structure has been optimized, achieving both quantitative growth and qualitative improvement — a result that has not been easy to achieve.

However, it is also important to recognize that the current external environment remains severe and complex, bringing increasing uncertainties and difficulties in the foreign trade sector. Coupled with high base figures from last year and other objective factors, maintaining stable growth in China's foreign trade in the fourth quarter will still require considerable effort.

The GACC will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, further enhance regulatory efficiency to strengthen border security, further promote trade facilitation and improve service quality, and further deepen comprehensive reforms to support high-level opening up, making a contribution to stabilizing and improving both the volume and quality of foreign trade throughout the year.

That is all for my introduction. Thank you.

Jia Huili:

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

National Business Daily:

We have noticed that despite the severe and complex external environment, China's imports and exports still achieved growth against the trend in the first three quarters. Could you analyze the reasons for this? In what ways is the resilience of China's foreign trade reflected? Thank you.

Wang Jun:

Thank you for your questions. Since the beginning of this year, our trade in goods has withstood pressure, achieved steady growth and shown strong resilience amid the complex environment, demonstrating confidence, vitality and determination.

Confidence is demonstrated mainly in the overall stable growth. As of September, China's imports and exports achieved year-on-year growth for four consecutive months. Major foreign trade provinces and cities have taken the lead, with the total imports and exports of Guangdong, Jiangsu, Zhejiang, Shanghai and Shandong increasing by 5.2% in the first three quarters, contributing more than 80% to the country's total growth. From an international perspective, China's imports and exports accounted for 11.8% of the total global goods trade value, maintaining the country's position as the world's largest goods trader.

Vitality is demonstrated mainly in the new growth drivers. With the continuous development of new quality productive forces and the improving and upgrading of key industries, the structure of China's export products has been continuously optimized and innovated. Chinese-made robots have embraced a wider range of applications and become increasingly popular in the international market. In the first three quarters, exports of industrial robots increased by 54.9%. Exports of wind power-related products grew quickly, with exports of wind turbines and their parts increasing by 23.9%. In addition, Chinese intangible cultural heritage products such as dragon boats, wood carvings and paper cuttings have incorporated contemporary trendy elements, and become widely popular overseas.

Determination is demonstrated mainly in the foreign trade entities rising to the challenge and striving determinedly for progress. In the first three quarters, the number of foreign trade enterprises with actual import and export activity in China reached 700,000 for the first time, exceeding the total of the previous year. A recent survey has shown that an index tracking confidence in the country's export companies has risen for five consecutive months, and another tracking confidence in import enterprises has increased for three consecutive months. Thanks to this fearless and pioneering spirit, our circle of foreign trade partners has become more diverse. International data showed that during the period from January to July, China was among the top three trading partners of 166 countries and regions worldwide, which was an increase of 14 compared to the same period last year.

Since the beginning of 2025, the global economy has faced increasing instability and uncertainty, with unilateralism and protectionism on the rise, putting pressure on China's foreign trade sector. However, our country enjoys a stable economic foundation, numerous advantages, strong resilience and enormous potential. With unchanging supporting conditions and a basic trend of long-term improvement, as well as a super-large market and complete industrial system, China's foreign trade has sustained its strong resilience and vitality, providing support for the stable development in the next stage. Thank you.

Jimu News:

I would like to learn more about the development of foreign trade in western China. Could you give us a detailed overview of the region's imports and exports in the first three quarters of this year? Thank you.

Wang Jun:

Certainly, and thank you for your interest in this topic. In recent years, western China has advanced its development through greater openness, gradually transforming from a landlocked hinterland into a new frontier of opening up. In 2024, the region's total imports and exports exceeded 4 trillion yuan for the first time, accounting for 9.2% of China's overall foreign trade. During the first three quarters of this year, foreign trade in the western region maintained strong momentum, reaching 3.21 trillion yuan, up 10.2% year on year. This growth can be attributed to three main factors: 

First, the dual driving forces of traditional and emerging industries. The region has continued to upgrade and improve the quality and efficiency of its distinctive and competitive industries. In the first three quarters, exports of traditional manufacturing products such as home appliances, motorcycles, and furniture grew by more than 20%. The deep processing of specialty agricultural products has greatly increased their added value, enabling products like coffee extract and caviar to reach global markets more quickly. The region is simultaneously advancing modern manufacturing and strategic emerging industries. Exports of high-tech products, such as advanced equipment, electronic information, and biopharmaceuticals, surpassed 450 billion yuan, marking a 26.4% increase. 

Second, faster progress in developing both trade platforms and logistics corridors. Recently, the comprehensive bonded zone at Chongqing's international railway port passed inspection, bringing the total number of such zones in western China to 41. This has further enhanced the region's appeal and capacity for enterprises. Simultaneously, major connectivity projects such as the New International Land–Sea Trade Corridor and the China-Europe freight trains are progressing, forming a comprehensive network of trade routes. In the first three quarters, imports and exports via the New International Land–Sea Trade Corridor totaled 611.5 billion yuan, up 19.3%, contributing 3.4 percentage points to the region's foreign trade growth.

Third, enhanced vitality and greater capability among market participants. A growing number of enterprises — private, foreign-funded, and state-owned — are focusing on developing in the west. In the first three quarters, 41,000 companies in western China recorded import and export activity, up 11.8% year on year. Among China's top 100 foreign trade enterprises, 12 are now based in the western region, two more than in the same period last year.

This year, China held its first-ever central conference on work related to neighboring countries, bringing new opportunities for the western region's opening-up and development. Customs authorities will increase efforts to support the region and further leverage its geographical advantages. The optimization of ports, and upgrading of trade corridors increase both domestic and international openness in western China. Thank you.

China News Service:

At the end of this month, the 32nd APEC Economic Leaders' Meeting will be held in the Republic of Korea (ROK). Could you please tell us about China's imports and exports with other APEC economies in the first three quarters of this year? Also, what is the trade situation with the ROK, the host of this year's APEC meetings? Thank you.

Wang Jun:

I would like to invite my colleague Mr. Lyu to answer your questions.

Lyu Daliang:

Thank you for the questions. China maintains close economic and trade ties with other member economies of the Asia-Pacific Economic Cooperation (APEC). Mr. Wang just mentioned, in the first three quarters, China's trade with other APEC economies grew by 2% year on year to reach 19.41 trillion yuan, accounting for 57.8% of the country's total foreign trade. Among this, China's imports and exports of high-tech products with other APEC economies both exceeded 2 trillion yuan, up 7.9% and 12% respectively, each accounting for over 60% of China's total imports and exports of such products. Exports of daily consumer goods to APEC partners rose by 5.7%, while imports of sports goods increased by 15.6%.

APEC serves as an important platform for regional economic cooperation. At present, Asia-Pacific cooperation faces challenges such as geopolitical tensions, unilateralism, and protectionism. Building greater consensus and deepening cooperation across various fields will help the region jointly tackle economic challenges and foster a more prosperous Asia-Pacific.

Regarding trade with South Korea, China's imports and exports totaled 1.74 trillion yuan in the first three quarters, up 2% year on year. Exports to South Korea totaled 771.28 billion yuan, up 0.6%, while imports from South Korea rose 3.1% to 967.17 billion yuan. In terms of specific goods, trade in mechanical and electrical products grew by 6%, while agricultural products increased by 3.3%.

China and South Korea are important and close neighbors and key partners for cooperation. Our industrial and supply chains are deeply integrated, forming a closely intertwined development pattern. China is South Korea's largest trading partner, while South Korea ranks fifth for China. Both sides should further expand economic and trade cooperation and work together to uphold the international free trade system. Thank you.

Nanfang Daily, Nanfang Plus:

In recent years, China's private enterprises have seen rapid growth in imports and exports. Could you elaborate on the key features and highlights of private enterprises' imports and exports during the first three quarters of this year? Thank you.

Wang Jun:

Thank you for your question. In February this year, General Secretary Xi Jinping attended a symposium on private enterprises and delivered an important speech. In May, the Private Sector Promotion Law was officially implemented, effectively boosting the vitality of private enterprises. In the first three quarters, private enterprises saw imports and exports reach 19.16 trillion yuan, up 7.8% year on year, with exports increasing 8.8% and imports rising 5.9%. The characteristics and highlights of private enterprises can be summarized in three aspects.

First, private enterprises are the backbone of stable foreign trade. As of the third quarter this year, private enterprises have posted year-on-year growth in imports and exports for 22 consecutive quarters. Especially this year, although private enterprises have faced severe challenges from a complex external environment, their import and export growth rates have continued to lead. In the first three quarters, they contributed 4.3 percentage points to China's overall foreign trade growth and accounted for 57% of China's total foreign trade value, an increase of 2 percentage points from the same period last year, continuing to maintain their position as China's largest foreign trade segment.

Second, private enterprises are pioneers in expanding markets. In the first three quarters, private enterprises' import and export growth rates with more than 180 countries and regions worldwide outpaced the national level. Exports to emerging markets such as ASEAN, Africa and Central Asia increased 14%, 27.3% and 11.8%, respectively, while growth to traditional markets like the EU and Japan also exceeded the overall level. In addition, private enterprises have actively reaching out to overseas customers, exporting fresh pomelos to New Zealand for the first time and steamed stuffed buns to Honduras, continually expanding export markets for China's specialty agricultural products and traditional food products.

Third, private enterprises are trailblazers in technological innovation. Private enterprises have continued to demonstrate strong innovation capacity, with a steady stream of new achievements emerging and providing fresh growth drivers for foreign trade. In the first three quarters, exports of high-tech products by private enterprises increased by 15.3%, accounting for 54.2% of China's total export value for similar products, up 1.6 percentage points. At present, nearly 80% of China's high-end machine tools, over 70% of lithium batteries, and almost 60% of medical devices are exported by private enterprises. From mega-ships to handheld devices, from industrial equipment to embodied intelligence, private enterprises are present in every sector.

Looking ahead, customs will continue to deepen reforms in clearance procedures, optimize regulatory services and strengthen policy guidance, supporting private enterprises as they expand overseas and helping promote the healthy, high-quality development of the private sector. Thank you.

CNBC:

I have two questions. The first is that, with the uncertainty brought about by China-U.S. trade frictions, some goods, such as Christmas products, have been exported to the United States earlier than usual. What other types of products have customs noticed being exported in advance, and what impact might this have on export growth in the fourth quarter? The second question is: How does customs view the impact on China's imports and exports following the imposition of port-of-call fees by both China and the U.S., effective on Oct. 14? Thank you.

Wang Jun:

Thank you. Mr. Lyu will answer these questions.

Lyu Daliang:

Okay, you raised two questions. Regarding the first question: Since the beginning of this year, some countries have arbitrarily imposed tariffs, which have undermined the multilateral trading system and disrupted the global trade order. These actions have interfered with the normal operations and pace of production and trade for businesses, damaging the interests of many enterprises. At the same time, they have also seriously interfered with the economic development of various countries, triggering widespread opposition from the international community. China has consistently supported and upheld the multilateral trading system, promoted the stability and smooth flow of global industrial and supply chains, and contributed certainty and stability to world economic growth. For information on the imports and exports of specific products, please refer to our website.

The second question is about port fees for ships. The relevant authorities have responded multiple times before. The measures taken by the U.S. are typical examples of unilateralism and protectionism, and are clearly discriminatory in nature. China's countermeasures are necessary defensive measures taken in response. They are steps we must take to protect the legitimate rights and interests of Chinese industries and enterprises, as well as to maintain a fair competitive environment in the international shipping and shipbuilding markets. We hope the U.S. side will correct its wrongdoings, work together with China, and return to the right track of dialogue and consultation. Thank you.

Elephant News:

Cross-border e-commerce has become a buzzword in the economic field in recent years and has emerged as a new growth driver for foreign trade. Can you provide an update on China's cross-border e-commerce sector in the first three quarters of this year? What specific measures will customs take next to support the development of cross-border e-commerce? Thank you.

Wang Jun:

Mr. Lyu will answer your questions.

Lyu Daliang:

Thank you for your questions. Cross-border e-commerce is a topic that receives consistent attention. Under China's statistical survey system for cross-border e-commerce, surveys are conducted on a semi-annual and annual basis. Here, I would first like to share the official data on cross-border e-commerce imports and exports for the first half of the year. In the first half of this year, China's cross-border e-commerce imports and exports reached 1.37 trillion yuan, up 10.3% year on year. This accounted for 6.3% of China's total import and export value during the same period, an increase of 0.4 percentage points compared to the same period last year. Specifically, exports stood at 1.03 trillion yuan, up 11.6%, while imports totaled approximately 281.18 billion yuan, an increase of 5.5%.

As a new form of trade, cross-border e-commerce has greatly facilitated consumers both in China and abroad. In terms of exports, the main product categories are clothing, footwear, bags, jewelry and accessories, digital products and components, and household and office appliances and their parts. For imports, the main categories are cosmetics and personal care items, food and fresh produce, pharmaceuticals, health supplements and medical equipment. China's "cross-border e-commerce + industrial belt" model has delivered notable results, with strong links between key consumer markets and import destinations. Most export goods originate from Guangdong, Zhejiang, Fujian, Jiangsu and Henan, while imports are primarily destined for Guangdong, Jiangsu, Zhejiang, Shanghai and Shandong.

Regarding the latest import and export figures for cross-border e-commerce, the current data is still preliminary and is provided for your reference. In the first three quarters, China's cross-border e-commerce imports and exports totaled about 2.06 trillion yuan, up 6.4%. Specifically, exports stood at about 1.63 trillion yuan, up 6.6%, while imports totaled approximately 425.54 billion yuan, an increase of 5.9%.

In recent years, customs have continued to deepen reforms and introduced a series of innovative measures to promote the high-quality development of cross-border e-commerce. We have launched "inspect first, ship later" pilot programs for pre-customs clearance inspections and promoted cross-customs returns for cross-border e-commerce retail exports. We have streamlined export declaration procedures for enterprises and actively supported innovative logistics models, such as the integration of cross-border e-commerce with the China-Europe Railway Express, which has improved logistics efficiency and reduced costs for businesses. We have also optimized the tax payment model by introducing electronic tax payments, allowing cross-border e-commerce enterprises to pay their taxes online through a new electronic system, reducing the need for onsite visits. We have continuously strengthened collaborative governance with cross-border e-commerce enterprises, enhanced information sharing and data connectivity with them, and embedded customs regulatory requirements into companies' business management processes, achieving more streamlined supervision.

Moving forward, we will strengthen targeted policy promotion and business training, and help coordinate and resolve problems encountered by enterprises in customs clearance in a timely manner. We will continue to optimize cross-border e-commerce regulatory model, make customs clearance more convenient and standardized for cross-border e-commerce enterprises, and support the continuous high-quality and well-regulated development of the sector. Thank you.

China Media Group:

You just mentioned that China's exports maintained strong growth momentum in the first three quarters of this year. What were the main reasons behind this? Also, we've noticed that the current international economic and trade situation is very complex and volatile. What does the outlook for exports look like going forward? My question is for Mr. Wang.

Wang Jun:

Thank you. Exports are a topic of great interest to everyone. Since the beginning of this year, China's exports have effectively responded to various pressures and challenges, maintaining strong growth momentum. In the first three quarters, the growth rate exceeded 7%, marking eight consecutive quarters of growth. Based on our preliminary analysis, there were several driving factors.

First, China's complete industrial system laid a solid foundation for export growth. China boasts a large industrial scale, a complete range of industrial categories and strong supporting capabilities. It is a key link in global industrial and supply chains. According to global trade data, China's share of industrial product exports has ranked first worldwide since 2008, with the proportion approaching 20% in recent years. According to customs statistics, China's manufacturing exports have grown for eight consecutive years, with a 7.1% increase in the first three quarters of this year. Exports of products in sectors such as special equipment manufacturing, automobile manufacturing and instrument manufacturing all maintained double-digit growth.

Second, improved innovation capabilities unleashed export growth potential. As China has accelerated the cultivation of new growth drivers and advantages in manufacturing, new technologies and products have emerged one after another. In the first three quarters, China exported 3.75 trillion yuan worth of high-tech products, an 11.9% increase that contributed more than 30% to overall export growth during the same period. Among them, exports of ships and marine engineering equipment increased 25.5%. Recently, China exported a liquefied natural gas production platform worth nearly 15 billion yuan, with an annual capacity sufficient to meet the residential gas needs of a city with 10 million people. Technological innovation has also driven brand development. In recent years, the share of domestic brands in exports of electric vehicles and agricultural machinery has increased steadily. In the first three quarters of this year, the figures reached 59.5% and 40.2%, respectively, showing significant increases from the same period last year.

Third, adapting to market demand has expanded growth opportunities. More and more companies are closely tracking changes in international market demand and actively providing customers with personalized and customized solutions. For example, Chinese companies launched portable split air conditioners with flexible installation options for both indoor and outdoor units. These products, designed to suit European building structures and climate conditions, helped drive a more than 20% increase in air conditioner exports to Europe in the first three quarters of the year. In another example, Chinese companies developed solar streetlights that can track the sun's trajectory in real time for tropical and rainy regions, significantly improving power generation efficiency. In the first three quarters, China's exports to about 80% of its trade partners achieved growth.

The process of economic globalization is currently facing headwinds and countercurrents. Several international organizations have highlighted significant risks to the global economic outlook, with trade policy uncertainties emerging as a key constraint on worldwide economic growth. Nonetheless, economic globalization continues to be an unstoppable historical trend. Ensuring the resilience and stability of global industrial and supply chains is in the shared interest of all nations. China has been an important force in maintaining the stable and smooth operation of global industrial and supply chains. The existing and new domestic policies continue to yield results. Foreign trade enterprises are meeting international market demands with high-quality supply. Together, these will inject new momentum into our country's exports. Thank you.

Phoenix Satellite Television:

My question is about imports. Recent data indicate a steady recovery in imports over the past three quarters, highlighted by a strong rebound in the third quarter. Nevertheless, import growth lagged behind the pace of export expansion overall. What does the GACC think about the main reason? What is the outlook for imports in the coming months? Thank you.

Wang Jun:

Thank you for your questions. Mr. Lyu Daliang will answer this question.

Lyu Daliang:

Thank you. Mr. Wang just covered exports, and I will now brief you on imports. China is the world's second-largest goods import market, and the country's large market presents a great opportunity for the world. The decline in international prices for certain bulk commodities in the first three quarters affected the growth rate and value of imports. However, in terms of volume, China's import volume index increased by 0.6% year on year. As of September, imports had risen for four consecutive months on a monthly basis. Driven by domestic production and consumption demand, imports of crude oil and metal ores increased by 2.6% and 4.2%, respectively. The imports of food, beverages, tobacco, as well as cultural and entertainment products also grew by 10.2% and 9.4%, respectively. With the removal of restrictions on foreign investment in the manufacturing sector, imports by foreign-invested enterprises in China rose by 1.1% in the first three quarters.

To understand China's imports, one should not only consider the market scale but also China's proactive role in expanding imports as a major country. China is opening its doors wider to the world, offering more trade partners the opportunity to benefit from its modernization and development. In the first three quarters, China approved the import of 135 new types of agricultural and food products, involving 50 countries and regions. For the least developed countries that have diplomatic relations with China, we have implemented a policy granting zero-tariff treatment for 100% of tariff lines, resulting in a 9.7% increase in imports from those countries. At the same time, China is actively promoting to negotiate and sign the agreement of China-Africa Economic Partnership for Shared Development, aiming to grant zero-tariff treatment on 100% of tariff lines for 53 African countries which have set up diplomatic relations with China.

Next month, the eighth China International Import Expo will be held in Shanghai. The expo is not only a platform for showcasing new products, but also a precious opportunity for multinational companies to enter the Chinese market. Now, exhibits from around the world are being shipped. It is said that a series of cutting-edge technology products, such as companion robots for households, will make their debut at the expo. Customs will enhance clearance efficiency, leverage advanced technologies, innovate regulatory frameworks, and enable more global enterprises to thrive in China's vast market. Thank you.

The Poster News APP:

As mentioned earlier, in the first three quarters, China's foreign trade with Belt and Road partner countries sustained strong momentum. What were the key highlights? Thank you.

Wang Jun:

Thank you for your question. In the first three quarters of this year, China's imports and exports with Belt and Road partner countries reached 17.37 trillion yuan, up 6.2% year on year. This was 2.2 percentage points higher than the overall growth rate of China's imports and exports during the same period. In terms of imports, 64.6% of China's bulk commodity imports came from Belt and Road partner countries, representing an increase of 1.1 percentage points compared with the same period last year. Since the beginning of this year, the GACC has signed more than 100 cooperation documents with counterpart departments in Belt and Road partner countries, including over 70 agreements on market access for agricultural and food products. Partner countries accounted for 69.1% of China's total agricultural import value, an increase of 3.1 percentage points compared with the same period last year. In terms of exports, exports of electronic information products to Belt and Road partner countries rose 16.6%, high-end equipment 37% and wind power generator sets 58%. Exports of textiles and clothing, food, furniture, automobiles and other daily necessities all achieved growth.

High-quality Belt and Road cooperation is a public good that China provides to the international community and has become the world's largest and most extensive platform for international cooperation today. High-level unimpeded trade continues to create new opportunities for development cooperation among partner countries. To fully showcase the achievements of China's foreign trade development with Belt and Road partner countries, we compile an annual trade index between China and partner countries. We set the base year, 2013, at 100. The latest results show that the index rose to 198 in 2024, fully reflecting the strong momentum and growth potential of economic and trade cooperation between China and partner countries. In 2024, the proportion of imports and exports with partner countries exceeded 50% for the first time. It further increased to 51.7% in the first three quarters of this year.

Moving forward, customs will continue to follow the guidance of the eight major steps for high-quality Belt and Road cooperation, deepen collaboration with the customs authorities of partner countries, enhance customs clearance efficiency, and help take China's economic and trade cooperation with partner countries to new heights. Thank you.

Dazhong Daily:

From the perspective of trade patterns, what are the import and export figures for the processing trade in the first three quarters? What development trends have emerged? Thank you.

Wang Jun:

Thank you. The processing trade is an important trade model that links domestic and international dual circulation. Since 2010, China's annual import and export volume under the processing trade has remained above 7 trillion yuan. In the first three quarters of this year, imports and exports under the processing trade reached 6.18 trillion yuan, growing 6.9% year on year and accounting for 18.4% of China's total foreign trade value. The contribution to import and export growth exceeded 30%. Among China's exports, 60% of laptops and 70% of game consoles were exported under the processing trade model.

I would like to highlight a few positive developments in the processing trade since the beginning of this year. The first positive development is that the processing trade has continued to advance into higher value-added segments. In the first three quarters, high-tech products accounted for 32.6% of processing trade exports, up 0.4 percentage point year on year. This share was higher than the overall high-tech product export average. An increasing number of enterprises are becoming specialized and innovative "little giants" by deeply cultivating niche fields and driving technological innovation. The second positive development is that the shift of processing trade to different regions has yielded remarkable results. Imports and exports under the processing trade in the central and western regions reached 1.56 trillion yuan, up 11.9%, accounting for 25.7% of the regions' total foreign trade value. This share was 7.3 percentage points higher than the national average. Among them, exports of flat panel display modules, electrical equipment and medical instruments all recorded rapid growth. The third positive development is that market diversification in the processing trade has improved. Imports and exports under the processing trade with Belt and Road partner countries increased 13.9%, 7 percentage points higher than the overall growth rate of the processing trade.

Customs will continue to introduce measures to support the high-quality development of the processing trade and continuously innovate regulatory models. These efforts will facilitate the expansion of the processing trade into new business forms, such as bonded maintenance and bonded leasing, injecting fresh momentum into its development. Thank you.

Jinan Times APP:

Could you brief us on trade between China and ASEAN in the first three quarters? In addition, what new opportunities will the official signing of the China-ASEAN Free Trade Area 3.0 Upgrade Protocol bring for trade between China and ASEAN? Thank you.

Wang Jun:

Thank you. I'd like to invite Mr. Lyu to answer your questions.

Lyu Daliang:

ASEAN is China's largest trading partner. Since China and ASEAN established a comprehensive strategic partnership in 2021, bilateral economic and trade cooperation has grown ever closer, with the trade volume successively surpassing the milestones of 5 trillion yuan and 6 trillion yuan. Last year, it reached 6.99 trillion yuan, nearly 7 trillion yuan. In the first three quarters of this year, the total value of China's imports and exports with ASEAN countries reached 5.57 trillion yuan, up 9.6% year on year, accounting for 16.6% of China's total foreign trade. ASEAN has remained China's largest trading partner, while the mutually beneficial economic and trade relationship, characterized by complementary advantages, has continued to deepen.

From the consumer perspective, it has enriched consumption choices on both sides. ASEAN has been China's largest trading partner in agricultural products for eight consecutive years. In the first three quarters of this year, China's imports of agricultural products from ASEAN rose 15.3%, accounting for 19.1% of the country's total agricultural import value. ASEAN has become China's second-largest source of agricultural imports. Among these imports, the volume of fruit shipments entering the Chinese market via the China-Laos Railway, a "golden thoroughfare," soared 37.8%, allowing domestic consumers to enjoy tropical flavors more quickly and with greater freshness. At the same time, ASEAN is also China's largest market for agricultural exports. In the first three quarters, exports of citrus fruits, lettuce and other produce to ASEAN grew rapidly, allowing consumers in the region to enjoy an even wider variety of "Chinese flavors."

From an enterprise perspective, it has supported industrial cooperation between the two sides. With the full implementation of China's multilateral and bilateral free trade agreements with ASEAN as a whole and individual ASEAN member states, the benefits of tariff reductions and trade facilitation policies continue to take effect. Industrial and supply chain integration within the region has deepened, further expanding the space for industrial cooperation between China and ASEAN. In the first three quarters, China's exports of textile machinery and textile raw materials to ASEAN climbed 28.2% and 13.4%, respectively, while imports of garments rose 9.3%. Additionally, China's imports of rubber from ASEAN jumped 40.7%, and exports of auto parts, including tires, grew 19.8%.

From the perspective of importers and exporters, trade channels between the two sides have become smoother. China and ASEAN are connected by mountains and rivers. The BRI has been fully aligned with the Master Plan on ASEAN Connectivity 2025, and a number of landmark projects, such as the China-Laos Railway, have been completed. The multidimensional connectivity network has continued to improve, providing strong support for deepening economic and trade cooperation. In the first three quarters, China's trade with ASEAN via land transportation rose 21%, while shipments by sea, air and other means also continued to grow rapidly.

The China-ASEAN relationship has become the most successful and dynamic model of regional cooperation in the Asia-Pacific. As you just mentioned, the negotiations on CAFTA 3.0 have been fully concluded. We believe this will inject new impetus into the development of bilateral economic and trade relations, while providing greater certainty for regional and global trade. Customs will continue to enhance supervision capabilities and service quality, and lift China-ASEAN bilateral economic and trade cooperation to new heights. Thank you.

Jia Huili:

The last two questions, please.

Xinhua News Agency:

Through Mr. Wang's introduction, we learned how Chinese trendy toys are breathing new life into the country's foreign trade by blending traditional culture with Chinese manufacturing. May I ask how the overseas expansion of Chinese trendy brands has been progressing this year? What new support measures have customs authorities introduced? Thank you.

Wang Jun:

Thank you. The questions you raised have attracted considerable public attention. We are pleased to see that in recent years, many domestic "trendy brands" have become global bestsellers, winning favor among overseas consumers and emerging as a new highlight of China's foreign trade exports. In the first three quarters, China's exports of holiday supplies, dolls and animal-shaped toys exceeded 50 billion yuan, reaching more than 200 countries and regions worldwide. Many of these products are produced by the country's trendy domestic brands.

These products have gained worldwide popularity, reflecting the influence of traditional Chinese culture, demonstrating the creativity of China's foreign trade enterprises and building upon the solid foundation of Chinese manufacturing. For example, last week's Mid-Autumn Festival saw Chinese-style lanterns and bamboo-woven little rabbits win over countless overseas fans. Blind box figurines and collectible models, which are familiar to many, blend cultural elements with brand value and represent original Chinese trendy toy IPs. Chinese toy companies, by using 3D printing technology, have reduced their new product development cycle from 15 days to three, shifting from leading in scale to leading in strength.

Going forward, we will further enhance the protection of IP rights by customs, support enterprise innovation and development, continue to optimize the business environment for cross-border trade, and introduce facilitation measures to ensure that these popular products are delivered efficiently and seamlessly to consumers worldwide. Thank you.

Jia Huili:

The last question, please.

Cover News:

The Shanghai Cooperation Organization (SCO) Summit was held in Tianjin this September. What has been the status of China's economic and trade relations with SCO member countries so far this year? Thank you.

Wang Jun:

I'd like to invite Mr. Lyu to answer this question.

Lyu Daliang:

Since the establishment of the SCO 24 years ago, SCO member states have shared opportunities and pursued development together, achieving fruitful results in cooperation across various fields. China's imports and exports with other SCO member states have risen from around 100 billion yuan when the organization was founded to 3.65 trillion yuan in 2024. The latest statistics show that in the first three quarters of this year, China's imports and exports with other SCO member countries reached 2.75 trillion yuan, up 2.4% year on year and hitting a record high for the same period.

According to the data, the accelerated development of the China-Europe Railway Express, the expansion of international road transport routes, and the densification of the air cargo network have all promoted deeper trade ties within the SCO. In the first three quarters of this year, China's imports and exports with other member countries by rail transport exceeded 360 billion yuan, accounting for 70% of China's total rail trade. Meanwhile, imports and exports via road and air increased 10.9% and 37%, respectively. The number of business entities participating in trade is increasing, and personnel exchanges are becoming more convenient. In the first three quarters, more than 190,000 enterprises engaged in trade with other SCO member countries, an increase of about 8,500 compared with the same period last year. It is reported that since the beginning of this year, the number of merchants from SCO countries who visited Yiwu, Zhejiang to source goods and start businesses has exceeded 100,000, up more than 10,000 year on year.

China is actively promoting the entry of agricultural products from its SCO circle of friends. In the first three quarters of this year, China imported 74.3 billion yuan of agricultural products from other member countries, up 6.1% year on year. Increasingly, distinctive agricultural and food products from SCO countries are making their way into the daily lives of Chinese consumers. During the same period, China's exports of agricultural machinery, pharmaceuticals and medical devices to other SCO member countries rose 51.9%, 14.7% and 13.4%, respectively, helping these countries upgrade related industries and improve their people's well-being.

The markets of SCO member countries are vast and have strong internal growth momentum, continuously increasing their contribution to world economic growth. Moving forward, customs authorities will thoroughly implement the outcomes of the SCO Summit in Tianjin and expand cooperation with other member countries in areas such as customs clearance facilitation, inspection and quarantine. We will also continue to optimize the business environment at ports and provide more convenient and efficient customs clearance services to further deepen trade and investment cooperation. Thank you.

Jia Huili:

Today's briefing is hereby concluded. Thank you to all the speakers and friends from the media. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Lin Liyao, Cui Can, Xu Kailin, Li Xiao, Liu Jianing, You Jiaxin, Zhang Tingting, Mi Xingang, Zhou Jing, Huang Shan, Wang Yiming, Li Huiru, Zhang Rui, Gong Yingchun, Fan Junmei, Zhang Junmian, David Ball, Tudor Finneran, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Ms. Huang Xiaowei, deputy head of the National Working Committee on Children and Women under the State Council, vice president of the All-China Women's Federation (ACWF), and first member of the Secretariat of the ACWF

Ms. Feng Ling, vice president of the ACWF and a member of the Secretariat of the ACWF

Ms. Wang Yaping, vice president of the ACWF (part-time) and a member of the Taikonaut Corps of the People's Liberation Army of China 

Ms. Ma Liejian, a member of the Secretariat of the ACWF

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

Sept. 19, 2025

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO).

Today, the SCIO has organized this press conference to release the white paper titled "China's Achievements in Women's Well-Rounded Development in the New Era" and to present and interpret its main content.

The white paper presents a systematic account of China's philosophy on advancing women's development. It highlights the remarkable progress made in promoting gender equality and women's development since the 18th National Congress of the Communist Party of China (CPC), particularly over the past five years, and outlines China's active contributions to the global advancement of women.

The white paper consists of preface, main body and conclusion, totaling around 27,000 Chinese characters. The main body comprises five chapters: Development of China's Endeavors Concerning Women, Boosting the Well-Rounded Development of Women as a National Campaign, Sharing in the Fruits of Modernization, Advancing Women's Development to the Forefront of the Times, and Contributing to the Global Advancement of Women.

The white paper is published in eight languages: Chinese, English, French, Russian, German, Spanish, Arabic and Japanese. It is published by the People's Publishing House and Foreign Languages Press, and is available at Xinhua Bookstores nationwide.

To help you better understand the contents of the white paper, we are honored to have with us Ms. Huang Xiaowei, deputy head of the National Working Committee on Children and Women under the State Council, vice president of the All-China Women's Federation (ACWF), and first member of the Secretariat of the ACWF. She will brief you on the paper and take your questions.

Also attending today's press conference are Ms. Feng Ling, vice president of the ACWF and a member of the Secretariat of the ACWF; Ms. Wang Yaping, vice president of the ACWF (part-time) and a member of the Taikonaut Corps of the People's Liberation Army of China; and Ms. Ma Liejian, a member of the Secretariat of the ACWF.

Now, I'll give the floor to Ms. Huang for her introduction.

Huang Xiaowei:

Thank you. Ladies and gentlemen, friends from the media, good afternoon. I am delighted to join you in witnessing the release of the white paper "China's Achievements in Women's Well-Rounded Development in the New Era." First, I would like to take this opportunity to express my heartfelt thanks to all friends for your long-term concern about the issue of women's development and the work of the ACWF.

In line with the initiative of General Secretary Xi Jinping, a Global Leaders' Meeting on Gender Equality and Women's Empowerment will soon be held again in Beijing. To mark the 30th anniversary of the Fourth World Conference on Women, the United Nations convened a high-level meeting in Geneva on Sept. 8 and will convene another meeting in New York on Sept. 22. We are releasing this white paper today to offer a full account of China's results in implementing the Beijing Declaration and Platform for Action, and to present China's philosophy, practices and achievements in promoting gender equality and women's well-rounded development in the new era.

Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has incorporated the advancement of women's cause into the overall framework of Chinese modernization. General Secretary Xi Jinping has presented important ideas and proposals on work related to women, children and women's federations, as well as on fostering strong family ties, values and traditions. These constitute an integral part of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. A series of major initiatives of pioneering vision, overarching significance and long-term impact have been implemented, which have led to historic achievements in women's cause in China. Women's development in China has been comprehensively advanced, and the Chinese socialist path for women's development has demonstrated great vitality and distinctive strengths. This has contributed a vivid example of China's governance to the world, injecting new elements into human civilization and opening up new pathways. Here, I would like to summarize the situation through "four unprecedented advances."

First, the attention and support from the Party and the state for women's cause are unprecedented. In the new era, China has closely integrated the course of national development and progress with the promotion of gender equality. The Party's leadership has been comprehensively strengthened. The reports to the 18th, 19th and 20th CPC National Congresses all emphasized "upholding the basic national policy of gender equality and protecting the lawful rights and interests of women and children." General Secretary Xi Jinping has given a series of important instructions, and Party committees at all levels hold special meetings every year to deliberate on women's work, providing strong political guarantees for the development of women's cause. The will of the state has been fully demonstrated. The Civil Code, including a Marriage and Family section, has been promulgated; the Anti-Domestic Violence Law has been enacted; the Law on the Protection of Women's Rights and Interests has been comprehensively revised; and the Criminal Law and the Law on Land Contract in Rural Areas, among others, have been amended. A gender equality review mechanism has been established at the national level and across provinces, autonomous regions, and municipalities directly under the central government. Planning has played an increasingly guiding role. A planning system has been formed, led by national development plans, with the outlines for women's development as the mainstay, supported by special plans in related fields and at local levels. This system ensures horizontal coordination and vertical integration, with quantifiable objectives, operable measures, concrete tasks and measurable outcomes. The working mechanisms have become more robust and effective. A structure has taken shape in which Party committees exercise leadership, governments assume primary responsibility, working committees on women and children play a coordinating role, women's federations work in collaboration, relevant departments provide support, and the whole of society participates. These efforts have translated institutional strengths into effective drivers for the development of women's cause.

Second, women's sense of fulfillment, happiness and security has reached unprecedented levels. In the new era, China has adhered to safeguarding women's rights and interests through development and improving women's well-being via concrete progress. More than 690 million women have simultaneously become part of our moderately prosperous society in all respects. Women from previously impoverished areas now have access to safe housing, clean water and broadband internet, radiating confidence from within. Women's health has improved dramatically. Average life expectancy has reached 80.9 years, an increase of 3.5 years since 2010. The systematic maternal management rate has risen to 94.9%, up 7.3 percentage points since 2012. The maternal mortality rate has dropped 41.6% compared to 2012. China has been recognized by the WHO as one of the 10 countries with high performance in maternal and child health. Women enjoy balanced and high-quality education. Gender gaps in basic education have essentially been eliminated, and female students now account for 50.76% of students in higher education enrollment. Education in science, technology, engineering and mathematics has empowered girls to reach new heights, making education empowerment the primary driving force of women's success in life. Social security for women is comprehensive and practical. Medical and pension insurance systems have achieved universal coverage in China, with women representing over 48% of total participants in insurance programs. Female participation in unemployment and work-injury insurance has increased 1.7-fold and 1.6-fold, respectively, since 2012. The safety net for women in difficult circumstances is solid and comprehensive. Women equally across the country share in the achievements of modernization, developing with greater confidence.

Third, women's role in "holding up half the sky" has been more comprehensively demonstrated across all fields than ever before. In the new era, China regards women as an important force in advancing Chinese modernization, guiding them to become builders of great undertakings, advocates of civilized practices, and courageous pursuers of their dreams. In terms of high-quality development, women account for 43% of employed personnel and 45.8% of scientific and technological workers. Among participants in emerging sectors such as digital trade, e-commerce and livestreaming, women make up one-third of practitioners. In frontier areas such as domestically produced large passenger aircraft, biomedicine, deep-sea exploration and artificial intelligence, women have made outstanding contributions. The currently popular movie "Shenzhou 13" was co-produced by female astronaut Wang Yaping, who is sitting here on stage with us, and her colleagues. In terms of political participation, the proportion of women among deputies to the 14th National People's Congress, members of the National Committee of the Chinese People's Political Consultative Conference, and delegates to the 20th CPC National Congress has reached historic highs. Women account for 54.3% and 26.1% of neighborhood and village committee members, respectively, up 5.5 and 4 percentage points from 2012. This vividly reflects the most extensive, genuine and effective democratic practice. In terms of cultural development, women account for 45.2% of successful candidates in the cultural talent program and one-quarter of national-level intangible cultural heritage inheritors. Female cultural talents and their outstanding works continue to emerge in great numbers. Yu Lei, who was the chief director of this year's V-Day commemorations on Sept. 3, is also a woman. In primary-level social governance, there are more than 431,000 women's deliberative councils, over 7 million ACWF executive committee members, and more than 24 million registered female volunteers active in urban and rural communities. They resolve conflicts "at the doorstep," deliver services "to the heart," and integrate family, family education and family values into daily life. In ecological and environmental protection, women guide their families and inspire children to actively participate in afforestation activities, the "Clear Your Plate" campaign, waste sorting, and environmental improvement. To date, more than 12 million households have been awarded the title of "Beautiful Courtyard," contributing to a greener, more beautiful China.

Fourth, China's deep participation in global governance on women's affairs has reached unprecedented levels. In the new era, China upholds the concept of building a community with a shared future for humanity, and has translated the four major global initiatives proposed by General Secretary Xi Jinping into concrete actions to promote the comprehensive development of women. We have firmly fulfilled international conventions, supported the United Nations in prioritizing women's work, jointly established the Prize for Girls' and Women's Education with the U.N., and held the Global Leaders' Meeting on Gender Equality and Women's Empowerment. We are expanding our circle of friends for women's cooperation, maintaining friendly exchanges with over 140 countries, more than 420 women's organizations and institutions, and various U.N. agencies. We have implemented empowerment projects worth over $40 million in more than 20 countries, trained more than 200,000 female talents from more than 180 countries and regions, supported women's employment in over 100 countries, established the Global Exchange and Cooperation Center for Digital Empowerment of Women, and held training courses for Chinese and foreign female entrepreneurs. These actions demonstrate our practical efforts to bridge the digital gender gap. In the face of global challenges, China has sent more than 1,200 female military personnel to participate in U.N. peacekeeping operations, continuously conducted specialized training on climate change, and provided humanitarian assistance to women and children affected by conflicts and disasters, reflecting the responsibilities of a major country.

Ladies and gentlemen, friends:

Modernization is the shared pursuit of all peoples, and it requires harnessing the broadest possible strength of women and promoting gender equality and women's comprehensive development at a higher level. China is willing to join hands with countries around the world to accelerate action and create a bright future for women's development, writing a new chapter in the global advancement of women!

That concludes my briefing. Thank you.

Shou Xiaoli:

Thank you, Mrs. Huang, for your opening remarks. We will now move to the Q&A session. Please identify the media outlet you represent before asking your questions. Please raise your hand to ask questions.

China Media Group (CMG):

Mrs. Huang has just systematically introduced the historic achievements of women's development in China since the 18th CPC National Congress, and each of us has personally experienced these changes. What valuable experiences have been gained in this process to promote women's development? Thank you.

Huang Xiaowei:

Thank you. The question you raised is very important, and I will answer it. In the new era, the CPC has united and led the people in writing a new chapter of the twin miracles of rapid economic growth and long-term social stability, successfully advancing and expanding Chinese modernization. Women's development has also entered a golden period, marked by comprehensive leaps in progress, greater prominence of women's roles, wider benefits for women, and a more favorable development environment. In practice, we have accumulated valuable experience.

First, we must uphold the comprehensive leadership of the Party. This is the fundamental guarantee for ensuring that the women's cause always moves in the right direction. Every year on International Women's Day, General Secretary Xi Jinping extends greetings and best wishes to women across the country. He has attended the National Women's Congress three consecutive times, held collective talks with the new leadership of the ACWF three times, and delivered a series of important speeches and remarks. Every step and achievement in women's development in the new era fundamentally relies on having General Secretary Xi Jinping as the core navigator and helmsman of the CPC Central Committee and the whole Party, and on the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We firmly uphold establishing Comrade Xi Jinping's core position on the CPC Central Committee and in the Party as a whole, and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We resolutely uphold Comrade Xi Jinping's core position on the CPC Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership. We always maintain a high degree of consistency with the CPC Central Committee with Comrade Xi Jinping at its core in terms of ideology, politics, and actions.

Second, we must firmly grasp the theme of the times. Women's cause has always been closely connected with the central tasks of the CPC. We should firmly embrace the realization of the great rejuvenation of the Chinese nation as the theme of our times, instilling in women a profound sense of historical responsibility and pride as masters of the country. We encourage them to consciously align their personal and family aspirations with the grand mission of national prosperity, rejuvenation, and the well-being of the people. Women are called to be builders of great endeavors, champions of cultural progress, and diligent dreamers who boldly pursue their goals. 

Third, we must adhere to the fundamental national policy of gender equality. Promoting gender equality and the comprehensive development of women are all important aspects of Chinese modernization. In formulating laws and policies and making plans and arrangements, China has taken into full consideration the differences between women and men and the distinctive interests of women. The country has been committed to creating an enabling environment, removing barriers, and establishing necessary conditions for the comprehensive development of women, while coordinating the balanced development between urban and rural areas, regions, and groups, and promoting the synchronized and coordinated development of women's causes and economic and social development.

Fourth, we must adhere to respecting the agency of women. Women constitute a powerful force driving the progress of human civilization, while at the same time shaping and determining their own futures. China has combined empowering women with stimulating women's innovation and creativity, and integrated protecting women's legitimate rights and interests with promoting women's comprehensive development, which seeks to stimulate the spirit of self-esteem, confidence, independence, and self-reliance among Chinese women. It fully plays to their distinctive role in society and family, whilst vigorously promoting women's equal rights to participation, benefits, and development.

That's all from me, thank you!

Jinan Times APP:

Maternal and child health is the cornerstone of national health. We can see that the level of maternal and child health in our country improve steadily. In terms of core maternal and child health indicators, China ranks among the top in global upper-middle-income countries. What specific measures has China taken to protect women's health? Thank you.

Huang Xiaowei:

I'd like to invite Ms.Ma Liejian to answer the question.

Ma Liejian:

Thank you for your question. Maternal and child health is a prerequisite for sustainable development. China prioritizes people's health in its development strategy, making an all-out effort to build a healthy China, whilst providing women with full life-circle health services.

First, we have continuously improved the maternal and child healthcare service system. China has integrated its maternal and child healthcare service network into its national medical and healthcare framework that covers its 1.4 billion people. A service system for maternal and child healthcare has been built with maternal and child healthcare institutions at its core, community-level medical and healthcare institutions as its foundation, and large and medium-sized hospitals and research institutes as its pillars. At present, China has 3,081 maternal and child healthcare institutions, 3,491 treatment centers for high-risk and critically ill pregnant and postpartum women, and 3,221 treatment centers for critically ill neonates. More than 2,600 traditional Chinese medicine hospitals at Grade II and above have gynecological departments. The "internet plus maternal and child healthcare" service model has been developed, significantly enhancing the level of service equalization.

At the same time, we have concentrated on breakthroughs in solving key issue. For example, in order to reduce the mortality rate of pregnant women and newborns, we have implemented the five mechanisms for maternal and neonatal safety. Based on the severity of pregnancy risk, pregnant and postpartum women are classified into five categories, each assigned a specific color label. Their medical treatment is then managed according to this classification. The system closely monitors key high-risk groups and strengthens the emergency treatment of critical and severe cases, thereby effectively ensuring the safety of mothers and newborns. For example, as cervical cancer and breast cancer have become malignant tumors that seriously threaten women's health, China has adopted comprehensive prevention and control strategies. China strives to achieve "early prevention" through health education and HPV vaccination. Recently, relevant departments have announced that this year China will launch HPV vaccination services for eligible girls and include the HPV vaccine in the national immunization program. At the same time, China makes efforts to achieve "early detection" through the implementation of "two cancers" screening. Since 2009, 342 million free screenings for cervical cancer and 245 million free screenings for breast cancer were carried out nationwide. By increasing efforts in early diagnosis and treatment and improving service capacity to achieve "early recovery", China allocated 3.01 billion yuan for treatment and support for women with these forms of cancer.

We have also implemented "the Healthy China Mother's Action", and vigorously carried out health knowledge publicity and education, improving maternal and child health levels by multiple measures. In terms of core maternal and child health indicators, China ranks among the top in global upper-middle-income countries. It has met the relevant targets of the United Nations 2030 Agenda for Sustainable Development ahead of schedule. Thank you.

CETV:

My question is for Ms. Wang Yaping. Hello Ms. Wang, Chinese female astronauts have not only realized the dream of women walking in space, but also inspired children's dreams of scientific exploration through space lectures. In your opinion, how should China unleash the potential of female scientific talents and fulfill the role of "half the sky" in the process of building China into a sci-tech powerhouse and achieve greater self-reliance and strength in science and technology? Thank you.

Wang Yaping:

Thank you for your question, and thank you all for your continued care and attention to me. As an astronaut, I am also surrounded by many outstanding female scientific workers who are an important force in the national science and technology cause. As far as I know, China has also implemented a series of measures to support and encourage women to play a greater role in scientific and technological innovation. I would like to share three specific measures with you:

First is the support of systems and policies. Thirteen state-level departments have jointly issued special measures to provide institutional guarantees from 16 aspects. For example, the National Natural Science Foundation has relaxed the age limit for women to apply for various scientific research funding projects. Research institutions are exploring the establishment of child care subsidies and flexible working systems to reduce the pressure on female researchers during pregnancy, breastfeeding and family care, thereby allowing them to devote themselves to scientific research without distractions. In my opinion, it is precisely these kinds of positive policies that have allowed the outstanding female sci-tech researchers around me to balance their family and career, showcasing the independence, confidence and wisdom of women in the new era.

Second is the atmosphere and opportunities that come from creating gender equality. Take the profession of astronaut for example. The training content and standards for male and female astronauts are the same — space does not lower its requirements for women. As such, during ground training, female astronauts must complete the same exercises as male astronauts, such as centrifuge tests, multi-axis trainer trials, spacewalk simulations and survival training. In space, female astronauts also need to complete tasks such as extravehicular repairs and experiments, relying on their professionalism. It is the concept of gender equality that allowed me the opportunity to undertake two spaceflight missions, and to realize my personal dreams while also contributing to society.

Third is that role models spark dreams. The power of role models is infinite. As I grew from an ordinary girl into an astronaut, I was continuously inspired and encouraged along the way by my predecessors. Now, when I participate in space lectures and space education popularization activities, it brings me immense joy to see the longing for space and the desire for the unknown in children's eyes. There was one girl named Wang Nan, who attended my space lectures during the Shenzhou-10 mission when she was in high school. The 40-minute class ignited a scientific dream in her, which she pursued for over a decade. Now, she has fulfilled her aspiration and works alongside me as a fellow aerospace professional. There are many more such examples. Space science education is like a spark, igniting dreams and making girls believe that as long as they work hard, their dreams are within reach.

I have also witnessed more and more women taking on the heavy responsibility of development and shining with unique brilliance in the field of science and technology. For example, platforms such as the Zhongguancun Forum, Pujiang Innovation Forum and World Artificial Intelligence Conference have set up summits or forums for women working in science and technology over the past several years. On the road of technological innovation, the power of women is irreplaceable. I also hope to pursue my dreams and move forward hand in hand with outstanding female peers from all walks of life, dedicating my utmost to building a leading nation in science and technology. Thank you.

Changjiang Daily:

Women's federations serve as bridges linking the Party and government with women. As a woman myself, it is reassuring to have women's federations, which are like a family, by my side. What work have women's federations done to guide and serve women? Thank you.

Huang Xiaowei:

Thank you. Your use of the term "family" makes me feel the warmth of your question. Promoting gender equality and women's well-rounded development requires the joint efforts of the whole of society. As bridges linking the Party and government with women, women's federations play an indispensable role. Here, I will focus on introducing the work in four aspects:

First, we have focused on fostering unity and bolstering morale and carried out actions providing women with political guidance. Women's federations have carried out large-scale educational and publicity activities for women, publishing books such as "Xi Jinping Visits Ordinary People's Homes," and two explanatory readings on compilation of excerpts from discourses by General Secretary Xi Jinping concerning women, children and the work of women's federations, as well as family education, family services, and the cultivation of family virtues, allowing the Party's new theories to reach ordinary people. Under the theme of "Familial and National Sentiments," we have successively launched a series of integrated media products such as "Sharing Chinese New Year Traditions" during the Spring Festival, "Voicing Dreams" on International Women's Day, and "Passing on Family Traditions" on the International Day of Families. Since last year alone, these products have received over 20.8 billion views in total. We have also regularly honored role models such as the March 8th Red-Banner Pacesetters to inspire others and amplify the positive influence of women.

Second, we have focused on building platforms and carried out a series of actions to encourage women to excel in the workplace. We have implemented the "Women's Action for Rural Revitalization," training over 8 million rural women and supporting the development of more than 290,000 women's cooperatives and family farms. We have implemented the "Women's Action for Scientific and Technological Innovation," which Ms. Wang just mentioned, and introduced 16 concrete measures in collaboration with 12 units including the Ministry of Science and Technology and the National Natural Science Foundation. Female scientists have said that these measures are highly valuable and support the development of female scientific talent. We have implemented the "Action for Women's Employment and Entrepreneurship," establishing connections with over 3,000 female entrepreneurship and innovation platforms, helping to create over 2 million jobs annually.

Third, we have focused on care services and carried out actions offering support for women's rights protection. We have strengthened rights protection at the source, participating in the formulation and revision of nearly 300 laws, regulations and policy documents from 2018 to 2023. We have enhanced coordinated efforts by establishing rights protection working mechanisms with over 20 units and departments including the Supreme Court, Supreme Procuratorate and Ministry of Public Security. We have also provided targeted assistance by launching a three-year action on pairing female volunteers with children in need, recruiting over 2.75 million female volunteers to provide "one-on-one" or "many-to-one" care for left-behind children. The China Children and Teenagers' Fund and the China Women's Development Foundation, affiliated with the ACWF, have raised social funds to continuously implement public welfare projects such as the Spring Bud Project, Happy Homes for Children Project, Hello Kids Charity Programs, Health Express for Mothers Project, Postal Parcel for Mothers Project, and Genius Mom Project, providing services to women, children and families in need.

Fourth, we have focused on providing guidance and support in family education, family services, and the cultivation of family virtues. We have fostered family virtues and carried out activities such as the selection of the "Most Beautiful Families" and lectures on family traditions, promoting the new socialist family morality and values. We have improved the family education service system, built more than 400,000 community parent schools offline, and launched family education service platforms online. We have taken innovative steps to provide dating and marriage services, organized public welfare events such as "Happiness Connection" matchmaking activities, and group weddings, cultivated a new culture of marriage and childbearing, and resisted high-priced betrothal gifts. The quality of the domestic service sector has been improved and its scale has been expanded, with more than 1 million practitioners trained annually, helping more than 900,000 women find employment in the domestic service sector, and achieving the goal of "one person in employment, two families benefit."

It can be said that the work of women's federations is extensive and colorful. Thank you.

China Women's News:

I noticed that the white paper introduced women's equal participation in whole-process people's democracy. What unique role do women play in grassroots social governance? Thank you.

Huang Xiaowei:

That is a very good question. I would like to invite Ms. Feng, who is more familiar with the situation, to answer this question.

Feng Ling:

Thank you for your very good question. The nature of our work means that my colleagues and I often visit the grassroots level, and we have come into contact with many excellent female heads of village committees and neighborhood committees. They are leaders in local industrial development, rural civilization and the improvement of living environments. For example, there is a very young 28-year-old girl who was elected as a village committee head in Shilin town, Shancheng district of Hebi city in Henan province in 2021. In just five years, she has transformed an ordinary village into an internet-famous village. By painting vibrant murals across the village, she boosted rural tourism, and through live-streaming, she successfully promoted local agricultural products like millet and pumpkins. As a result, villagers' incomes have increased significantly. Local residents often say, "She might be young, but she's really amazing!"

In the 10 years from 2012 to 2022, female representation nationwide increased by 4 percentage points in village committees, and by 5.5 percentage points in neighborhood committees. It can be said that from revising and improving the laws and regulations such as the Organic Law of the Villagers Committees, the Organic Law of the Urban Residents Committees, and the election procedures for village committee members, to promoting the revision and improvement of village regulations and folk conventions, as well as a series of institutional arrangements from the national to the local level, women's equal participation in the most authentic, broadest and most effective democratic practices has been provided with a solid guarantee.

Ms. Huang just gave a detailed introduction of relevant aspects.

Women leverage their advantages of being "familiar with the local people, area and situations," and actively participate in grassroots governance as "jacks of all trades," playing an irreplaceable role. They are mediators who resolve neighborhood and family disputes; they are livelihood service providers active on the front lines — promoting policies, assisting the elderly and children, and improving the environment; they are civilization promoters, championing positive family values and wholesome local customs to inspire social change; they are participants in governance, working through women's councils to propose suggestions for community development and livelihood improvement. With female wisdom and power, they bring both warm and strong momentum to grassroots governance. Thank you.

Xinhua Finance:

Since 1995, China has formulated and implemented four outlines for women's development. How does China guide and promote women's development through planning? Thank you.

Huang Xiaowei:

Thank you. This is quite a technical question. I would like to invite Ms. Ma to answer this question.

Ma Lijian:

Thank you for your question. Planning and guiding women's development is an important institutional arrangement for implementing the basic national policy of gender equality. In the new era, we have intensified our efforts to promote women's development, focusing on comprehensive and systematic planning, and actively responding to the needs and expectations of women. This work is mainly conducted through three approaches. First, the national development plans clarify the strategic tasks for women's development. For example, the 12th Five-year Plan (2011-2015) included a section for the first time dedicated specifically to advancing women's all-round development, setting requirements for developing human resources with a focus on women and strengthening labor protection for women. The 13th Five-year Plan (2016-2020) further strengthened the protection of women's rights and interests, and for the first time devoted a separate chapter to ensuring women's rights and equal access to education, employment and participation in social affairs, and setting targets for poverty alleviation and reduction among women. The 14th Five-year Plan (2021-2025) outlined further measures to safeguard women's rights and interests, containing a section for the first time specifically dedicated to the strengthening of family development which focuses on improving support policies and services for this goal. Second, special plans in related fields have been made to address women's practical development needs. For example, plans for improving people's well-being — including the Outline of Healthy China 2030, the Outline of the Development Plan for Education (2024-2035). The National Medium- and Long-term Talent Development Plan (2010-2020), have outlined arrangements to strengthen the training and selection of female talent. Third, the outlines of women's development in China have comprehensively laid out phased targets. Since 1995, China has successively formulated and implemented four outlines for women's development, scientifically planning the goals and tasks of women's development in its corresponding phase. For example, the Outline of Women's Development in China (2021-2030) contains 75 primary objectives and 93 strategic measures across eight fields, including health, education, economy, participation in decision-making and administration. The document also outlines the 41 Party and government departments and institutions responsible for implementing these strategic measures. Nationwide, 31 provinces, autonomous regions, municipalities directly under the central government, and the Xinjiang Production and Construction Corps, along with over 300 prefectures and cities and more than 2,000 counties and districts, have formulated plans for local women's development based on their actual conditions.

The outlines for women's development in China cover a wide range of people, span many fields and involve many aspects. China ensures the implementation of goals and tasks by solidifying the main responsibility of the government, conducting dynamic monitoring and evaluation, and focusing on key and difficult issues. Overall, the outlines are currently progressing smoothly, with more than 75% of the quantitative indicators achieving better-than-expected progress. We are now preparing to conduct a mid-stage review, focusing on addressing weaknesses and strengthening weak links, in a bid to provide a more solid foundation and stronger guarantees for women's comprehensive development. Thank you.

Shou Xiaoli:

Let's continue. There are two reporters with their hands raised. We'll take the last two questions, please.

China Arab TV:

I have learned that Chinese women have been very active in the e-commerce industry, with nearly 70% of live streamers being women. How does China promote women's participation in, and enable them to benefit from the digital economy? Thank you.

Huang Xiaowei:

This is a hot topic, I would like to invite Ms. Feng to answer.

Feng Ling:

Thank you very much to this foreign journalist for attending this afternoon's press conference. You just mentioned a trending topic. As you said, in the wave of the digital economy, "her power" is becoming an impressive highlight. Women now account for more than half of our internet entrepreneurs, with female representation reaching one-third in the digital trade and live-streaming industries. In 2024, more than 14,000 women obtained artificial intelligence trainer certificates. China uses a combination of "policy guidance, training empowerment, and supportive measures" to help women improve their digital skills, master digital tools, and broaden their career development pathways. Next, I will explain these three aspects in detail.

The first is policy guidance. The China National Program for Women's Development (2021-2030) sets goals to comprehensively improve women's ability to use information technology to participate in the high-quality development of the economy and society in the new era. The Action Plan for Improving National Digital Literacy and Skills calls for enhancing women's digital awareness and capabilities in safe internet use, scientific internet use, and online entrepreneurship. The Digital Countryside Plan and the Digital Skills Improvement Program for Female Workers, and so on, all aim to improve women's digital literacy through various forms and channels.

Second is training empowerment. Since 2015, the All-China Women's Federation, in conjunction with the Ministry of Commerce and the Ministry of Agriculture and Rural Affairs, has been organizing e-commerce training and live commerce courses. Rural women put down their hoes and picked up their mobile phones, learning how to shoot videos and sell local specialties. The mobile phone has become a new farming tool. Moms can learn digital skills by accessing online public courses, all while taking care of children at home. More and more "women e-commerce experts" are emerging, selling good products from their hometowns to the whole country and even across the world.

Third is entrepreneurial support. The combination of digital technology and the real economy, through inclusive finance, helps women entrepreneurs overcome funding shortages, provides IP support for entrepreneurial women by creating the "Women's E-commerce" brand, sets up e-commerce service stations in rural areas, and creates cloud customer service jobs in cities. From "knowing how to use a mobile phone" to "mastering digital tools" to "embracing AI+," these examples show that women are not only realizing their self-worth in the digital economy, but are also becoming a vital force in driving robust growth. Thank you.

Shou Xiaoli:

The last question, please.

China Daily:

I have noticed that on the eve of the Global Summit of Women, the English editions of two compilations of General Secretary Xi Jinping's discourses on women, children, and family have been published. What is the significance of this for the international community to further understand China's stance on promoting gender equality and the comprehensive development of women, and for advancing the global women's cause? Thank you.

Huang Xiaowei:

I'll take this question. Women, children, and families are universal issues that transcend countries, ethnicities, and cultures, and they have wide social resonance. When communicating with foreign counterparts, we have found that the international community is very interested in the "success code" of the CPC's governance, including concepts, policies, and practical paths in areas such as women's empowerment, gender equality, and family building. Therefore, the publication of the two English compilations first serves to help the international community better understand the profound connotations of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, deeply understand why the CPC succeeds, why Marxism works, and why socialism with Chinese characteristics is effective. It also enhances understanding of our Party's governance philosophy and practices by offering valuable perspectives on women and family. These works will become an important text for the international community to decode the path of women's development under socialism with Chinese characteristics.

Second, globally, women's development is currently facing severe challenges. Nearly 10% of women are trapped in extreme poverty, and more than 600 million women live amid conflicts and wars. Digital technologies and climate change have had a profound impact on women, while violence, discrimination, and economic inequality against women still persist in the world. General Secretary Xi Jinping's successful practice and experience in leading our Party's efforts in women's work fully demonstrate the global vision, broad-mindedness, and international responsibility of the Chinese Communists, contributing Chinese ideas, wisdom, and solutions to addressing new challenges worldwide.

Third, China is both an advocate and an active participant in promoting gender equality and the comprehensive development of women. General Secretary Xi Jinping advocates strengthening international cooperation, leveraging the important coordinating role of the United Nations, enriching the toolbox for gender equality, and improving the global roadmap for women's development. He has also advanced a series of specific actions to support the development of global women's cause, which have been widely recognized and highly praised by various countries. The dissemination of the English version of the compilations will further promote the international community to enhance the diversity and inclusiveness of women's causes, incorporate women's issues into the overall framework of building a community with a shared future for humanity, and strengthen the consensus on cooperation for global women's cause.

In the future, we also look forward to more such achievements going global, providing cultural references and injecting sustained momentum for the advancement of global women's causes. Thank you.

Shou Xiaoli:

Thank you, Ms. Huang, and thanks to all the speakers and friends from the media. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Liu Caiyi, Zhu Bochen, Dong Qingpei, Xu Kailin, Yan Bin, Li Congrong, Huang Shan, Zhou Jing, Zhang Rui, Ma Yujia, Gong Yingchun, Li Huiru, David Ball, Tudor Finneran, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Gang, deputy director of the Publicity Department of the Communist Party of China (CPC) Central Committee

Mr. Erkin Tuniyaz, deputy secretary of the CPC Xinjiang Uygur Autonomous Regional Committee and chairman of Xinjiang Uygur Autonomous Region

Mr. Chen Weijun, a member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and executive vice chairman of Xinjiang Uygur Autonomous Region

Mr. Wang Jianxin, a member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and head of the Publicity Department of the CPC Xinjiang Uygur Autonomous Regional Committee

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Sept. 19, 2025

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Today, the State Council Information Office (SCIO) is holding this press conference to release the white paper "CPC Guidelines for Governing Xinjiang in the New Era: Practice and Achievements." We are very pleased to invite four officials to attend this press conference. They are Mr. Wang Gang, deputy director of the Publicity Department of the Communist Party of China (CPC) Central Committee; Mr. Erkin Tuniyaz, deputy secretary of the CPC Xinjiang Uygur Autonomous Regional Committee and chairman of Xinjiang Uygur Autonomous Region; Mr. Chen Weijun, a member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and executive vice chairman of Xinjiang Uygur Autonomous Region; and Mr. Wang Jianxin, a member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and head of the Publicity Department of the CPC Xinjiang Uygur Autonomous Regional Committee. They will provide relevant information and answer your questions.

Now, I will give the floor to Mr. Wang Gang for his introduction.

Wang Gang:

Ladies and gentlemen, friends from the media, good afternoon. Stability and prosperity in the border areas are vital to national security and strength. As a unified multiethnic nation, China's governance of its border areas is crucial to its national sovereignty and territorial integrity, as well as to building a strong nation and achieving national rejuvenation. Promoting the modernization of the system and capacity for governing border areas is an integral part of Chinese modernization. Xinjiang, located in northwestern China, is the country's largest provincial-level region by land area. It also has longer international border and borders more countries than any other Chinese provincial-level region, making it strategically crucial for border governance.

Since the establishment of the Western Regions Frontier Command by the Han dynasty in 60 B.C., China's central authorities have governed Xinjiang for more than 2,000 years. During the process, the Chinese nation has developed extensive concepts and experience in border governance. Since the founding of the CPC in 1921, generations of Chinese Communists have continued to explore and advance theoretical, practical, and institutional innovations, deepening their grasp and understanding of the dynamics of governance in Xinjiang. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has drawn experience and lessons from past central authorities in governing Xinjiang and continued to apply and develop the Party's effective practices in this regard. This has led to the formation of the CPC's guidelines for governing Xinjiang in the new era and successfully driven progress in Xinjiang-related work.

To mark the 70th anniversary of the Xinjiang Uygur autonomous region, the SCIO has released the white paper "CPC Guidelines for Governing Xinjiang in the New Era: Practice and Achievements." This white paper systematically introduces the historical context, core principles and successful practices of the Party's governance of Xinjiang in the new era, supported by rich historical materials and detailed data. It demonstrates where the Party's guidelines for governing Xinjiang in the new era originated, how historic achievements in Xinjiang's economic and social development in the new era were made, and how the CPC continues to write new chapters in governing Xinjiang in the new era. This will help people better understand the Party's guidelines for governing Xinjiang in the new era.

The white paper contains approximately 21,000 Chinese characters and consists of a preface, main body, and conclusion. The first three chapters of the main body introduce the philosophies and experience of how central authorities have governed Xinjiang throughout history, trace the historical development of the CPC's governance of Xinjiang, and explain the rich content of the Party's guidelines for governing Xinjiang in the new era. Chapters 4 through 10 showcase the great achievements in Xinjiang's reform, development and stability under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core and the guidance of the Party's guidelines for governing Xinjiang in the new era.

Chapter 1 discusses the philosophies and experience of central authorities in governing Xinjiang throughout history. Throughout Chinese history, central authorities have consistently upheld the concept of great unity in their governance, administering the Xinjiang region as an integral part of the country. They maintained social stability, promoted development, and facilitated ethnic interaction and religious coexistence. They also united people of all ethnic groups through the best of traditional Chinese culture. Through thousands of years of exploration and practice, they accumulated rich historical experience.

Chapter 2 highlights the glorious history of the CPC's governance of Xinjiang. During the four periods — namely the period of the New Democratic Revolution, the period of socialist revolution and construction, the period of reform, opening up, and socialist modernization, and the new era of socialism with Chinese characteristics — the CPC has united and led people of all ethnic groups in Xinjiang along a remarkable path. They went from achieving emancipation and becoming their own masters to embarking on the socialist road. They moved from embracing reform and opening up and achieving moderate prosperity in all respects to setting out on the new journey toward Chinese modernization. Together with the rest of the nation, people in Xinjiang have experienced a great transformation from standing up and growing prosperous to becoming strong.

Chapter 3 examines the new governance of Xinjiang under the CPC guidelines for governing the region in the new era. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has coordinated the great rejuvenation of the Chinese nation and the response to the great changes unseen in a century. The CPC Central Committee has emphasized Xinjiang's important role in the work of the Party and the country, pointing out that social stability and lasting peace and security are the overall objectives of Xinjiang-related work. The CPC Central Committee established the guidelines for governing the region in the new era and systematically explained the essence, principles, and requirements of the guidelines.

Chapter 4 discusses the strengthened foundations for social stability and lasting peace and security in Xinjiang. While balancing development and security, Xinjiang has made social stability a top priority. The region has achieved progress in the fight against secession and implemented regular counterterrorism measures to ensure stability in accordance with the law. Targeted countermeasures have been carried out against foreign sanctions and interference, while notable improvements have been made in social governance. Through these efforts, the region has achieved a historic transformation from chaos to stability and ultimately to good governance.

Chapter 5 examines the deepening of unity of the Chinese nation. Xinjiang has taken solid steps to promote a stronger sense of national identity, accelerating the construction of a shared cultural home for the Chinese nation. The region has increased interaction, exchanges and integration among all ethnic groups, achieving greater ethnic unity and steady progress, ensuring that all religions in China conform to the country's realities. All ethnic groups in Xinjiang are contributing to building China into a great country and creating a better life together.

Chapter 6 addresses ongoing progress in promoting democracy and the rule of law. Xinjiang has thoroughly implemented the key concept of whole-process people's democracy, achieving remarkable achievements in this regard. The advantages of the ethnic regional autonomy system have been further demonstrated, with important advancements realized in the rule of law. Protection of human rights has been continuously enhanced, and the region has made new strides in advancing democracy and the rule of law.

Chapter 7 covers high-quality development and high-standard opening up in the region. Xinjiang has fully applied the new development philosophy and as a result has achieved sound, rapid, and sustainable economic development, improved infrastructure, notable clustering effects in its modern industrial system, solid green and low-carbon development, and rapid construction of the core area of the Silk Road Economic Belt. Overall, Xinjiang has made great achievements in advancing Chinese modernization.

Chapter 8 highlights significant achievements in cultural development. Xinjiang has thoroughly practiced Xi Jinping Thought on Culture and effectively protected cultural heritage, while cultural and artistic creation has flourished. The public cultural service system has been improved, and the development of the cultural and tourism industries has accelerated. As a result, the aspirations of people of all ethnic groups for enriched intellectual and cultural lives are better met.

Chapter 9 examines ongoing improvements in people's well-being. Xinjiang adheres to a people-centered approach, achieving a complete victory in poverty alleviation, steadily improving employment, comprehensively developing education, enhancing the health care system, and upgrading the social security net. The fruits of development have benefited people of all ethnic groups in a more equitable way.

Chapter 10 discusses enhanced collaborative efforts for Xinjiang's development. The historic achievements and transformations in all sectors of Xinjiang's development in the new era are fundamentally due to the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core. They are also the result of generous assistance from people across the country and the united efforts of people of all ethnic groups in Xinjiang.

That's all for my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang, for the introduction. Now, I'll give the floor to Mr. Erkin Tuniyaz for his introduction.

Erkin Tuniyaz:

Ladies and gentlemen, friends from the media, good afternoon. This year marks the 70th anniversary of the Xinjiang Uygur autonomous region. At this historic moment, we are pleased to witness together with you the release of the white paper "CPC Guidelines for Governing Xinjiang in the New Era: Practice and Achievements." First, on behalf of the CPC Xinjiang Uygur Autonomous Regional Committee and the Xinjiang regional government, I extend a warm welcome to our friends from the media. Through you, I would like to express heartfelt gratitude to all sectors of society that have long cared for and supported Xinjiang's development.

You have long followed Xinjiang's development closely and are familiar with the profound economic and social changes over the past 70 years. We deeply feel that these remarkable transformations — what could be called "a miracle that changed the future through the people's undaunted spirit" — have all been made possible by the wise leadership of the CPC Central Committee. In particular, since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to Xinjiang. General Secretary Xi Jinping has provided strategic direction and guidance, personally steering the course of its development. The CPC Central Committee convened two meetings on work related to Xinjiang. Xi has traveled multiple times to Xinjiang on inspection tours and delivered a series of important speeches and instructions, which together have established the Party's guidelines for governing Xinjiang in the new era. In providing leadership for work related to Xinjiang, it has upheld fundamental principles while breaking new ground, successfully driving progress despite complex circumstances, challenges, and risks. It is precisely under the guidance of the scientific guidelines that all undertakings in Xinjiang have undergone historic transformations and achieved historic progress, entering a period of the fastest development, greatest transformation, and most tangible benefits for people of all ethnic groups. The six-episode political documentary "Songs of Tianshan," which began airing on CCTV yesterday, vividly showcases the profound changes that have taken place in Xinjiang over the past 70 years.

We have governed Xinjiang in accordance with the law, which has ensured lasting social stability. Xinjiang has actively promoted the rule of law within government and throughout society. We have effectively protected people's legitimate rights and interests, upheld fairness and justice, and improved the business environment. We have employed law-based thinking and approaches and strengthened law-based and persistent efforts in combating terrorism and maintaining stability. As a result, the overall social situation has remained stable, grassroots governance capacity has been significantly enhanced, and public satisfaction with security has continued to rise. Today, Xinjiang is stable, harmonious, and full of vitality. In 2024 alone, Xinjiang received over 300 million tourist visits, with many praising Xinjiang as a safe, peaceful, and welcoming destination.

We have maintained stability through ethnic unity, making the cultivation of a strong sense of community for the Chinese nation the guiding principle of all our work. We comprehensively implement the Party's ethnic policies, uphold and improve the system of regional ethnic autonomy, and protect the legitimate rights and interests of people of all ethnic groups in accordance with the law. We comprehensively promote interaction, communication, and integration among all ethnic groups. Neighbors live side by side, celebrate together, and share in one another's traditions, whether it be eating sanzi (fried dough twists) at one home or mooncakes at another. We comprehensively promote and popularize the national common language and script. Standard spoken and written Chinese is promoted across the region. As a result, the public has developed a stronger awareness of using standard Chinese, which has united hearts and minds for a shared future. We fully implement the Party's basic policy on religious affairs, provide active guidance to religions so that they can adapt to socialist society, ensuring harmony and healthy inheritance. You may have noticed from short video interviews that children in Xinjiang proudly say, "I am Chinese." In August this year, 130 young people from Hotan prefecture attended the national flag-raising ceremony at Tian'anmen Square in Beijing. Many were moved to tears as they declared their love for the motherland. These are vivid examples of ethnic unity in Xinjiang, touching millions online.

We have strengthened cultural identity and bonds, working together to build a spiritual home shared by all Chinese people. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we draw on historical facts, archaeological finds, and cultural legacies of exchanges among ethnic groups in Xinjiang to highlight the deep roots of Chinese culture. Efforts have been made to inspire people of all ethnic groups to identify more closely with the motherland, the Chinese nation, the Chinese culture, the CPC, and socialism with Chinese characteristics. Continuous investment in infrastructure has built a five-tiered public cultural service network covering regions, prefectures, counties, townships and villages. The TV series "To the Wonder" has been loved by audiences at home and abroad, and the eight-minute brilliant performance at the Kashi sub-venue of CCTV's 2024 Spring Festival Gala captivated viewers around the world. Both showcase the vitality and flourishing of cultures of all ethnic groups in Xinjiang.

We have brought greater prosperity to Xinjiang and its people, ensuring that the benefits of development improve people's well-being and earn their support. We base our work on what the nation needs, what Xinjiang can contribute, and what the people expect. We have fully leveraged advantages in resources, geographic location, and other areas to drive rapid and high-quality growth. Since 2012, Xinjiang's GDP has grown at an average annual rate of 7.04%, surpassing the 2 trillion yuan milestone in 2024. This provides strong fiscal support for livelihood improvements. For example, in terms of infrastructure construction, Xinjiang now has 230,000 kilometers of highways, with all prefectures connected by expressways; 9,202 kilometers of railways reaching every prefecture; and 28 civil airports. Nearly 12,000 kilometers of 750-kilovolt power grids have been built, along with gigabit broadband in every county, 5G in every township, and internet access in every village, greatly facilitating people's work and daily life. In terms of ensuring people's livelihoods, total employment reached 13.91 million in 2024, up 11.6% from 2012. For the first time, every part of southern Xinjiang now has an undergraduate institution. The region has over 19,000 medical facilities. Per capita disposable income has reached 43,000 yuan in urban areas and 19,000 yuan in rural areas, making people's lives better day by day.

We have taken a long-term perspective on developing Xinjiang, strengthening the foundations for lasting peace and stability. We have upheld and strengthened the Party's overall leadership and fostered highly competent officials based on the criteria for assessing the caliber of officials in the new era. We regard strengthening grassroots work and laying solid foundations as fundamental measures for ensuring stability and security in Xinjiang. We strengthen grassroots Party organizations to maintain stability. Since 2014, we have continuously sent government officials to live and work in villages alongside local officials and residents. Together, they have developed strategies for economic growth and income generation, achieving tangible results that have been warmly welcomed by the people and reinforced the Party's governance foundation and cohesion in Xinjiang.

The achievements in all of Xinjiang's endeavors in the new era are fundamentally attributed to the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core and to the scientific guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. They are also inseparable from the dedicated support of the central Party and government departments, state-owned enterprises directly administered by the central government, and designated provinces and municipalities. As we mark the 70th anniversary of the establishment of the autonomous region, we will take this as a new starting point. We will unite the people of all ethnic groups more closely around the CPC Central Committee with Comrade Xi Jinping at its core and fully and faithfully implement the Party's guidelines for governing Xinjiang in the new era, adding Xinjiang's chapters to the annals of Chinese modernization with unparalleled confidence.

That concludes my introduction.

Shou Xiaoli:

Thank you, Mr. Erkin Tuniyaz. Now the floor is open to questions. Please identify your news outlet before asking questions.

21st Century Business Herald:

As you mentioned earlier, in recent interview videos by various bloggers, when Xinjiang children are asked about their ethnicity, they all proudly answer "Chinese." What measures has Xinjiang taken to advance the building of a community for the Chinese nation and a common spiritual home shared by all Chinese people? Thank you.

Erkin Tuniyaz:

Thank you for your question. I will answer it. The fact that Xinjiang's children answer so firmly shows their deep sense of identity with, and pride in, being part of the Chinese nation, as well as their profound love for the motherland. Such touching stories can be seen everywhere across Xinjiang. They also fully demonstrate that Xinjiang has been an inseparable part of China since ancient times, and that recognition of the great motherland, the Chinese nation, Chinese culture, the CPC, and socialism with Chinese characteristics is deeply rooted in the hearts of young people of all ethnic groups.

Forging a stronger sense of the Chinese nation as one community is the focus of the CPC's work on ethnic affairs in the new era, and the focus of all work in ethnic minority areas. Let me share our work in the following three aspects:

First, we have always made this the focus of our work, carrying out extensive initiatives to promote ethnic unity and progress. We have launched a variety of activities under themes such as "Strengthening the Sense of the Chinese Nation as One Community, Realizing the Chinese Dream Together" and "Ethnic Unity, One Family." We have established 471 education bases for patriotism, 101 national model units, and 14 national education bases. The flowers of ethnic unity are blooming everywhere across Xinjiang. We all know the story of Kurban Tulum, the elderly villager who rode his donkey all the way to Beijing to visit Chairman Mao, a gesture of heartfelt devotion to the Party that touched people across the country. There is also Wu Dengyun, who came from Yangzhou in Jiangsu to Xinjiang at the age of 22, and for more than 60 years devoted himself selflessly, donating blood more than 30 times, even cutting 13 pieces of skin from his own body to save severely burned children from ethnic minority families. He once said, "The herdsmen in the mountains cannot be without me," and to this day, he continues to care for the health of people in the border counties. And then there is Bayika Kalidibek, whose family has defended the frontier of the Pamir Plateau for three generations over 70 years. He once said, "Without the boundary markers of our country, how could we have our cattle and sheep?" His words expressed the deepest love for the motherland. Stories like these can be found all across Xinjiang. They are vivid examples of forging a stronger sense of the Chinese nation as one community.

Second, we have continuously strengthened cultural identity and bonds in Xinjiang, adhered to the guidance of core socialist values, and vigorously carried out public education on the history of the CPC, the history of the People's Republic of China, the history of reform and opening up, the history of socialist development, and the history of the Chinese nation, ensuring that officials and people of all ethnic groups have an accurate understanding of history and continuously consolidate the intellectual foundation for building the community of the Chinese nation. We have also vigorously carried out archaeological research and the preservation and inheritance of historical and cultural heritage, and showcased the historical stories of interactions among various ethnic groups in Xinjiang, as well as related archaeological artifacts and cultural relics, such as the Han dynasty brocade arm protector embroidered with eight Chinese characters "wu xing chu dong fang li zhong guo "that translate to "five stars from the east bring blessing to China." People of all ethnic groups have gained a deeper recognition and belief in the Chinese nation from the stitches of over 2,000 years ago, feeling immensely proud to be part of the family of the Chinese nation.

Third, we have continuously broadened and deepened interactions, exchanges, and integration among various ethnic groups. Through a series of special initiatives, such as youth exchanges, ethnically integrated communities, and the fusion of culture and tourism, we have fostered a sound environment where all ethnic groups live, study, work, and enjoy life side by side, as they contribute and share benefits together. For example, in the Haldun community of Tacheng city, home to 14 ethnic groups including Han, Uygur, Kazak and Hui, over 30% of households are multi-ethnic families. Ethnic unity has become a golden brand for the area. There are many other such communities across Xinjiang, such as Liuxing sub-district in Yining city, Wangsan sub-district in Aksu city, and Tuanjie community in Korla city. Ethnic unity is the lifeline of the people of all ethnic groups in Xinjiang. Today, sharing the same land, they protect ethnic unity as they would their own eyes, cherish it as they would their own lives, and are united as closely as the seeds of a pomegranate.

That is all from me for now. Thank you.

CCTV:

My question is, in recent years, Xinjiang's economy has continuously shown a new vibrancy and a new outlook. What are the highlights and breakthroughs in Xinjiang's pursuit of high-quality economic development? Thank you.

Erkin Tuniyaz:

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

Chen Weijun:

Thank you for your question. Xinjiang has firmly anchored itself around its five strategic roles in national development landscape, fully and faithfully applied the new development philosophy on all fronts, actively integrated with the new development dynamic, and advanced high-quality development centered on people's well-being. The foundation for Xinjiang's economic and social development has been strengthened, the momentum for growth has been accelerated, and the new development quality and efficiency have been substantially enhanced. Multiple indicators have achieved historic breakthroughs in terms of aggregate. Last year, Xinjiang's GDP exceeded the 2-trillion-yuan mark for the first time. The region's total import and export value reached a new high, hitting 434.16 billion yuan last year. From 2022 to 2024, for three consecutive years, the total import and export value crossed a new 100-billion-yuan milestone each year. In terms of growth rates, multiple indicators rank among the top in the country. Last year, Xinjiang's GDP increased 6.1% year on year, fixed asset investment increased 6.9% year on year, the value added of industrial enterprises above designated size increased 8% year on year, and the revenue in the general public budget increased by 10.5% year on year. In the first half of this year, the region's GDP increased 5.7% year on year, total fixed asset investment increased 13% year on year, the total import and export value increased 28% year on year, and the revenue in the general public budget increased 12% year on year. To sum up our economic development in one sentence, I would say, "Today's Xinjiang is thriving."

Let me now elaborate on three key aspects.

First, infrastructure has been comprehensively strengthened, achieving both integration and interconnection. This has greatly expanded the capacity for high-quality development. With a focus on building the 10 networks of infrastructure and driven by major projects valued in the tens and hundreds of billions of yuan, investment-driven effects have continuously materialized. The Urumqi Airport North Terminal, Barkol Airport, and Qitai Airport have been completed and put into operation, bringing the total number of civil airports in the region to 28. The Hotan-Ruoqiang Railroad has been completed and put into operation, the expressway around the Junggar Basin has been fully completed, and the expressway loop around the Tarim Basin is basically in place. A comprehensive transport system aimed at smooth travel within Xinjiang and swift access beyond is steadily advancing. The third channel that transmits locally generated electricity from Xinjiang to other parts of the country has started operation, and a fourth is under accelerated construction. A main grid structure featuring a five-ring internal supply grid and five external transmission channels has taken initial shape. A large number of infrastructure projects are advancing across the region, further boosting Xinjiang's economic development and optimizing the allocation of resources.

Second, the cluster effect of the modern industrial system is fully demonstrated, presenting a healthy pattern of a solid primary industry, an optimized secondary industry, and an expanding tertiary industry. In 2024, total food output reached 23.3 billion kilograms, hitting a new high. Xinjiang produced a surplus beyond local needs and contributed to national food supplies. More Xinjiang grain is filling the nation's bowl. The total cotton output logged 5.69 million metric tons, and the overall mechanization rate of cotton farming reached 97%. Xinjiang is accelerating efforts to build itself into a strategic base of the nation's energy resources. Six major oil and gas zones and four major petrochemical bases have been established. Last year, the oil and gas production equivalent reached 66.64 million metric tons, and raw coal output reached 540 million metric tons. As of the end of July this year, the total installed capacity of electricity in Xinjiang reached 220 million kilowatts, of which the capacity from new energy sources reached 132 million kilowatts. Policies to boost consumer spending are showing increasingly visible results, further energizing market participants. In the first half of this year, Xinjiang's retail sales of consumer goods totaled 189.36 billion yuan, a year-on-year increase of 7.5%, ranking third highest in the country in terms of growth rate. Through the vigorous implementation of the tourism-driven development strategy, tourism infrastructure has been continuously upgraded, and new business forms have continued to emerge. Xinjiang has become a popular destination for both domestic and international tourists.

Third, with the thorough implementation of strategies for driving Xinjiang's development through innovation, science and technology, and talent, the region has achieved remarkable progress in developing new productive forces. An additional 2 billion yuan in fiscal science and technology funding is allocated annually to drive innovation-led development in the region. A 10-billion-yuan talent development fund has also been established to attract urgently needed high-caliber talent, creating a welcoming environment that encourages them to stay. The Xinjiang Research Institute of Huairou Laboratory has been put into operation, and the National Innovation Center for Wind Power Generation has been officially launched. Exceeding 10,000 meters, the Tarim Oilfield's ultra-deep drilling is now the deepest in Asia. Xinjiang is leading the country in new energy development and power transmission and transformation equipment technology, and its ultra-low wind speed turbine technology has reached internationally advanced levels. Its independently developed cotton pick-and-mod machine has become the country's first, and over 95% of cotton harvesting machinery is now produced domestically. The Xinjiang-to-Chongqing Computing Resource Transfer project has been listed as a pilot for coordinated development of computing and power, and the region's first intelligent computing center has been established and put into use in Karamay.

In short, Xinjiang is in an important stage of high-quality development. High-quality development has helped strengthen unity and rallied the people's support, laying a solid foundation for social stability and lasting peace and security.

That is all from me for this question. Thank you.

ThePaper.cn:

In recent years, Xinjiang's economy has developed rapidly. At the same time, people are paying increasing attention to matters affecting their daily lives, such as their children's schooling and their family's health care, and other issues that touch every household. How has Xinjiang ensured that its rapid economic development delivers tangible benefits to the people? Thank you.

Wang Gang:

I will answer this question. The true measure of the effective implementation of the CPC guidelines for governing Xinjiang in the new era is how they benefit the people. The Marxist view of the people holds that the people are the main actors of history, the creators of material and spiritual wealth in society, and the decisive force behind social transformation. As we all know, the fundamental purpose of the CPC is to serve the people wholeheartedly, and its aspirations and founding mission is to seek happiness for the Chinese people and rejuvenation for the Chinese nation. It is for this reason that the CPC and the people of all ethnic groups in Xinjiang have been working diligently together to bring about tangible changes in people's lives.

Bringing benefit to the people is the fundamental principle of governance. General Secretary Xi Jinping has pointed out that "the people's aspiration for a better life is our goal." Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has put forward a people-centered development philosophy, acted for the people and relied on the people in everything it has done, always putting the people first and striving for their aspirations for a better life, and ensured that the fruits of reform and development offer greater benefits to all the people in a fairer way.

The CPC guidelines for governing Xinjiang in the new era have made it clear that we must uphold the people-centered development philosophy, and advance economic and social development while improving people's well-being so that people of all ethnic groups live and work in peace and contentment. Earlier, Mr. Chen highlighted a number of economic achievements. Whether in terms of convenient transportation, expanding tourism, or increasing import and export, these achievements ultimately translate into tangible growth in income and visible changes in people's lives. Under the CPC guidelines for governing Xinjiang in the new era, Xinjiang has made it a priority to ensure that development improves people's well-being, benefits local communities, and strengthens unity. We are committed to solving the most pressing and immediate concerns of the people of all ethnic groups, ensuring that the fruits of development offer greater benefits to all ethnic groups in a fairer way. Specifically, the living conditions of people of all ethnic groups in Xinjiang have continuously improved, and their quality of life has significantly increased. I would like to illustrate this progress from three aspects.

First, in terms of poverty alleviation. Xinjiang was once one of the areas with the highest incidence and intensity of poverty in all of China. After the 18th CPC National Congress in 2012, the region prioritized the fight against poverty, pooling the best of its resources and adopting targeted measures to end poverty through hard work and perseverance. By the end of 2020, Xinjiang's impoverished rural population had all emerged from poverty. After finally eradicating absolute poverty that had once plagued Xinjiang for millennia, the region was able to achieve a moderately prosperous society in all respects, alongside the rest of the country.

Second, in terms of employment. Xinjiang prioritized expanding employment as the foundation for ensuring people's wellbeing. While vigorously promoting economic growth and increasing job opportunities, the region has continuously enhanced its institutional framework to achieve high-quality full employment and protect the rights and interests of workers. Employment rates in Xinjiang are continuing to improve, alongside ongoing enhancements in the employment structure. Meanwhile, the incomes of both urban and rural residents continue to rise steadily. Xinjiang's commitment to achieving high-quality full employment is steadily enhancing the well-being of people from all ethnic groups across both sides of the Tianshan Mountains. 

Thirdly, in terms of social security. Social security is a basic institutional guarantee for safeguarding and improving people's lives, ensuring social equity and enhances their sense of wellbeing. It plays the role of a safety net for people's livelihoods, serving as an income distribution regulator, and an economic stabilizer. It is a vital component of state governance and an essential safeguard for national stability. Xinjiang has placed the improvement of its multitiered social security system in a prominent position and accelerated the development of a robust safety net to safeguard people's well-being. In Xinjiang, a social security system has been established to guarantee access to education, employment, housing, medical services, and elderly care. It has continuously made life better for people of all ethnic groups living in the region

Next, officials from Xinjiang will share the living conditions of people in the region. I would like to say that journalists should go to Xinjiang. They should go themselves and stand by the side of the local people. Microphones, eyes, ears, and keen observation will enable them to learn of people's living conditions. See how they live there, including their housing situations, diet, their sense of security, and you will gain an understanding. Only with a thorough understanding can they depict in writing a true, three-dimensional, and comprehensive Xinjiang; only with a thorough understanding can they know the real living situations of the local people. So I genuinely recommend you to go to beautiful Xinjiang. Take a look, interact with the happy people there, and then tell the world about the true Xinjiang. Thank you.

Shou Xiaoli:

Mr. Erkin Tuniyaz will share more information.

Erkin Tuniyaz:

Let me add one point. What Mr. Wang Gang just said comes from his personal experiences and feelings, because he has visited Xinjiang numerous times for inspection and research. With a deep affection for Xinjiang, he reached this conclusion through comparing the past and the present. Xinjiang has won the critical battle against poverty, lifting 3,064,900 people out of poverty. The progress and changes in Xinjiang are reflected in daily work, life and travel of local people, especially in southern Xinjiang. I myself am an official born and raised in southern Xinjiang. Comparing the past and the present, southern Xinjiang has undergone tremendous changes, which is an outstanding achievement. Those changes can be felt from the eyes, smiles, and looks of the local people. I once worked in Hotan prefecture. At that time, the streets in Hotan were full of donkey carts. Today, donkey carts belong to museums. Families get around on e-bikes, motorcycles or cars — and some families even have several cars. The sense of happiness can truly be felt among local people. Those who return to Xinjiang after several decades from their first visit, will be amazed at the changes they witness in the region. Therefore, I sincerely welcome journalists, especially those who have never been to Xinjiang before. Come and see more, take a walk and have a look around. Seeing is believing. Only after seeing it in person can they feel the charm of a beautiful Xinjiang. It is particularly worth mentioning that at the end of last year, the Ahe Highway opened to traffic. Renowned for its stunning beauty, the road has soon become as popular as the Duku Expressway. Journalists are welcome to visit both northern and southern Xinjiang, and use your pens and cameras to record and reflect a true, changing, and objective Xinjiang.

Dazhong Daily:

I have noticed that last year, a project was completed to entirely encircle the Taklimakan Desert with a sand-blocking green belt. May I ask what achievements has Xinjiang made in recent years in preventing desertification and sandification? What are the focuses of your future efforts in ecological protection and governance? Thank you.

Erkin Tuniyaz:

Thank you for your questions. I will answer them. As everyone knows, Xinjiang covers an area of 1,664,900 square kilometers, or about one-sixth of China's total territory. It is also one of the provincial-level regions with the largest and most widely distributed area of land most severely affected by desertification and sandification. The Taklimakan Desert is an area frequently hit by intense wind and sand activities and even severe sandstorms. The harsher the conditions, the stronger the people's aspiration for a sound ecological environment. We have made decisive progress in the critical battle against desertification on the fringes of the Taklimakan Desert, completing the last 285 kilometers of the sand-blocking green belt encircling the desert in 2024. With the final stretch completed in Hotan prefecture, we have built a strong ecological barrier for people living on the edge of the desert. During an inspection tour in Hotan, I heard some local people, especially women, say they will no longer have sand-laden wind blowing into their beautiful faces. Finally, people's aspirations for a better life have been fulfilled.

The achievements of ecological governance in Xinjiang in recent years have been witnessed by all. They are mainly reflected in "dual decreases," "dual improvements," "dual growths," and "dual promotions." First, both the desertified and sandy land areas have decreased. According to the sixth national survey of desertification and sandification, the desertified land area in Xinjiang decreased by 1,955.7 square kilometers, and the sandy land area decreased by 242.8 square kilometers, marking the first turning point from an increase to a decrease in sandy area. Second, both sand control and water management have improved to spur agricultural development. The region has coordinated a four-pronged approach involving water saving, water storage, water diversion, and development of new water resources, realizing rational allocation and use of its water resources. In 2024, the irrigation water volume of forest shelterbelts in southern Xinjiang reached 2.76 billion cubic meters, and over 2 billion cubic meters of water from the Tarim River was diverted to replenish the water supply of the populus euphratica forests. As a result, a total of 150,000 mu (10,000 hectares) of degraded forest shelterbelts and 3.2 million mu of populus euphratica forests have been effectively repaired. Third, the areas of both natural oasis and artificial oasis have increased. Over the past three decades, Xinjiang's total oasis area has expanded from 99,000 square kilometers to 155,000 square kilometers, an increase of 56.6%. The forest coverage rate increased from 4.24% in 2012 to 5.07% in 2024. Fourth, we have effectively controlled wind and sand damages around the deserts in southern Xinjiang, promoting both ecological and economic benefits. With equal focus on ecological benefits and social benefits, we planted suitable economic crops in the deserts, such as Cistanche tubulosa and red dates, which have begun to produce economic returns. These efforts have achieved good results in both preventing desertification and increasing people's income.

Ecological and environmental protection has brought tangible benefits to the people of all ethnic groups in Xinjiang. This year marks the 20th anniversary of General Secretary Xi Jinping's proposal of the "two mountains" concept. We will remain committed to the principle that lucid waters and lush mountains are invaluable assets, supporting high-quality development with a high-quality ecological environment. I think our future efforts will focus on three aspects:

First, we will apply systems thinking. We will strengthen air pollution control in cities on the northern slopes of the Tianshan Mountains, including Urumqi, Changji, Shihezi and Wujiaqu, and carry out actions to prevent soil pollution at the source, amid our efforts to enhance environmental protection. Second, we will adopt comprehensive measures. We will consolidate and expand the achievements of desertification control, and increase support for ecological water use, ecological restoration, and photovoltaic project deployment to step up the battle against desertification on the fringes of the Taklimakan Desert. We will advance major projects for biodiversity conservation, leaving a more diverse ecosystem for future generations. Third, we will pursue progress while ensuring stability. We will make technological breakthroughs in the development of renewable energy, clean and efficient coal utilization, green hydrogen, and new energy storage. We will also support the application of advanced technologies in low-carbon petrochemicals, the modern coal chemical industry, and low-carbon iron and steel sector. We are striving to explore a path of energy conservation and carbon reduction that suits local conditions, and make green development the foundation of our high-quality development.

That's all for my answer. Thank you.

China Youth Daily:

We have noticed that in recent years, educational conditions in Xinjiang have been continuously improving, with many beautiful school buildings constructed. What measures has the government taken to promote educational development in recent years, and what results have been achieved? What are your plans going forward? Thank you.

Erkin Tuniyaz:

Thanks for your questions. I'd like to invite Mr. Wang Jianxin to answer them.

Wang Jianxin:

Thank you for your questions. As this journalist just mentioned, when traveling through Xinjiang's cities and countryside, many people have a profound and distinct impression: the finest buildings in Xinjiang are schools, and the most beautiful scenery is found on campuses. Education is vital to both our nation's future and people's welfare. It serves as an important source of fulfillment and happiness for people of all ethnic groups. The Party committee and government of Xinjiang Uygur Autonomous Region are acutely aware of the great responsibility they shoulder, and persist in treating education as fundamental, essential, and long-term work that concerns lasting peace and stability. This has driven breakthrough progress in Xinjiang's education sector. Let me address this question with three points.

First, basic education has become fairer and higher in quality. Since the 18th CPC National Congress, the central government has invested a total of 47.9 billion yuan in fiscal education funds to improve conditions of elementary and secondary schools in Xinjiang. Now, Xinjiang has one kindergarten for every 106 children and one primary school for every 817 primary school students. In 2024, the completion rate of nine-year compulsory education was over 99%, and the gross enrollment rate for senior high school education was 97.74%. Xinjiang's public education services have improved significantly, effectively meeting the new expectations of people of all ethnic groups for fair and high-quality education. This fully demonstrates the CPC Central Committee's special care and concern for ethnic minority areas.

Second, higher education has greatly supported and contributed to development. Talent is key to the high-quality development of Xinjiang. To enhance talent cultivation and better adapt to industrial development, we have optimized the layout, improved quality and expanded the capacity of higher education institutions across the region. The number of higher education institutions in Xinjiang increased from 39 in 2012 to 63 in 2024, with three more added this year to reach 66. By 2024, all five prefectures and autonomous prefectures in southern Xinjiang had universities offering undergraduate programs, marking a historic breakthrough. We have established seven regional industry-education alliances, eight industry-education integration communities, and built stable partnerships with over 6,500 enterprises. Higher education's support and contribution to overall development continue to grow.

Third, vocational education has become more specialized and employment-oriented. We are accelerating the development of a modern vocational education system to continuously meet the demand for technical and skilled professionals required by high-quality development. In 2024, the number of students in vocational schools reached 575,000, up 60.69% compared to 2012. We have deepened the integration of industry and education and strengthened school-enterprise partnerships. Vocational colleges have aligned 75.4% of their programs with the region's key and advantageous modern industries. Many high-caliber technicians and skilled personnel have seamlessly transitioned from academia to industry, fulfilling their potential in various fields.

The success of educational development largely depends on having high-quality, professional teaching staff. In recent years, we have recruited high-level talent to strengthen our teaching staff and intensified training for existing teachers, comprehensively improving their capabilities. Nearly 20,000 outstanding teachers from across the country have come to Xinjiang, including teachers of an educational support program, retired teachers and volunteers participating in the "Go West" program. More and more teachers in Xinjiang hold doctoral and master's degrees. They bring fresh perspectives and vitality, empowering children of all ethnic groups in Xinjiang to achieve their life dreams. We believe that Xinjiang's education has a promising future, and Xinjiang's development also has a promising future. Thank you.

Guangming Daily:

Stability is the foundation of development. How will Xinjiang maintain lasting social stability? Thank you.

Erkin Tuniyaz:

Thanks for your question. I will answer it.

Today's Xinjiang is characterized by lasting social stability, steady and high-quality economic growth, and continuously enhanced public welfare. It is a region of ethnic unity and progress, as well as religious harmony where people enjoy peace and contentment in life and work. People's sense of gain, happiness and security is unprecedented. The 26 million people of all ethnic groups in Xinjiang deeply understand that this situation has not come easily. These are the results we have achieved by fully, accurately, and faithfully implementing the Party's guidelines for governing Xinjiang in the new era, especially by upholding the overall goal of social stability and lasting peace and security in the region in advancing all our work.

First, we have always adhered to governing Xinjiang in accordance with the law, continuously strengthening the legal foundation for long-term stability and security. Xinjiang's stability is built under the rule of law. We have implemented the requirements of comprehensive law-based governance in all undertakings, using the "needle" of the rule of law to accurately guide the "thousand threads" of reform, development and stability, effectively ensuring social stability and harmony. We have highlighted the role of the rule of law in maintaining social stability, and safeguarding ethnic unity and religious harmony, and resolutely advance the enforcement of regular counterterrorism measures to ensure stability in accordance with the law. We have accelerated the building of a law-based government. By the end of 2024, the People's Congress of Xinjiang Uygur Autonomous Region and its Standing Committee had approved 874 local regulations, resolutions and decisions with regulatory functions or on major issues, and special ordinances. Among them, currently in effect are 175 local regulations and 56 resolutions and decisions with regulatory functions or on major issues. Local legislation provides guarantees for people of all ethnic groups to handle affairs in accordance with the law, seek law-based solutions in case of trouble, and solve problems and settle disputes in accordance with the law, thereby improving overall social governance through sound laws and good governance. Since 2022, Xinjiang has taken the lead nationwide in holding dedicated meetings at the autonomous region level to hear reports on advancing the rule of law. For four consecutive years, leading Party and government officials at the county level and above have delivered a report on their performance in fulfilling the primary responsibility for advancing the rule of law every year. We have also carried out regular legal education and publicity activities, delivering legal knowledge to thousands of households to help people of all ethnic groups raise awareness of the rule of law in their daily lives.

Second, we have always adhered to promoting stability through development, continuously strengthening the material foundation for long-term stability and security. We have fully and faithfully applied the new development philosophy, and strive to serve and contribute to the new development pattern in line with Xinjiang's strategic positioning in the country. We have coordinated development and security, openness and security, and accelerated the transformation of our resource endowments, geographic advantages, and industrial foundation into development advantages. The vast areas both north and south of the Tianshan Mountains take on a completely new look every year. Last year, a number of Xinjiang's economic indicators ranked among the fastest-rising nationwide, as Mr. Chen mentioned previously. Xinjiang's stable social environment, favorable business environment, and sound industrial system have attracted a large number of well-known domestic and foreign enterprises to invest and start businesses in the region. Since 2012, Xinjiang has attracted a cumulative total of 6.6 trillion yuan in investment from outside the region. 223 countries and regions around the world have trade relations with Xinjiang. In 2024 alone, 516 delegations with over 10,600 visitors came to Xinjiang for visits, while the region attracted 5.148 million foreign tourists. Xinjiang has transformed from a relatively closed inland region into a gateway for opening up to the west.

Meanwhile, we have always put people's well-being first and rallied their support, underpinning long-term peace and security. The fundamental guarantee for lasting peace and security in Xinjiang lies in rallying the people's support. Over the years, we have allocated more than 70% of public budget expenditures to ensure and improve people's livelihoods. We have eradicated absolute poverty as scheduled. We have advanced comprehensive rural revitalization and consolidated the achievements of poverty elimination. We have vigorously improved urban and rural infrastructure and basic public services and worked to meet the people's basic living needs. In summary, the people of all ethnic groups cherish the current promising situation from the bottom of their hearts, and we have united a strong force to maintain social stability. Those who seek to undermine such a happy life will be firmly rejected by the people of all ethnic groups in Xinjiang. That's all from me. Thank you.

Lianhe Zaobao:

Over the past few years, the U.S. has added more than 140 Chinese companies to the entity list under its Xinjiang-related legislation. What is the impact of this on Xinjiang's economy and employment? How does the government of Xinjiang Uygur Autonomous Region help local enterprises respond to this? Thank you.

Erkin Tuniyaz:

Thank you for your questions. I'd like to invite Mr. Chen to answer them.

Chen Weijun:

Thank you for your questions. We have repeatedly emphasized on many occasions and through various channels that there is absolutely no "forced labor" in any form whatsoever. Workers of all ethnic groups choose to work out of their aspirations and pursuits for a better life. Their employment is voluntary and of their own free will, and their various labor rights and interests are fully protected. In recent years, the U.S. has imposed sanctions on Xinjiang-related enterprises and individuals on the account of so-called "forced labor," interfering in our internal affairs. In essence, it is engaging in political manipulation and economic bullying under the guise of human rights protection. In the short term, U.S. sanctions do have certain adverse impacts on Xinjiang's economic development. For example, some enterprises face obstacles in product exports, suffer damage to their interests, and experience declining production capacity. Employment opportunities for workers of all ethnic groups, including Uygurs, decrease to some extent. Therefore, the unjustified U.S. sanctions are violating the employment rights of workers of all ethnic groups in Xinjiang under the guise of human rights protection. If there is any forcing, it is the U.S. that is doing it by forcing unemployment. In the long run, Xinjiang is a frontier for China's opening up to the west. It is backed by our huge domestic market of 1.4 billion people and faces the vast international markets of Asia, Europe and Africa. In recent years, Xinjiang's distinctive and competitive industries have developed rapidly, opening up has continued to deepen, and it now trades with more than 220 countries and regions. An increasing number of "Made in Xinjiang" products are being sold globally and are deeply favored by consumers in various countries. We have the resolve as embodied in the line "remaining strong and resilient in the face of all winds," and even more the courage expressed in "not fearing the floating clouds blocking our vision." U.S. sanctions can neither hinder Xinjiang's development nor stop the growth and expansion of enterprises and industries.

At present, the country has promulgated relevant laws, regulations, and departmental rules, taking countermeasures against the unjustified sanctions imposed by the U.S. In 2024, the Standing Committee of the People's Congress of Xinjiang Uygur Autonomous Region adopted a resolution opposing U.S. sanctions on Xinjiang and supporting the development of sanctioned enterprises and related industries, fighting back against unilateral sanctions by the U.S. On the one hand, we will actively provide services to sanctioned businesses and support them in employing legal tools to safeguard their legitimate rights and interests in accordance with the law. On the other hand, we will encourage enterprises to increase investment in science and technology, improve product quality, enhance market competitiveness, and explore broader international markets. We will work to help enterprises and industries overcome current difficulties, and emerge stronger and more mature. These efforts will create more job opportunities for workers of all ethnic groups.

Facing the current situation, what do I want to say in the end? I want to say that if you want to know the true face of Xinjiang, the answer lies in the facts. Therefore, Xinjiang is open and welcoming. We are willing to provide the greatest convenience for friends at home and abroad to visit and exchange views, allowing everyone to experience the real Xinjiang and embrace beautiful Xinjiang. That's all from me.

Global Times:

Just now, the speaker mentioned Xinjiang's beauty multiple times, as well as its booming tourism sector. I also noticed a figure in the white paper that Xinjiang received more than 300 million tourists in 2024. Why has Xinjiang become a dream destination for more and more people in recent years? Thank you.

Erkin Tuniyaz:

Thank you for your question. I'd like to invite Mr. Wang Jianxin to answer it.

Wang Jianxin:

Thank you for your question. There is a widely popular song that goes: "Our Xinjiang is a wonderful place, with beautiful scenery on both sides of the Tianshan Mountains." As this journalist mentioned, many people regard beautiful Xinjiang as their dream destination. Xinjiang boasts unique natural landscapes, including Tianchi Lake in the Tianshan Mountains, Kanas Lake, Nalati Grassland, and the poplar trees along the Tarim River — all of which captivate visitors. Xinjiang also possesses profound historical heritage and rich cultural resources, with world-renowned historical and cultural sites including the ruins of Jiaohe, the ruins of Beiting City, the Kizil Grottoes, and the ruins of the Subashi Buddhist Temple. Xinjiang's vast and magnificent scenery, together with its diverse yet harmonious culture, gives it a natural "radiance" of its own. Last year, Xinjiang received a total of 302 million domestic and international tourist visits, up 14% year on year. This year, its popularity has continued, welcoming 230 million tourists from January to August. Xinjiang's appeal, influence and reputation are all on the rise. I'll sum it up in a few keywords.

The first keyword is "boom." By this, I mean the cultural boom, museum boom, intangible cultural heritage (ICH) boom, and cultural activity boom, which have been frequently covered in media reports about Xinjiang tourism over the past two years. During this summer vacation, Xinjiang Museum received an average of 15,000 visitors daily. The newly built Museum of the Western Regions Frontier Command and the Qiuci Museum this year have gained great popularity and quickly become popular destinations for visitors. From July to August this year, the 6th China Xinjiang International Dance Festival attracted over 60,000 audience members to theaters. During the Xinjiang ICH Week, the venue was packed with visitors, and ICH products such as clay pottery, mulberry-bark paper, and Atlas silk proved extremely popular.

The second keyword is "hot," meaning that the tourism industry is a hot sector. From the famous Dushanzi-Kuqa Highway to the newly opened Altay-Hemu Highway this year, as well as the highway around the Bosten Lake, cars on road trips flow continuously. From the picturesque Salimu Lake to the culturally rich Ancient City of Kashi, tourists are everywhere. During July and August this year, the International Grand Bazaar in Urumqi received an average of over 200,000 visitors daily for 30 consecutive days. Xinjiang is equally enchanting in winter. Places like Altay and Ili are covered in thick blankets of snow, where skiers soar through the air and carve on the slopes. Xinjiang tourism sees busy off-seasons and even busier peak seasons.

The third keyword is "integration," which refers to the integration of culture and tourism. The 2024 CCTV Spring Festival Gala's Kashi venue featured spectacular and stunning performances that amazed the world, bringing the city of Kashi into the spotlight. The TV series "To the Wonder" captivated audiences with its beautiful natural scenery and romantic love story, becoming popular both domestically and internationally, turning Altay into a wonderful destination for countless tourists. "Film and TV tourism," "music tourism," and "performance tourism" have become new trends in Xinjiang, enriching the region's tourism with deeper cultural significance and contemporary appeal.

The fourth character is "mi," which means "close" bonds. As we travel across the vast land of Xinjiang, it is common to see people of all ethnic groups living side by side as neighbors. Whether in bustling urban communities or in tranquil rural villages, we can see people of all ethnic groups closely united, much like the seeds of a pomegranate. In the Qiuci Alley of Kuqa city and on the Liuxing street in Yining city, tourists from all over the country gather together. They sing, dance, and rejoice together which is in fact the most beautiful scene in all of Xinjiang.

The fifth character is "run," which means "nourishing" people's hearts. In recent years, we have held events such as the China Xinjiang Folk Art Season, Conference on Reading, establishing demonstration sites that showcase Chinese cultural symbols and the collective images of the Chinese nation. These efforts serve as an exhibition of Chinese culture, enrich the local cultural life, and nourish the hearts of the people. We have also held diverse public cultural and sports activities, such as the village gala, Village Super League, and Village Basketball Association known as "Cun BA." In 2024, over 10,000 village evening gala events were held across the region, both injecting vitality and increasing the popularity of the villages.

Just as Mr. Erkin mentioned: If one were to describe the Altay-Hemu highway in just one word, it would be "beautiful." In two words: "incredibly beautiful." And in three: "truly incredibly beautiful." Honestly, that's exactly how all of Xinjiang could be described. Xinjiang is a great place. Beautiful Xinjiang welcomes you. I sincerely invite all our journalist friends and tourists from around the world to visit beautiful Xinjiang where you will experience its beauty and embark on a journey through stunning landscapes and truly brilliant culture. That's all from me for this question. Thank you.

Phoenix TV:

In recent years, Xinjiang has integrated its regional opening up strategy into the country's overall plan of opening up to the west, and accelerated the development of the core area of the Silk Road Economic Belt. What measures has Xinjiang taken in terms of its opening up strategy? Thank you.

Erkin Tuniyaz:

Thank you for your question. I'd like to invite Mr. Chen to answer it.

Chen Weijun:

Thank you for your question. Xinjiang has remained firmly committed to the opening up strategy. In recent years, the country has advanced its strategy of opening up to the west and developed the core area of the Silk Road Economic Belt. As such, Xinjiang has been giving full play to its advantages in terms of policies, geographical location and development. This transformation has turned the region from a relatively isolated inland area into a frontier of opening up, making it a critical gateway for the country's opening up to the west. Located at the core area of the Eurasian continent, Xinjiang looks out onto the wider world from its vantage point. With multiple ports linking eight neighboring countries, Xinjiang's crucial location on the Silk Road Economic Belt makes it a vital bridge connecting Asia and Europe. This is a reality that defines the region. Today, Xinjiang is blessed with both timing and geographical advantages. People of all ethnic groups are embracing the world with great enthusiasm and looking toward the future with optimism. 

From a policy perspective, the CPC Central Committee and the State Council have delineated Xinjiang's five strategic roles in national development, including a golden channel across the Eurasian continent and a gateway for opening up to the west, as well as a strategic fulcrum of the new development dynamic. The country has approved the establishment of the China (Xinjiang) Pilot Free Trade Zone, setting up 56 national-level key open platforms and industrial development platforms across 14 categories in Xinjiang, providing a series of special preferential policy support. Geographically, Xinjiang stands at the intersection of the New Eurasian Land Bridge, China-Mongolia-Russia Economic Corridor, China-Central Asia-West Asia Economic Corridor, and China-Pakistan Economic Corridor. It shares borders with eight countries, and has 19 open ports currently, serving as an important window for China's opening up to the west and a key international golden passage to Central Asia, South Asia, West Asia, and Europe. From the perspective of industries, in recent years, Xinjiang has focused on the target of meeting national needs and utilizing local resources. It has leveraged its abundant energy, mineral, and agricultural resources to build a modern industrial system that reflects its unique strengths at a faster pace. The region boasts vast potential for development in modern agriculture, commercial logistics, advanced manufacturing, new energy, green computing, and cultural tourism. Xinjiang's potential for cooperation with Central Asian, Middle Eastern, and European countries in industrial and supply chains is immense.

We are actively integrating into the country's overall plan of opening up to the west, leveraging the unique location advantages of the Belt and Road core area to accelerate the construction of "One Port, Two Zones, Five Centers, and One Port Economic Belt," opening our doors wider. We are steadily expanding institutional opening up. A series of preferential policies have been introduced to support the stable development of foreign trade development, and as many as 129 pilot reform tasks of the Pilot Free Trade Zone have been fully launched, with over 80 already implemented and achieving phased results. For example, the clearance time for agricultural and sideline products at border ports with Kazakhstan, Tajikistan, and Kyrgyzstan has been reduced from five days to just one day. We are also committed to enhancing the efficiency of the "golden channel across the Eurasian continent." There are 119 bilateral transport routes and 10 multilateral road freight routes. A total of 16,400 freight trains traveled through Xinjiang on the China-Europe Railway Express in 2024, marking the fifth consecutive year that the number of trains on the line had exceeded 10,000. The increasingly developed transportation network of roads, railways, and flights connects Xinjiang closely with the global market. We continue to expand our circle of trade partners. We have hosted high-quality economic and trade events, establishing trade relations with more than 220 countries and regions worldwide. Last year the 8th China-Eurasia Expo was held in Xinjiang, resulting in signed agreements totaling 610 billion yuan. Through unremitting efforts, Xinjiang's opening up has demonstrated strong momentum. As Mr. Erkin mentioned previously, Xinjiang's total import and export value has increased from 158.96 billion yuan in 2012 to 434.16 billion yuan last year, creating new development opportunities for many countries and regions around the world. From the bustling Alashankou Port and Khorgos Port to the China-Europe Railway Express connecting Central Asia and Europe, a more open, confident, and dynamic Xinjiang is opening its arms to welcome global partners to share development opportunities and write a new chapter of win-win cooperation on the Silk Road Economic Belt.

That's all from me.

Shou Xiaoli:

Due to time constraints, we'll take one last question.

Xinhua News Agency:

The white paper, titled "CPC Guidelines for Governing Xinjiang in the New Era: Practice and Achievements," released today elaborates on the profound implications and great significance of the CPC guidelines for governing Xinjiang in the new era from both historical and national perspectives. What do these guidelines mean for people of all ethnic groups? Thank you.

Wang Gang:

Thank you for the question, I believe your question aptly brings together all the key points that the four of us have just shared. Under the guidance of the CPC's guidelines for governing Xinjiang in the new era, the development of the entire region has been implemented concretely — across every inch of land, in every household, and in the lives of every individual. What does this mean for the people? It means that, in the new era and under the leadership of the CPC Central Committee, more than 26 million people living on Xinjiang's vast land of over1.66 million square kilometers are unified, striving and experiencing a growing sense of fulfillment, happiness, and security. This sense of fulfillment comes not only from increased economic income and material wealth but also from spiritual enrichment. Therefore, I'm confident that Xinjiang's future will be even better than its present, that the lives of its people will be better than they are today, and that everyone in Xinjiang will live with even greater contentment.

Thank you for your synthesizing question — it brings our focus back to what matters most. I believe the CPC Xinjiang Uygur Autonomous Regional Committee and the Xinjiang regional government will continue striving tirelessly toward the future the people desire. Thank you.

Shou Xiaoli:

Thanks to all the speakers and friends from the media. That's all for today's press conference. We have also arranged for several experts involved in the drafting of the white paper to be available after the press conference. Feel free to direct further questions to them. Goodbye.

Translated and edited by Liu Sitong, Cui Can, Zhang Jiaqi, Li Xiao, Lin Liyao, Zhang Tingting, Gong Yingchun, He Shan, Wang Qian, Li Huiru, Wang Wei, Zhang Junmian, Yuan Fang, Zhou Jing, Jay Birbeck and Tudor Bentley Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Fu Linghui, spokesperson and chief economist of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS 

Chairperson:

Ms. Jia Huili, deputy director general of the Press Bureau of the State Council Information Office (SCIO)

Date:

Sept. 15, 2025

Jia Huili:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we are joined by Mr. Fu Linghui, spokesperson and chief economist of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS. Mr. Fu will brief you on China's economic performance in August 2025 and then take your questions.

Now, I would like to give the floor to Mr. Fu for his introduction.

Fu Linghui:

Thank you, Ms. Jia. Good morning. As usual, I will start by briefing you on the main economic indicators for this August and then take your questions.

In August, China's economy remained stable while making further progress.

In August, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments earnestly implemented the decisions and deployments of the Party Central Committee and the State Council, adhered to the general principle of seeking progress while maintaining stability, fully and accurately applied the new development philosophy on all fronts, moved faster to create a new pattern of development, actively strengthened macro policy adjustments, made thorough efforts to develop a unified national market, and focused on strengthening the domestic economic cycle. Production and demand were basically stable; employment and prices were generally stable; new growth drivers were cultivated and expanded; and the national economy maintained a generally stable and progressive development trend.

First, industrial production grew quickly, with equipment manufacturing and high-tech manufacturing showing good growth momentum.

In August, the total value added of industrial enterprises above designated size grew by 5.2% year on year, or up by 0.37% month on month. In terms of sectors, the value added of mining went up by 5.1% year on year, manufacturing up by 5.7% and the production and supply of electricity, thermal power, gas and water up by 2.4%. The value added of equipment manufacturing increased by 8.1% year on year, and that of high-tech manufacturing increased by 9.3%, 2.9 percentage points and 4.1 percentage points faster than that of the total value added by industrial enterprises above designated size. In terms of ownership, the value added of state-holding enterprises increased by 4.7% year on year; that of share-holding enterprises increased by 6.0%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 2.3%; and that of private enterprises increased by 4.6%. In terms of products, the production of 3D printing devices, new energy vehicles and industrial robots grew by 40.4%, 22.7% and 14.4% year on year, respectively. In the first eight months, the total value added of industrial enterprises above designated size went up by 6.2% year on year. In March, the manufacturing purchasing managers' index (PMI) stood at 49.4%, 0.1 percentage points higher than the previous month. The production and operation expectation index was 53.7%, up by 1.1 percentage points. In the first seven months, the total profits made by industrial enterprises above designated size were 4.02 trillion yuan, down by 1.7% year on year.

Second, the service sector grew rapidly and the modern service industry developed well.

In August, the Index of Services Production grew by 5.6% year on year. In terms of sectors, that of information transmission, software and information technology services was up by 12.1%, that of financial industry grew by 9.2% and that of leasing and business services was up by 7.4% year on year, which were 6.5 percentage points, 3.6 percentage points and 1.8 percentage points faster than the Index of Services Production, respectively. In the first eight months, the Index of Services Production increased by 5.9% year on year. In the first seven months, the business revenue of service enterprises above designated size went up by 7.4% year on year. In August, the Business Activity Index for Services was 50.5%, an increase of 0.5 percentage point from the previous month; and the Business Activity Expectations Index for Services was 57.0%, rising by 0.4 percentage point. Specifically, the Business Activity Index for railway transportation, water transportation, air transportation, telecommunication, broadcast, television and satellite transmission services, and capital market services stayed within the high expansion range of 60.0% and above.

Third, market sales registered stable growth and retail services grew quickly.

In August, the total retail sales of consumer goods reached 3.97 trillion yuan, up by 3.4% year on year, or up by 0.17% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3.44 trillion yuan, up by 3.2% year on year; and that in rural areas reached 528.1 billion yuan, up by 4.6%. Grouped by types of consumption, the retail sales of goods were 3.52 trillion yuan, up by 3.6%; and the income of catering was 449.6 billion yuan, up by 2.1%. Sales of basic living goods and some upgraded products showed good growth. Retail sales in units above designated size of daily necessities grew by 7.7%, grain, oil and food products grew by 5.8%, and sports and entertainment goods grew by 16.9%. The consumer goods trade-in policy continued to show results, with retail sales by enterprises above designated size rising 18.6% for furniture, 14.3% for household appliances and audiovisual equipment, 14.2% for cultural and office supplies, and 7.3% for communication equipment. In the first eight months, the total retail sales of consumer goods reached 32.39 trillion yuan, up by 4.6% year on year. Online retail sales were 9.98 trillion yuan, up by 9.6% year on year. Specifically, the online retail sales of physical goods were 8.1 trillion yuan, up by 6.4%, accounting for 25.0% of the total retail sales of consumer goods. In the first eight months, the retail sales of services grew by 5.1% year on year. Among them, the retail sales of cultural, sports and leisure services, tourism consulting and rental services, and transportation services grew rapidly.

Fourth, fixed-asset investment continued to expand, with manufacturing investment growing quickly.

In the first eight months, the investment in fixed assets (excluding rural households) reached 32.61 trillion yuan, up by 0.5% year on year; and the investment in fixed assets was up by 4.2% with the investment in real estate development deducted. Specifically, investment in infrastructure grew by 2.0% year on year, that in manufacturing grew by 5.1%, and that in real estate development declined by 12.9%. The floor space of new commercial buildings sold was 573.04 million square meters, down by 4.7% year on year; and the total sales of new commercial buildings were 5.5 trillion yuan, down by 7.3%. By industry, investment in the primary industry went up by 5.5% year on year, that in the secondary industry was up by 7.6%, and that in the tertiary industry was down by 3.4%. Private investment declined by 2.3% year on year, but increased by 3.0% with investment in real estate development deducted. Among high-tech industries, investment grew 34.1% in information services, 28.0% in aerospace vehicle and equipment manufacturing, and 12.6% in computer and office device manufacturing. In August, fixed-asset investment (excluding rural households) fell 0.20% month on month.

Fifth, goods imports and exports continued to grow, and the trade structure kept improving.

In August, the total value of goods imports and exports reached 3,874.4 billion yuan, up by 3.5% year on year. Specifically, the total value of exports rose 4.8% year on year to 2,303.5 billion yuan, while imports climbed 1.7% to 1,570.9 billion yuan. In the first eight months, the total value of imports and exports of goods reached 29,569.6 billion yuan, up 3.5% year on year. The total value of exports was 17,605.6 billion yuan, up by 6.9% during the period; and the total value of imports was 11,964 billion yuan, down by 1.2%. In the first eight months, the imports and exports of general trade went up by 2.2%, accounting for 63.9% of the total value of imports and exports. China's trade with Belt and Road partner countries grew by 5.4%. Imports and exports by private enterprises went up by 7.4%, accounting for 57.1% of the total value of imports and exports, 2.1 percentage points higher than that of the same period last year. Exports of mechanical and electrical products grew by 9.2%, accounting for 60.2% of the total value of exports.

Sixth, employment remained stable overall, and the surveyed urban unemployment rate experienced a seasonal increase.

In the first eight months, the average surveyed urban unemployment rate was 5.2%. In August, the surveyed urban unemployment rate was 5.3%, 0.1 percentage point higher than that of the previous month. It remained unchanged from a year earlier. The surveyed urban unemployment rate of population with local household registration was 5.4% and that of population with non-local household registration was 5.0%, of which the rate of population with non-local agricultural household registration was 4.7%. In 31 major cities, the surveyed urban unemployment rate was 5.3%, up 0.1 percentage point from the previous month but down 0.1 percentage point compared to the same period last year. Employees of enterprises worked an average of 48.5 hours per week.

Seventh, the core CPI continued to rise, and the decline in producer prices for industrial products narrowed.

In August, the CPI fell by 0.4% year on year and remained flat month on month. By category, prices for food, tobacco and alcohol decreased by 2.5% year on year, clothing increased by 1.8%, housing rose by 0.1%, household goods and services grew by 1.8%, and transportation and communication declined by 2.4%. Prices for education, culture and recreation increased by 1.0%, health care rose by 0.9%, and other goods and services went up by 8.6%. In terms of prices for food, tobacco and alcohol, the price of pork dropped by 16.1%, fresh vegetable fell by 15.2%, fresh fruit decreased by 3.7%, and grain declined by 0.8%. The core CPI excluding the prices of food and energy went up by 0.9% year on year, with the growth rate expanding by 0.1 percentage point compared to the previous month. From January to August, the national CPI decreased by 0.1% year on year.

In August, the national Producer Price Index (PPI) for industrial products fell by 2.9% year on year, with the decline narrowing by 0.7 percentage point from the previous month, while remaining flat month on month; the national Purchaser Price Index for industrial products dropped by 4.0% year on year, with the decline narrowing by 0.5 percentage point, while remaining flat month on month. In the first eight months, the producer prices and the purchasing prices for industrial products dropped by 2.9% and 3.3% year on year, respectively.

Overall, August saw coordinated efforts in macroeconomic policies, which contributed to generally stable national economic performance, steady progress in transformation and upgrading, and new achievements in high-quality development. It should also be noted that there are many unstable and uncertain factors in the external environment, and China's economic operation still faces many risks and challenges. In the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the general principle of pursuing progress while maintaining stability, fully and faithfully apply the new development philosophy on all fronts, move faster to create a new pattern of development, implement macro policies in a well-coordinated and targeted way, and focus on stabilizing employment, businesses, market operations and expectations. We will deepen reform, expand opening up and promote innovation, thus fostering steady and sound economic growth. Thank you.

Jia Huili:

Thank you, Mr. Fu. Now the floor is open for questions. Please identify the media outlet you represent before raising questions.

Dazhong Daily:

Since the beginning of this year, China's national economy has continued to demonstrate strong resilience. How would you evaluate the economic performance in August, and what are the highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your question. In August, under the strong leadership of the CPC Central Committee, all regions and government departments thoroughly implemented the decisions and deployments of the CPC Central Committee and the State Council, accelerated the implementation of more proactive and effective macro policies, advanced the in-depth construction of a unified national market, actively strengthened domestic circulation, and maintained generally stable national economic performance, with solid progress made in high-quality development. The main highlights are as follows.

First, production has maintained steady growth. In terms of agriculture, early rice output increased slightly, while the sown area for autumn grain remained stable with a slight expansion, and the overall growth was normal. Livestock production has remained stable. In the industrial sector, the value added of industrial enterprises above designated size grew by 5.2% year on year in August, continuing its relatively rapid growth. The manufacturing sector demonstrated a favorable development trend, with its value added increasing by 5.7% in August, outpacing the overall growth rate of industrial enterprises above designated size. In terms of services, the services production index rose by 5.6% year on year in August, showing stronger growth momentum than the industrial sector. Boosted by increased travel during the summer holiday season, the growth rate of the production index for accommodation and catering services accelerated compared to the previous month.

Second, domestic demand has continued to expand. In terms of consumption, the total retail sales of consumer goods increased by 3.4% year on year in August, and the retail sales of goods related to China's consumer goods trade-in programs continued to grow rapidly. The potential for service consumption is also being continuously unleashed, with sectors like tourism and leisure, live performances and sporting events, and information and communication services being relatively vibrant. In the first eight months, service retail sales grew 5.1% compared with the same period last year, outpacing the growth rate of goods retail sales. In terms of investment, fixed-asset investment from January to August increased by 0.5% compared to the same period last year. Notably, investment in manufacturing — which increased by 5.1% — grew significantly faster than the overall investment, providing solid support for the upgrading and development of the manufacturing sector.

Third, foreign trade and foreign exchange reserves have increased. Against a challenging backdrop of weak global economic growth and significant uncertainties in international trade, China's goods trade has continued to underscore its resilience. In August, the total value of goods imports and exports grew by 3.5% year on year, marking the third consecutive month of expansion for both exports and imports. Exports of mechanical and electrical products grew rapidly, with their export value rising by 9.2% year on year from January to August. By the end of August, China's foreign exchange reserves had increased by $29.9 billion compared to the previous month, demonstrating an overall trend of stability with positive growth.

Second, the economic performance has remained generally stable. Judging from the changes in indicators, the main production and demand indicators showed steady growth through the first eight months. From January to August, growth rates for value added of industrial enterprises above the designated size, the service industry production index, total retail sales of consumer goods, and goods imports and exports remained essentially unchanged from the rates seen between January and July, indicating that the stability of economic growth has been maintained. In terms of employment, the national surveyed urban unemployment rate in August was 5.3%. Although it slightly increased compared to the previous month, due to the graduation season, it remained the same as the same period last year. The surveyed unemployment rate of the primary working-age population aged 30-59 remained flat both month to month and year on year, further demonstrating that the stability of employment has not changed. From the perspective of prices, the consumer price index (CPI) in August decreased by 0.4% year on year, mainly dragged down by declining food prices. The core CPI excluding food and energy increased by 0.9% year on year, with the growth rate expanding for four consecutive months, indicating that the stability of prices has not changed.

Fifth, transformation and upgrading has continued, with innovation playing a pronounced driving role. Artificial intelligence is booming; digital empowerment is accelerating; and related industries are growing rapidly. In August, the added value of intelligent onboard equipment manufacturing as well as the manufacturing of electronic components and equipment increased by 17.7% and 13.1% respectively. The added value of integrated circuit manufacturing increased by 23.5%. The process of industrial upgrading has maintained positive momentum, with rapid growth in equipment manufacturing and high-tech manufacturing industries. In August, the value added of the equipment manufacturing industry and high-tech manufacturing industry above the designated size increased by 8.1% and 9.3% year on year, respectively, growing significantly faster than the overall industrial enterprises above the designated size. The modern service industry showed robust growth momentum, with the index of service production (ISP) for information transmission, software and IT services, and for leasing and business services growing by 12.1% and 7.4% year on year. The green transformation has been steadily advanced, with the output of new energy vehicles increasing by 22.7% and lithium-ion power batteries for vehicles increasing by 44.2% in August. The results of trade diversification continue to show, with China's imports and exports from the "Belt and Road" partner countries increasing by 5.4% from January to August, outpacing the overall growth rate of foreign trade.

Overall, the economy performed steadily in August with high-quality development making solid progress. However, it should also be noted the external environment is complex and severe, with many destabilizing factors and uncertainties. In the domestic market, there is strong supply but weak demand, and some enterprises are facing difficulties in their operations. In the next stage, we will fully implement the decisions and arrangements of the CPC Central Committee and the State Council, strengthen the regulation role of macroeconomic policies, effectively unleash the potential of domestic demand and deepen reform and opening-up. This will strengthen domestic circulation, promote the domestic and international dual circulation, fostering stable and sustainable economic development. Thank you.

CCTV:

We have observed that since the beginning of this year, China has vigorously boosted consumption, improved investment efficiency, expanded domestic demand in all aspects, and advanced the construction of a unified national market. Based on the data from August, what results have been achieved in implementing the recent series of policies? How would you evaluate them? Thank you.

Fu Linghui:

Thank you for your questions. There has been considerable public attention regarding the effectiveness of the policies implemented since the beginning of this year. Since the beginning of this year, facing a complex and severe development environment, all regions and departments have conscientiously implemented the decisions and arrangements of the CPC Central Committee. This has accelerated the implementation of more proactive and effective macro policies, maintained policy continuity and stability, enhanced flexibility and predictability, and promoted the steady progress of the economy. Based on the data from August, the positive impact of various policies on expanding domestic demand, optimizing supply, facilitating circulation, and boosting momentum continue to be observed, as reflected in the following key areas. 

First, the effect of expanding domestic demand has continued to be evident. The third tranche of funds for the old-for-new consumer goods trade-in policy have been allocated, continuing to enhance policy effectiveness, stimulate consumer demand, and drive rapid sales growth of related products. In August, among the retail sales of goods by units above the designated size, the retail sales of household appliances and audiovisual equipment, furniture, and cultural and office supplies continued to maintain double-digit growth. The driving effect of large-scale equipment renewals on investment continued to manifest. In the first eight months, investment in equipment and tool purchases rose by 14.4% year on year, contributing 2.1 percentage points to the growth of fixed asset investment. 

Second, the production-driven effects have been continuously unleashed. The effectiveness of policies to expand domestic demand has been transmitted to the production end, stimulating relatively rapid growth in the production of related industries. In August, driven by the equipment renewal policy, industries like boiler and prime mover equipment manufacturing and electric motor manufacturing saw their value added increase by 11.9% and 14.8% year on year, respectively. The growth rate for equipment renewal products, including numerical control devices for machine tools and specialized packaging equipment, exceeded 10%. Driven by the consumer goods trade-in policy, August saw the production of automotive lithium-ion batteries, charging piles, and electric bicycles maintain double-digit growth.

Third, the stimulus effect of economic circulation has begun to emerge. With the expansion of market demand and the growth of production, the circulation of production factors has improved. In August, the prosperity index of the logistics industry continued to see growth. Railway freight volume accelerated and the express delivery volume grew rapidly. Disorderly competition among enterprises has been regulated in accordance with laws and regulations. Capacity governance in key industries has been advanced, contributing to improvements in supply-demand dynamics in some industries. This in turn brings positive change to producer prices. In August, the PPI changed from a 0.2% month-to-month decline last month to flat growth. Within this category, prices in coal mining and washing, as well as ferrous metal smelting and rolling processing, increased by 2.8% and 1.9% month on month, respectively.

Fourth, the momentum of economic growth has been enhanced. Policies aimed at promoting innovation have continued to take effect, driving the development of new quality productive forces and enhancing new momentum for development. In August, the value-added growth rate of integrated circuit manufacturing and electronic specialty material manufacturing industries above the designated size both exceeded 20%. The "AI Plus" initiative has been deeply implemented; intelligent terminal products are increasingly favored by consumers; and the digital economy has demonstrated positive development momentum. In August, the output of new products such as industrial robots, robot reducers, and civilian drones maintained rapid growth. At the same time, under the influence of policies related to stabilizing and activating the capital market, stock trading in the Shanghai and Shenzhen markets was relatively active in August, which was also conducive to improving market expectations and enhancing development vitality. Thank you.

Cover News:

In August, the CPI fell year on year, with food price changes having a significant impact. Meanwhile, the year-on-year increase in core CPI has expanded for the fourth consecutive month. What are the underlying factors behind this? What is your outlook for future trends? Thank you.

Fu Linghui:

Thank you for your question. In August, the CPI was flat month on month and shifted from flat to a year-on-year decrease. This was influenced by factors such as ample market supply and a higher base in the same period last year.

On a month-on-month basis, the CPI was unchanged in August, compared to a 0.4% increase last month. Within this, food prices rose 0.5%, while non-food prices fell 0.1%. Among food items, the prices of fresh vegetables and eggs increased by 8.5% and 1.5%, respectively, collectively pushing the CPI up by 0.17 percentage point. Meanwhile, prices of fresh fruit, aquatic products, and pork declined by 2.8%, 0.9% and 0.5% month on month, respectively, which together pulled the CPI down by 0.09 percentage point. In the non-food category, transportation and communication prices dropped 0.3%, while prices for clothing, household goods and services, and education, culture, and entertainment all decreased by 0.1%.

From a year-on-year perspective, the CPI in August fell by 0.4%, compared to flat growth in the previous month. The shift in consumer prices from flat to a decrease year on year was primarily due to a higher comparison base from the same period last year. In August 2024, food prices rose sharply due to extreme heat and localized heavy rainfall, driving up overall consumer price growth and creating a higher base that contributed to this year's CPI decline. In August this year, food prices fell 4.3% year on year, a drop that widened by 2.7 percentage points from July, pulling down the CPI by 0.51 percentage point. Pork, fresh vegetables and eggs all fell by more than 10% year on year.

While the overall CPI declined in August due to the larger drop in food prices, core CPI, which excludes food and energy, rose 0.9% year on year. This marked an acceleration of 0.1 percentage point from the previous month and the fourth consecutive month of accelerating growth. This suggests positive price trends are continuing to build. The uptick in core CPI was primarily driven by rising prices for industrial consumer goods and services.

First, price increases for industrial consumer goods accelerated. Since the beginning of this year, consumer goods trade-in policies have been strengthened and expanded, while efforts to regulate disorderly competition among enterprises have progressed steadily, improving supply-demand dynamics in industrial consumer goods and driving up prices. The price of industrial consumer goods excluding energy rose by 1.5% year on year in August, up 0.3 percentage point from July. Among these, the prices of household appliances and recreational durable goods rose 4.6% and 2.4% year on year, respectively, jointly contributing about 0.09 percentage point to CPI growth. Meanwhile, the year-on-year decline in gasoline vehicle prices continued to narrow. 

Second, service prices saw a steady rise. With targeted measures to boost consumption in full swing, summer travel and cultural tourism demand heated up, while demand for high-quality social services expanded, driving the rebound in service prices. In August, service prices rose 0.6% year on year, 0.1 percentage point faster than in July, contributing about 0.23 percentage point to CPI growth. Since the beginning of the year, service prices have generally maintained a stable upward trend. Specifically, prices for medical and educational services rose by 1.6% and 1.2% year on year, respectively, while vehicle rental and tourism prices increased by 0.8% and 0.7%, respectively, with all categories showing widening growth rates.

However, it is also important to note that market supply-demand imbalances remain prominent, and consumer prices are still operating at low levels. Looking ahead, we must continue to expand domestic demand, effectively implement targeted campaigns to stimulate consumption, sustain growth in effective investment, further advance construction of a unified national market, and strengthen capacity management in key industries to promote a reasonable recovery in prices. Thank you.

Xinhua Finance:

Based on the employment data released for August, how would you assess the current performance of China's job market? What are the next steps to promote high-quality employment? Thank you.

Fu Linghui:

Thank you for your questions. Employment is fundamental to people's livelihoods, and it relates to every household. The CPC Central Committee and the State Council attach great importance to stabilizing employment. Local governments and departments have fully implemented policies to promote high-quality and sufficient employment, supported enterprises in hiring, improved public employment services, and expanded job opportunities through multiple channels, with a special focus on key groups. Based on the August data, the employment situation remained generally stable, as evidenced by the following aspects:

First, the surveyed urban unemployment rate remained steady. According to unemployment rate patterns, China's national urban surveyed unemployment rate typically rises seasonally each year during the July-August graduation period. As graduates gradually secure employment, the unemployment rate gradually declines. In August, the national surveyed urban unemployment rate was 5.3%, up 0.1 percentage point from July, mainly due to fresh graduates entering the labor market. Compared with last year, however, the rate was unchanged, showing overall stability.

Second, the unemployment rate among the core working-age population remained stable. The urban surveyed unemployment rate for the 30-59 age group was 3.9% in August, unchanged from both the previous month and the same period last year, indicating stable employment among the core working-age population.

Third, the unemployment rate among migrant workers declined. The unemployment rate for rural migrant workers in cities was 4.7% in August, down 0.2 percentage point from July and lower than the national average.

In summary, despite a complex external environment and persistent domestic employment pressures in both scale and structure, proactive efforts by all parties and continuously strengthened employment stabilization policies have maintained general stability in the job market. This has been no easy feat. Looking forward, while we recognize favorable conditions such as stable economic performance, the development of new quality productive forces, and the effectiveness of employment stabilization policies, we must also acknowledge that certain industries and key groups continue to face employment pressure. The structural contradiction where job seekers struggle to find work while employers face hiring difficulties remains pronounced. We must further stabilize both employment and the economy, strengthen vocational skills training, and improve labor supply-demand matching. By promoting high-quality, full employment, we can further improve people's livelihoods, foster steady and healthy economic development, and maintain overall social stability. Thank you.

CNBC:

I have two questions. Following up on the CPI question, the just-released core CPI data for August was the highest since February 2024. Does this signal a turning point for prices? My second question: Some major cities have recently adjusted housing purchase restrictions. Has there been any overall reaction in the real estate market? What is the outlook for the real estate industry? Thank you.

Fu Linghui:

Thank you for your questions. You asked two questions. One is about the change in core CPI, and the other is about the situation in the real estate market.

Regarding the price turning point you're concerned about, generally speaking, determining turning points in economic indicators is quite difficult. Often, we can only confirm a turning point in economic indicators a considerable time after the actual turning point has occurred. This is mainly because the changes in economic indicators are influenced by multiple factors, and short-term fluctuations can mask underlying trends. Regarding the assessment of CPI trends, it should be said that careful analysis is still required. Since the beginning of this year, China's CPI has generally operated at a low level. However, under a series of policies aimed at expanding domestic demand and promoting reasonable price recovery, positive changes have steadily accumulated. As noted earlier, core CPI increased 0.9% year on year in August, expanding 0.1 percentage point from July and marking the fourth consecutive month of growth.

Recent developments show numerous favorable factors supporting a reasonable CPI recovery. First, consumer demand is expected to expand. As the weather turns cooler, food consumption demand will increase somewhat. With the Mid-Autumn Festival and National Day holidays approaching, holiday consumption is also expected to expand, which will help drive the CPI higher. Second, seasonal factors are providing support. As seasons change and new clothing collections arrive, prices may rise modestly from current levels. After the new semester starts, education service demand expands, which will also drive related price changes. Third, "anti-involution" governance efforts are showing results. Recently, efforts to regulate disorderly competition among enterprises in accordance with laws and regulations have driven positive changes in producer prices in related industries. The transmission of production prices to consumer prices also supports CPI recovery. Of course, it should also be noted that domestic market supply remains generally abundant, international energy market price fluctuations may also occur, and the imported inflationary impact on domestic prices carries uncertainty. All of these factors will influence price movements. Therefore, CPI trends require continued monitoring.

Regarding the real estate market situation you asked about, since the beginning of this year, various regions and departments have implemented city-specific policies to stabilize the real estate market. They have continued to roll out policies to halt the market decline and maintain stability, while promoting demand for both basic and move-up housing purchases. Based on the situation over the first eight months, the real estate market experienced fluctuations due to changes in domestic and international conditions. However, the year-on-year decline in commercial housing sales and residential prices continued to narrow, and the effectiveness of inventory reduction remained evident. The real estate market is still moving towards stopping the decline and stabilizing. Recently, some cities have further adjusted and optimized their housing policies, with effects beginning to show as market transactions have improved. In the first eight months, the real estate market showed several key characteristics:

First, the decline in real estate market sales narrowed. Since the beginning of this year, various regions and departments have actively encouraged basic and move-up home purchases, driving the narrowing of commercial housing sales declines. From January to August, the nationwide sales area of newly built commercial housing fell 4.7% year on year, with the decline narrowing by 13.3 percentage points compared to the same period last year and by 8.2 percentage points compared to the whole of last year. Commercial housing sales revenue declined 7.3%, with the decline narrowing by 16.3 percentage points compared to the same period last year and by 9.8 percentage points compared to the whole of last year. Some first-tier and second-tier cities maintained growth in both sales area and sales revenue for newly built commercial housing.

Second, the year-on-year decline in newly built commercial residential property prices narrowed. In August, among 70 large and medium-sized cities, most cities saw the year-on-year decline in commercial residential property sales prices narrow. The year-on-year declines in new commercial residential sales prices narrowed by 0.2 percentage points in first-tier cities, 0.4 percentage points in second-tier cities, and 0.5 percentage points in third-tier cities compared to the previous month. Second-tier and third-tier cities both saw their year-on-year declines in second-hand residential sales prices narrow by 0.4 percentage points.

Third, real estate companies' funding and inventory showed improvement. Efforts to reduce real estate inventory advanced steadily, with companies' funding and inventory conditions showing some improvement. Looking at funding sources, from January to August, funds available to real estate development companies fell 8% year on year, with the decline narrowing by 12.2 percentage points compared to the same period last year and by 9 percentage points compared to the whole of last year. Looking at commercial housing inventory, unsold commercial housing area at the end of August decreased by 3.17 million square meters compared to the end of July, marking six consecutive months of decline.

However, we must also recognize that real estate sales are still declining. The recovery of the real estate market is a process and efforts are still needed to promote its stabilization. Going forward, we must earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council and carry out the spirit of the Central Urban Work Conference. We will conduct high-quality urban renewal, actively build a new model of real estate development, and increase the supply of high-quality housing. We will better meet people's essential needs for a home to live in and their different demands for better housing and promote the stable and healthy development of the real estate market. Thank you.

21st Century Business Herald:

August's PPI ended eight consecutive months of downward month-on-month decline, with the year-on-year drop narrowing. What are the main reasons behind the positive changes in the PPI? How do you expect the PPI to trend going forward? Thank you.

Fu Linghui:

Thank you for your questions. Driven by factors such as the effective implementation of macroeconomic policies, the in-depth advancement of the construction of a unified national market, the gradual optimization of corporate competition order, and the rapid growth of new momentum, the PPI in August turned from a decline to flat month on month, and the year-on-year decline narrowed. In August, the PPI fell 2.9% year on year, with the decline narrowing by 0.7 percentage points from the previous month. Month on month, it remained flat, compared to a 0.2% decline in the previous month.

The year-on-year decline in August's PPI narrowed significantly, primarily due to improved market competition practices. Relevant authorities have recently been actively promoting industry self-regulation, advocating against disorderly corporate competition, and advancing capacity management in key sectors, with effects gradually becoming apparent. In August, the ex-factory prices for coal processing, smelting and pressing of ferrous metals, and coal mining and washing saw their month-on-month declines narrow by 3.2 to 10.3 percentage points. Year-on-year price declines for photovoltaic equipment and components manufacturing and new energy vehicle manufacturing narrowed by 2.8 and 0.6 percentage points, respectively. The combined downward pressure from these five industries on the year-on-year PPI was approximately 0.5 percentage point less than the previous month.

Second, demand from emerging industries has strengthened as a driving force. As China's economic structural adjustment advances steadily, with industries moving toward high-end and intelligent development, market demand has expanded steadily, driving up prices in related sectors. Integrated circuit packaging and testing manufacturing prices rose 1.1% year on year in August, while ship and related equipment manufacturing prices gained 0.9%. The rapid development of artificial intelligence applications has driven strong market demand for smart products, boosting prices. Wearable smart device manufacturing prices rose 1.6% year on year in August.

Third, consumption-boosting policies are beginning to show results. Since the beginning of this year, special initiatives to boost consumption have been implemented in depth, with trade-in programs for consumer goods intensified and expanded in scope. These initiatives have unleashed consumption potential and driven demand for upgraded goods, leading to year-on-year ex-factory price growth in some sectors. Manufacturing prices of arts and crafts and ceremonial supplies rose 13% year on year in August. Sports ball manufacturing prices gained 4.7%. Special sports equipment and accessories manufacturing prices climbed 0.4%. Meanwhile, nutritional food manufacturing prices advanced 0.9%, while health food manufacturing prices increased 0.3%.

However, it should also be noted that the current PPI remains in negative territory, which is not conducive to improving industrial enterprise operations. Going forward, we must further expand domestic demand, advance the development of a unified national market, regulate corporate competition practices, and promote a reasonable recovery in industrial goods prices. Thank you.

The Paper.cn:

How do you assess the performance of August's consumption data, and where do we see the impact of pro-consumption policies in the data? Thank you.

Fu Linghui:

Thank you for your questions. Changes in consumption are indeed a topic of broad concern. Since the beginning of this year, regions and departments at all levels have resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council, deeply implementing the special initiatives to boost consumption. National subsidy funds have provided continuous support, interest subsidy policies have been precisely targeted, and a comprehensive package of policy measures has maintained momentum, promoting consumption growth and driving expansion and a structural optimization of market sales. From January to August, total retail sales of consumer goods increased 4.6% year on year, service retail sales grew 5.1%, and market sales showed a trend of continued expansion. Looking at the overall market sales situation in August, there are several key characteristics:

First, commodity consumption continued to grow. Under the combined influence of consumer goods trade-in programs and household consumption upgrades, commodity consumption continued to expand. In August, commodity retail sales gained 3.6% year on year, demonstrating steady growth momentum. Sales of goods supported by consumer goods trade-in programs showed strong growth momentum. In August, retail sales by enterprises above the designated size also showed year-on-year growth exceeding 10% across household appliances and audiovisual equipment, cultural and office supplies, and furniture. This significantly outpaced total goods retail sales growth, providing strong momentum for overall commodity sales. Meanwhile, rising living standards boosted demand for quality consumption, generating relatively strong sales growth for upgraded goods. In August, the retail sales of sports and recreational articles, gold, silver, and jewelry by enterprises above the designated size went up 16.9% and 16.8% year on year, respectively, further boosting overall commodity sales.

Second, service consumption growth remained stable. Concentrated summer demand for travel, tourism and leisure sports fueled continued strong growth in service consumption. From January to August, service retail sales increased 5.1% year on year, outpacing commodity retail sales growth. Integrated consumption formats like "Tourism+" and "Sports+" gained momentum. Supply of high-quality services continued to increase. Growth in travel, cultural and sports service retail sales registered a robust growth. From January to August, retail sales maintained double-digit growth across tourism consulting and rental services, transportation services, and cultural and sports services. August saw the national film box office rise 48.6% and movie attendance jump 66.9% year on year.

Third, new types of consumption showed positive development. Deep integration between digital technology and emerging consumption scenarios drove favorable development in online and new types of consumption. From January to August, national online retail sales increased by 9.6% year on year, outpacing overall consumer goods retail sales growth. Among them, online retail sales of physical goods increased 6.4%, accelerating 0.1 percentage point from the January-July period. Emerging sectors such as digital consumption, green consumption, and health consumption have become increasingly mature, continuously emerging as new growth drivers for consumption. Retail sales of new energy vehicles maintained rapid growth. In the first eight months, retail sales of new energy passenger vehicles increased by more than 20% year on year.

Overall, under the combined influence of various consumption promotion policies, commodity consumption in August remained basically stable, and service consumption showed strong resilience. New types of consumption continued to grow, market space kept expanding, and the consumption expansion trend remained unchanged. However, it should also be noted that household consumption capacity and confidence still need to be improved, and the internal driving forces of consumption still need to be strengthened. Moving forward, we will further implement special initiatives to boost consumption, actively stabilize employment to promote income growth, improve the consumption environment, increase high-quality supply, better release consumption potential, and promote the stable development of the consumption market. Thank you.

Reuters:

Based on the July and August data, how do you assess the economic development trends for the third quarter? Also, can we see any specific effects of recent anti-involution policies on prices? Thank you.

Fu Linghui:

Thank you for your questions. Everyone is paying close attention to the economic performance in the third quarter. Judging from the July and August data, a series of macroeconomic policies have continued to take effect. The industrial and services sectors have maintained rapid growth, consumption and import-export volumes continue to expand, employment and prices remain broadly stable, new quality productive forces are being nurtured and strengthened, and the national economy has sustained steady progress with positive momentum.

Looking at production, industry and services have maintained relatively rapid growth. Industrial output above designated size grew 5.7% and 5.2% year on year in July and August, respectively, continuing to maintain relatively rapid growth above 5%. The services production index grew 5.8% and 5.6% in July and August, respectively, with growth rates faster than industrial growth.

Looking at demand, market sales and import-export volumes continue to expand. Total retail sales of consumer goods grew 3.7% and 3.4% year on year in July and August, respectively. From January to August, retail sales of services grew 5.1%, continuing to outpace goods retail growth. Goods exports rose 8% and 4.8% year on year in July and August, respectively, with volumes continuing to expand.

Looking at employment, the unemployment rate has remained generally stable. In July and August, the nationwide surveyed urban unemployment rate experienced a seasonal increase but remained flat compared to the same period last year. The surveyed urban unemployment rate for the 30-59 age group was 3.9% in both months, remaining stable.

Looking at prices, core CPI has continued to rebound. Core CPI rose 0.8% and 0.9% year on year in July and August, respectively, with the increase expanding for four consecutive months.

Looking at development momentum, new quality productive forces have continued to be nurtured and strengthened. Value-added output of high-tech manufacturing industries above designated size grew 9.3% year on year in both July and August, significantly faster than the overall growth of industrial output above designated size. Industrial robot and new energy vehicle production have continued to maintain double-digit growth. Digital and green transformations continue to deepen, with digital product manufacturing and online retail sales of physical goods maintaining strong growth momentum. Meanwhile, high-level opening up has continued to advance, with trade diversification showing clear results and imports and exports with Belt and Road partner countries maintaining relatively rapid growth. Efforts to ensure people's livelihoods have remained strong and effective, with continuous increases in investment directed toward public welfare areas. Looking at the overall picture, with macroeconomic policies continuing to take effect, the economy is expected to maintain steady and progressive development in the third quarter.

Regarding the impact of anti-involution policies on prices that you mentioned. Recently, relevant departments have actively promoted industry self-discipline and advanced capacity management in key sectors, with effects gradually becoming apparent. In August, year-on-year declines in ex-factory prices narrowed for coal, steel, new energy vehicles, photovoltaic products and other industries. This reduced their downward pull on the PPI compared to the previous month, helping steer price movements back toward a reasonable range. Thank you.

Yicai:

Private investment growth continued to decline from January to August, reflecting persistently insufficient momentum. What is your assessment of this situation? What are the prospects for private investment development moving forward? Thank you.

Fu Linghui:

Thank you for your questions. Private investment is a crucial component of China's fixed-asset investment and a key force in driving investment quality and efficiency improvements. Since the beginning of this year, private investment has slowed somewhat due to changes in the international environment, real estate market adjustments and other factors. However, excluding real estate development investment, private project investment has remained basically stable. As a series of policy measures to support private economic development and stimulate private investment are implemented, the business environment for private enterprises continues to improve. This will help expand development space for private investment and support private investment growth. Based on the situation in the first eight months, private investment performance has exhibited the following main characteristics:

First, project investment maintained steady growth. Real estate development investment accounts for a relatively large share of private investment. Dragged down by the decline in real estate development investment, private fixed-asset investment fell 2.3% year on year from January to August. During this period, private real estate development investment declined 16.7%, pulling down overall private investment growth by 4.5 percentage points. Excluding real estate development investment, private project investment grew 3% year on year from January to August, faster than overall investment growth.

Second, manufacturing investment showed strong growth momentum. The policy effects of large-scale equipment renewal continued to unfold, while economic transformation and upgrading advanced steadily, driving sustained growth in private manufacturing investment and increasing its share of total investment. From January to August, private manufacturing investment increased 4.2% year on year, 1.2 percentage points faster than private project investment overall. It accounted for 40.6% of total private investment, up 1.7 and 2.6 percentage points from the first half of the year and the same period last year, respectively. Among the 31 major manufacturing industry categories, 16 sectors achieved double-digit growth in private investment. Among them, private investment in automobile manufacturing grew 22.6% and private investment in railway, shipbuilding, aerospace, and other transport equipment manufacturing increased 16.2%.

Third, innovation investment intensity increased. Private enterprises are China's main force driving innovation and development. Facing changes in market conditions, private enterprises have continued to increase innovation investment and actively expanded into emerging and future industries. Private investment in related sectors has grown relatively rapidly, which has also strongly promoted industrial development toward new and positive directions. From January to August, private investment in information services within high-tech industries grew 26.7% year on year, while private investment in professional technical services rose 17.6%.

Fourth, the investment development space is gradually expanding. With the gradual implementation of the reform measures adopted at the third plenary session of the 20th CPC Central Committee, long-term mechanisms for private enterprise participation in major national projects are being accelerated and improved. Private capital involvement in key national infrastructure projects — including railways, energy and water conservancy — is being steadily advanced, expanding growth opportunities for private investment. From January to August, private infrastructure investment increased 7.5% year on year, 5.5 percentage points faster than total infrastructure investment. Private investment in the production and supply of electricity, heat, gas and water rose 23.5%. Meanwhile, private investment in consumer service sectors is also increasing. From January to August, private investment in accommodation and catering, and culture, sports and entertainment grew 17% and 7%, respectively.

Despite profound and complex changes in the domestic and international environment, operational difficulties facing some private enterprises and certain pressures on private investment, looking ahead, China's economy has broad development potential. China's economic landscape offers ample space for growth, and strong foundations exist to support the expansion of private investment.

First, high-quality development is being steadily promoted and there is room for growth in private investment. Private enterprises are the backbone of innovative development and an important driving force for high-quality development. As China steadily promotes high-quality development, private enterprises are vigorously promoting the development of green industries such as new energy vehicles, photovoltaics, and lithium batteries. They are actively laying out future industries such as artificial intelligence and embodied robots, which will further expand the development space for private investment. Second, private enterprises are resilient and dynamic, providing a foundation for the growth of private investment. Many private enterprises are bold and competitive, with a keen sense of market demand and technological trends, responding quickly with high flexibility and adaptability. Since the beginning of this year, in the face of external shocks, many private enterprises have risen to the challenge. Adapted flexibility has actively expanded markets, and stabilized production, demonstrating strong development resilience and innovative vitality. Third, strong policy support ensures the growth of private investment. The "Private Economy Promotion Law" has been officially implemented, sending a strong signal to promote the development of the private economy. All regions and departments are actively improving the system and mechanism for government investment to drive social investment. The market access environment for private investment has been continuously optimized, and financial and resource support has been steadily strengthened, all of which are conducive to encouraging private investment and promoting its stable development. Thank you.

Jia Huili:

Due to time constraints, we will take one last question.

National Business Daily:

Based on the performance of the national economy over the past eight months this year, what are the predictions and prospects of the NBS for the future economic outlook? Thank you.

Fu Linghui:

Thank you for your question. Since the beginning of this year, despite the complex and changing external environment, deepening external adverse impacts, weak domestic effective demand, and long-term structural contradictions becoming prominent, China's economy has withstood the pressure and maintained steady growth. This is largely thanks to sustained macro policy efforts and the accelerated development of a unified national market. The main indicators were generally stable in the first eight months, and high-quality development was steadily promoted. Looking ahead, the supporting conditions and basic trend of China's long-term economic improvement have not changed. The macro policies have taken effect and reform and opening- up have continued to deepen.Domestic and international dual circulation have gradually become smooth, these will support the stable operation and positive development of the economy.

First, consumption potential continues to be unleashed. Under the influence of various measures in the special action to boost consumption, market sales have steadily rebounded. The sales of trade-in products have increased, new types of consumption such as livestreaming and instant retail have grown rapidly. Service consumption has continued to expand, holiday travel has increased, and cultural and tourism consumption has increased. The markets for sports events, cinema and performances have been relatively active. In the next stage, with the in-depth implementation of the special action to boost consumption, the trade-in policy for consumer goods will continue to be optimized. Livelihood policies such as childcare subsidies and free preschool education will be gradually implemented, which will help enhance residents' consumption capacity and willingness. The Mid-Autumn Festival and National Day holidays are coming, which will further boost holiday spending, with consumption being expected to continue expanding and upgrading.

Second, new drivers of growth have been cultivated and strengthened. The driving force of innovation continues to strengthen. Technological innovation and industrial innovation continue to integrate. New quality productive forces are being cultivated and strengthened, with new economic growth drivers continuing to emerge. The development of high-end industries is improving. From January to August, the value added of high-tech manufacturing industries above designated size increased by 9.5% year on year, of which the value added of integrated circuit manufacturing and aerospace-related equipment manufacturing increased by 22.3% and 14.6% respectively. Intelligent and green transformation is steadily advancing. From January to August, the output of industrial robots and civilian drones increased by 29.9% and 53.7% respectively. New energy vehicles production increased by 31.4%. Green consumption and new types of consumption are growing rapidly. New business models such as online retail and instant retail are gaining momentum, driving the rapid growth of online retail sales of physical goods. In the next stage, the development potential of emerging fields will continue to be revealed, which will help expand the space for economic development and accelerate the transformation from traditional to new growth drivers.

Third, market vitality has gradually increased. As the construction of a unified national market deepens, efforts to strengthen the domestic circulation have been intensified, the integration of domestic and foreign trade has been accelerated, and unilateral and autonomous opening up has been carried out in an orderly manner, thereby market vitality is being enhanced. From January to July, the profits of manufacturing enterprises above designated size increased by 4.8% year on year; from January to August, the import and export of private enterprises increased by 7.4%. In the August PMI, the business activity expectation index for manufacturing enterprises and services enterprises was 53.7% and 57% respectively, both higher than the previous month. In the next stage, we will further deepen reform and opening up, regulate the disorderly competition of enterprises in accordance with laws and regulations, promote capacity governance in key industries, continuously optimize the business environment and promote high-quality development of pilot free trade zones. We will also continue to stimulate the vitality of business entities and enhance development momentum.

Fourth, macro policies have continued to show their effects. Since the beginning of this year, all regions and departments have been fully implementing the decisions and plans of the CPC Central Committee and the State Council and taken effective measures to implement macro policies, promoting stable economic growth. The implementation of major national strategies and building up of security capacity in key areas have achieved remarkable results, and the policies for large-scale equipment renewal and trade-in of consumer goods policies have been implemented in depth. From January to August, the retail sales of household appliances and audiovisual equipment, and communication equipment, supported by consumer goods trade-in policies, increased by 28.4% and 21.1% year on year respectively. In the next stage, with the implementation of a more proactive fiscal policy and a moderately loose monetary policy, the effectiveness of these policies will be further unleashed, providing strong support for the stable performance of the economy.

In conclusion, although the external environment is complex and challenging, and domestic economic development faces many obstacles, China's economy has a stable foundation, numerous advantages, strong resilience, and great potential. There are many favorable conditions supporting high-quality development, especially with the accelerated cultivation of new growth drivers and the continuous enhancement of market vitality. Coupled with the sustained efforts of macroeconomic policies, the economy is expected to continue its overall stable and steady development trend. Thank you.

Jia Huili:

Today's briefing is hereby concluded. Thank you, Mr. Fu, and thank you to friends from the media. Goodbye, everyone.

Translated and edited by Mi Xingang, Ma Yujia, Xu Kailin, Cui Can, Li Congrong, Xiang Bin, Zhang Rui, Yan Xiaoqing, Wang Qian, Huang Shan, Li Huiru, Huang Shan, Fan Junmei, David Ball, Jay Birbeck and Tudor Bentley Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Major General Wu Zeke, deputy director of the Leading Group Office of Military Parade and deputy director general of the Operations Bureau of the Joint Staff Department of the Central Military Commission

Major General Xu Guizhong, executive deputy director of the Commanding Office of Military Parade of the PLA Central Theater Command and deputy director general of the Political Work Department of the PLA Central Theater Command

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Aug. 20, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This year marks the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. A grand military parade will be held on Sept. 3. Today we are very pleased to have with us Major General Wu Zeke, deputy director of the Leading Group Office of Military Parade and deputy director general of the Operations Bureau of the Joint Staff Department of the Central Military Commission, and Major General Xu Guizhong, executive deputy director of the Commanding Office of Military Parade of the PLA Central Theater Command and deputy director general of the Political Work Department of the PLA Central Theater Command. They will brief you on preparations for the military parade and take your questions.

Now, I will give the floor to Mr. Wu for his briefing.

Wu Zeke:

Friends from the media, good morning. First of all, I would like to express my sincere thanks and best wishes to all the friends attending this morning's press conference and to all those who care about and support the work of the military parade.

On Sept. 3, we will hold a grand military parade to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. This military parade will be the first of its kind since the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core united and led the entire Party, the military and the Chinese people of all ethnic groups to embark on the country's new journey to pursue Chinese modernization on all fronts. It also marks a brand-new demonstration of the people's armed forces as they strive to achieve the military's centenary goal. It is an important manifestation of how the great spirit of the War of Resistance and the great national spirit are being carried forward in the new era. It is a solemn declaration of upholding and advocating the correct historical view of World War II, resolutely safeguarding the post-war international order, and firmly defending international fairness and justice.

The military parade will proceed in two parts, a military review and a march-past of troops, and will last around 70 minutes. During the military review, troops participating in the parade will line up in formations along Chang'an Avenue in Beijing, and will be reviewed by Xi Jinping, general secretary of the CPC Central Committee, Chinese president and chairman of the Central Military Commission. During the march-past, airborne flag-guarding echelons, foot formations, battle flag formations, armament columns, and aerial echelons will pass through or fly over Tian'anmen Square.

This parade will involve a total of 45 formations and echelons. The airborne flag-guarding echelons will be composed of multiple formations of various types of helicopters. Through such methods as guarding flags, forming characters and hanging slogans, they will demonstrate that the country and the armed forces have grown stronger under the leadership of the CPC, and the great spirit of the War of Resistance lives on with enduring legacy eight decades later, proclaiming to the world the great truth that justice will prevail, peace will prevail, and the people will prevail. The foot formations will mix "old" and "new." The "old" refers to troops with origins in the War of Resistance, with the personnel mainly drawn from forces descended from the Eighth Route Army, the New Fourth Army, the Northeast United Resistance Army, and the South China Guerrillas, as well as militias from provinces where resistance base areas were located. The "new" refers to the new layout of the structure of the military capabilities, including the armed forces system combining three components. They will showcase their well-disciplined military bearing, confident strides and high morale during the review, collectively reflecting their new look under efforts to enhance political loyalty in the military in the new era and the exemplary image of the people's armed forces. The battle flag formations represent the feats and honor earned through bloodshed during the War of Resistance. Each battle flag was forged with the blood and lives of the war heroes, and carries a chapter of the moving and heroic history of the war. From flags of countless heroes and numerous honors, we distinguish between different periods, regions and military units, selecting those with typical significance. Officers and soldiers from respective units will hold the flags during the review, symbolizing the continuation of the great spirit of the War of Resistance and the fearless and courageous advance of the people's armed forces. The armament columns will be organized in a manner reflecting their functions in real combat and include groups for land combat, maritime combat, air defense and anti-missile operations, information warfare, unmanned combat, logistics and equipment support, and strategic strike. Many of the armaments represent the latest developments in the evolution of modern warfare, and some are major national weapons that fully demonstrate our military's strong capability to win modern wars. The aerial echelons, organized in a modular and systematic manner, will consist of advanced early warning and command aircraft, fighter jets, bombers, transport aircraft and more. They basically cover the main active-duty aircraft types of the Chinese military. Many are high-profile systems that have attracted wide public attention, and some will make their public debut, fully showcasing the leapfrog development of our military's air combat capabilities.

In addition, core musicians from the PLA Honor Guard and other units have been brought together to form a joint military band. In front of the Monument to the People's Heroes, they will perform familiar classics from the War of Resistance Against Japanese Aggression, recalling those arduous and extraordinary years and commemorating the heroes and martyrs who sacrificed their lives for national independence and freedom. Some newly composed pieces that reflect the spirit of the times and the image of a strong military will also be performed in Tian'anmen Square for the first time.

At the last press conference, I outlined several features of the parade's overall design. Today, I will further elaborate on the significance of the parade in four main aspects. The first is to affirm the firm belief of the military in following the Party's command. This parade is a concentrated expression of the military's new achievements in political development and its fresh gains in political training. The troops have maintained firm political awareness, high revolutionary enthusiasm and a vigorous spirit, and are always ready to be reviewed by the CPC Central Committee and President Xi. They remain unswervingly loyal to, supportive of, protective of and defensive of the core, making themselves a heroic armed force that the Party and the people can fully trust. Second, to highlight the distinct theme of commemorating the victory in the War of Resistance Against Japanese Aggression. War is a mirror, helping people appreciate the preciousness of peace. We commemorate the victory as a way to uphold peace. In this parade, heroic units from the War of Resistance Against Japanese Aggression have been assembled, raising the banners of honor and merit from that war and showcasing the achievements of China's national defense and military modernization in the new era. It will demonstrate to the world that the Chinese people remember history, cherish peace and resolutely uphold the victories of the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. Third, to showcase the new structure of the armed forces. President Xi decided to reorganize and establish the Aerospace Force, Cyberspace Force, Information Support Force, and Joint Logistics Support Force, marking the creation of a new structure of military services and branches: "four services + four branches." On the eve of Aug. 1 this year, President Xi signed an order to unveil the flag patterns of the four branches, marking the establishment of the People's Army flag system for the new era, with the Aug. 1 flag as the centerpiece and the branch flags as supplements. In this parade, with the flags of the Party, nation and military at the forefront, the parade formations will display the flags of the military and armed police force together, marking the first public presentation of the military's new structure. Fourth, it demonstrates the military's confidence and capability to win battles. The weapons and equipment in this parade are all selected from domestically produced, currently active main battle systems with many new types making their debut. Both ground and air equipment are arranged in integrated and combined formations. Some strategic assets from land, sea and air bases, as well as high-precision strike, unmanned and counter-unmanned systems, are being presented to the public for the first time, fully demonstrating the military's strong capability to safeguard national sovereignty, security and development interests, and contribute to world peace.

Currently, preparations for the parade are virtually complete. All participating officers and service personnel will receive the review of the Party and the people in high spirits, joining in marking Sept. 3 as a day of victory remembered by people around the world.

That is all for my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Wu, for the introduction. Now I'll give the floor to Mr. Xu.

Xu Guizhong:

Good afternoon. It's my pleasure to present the details of the military parade to you all.

The CPC Central Committee and the Central Military Commission decided to organize a parade to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. The troops are highly enthusiastic about participating. Every officer and soldier takes pride in participating and being reviewed, and looks forward to being reviewed by the CPC Central Committee, President Xi, and the entire nation at this solemn moment, showcasing the heroic and majestic appearance of the people's armed forces as a force of peace, justice, strength and victory.

Mr. Wu just briefed us on the parade design details. I believe all of you can appreciate that this parade has many innovative elements and new features. The participating officers and soldiers represent various military units, and the proportion of new weapons and equipment making their debut is very high. Moreover, most of the armored columns and aerial echelons will be composed of mixed units. All of these factors have placed very high demands on this year's parade training and logistics support.

The parade involves more than 10,000 people, hundreds of aircraft, and hundreds of pieces of ground equipment. Achieving perfect uniformity, precise coordination, and split-second timing is comparable to organizing a military campaign. The overall planning, preparation and organizational command of the parade has required scientific training and thorough support. In conducting parade training, we have mainly focused on several key points: The first has been maintaining real combat standards. We have insisted on taking the parade preparation as an opportunity to strengthen the combat readiness of officers and soldiers and test the command, coordination and support capabilities of the troops. We have relied on the wartime command system to direct parade operations and have used combat simulation methods to develop and refine operational plans. Troops immediately began high-intensity training in accordance with parade standards upon receiving their gear, particularly for new equipment. The preparation process itself has functioned as a capability-building process. Second, we have emphasized scientific training methods. This parade has had a shorter preparation time than previous ones, and the participating troops have numerous other duties. Therefore, within our limited timeframe, we have focused on using systems such as BeiDou positioning, intelligent evaluation and simulation technologies to support basic training, formation drills, air-ground coordination exercises, complex scenario training, emergency response training, and training evaluation and assessment. The results have been excellent, saving us training time while improving training quality and efficiency. Third, we have focused on inspiring training motivation. We have emphasized leveraging the spirit of the resistance against Japanese aggression to reinforce historical duty, using the honor of being reviewed to fuel political enthusiasm, and drawing on the traditions of heroic and exemplary units to encourage high morale. Particularly after the announcement of the parade on June 24, relevant provinces have expressed care and support for the participating officers and soldiers, with extensive visits and consolation activities widely conducted around Army Day (Aug. 1). This has greatly encouraged the participating personnel and enhanced their sense of honor and responsibility. At the bustling training grounds, we have seen the glorious traditions and fine conduct of our Party and army being passed down and carried forward by this new generation of young officers and soldiers.

Since the 18th CPC National Congress, the logistics and equipment support capabilities of the military have achieved leapfrog development, effectively supporting the army's combat readiness. This progress is clear for all to see. This parade preparation, whether it's the training and daily life of participating personnel or the maintenance and upkeep of equipment, requires strong logistical support. Throughout our work, we have mainly concentrated on several key points: First, we have emphasized leveraging the advantages of joint logistics. Following joint operations and joint support requirements, we have fully relied on the regional joint logistics support system to provide precise and effective support for the parade. Second, we have focused on strengthening the management and support of new equipment. The equipment participating in this parade involves hundreds of different models and types. In accordance with wartime requirements, we assembled lean support forces, with joint equipment support extending to the tactical level, providing full-process, efficient support for high-intensity, fast-paced training operations. Third, we have focused on cost-effectiveness and operating practically and efficiently. Following the principle of diligence and cost-effective military development, we have made full use of existing training grounds and logistical conditions for preparations, achieving maximum resource efficiency and substantially cutting related expenses.

Judging from the recent rehearsal, the troops are basically ready for the parade. We believe that under the strong leadership of the CPC Central Committee, the Central Military Commission and President Xi, all participating troops will meet the highest standards in carrying out their parade responsibilities and provide a satisfactory performance for the Party and the people. Let us look forward to that day. That's all for my introduction. Thank you!

Shou Xiaoli:

The floor is now open to questions. Please raise your hands if you have questions and identify your news organization before raising questions. 

ThePaper.cn:

The military parade commemorating the 70th anniversary of the victory in the War of Resistance Against Japanese Aggression had many unforgettable spectacular moments. What innovations and highlights will this parade feature in emphasizing the theme and significance of commemorating victory in the War of Resistance Against Japanese Aggression? Thank you.

Wu Zeke:

I will answer this question. At the last press conference, I told everyone that the theme of this parade was to commemorate the great victory of the Chinese People's War of Resistance Against Japanese Aggression and to promote the great spirit of the War of Resistance. We have incorporated several innovations into the parade's design to emphasize this theme and better embody the spirit of remembering history, honoring martyrs, cherishing peace and creating the future. First, in presenting elements of the War of Resistance, we have carefully integrated key historical markers, such as the 1945 victory, the 80th anniversary and the 14-year wartime experience, into the parade scale, equipment quantities and formation arrangements. This approach enriches the parade's deeper meaning and underscores its commemorative character. Second, to enhance the commemorative atmosphere, we have incorporated wartime music into the pre-ceremony segment, with the joint military band and choir of the PLA performing classic wartime songs such as "On the Songhua River," "On the Taihang Mountains," and "Defend the Yellow River." These revolutionary songs enable us to feel the patriotic spirit in the years of fire and blood during the Chinese People's War of Resistance Against Japanese Aggression. The vigorous melodies recreated the scenes of women bidding farewell to their sons and husbands as they headed to battlefield and of the guerrilla fighters engaging the enemies in mountains and plains. Third, to convey historical significance, various methods will be used to showcase the great truth that "justice will prevail, peace will prevail, and the people will prevail." This truth has withstood the test of blood and fire and remains unbreakable, demonstrating that the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War were great triumphs of justice over evil, light over darkness, and progress over reaction. Thank you.

Rudaw Media Network:

You just said that this military parade will showcase numerous pieces of equipment for the first time. What specific new military hardware will be unveiled? What advances and breakthroughs can we expect in their digitization and smart technology levels?

Wu Zeke:

I'll answer the questions. In this parade, all the weapons and equipment to be displayed will be domestically produced active-duty main battle equipment. The parade will represent the collective debut of our military's next-generation weapons and equipment following the 2019 National Day parade. The main characteristics are as follows: First, fourth-generation equipment will form the core of the parade, including new tanks, carrier-based aircraft and fighter jets. They will be grouped into combat modules to demonstrate our military's integrated operational capabilities. We will also display a series of unmanned intelligent and counter-unmanned equipment across the land, sea and air domains, as well as new forces like cyber and electronic combat forces., New drones, directed energy weapons, and electronic jamming systems, among others, will showcase our military's new quality combat capabilities in new domains. Another key feature is the extensive showcase of advanced equipment such as hypersonic missiles, air defense and anti-missile systems, and strategic missiles to illustrate our military's strong strategic deterrent capability. It can be said that the weapons and equipment to be reviewed possess very high levels of digital integration and intelligence, fully reflecting our military's strong capability to adapt to technological development, respond to evolving forms of warfare and win future wars. As for the specific models of weapons and equipment to be reviewed, we ask for your patience as the details will be revealed soon. Thank you.

Zhinews of Shenzhen Satellite TV:

This will be a large parade. How is the training for such a large-scale military parade organized? What measures have been taken to resolve problems and difficulties in training and improve efficiency? Thank you.

Xu Guizhong:

Thank you for your questions. Given the large amount of equipment and participants in this parade, achieving high standards and exceptional performance in a short period depends on several factors. First, the overall quality of the participating troops is very strong, which is a crucial prerequisite for ensuring effective training. Second, parade training itself is an important component of the troops' regular training, meaning all participating units come with existing training experience. We bring the troops together primarily to conduct standardized and detailed training, further refining their combat discipline. Through this short-term intensive training, we can achieve the desired results. Third, we have well-established parade-training experience and scientific, standardized training methods, including a complete set of training standards, procedures and protocols. We also emphasize the use of digital and intelligent technology, which has strongly supported improvements in training quality and effectiveness. Fourth, we continuously inspire enthusiasm for training by extensively carrying out mass training and competition activities. We conduct lively promotion activities to enrich the cultural lives of officers and soldiers. Everyone competes not only in training and skills but also in energy and attitude, creating a strong atmosphere of learning, striving, helping and surpassing one another. As a result, everyone's enthusiasm for training is very high. Thank you.

CCTV:

We've noticed the introduction of the new military structure and branch layout of our armed forces, which will be showcased in this parade. We also saw that the new branch flags were recently released ahead of Army Day on Aug. 1. Could you provide more details on the parade's specific arrangement and design? Thank you.

Wu Zeke:

Thank you for your question. I will answer it. Reform strengthens the military, and a stronger military underpins a stronger country. Since the 18th CPC National Congress, the CPC Central Committee, the Central Military Commission and President Xi have led the most extensive and profound national defense and military reforms since the founding of the People's Republic of China, with unprecedented determination and resolve. The people's armed forces have developed a new command structure, organizational framework, strategic configuration and renewed image, taking firm strides toward building a strong military with Chinese characteristics. Last year, the military restructured to establish the Information Support Force, and made corresponding adjustments to the leadership and management structure of the Aerospace Force and Cyberspace Force. The reform has enabled the PLA to develop a new organizational layout under the leadership and command of the Central Military Commission. It consists of four services: the Army, Navy, Air Force and Rocket Force; along with four branches: the Aerospace Force, Cyberspace Force, Information Support Force, and Joint Logistics Support Force. This new layout represents a significant milestone in advancing the modern military force system with Chinese characteristics.

Therefore, the parade highlights three aspects in its arrangement and design. The first is a more comprehensive military force structure. Just now, I mentioned that the military recently unveiled new branch flags ahead of Army Day. The military flag is the combat banner and emblem of the PLA. The establishment of a complete military flag system symbolizes a more complete military force system. During the parade, the participating formations will carry their respective branch flags along with the People's Armed Police Force flag, representing a comprehensive display of our military's capabilities. Second, there is a greater presence of new domains and new quality combat capabilities. In addition to the four strategic branches represented in the foot formations which embody these new-domain and new-quality combat capabilities, we have also specifically arranged new combat units within the equipment formations, including unmanned systems, underwater forces and cyber-electronic force. Third, the armed forces system is more comprehensive. The parade will feature not only active PLA forces but also the armed police, reserves and militia, forming a three-tiered force structure with Chinese military characteristics. Thank you.

Phoenix TV:

My question is, what is the significance of parade training for real combat? How does it contribute to and enhance the troops' combat capabilities? Thank you.

Xu Guizhong:

Thank you for your questions. Training under rigorous and combat-realistic conditions has always been our military training tradition. In this parade, we are focusing on combat-realistic standards and joint operational requirements, using parade training to improve our joint combat capabilities.

First, strengthening joint awareness. This parade has a distinct characteristic of joint operations. This is an organic integration of different services and branches based on combat formations, representing the comprehensive application of multi-domain forces in modern warfare. We are organizing exchanges and mutual learning among different services and branches, strengthening the concept of joint operations and fostering a joint culture through synchronized training and integrated rehearsals.

Second, enhancing joint operational capabilities. The parade is a joint military activity spanning services, branches and military-civilian coordination. We have scientifically configured forces, precisely coordinated actions, and meticulously planned and controlled every partial rehearsal for each formation and echelon, along with every full-element, full-process integrated rehearsal. We have scientifically allocated forces, precisely regulated actions, and meticulously organized coordination. Through these efforts, we have ensured deep integration and cohesive unity across all operational domains and elements. Parade training brings together forces from various strategic directions and military service domains under unified command, training, management and support. Through actions calibrated to the meter and the second, we are strengthening command-and-control capabilities, information integration and tactical coordination. The training reinforces a sense of command, a discipline of collaboration and a professional demeanor, thereby further consolidating the troops' joint operational proficiency. Thank you.

People's Daily Online:

Recent military parades have featured a joint military band to enhance the commemorative atmosphere. Could you provide details on how this year's military band was formed and trained? Thank you.

Xu Guizhong:

The joint military band was formed according to the overall design of the parade. We selected key members from the PLA Honor Guard's military band and other units to form a joint military band, aiming to create a solemn, grand atmosphere for the commemorative event. First, in selecting the musical repertoire, we balanced political significance, contemporary relevance, ceremonial solemnity, and artistic excellence through systematic programming that preserves tradition while embracing innovation. We have included representative classics such as "On the Songhua River" and "Defend the Yellow River," while also creating new compositions that embody the spirit of the times. This musical selection reflects both the hardships and glories of 14 years of arduous struggle, while highlighting the grand momentum of the people's armed forces marching forward in the new era. Second, the performance formation includes 14 rows in total, symbolizing the 14 years of the War of Resistance Against Japanese Aggression. The front row features 80 ceremonial trumpeters, representing the 80th anniversary of the victory in the war. This arrangement combines historical elements with contemporary features. Third, in terms of organizing the performance training, the joint military band performs while standing throughout the entire inspection. This is a comprehensive test of performance level, combat demeanor, command coordination and overall physical fitness. We have implemented specialized training for solo performances, section ensembles and full band ensembles. The training has focused on the integration of sections with the full band, the coordination between instrumental performance and vocal accompaniment, and the synchronization between the military band and parade formations. Meanwhile, we have strengthened targeted training for movement uniformity and performance stability to comprehensively enhance the military band's joint performance standards. Thank you.

Channel News Asia:

What is the significance of holding a large-scale military parade to commemorate the 80th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression? What insights do you hope the international community will gain from this?

Wu Zeke:

I'll answer that. Thank you for your questions. This military parade is an important part of the commemorations for the 80th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. It serves to remember our history, honor those who sacrificed their lives, cherish peace, and forge ahead into the future. Among all theaters of the World Anti-Fascist War, the Chinese People's War of Resistance Against Japanese Aggression started the earliest and lasted the longest. Under the banner of the united front against Japanese aggression that was advocated and established by the CPC, the Chinese people pressed forward one after another with united hearts. Through enormous national sacrifice, they sustained the main eastern battlefield of the World Anti-Fascist War. They engaged and tied down the main forces of Japanese imperialism for an extended period, eliminated more than 1.5 million Japanese troops, wrote a great chapter in the victory of the War of Resistance Against Japanese Aggression, and made a significant contribution to the victory in the World Anti-Fascist War.

Peace is hard-won and must be defended. We are willing to join hands with peace-loving countries and people worldwide to learn from history and draw wisdom and strength from the profound lessons of WWII and the great victory in the Anti-Fascist War. We persist in promoting the correct historical view of WWII, firmly uphold the post-war international order, and resolutely defend international fairness and justice. We will continue to resolutely oppose all forms of hegemonism and power politics, jointly promote the building of a community with a shared future for humanity, and work together for a brighter future for humankind. Thank you.

China News Service:

You just mentioned that many new types of weapons and equipment will be displayed at this parade. With so much equipment concentrated together, how do you manage and provide logistical support for it all? Thank you.

Xu Guizhong:

Thank you for your question. Since the 18th CPC National Congress, our military's weapons and equipment development has achieved leapfrog progress and historic accomplishments. To properly manage and support new weapons and equipment, we must adapt to new changes, adopt new measures and utilize new approaches. This parade features a wide variety of equipment and new technical systems, with most arranged in mixed formations, which makes managing and supporting the equipment quite challenging. In response to this, we have taken measures based on actual conditions. First, in terms of support forces, we have selected and assembled experts and technical personnel from different fields based on actual combat requirements, built a streamlined and efficient support system, and extended joint support to the tactical level. Second, in terms of the support model, we have established a system of individual equipment responsibility and implemented card-reading and checklist-based maintenance according to existing equipment technical specifications and standard operating procedures. These efforts have achieved standardized equipment management and support. In terms of support measures, by leveraging an intelligent equipment management information system, we are able to dynamically collect information, analyze data, and generate situational awareness. We have implemented comprehensive equipment health monitoring and conduct targeted preventive maintenance, significantly improving both equipment support efficiency and reliability. Thank you.

China Daily:

Could you brief us on how the peacekeeping contingent taking part in this year's military parade was selected? What is the positive significance of this arrangement for China's participation in UN peacekeeping operations? Thank you.

Wu Zeke:

Thank you for your questions. It is well known that China is the largest provider of peacekeeping forces among the permanent members of the UN Security Council. With a standby force of 8,000 personnel, China is a key force in UN peacekeeping operations. This year marks the 35th anniversary of the Chinese military's participation in UN peacekeeping operations. Over the past 35 years, China's peacekeeping forces have gradually become more professional and institutionalized. A set of principles, policies and operational guidelines in line with international standards and with Chinese characteristics has been developed. The composition of China's peacekeeping forces has been expanded from single-service units to multi-service forces. They can now undertake a broader range of tasks in addition to providing support and logistics. Their operational objectives have also been extended from ceasefire monitoring to promoting lasting peace. Making significant contributions to world peace, China's peacekeeping forces have demonstrated through their actions China's firm commitment to multilateralism and the purposes and principles of the UN Charter, standing fast as a disciplined force for peace and justice.

The peacekeeping contingent taking part in the parade has participated in international peacekeeping missions, carries the legacy of the Northeast Anti-Japanese United Army, and comprises personnel from various branches such as combat engineers and infantry troops. This arrangement not only highlights the solemn commemoration of the victory in the War of Resistance Against Japanese Aggression, but also demonstrates China's responsibility as a major country in fulfilling international obligations and maintaining world peace. China has always adhered to the path of peaceful development, and the Chinese military has always been a staunch force in safeguarding world peace. The "Chinese Blue Helmets" will continue to forge the shield of peace with dedication, actively fulfill the responsibilities as the armed forces of a major country, and write a splendid chapter in the great journey of building a community with a shared future for humanity. Thank you.

Beijing News:

We have noted that Beijing has recently introduced a series of ground traffic and air control measures in preparation for the parade and related rehearsals. How will the impact on the daily work and lives of people in Beijing be minimized? Thank you.

Xu Guizhong:

Thank you for your question. I'll take this one. In preparing for the parade, our overriding principle has been to avoid or minimize disturbing the public, so as to reduce the impact on Beijing's residents as much as possible. Our specific measures are as follows. First, in the deployment of concentrated training sites, we have sought to select locations away from urban areas and with lower population density. Second, with regard to the rehearsal time in Tian'anmen Square, the schedule has been arranged to avoid working days, with rehearsals held at night on weekends. Third, in terms of troop maneuvers, we have carried out meticulous planning, research and simulations, and optimized the grouping, timing, routes and methods of troop maneuvers, concentrating the personnel and equipment as much as possible. The number of marching echelons and the intervals between them have been minimized. Large equipment is first parked in sites away from the urban area and then moved swiftly to the designated area in the city as ordered, so as to minimize blocking roads and to shorten the time spent in the urban area. Fourth, in terms of area control, we have worked in close coordination with the local departments responsible for traffic management, air control and special services. Detailed surveys have been conducted for each intersection, area and time period, in order to narrow the scope and duration of restrictions as much as possible. Fifth, with regard to air control, only the low-altitude airspace along the parade's designated flight route has been cleared in stages. Peak periods of civil aviation operations have been avoided, and airspace resources have been managed carefully, in order to minimize the impact on civil aviation flights. The CPC Beijing Municipal Committee, the Beijing municipal government and the public have attached great importance to the military parade, offering much understanding and support. In particular, they have provided significant assistance with regard to the living conditions, logistical support and transportation of the troops participating in the parade. I would like to take this opportunity to express my sincere respect and heartfelt gratitude to the CPC Beijing Municipal Committee, the Beijing municipal government and the public. Thank you.

PLA Daily & China Military Online:

The parade this time will feature a battle flag formation, showcasing our army's honorary flags during the War of Resistance. How does this reflect the inheritance and promotion of the great spirit of resisting aggression? Thank you.

Wu Zeke:

Thank you for your question. I will take this one. During the 14-year-long War of Resistance, many heroic groups and individuals emerged. They played a crucial role in saving the nation from peril and achieving national independence and people's liberation. They fought for world peace, inspiring a magnificent heroic ode that resounds through the ages, establishing immortal feats recorded in history and forging a spiritual monument that shines forever. One of the reasons why we displayed representative honorary flags in this year's parade is to highlight the great course of the War of Resistance. These flags were chosen from units such as the Eighth Route Army, the New Fourth Army, the Northeast Anti-Japanese United Army, and the Southern China People's Counter-Japanese Guerrilla Force. They represent the arduous and challenging battles of our forces during the War of Resistance, bearing the glories of our resistance against Japanese invaders and defense against aggression. Another reason is to pay tribute to the great national heroes. Each battle flag carries the sacrifice and dedication of heroes who resisted Japanese aggression, bearing witness to their glorious deeds in defense of the nation. The battle flag formation will pass through the Tian'anmen Square for inspection, resonating with the Monument to the People's Heroes. This creates a touching scene where heroes and achievements coexist, history and the present day blend, reflecting our deep remembrance of revolutionary martyrs and our commitment to honoring their legacy. The third reason is to carry forward the great spirit of resisting aggression. The battle flag bearers all come from the corresponding honor units, reflecting the enduring spirit of the War of Resistance and the ongoing promotion of fine traditions. This will undoubtedly inspire all military officers and soldiers to inherit the red gene, forge ahead in the mission of strengthening and revitalizing the armed forces, and make new contributions. Thank you.

Dazhong Daily:

Militia, as part of our armed forces, played an important role in the War of Resistance Against Japanese Aggression. Can you introduce the details of the militia formation in the parade? Thank you.

Xu Guizhong:

Thank you for your question. Soldiers and civilians are the foundation of victory, with the militia emerging alongside the armed struggle, led by the Party. During the War of Resistance, the size of the militia reached more than 2.6 million. The vast number of militia participated in the battles, provided front-line support and fought courageously, eliminating over 106,000 enemy troops and plunging the Japanese invaders into the depths of people's war. In the new era, the militia has been transformed towards high-quality development, better fulfilling the mission of serving in peacetime, responding in emergencies, and fighting in wartime. We have assembled militia from 15 provinces in this year's parade, covering the main resistance bases led by the Party during the War of Resistance. Some come from the traditional militia units known for their achievements, like the Railway Guerrilla and the Plains Guerrilla. Others are from typical militia organizations that originated unique tactics like tunnel warfare, landmine warfare, and "sparrow" warfare. Additionally, some represent advanced militia groups that have made new contributions and played new roles since the founding of the People's Republic of China. This not only reflects the historical contributions of the militia in the War of Resistance, but also showcases the style of militia building in the new era, and the new achievements in the construction of national defense reserves. The militia formation has also made significant innovations in terms of parade attire compared to previous parades, fully showcasing the image of China's militia in the new era. Thank you.

Shou Xiaoli:

That's all for today's press conference. Thank you to the spokespersons and friends from the media. Goodbye, everyone.

Translated and edited by Zhang Jiaqi, Mi Xingang, Li Congrong, Liu Sitong, Liu Jianing, Xu Kailin, Zhu Bochen, Chen Xinyan, Zhang Junmian, Wang Qian, Ma Yujia, Zhou Jing, Li Huiru, Huang Shan, Gong Yingchun, Zhang Rui, David Ball, Tudor Bentley Finneran, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Mr. Fu Linghui, spokesperson and chief economist of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Aug. 15, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we are joined by Mr. Fu Linghui, spokesperson and chief economist of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS. Mr. Fu will brief you on China's economic performance in July 2025 and then take your questions.

Now, I would like to give the floor to Mr. Fu for his introduction.

Fu Linghui:

Thank you. Next, I will first report the main data indicators for July as usual, and then answer the questions that people are concerned about.

In July, the national economy maintained a steady growth momentum.

In July, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, all regions and departments conscientiously implemented the decisions and deployments of the CPC Central Committee and the State Council. Adhering to the general principle of seeking progress while maintaining stability, we fully and accurately implemented the new development philosophy on all fronts, accelerated the building of a new development pattern, stepping up the implementation of more proactive and effective macro policies, and deepened the construction of a unified national market. The national economy saw steady growth — production demand continued to grow, employment and prices remained stable, new quality productive forces became stronger, and high-quality development delivered new results.

First, industrial production grew fast, with equipment manufacturing and high-tech manufacturing showing good growth momentum.

In July, the total value added of industrial enterprises above designated size grew by 5.7% year on year, or 0.38% month on month. Between the three major sectors, the value added of mining went up by 5.0% year on year, that of manufacturing was up by 6.2%, and that of the production and supply of electricity, thermal power, gas and water was up by 3.3%. The value added of equipment manufacturing went up by 8.4% year on year, and that of high-tech manufacturing was up by 9.3%, which were 2.7 percentage points and 3.6 percentage points higher than the total value added of industrial enterprises above designated size. In terms of ownership, the value added of state holding enterprises went up by 5.4% year on year; that of share-holding enterprises was up by 6.5%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 2.8%; and that of private enterprises was up by 5.0%. In terms of products, the outputs of 3D printing devices, industrial robots and new energy vehicles (NEVs) grew by 24.2%, 24.0% and 17.1% year on year, respectively. In the first seven months, the total value added of industrial enterprises above designated size went up by 6.3% year on year. In July alone, the Manufacturing Purchasing Managers' Index stood at 49.3%, and the Production and Operation Expectation Index was 52.6%. In the first six months, the total profits of industrial enterprises above designated size were 3.4365 trillion yuan, down by 1.8% year on year.

Second, the service sector grew rapidly, with modern services maintaining a good development momentum.

In July, the Index of Services Production grew by 5.8% year on year. In terms of sectors, the production index of information transmission, software and information technology services was up by 11.9%, that of financial industry grew by 8.7% and that of leasing and business services was up by 8.0% year on year, which were 6.1 percentage points, 2.9 percentage points and 2.2 percentage points higher than the Index of Services Production, respectively. In the first seven months, the Index of Services Production increased by 5.9% year on year. In the first six months, the business revenue of service enterprises above designated size grew by 7.5% year on year. In July, the Business Activity Index for Services was 50.0% and the Business Activity Expectation Index for Services was 56.6%. Specifically, the business activity index for railway transportation, air transportation, postal services, and culture, sports and recreation stayed within the high expansion range of 60.0% and above.

Third, market sales registered continued growth and spending on services grew quickly.

In July, the total retail sales of consumer goods reached 3.878 trillion yuan, up by 3.7% year on year, or down by 0.14% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3.362 trillion yuan, up by 3.6% year on year, while the figure for rural areas reached 516 billion yuan, up by 3.9%. Grouped by types of consumption, the retail sales of goods were 3.4276 trillion yuan, up by 4.0%; the income of catering was 450.4 billion yuan, up by 1.1%. Sales of basic consumer goods and certain upgraded products posted solid growth. Retail sales of units above designated size rose 8.6% for grain, oil and food; 8.2% for daily necessities; 13.7% for sports and recreational articles; and 8.2% for gold, silver and jewelry, respectively. The consumer goods trade-in initiative continued to show results, with the retail sales of household appliances and audiovisual equipment, furniture, communication equipment, and cultural and office supplies by units above designated size growing by 28.7%, 20.6%, 14.9% and 13.8%, respectively. In the first seven months, the total retail sales of consumer goods reached 28.4238 trillion yuan, up by 4.8% year on year. The online retail sales were 8.6835 trillion yuan, up by 9.2% year on year. Specifically, the online retail sales of physical goods were 7.079 trillion yuan, up by 6.3%, accounting for 24.9% of the total retail sales of consumer goods. In the first seven months, the spending on services grew by 5.2% year on year. Among them, the spending on cultural, sports and leisure services, communication information services, tourism consulting and rental services, and transportation services grew rapidly.

Fourth, fixed-asset investment continued to expand, with investment in manufacturing growing fast.

In the first seven months, investment in fixed assets (excluding rural households) reached 28.8229 trillion yuan, up by 1.6% year on year; and investment in fixed assets was up by 5.3% with the investment in real estate development deducted. Specifically, investment in infrastructure grew by 3.2% year on year, that in manufacturing grew by 6.2%, and that in real estate development declined by 12.0%. The floor space of new commercial buildings sold was 515.6 million square meters, down by 4.0% year on year; the total sales of new commercial buildings were 4.9566 trillion yuan, down by 6.5%. By industry, investment in the primary industry went up by 5.6% year on year, that in the secondary industry up by 8.9%, and that in the tertiary industry down by 2.3%. Private investment declined by 1.5% year on year, and increased by 3.9% with investment in real estate development deducted. In the high-tech sector, investment in aerospace vehicle and equipment manufacturing, information services, and computer and office device manufacturing increased by 33.9%, 32.8%, and 16.0% year on year, respectively. In July, fixed-asset investment (excluding rural households) fell 0.63% month on month.

Fifth, imports and exports of goods grew quickly, and the trade structure continued to be optimized.

In July, the total value of imports and exports of goods was 3.9102 trillion yuan, up 6.7% year on year. Specifically, the total value of exports was 2.3077 trillion yuan, up 8.0%; and the total value of imports was 1.6026 trillion yuan, up 4.8%. In the first seven months, the total value of imports and exports of goods reached 25.6969 trillion yuan, up 3.5% year on year. Specifically, the total value of exports was 15.3048 trillion yuan, up 7.3%; and the total value of imports was 10.3922 trillion yuan, down 1.6%. In the first seven months, the imports and exports of general trade went up 2.1%, accounting for 64% of the total value of imports and exports. Imports and exports with Belt and Road partner countries grew 5.5%. Imports and exports by private enterprises went up 7.4%, accounting for 57.1% of the total value of imports and exports, 2.1 percentage points higher than that of the same period last year. Exports of mechanical and electrical products grew 9.3% year on year, accounting for 60% of the total value of exports.

Sixth, employment remained stable overall, and the surveyed urban unemployment rate experienced a seasonal increase.

In the first seven months, the average surveyed urban unemployment rate was 5.2%. In July, the surveyed urban unemployment rate was 5.2%, 0.2 percentage point higher than that of the previous month, and flat compared with the same month last year. The surveyed unemployment rate of population with local household registration was 5.3% and that of population with non-local household registration was 5.1%, among which the rate of the population with non-local agricultural household registration was 4.9%. In 31 major cities, the surveyed urban unemployment rate was 5.2%, up 0.2 percentage point from the previous month but down 0.1 percentage point compared with the same period last year. Employees of enterprises worked an average of 48.5 hours per week.

Seventh, consumer prices were flat year on year, while the core consumer price index (CPI) has risen for consecutive months.

In July, the CPI maintained the same level year on year, and rose by 0.4% month on month. By category, prices for food, tobacco and alcohol decreased by 0.8% year on year, clothing increased by 1.7%, housing rose by 0.1%, household goods and services grew by 1.2%, and transportation and communication declined by 3.1%. Prices for education, culture and recreation increased by 0.9%, health care rose by 0.5%, and other goods and services went up by 8.0%. In terms of prices for food, tobacco and alcohol, prices of pork went down by 9.5%, fresh vegetables down by 7.6%, grain down by 1.0%, and fresh fruits up by 2.8%. The core CPI excluding the prices of food and energy went up by 0.8% year on year, 0.1 percentage point higher than that of the previous month. In the first seven months, the CPI went down by 0.1% year on year.

In July, the producer prices for industrial products went down by 3.6% year on year, or down by 0.2% month on month. The purchasing prices for industrial producers went down by 4.5% year on year, or down by 0.3% month on month. In the first seven months, the producer prices and the purchasing prices for industrial products dropped by 2.9% and 3.2% year on year, respectively.

Overall, in July, macro policies took effect, the national economy overcame the adverse effects of a complex and volatile external environment and extreme domestic weather, maintained a steady and progressive development trend, and demonstrated strong resilience and vitality. It should also be noted that the external environment is complex and severe, and economic operations still face many risks and challenges. In the next stage, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and maintain the general approach of seeking progress while ensuring stability. We must fully and accurately implement the new development philosophy, and accelerate the construction of a new development pattern. We must fully implement the decisions and deployments of the CPC Central Committee and the State Council, promote the implementation of various policies, focus on stabilizing employment, enterprises, market and expectations, effectively unleash the potential of domestic demand, strongly promote the domestic and international dual circulation, and foster stable and healthy economic development. Thank you.

Shou Xiaoli:

Now, the floor is open to questions. Please identify your media outlet before raising your questions.

CCTV:

Since the beginning of this year, China's national economy has withstood pressure and overcome difficulties, demonstrating strong resilience and vitality. How do you evaluate the economic performance in July? Thank you.

Fu Linghui:

Thank you for your question. In July, the international environment was complex and severe, while the impact of trade protectionism and unilateralism continued. Some regions in China experienced extreme weather events, such as heatwaves, rainstorms and floods, which caused short-term shocks to the economic performance. In the face of the complex situation, under the strong leadership of the CPC Central Committee, all regions and departments have taken actions, overcome difficulties, accelerated the implementation of more proactive macro policies, and advanced the construction of a unified domestic market. Production and demand continued to grow, employment and prices remained generally stable, new drivers of growth expanded, and the economy maintained a stable performance with steady progress. The main features are as follows.

First, production supply maintained stable growth. Industrial production grew quickly, with the value added of industrial enterprises above designated size growing by 5.7% year on year in July, maintaining rapid growth. Driven by industrial upgrades and development, the equipment manufacturing industry saw good development, strongly supporting industrial growth. In July, the value added of equipment manufacturing enterprises above designated size increased by 8.4% year on year, significantly faster than the overall growth of industrial enterprises above designated size. The service sector maintained strong growth in July, with its production index increasing by 5.8% year on year. Increased summer travel boosted rapid growth in related services. In July, the production index of transportation, warehousing and postal services increased by 5.5% year on year, accelerating by 0.4 percentage point from the previous month.

Second, consumption and investment have continued to grow. Policies to boost consumption have shown to be effective. Cultural, sports and entertainment demand has increased, and both goods sales and service consumption have continued to grow. In July, the total retail sales of consumer goods increased by 3.7% year on year, with retail sales of goods growing by 4%. In the first seven months, the retail sales of services grew by 5.2% year on year, demonstrating overall stable growth. Affected by factors such as high temperatures and heavy rains in some regions and a slowdown in project construction, the growth rate of investment declined, but the scale of investment continued to expand. From January to July, fixed-asset investment rose by 1.6% year on year. The policy of large-scale equipment renewal has continued to take effect, further supporting investment growth. From January to July, investment in purchases of equipment, tools and instruments increased by 15.2%, maintaining rapid growth.

Third, foreign trade has demonstrated resilience. In the face of a complex and volatile international environment, various regions and departments have increased their efforts to stabilize foreign trade. Many foreign trade enterprises have taken proactive steps to expand foreign trade opportunities. Imports and exports of goods have continued to grow. In July, the total value of goods imported and exported increased by 6.7% year on year, up 1.5 percentage points from the previous month. The diversification of China's foreign trade has continued to advance. From January to July, China's imports and exports with Belt and Road partner countries increased by 5.5% year on year, continuing to outpace the overall growth rate of foreign trade.

Fourth, employment and prices have remained stable overall. Affected by factors such as the graduation season, the national surveyed urban unemployment rate showed a seasonal rise. In July, the national surveyed urban unemployment rate was 5.2%, unchanged from the same period last year, while overall employment remained stable. Employment of key groups remained basically stable. In July, the surveyed urban unemployment rate of the population with non-local agricultural household registration was 4.9%, lower than the national surveyed urban unemployment rate. Affected by the decline in food prices, the consumer price index (CPI) turned from a year-on-year rise to a flat reading in July, compared with a 0.1% increase in the previous month. The core CPI, excluding food and energy, rose by 0.8% year on year. The growth rate expanded by 0.1 percentage point from the previous month, marking the third consecutive month for growth rate expansion and indicating positive changes.

Fifth, new growth drivers have grown steadily. High-tech manufacturing has developed positively. In July, the added value of high-tech manufacturing above designated size increased by 9.3% year on year, continuing to outpace the growth rate of industrial enterprises above designated size. The modern service industry has maintained rapid growth, with the index of service production (ISP) for information transmission, software and IT services, and for leasing and business services growing by 11.9% and 8%, respectively. Smart and green new industries have grown rapidly. In July, the added value of integrated circuit manufacturing increased by 26.9% year on year, and the production of new energy vehicles increased by 17.1%. Online consumption has developed rapidly. From January to July, the online retail sales of physical goods increased by 6.3% year on year, which was 0.3 percentage point higher than the first six months.

It should also be noted that there are many external instabilities and uncertainties; domestic supply exceeds demand; some structural issues are still emerging; and the foundation for the economy's rebound and improvement needs to be consolidated. In the next stage, we will fully implement the decisions and arrangements of the CPC Central Committee, maintain policy continuity and stability, and enhance flexibility and foresight. We will focus on stabilizing employment, businesses, markets and expectations, vigorously promote the dual circulation of domestic and international markets, and promote steady and healthy economic development. Thank you.

National Business Daily:

What are the characteristics of the consumption data in July? How do you view service consumption in July? What is the outlook for consumption overall? Thank you.

Fu Linghui:

Thank you for your questions. Expanding consumption is an important measure to strengthen domestic circulation and continuously improve people's lives. Since the beginning of this year, various regions and departments have resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, actively promoted special actions to boost consumption, and intensified and expanded the implementation of the consumer goods trade-in policy. These efforts have helped unleash consumption potential and promoted stable economic performance. Looking at the situation in July, the growth rate of commodity market sales slowed down. In July, the total retail sales of consumer goods increased by 3.7% year on year, which was 1.1 percentage points lower than the previous month. However, service market sales remained generally stable. From January to July, service retail sales increased by 5.2%, which was basically the same as that from January to June. If the retail sales of goods and services are combined, preliminary estimates show a year-on-year increase of about 5% from January to July. Overall, a steady upward trend has been maintained since the beginning of the year, indicating that the expansion of consumption is unchanged. Looking at the overall performance of market sales in July, there are several key characteristics. These are as follows:

In terms of goods retail sales, goods related to the trade-in programs and upgraded categories recorded good sales. First, policies to boost consumption have continued to take effect. The enhanced and expanded trade-in programs for consumer goods have continued to demonstrate a driving effect on the sales of related products. In July, the retail sales of household appliances and audiovisual equipment, cultural and office supplies, furniture, and communication equipment in units above designated size increased by 28.7%, 13.8%, 20.6% and 14.9% year on year, respectively, all significantly higher than the growth rate of goods retail sales, continuing to support the growth of goods sales. Second, the retail sales of some upgraded categories of goods have grown rapidly. Consumption upgrades among residents have driven expanded demand for cultural, sports and entertainment goods, boosting the sales growth of related goods. In July, retail sales of sports and entertainment goods, as well as gold, silver and jewelry by units above designated size rose by 13.7% and 8.2% year on year, respectively.

In terms of service retail sales, the retail sales of services related to residents' intellectual and cultural needs have grown rapidly. First, the retail sales of cultural and tourism services have shown sound growth momentum. During the summer, there was a surge in travel demand among residents. Various regions actively developed new models of cultural and tourism consumption, injecting new momentum into expanding consumption with diversified supply. Markets related to sporting events, movies and performances were relatively active, contributing to rapid growth in cultural, tourism and recreational consumption. From January to July, the retail sales of travel consulting rental services, transportation services, and cultural and sports recreation services all maintained double-digit growth. Second, the retail sales of information services have grown rapidly. The demand for services such as digital audiovisual content and online entertainment has continued to expand, contributing to the growth in retail sales of household information services. From January to July, the retail sales of communication and information services grew by more than 10%, which was 0.2 percentage point higher than the growth rate in the first half of the year. Since the beginning of this year, the total business volume of telecommunications services and software business revenue both maintained rapid growth, also reflecting the sound development momentum in the communication and information services sector.

In terms of development trends, online consumption and emerging consumption are developing well. New business models such as online retail and instant retail are convenient and efficient, and have been well-received by consumers. In the first seven months, online retail sales of physical goods increased by 6.3% year on year, which was 0.3 percentage point higher than the growth rate in the first half of this year. New models and forms of consumption, such as livestreaming sales, are becoming increasingly mature. The silver economy and the debut economy are developing rapidly, with new growth drivers for consumption constantly emerging.

Overall, the growth rate of commodity market sales slowed in July, while service retail remained generally stable. Driven by special actions to boost consumption, the trend of expanding consumption has not changed, and new growth drivers for consumption have continued to strengthen. However, it should also be noted that external instabilities and uncertainties are increasing, the consumption capacity and confidence of domestic residents still need to be improved, and the internal driving force for consumption still needs to be strengthened. In the next stage, we will further implement the special actions to boost consumption. While expanding the consumption of goods, we will cultivate new growth areas in service consumption, continuously improve the consumption environment, and promote the stable development of the consumption market. Thank you.

CNR:

Based on July's economic data and your judgment of the current situation, what are your predictions and outlook for the economic trajectory in the second half of 2025? Thank you.

Fu Linghui:

Thank you for your question. Affected by multiple factors, some economic indicators fluctuated in July. However, the cumulative growth rate of key indicators has remained generally stable. Employment and prices were generally stable; and the steady economic performance remained unchanged. At the same time, driven by innovation, new growth drivers have been growing and expanding, high-quality development has been steadily advanced, and solid steps have been made in economic development. The national economy maintained a trend of steady progress. Looking ahead, despite facing various risks and challenges in economic operations, the fact that China's economy is underpinned by a stable foundation, multiple advantages, strong resilience and significant potential remains unchanged. The supporting conditions and fundamental trends for long-term sound economic development have not changed. With macro policies taking effect and proactive actions taken by all parties, market demand has expanded, new quality productive forces have developed, and market vitality has improved, which will strongly support the stable operation of the economy and steadily improve the quality of development. The second half of the year has the support of the following factors:

First, there is support for the expansion of market demand. In terms of consumption, the special actions to boost consumption have continued to take effect, and the consumption potential has been continuously released. From January to July, the total retail sales of consumer goods increased by 4.8% year on year, and service retail sales grew by 5.2%, with both remaining generally stable. As efforts to boost goods consumption and to cultivate new growth drivers for service consumption steadily progress, the expansion of consumption will continue to be supported. In terms of exports, despite the impact of high tariffs from individual countries, China's foreign trade entities have actively expanded into diversified markets, with increases in both the quantity and quality of goods exports, continuing to demonstrate the resilience of foreign trade. From January to July, China's goods exports grew by 7.3%, with exports of mechanical and electrical products growing by 9.3%. The expansion of market demand has created favorable conditions for stable economic operation.

Second, new quality productive forces have been actively developed. Various regions and departments have actively promoted the integrated development of scientific and technological innovation with industrial innovation, cultivated and strengthened new quality productive forces, and continuously expanded new growth drivers. High-tech industries have grown rapidly, and provided stronger support for economic growth. From January to July, the value added of high-tech manufacturing industries above designated size increased by 9.5% year on year, of which the value added of electronic and communication equipment manufacturing and aerospace vehicle and equipment manufacturing increased by 12.8% and 8.6%, respectively. The digital and intelligent transformation of industries has been accelerated, promoting the development of emerging industries. From January to July, the manufacturing of digital product equipment and intelligent unmanned aerial vehicles maintained rapid growth. The widespread application of large-scale AI models has significantly increased the demand for computing power, driving a substantial increase in server production.

Third, reform and opening up has continued to be deepened. Facing the complex and severe domestic and international situation, China has stayed firmly committed to deepening reforms and expanding high-standard opening up, thereby improving economic circulation, and boosting the resilience and vitality of foreign trade. In the first half of the year, the final consumption expenditure contributed 52% to economic growth, up 7.5 percentage points from the previous year. From January to July, the total value of imported and exported goods increased by 3.5% year on year, and both the freight turnover of goods and passenger turnover maintained rapid growth. As the construction of a unified national market advances, disorderly competition among enterprises is being regulated in accordance with laws and regulations, integrated development of domestic and foreign trade is being promoted, the vitality of business entities is being vigorously stimulated, and the dual circulation of domestic and international markets will be smoother.

Fourth, macro policies have continued to take effect. Since the beginning of this year, more proactive macro policies have been implemented, driving the expansion of production demand and promoting steady economic growth. From January to July, the retail sales of household appliances and audiovisual equipment, and communication equipment, supported by consumer goods trade-in policies, increased by 30.4% and 22.9% year on year, respectively. Under the two major initiatives of implementing major national strategies and building up security capacity in key areas as well as the policy of large-scale equipment renewals, the added value of the equipment manufacturing industry increased by 9.9% year on year from January to July, and investment in water conservancy and electricity grew rapidly. As policies to expand consumption demand in ensuring and improving people's livelihoods and to promote the high-quality implementation of the "Two Major Initiatives" policies yielded results, it will contribute to stable economic performance.

Recently, the International Monetary Fund (IMF) in its latest report, raised its China's economic growth forecast this year by 0.8 percentage point, which also reflects the international community's growing confidence in China's economic development. Thank you.

Beijing Youth Daily:

We have noticed that the data shows China's CPI rose 0.4% month on month, shifting from a 0.1% decrease in June. Meanwhile, the growth rate of the core CPI has also been accelerating for three consecutive months. What according to your analysis are the main reasons for this? Additionally, what will be the future trends in CPI in the next stage?

Fu Linghui:

Thank you for your questions. July witnessed positive changes in consumer prices in China, characterized by a shift from a month-on-month decrease to increase, and continuously expanding growth the in the core CPI year on year.

On a month-on-month basis, the CPI rose 0.4% in July, compared with a 0.1% decline in June. The month-on-month price shift from decline to growth was primarily driven by increases in the prices of services and industrial consumer goods.  First, driven by the peak summer travel season, prices of transportation-related services increased significantly, leading to a rebound in service prices. In July, the prices of air tickets, travel, hotel accommodation and vehicle rentals rose by 4.4%-17.9% month on month, collectively pushing up the monthly CPI by around 0.21 percentage point. In July, service prices increased by 0.6% month on month, expanding significantly compared with the previous month. Second, policies aimed at boosting consumption took effect, leading to a rebound in the prices of some industrial consumer goods. The monthly CPI rose by approximately 0.05 percentage point in July, driven by price increases ranging from 0.5% to 2.2% for items such as household appliances, daily necessities, recreational durables and personal care products. In July, the prices of industrial consumer goods excluding energy increased by 0.2% month on month, expanding slightly compared with the previous month. In addition, driven by changes in international oil prices, rising energy costs also contributed to the month-on-month increase in the CPI. In July, energy prices increased by 1.6% month on month.

Given that food and energy prices in the CPI are more susceptible to short-term factors, analyzing price changes requires looking not only at the headline CPI but also at the core CPI, which provides a better reflection of the underlying inflation trend. On a year-on-year basis, despite the impact of a larger fall in food prices, the headline CPI remained flat in July. However, the core CPI excluding food and energy was up 0.8%, representing a 0.1 percentage point acceleration in the pace of increase from the previous month and the third straight month of widening gains. Overall, since the beginning of this year, it has shown a trend of stability with a moderate increase, indicating positive changes in market supply and demand.

The year-on-year increase in core CPI has continued to expand, mainly due to the effective implementation of special actions to boost consumption since the beginning of this year. Potential for goods and services consumption was gradually released, which helped drive price up. The steady advancement of the construction of a unified national market, along with efforts to curb cutthroat low-price competition in accordance with laws and regulations, also promoted the price rebound. First, the expansion of the trade-in policy for consumer goods and the regulation of corporate competition have driven a rebound in the prices of related industrial consumer goods. In July, the prices of industrial consumer goods excluding energy increased by 1.2% year on year. The growth rate accelerated by 0.2 percentage point from the previous month, marking the third consecutive month of expansion, and contributed 0.29 percentage point to the year-on-year increase of the CPI. Specifically, the prices of household appliances increased by 2.8% year on year, while the declines in prices for fuel-powered cars and new energy cars narrowed by 0.8 percentage point and 0.6 percentage point, respectively, compared with the previous month. Second, as household consumption upgrades and demand for services continue to grow, service prices have remained firm with an upward trend. In July, service prices increased by 0.5% year on year, a growth rate that outpaced the headline CPI and contributed about 0.19 percentage point to its change. This rise continues the upward trend observed since March. Specifically, household services and education services rose by 1.7% and 1.1% year on year, respectively, higher than the overall price increase for services. In addition, the prices of gold and platinum jewelry rose 37.1% and 27.3% year on year, respectively, in July, also contributing to the year-on-year increase in core CPI.

In summary, July saw generally stable operation of consumer prices and the continued emergence of positive changes. However, the market remained characterized by supply outstripping demand, keeping prices at low levels. Going forward, the results from policies including expanding domestic demand and advancing the development of a unified national market are expected to become more evident, and positive forces supporting a reasonable rise in the general price level will keep building up. Thank you.

Market News International:

This week, China and the U.S. agreed to extend their escalatory tariff truce by a further 90 days. How does this impact China's export performance over the remaining months of the year? What is your view that the possibility that the front-loading effect seen earlier in the year will weaken export performance in the second half? And, what will be the source of export growth in the months ahead?

Fu Linghui:

Thank you for your questions. Since the beginning of this year, despite a rapidly changing trade environment and a significant increase in uncertainties and instabilities, China's imports and exports of goods have continued to grow, showing strong resilience and vitality. In July, China's total value of imports and exports of goods grew by 6.7% year on year, accelerating by 1.5 percentage points from the previous month. The value of goods exports increased by 8% year on year, accelerating by 0.8 percentage point from the previous month and marking the second consecutive month of acceleration. As exports continue their rapid growth, China's imports are also steadily rebounding. In July, the value of goods imports increased by 4.8% year on year, accelerating by 2.4 percentage points from the previous month, marking the second consecutive month of expansion. This rise is conducive to expanding global market demand and injecting Chinese strength into the global economic recovery. The strong resilience of China's goods imports and exports can be attributed to its unwavering commitment to high-level opening up and diversification of foreign trade partners, coupled with industrial optimization and upgrading, enhanced market competitiveness and the joint efforts of stabilizing foreign trade policies to create a good environment for foreign trade enterprises. Looking ahead to the second half of the year, China's export growth is still supported by a number of favorable conditions.

First, the strategy of foreign trade diversification is continuing to yield positive results. Affected by high tariffs, China's exports to the United States have declined. Nevertheless, China remains committed to expanding high-standard opening up and promoting trade exchanges with countries around the world on the basis of mutual benefit and win-win outcomes. Exports to traditional major trade partners and emerging trade partners have continued to grow. From January to July, China's exports to ASEAN, the EU, and Belt and Road partner countries increased by 14.8%, 8.2% and 11.7%, respectively. As China continues to deepen its economic and trade cooperation with countries around the world, the support of foreign trade diversification for exports will become increasingly evident.

Second, the competitiveness of export goods has been enhanced. Chinese enterprises have been actively improving their independent R&D capabilities, accelerating transformation, optimizing product structures, and upgrading technological content. Their international competitiveness has been continuously strengthened, which has also contributed to export growth. From January to July, China's exports of electromechanical products increased by 9.3% year on year, with exports of integrated circuits up 21.8%. Exports of high-tech products also performed well, growing by 7.2% during the same period.

Third, foreign trade enterprises have remained highly dynamic. Since the beginning of this year, in the face of external market fluctuations, a wide range of foreign trade enterprises, particularly private ones, have taken active and forward-looking steps under the support of various policies promoting private sector development. They have worked to consolidate existing markets and explore new ones, providing strong momentum for the growth of foreign trade. From January to July, exports by private enterprises increased by 8.7% year on year, outpacing the overall growth rate of goods exports. The adaptability and innovation of foreign trade entities have also created favorable conditions for expanding trade opportunities.

It should also be noted that local governments and relevant departments across the country have continued to intensify efforts to promote high-quality development of foreign trade, helping enterprises stabilize orders and expand markets. The positive effects of these policies will continue to emerge. The global economy remains weak and there are many unstable and uncertain factors in the external environment. This brings additional pressure on China's foreign trade and poses greater challenges to certain enterprises. In spite of this, our commitment to high-standard opening up remains unchanged. The country's comprehensive industrial system offers distinct advantages, foreign trade enterprises are actively adapting to changes, and the continued implementation of policies to stabilize foreign trade will keep supporting its steady and sound development. Thank you.

Jiupai News:

Developing new quality productive forces is an intrinsic requirement and an important focus of promoting high-quality development. Since the beginning of this year, various regions have been actively fostering new quality productive forces. Could you please brief us on their development in July? Thank you.

Fu Linghui:

Thank you for your question. The development of new quality productive forces has attracted a great amount of attention. Since the start of this year, China has been promoting the deep integration of scientific and industrial innovation, advancing high-end, intelligent, and green industrial transformation, and facilitating the application of scientific and technological achievements. These efforts have led to steady progress in cultivating new quality productive forces, injecting strong momentum into high-quality development. Let me give you some details.

First, a steady stream of innovation outcomes has emerged. China has continued to increase R&D investment and advance self-reliance and self-strengthening in science and technology, achieving a number of breakthroughs. In 2024, national R&D spending exceeded 3.6 trillion yuan, with an intensity of 2.68%, surpassing the overall level of the EU and approaching the OECD average. This year, from the domestic boom in large AI models to the "Robot Marathon," a series of technological innovations have captured global attention.

Second, emerging industries have maintained a robust growth. Emerging industries serve as key arenas for fostering new quality productive forces. The deep integration of scientific and industrial innovation has enhanced the supply of high-quality innovation, continuously driving the growth of emerging industries. High-tech industries with higher technological content and added value have maintained rapid growth since the beginning of this year. In July, the value added of integrated circuit manufacturing and electronic special materials manufacturing above the designated size increased by 26.9% and 21.7% year on year, respectively.

Third, the digital economy has grown rapidly. In the digital era, digital technologies have become a key driving force, increasingly empowering a wide range of industries. In July, the value added of digital product manufacturing above the designated size increased by 8.4% year on year. Artificial intelligence has developed rapidly and become more deeply integrated with the real economy, with application scenarios continuing to expand and smart terminal products becoming increasingly popular. In July, the value added of intelligent unmanned aerial vehicle manufacturing and intelligent in-vehicle device manufacturing rose by 80.8% and 21%, respectively. Industrial robots and civilian drones output increased by 24% and 18.9% respectively.

Fourth, green development has gained both quality and efficiency. In line with the global trend toward green and low-carbon growth, China has been fostering new growth drivers in green development and has achieved remarkable results, with the green content of its economy continuing to rise. In July, the output of new energy products such as new energy vehicles and lithium-ion batteries increased by 17.1% and 29.4% year on year, respectively. The output of green materials such as carbon fiber and bio-based chemical fibers rose by 43.8% and 19.8% , respectively. The green transformation has also created new opportunities for the development of the circular economy, as the value added of the waste resource comprehensive utilization industry increased by 11.7% in July.

In addition, the effects of large-scale equipment renewal policies continue to be realized, creating favorable conditions for traditional industries to accelerate equipment upgrades and technological transformation. Some enterprises in traditional sectors have introduced new processes, technologies, and concepts, leveraging the advantages of flexible production and rapid response to establish core competitiveness in a highly competitive market environment. Thank you.

South China Morning Post:

You've shared your analysis on the CPI data. Could you please provide your perspective on the PPI figures and their outlook in the coming months? The Commission for Finance and Economy under the CPC Central Committee held a meeting on July 1, emphasizing the need to regulate enterprises' low-price disorderly competitions in accordance with laws and regulations. Given this, has there been any visible effect of the measures to eliminate rat race competition in the recent economic data? Thank you.

Fu Linghui:

Thank you for your questions. Recently, as the policies to expand domestic demand and spur consumption began taking effect, the building of unified domestic market advanced. Our regulation of enterprises' low-price, disorderly competition in accordance with laws and regulations has improved the supply and demand dynamics of certain markets. This has led to some positive changes in prices. The CPI rose 0.4% month on month in July, reversing the 0.1% decline seen in June. Notably, the price of industrial consumer goods increased by 0.5% from the previous month, with the growth rate accelerating by 0.4 percentage points. In July, prices of fuel-powered and new energy vehicles shifted from a month-on-month decline to a flat trend, halting the previous consecutive downward momentum. The PPI decreased by 0.2% month on month in July, with the rate of decline narrowing by 0.2 percentage points compared to June. This marks the first time the monthly decline has slowed since March. Notably, price declines in key sectors such as coal, steel, cement, photovoltaic products and lithium battery manufacturing narrowed by 0.1 to1.9 percentage points, compared to the previous month. Such moderation in price decline across these sectors reduced their downward drag on the overall PPI by 0.14 percentage points from the level of June.

Despite the complex and volatile external environment with lingering uncertainties from international commodity price fluctuations, coupled with significant competitive pressures in certain domestic sectors, the foundation for a reasonable price recovery is being steadily enforced. This is driven by incremental macroeconomic policies that sustain efforts to boost consumer spending. It also relies on proactive regulation to curb disorderly low-price competition among firms, the promotion of capacity management in key industries, and the growing influence of new economic drivers. Thank you.

The Paper.cn:

What were the changes in the investment data for July? What are the reasons behind these changes? How do you assess the investment outlook in the coming months? Thank you.

Fu Linghui:

Thank you for your questions. From January to July, fixed asset investment increased by 1.6% year on year, showing a slowdown compared to the January to June period. The actual growth rate of fixed asset investment, after deducting price factors, is estimated to be4% to5%. The decline in the nominal growth rate of investment can be attributed to several factors: including short-term influences such as frequent high temperatures and heavy rainfall in some regions, which impact the project construction; the complex and volatile external environment, intensified competition among domestic enterprises, and declining returns on investment; as well as structural reasons related to China's transition process, where the investment momentum in traditional industries is weakening, with emerging sectors that are not currently able to fully compensate for the shortfall. Although the nominal growth rate of investment has slowed, the physical investment remains substantial after deducting price factors. The guidance of innovation-driven development and the policy for large-scale equipment renewal policy, as well as the investment structure continues to be optimized, which in turn creates favorable conditions for economic transformation and upgrading. The key aspects are as follows:

First, investment in manufacturing registered fast growth. Driven by the steady advancement of the efforts to build China into a manufacturer of quality, the upgrading of traditional manufacturing industries and the accelerated development of emerging manufacturing industries have supported the rapid growth in manufacturing investment. From January to July, investment in manufacturing increased by 6.2% year on year, significantly outpacing overall investment growth. Investment in the textile, clothing, and apparel industry increased by 25.2%, investment in the automobile manufacturing industry increased by 21.7%, and investment in the general equipment manufacturing industry increased by 14.8%.

Investment in high-end industries has increased. Scientific and technological innovation is guiding industrial innovation, while the cultivation and growth of new quality productivity driving investment growth in high-end sectors. During the January to July period, investment in the aerospace and equipment manufacturing industry rose by 33.9% year on year, investment in computer and office equipment manufacturing increased by 16%, and investment in information services grew by 32.8%, all maintaining a rapid growth momentum.

Third, investment in key sectors witnessed rapid growth. With continued progress in the implementation of major national strategies and building up of security capacity in key areas, investment in infrastructure in key areas expanded rapidly. Investment in the water conservancy management industry increased by 12.6% from January to July, and investment in information transmission grew by 8.3%. Large-scale equipment renewal has significantly bolstered investment, with investment in purchasing equipment, tools and instruments rising by 15.2% year on year during this period. This category accounted for 16.2% of the total investment, contributing 2.2 percentage points to overall investment growth.

Fourth, investment in the green transformation of energy registered steady growth. As China continues to deepen the green transformation of its energy supply, investment in clean energy-related sectors has been expanding, strongly supporting and ensuring the country's energy security. From January to July, combined investment in solar, wind, nuclear, and hydropower generation increased by 21.9% year on year, maintaining a rapid growth.

Overall, China's investment scale continues to expand, and the investment structure is constantly improving. The pressure facing investment growth is temporary and should be viewed comprehensively. Looking ahead, the country still possesses great potential for investment. There remains significant gap in our per capita capital stock compared with developed countries. Going forward, the accelerated development of new quality productive forces, promoting coordinated development between urban and rural areas and between regions, whilst addressing inadequacies in public well-being all require increased investment. In the next stage, we must adhere to high-quality development, deepen the construction of a unified national market, further improve the investment environment, mobilize investment enthusiasm from all sectors, stimulate vitality of private investment, expand effective investment, promote continuous optimization of the supply structure, and promote the healthy and stable development of the economy. Thank you.

Jinan Times APP:

How did the industrial enterprises above the designated size perform in July? What were the key characteristics of their performance? What is the outlook for industrial production in the coming months? Thank you.

Fu Linghui:

Thank you for your questions. In July, industrial production maintained rapid growth and high-quality development steadily advanced, showing strong resilience and potential. The main features are as follows.

First, industrial production recorded steady and relatively rapid growth. In July, the value added of industrial enterprises above designated size rose 5.7% year on year. Although it fell slightly from the previous month, it still represented rapid growth. Among them, the value added in the manufacturing industry increased by 6.2%, continuing to outpace the overall growth of industrial enterprises above designated size. The equipment manufacturing industry showed strong growth, continuing to serve as a stabilizing ballast for industrial production. In July, the value added of equipment manufacturing enterprises above designated size increased by 8.4% year on year, clearly supporting the overall growth of industrial enterprises above designated size.

Second, the trend toward high-end and green development continued. The integration of technological and industrial innovation is further developing, and the new quality productive forces represented by high-tech manufacturing and green products are steadily growing. In July, the value added in high-tech manufacturing enterprises above designated size increased by 9.3% year on year. Within this, industries such as integrated circuits and the manufacture of electronic specialty materials grew by 26.9% and 21.7%, respectively. Output of 3D printing equipment and industrial control computers and systems increased by 24.2% and 21.4%, respectively. Production of green and low-carbon products rose rapidly: in July, output of new energy vehicles, lithium-ion batteries, and wind turbine generators increased by 17.1%, 29.4%, and 19.3%, respectively. 

Third, digital and intelligent transformation advanced steadily. Driven by the wave of informatization and intelligence, digital product manufacturing and intelligent product production performed well. The value added of digital product manufacturing enterprises above designated size increased by 8.4% year on year, continuing to outpace the growth of industrial enterprises above designated size. Among them, manufacturing of intelligent equipment and electronic components and devices increased by 13.4% and 11%, respectively. AI applications advanced rapidly, promoting favorable development in related industries. In July, production of industrial robots and service robots rose by 24% and 12.8%, respectively.

Fourth, the stimulative effects of policies continued to emerge. Major national projects and programs, including those aligned with major national strategies, which also focus on building security capacity in key areas, as well as the large-scale renewal of equipment and the trade-in of consumer goods, have driven industrial production. Driven by equipment renewal, in July, the value added of industries such as shipbuilding and related equipment manufacturing and motor manufacturing increased by 29.7% and 15.9%, respectively. Under the trade-in policy for consumer goods, output of electric bicycles and 5G smartphones in July increased by 45.3% and 8.1%, respectively.

Overall, industrial production in July was generally stable, and the quality of development continued to improve. However, it should also be noted that the external environment remains complex and severe. There remains a prominent imbalance in supply and demand for a few industries. The profitability of industrial enterprises continues to be placed under pressure. Looking ahead, there are many favorable conditions for the improvement of industrial production. We should act based on current realities, while keeping long-term goals in mind. We must also further expand domestic demand and strengthen innovation-driven growth. We should vigorously cultivate new quality productive forces, promote the transformation and upgrading of traditional industries, and advance sustained and healthy industrial development. Thank you.

Shou Xiaoli:

Let's continue with the questions. Due to limited time, we will take one last question.

China News Service:

On July 31, the State Council executive meeting deployed the implementation of personal consumption loans interest subsidies and service industry business operators loan interest subsidies policies to reduce the cost of resident credit, stimulate consumption potential, and promote the development of the service industry. In the second half of the year, can the service industry become the main driving force of economic growth? Thank you.

Fu Linghui:

In recent years, China's industrial structure has been adjusted and optimized, and the share of the service industry in the national economy has steadily increased, making its support for economic growth increasingly evident. In the first half of this year, the value added of the service industry increased by 5.5% year on year, and contributing 60.2% to economic growth, making it an important driving force in economic growth. In July, with the sustained effects of macroeconomic policy package, the service sector production index rose 5.8% year on year, maintaining rapid growth whilst strongly supporting stable economic operations. From the operating conditions of the service sector in July, the following features can be observed.

First, modern services registered increasingly fast growth. The role of innovation leadership continues to strengthen, and the integrated development of technological innovation and industrial innovation has a significant driving effect on related service industries. In July, the production index of information transmission, software, and information technology services rose 11.9% year on year, significantly faster than the overall growth rate of the service industry production index. In July, the production index for leasing and business services increased by 8% year on year, maintaining rapid growth.

Second, emerging service industries were nurtured and continue to grow. New quality productive forces such as large AI models and humanoid robots are developing rapidly, strengthening their driving effect on producer service industries like scientific research and technical services. From January to June, operating revenues of information services, R&D and design services above designated size achieved double-digit growth. The pace of digital transformation is accelerating, and digital culture and sports services are growing rapidly. From January to July, the transaction volume of leading cultural and sports service platforms increased by more than 10%.

Third, tourism and travel-related services were active. Summer tourism and travel activities have increased, driving the growth of related industries. In July, the production index for transportation, storage, and postal services rose 5.5% year-on-year, accelerating by 0.4 percentage point from the previous month. In July, railway passenger volume increased by 6.6% year on year, 3 percentage points faster than the previous month, and international route passenger volume grew by 15.7%.

In addition, financial services grew rapidly. The financial industry production index rose 8.7% year on year in July, accelerating by 1.4 percentage points from the previous month. These indicate that the service industry maintained rapid growth in July, with new momentum expanding and their supporting role in economic growth continuing to be demonstrated. Looking at the situation in the second half of the year, China's service sector has many favorable conditions for development. For example, industrial upgrading will expand demand for producer services such as R&D and design, while upgrades in household consumption structure will increase demand for lifestyle services such as culture, sports and leisure. Together with various measures to promote the service sector, these factors will support sustained growth and improvement of quality and efficiency in services. As for business expectations, the business activity expectation index for the service sector in July was 56.6%, 0.6 percentage point higher than the previous month, and remaining in a relatively high expansion range of 56% and above, indicating that service-sector enterprises are optimistic about future development. In the next stage, various policies and measures promoting the development of the service industry will be implemented to consolidate and enhance the positive development momentum of the industry, and promote high-quality economic development. Thank you.

Shou Xiaoli:

Thank you to all the speakers and friends from the media. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Liu Sitong, Yan Xiaoqing, Xu Kailin, Ma Yujia, Liu Caiyi, Gong Yingchun, Liu Jianing, Zhang Junmian, Fan Junmei, Ma Yujia, Li Huiru, Wang Qian, Zhang Rui, David Ball, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Junzheng, secretary of the Communist Party of China (CPC) Xizang Autonomous Regional Committee

Mr. Gama Cedain, deputy secretary of the CPC Xizang Autonomous Regional Committee and chairman of the People's Government of Xizang Autonomous Region 

Chairperson:

Mr. Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Aug. 5, 2025

Zhou Jianshe:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This year marks the 60th anniversary of the founding of Xizang Autonomous Region. Today we have invited Mr. Wang Junzheng, secretary of the Communist Party of China (CPC) Xizang Autonomous Regional Committee, and Mr. Gama Cedain, deputy secretary of the CPC Xizang Autonomous Regional Committee and chairman of the People's Government of Xizang Autonomous Region, to brief you on the achievements in economic and social development on the 60th anniversary of the founding of Xizang Autonomous Region and take your questions.

Now, I'll give the floor to Mr. Wang.

Wang Junzheng:

Ladies and gentlemen, good morning. The year 2025 marks the 60th anniversary of the founding of Xizang Autonomous Region. Today, we are holding this press conference on the 60th anniversary of the founding of Xizang Autonomous Region. First, on behalf of the CPC Xizang Autonomous Regional Committee and the regional government of Xizang, I would like to extend a warm welcome to the media and express my heartfelt thanks to people from all walks of life for their long-standing care and support for Xizang.

In 1951, Xizang was peacefully liberated. The official establishment of Xizang Autonomous Region in 1965 opened a new chapter in its history. The six decades since have been extraordinary. Under the leadership of the CPC, Xizang has established a socialist system and people's democratic governance, implemented the policy of reform and opening up, and built a moderately prosperous society in all respects. Along with the rest of the country, Xizang has embarked on a new journey to build a modern socialist nation. The region has undergone a historic transformation — from darkness to light, backwardness to progress, poverty to prosperity, autocracy to democracy, and isolation to openness. Its social productive forces have been unleashed and significantly developed, creating a miracle of progress that has spanned a thousand years in just a few decades. In particular, since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has placed great importance on Xizang's development. General Secretary Xi Jinping has visited Xizang for inspection and guidance, and presided over the sixth and seventh national meetings on Xizang. CPC Policies on the Governance of Xizang in the New Era were formulated, outlining four key priorities: ensuring stability, promoting development, protecting the ecological environment, and strengthening border areas. A series of preferential policies and major projects have been launched, helping Xizang to address long-standing challenges and accomplish goals that had remained out of reach for years. These efforts have led to comprehensive progress and historic achievements in the region's economic and social development.

Today, Xizang enjoys sustained social stability and continuous improvement. We have always placed the highest priority on maintaining social stability. Through constant vigilance, sound mechanisms and a law-based, regular approach, this work has been integrated into everyday governance and extended down to the grassroots. As a result, the sense of security and public satisfaction among all ethnic groups has remained above 99%. Efforts to promote ethnic unity and progress have been tangible, visible and effective. Exchanges and integration among ethnic groups have grown deeper and broader. All seven prefecture-level regions in Xizang have been recognized as national demonstration areas for ethnic unity and progress, further reinforcing the sense of Chinese identity. In line with the direction of adapting religion to China's realities, freedom of religious belief is fully guaranteed. Public education in national identity, civic awareness, and the rule of law has been expanded significantly, contributing to religious harmony and stable, harmonious monasteries. Programs aimed at strengthening and enriching border areas have been steadily advanced. Infrastructure in border villages and local living conditions have markedly improved. Various industries have flourished, ensuring strong border defense, regional security and improved well-being for border residents.

Xizang's economy continues to grow rapidly. In 2024, the region's GDP reached 276.5 billion yuan, 155 times that of 1965 at constant prices, with an average annual growth rate of 8.9%. Local government revenue rose to 27.7 billion yuan, 1,258 times that of 1965, with an average annual growth rate of 12.9%. In its 60-year history, it took 50 years for Xizang's GDP to reach its first 100 billion yuan, but only six years to reach the second. Since 2021, continuous efforts have expanded the scale of the economy, improved the quality and efficiency of development, and supported the rapid rise of modern industries such as clean energy, cultural tourism and highland light manufacturing. A modern industrial system has begun to take shape, and the region's capacity for self-driven and self-sustaining development has steadily grown. Key economic indicators have ranked among the highest nationwide for several consecutive years. Xizang's economic and social progress has been significant both in absolute terms and in comparison with other regions. This year, regional GDP is expected to exceed 300 billion yuan, reaching a new milestone.

Infrastructure development has advanced significantly. A multidimensional transport network now spans the snowy plateau. Once isolated, the Roof of the World is now open and connected. From the opening of the Qinghai-Xizang and Sichuan-Xizang highways to the completion of the Qinghai-Xizang Railway and the operation of the Fuxing high-speed trains, Xizang has moved beyond its former reliance on manual and animal transport. A comprehensive network of highways, railways and air routes is now in place. By the end of 2024, the total length of highways reached 124,900 kilometers and railway operations extended 1,359 kilometers. The region operated 183 domestic and international air routes. The Qinghai-Xizang, Sichuan-Xizang, central Xizang, and Ngari electric transmission lines have been built and put into operation, bringing grid access to all counties, districts and cities. Safe drinking water is now accessible in rural areas, and all administrative villages have achieved full fiber-optic and 4G network coverage. These advances have helped overcome long-standing bottlenecks in development and injected strong momentum into Xizang's high-quality growth.

People's living standards have improved significantly. Under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, Xizang has secured a sweeping victory in the battle against poverty, eradicating absolute poverty that had persisted for centuries. Education has been given top priority. Xizang was the first region in China to implement 15 years of free education from kindergarten through high school. Traditional culture has been effectively preserved, passed down and revitalized, and public cultural services have steadily improved. Urban and rural public health care systems have continued to improve. Free health checkups now cover all farmers and herders, and the average life expectancy has risen to 72.5 years. Urbanization is accelerating. Distinctive modern towns are springing up across the plateau. The social security system is steadily improving, strengthening basic support for public welfare. In 2024, per capita disposable income of urban residents reached 55,444 yuan, 121 times that of 1965, with an average annual increase of 8.5%. Rural residents, including farmers and herders, saw their per capita disposable income reach 21,578 yuan, 199 times that of 1965, growing at an average annual rate of 9.4%. People of all ethnic groups have access to housing, employment, education, medical care and old-age support. They share in the fruits of reform and development, and their sense of fulfillment is stronger, their happiness more sustainable, and their sense of security more firmly guaranteed.

The ecological security barrier has become increasingly robust. Prioritizing ecological conservation, Xizang has strictly enforced the Law on Ecological Protection of the Qinghai-Xizang Plateau and earnestly implemented the national plan for ecological barrier protection and development. Over half of the region's territory has been incorporated into the ecological conservation redlines (ECRs). Xizang has also adopted a holistic and systematic approach to conserving and improving its mountain, water, forest, farmland, grassland and desert ecosystems, and further advanced large-scale greening programs. Notably, in recent years, Xizang has implemented afforestation projects around Lhasa, resulting in over 66,667 hectares of newly planted forests. As a result, the region's forest coverage rate has increased to 12.31%. More than 440,000 jobs related to ecological protection have been established, with over 1.5 billion yuan in subsidies issued annually. These efforts have enabled local residents to earn a living and increase their incomes from ecological conservation. In addition, air quality in Xizang reached "good" or "excellent" on over 99.7% of days, and the water quality of all its major rivers and lakes meets or exceeds Grade III in the country's five-tier water quality system. Xizang has one of the best ecological environments in the world.

Whole-process people's democracy has been comprehensively developed. The system of regional ethnic autonomy has been continuously improved and democratic institutions have been further strengthened. The lawful rights of people from all ethnic groups to participate in the administration and deliberation of state affairs are fully guaranteed. There are a total of 42,153 deputies to the people's congresses at the township, county, prefecture and regional levels, with 89.2% from Tibetan and other ethnic minority groups. Among the 24 deputies from Xizang who attended the 14th National People's Congress (NPC), 16 are from Tibetan and other ethnic minority groups, accounting for 66.7%. Ethnic minorities with small populations, such as the Monpa and Lhoba, also have their own deputies. Of the 29 members of the Chinese People's Political Consultative Conference (CPPCC) National Committee residing in Xizang, 86.2% are from ethnic minority groups. Moreover, the system of primary-level self-governance also keeps improving. Village affairs public bulletin boards have been installed in administrative villages in Xizang, in a bid to proactively ensure people's rights to be informed, to participate in the deliberation of village affairs and in the decision-making process, and to scrutinize the exercise of power.

Party building has been fully strengthened. Over the past six decades, Party organizations at all levels in Xizang have grown both in size and strength. The scientific and institutional standards of Party building have continuously improved, along with the Party's governance capacity. By 2024, the number of CPC members in Xizang has surged from 14,800 at the time of the autonomous region's establishment to 470,400. Upholding the strategy of focusing on primary-level Party development, Xizang has dispatched more than 297,000 cadres in 14 groups to serve in villages since 2011. These officials have consistently addressed people's concerns, solved their difficulties and built a bridge between the Party and the public. We have resolutely implemented the Party's organizational line for the new era, firmly upholding the principle of appointing and evaluating officials through their abilities and practical performance. Efforts have been continuously made to strengthen Party discipline and highlight policy implementation. Cadres are identified, trained and appointed from the primary level, with the goal of building a team of loyal, upright and responsible cadres. As a result, a positive work environment marked by unity and drive has taken shape across Xizang, further consolidating the CPC's governing foundation in the region.

Six decades have passed in the blink of an eye, yet they have brought about tremendous transformation. Xizang today enjoys a stable society, economic growth, ethnic unity, religious amity, sound ecological environment, strengthened border defense, and a population living and working in peace and contentment. The region is thriving with vitality and promise. Practice has fully proved that only by resolutely following the path of socialism with Chinese characteristics, adhering to and improving the system of regional ethnic autonomy, and implementing the Party's policies on governing Xizang in the new era, under the leadership of the CPC, can Xizang enjoy the prosperity it has today, and embrace an even more promising future.

Standing at a new historical starting point, the CPC Xizang Autonomous Regional Committee, the regional government and people of all ethnic groups in the region will rally more closely around the CPC Central Committee with Comrade Xi Jinping at its core, comprehensively implementing General Secretary Xi Jinping's important instructions on the work related to Xizang and the Party's policies on the governance of Xizang in the new era. We will forge ahead in full confidence and resolutely implement all tasks, in a bid to make new strides in promoting long-term stability and security and high-quality development in Xizang in the new era, and strive to build a new modern socialist Xizang that is united, prosperous, culturally advanced, harmonious and beautiful.

Last but not least, my colleagues and I sincerely invite you all, and especially friends from the media, to visit Xizang, see it with your own eyes, tell Xizang's stories and share its voices. We hope you can present the happy lives of people of all ethnic groups and the tremendous transformation of the region under the leadership of the CPC in an objective, accurate and comprehensive manner. Through your efforts, we hope the world will learn more about Xizang, and that Xizang will connect with the world more swiftly. Thank you.

Zhou Jianshe:

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

National Business Daily:

Since the establishment of Xizang Autonomous Region 60 years ago, and especially over the past five years, Xizang has made great efforts to advance projects and initiatives for raising living standards. What tangible benefits have the people of all ethnic groups in Xizang gained from these efforts? Thank you.

Wang Junzheng:

Thank you for your question. I would like to invite Mr. Gama Cedain to answer.

Gama Cedain:

Thank you for your question. Since the establishment of Xizang Autonomous Region, the CPC Xizang Autonomous Regional Committee and the regional government have made great efforts to improve infrastructure in areas such as water and electricity supply, transportation, internet access and telecommunications. People of all ethnic groups have experienced tremendous transformations in their daily lives, going from carrying water in buckets to using tap water, from oil lamps to electric lights, from dirt roads to paved highways, and from felt tents to apartment buildings. Since the 14th Five-Year Plan period (2021-2025) in particular, we have resolutely implemented General Secretary Xi Jinping's important instructions on the work related to Xizang and the Party's policies on the governance of Xizang in the new era. We have focused on improving people's well-being and rallying the support of the people in Xizang's economic and social development. We have been continuously implementing the 10 major livelihood projects, delivering tangible benefits to the people. As a result, new progress has been made in ensuring people's access to child care, education, employment, medical services, elderly care, housing and social assistance.

During the 14th Five-Year Plan period, the central government and the regional government arranged 28 categories of projects concerning social development, with total planned investment of 24.65 billion yuan. To date, 23.678 billion yuan of that has been invested. We have made every effort to deliver tangible benefits that meet people's needs and expectations.

In the field of health care, the Healthy Xizang initiative has been comprehensively advanced. The total number of medical and health institutions has reached 7,231, with 21,488 hospital beds and 50,766 healthcare professionals. The capacity of basic medical and public health care services, such as clinical care, disease prevention and health maintenance, have been significantly improved at the primary level. Most recently, the Xizang Hospital of the West China Hospital of Sichuan University began operation, marking a major step toward the region's goal of ensuring that patients with serious illnesses can receive effective treatment without leaving Xizang.

In the field of education, Xizang has added 29 primary schools, 15 junior high schools and five senior high schools, and has renovated and expanded six secondary vocational schools. Construction has also begun on major projects such as Xigaze Vocational Technical College. These efforts continue to improve the allocation of education resources in response to population changes, ensuring children's access to quality education.

In the fields of culture and sports, a group of cultural and mass sports facilities, such as a culture, radio, television and art center and a smart broadcasting project, have been completed and put into operation. These developments have further enriched the people's cultural lives and fostered an atmosphere to enable the carrying out of mass fitness activities.

In the field of social security, Xizang has established 80 service centers for people living in extreme poverty, providing care for 5,825 individuals. It has also built 11 child welfare institutions, offering care for 3,236 orphans. All individuals covered by medical insurance can directly settle medical expenses incurred outside Xizang. In 2024, the per capita net income of people lifted out of poverty grew by more than 12.5% year on year.

In addition to these livelihood projects, a series of practical initiatives concerning people's well-being have also been implemented, including ensuring heating and oxygen supply in high-altitude areas, solutions to seasonal water shortages in high-altitude farming and pastoral regions, improved power supply reliability, and full coverage of fiber-optic broadband and 4G networks. These initiatives have enabled people of all ethnic groups in Xizang to bid farewell to previous hardships, such as difficulties accessing drinking water, electricity, transportation services and telecommunications, and they are now enjoying modern lives that are both comfortable and convenient. Today, Xizang has taken on a brand-new look, and people of all ethnic groups are embracing high-quality lives brought about by high-quality development. Thank you.

Jimu News:

Xizang Autonomous Region is currently promoting high-level opening up and expanding foreign exchanges and cooperation. What specific measures and plans is Xizang implementing to establish itself as a major global tourist destination? Thank you.

Wang Junzheng:

Thank you for your question. I'd like to invite Mr. Gama Cedain to provide an answer.

Gama Cedain:

Thank you for the question. Xizang has a long history and brilliant culture, with unique natural scenery and rich cultural resources. It is both a vital area for preserving the distinctive culture of the Chinese nation and a major world tourist destination, with unparalleled advantages for developing the cultural tourism industry. Since the 10th Xizang Autonomous Regional Congress of the Communist Party of China, we have prioritized supporting cultural tourism industry development, deepened institutional reforms, introduced a series of policy measures, and facilitated the implementation of numerous cultural tourism projects. The region's cultural tourism industry has demonstrated vigorous development momentum. In 2024, Xizang's cultural industry output value grew 23.8%, while the region welcomed 63.89 million domestic and international visitors, up 15.8%. Inbound tourist arrivals surged 188.2%. In the first half of this year, the region welcomed 32.1848 million domestic and international visitors, up 11.7% year on year.

In establishing Xizang as a key world tourism destination, we continually review our practices, learn from successful examples, and actively expand international communication and cooperation. We are exploring ways to shift Xizang's tourism sector from sightseeing to cultural tourism, from scenic tours to immersive leisure experiences, and from relying on ticket sales to developing a full tourism industry.

First, we prioritize strategic planning. We take a comprehensive approach, considering natural resources, cultural assets, regional advantages, industrial layout and supporting infrastructure. We are integrating the cultural and tourism industries with broader socioeconomic development. Moreover, we are pursuing high-standard, forward-looking planning for the sector.

Second, we promote integrated development. We are combining Xizang's stunning natural landscapes with its unique cultural heritage, tapping deeply into cultural resources, and strengthening the development of intangible cultural heritage sites. We've created a series of distinctive cultural tourism destinations, including Thangka villages, woodcarving villages and incense-producing counties. We've also launched a range of high-quality travel routes and tourism products that showcase the integration of culture and tourism.

Third, we uphold a people-centered approach. Focusing on the six key elements of "catering, lodging, transportation, sightseeing, shopping and entertainment," Xizang is upgrading its tourism products and supply models, building supporting facilities, improving scenic spots, enriching cultural tourism consumption scenarios, and optimizing regional transportation networks. These efforts aim to enable tourists to stay longer, enjoy themselves, and shop with ease.

Fourth, we pursue win-win cooperation. We are continuously improving the business environment, advancing intercity tourism coordination within the region, promoting interprovincial and international tourism cooperation, and aligning our tourism services with global standards.

Fifth, we ensure tourism benefits the public. The cultural tourism industry is a major industry closely tied to people's livelihoods. We strongly support grassroots cultural and art groups, encourage cultural organizations at all levels to take part in cultural tourism, and promote the production and sales of signature cultural and tourism products. These efforts aim to expand employment, raise incomes, and help people achieve prosperity.

We warmly welcome friends from home and abroad to visit Xizang. Come and see its beautiful scenery, experience its rich culture firsthand, and witness the development and changes of a new modern socialist Xizang. Thank you.

CCTV:

We know that this year marks the 60th anniversary of the founding of Xizang Autonomous Region, and also the final year of the 14th Five-Year Plan period. May I ask what kind of results Xizang Autonomous Region has delivered in terms of economic development, especially in achieving high-quality and sustainable development while ensuring rapid economic growth? Thank you.

Wang Junzheng:

Thanks for your question. I will answer it. Since the start of the 14th Five-Year Plan period, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, Xizang Autonomous Region has resolutely implemented General Secretary Xi Jinping's important instructions on Xizang and the Party's guidelines for governing Xizang in the new era. We have fully and accurately put into practice the new development philosophy, and have consistently prioritized the four major issues set out by General Secretary Xi Jinping for Xizang — stability, development, ecology and border-area consolidation — throughout our economic and social development. We are working hard to ensure both long-term stability and high-quality growth in Xizang. Further progress has been made in regional economic and social development and solid steps have been taken toward building a new modern socialist Xizang. Our achievements can be seen in the following areas.

First, the new development philosophy has taken root. Xizang made a historic leap from feudal serfdom to socialism, and this fundamental transformation has played an important role in the region's economic and social development. Through practice and in the course of advancing high-quality socioeconomic development in Xizang, people of all ethnic groups have come to deeply understand that development must be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The new development philosophy has gained broad support among the public. 

Second, the region's economy continues to grow. We have seen consistent improvements in the quality and efficiency of economic growth. Since the start of the 14th Five-Year Plan period, Xizang's main economic indicators have for years remained among the fastest-growing in the country.

Third, development momentum continues to strengthen. Major projects are progressing at an accelerated pace. During the 14th Five-Year Plan period, over 400 billion yuan in planned investment has been put in place. Key projects such as the Sichuan–Xizang Railway are being advanced. The Yarlung Zangbo River hydropower project, personally planned and promoted by General Secretary Xi Jinping, has officially started construction. The Lhasa–Nyingchi Railway and expressways from Lhasa to Shigatse and Nagqu have opened to traffic, while airports in Luntse, Burang and Dingri have begun operations. These major projects are playing an increasingly strong role in supporting economic development, ensuring that Xizang's economy is vibrant today and has great potential for the future.

Fourth, new progress has been made in industrial cultivation and development. Emerging industries such as clean energy, green industry, digital economy and cultural tourism are developing rapidly. In 2024, the region received more than 63.89 million visits by tourists from home and abroad, with the total tourism expenditure exceeding 74.6 billion yuan, representing increases of 15.8% and 14.5% year on year, respectively. The plateau light industry, which is closely linked to the lives of local people, has made breakthrough progress. Xizang's independently developed and produced highland cookware brands, Xuelianhua (Snow Lotus) and Gesanghua (Gesang Flower), are selling well. The total sales volume of Xuelianhua plateau cookers has exceeded 1.2 million units, with sales revenue reaching 500 million yuan.

Fifth, urban and rural areas have taken on a fresh look. Coordinated urban-rural development has brought about tremendous changes from yak-felt tents to modern new cities, with over 800 plateau-based beautiful and harmonious villages having been built. The percentage of permanent urban residents is close to 40%, and sanitary toilet coverage exceeds 80% in agricultural and pastoral areas, with the living environment continuously improving.

Sixth, reform and opening up have been comprehensively deepened. The business environment has been continuously optimized, with the items requiring administrative approval being reduced by nearly half and the availability rate of online government services reaching 100%. Nyingchi has achieved remarkable results in its pilot reform and opening up efforts. The comprehensive bonded zone in Lhasa has been put into operation and construction of land port in Xigaze has accelerated. As a result, Xizang's internal and external opening up has significantly enhanced.

The 15th Five-Year Plan period is a crucial transitional period for achieving a basic socialist modernization as well as for building a modern socialist new Xizang. We will earnestly summarize the experience and laws governing the development during the 14th Five-Year Plan period, adhere to the unity between top-level design and consulting the people for advice, and achieve science-based and democratic decision-making. Through these efforts, we will continuously deepen and improve the development concept for the 15th Five-Year Plan. We will formulate a science-based 15th Five-Year Plan to promote long-term stability and high-quality development in Xizang, with better quality and stronger resilience. We believe that with the continuous efforts of people of all ethnic groups in the region, we will definitely achieve the goal of successfully concluding the 14th Five-Year Plan and making a good start to the 15th Five-Year Plan. Thank you.

Kyodo News:

This year marks the 60th anniversary of the establishment of Xizang Autonomous Region. Does China have any plans to hold commemorative activities? If so, will foreign media be able to attend? Thank you.

Wang Junzheng:

Thank you for your questions. I'd like to invite Mr. Gama Cedain to answer.

Gama Cedain:

Thank you for the questions. The establishment of Xizang Autonomous Region constitutes a great and epoch-making turning point in its historical development, and holds a particularly important position in the historical process of China's revolution and construction. The CPC Central Committee attaches great importance to celebrating the 60th anniversary of the establishment of Xizang Autonomous Region. A central delegation will be sent there to attend the celebration conference, visit exhibitions, watch cultural performances, and pay visits. Other groups of the delegation will visit cities and prefectures across Xizang to conduct celebrations and extend greetings. At present, the preparations are progressing smoothly. The main activities are as follows:

First, we have been undertaking meticulous planning. Guided by the principles of "ensuring a grand and warm, pragmatic and simple, and secure celebration," and focusing on fostering a strong sense of community for the Chinese nation and promoting the building of a community for the Chinese nation, all celebration activities for the 60th anniversary of the establishment of Xizang Autonomous Region are advancing in an orderly manner according to schedule.

Second, we have been pooling strengths and efforts. Through a series of activities celebrating the 60th anniversary of the establishment of Xizang Autonomous Region, we will fully demonstrate the great importance attached by the CPC Central Committee with Comrade Xi Jinping at its core to the work in Xizang and its cordial care for people of all ethnic groups there. We will also showcase the great practice and historic achievements of the CPC's strategy for governing Xizang in the new era, highlight the tremendous advantages of the socialism with Chinese characteristics, further strengthen the confidence and determination of the people of all ethnic groups in the region to bear in mind the Party's care and follow the instructions and guidance of the Party, and pool strong forces to build a modern socialist new Xizang.

Third, we have been advancing with gratitude. We have launched extensive thematic promotional and educational activities across the region. These include grassroots lectures, cultural events, artistic performances, and civilized practice activities. These activities are designed to enhance public engagement, enrich personal experiences, and strengthen the sense of happiness among the people. , They highlight the main themes of our era: the strength of the CPC, the superiority of socialism, the achievements of reform and opening up, the greatness of our motherland, and the unity of all ethnic groups. These efforts are meant to inspire and encourage the people of all ethnic groups in the region to embark on a new journey and make achievements in the new era, striving in unity to build a great country and move toward national rejuvenation on all fronts through Chinese modernization. We will ensure that large-scale events in Xizang become a grand festival for people of all ethnic groups in the region.

Fourth, we advocate that frugality be a priority. We have strictly implemented the guiding principles of the central Party leadership's eight-point decision on improving conduct, practicing frugality and opposing wasteful spending. We will present the vibe of our times and the characteristics of Xizang, so that people of all ethnic groups in the region can feel the care and support from the CPC Central Committee.

I would like to take the opportunity here to add that since the beginning of this year, Xizang Autonomous Region has invited foreign media journalists from 25 countries in 10 batches to visit Xizang. Thank you.

Macau Monthly:

It has been reported that in Xizang, the Tibetan language has been removed from the list of subjects for the college entrance examination (gaokao), and that schools no longer regard the Tibetan language as a main subject. Could you provide some more details in this respect? Thank you.

Wang Junzheng:

I'd like to invite Mr. Gama Cedain to answer your question.

Gama Cedain:

Thank you for your question. Since 2014, China's education authorities have implemented a comprehensive reform of the national college entrance examination across the country. To date, 29 provinces, autonomous regions and municipalities have carried out this comprehensive reform. Xizang initiated this reform in 2024, with the primary goal of addressing the flawed societal emphasis on test scores and admission rates and to genuinely promote students' holistic development and social equity.

The primary Tibetan language programs offered at colleges and universities include Tibetan language and literature, Tibetan medicine, and Tibetan pharmacy. However, several challenges persist, such as relatively limited enrollment quotas, relatively narrow channels for further education, a narrow selection of disciplines and majors, and constrained employment opportunities for graduates. After relevant policy adjustments, candidates from Xizang and those from other provinces and autonomous regions now take the same test paper for the college entrance examination. The unified subjects of the examination include Chinese, mathematics and a foreign language, with options such as English, Russian, Japanese, French, German and Spanish. The selective subjects comprise politics, history, geography, physics, chemistry and biology. Candidates from Xizang can still apply for Tibetan language teaching majors in universities. The Tibetan language subject examination will be organized by Xizang Autonomous Region, and those who pass the examination can apply. This helps students of all ethnic groups enjoy more equitable high-quality education, helps ethnic minorities improve their ability to learn knowledge and comprehensively enhance their scientific and cultural quality, and provides more opportunities for students to develop their talents, and more options for students to enter higher education institutions.

The adjustments to the college entrance examination subjects in Xizang does not mean the cancellation of Tibetan language courses. The Tibetan language remains a compulsory subject in primary and secondary schools in Xizang as well as prefectures and counties with large Tibetan populations in other provinces. The Tibetan language curriculum in the basic education stage remains unchanged and the number of classes has not been reduced. Tibetan language is as strictly required as other subjects in terms of implementing the curriculum plan, standardizing teaching implementation, and optimizing teaching methods, and is included in the academic proficiency tests and evaluations for junior high school and senior high school students. There are sufficient Tibetan language teachers in schools of all levels and types in Xizang Autonomous Region as well as prefectures and counties with large Tibetan populations in other provinces. Currently, there are more than 30,000 bilingual teachers across the entire Xizang region, and the number of full-time Tibetan language teachers has increased from 5,800 in 2018 to nearly 8,300. Normal universities such as Qinghai Normal University, as well as non-normal universities like Minzu University of China and Xizang University, all offer Tibetan language programs. Every year, a certain number of graduates majoring in Tibetan language join the teaching staff. Thank you.

Phoenix TV:

Recently, the 14th Dalai Lama once again made claims regarding his reincarnation. What is your comment?

Wang Junzheng:

Thank you for your question. I would like to invite Mr. Gama Cedain to answer this question.

Gama Cedain:

The reincarnation of living Buddhas has strict religious rituals and historical conventions. The historical legitimacy of the title of Dalai Lama originates from the central government. On the issue of the Dalai Lama's reincarnation, the central government indisputably has the final authority. This is a creed adhered to by the vast number of religious believers and an important part of the religious rituals and historical conventions for the Dalai Lama's reincarnation. The reincarnation has never been decided by the reincarnated individual alone. The reincarnation of the Dalai Lama must adhere to the principle of searching within the Chinese territory, drawing lots from the golden urn, and receiving approval from the central government, follow religious rituals and historical conventions, and be handled in accordance with national laws and regulations. Thank you.

China News Service:

The Qinghai-Tibet Plateau is known as Asia's "water tower" and a "stabilizer" of global climate security. What successful practices has Xizang undertaken that can be promoted globally in creating an ecological civilization highland in China and even the world and promoting green development? Thank you.

Wang Junzheng:

Thank you for your question. I'll answer this one. A good ecological environment is the foundation for human existence. We always regard the protection of the ecological environment of the Qinghai-Tibet Plateau as the greatest value, the greatest responsibility and the greatest potential. We practice Xi Jinping Thought on Ecological Civilization, coordinate the relationship between development and protection, and focus on the major issue of ecology clearly defined by the general secretary for Xizang. We continue to prioritize the ecology and put ecological protection first. The 10th Party congress of the autonomous region held in 2021 put forward the goal of striving to build a national ecological civilization highland. We have been working hard around this goal, constantly strengthening the national ecological security barrier, and unswervingly safeguarding all living creatures, plants, rivers and mountains of Xizang.

First, the strictest ecological protection system is being implemented in accordance with the law. We have strictly enforced the law on ecological protection of the Qinghai-Tibet Plateau, issued regulations on the construction of a national ecological civilization highland in the autonomous region, and strictly implemented the ecological environment zoning control measures. We adhere to the principles of "zero approvals" and "zero introduction" for energy-intensive projects and enterprises with high emissions and backward production capacity, resolutely prohibit polluting projects from entering the plateau, actively promote the construction of national parks, and further advance the greening project of mountains on both sides of the Lhasa River, making Lhasa's mountains greener, its sky bluer and its water clearer. The area of land listed under the ecological conservation red lines accounts for more than 50% of the region's total area, and the area of nature reserves at all levels accounts for 37.95%. Xizang has become the first provincial-level region in the country to establish national ecological civilization demonstration zones at all municipal levels.

Second, we are unswervingly adhering to the concept of green development. In 2024, the total number of green foods, organic agricultural products, geographical indications of agricultural products, and national famous, special, high-quality and new agricultural products in the region reached 404. Green and organic have become bywords for agricultural and livestock products from Xizang. The transformation of the green industry has been accelerating. From 2021 to 2024, 17 national-level green factories and one national-level green industrial park were established, and the plateau's distinctive industries continued to advance in green development, value creation, and innovation.

Third, we are further promoting low-carbon development. Relying on world-class hydropower, wind power and solar energy resources, we adhere to the principle of knowing what to do and what not to do, and have accelerated the construction of clean energy bases, actively contributing Xizang's strength to achieving the goals of peak carbon emissions and carbon neutrality. In 2024, the proportion of clean energy power generation in Xizang reached more than 99%, basically achieving full clean power supply, making it the region with the highest proportion of clean energy power generation in the country. The proportion of non-fossil energy consumption reached more than 55%, ranking among the top in the country. Per capita carbon emissions are only one-third of the national average.

Fourth, we are promoting ecological benefits for the people. Ecological compensation systems have been continuously established, optimized and improved in various fields. From 2021 to 2024, a total of 13.68 billion yuan were allocated for grassland ecological subsidies and reward funds, and 2,262,200 farmers and herders enjoyed the grassland ecological subsidies and reward policies; a total of 5,147 million yuan of central government funds for forest ecological benefit compensation had been implemented, and 103,000 people were engaged in the management and protection of public forests full-time or part-time; and the region provided an average of 440,000 ecological jobs annually. In the process of acting on the concept that lucid waters and lush mountains are invaluable assets, the public has witnessed the truth and strength of Xi Jinping Thought on Ecological Civilization, while those safeguarding the environment have also reaped the benefits of conservation. 

At present, Xizang is still one of the regions with the best ecological environment in the world. This is the result of our firm and resolute implementation of Xi Jinping Thought on Ecological Civilization. We will firmly implement the concept that lucid waters and lush mountains are invaluable assets, as are snow-covered lands, persevere as guardians to make the Qinghai-Tibet Plateau a common ecological wealth of all humankind, and make new and greater contributions to building a community of all life on the Earth. Thank you.

Zhou Jianshe:

Please continue with your questions.

Legal Daily:

The system of regional ethnic autonomy has been established as a fundamental policy for addressing ethnic issues in China. Over the 60 years since the founding of Xizang Autonomous Region, what specific practices of the regional ethnic autonomy system have been implemented in Xizang? And could you illustrate how with a few examples? Thank you.

Wang Junzheng:

Thank you for your questions. I would like to invite Mr. Gama Cedain to answer these questions.

Gama Cedain:

Thank you for your questions. In September 1965, Xizang Autonomous Region was established, and the system of regional ethnic autonomy was implemented, granting all ethnic groups equal rights to participate in the management of state affairs and to govern their own regional and ethnic matters autonomously, achieving a profound transformation from "casting off oppression" to "being masters of their own affairs." Over the past 60 years, the system of regional ethnic autonomy has led to significant development in Xizang's political, economic and cultural sectors, establishing the region as an exemplary case of successful governance in China's ethnic border areas. Let me provide an overview from several perspectives.

First, ethnic minorities' right to participate in governance are guaranteed by law. According to the Law of the People's Republic of China on Regional Ethnic Autonomy, the offices of chairperson or vice chairpersons of the Standing Committee of the People's Congress of Xizang Autonomous Region are occupied by Tibetans, as is the office of the governor of Xizang Autonomous Region. Since the founding of Xizang Autonomous Region, all the chairpersons of the standing committee of the regional people's congress and all the chairpersons of the regional people's government have been ethnic Tibetans. At present, the 12th People's Congress of Xizang Autonomous Region has a total of 428 deputies, with 280 deputies from Tibetan and other ethnic minorities, accounting for 65.42%.

Second, the power of flexible implementation is exercised in accordance with the law. According to the Law of the People's Republic of China on Regional Ethnic Autonomy, if resolutions, decisions, orders or instructions from higher-level state organ are incompatible with the actual conditions of an ethnic autonomous area, the autonomous organ may seek approval from the said higher-level state organ to exercise flexible implementation or suspend implementation. By the end of 2024, the People's Congress of Xizang Autonomous Region and its standing committee had formulated and implemented 171 local regulations and regulatory resolutions and decisions, of which 136 remain in effect and 35 have been repealed.

Third, the equal use of spoken and written languages is guaranteed by law. Both the Constitution of the People's Republic of China and the Law on Regional Ethnic Autonomy explicitly stipulate that all ethnic groups have the freedom to use and develop their own spoken and written languages. Resolutions and regulations adopted by the People's Congress of Xizang Autonomous Region, along with circulated documents and public notices issued by governments and departments at all levels in Xizang, are published in both the national common language and the Tibetan language.

Fourth, the equal rights of all ethnic groups are safeguarded by law. The Law of the People's Republic of China on Regional Ethnic Autonomy stipulates that the autonomous organs of an ethnic autonomous area shall guarantee equal rights for various ethnic groups in the area and help other ethnic minorities living in compact communities in the area establish appropriate autonomous areas or ethnic townships. Xizang Autonomous Region has established nine ethnic townships across the cities of Shannan, Nyingchi and Chamdo, including five for the Monba ethnic group, three for the Lhoba ethnic group, and one for the Naxi ethnic group. These efforts effectively safeguard the political rights of people of all ethnic groups in Xizang to equally participate in the management of local affairs. Thank you.

Zhou Jianshe:

Today's press conference is hereby concluded. Thank you to our two speakers and friends from the media. Goodbye.

Translated and edited by Cui Can, Zhu Bochen, Liu Jianing, Zhang Tingting, Yang Xi, You Jiaxin, Wang Qian, Yuan Fang, Zhang Junmian, Gong Yingchun, Wang Wei, Huang Shan, Li Huiru, David Ball and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Ms. Guo Yanhong, vice minister of the National Health Commission (NHC)

Ms. Guo Yang, director general of the Department of Social Security of the Ministry of Finance (MOF)

Mr. Wang Haidong, director general of the Department of Population Surveillance and Family Development of the NHC

Ms. Liu Juan, deputy director general of the Department of Benefits Security of the National Healthcare Security Administration (NHSA)

Ms. Liu Hongmei, director general of the Department of Female Employees of the All-China Federation of Trade Unions (ACFTU)

Chairperson:

Mr. Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

July 30, 2025

Zhou Jianshe:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). The General Office of the Communist Party of China (CPC) Central Committee and the General Office of the State Council recently released a child care subsidy system implementation plan. To help introduce the program, today we have invited Ms. Guo Yanhong, vice minister of the National Health Commission (NHC), to brief you on China's child care subsidy system and childbirth support measures, and to answer your questions.

Also attending today's press conference are: Ms. Guo Yang, director general of the Department of Social Security of the Ministry of Finance (MOF); Mr. Wang Haidong, director general of the Department of Population Surveillance and Family Development of the NHC; Ms. Liu Juan, deputy director general of the Department of Benefits Security of the National Healthcare Security Administration (NHSA); and Ms. Liu Hongmei, director general of the Department of Female Employees of the All-China Federation of Trade Unions (ACFTU).

Now, I'll give the floor to Ms. Guo for her introduction.

Guo Yanhong:

Ladies and gentlemen, good afternoon. Recently, the General Office of the CPC Central Committee and the General Office of the State Council released a plan for the implementation of the child care subsidy system. First, I will briefly introduce the situation regarding this program.

Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has made a series of major strategic plans on population development. The Third Plenary Session of the 20th CPC Central Committee made special arrangements to improve the systems for supporting population development and providing related services. The priorities included refining the policy system and incentive mechanisms for boosting the birth rate, building a childbirth-friendly society, and introducing a system of childbirth subsidies. In addition, the 2025 Government Work Report clearly proposed providing child care subsidies.

Faithfully implementing the decisions and plans of the CPC Central Committee and the State Council, the NHC and the MOF conducted extensive research and in-depth discussions, summarized the experiences of local child care subsidy programs, fully solicited opinions from all parties, comprehensively considered China's national conditions, development stage and fiscal capacity, as well as international practices, and finally proposed a plan for the child care subsidy system. Recently, the General Office of the CPC Central Committee and the General Office of the State Council have released a child care subsidy system implementation plan. 

The child care subsidy system is a brand new public policy that is important to millions of families. According to the implementation plan, the child care subsidy system takes effect from Jan. 1, 2025, offering subsidies for all children under the age of 3 by that date who are in compliance with relevant laws and regulations, until they reach the age of 3. The child care subsidy is issued annually, with a standard of 3,600 yuan per year for each child. It can be applied for online through the child care subsidy information management system, by one of the child's parents or guardians, while offline channels are also available. The subsidy will be transferred to the bank card or other financial account of the applicant or child. The subsidy, when issued in line with relevant regulations, will be exempt from individual income tax and will not be counted as household or individual income when determining the assistance recipients, such as those receiving subsistence allowances or classified as living in extreme hardship.

The child care subsidy marks the first large-scale, universal and direct cash assistance program aimed at enhancing public well-being ever implemented nationwide since the founding of the People's Republic of China. It is a major measure to benefit the people and improve their lives. The implementation of the child care subsidy system reflects the following four principles:

First, the system aims to improve people's livelihoods and benefit the people. The child care subsidy focuses on issues people care about most and that concern their most immediate and most realistic interests. It delivers real and tangible benefits to help reduce the child care burden of families and is a concrete practice of implementing the people-centered concept and investing in people. More efforts should be made to ensure and improve people's livelihoods through development, allowing people a greater sense of gain.

Second, the system is being implemented in a coordinated way to ensure fairness. The child care subsidy achieves comprehensive coverage of family support under the three-child policy, ensuring that all eligible children can equally benefit from the program, regardless of whether they live in urban or rural areas, their ethnicity, region, or if they are the first, second or third child in the family.

Third, the system is being implemented within our capacity. As a major developing country, China is still in the primary stage of socialism. The child care subsidy system takes into account China's population development and socioeconomic development, setting a reasonable scope and standard for the subsidy to ensure financial affordability and policy sustainability. After all, in order to make steady and sustained progress, one must do everything within their capacity.

Fourth, the system must be reliable, well-regulated, easy and practicable. We have reduced the documents required for child care subsidy applications as much as possible, and streamlined the application process to improve efficiency and help the public. Through a unified national information system, the subsidy can be applied for online by both registered local residents and migrant population, with the need for only one application process. Of course, while promoting the main online application channel, we also offer in-person services. At the same time, we are conducting strict eligibility reviews and strengthening performance management to ensure fund safety, bringing tangible benefits to the people.

Members of the media, ladies and gentlemen, in October last year, the General Office of the State Council issued 13 targeted measures across four areas to improve the policy system to support childbirth in China and promote the construction of a childbirth-friendly society. All localities and relevant authorities have focused on promoting child-rearing support and have made positive progress. Looking ahead, we will work with relevant departments to implement a package of new birth support policies to achieve practical results and better address the concerns and expectations of the public regarding child care. Today, we are holding this press conference together with colleagues from the MOF, the NHSA and the ACFTU to brief you on the child care subsidy system and childbirth support measures, and to answer your questions.

Thank you.

Zhou Jianshe:

Thank you, Ms. Guo, for your introduction. The floor is now open for questions. Please identify your news organization before asking your question.

Farmers' Daily:

The child care subsidy targets children under 3 years old. What was the reasoning behind this decision? Can children born before 2025 receive the subsidy? Also, who applies for the subsidy? Thank you.

Guo Yanhong:

Thank you for your questions. I would like to invite Mr. Wang to answer your questions.

Wang Haidong:

Thank you for your questions. The main reason we focus on children under 3 is that the first three years represent a critical stage in child development and an important period when families especially need support in child-rearing. Providing child care support to families with children under 3 is also a common policy tool used globally to encourage childbirth. The subsidy standard was set based on our development stage and fiscal capacity, covering the child-rearing period for children under 3 years old.

Regarding whether children born before 2025 are eligible, the implementation plan states that subsidies will be provided starting Jan. 1, 2025, to all children under 3 who were born in compliance with laws and regulations, continuing until they turn 3. This includes children born before Jan. 1, 2025, who will receive subsidies calculated based on their remaining eligible months until age 3. In other words, any child born after Jan. 1, 2022, who meets the criteria can receive the child care subsidy. To make it convenient for people to apply, we have also created a reference chart showing subsidy amounts for children born in each month from 2022 to 2024. The chart has been posted online so parents can easily see exactly how much each child is eligible for.

Regarding who submits the application: Child care subsidies are applied for on a household basis. Each family must designate one applicant, who should be one of the child's parents or, in special circumstances, another legal guardian.

Meanwhile, we will guide localities to integrate policy publicity and guidance with maternal and child health care, hospital births, infant and child vaccination, health management, household registration and social security card applications. This will raise policy awareness and ensure that all eligible infants and children receive the child care subsidies to which they are entitled. Thank you. Thank you.

Phoenix TV:

We noticed that this child care subsidy program sets the amount at 3,600 yuan per child per year. Could you explain how this standard was determined and what considerations were behind it? What are the expected goals you hope to achieve? Thank you.

Guo Yanhong:

Thank you for your questions. I will answer them. At present, the national child care subsidy standard is set at 3,600 yuan per child per year until the child reaches 3 years old. The subsidy standard was set based on factors such as our country's current development stage, the cost of raising children for residents, fiscal capacity and international practices. The standard follows the principle of doing everything within our means.

The child care subsidy system is an important policy for meeting people's basic living needs, affecting millions of Chinese families. Internationally, many countries have adopted similar policies to support childbearing. Within China, some localities have explored and implemented different forms of child care subsidies tailored to their local population and socioeconomic conditions, earning widespread public support. Based on international and domestic implementation experiences, China's implementation of the child care subsidy system is expected to produce three anticipated effects:

First, it will help reduce the burden of child-rearing on families. The child care subsidy system, as an economic policy supporting childbirth, can directly increase people's cash income through targeted distribution of fiscal funds. The child care subsidy will benefit tens of millions of families every year, providing basic support for family child-rearing, improving child care conditions, alleviating the economic pressure of raising children to a certain extent, and giving people better access to child care.

Second, it will create a childbirth-friendly social atmosphere. The child care subsidy is an incentive policy that strengthens support for childbirth and promotes a birth-friendly environment, setting a clear policy direction. Implementing the child care subsidy system will also work in coordination with related policies on child care services, education, employment, taxation and housing. This will continuously improve the overall childbirth policy framework, creating a more integrated and effective system and promoting the development of a childbirth-friendly society.

Third, it better ensures and improves people's livelihoods. The child care subsidy program is a public welfare policy that provides universal services, addresses basic needs and serves as a safety net for those most in need. With broad coverage and stable distribution, it represents an important way to invest in people. Its implementation further strengthens basic livelihood security, supports family development and closely aligns high-quality population development with high-quality living standards. This targeted approach delivers far-reaching benefits for the public. Additionally, it helps promote a virtuous cycle of livelihood improvement and economic development, adding new momentum to sustained healthy economic growth.

Given that this is a new system, we will conduct continuous in-depth research on the child care subsidy program, seek extensive public consultation, and monitor and evaluate its effectiveness to ensure continuous optimization. Thank you.

Bloomberg News:

I want to ask how China would assess the success of the measures being announced to increase the birth rate? And also, would it be possible in the future if the government might consider increasing the amount of subsidies and other assistance given to families if needed? Thank you.

Guo Yanhong:

Thank you for your questions. I would like to invite Mr. Wang to answer these questions.

Wang Haidong:

Thank you for your questions. As China's economy and society have developed, the country has transitioned from population growth to demographic decline, characterized by reduced birth rates, an aging population and regional demographic disparities. To adapt to these new demographic realities, China is accelerating improvements to its childbirth support policy system and continuously reducing the burdens of childbearing, child-rearing, and education on families. The country is promoting a childbirth-friendly society and striving to maintain moderate fertility rates and population levels. This approach supports Chinese modernization through high-quality population development.

Population change is a gradual process influenced by many factors. The effectiveness of childbirth support measures, including child care subsidies, requires long-term observation. We will continuously monitor and comprehensively evaluate these programs throughout their implementation. International experience demonstrates that effective childbirth support requires coordinated policies across multiple dimensions to establish comprehensive support systems. Moving forward, we will work with relevant departments to advance research on key population development challenges, enhance population monitoring systems, and strengthen policy effectiveness assessments. At the same time, we will enhance our policy reserves while continuously improving the childbirth support policy system to promote high-quality population development. Thank you.

China Financial and Economic News:

Child care subsidies are a major public welfare policy that requires stable fiscal investment. What measures will the Ministry of Finance take to ensure the subsidy system is properly implemented? Thank you.

Guo Yang:

Thanks for your question. I will answer it. Child care subsidies will benefit many families. Ensuring these funds reach people accurately, promptly and in full, and truly implementing this beneficial policy well, is a matter of great concern to everyone. The Ministry of Finance, in accordance with its responsibilities, is rolling out a series of measures to support the effective implementation of the child care subsidy system, focusing on three key areas:

First, we are establishing a transfer payment program. According to the child care subsidy system implementation plan issued by the General Office of the CPC Central Committee and the General Office of the State Council, the central government will establish a shared fiscal responsibility transfer payment program titled "Child Care Subsidy Fund" with an initial budget of approximately 90 billion yuan this year. To fund national basic subsidies, the central government will provide proportional subsidies to local governments. In general, the central government will bear about 90% of the total cost. This demonstrates both the central government's firm commitment to this initiative and its substantial support for local governments while reinforcing local administrative responsibilities.

Second, we are strengthening fund management and supervision. The implementation plan requires that the child care subsidy system operate safely and compliantly while remaining simple and accessible, with strict eligibility reviews, standardized distribution, improved efficiency, secure funding, and active public oversight. Soon, the Ministry of Finance will work with the NHC to release management guidelines for child care subsidy funds. These measures will clarify specific requirements for fund allocation, use, management, and supervision. We will also refine and standardize the fund allocation process and clearly define responsibilities at all levels. The two departments will implement comprehensive budget and performance oversight for the subsidy funds, including performance monitoring and evaluation mechanisms, to ensure effective management and use of fiscal resources.

Third, we are clarifying relevant preferential policies. The implementation plan stipulates that child care subsidies issued in accordance with system regulations will be exempt from individual income tax. Additionally, these subsidies will not count as household or individual income when determining eligibility for social assistance programs like subsistence allowances and programs for people living in extreme hardship. The government previously introduced a special additional individual income tax deduction for child care expenses for children under 3, allowing deductions of 2,000 yuan per child per month. Together with the child care subsidy system, these policies will collectively reduce the financial burden of childbearing and child-rearing for families.

At present, finance departments at all levels are working hard with health authorities on funding calculations and allocations. The child care subsidy system is a major decision and arrangement by the CPC Central Committee and the State Council in response to public expectations. We will collaborate with health departments to oversee the entire process from application to distribution to ensure that every subsidy reaches its intended recipients. Thank you.

Dazhong Daily:

Since the announcement of the child care subsidy program, many parents of infants and toddlers have shown keen interest in subsidy distribution. When can child care subsidies be applied for? How can they be applied for? What convenient measures are available for the public? Thank you.

Guo Yanhong:

Thank you for your questions. I would like to invite Mr. Wang to answer these.

Wang Haidong:

Thank you for your questions. People are indeed very interested in when the subsidies can be applied for. We are currently working with localities to advance the preparations in accordance with the requirements of the implementation plan for the childcare subsidy program. We are currently working with relevant departments to issue documents covering childcare subsidy system management regulations and fund management methods. Localities also need to formulate specific implementation plans based on their actual conditions. The state and localities have already completed construction of the childcare subsidy information management system and are conducting full-process testing. Local governments are organizing and equipping their workforces to train grassroots staff. According to the work plan, childcare subsidy applications will be gradually rolled out across China in late August, with full access expected by Aug. 31.

In terms of the application process, I'd like to introduce the following points: The subsidy can be applied for online through a unified national information system, allowing people to submit applications without leaving their homes. At the same time, offline channels and in-person services will also be available. Those who are unable to apply online due to special circumstances can do so by visiting the township or subdistrict office where the infant is registered. Applicants can choose the appropriate application channel based on their actual situation.

In addition, measures have been introduced to make the application process easier. First, we have worked to simplify the application materials as much as possible. We have established an information sharing mechanism with departments such as the Ministry of Public Security, Ministry of Civil Affairs, and Ministry of Human Resources and Social Security, achieving big data comparison and verification. On this basis, we adhere to the principles of minimizing necessary procedures, allowing the data to do the work, and allowing everyone to submit as few materials as necessary. Notably, applicants only need to submit essential materials that verify the infant's identity and caregiving relationship — such as birth certificate and household register. Second, we have worked to broaden the application channels. A wide range of application channels will be available, including provincial-level government service platforms and third-party platforms such as Alipay and WeChat. These channels are all commonly used and can be conveniently accessed online via smartphone. People can use multiple channels to conveniently handle applications online via cellphone, achieving easy access to childcare subsidies without leaving home. 

We will continuously improve work processes, optimize information systems and provide better services, striving to increase people's satisfaction. Thank you.

China News Service:

In addition to the childcare subsidy program, what other measures have the MOF taken in recent years to build a birth support policy system? Thank you.

Guo Yang:

Thank you for your question. I will answer this one. In recent years, in accordance with the relevant decisions and deployments of the CPC Central Committee and the State Council, the MOF has actively played its functional role in formulating and carrying out a series of birth support policy measures with relevant departments, with a focus on the entire childbirth chain and the full life cycle, to strengthen support in births, parenting and education, medical care and housing, striving to foster a social environment that is friendly to having children.

First, we have worked to improve services to ensure good prenatal and postnatal care. Through basic public health service subsidy funds, we support providing health management, postpartum visits and newborn care guidance for expectant and new mothers, and providing services such as supplementary taking of folic acid and examinations for healthy childbirth for rural women, with 5.52 billion yuan allocated for 2025. Through birth defect intervention and assistance project funds, we support the implementation of birth defect detection, rescue , and prevention publicity, with 370 million yuan allocated for 2025.

Second, we have supported the development of maternal and child health care. Through major public health service subsidy funds, we support free immunization programs for eligible children and the prevention of mother-to-child transmission of diseases such as hepatitis B, with 5.22 billion yuan allocated for 2025. Through medical service and security capacity enhancement subsidy funds, we support the improvement of pediatric medical service capabilities, critical maternal and newborn diagnosis and treatment capabilities, and strengthen the training of urgently needed personnel such as pediatricians and grassroots obstetricians, with 1.11 billion yuan allocated for 2025. We support improving basic medical security system, with the per capita financial subsidy standard for urban and rural residents' medical insurance increased to 700 yuan in 2025.

Third, we have worked to establish an inclusive childcare service system that benefits all families. Since 2023, we have worked with the NHC to implement a demonstration project to enhance inclusive childcare services for universal benefit, with a total of 3 billion yuan spent by the central government. At the same time, through employment subsidy funds, we support local governments in conducting vocational skills training for infant and toddler care service personnel, including kindergarten workers and childcare workers. We provide tax and fee incentives in terms of income tax, value-added tax and deed tax for working parents as well as their employers and community childcare service institutions.

In addition, the MOF also supports the expansion and improvement of educational resources through relevant transfer payment funds in the field of education; and supports local governments in supporting eligible families with multiple children to purchase homes through subsidies for urban affordable housing projects.

Going forward, the MOF will continue to implement investment policies, strengthen funding guarantees, cooperate with relevant departments to enhance the policy system for birth support, and foster a social atmosphere that is friendly to having children. Thank you.

CCTV:

As Ms. Guo just mentioned, in October last year, the General Office of the State Council issued measures on accelerating the improvement of the birth support policy system and promoting the establishment of a birth-friendly society. What progress has been made in developing the current birth support policy system? Thank you.

Guo Yanhong:

Thank you for your question. I'll answer this. Last year, the General Office of the State Council issued measures on accelerating the improvement of the birth support policy system and promoting the establishment of a birth-friendly society, which put forward a package of 13 targeted birth support measures in four key areas. The NHC, together with relevant departments, has earnestly implemented these measures, accelerating the effective rollout of the improved birth support policy system and making positive progress.

In terms of financial support, China has introduced multiple measures to reduce the costs of childbirth, childcare and education for families. Expenses for the care of children under 3 years old have been included in the special additional deduction for individual income tax, with the deduction standard raised to 2,000 yuan per child per month. The level of medical expense coverage for childbirth has been improved and the coverage of maternity insurance has been expanded, with maternity benefits now directly given to individuals. These measures have been widely welcomed by the public. In terms of leave support, the maternity leave system has been further improved. Most provinces, autonomous regions and municipalities have extended maternity leave to 158 days or more. In addition, approximately 15 days of paternity leave for spouses and five to 20 days of parental childcare leave have been introduced. In terms of childcare services, the childcare service system has been further improved, with a particular focus on expanding the supply of inclusive childcare services. Efforts have been made to promote integrated childcare and early childhood education services, and to develop various forms of childcare services, such as community-based childcare and employer-provided childcare. By the end of last year, the number of daycare slots nationwide had reached 4.08 per 1,000 people. In terms of maternal and child health services, China has promoted basic medical and health care services throughout the entire childbirth process, expanded the coverage of labor analgesia services, and continued implementing the five key systems for maternal and infant safety. By the end of last year, the country’s maternal mortality rate had declined to 14.3 per 100,000 live births, and the infant mortality rate had dropped to 4.0 per 1,000 live births. These are the best levels ever recorded for China's core maternal and child health indicators, and the World Health Organization (WHO) has recognized China as one of the 10 best-performing countries in this area. To expand pediatric medical services, all secondary and tertiary public general hospitals across the country are required to offer pediatric care to better meet the health care needs of children. In terms of education support, local governments have expanded the supply of high-quality educational resources, thoroughly implemented the "double reduction" policy aimed at effectively easing the excessive homework and off-campus tutoring burden on students in compulsory education, and promoted the balanced development of compulsory education. Recently, an executive meeting of the State Council made arrangements to gradually introduce free preschool education to help ease the financial burden of education on families. Many local governments have introduced policies that allow children from the same family to attend the same school, making it more convenient for parents to drop off and pick up their children. In terms of housing support, local authorities have expanded the supply of affordable rental housing through various channels to help address housing difficulties. In some areas, the maximum housing provident fund loan limit has been raised for families with multiple children. These measures, taken together, have produced tangible results that the public can clearly feel and benefit from.

Next, the NHC will work with relevant departments to ensure the effective implementation of existing policies. At the same time, it will strengthen forward-looking research and policy reserves, continuously enrich and improve the toolbox of birth support policies, further ease the burden on families related to childbirth, parenting and education, and promote the development of a birth-friendly society. Thank you.

Jimu News:

We have noticed that the ACFTU has provided subsidies for the past three years to family-friendly employers that offer childcare services. What role has the trade union played in building the birth support policy system? And what has been the outcome? Thank you.

Liu Hongmei:

Thank you for your questions. The ACFTU has resolutely implemented the major decisions and plans of the CPC Central Committee and always adhered to the worker-centered approach, actively participating in the development of a birth support policy system.

First, we have strengthened the protection system for safeguarding female employees' maternity-related rights and interests. This year, the Standing Committee of the National People's Congress (NPC) conducted a compliance inspection on the implementation of the Trade Union Law, which included the protection of female employees' rights and interests in areas such as employment, rest and leave, and workplace health and safety. In 2021, the ACFTU participated in a special law enforcement campaign on protecting female employees' rights, which was led by the Ministry of Human Resources and Social Security (MOHRSS) in collaboration with the NHC and the NHSA. The campaign focused on inspecting 86,000 employers across the country to assess their protection of female workers' rights, including maternity leave. At the same time, the ACFTU enhanced its involvement in the policymaking process. To date, several provinces and autonomous regions in China have enacted local legislation on the labor protection of female workers, including more detailed provisions on maternity leave and protection during the "four phases" (menstruation, pregnancy, childbirth and breastfeeding). In recent years, an extensive legal awareness campaign under the theme “Caring for Women Workers — The Law Is by Your Side” has been carried out across the country, with a focus on promoting equal employment and maternity protection. More than 20 million people have participated in the campaign.

Second, efforts have been made to address the challenges of childcare and support employers in providing childcare services and cultivating relevant talent. From 2022 to 2024, the ACFTU, in collaboration with the NHC, organized the nationwide selection of caring employers providing childcare services for three consecutive years, allocating a total of 22.5 million yuan in subsidies to 300 selected employers. This year, the ACFTU made special arrangements to further promote employer-provided childcare services, adopting a targeted and localized approach. It has strongly supported qualified employers, including government agencies, public institutions, state-owned enterprises and industrial parks, in setting up childcare facilities. In terms of funding support, it was clarified that the necessary expenditures for offering affordable childcare services to the children of employees may be covered by staff welfare funds in accordance with relevant regulations, and trade union funds of the employers may also be used as supplementary support. In terms of the development of childcare services talent, in 2024, the ACFTU, together with the NHC, the All-China Women’s Federation (ACWF), and other relevant organizations, held a vocational skills competition for childcare services. The 2025 National Vocational Skills Competition for Employee Childcare Services will be held in late October to help improve professional skills and service standards across the sector.

Third, we have created a supportive environment by building family-friendly workplaces. The ACFTU, in conjunction with the MOHRSS, the NHC and three other departments, is promoting the implementation of "six friendly standards" for employers. These standards include supportive attitudes, career development, maternity protection, child care support, work arrangements and occupational health. The initiative has released 100 model cases of family-friendly workplaces. At the same time, we encourage trade unions at all levels to provide child care services for employees, organize employee social networking activities, establish rest and nursing rooms for female employees, and advance the development of family-friendly workplaces.

Next, the ACFTU will strengthen cooperation with the NHC and other relevant departments to continue promoting employer-provided child care services and the protection of female employees' rights and interests. The federation will also expand service coverage, improve service quality, and support the development of policies to boost the birth rate. Thank you.

Cover News:

In recent years, the NHSA has actively stepped up maternity support, raised coverage levels for maternity-related medical expenses, and undertaken extensive work to improve the maternity insurance system. Could you give us more details on these efforts? Thank you.

Liu Juan:

Thank you for your question and for your interest in the NHSA's work. The maternity insurance system, as an important component of the childbirth support policy framework, bears significant responsibility for helping build a childbirth-friendly society. The NHSA has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, actively responded to public concerns, and continued to make efforts in expanding coverage, strengthening protections, promoting standardization, optimizing services and tightening management. These efforts ensure policy benefits reach more families with children. We have taken four specific measures.

First, we have focused on expanding maternity insurance coverage. We have made every effort to ensure that all employees and those receiving unemployment insurance benefits are fully enrolled. We will continue to guide local authorities to include flexible workers, migrant workers and workers in new forms of employment within the scope of maternity insurance coverage. As of June 2025, the number of people covered by maternity insurance had reached 253 million.

Second, we have focused on improving coverage levels for maternity medical expenses. We have adhered to a demand-oriented approach, providing basic protection for female employees during maternity leave through reimbursement of maternity medical expenses and maternity allowances. Maternity medical expenses are now covered throughout the entire process, from the full term of pregnancy to delivery. Maternity allowances function as wage replacement for insured female employees during maternity leave. They are paid through maternity insurance to cover living expenses and ensure that infants receive the necessary care and nursing. During the 14th Five-Year Plan period, insured individuals have received maternity insurance benefits 96.14 million times, with cumulative fund expenditures totaling 438.3 billion yuan.

Third, we have focused on expanding the scope of protection. Actively responding to public concerns, all 31 provinces, autonomous regions and municipalities, as well as the Xinjiang Production and Construction Corps, have fully incorporated assisted reproductive technology into their reimbursement programs. As of 2024, more than 1 million people had benefited from this policy, and thousands of families fulfilled their dream of having children. Some provinces have included labor pain relief in their reimbursement programs, reducing both the financial burden and physical pain for expectant and new mothers. At the same time, we have expedited the approval process for pricing projects such as newborn care and family-accompanied childbirth to improve pediatric and obstetric services and better meet the public's diverse needs for childbirth services.

Fourth, we have focused on improving service management. We have optimized one-stop childbirth services and explored mechanisms that allow newborns to be automatically enrolled in basic medical insurance when their birth certificates are issued, ensuring immediate access to insurance benefits. We have further reduced procedures, simplified required materials and shortened processing times, completing review and payment of maternity allowances within 10 working days. We have actively promoted the direct distribution of maternity allowances to individuals, enabling insured people to receive timely financial support during childbirth. Currently, more than 60% of the coordinated regions nationwide have implemented direct distribution of maternity allowances to individuals.

Next, we will continue to thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, actively adapt to the national demographic situation and development strategies, and guide local authorities in actively exploring and improving relevant policies. We will better safeguard the maternity-related rights and interests of insured persons and jointly promote the construction of a birth-friendly society.

Thank you.

Dingduan News:

Previously, some regions have explored and implemented local child care subsidy policies, with some local standards exceeding the current national baseline. How will these local policies be aligned with national regulations, and will allowances continue to be issued in areas where local standards are higher? Thank you.

Guo Yanhong:

Thank you for your questions. I will answer them. In recent years, some places in the country have explored and implemented childcare subsidy policies based on local conditions, achieving positive results. After the introduction of the national child care subsidy system, efforts should be made to strengthen policy coordination and ensure that local measures are standardized and aligned in an orderly manner. This involves three key principles and considerations:

First, the state establishes the system, and local authorities implement it accordingly. The state has established the child care subsidy system, achieving nationwide coverage, while setting a national basic standard of 3,600 yuan per child per year until the age of three. Localities that previously had no child care subsidy policies, limited subsidy coverage, or subsidy standards below the national level must implement unified policies according to the national subsidy scope and baseline standards to achieve equitable policy coverage and ensure policy fairness.

Second, policy consistency should be ensured, and people's interests should be protected. For child care subsidy policies already implemented, local governments should develop specific transition plans to ensure orderly alignment between local policies and the national system. Throughout this process, people's vital interests must be effectively protected. Localities with subsidy standards that exceed the national baseline may continue their current programs after completing the required evaluation and registration procedures.

Third, we will strengthen policy coordination and enhance sustainability. The implementation plan clearly states that all provinces shall implement unified child care subsidy policies and standards at the prefecture level. In provinces with minor regional differences, a single, policy and standard can be applied across the entire province. This means that child care subsidy policies must be coordinated at least at the prefecture level. Raising the level of policy coordination helps avoid policy fragmentation and effectively enhances policy stability and sustainability.

At the same time, we must recognize that supporting childbirth is a systematic undertaking that encompasses a comprehensive package of policy measures, including financial, service, time and cultural support. Localities can implement various measures based on their actual conditions, working in concert with the child care subsidy system to form a comprehensive family support policy package. This will better alleviate the burden of childbearing, child-rearing and education on families. Thank you.

Zhou Jianshe:

One last question, please.

National Business Daily:

Previously, some localities in China explored providing child care subsidies, but most only targeted second and third children, leaving families with only one child unable to benefit. What was the consideration for including firstborns in the national subsidy program? Thank you.

Guo Yanhong:

Thank you for your question. Mr. Wang will answer this.

Wang Haidong:

Thank you for your question. In recent years, some places have experimented with child care subsidies, accumulating a lot of experience and providing useful references for the formulation of the national child care subsidy system. Overall, these local policies are in the preliminary exploration stage, and most didn't include first children in the subsidy coverage. During the research and development process for the national child care subsidy system, we worked with relevant departments to conduct in-depth research and sought broad feedback on issues such as who should be eligible for subsidies. There was a broad consensus that support for families with only one child should be strengthened.

The decision to include first-borns in the national child care subsidy system was based on two main considerations: First, families with one child constitute the majority. More than half of all births each year are first children. Therefore, by including them in the subsidy scope, we can ensure broad coverage and maximize the number of families that can benefit from the child care subsidy system. Second, having a child is a major milestone for any family. Having a first child is the beginning and foundation of a family's childbearing journey and represents a critical stage that particularly needs support. Providing child care subsidies for first children can improve a family's childbearing experience, reduce child care pressures and encourage families to consider having more children. Thank you.

Zhou Jianshe:

Today's press conference is hereby concluded. Thank you to our speakers and to all the journalists. Goodbye.

Translated and edited by Li Xiao, Yan Bin, Zhang Jiaqi, Ma Yujia, Liu Caiyi, Li Congrong, Yang Chuanli, Wang Qian, Fan Junmei, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Feng Fei, secretary of the Hainan Provincial Committee of the Communist Party of China (CPC) and chairman of the Standing Committee of the Hainan Provincial People's Congress

Mr. Liu Xiaoming, deputy secretary of the Hainan Provincial CPC Committee and governor of Hainan province

Mr. Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Liao Min, vice minister of finance

Mr. Yuan Xiaoming, assistant minister of commerce

Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC)

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 23, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Feng Fei, secretary of the Hainan Provincial Committee of the Communist Party of China (CPC) and chairman of the Standing Committee of the Hainan Provincial People's Congress; Mr. Liu Xiaoming, deputy secretary of the Hainan Provincial CPC Committee and governor of Hainan province; Mr. Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC); Mr. Liao Min, vice minister of finance; Mr. Yuan Xiaoming, assistant minister of commerce; and Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to brief you on the development of Hainan Free Trade Port (FTP), and to answer your questions.

Now, I will give the floor to Mr. Wang for his introduction.

Wang Changlin:

Good morning, everyone. The establishment of a free trade port with Chinese characteristics in Hainan province represents a significant reform and opening-up initiative, with General Secretary Xi Jinping playing a personal role in its design, planning and promotion. In June 2020, the CPC Central Committee and the State Council officially released the "Overall Plan for the Construction of Hainan Free Trade Port." Over the past five-plus years, we have earnestly studied and implemented the guiding principles of General Secretary Xi Jinping's important views on the construction of Hainan FTP. Under the direct leadership of the Central Leading Group for Coordinated Regional Development, and in close collaboration with Hainan province and relevant departments, we have prioritized institutional integration and innovation. We have accelerated reform and opening up in key areas, rolled out a series of landmark and pioneering innovative measures, and established an initial policy and institutional framework for the free trade port. The core features of this framework can be summarized as "4, 3, 2, 1."

"4" refers to a more convenient flow of the four key factors of people, goods, capital and data. People from a total of 85 countries can enter Hainan visa-free. Yangpu Port in Hainan now ranks second nationwide in terms of the total tonnage of internationally registered vessels. Capital can be freely and conveniently transferred between multifunctional free trade accounts and overseas accounts in accordance with the law. Outbound data flows are regulated through a negative list.

"3" refers to the accelerated opening up of the three major areas of trade in goods, trade in services and investment. We have introduced "zero tariff" policies for the import of raw and auxiliary materials, transportation vehicles including yachts, and self-use production equipment. China's first negative list for cross-border trade in services has been issued and implemented. We have launched 22 special measures to ease market access, and we now have the shortest negative list for foreign investment access in the country.

"2" refers to the enhanced tax incentives for both enterprises and individuals. A preferential 15% income tax rate for both corporations and individuals has been implemented, with cumulative tax reductions and exemptions exceeding 31 billion yuan (about $4.3 billion) and 17 billion yuan, respectively. The pilot policy exempting import tariffs on products with 30% or higher value added after processing has been expanded to cover the entire island. The offshore tax-free shopping quota has been increased to 100,000 yuan per person per year.

"1" refers to the continuous improvement of the legal protection centered on the dedicated Hainan Free Trade Port Law. The port's institutional arrangements have been clarified in the form of laws, and more than 40 supporting regulations have been issued to ensure that reform and innovation measures are effectively implemented.

Altogether, these policies and systems have enabled Hainan to move steadily and energetically toward greater opening up and development, securing significant phased results and laying a solid foundation for the launch of the island-wide special customs operation.

This is a landmark project in the construction of Hainan FTP, as well as a milestone and important step toward deeper opening up. Special customs operation means designating the entire Hainan Island as a special customs supervision area, implementing a liberalization and facilitation policy system characterized by opening the "first line," efficient control at the "second line," and free flow within the island. Opening the "first line" refers to implementing a series of measures for free and convenient entry and exit between Hainan FTP and other countries and overseas regions. Efficient control at the "second line" means precise regulation of entry and exit between Hainan FTP and other regions on the Chinese mainland in response to the liberalization at the first line. Free flow within the island refers to the relatively unrestricted movement of production factors within the port. In this context, special customs operation does not mean sealing off the island, but represents further opening up. After the operation, Hainan's connection with the international community will be more seamless. This is of great significance for accelerating the inflow of quality global resources, driving high-quality development of the free trade port, and helping blaze new trails in China's reform and opening up. 

In line with the phased approach outlined in the overall plan and taking into account Hainan's actual development conditions, we have worked with relevant departments to formulate a package of special customs operation policies for the current stage. These can be summarized as "four more" policies:

First is implementing a more preferential zero tariff policy for goods. The proportion of eligible zero-tariff items imported through the "first line" will be increased from 21% to 74%. Goods can circulate among eligible enterprises within the island without incurring import duties. Processed goods that achieve at least 30% value-added content can be sold to the mainland free of import duties.

Second is to execute more relaxed trade management measures. On the "first line" import side, some imported products currently prohibited and restricted nationwide will be allowed into Hainan.

Third, more convenient passage measures will be implemented. Currently the eight existing ports open on the island will serve as "first-line" ports, and eligible imported goods will be released directly. Ten "second-line" ports such as Haikou New Port and Haikou South Port will be used to implement innovative and convenient passage measures for goods entering other regions on the Chinese mainland.

Fourth, we will implement a more efficient and precise supervision model. Low-intervention, high-efficiency precise supervision will be implemented for "zero-tariff" goods, as well as goods with relaxed trade management measures to ensure the smooth implementation of various opening-up policies. Relevant policy documents will be released to the public later and implemented from the date of the island-wide special customs operation.

The scheduled date for launching the operation is December 18, 2025, with the approval of the CPC Central Committee. On December 18, 1978, the third plenary session of the 11th CPC Central Committee launched the great journey of reform, opening-up and socialist modernization. Initiating the island-wide special customs operation on December 18 is symbolic. It also demonstrates to the world China's unswerving determination and confidence in expanding high-level opening up. In the next few months, we will make every effort to complete the follow-up preparations. We will help business entities fully understand special customs operation policies and conduct related business tests.

The island-wide special customs operation marks the beginning of a new stage of opening up and development for the Hainan FTP. It is a long-term task that will be continuously promoted. Next, following the decisions and deployments of the CPC Central Committee and the State Council, we will see the special customs operation as an opportunity to actively promote the implementation of various policies. We will continuously expand the level of openness based on the needs of Hainan's development, continuously improve the system of policies and institutions of the free trade port, accelerate the establishment of new open economy institutions, and strive to build a leading gateway for China's opening up in the new era.

That is all for my briefing. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang Changlin. Next, let's give the floor to Mr. Feng Fei.

Feng Fei:

Friends from the media, ladies and gentlemen, good morning. General Secretary Xi Jinping attaches great importance to the reform, opening up, and development of Hainan, instructing us to accelerate the construction of a free trade port with Chinese characteristics and global influence, and to build a leading gateway for China's opening up in the new era. At present, the construction of the Hainan FTP has entered a new stage of taking shape and gaining momentum and is about to launch island-wide special customs operation. "Taking shape" refers to the initial establishment of the system of policies and institutions of Hainan FTP, as introduced by Mr. Wang Changlin. "Momentum" mainly lies in the achievements and development momentum over the past five years of preparation.

First, we have expanded opening up. The actual use of foreign capital reached 102.5 billion yuan, with an average annual growth of 14.6%. Outward direct investment reached 9.78 billion U.S. dollars, with an average annual growth of 97%. 8,098 new foreign-funded enterprises were established, with an average annual growth of 43.7%. The average annual growth of goods trade and service trade was 31.3% and 32.3%, respectively. 176 countries and regions invested in Hainan, and the economic outward orientation increased to 35%. The visa-free policy in Hainan is the best in the country, with 85 countries eligible for visa-free entry to Hainan.

Second, the industrial system is becoming increasingly optimized. The four leading industries of tourism, modern service industry, high-tech industry, and tropical high-efficiency agriculture increased their combined share by 13.7 percentage points in five years, accounting for 67% of the province's GDP. New quality productive forces have been flourishing, with the output value of Nanfan seed breeding exceeding 18 billion yuan. The gross ocean product (GOP) grew at an average annual rate of 13.9%. China's first commercial space launch site was successfully built and has the capability for high-density, multi-model launches. Offshore duty-free sales accounted for more than 8% of the global duty-free market. Boao Lecheng basically achieved synchronization of medical technology, equipment, and drugs with international advanced standards. Hainan has gained approval for 18 Chinese-foreign cooperative education projects above the undergraduate level and two independent education projects from high-level overseas universities.

Third, the development environment continues to improve. The ecological environment of air, rivers, lakes, and nearshore sea areas remains among the best in the country, with PM2.5 concentration at 12 micrograms per cubic meter. The proportion of clean energy power generation and installed capacity exceeded 70% and 80%, respectively. The penetration rate of new energy vehicles is 59.6%, ranking first in the country. The Boao zero-carbon demonstration zone achieved a 99% carbon reduction, certified by authoritative institutions at home and abroad. The country specifically introduced the Hainan Free Trade Port Law, providing stable expectations at home and abroad. A one-stop international commercial dispute resolution mechanism that integrates mediation, arbitration, and litigation guarantees promising prospects, fairness, and transparency for all enterprises investing in Hainan.

Fourth, the sense of fulfillment among the people continues to grow. "Good education near home" and "minor illnesses can be treated locally, and major illnesses do not require leaving the island" are becoming realities. The average life expectancy in Hainan has reached 80.5 years, and the permanent population has increased by 530,000 in five years, making it one of the eight provinces in China with a net inflow of permanent residents. Hainan is becoming a new frontier for China's opening up, a new hot spot for regional mutually beneficial cooperation, and a new engine for promoting economic globalization, laying a solid foundation for achieving the special customs operation and expanding openness.

Regarding the expansion of openness through the special customs operation, we are making careful preparations in accordance with the deployments of the central government. In terms of the special customs operation policies, preparations have been completed. Policies and supporting documents such as the import taxable goods catalog, the list of prohibited and restricted import and export goods and items, and duty exemption for domestic sales of processed value-added products have been formulated. The software and hardware conditions have been fully completed. The hardware facilities for special customs operation have passed national acceptance, and information systems such as the international trade "single window" and the smart customs supervision system have also been built. In terms of stress test drills, we are advancing step by step, accelerating full-process, full-element, full-coverage, large-sample, and practical stress tests to ensure both "opening up" and "managing well." After five years of hard work, we feel more confident. Next, we will make every effort to ensure the smooth and timely launch of the special customs operation in strict accordance with the central government's deployments. Thank you.

Shou Xiaoli:

Thank you, Mr. Feng, for your introduction. The floor is now open for questions. Please identify the media outlet you represent before asking your question. You may now raise your hand.

Xinhua News Agency:

The island-wide special customs operation, which involves a wide range of aspects, is a highly innovative, complex and systematic project. What specific measures will Hainan province take to ensure effective implementation of these policies? Thank you.

Feng Fei:

Thank you. I think the question you raised is one that many people are concerned about. The special customs operation in Hainan is a landmark and foundational project for the development of Hainan FTP. It is of milestone significance. The current top priority is to ensure the implementation of the policies. We will accurately understand the mission of the special customs operation, earnestly fulfill the primary responsibility, and spare no efforts to ensure full implementation through an approach in which policies can be transformed into concrete projects, and task-list management is adopted to ensure measurable outcomes. Specifically, our efforts will focus on the following three perspectives:

First, we will ensure implementation by enhancing the sense of gain for business entities and the people. The most direct way to gauge the effects of a policy measure is to look at the perception of enterprises and the people. We will strengthen policy publicity and interpretation, enhance guidance services and drive large-scale international investment promotion, ensuring that enterprises and the public are fully informed of policies and fully enjoy the benefits of the policies.

Second, we will ensure implementation through integrated institutional innovation. In order to make it more conducive for enterprises to freely, conveniently and compliantly use policies, we will promote the integration of the special customs operation policies with the various free trade port policies that have already been implemented, amplifying the combined effects of the policies to achieve tangible dividends through substantial reform and innovation. At the same time, we will ensure implementation by building an important intersection of domestic and international circulations. The implementation of the policy on the special customs operation is itself a part of expanding institutional opening up. We will accelerate the alignment with international high-standard economic and trade rules, and build "two bases," "two hubs" and "two networks," which refer to the headquarters base for Chinese enterprises to enter the international market and the headquarters base for foreign enterprises to enter the Chinese market, the international shipping hub for the New International Land-Sea Trade Corridor and the aviation hub serving as a regional gateway to the Pacific and Indian oceans, and the international economic and trade cooperation network and the international people-to-people exchange cooperation network. These efforts will attract more foreign investment, make foreign trade more dynamic, enable foreigners to live and work with a greater sense of satisfaction in Hainan, and better integrate Hainan province into the unified national market. We will demonstrate the firm confidence that "China will open its door ever wider" and the vast opportunities this commitment presents through the tangible effects of policy implementation. Thank you.

Jimu News:

The Master Plan for the Development of Hainan Free Trade Port proposes that the institutional system of liberalization and facilitation with zero tariff as basic feature be applied to trade in goods. Could you introduce the changes in the tax policies for goods after the implementation of the special customs operation Thank you.

Liao Min:

Thank you for your question. This issue has already been addressed by my colleague in his introduction earlier. I will further elaborate from a fiscal perspective. Zero tariff is one of the major features of the Hainan FTP's policy and institutional system. In recent years, the Ministry of Finance has earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, taken into full account the actual situation in Hainan, and worked with relevant departments to successively introduced three import zero-tariff policies for raw and auxiliary materials, means of transport and yachts, and production equipment imported by enterprises for own use. Therefore, we have gained a series of phased results through our earlier practices. These have injected new momentum into the high-standard opening up of Hainan FTP, and provided valuable experience for the island-wide special customs operation and related management in the next step.

In order to steadily promote the island-wide special customs operation of Hainan FTP, the MOF has carefully summarized the relevant practical experience in the early stage, and has also taken into account factors such as the free trade port development progress, the industrial conditions, and the conditions of regulatory software and hardware. We have taken the lead in formulating the tax policies for goods entering and exiting "first-line" and "second-line" ports and circulating within the island, as well as the catalog of imported taxable commodities at Hainan FTP. These policies are scheduled to take effect upon the launch of the island-wide special customs operation. At that time, the existing zero-tariff policy for imports will be incorporated into the new goods tax policies for implementation, basically establishing the zero-tariff system for imports in Hainan FTP. 

After the introduction of the special customs operation, the main arrangements for goods tax policies will be as follows: Independent legal entity enterprises registered in Hainan FTP, as well as eligible public institutions and private non-enterprise units within the free trade port, can be exempted from import taxes on goods imported through the first-line ports that are not listed in the catalog of imported taxable commodities. Zero-tariff goods and their processed products can circulate among entitled entities within the island without being subject to import taxes. For goods produced by enterprises in encouraged industries of Hainan FTP, when the value-added through processing in Hainan reaches or exceeds 30%, they can be exempted from import duties when entering the Chinese mainland through the second-line ports. Compared to the policies before the introduction of the special customs operation, there are three significant changes.

First, the coverage of zero-tariff goods has significantly expanded. After the island-wide special customs operation, zero-tariff imports will be managed under a negative list system, replacing the previous positive list with the catalog of imported taxable commodities. The range of zero-tariff goods will expand from the current 1,900 tariff lines to about 6,600, accounting for about 74% of all taxable goods, with an increase of nearly 53 percentage points compared with the level before the implementation of the special customs operation. Therefore, you can see that this has significantly enhanced the scope and level of openness.

Second, the scope of entitled entities has also significantly expanded. Currently, the zero-tariff import policy is limited to independent legal entities and public institutions registered in Hainan FTP. After the launch of the island-wide special customs operation, the entitled entities will basically cover all types of enterprises, public institutions and private non-enterprise units with actual import needs across the island.

Third, policy restrictions have been further relaxed. After the launch of the special customs operation, zero-tariff goods and their processed products will no longer be limited to enterprises' own use. They can freely circulate among entitled entities without the need to pay additional import taxes. This has positive significance for extending the island's industrial chain, enhancing industrial competitiveness and forming an industrial cluster effect.

Overall, the above policies are conducive to further reducing the production costs of market entities, stimulating market vitality, and significantly improving the level of trade liberalization and facilitation in the Hainan Free Trade Port. Subsequently, the Ministry of Finance will continue to monitor the implementation of relevant policies, with particular focus on the sense of benefit of market entities, to timely optimize and adjust policy content. We will also work with the Hainan provincial government to enhance services for market entities. At the same time, we will also strengthen management and continuously promote the construction of the Hainan Free Trade Port, including elevating China's high-standard opening up to yield new outcomes. That's all for my answer. Thank you.

CCTV:

We understand that after adopting island-wide special customs operations, second-line checkpoints will be established for the passage of goods, items, personnel, and transportation vehicles between the Hainan Free Trade Port and the mainland. It is understood that some enterprises and travelers are worried about whether it will be inconvenient to enter and exit Hainan Island after the launch of special customs operations. For example, whether special travel permits will be required for tourism visits. Could you give us more details on this? Thank you.

Wang Changlin:

You raised a very good question, and indeed, people are quite concerned about this aspect. As I just mentioned, special customs operations are for the purpose of opening up and development. To be precise, it can be defined by few keywords: special customs operations, expanded opening up, and accelerated development. Therefore, after the launch of special customs operations, the exchanges between Hainan and the international community will be smoother and freer, and the connectivity with the mainland will be more convenient and efficient. According to the current design of special customs operations, except for some goods entering the mainland from the Hainan Free Trade Port that need to be inspected, most goods and all personnel, items, and transportation vehicles entering and exiting Hainan Island will still be managed according to current regulations, with no changes after the launch of special customs operations. For those traveling or on a business trip to Hainan Island, no extra documents are needed, just as it is now.

For goods that need to be inspected, here is an introduction for you. To avoid the impact of the opening-up measures implemented at the "first line" on the mainland market, precise management is required at the second line checkpoints, covering three categories of goods, including "zero-tariff" goods, goods benefiting from value-added processing policies, and goods with relaxed trade management measures. Next, to ensure customs clearance efficiency, the following measures will mainly be taken:

First, we will build a "one-stop" customs clearance model. Enterprises can pre-declare the information of goods leaving the island online. Customs, security inspection, and other departments will coordinate clearance procedures at the second line checkpoints and issue release orders, thereby achieving "one-time declaration, one-time inspection, and one-stop release".

Second, we will implement the strategy of "pushing forward and moving backward". Management matters such as the inspection of agricultural products leaving the island and the collection of transit surcharges originally implemented within the port will be moved forward or backward to areas outside the second line checkpoints to avoid congestion.

Third, we will strengthen intelligent supervision. We will make full use of big data, artificial intelligence, and other methods to strengthen the intelligent construction of customs, maritime safety administration, border inspection, port operators, etc., to achieve information sharing and mutual recognition of supervision.

Fourth, we will strengthen credit management. We will build a credit-based grading and classification regulatory service system. For enterprises with higher credit ratings, we will reduce the frequency of inspections to facilitate quick customs clearance.

Overall, after the launch of special customs operations, Hainan Free Trade Port will continue to maintain convenient exchanges with the mainland. In the future, various entities, especially travelers, will not be affected when entering and leaving Hainan Island. Instead, they will enjoy better travel experiences and services. Thank you.

Elephant News:

The Overall Plan for the Construction of Hainan Free Trade Port and the Hainan Free Trade Port Law propose to formulate a list of goods and articles prohibited and restricted for import and export at the Hainan Free Trade Port. Can you give us a detailed introduction regarding this list? Thank you.

Yuan Xiaoming:

Thanks for your question. As you all know, trade liberalization and facilitation is one of the five key freedoms and conveniences in the policy and institutional framework design of Hainan Free Trade Port. General Secretary Xi Jinping has made important instructions on the construction of Hainan Free Trade Port on many occasions, and made arrangements again last December. The Ministry of Commerce, together with relevant departments, formulated and issued a list of goods and articles prohibited and restricted for import and export at the Hainan Free Trade Port, as part of the core policies of the free trade port, making a new exploration based on China's current goods trade management model. It can be said that the list is an important institutional arrangement to support the further improvement of trade liberalization and facilitation in Hainan Free Trade Port. Here, I would like to briefly introduce it from two perspectives of transparency and openness.

On the one hand, the list has greatly enhanced the transparency of goods trade management. The list is based on laws and regulations such as the Hainan Free Trade Port Law and the Foreign Trade Law, and for the first time comprehensively and systematically lists the scope of goods and articles that are subject to China's currently effective import and export prohibitions and restrictions, enabling business entities to clearly and conveniently grasp the regulatory boundaries.

Concurrently, the list has significantly increased the openness level of goods trade. Under the premise of fulfilling international convention obligations, safeguarding national security, and ensuring ecological and environmental protection, the list has relaxed the management measures for some imported goods in accordance with the development needs of Hainan Free Trade Port. In short, that means easing restrictions and expanding opening-up pilot programs. The import license requirements for used mechanical and electrical products under 60 commodity codes has been canceled, covering about 80% of such products previously subject to import licensing, which can basically meet own production needs of Hainan's enterprises; at the same time, based on the existing policies of the pilot free trade zone and comprehensive bonded zone, bonded maintenance is permitted for products under 38 commodity codes in Hainan Free Trade Port, achieving the highest level of openness in this field nationwide.

The full text of the list will be published on the Ministry of Commerce's website shortly. The introduction of the list will help optimize the trade development environment and boost trade development momentum within Hainan FTP. Moving forward, the Ministry of Commerce will work with relevant parties to ensure the implementation of the list so that policy benefits flow directly to businesses. Thank you.

21st Century Business Herald:

The pilot duty-free policy for domestic sales of processed value-added goods has been in place for more than four years. How does this newly introduced policy differ from and improve upon the existing pilot policy? Thank you.

Wang Lingjun:

Thank you for your question. This is an important issue concerning customs policy within the context of Hainan FTP development. The duty-free policy for domestic sales of processed value-added goods refers to the exemption of import duties on specific products from Hainan FTP when they enter the mainland. To qualify, products must be manufactured by encouraged industries within the port and contain imported materials that have a value added of 30% or more within the port. Import value-added tax and consumption tax are levied according to regulations. The policy was first piloted in the Yangpu Bonded Port Area in July 2021. Over the past four years, the pilot policy has been optimized and adjusted multiple times, expanding its scope from just the 2.3-square-kilometer Yangpu Bonded Port Area to cover the entire Hainan FTP. Based on an in-depth summary of the pilot experience, the GACC, in collaboration with relevant departments and Hainan province, has further optimized the value-added duty-free policy for the island-wide special customs operations. This has resulted in the formulation of the Interim Measures for the Implementation of Customs Tax Collection and Administration on Domestic Sales of Value-added Goods Processed in Hainan Free Trade Port of the People's Republic of China. Compared with the existing pilot policy, the duty-free policy for processing value-added goods after the launch of the operation is primarily optimized in the following aspects:

First, the threshold for enterprises to enjoy benefits has been lowered by eliminating the restriction that primary business income from encouraged industries must account for more than 60% of an enterprise's total income.

Second, the scope of eligible imported materials has been expanded. The policy scope has been extended to include tariff-exempt imported goods, building upon the initial pilot that only permitted bonded goods.

Third, the calculation formula for value-added processing has been optimized. The value of goods produced in Hainan FTP is now included in the value-added portion, making it easier for enterprises to reach the 30% value-added threshold.

Fourth, the application scope for cumulative value-added processing has been expanded. When bonded goods are processed and manufactured by different upstream and downstream enterprises, each enterprise's value-added portions can be calculated cumulatively, encouraging enterprises to expand and extend their industrial chains.

Overall, since the introduction of the island-wide special customs operations, the processing value-added policy will lower eligibility thresholds and expand the range of beneficiaries. This will better serve the production needs of enterprises on the island and support the cultivation and development of industrial chains and clusters. Thank you.

China Arab TV:

What specific initiatives has Hainan FTP taken to promote economic and trade cooperation with Arab countries? In the future, will there be a push for more China-Arab cultural and tourism cooperation projects, such as opening direct flight routes or hosting special economic and trade cultural activities? Thank you.

Feng Fei:

Thank you for your questions. Hainan province attaches great importance to economic, trade, cultural and tourism cooperation with Arab countries. Both Mr. Liu and I have previously visited Gulf and Arab states. In recent years, economic and trade cooperation between Hainan and Arab countries has been steadily growing. Hainan Yangpu Port has established a sister port relationship with Abu Dhabi Port. Additionally, both the maritime route connecting Yangpu Port and Abu Dhabi Port and the air route linking Haikou and Dubai are currently operational. As you just mentioned, we have established direct links by both sea and air, and we plan to further increase the frequency and capacity of these routes. These efforts have further strengthened the Maritime Silk Road and Air Silk Road between China and Arab nations. Khalifa Economic Zones Abu Dhabi, Dubai International Free Zone and Dubai Jebel Ali Free Zone are all global free trade zone partners of Hainan FTP. We now have 40 such partners, many of which are with Arab countries that operate some of the world's most influential free trade zones. Over the past three years, the total value of goods traded between Hainan and League of Arab States has grown by more than 30% annually, exceeding 24 billion yuan in 2024.

With the implementation of island-wide special customs operations, Hainan FTP will fully leverage its advantages as a convergence point of both domestic and international dual circulation. We will significantly expand our open cooperation with Arab countries across economics, trade, tourism, culture, education, clean energy and other sectors. Specific initiatives include hosting the World Free Zone Organization Annual Meeting and conducting tourism promotion activities in Jeddah, Saudi Arabia. As our cooperation deepens, more direct flights will be opened and more special economic, trade and cultural activities will be held. This will enable both sides to create more opportunities and share prosperity based on cultural exchanges and mutual understanding. Please convey our warm welcome to enterprises from Arab countries to invest and establish businesses in Hainan FTP. Thank you.

Cover News:

In recent years, Hainan has vigorously promoted the development of an international tourism consumption center. What progress has been made so far, and what are the plans for future measures? Thank you.

Liu Xiaoming:

Thank you for your questions. With its slogan "All the Sun, All the Fun," Hainan has long been a dream destination for both domestic and international tourists. In recent years, Hainan has been making great efforts in building itself into an international tourism consumption center, and remarkable outcomes have been made. For example, we have constructed two scenic loop highways. The "outer loop" refers to the scenic ring road around the island, stretching 988 kilometers along the coast, offering ocean views for over 50% of the route. The "inner loop" refers to the scenic ring road surrounding the National Park of Hainan Tropical Rainforest, spanning 466 kilometers through mountainous terrain, weaving together a new landscape of cultural and tourism attractions. As a result, the two scenic loop highways offer travelers a journey where cars move through the scenery, people stroll as if in a painting. Natural beauty of mountains and sea unfolds at every mile. Moreover, we have successfully held the China International Consumer Products Expo for five consecutive years. This expo has become the largest global consumer goods exhibition and trading platform in Asia. This not only provides strong support for sustained consumption growth, but also meeting people's aspirations for a better life. It is an important platform for global enterprises to access the Chinese market and for Chinese enterprises to globalize. We have also stepped up our efforts to foster and promote tourism as a new business format. We've also made great efforts to expand special tourism offerings, including cruises, yachting, aerospace-themed tourism, diving and surfing. "Coming to Hainan for concerts, music festivals, and brand exhibitions" has become the latest trend.

In 2024, Hainan received 97.2 million domestic and international tourist visits, representing an 8% increase over the previous year. Notably, international visitor arrivals more than doubled during this period.

Hainan launched the island-wide special customs operations and expanded its opening-up this year. We will seize the opportunities, and enhance our efforts to build Hainan into an international tourism consumption center. On one front, we will accelerate the development of uniquely appealing cultural tourism consumption experiences. We will build a series of international cultural tourism IPs and programs, while simultaneously promoting the renewal and upgrading of existing scenic spots. This offers visitors more diverse and enriching travel experiences. On another front, we will enhance the tourism consumption environment to ensure safety, reliability, enjoyment and comfort. As such, we launched the "Consumer Confidence in Hainan" service system, providing tourists with end-to-end services covering merchant information, purchases, complaints and rights protection and advance compensation. This -- achieves comprehensive consumer protection across all industries and sectors. Through honest and standardized operations and warm hospitality, we will be committed to making all visitors -- domestic and international -- feel thoroughly welcome and reluctant to leave.

Let me conclude by extending Hainan's warm invitation to all friends: "Come to the ends of the earth, where spring lasts all year round. Hainan welcomes you!" Thank you!

Dazhong Daily:

In addition to the list of goods and items just introduced, what other measures will the Ministry of Commerce take to promote high-standard opening-up of the Hainan Free Trade Port? Thank you.

Yuan Xiaoming:

Thanks for your question. Driving reform and development through opening-up has been a vital force behind the continuous achievements of China's modernization. The Ministry of Commerce has consistently advanced high-standard opening-up, with a focus on trade and investment, supporting Hainan Free Trade Port in reaching new heights and breakthroughs in opening up. From 2020 to 2024, Hainan's actual use of foreign investment exceeded the total of the previous 32 years since the province's establishment. Whilst the total import and export volume of goods grew at an average annual rate of over 30%, reflecting steady progress in its export-oriented economy.

Amid unilateralism and protectionism rising globally a further economic headwind against globalization is underway. The Ministry of Commerce will continue to fully support the development of the Hainan Free Trade Port, striving to make it an important gateway leading China's opening-up in the new era. This will not only contribute to China's sustained economic recovery but also inject stability and certainty into the world economy. Specifically, our efforts will focus on the following three aspects:

First, we will continue advancing institutional opening-up. We will support Hainan Free Trade Port in proactively aligning with high-standard international economic and trade rules through pilot initiatives. Focusing on trade and investment liberalization and facilitation, market access expansion, and fair market competition, we will deepen institutional innovation to promote compatibility in rules, regulations, administration and standards, creating a world-class business environment.

Second, we will continue to leverage the synergistic advantages of open platforms. While supporting Hainan Free Trade Port development, the Ministry of Commerce has also promoted the establishment of various open platforms including the island-wide Free Trade Pilot Zone, as well as the island-wide Comprehensive Pilot Zone for Cross-border E-commerce, and the Comprehensive Pilot Program for Further Opening-up in the Service Sector. We will co-host the China International Consumer Products Expo with Hainan province. We will continue to support Hainan in strengthening various open platforms in a bid to achieve a "1+1>2" effect, better release the dividends of policies and systems, whilst delivering more achievements in reform and opening-up.

Third, we will be persistent in the cultivation of new growth drivers. We will leverage Hainan's distinctive resources and geographical advantages, focusing on the priorities of strengthening, consolidating and extending industrial chains in key sectors. We will implement targeted policy measures to boost innovative development in the trade of goods, services and the digital trade. Moreover, we will foster new business forms and models, and accelerate industrial cluster development, all in a bid to support the building of a modern industrial system. Thank you.

China Financial and Economic News:

It was just announced at the conference that Hainan will officially launch the island-wide special customs operations on Dec. 18. How will Hainan province take this opportunity to accelerate high-quality development and build a modern industrial system with their distinctive local characteristics and competitive advantages? Thank you.

Feng Fei:

Thank you for your question. Building a modern industrial system with distinctive Hainan characteristics and strengths is a task entrusted to Hainan by General Secretary Xi Jinping. It is also the most important undertaking in our pursuit of high-quality development. My understanding of these characteristics and strengths is that they should be grounded in Hainan's comparative advantages and developed into competitive industrial advantages. Overall, the launch of island-wide special customs operations will make it easier to pool global production factors, allocate global resources and promote industrial development. Specifically, we have summarized our approach as "4532."

The "4" refers to efforts to strengthening, extending and upgrading the four leading industries. As I mentioned earlier, these four industries currently account for 67% of Hainan's GDP, an increase of 13.7 percentage points over the past five years. In the tourism sector, we will build an international tourism and consumption center to high standards, and develop Hainan into a world-class tourist destination. Mr. Liu just elaborated on this topic. In modern services, one particularly influential initiative is the China International Consumer Products Expo (CICPE), which has been held five times. It is expanding the reach of new forms of trade to international markets, especially Southeast Asia. In high-tech industries, we are working to expand industrial clusters in areas such as offshore wind power, biomedicine, and the digital economy. In efficient tropical specialty agriculture, we are increasing the supply of tropical fruits and vegetables that are novel, unique, high-quality and well-suited to the region, enriching people's vegetable baskets and fruit bowls. I believe that many of you have already tasted some of Hainan's specialty tropical fruits. The "5" refers to five pathways to strengthening development, with the goal of making Hainan a key demonstration zone for advancing new quality productive forces. These five pathways are defined based on Hainan's unique resource endowments: its tropical climate, deep-sea conditions, geographic latitude, ecological environment and the institutional advantages of a free trade port for opening up. We will pursue strength through seed innovation by building a world-class bio-breeding zone and bringing Hainan-developed seeds to global markets. We will pursue strength through marine development by advancing deep-sea science and technology, and strive to build a "Maritime Hainan" as a new frontier for growth. We will pursue strength through aerospace development by leveraging commercial space launch facilities to drive industrial growth. This means using the launch infrastructure to develop industrial chains related to rockets, satellites, data and broader "aerospace plus" sectors. We will pursue strength through green development by building Hainan into a "low-carbon island." We aim to significantly reduce the carbon footprint of Hainan's products and services to enhance their international competitiveness. We will pursue strength through digital development by developing international data centers and advancing large-scale AI models, seizing the opportunities of the new round of technological and industrial transformation. The "3" refers to three key consumption areas: offshore duty-free shopping, health care and education. We aim to build a strong brand for offshore duty-free shopping, enabling Chinese consumers to access high-quality, cost-effective duty-free goods. We will develop Boao Hope City, also known as the Boao Lecheng International Medical Tourism Pilot Zone, into a world-class hub for global medical resources, where more patients from around the world can access cutting-edge pharmaceuticals, medical devices and health care services under special regulatory policies. We will promote the Study in Hainan initiative, allowing more students to access high-level international education without going abroad. In fact, many excellent independent and joint-venture education programs are already operating in the province. The "2" refers to the development of two key pillars on the island: talent and technological innovation. We will accelerate opening up and cooperation to attract top talent from around the world and empower the building of a modern industrial system through technological innovation. As mentioned earlier, this modern industrial system is being developed through enhanced innovation capacity and the establishment of innovation platforms.

We sincerely invite investors from around the world to come and invest in Hainan. We are committed to providing strong services and support to ensure your success in doing business, attracting talent and achieving growth here. Thank you.

CNR:

To further implement the zero-tariff policy for imported goods and ease trade restrictions in line with the opening up policies of the Hainan FTP, what measures will customs take to ensure efficient and convenient supervision? Thank you.

Wang Lingjun:

Thank you for your question and your interest in the customs work. To better implement the zero-tariff policy for imported goods, ease trade management in line with opening up requirements, and ensure standardized customs supervision over the Hainan FTP, the GACC has formulated the Supervision Measures of the Customs of the People's Republic of China for the Hainan Free Trade Port, along with a set of supporting regulations. These measures clearly define the customs supervision requirements for the movement of goods between the FTP and overseas markets, between the FTP and the Chinese mainland, as well as within the FTP itself after the island-wide special customs operations are launched. They provide institutional support for targeted, efficient and secure customs regulation. The overarching principle is that what is liberalized at the "first line" must be effectively regulated at the "second line," ensuring both targeted regulation and high efficiency. Specifically, there are two key aspects:

First, regarding imports at the "first line," efforts will be made to further enhance customs clearance facilitation. In accordance with the Hainan Free Trade Port Law of the People's Republic of China, the policy of direct release will be applied, with "direct" referring to immediate clearance without delay. Except for goods that are subject to inspection and quarantine or license management in accordance with the law, customs will implement direct release for zero-tariff imports, bonded goods and other eligible categories. This policy was first piloted in June 2020 in the Yangpu Bonded Port Area, and later expanded to the Haikou Comprehensive Bonded Zone, Haikou Airport Comprehensive Bonded Zone and Yangpu Economic Development Zone. It has significantly improved clearance efficiency and reduced customs clearance costs for enterprises. Once the island-wide special customs operations are in place, the direct release policy will be implemented throughout the entire Hainan FTP.

For outbound movement across the "second line," the focus is on intelligent and efficient regulation. First, customs control channels and non-customs control channels will be established at second-line ports. Customs will supervise three categories of goods through the customs control channels: zero-tariff goods, goods enjoying value-added processing policies, and goods subject to relaxed trade management measures. All other domestically circulated goods will pass through the non-customs control channels and be regulated by Hainan province in accordance with existing domestic circulation rules, thereby facilitating trade between Hainan and the rest of the country to the greatest possible extent. Second, for these three categories of goods, customs authorities will introduce an innovative clearance model of "multiple consignments with consolidated declaration." Under this model, enterprises may first complete the outbound procedures across the second line and then submit a consolidated customs declaration afterward, significantly improving clearance efficiency. In addition, to further streamline the second-line outbound declaration process, customs has significantly reduced the number of required declaration items for enterprises filing customs declarations from 105 to 42.

Next, the General Administration of Customs will continuously improve the customs supervision model to suit the island-wide special customs operation, according to its actual implementation and Hainan's practical needs, with the aim to support Hainan's institutional opening-up and empower the high-quality development of the Hainan Free Trade Port (FTP). Thank you.

Hainan Broadcasting Station (HMG):

The spokesperson just mentioned that the island-wide special customs operation will begin the new stage and long term construction of the Hainan FTP. What measures and actions will be taken after its launch to support the FTP in further expanding its opening-up? Thank you.

Wang Changlin:

Thank you for your question. As you said, the island-wide special customs operation will be a new starting point for the construction of the FTP. Next, we will follow the arrangements of the Master Plan for the Construction of Hainan Free Trade Port and, in collaboration with Hainan province and the relevant departments, continue to improve the policy and institutional system that is compatible with a high-standard FTP. We will adhere to goal-oriented and problem-oriented approaches, and continuously accelerate the pace of opening-up. These efforts can be summarized in the six following areas:

First, accelerating the construction of a trade management system that is safe and convenient and wonderfully facilitates the imports and exports of goods. On one hand, we will further expand the scope of zero-tariff goods to strengthen and expand the goods trade. On the other hand, in order to adapt to the development of service trade, we will accelerate the opening-up of service industries such as tourism, education and medical care, and promote the policy of "granting both market access and operational permits."

Second, focusing on creating an open, transparent and predictable investment environment. We will further relax market access for foreign investment by introducing a new round of special measures to expand market access, deeply implementing the reform to establish a commitment-based access system, and accelerate the establishment of an investment facilitation system with a focus on process supervision.

Third, gradually establishing a financial policy system that is compatible with open development. We will improve and perfect the multi-functional free trade account system, and further enrich account functions and application scenarios. We will orderly expand the opening-up of the financial sector to both domestic and foreign entities, and actively carry out pilot explorations such as cross-border asset management business.

Fourth, implementing more convenient entry and exit management policies. We will further ease restrictions on personnel entry and exit. We will implement more relaxed temporary entry and exit policies for business personnel and convenient work visa policies, and further improve the residence permit system.

Fifth, establishing a more free and open shipping system. We will accelerate the construction of China's Yangpu Port as a port of registry, continuously optimize ship survey and management policies, and enhance the capacity of shipping services. We will further relax airspace control and air rights restrictions, and actively advance the opening of the Seventh Freedom of the Air.

Sixth, building an efficient, convenient and secure cross-border data flow mechanism. This is the current demand of many business entities and is necessary for promoting the development of digital trade. We will promote the orderly expansion of the opening-up of communication resources and related businesses, adjust and improve the negative list for outbound data management, accelerate the construction of international communication service gateways and cross-border submarine optical cables, and actively cultivate and develop the digital economy. Thank you.

Shou Xiaoli:

Let's continue. There are two reporters raising their hands. We'll take the last two questions, please.

National Business Daily:

In recent years, the Ministry of Finance (MOF) has introduced a series of supportive tax policies to facilitate the construction of Hainan FTP. How will the tax system reform be further promoted after the launch of the island-wide special customs operation? Thank you.

Liao Min:

Thank you for your question. The issue is of great concern to everyone. As we all know, the construction of the Hainan FTP will inevitably involve the reform of the tax system. The overall requirement for the tax system reform, as proposed in the Master Plan for the Construction of Hainan Free Trade Port, is to implement zero tariff, low tax rates and a simplified tax system in steps and stages. This policy will ultimately form a tax system with international competitiveness to support the construction of the Hainan FTP. After the release of the master plan, the MOF has successively introduced multiple tax policies, such as offshore duty-free shopping, zero tariff on some imported goods, and preferential corporate income tax and individual income tax.

After implementing the island-wide special customs operation, the MOF will take into account the actual progress of the FTP construction and the need to advance higher-standard opening-up to the outside world. We will continue to deepen tax system reform to ensure that policy effectiveness is increasingly enhanced and policy benefits are continuously delivered. This will involve the following five aspects:

First, we will continue to implement the current preferential policies on corporate and personal income tax, in order to attract more high-end talent and high-quality enterprises aligned with the needs of free trade port development to settle in Hainan and contribute to its growth.

Second, we will continue to expand the range of zero-tariff goods and adjust the list of taxable imported goods in a timely manner.

Third, we will continue to implement the offshore duty-free shopping policy, and further refine and adjust the policy arrangements to better meet the diverse shopping needs of consumers, supporting Hainan's development as an international tourism and shopping destination.

Fourth, we will actively explore relevant tax policies for imported goods consumed by the island's residents, and when appropriate, carry out a positive list management system, which will allow residents to purchase certain imported products tax-free. We will launch this pilot work as soon as possible to enhance the sense of gain among the island's residents.

Fifth, we will steadily advance research into reforming sales tax. Sales tax mainly involves the consolidation of multiple taxes and fees such as value-added tax, consumption tax, vehicle purchase tax, urban maintenance and construction tax, and the education surcharge. Given its wide scope and complexity, it requires consideration of both the current situation and long-term policy arrangements. We will promote research into simplifying the tax system in line with the principles of prudence, orderly progress and phased implementation, and conduct pilot tests in a timely manner based on the development of Hainan FTP.

Here, I would also like to thank the media for their interest in and support for financial work. Thank you.

Shou Xiaoli:

The last question, please.

China News Service:

We have noticed that Hainan has always attached great importance to institutional integration and innovation. Could you share some successful cases with us? What are the next steps to promote institutional integration and innovation in relation to the special customs operation? Thank you.

Liu Xiaoming:

Thank you for your questions. Hainan regards institutional integration and innovation as a key driver for promoting high-level openness and implementing reforms. It has cultivated 20 batches comprising 166 innovative cases, more than 40 of which have been recognized by relevant central departments and promoted nationwide. These efforts have fully demonstrated Hainan's role as a pioneering reform and opening up pilot zone. For example, Hainan was the first province in the country to implement a province-wide credit restoration system featuring "one application, one online process," enabling business entities to restore their credit scores after being blacklisted for dishonest behavior without needing to visit in-person. This promotes the effective functioning of both incentive mechanisms for trustworthy behavior and punitive measures for dishonest behavior. We have also introduced a series of reform measures aimed at offering one-stop services, covering matters with the characteristics of the free trade port, such as services for foreigners, foreign enterprises and foreign direct investment. For example, we have taken the lead in the country in establishing a unified, open and transparent provincial platform for land information promotion — known as the "Land Supermarket." The platform enables enterprises to browse, select and acquire land entirely online through "cloud-based land browsing, selection and purchasing." This makes the acquisition of land more efficient, convenient and reassuring for enterprises, while also effectively addressing the issues of "projects without land" and "land without projects." For another example, we have launched and operated multifunctional free trade accounts, explored the establishment of centralized cross-border capital operation centers, developed an innovative full-process supervision model for zero-tariff imported goods, took the lead in implementing electronic tags for duty-free cosmetics, and created a "credit + smart technology" port supervision model. All of these represent valuable explorations in innovating supervision and service models for the upcoming special customs operation.

Looking ahead, we will continue to regard institutional integration and innovation as the "golden key" to driving development and addressing problems. Focusing on the institutional arrangements for the special customs operation of Hainan FTP, we will actively engage in explorations and practices, while promptly summarizing and refining reform and innovation practices in areas such as institutional design, governance system, legal safeguards and supervision models, striving to build a special customs supervision zone with international competitiveness and influence. At the same time, we will use high-standard economic and trade rules as a benchmark, and strengthen the alignment and integration of rules, regulations, governance and standards. We will take a well-planned approach to reform, opening up and high-quality development before and after the special customs operation. Efforts will also be made to cultivate and introduce more innovative achievements from institutional integration that have national demonstrative value and influence as well as distinct free trade port features, further promoting new momentum, new advantages and new vitality in Hainan FTP.

Here, I would also like to express my sincere gratitude to the media for your attention, interest and support for the development of Hainan FTP and the high-quality development of Hainan. Thank you.

Shou Xiaoli:

Thank you, all the speakers and the media. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Yan Xiaoqing, Xu Kailin, Wang Xingguang, Gong Yingchun, Liu Caiyi, Liu Sitong, Mi Xingang, Wang Yiming, Yuan Fang, Zhang Junmian, Huang Shan, Li Huiru, Zhang Rui, Wang Qian, David Ball, Tudor Finneran, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Li Bin, deputy administrator and spokesperson of the State Administration of Foreign Exchange (SAFE)

Mr. Jia Ning, director general of the Balance of Payments Department of SAFE

Mr. Xiao Sheng, director general of the Capital Account Management Department of SAFE

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO 

Date:

July 22, 2025

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we are joined by Mr. Li Bin, deputy administrator and spokesperson of the State Administration of Foreign Exchange (SAFE), who will brief you on China's foreign exchange receipts and payments data in the first half of 2025 and take your questions. Also attending today's briefing are Mr. Jia Ning, director general of the Balance of Payments Department of SAFE, and Mr. Xiao Sheng, director general of the Capital Account Management Department of SAFE.

Now, I will give the floor to Mr. Li for his introduction.

Li Bin:

Good afternoon, everyone. First of all, I would like to express my heartfelt gratitude for your ongoing interest in and support for the administration of foreign exchange. I would like to take this opportunity today to first introduce the relevant situation of China's foreign exchange receipts and payments in the first half of 2025, and then answer your questions together with my colleagues.

Since the beginning of 2025, the external environment has become more complex and volatile, unilateralism and protectionism have risen, the momentum of global economic and cross-border trade growth has weakened, and international financial market volatility has increased. China has accelerated the implementation of more proactive and effective macro policies, focused on expanding domestic demand, and effectively responded to external challenges, while the overall economic operation has been stable and improving, with high-quality development continuously consolidated. The foreign exchange market has operated smoothly, showing strong resilience and vitality and outperforming market expectations. There are five characteristics:

First, the scale of foreign-related receipts and payments has steadily increased, when viewed from the perspective of total volume. In the first half of the year, the cross-border revenue and expenditure of non-banking sectors, including enterprises and individuals, totaled $7.6 trillion, a year-on-year increase of 10.4%, setting a new historical high for the same period, among which the proportion of RMB in cross-border receipts and payments reached 53%. In the first half of the year, foreign exchange settlement and sales by banks totaled $2.3 trillion, a year-on-year increase of 3%, the second highest in history for the same period. This data indicates that the cross-border trade and investment activities of the country continued to remain active.

Second, cross-border capital continued to show a net inflow, when seen from the gap between revenue and expenditure. In the first half of the year, China's non-banking sectors, including enterprises and individuals, recorded a net cross-border capital inflow of $127.3 billion, continuing the net inflow trend since the second half of the previous year, with a quarter-on-quarter increase of 46% in the second quarter. In terms of categories, the net inflow under goods trade remained high in the first half of the year, foreign capital increased holdings of domestic stocks and bonds, and the situation with service trade and the repatriation of profits by foreign-funded enterprises was stable and orderly.

Third, the supply and demand of the Chinese foreign exchange market has maintained a basic equilibrium. In the first half of the year, the bank foreign exchange settlement deficit was $25.3 billion, but there were significant changes between months. Specifically, the foreign exchange settlement and sales were in deficit in January, tended to be basically balanced from February to April, and turned into a surplus in May and June, with the trading behavior of enterprises and individuals being generally rational and orderly. In the first half of the year, the forex settlement rate, which measures the willingness to settle foreign exchange, was 60%, remaining stable year on year; and the forex sales rate, which measures the willingness to purchase foreign exchange, was 65%, down 3 percentage points year on year.

Fourth, forex transactions remained active. In the first half of the year, total transaction amount in the domestic yuan forex market reached $21 trillion, up 10.2% year on year. Specifically, the volumes of spot and derivative transactions were $7.4 trillion and $13.6 trillion, respectively, accounting for 35% and 65% of the total, respectively.

Fifth, the scale of China's foreign exchange reserves remained stable. At the end of June, the balance of foreign exchange reserves stood at $3.3174 trillion, an increase of $115.1 billion from the end of 2024. In the first half of the year, non-U.S. currencies appreciated against the U.S. dollar, and global financial asset prices generally rose. Under the combined effect of factors including exchange rate translation and asset valuation changes, the scale of China's foreign exchange reserves remained stable while increasing.

Overall, in the first half of the year, China's foreign exchange market effectively mitigated risks from external shock and demonstrated generally stable performance. Next, SAFE will firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, adhere to the general principle of seeking progress while maintaining stability, balance development and security, and continuously improve the "more convenient, more open, more secure, and smarter" foreign exchange management system to promote high-quality economic development and high-standard opening up. That concludes my brief introduction on the foreign exchange receipts and payments in the first half of the year. Next, my colleagues and I are happy to answer your questions. Thank you.

Xing Huina:

The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

China Securities Journal:

Mr. Li just mentioned that the performance of China's foreign exchange market in the first half of the year was better than expected. Could you please provide more details on this, and what measures has SAFE taken to prevent cross-border capital flow risks? Thank you.

Li Bin:

Thank you for your interest in the foreign exchange situation. I will answer this question. Since the beginning of this year, the foreign exchange situation has been complex and volatile, with a significant increase in risks and challenges. Facing external shocks, China's foreign exchange market withstood the pressure and maintained stable operation, demonstrating strong resilience. Just now, I introduced five characteristics of foreign exchange receipts and payments. Next, I will add three more aspects.

First, the RMB exchange rate has remained basically stable. In the first half of the year, the renminbi appreciated by 1.9% against the U.S. dollar. The exchange rate fluctuated between 7.15 and 7.35, remaining stable at a reasonable and balanced level, while also playing a role in adjusting the macroeconomy and acting as an automatic stabilizer for the international balance of payments.

Second, the foreign exchange market expectations have remained stable. From the perspective of foreign exchange market indicators such as forwards and options, there is no significant unilateral expectation of RMB appreciation or depreciation in the current market. Market transactions are rational and orderly. When the RMB weakens, corporate entities increase their foreign exchange settlements; and when the RMB strengthens, companies increase their foreign exchange purchases. Overall, there has been no irrational trading behavior, such as chasing highs and selling lows.

Third, the international balance of payments has remained balanced. Since the beginning of this year, China's current account surplus has increased steadily and is generally at a reasonable and balanced level. Corresponding to the current account surplus, the non-reserve financial account has shown a deficit, roughly equivalent to the size of the surplus. The overall balance of payments is characterized by self-balancing. All types of investments in China are generally improving. From January to May, direct equity investment into China increased by 16% year on year, with net inflows of $31.1 billion. Securities investment into China also saw net inflows of about $33 billion, reversing the net outflow trend observed in the second half of last year. Overseas investment is progressing in an orderly manner. From January to May, direct equity investment abroad remained stable at $51.9 billion, while outward securities investment has remained active.

The foreign exchange management department has taken proactive measures to prevent and mitigate external risks, with a consistent focus on maintaining the stable and healthy operation of the foreign exchange market. We adhere to a managed floating exchange rate system based on market supply and demand, maintain the flexibility of the RMB exchange rate, and promote market supply and demand balance through price mechanisms. We continue to optimize the supply of foreign exchange policies, deepen reforms and opening up in the foreign exchange field, and enhance the level of facilitation of cross-border trade and investment and financing. At the same time, we have also strengthened the monitoring and early warning systems for cross-border capital flows, taken firm measures to prevent the market from unilateral divergence of expectations and cracked down severely on illegal and irregular activities in foreign exchange markets. In the first half of this year, over 400 foreign exchange violations were investigated and handled, and we cooperated with public security organs to punish more than 180 underground bank counterparties, effectively maintaining orderly foreign exchange market conditions. Overall, policies to stabilize the market and expectations have achieved positive results. Thank you.

CCTV:

As a major open economy, China's balance of payments situation has received widespread attention. Could you introduce the characteristics of China's international balance of payments in recent years? Thank you.

Li Bin:

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

Jia Ning:

Thank you for your interest in the balance of payments situation. The balance of international payments is a summary and record of various economic transactions between residents and non-residents. It includes the current account, which records cross-border goods trade, service trade and investment income, and the capital and financial accounts, which record cross-border investment and financing. Through the balance of international payments and international investment position statement, a country's external economic development and internal and external economic balance can be comprehensively reflected. I will share two aspects with you regarding the changes in China's current account, capital account and financial account in recent years:

First, in recent years, China's current account has been operating steadily. China's current-account surplus mainly comes from surplus in goods trade. Since 2020, China's trade surplus in goods has increased, which is attributed to changes in internal and external factors. In recent years, global demand for goods has increased, with an average annual growth rate of 5.8% in global goods imports from 2020-2024, higher than the average annual growth rate of 0.7% from 2015-2019. Driven by this, China's exports have grown rapidly, and imports have also increased. According to preliminary statistics, in the first half of this year, the trade in goods under the balance of payments framework increased by 2.4% year-on-year. In addition, the trade in services has become more active, and the overall deficit has narrowed. China's international competitiveness in producer service trade such as computer information services and commercial services has improved. At the same time, China continues to optimize services for foreigners coming to China and expand visa facilitation, which has increased the popularity of China as a tourist destination for foreign visitors. Supported by this, in recent years, China's trade in services receipts have steadily expanded, and payments have maintained steady growth, leading to an overall narrowing of the deficit. In the first half of this year, trade in services receipts increased by 13% year-on-year, with cross-border travel receipts surging by 42%. Meanwhile, trade in services payments grew by 2%, leading to a decrease of 14% in the service trade deficit. Furthermore, China's investment income deficit has gradually declined from the high level in 2022, which has also contributed to promoting stability of the current account. From January to May this year, investment income continued to improve, with foreign investors' returns in China increasing by 17% year-on-year, and China's overseas investment income increasing by 12%, keeping the investment income deficit basically stable.

Over the past three years, the ratio of China's current account surplus to gross domestic product (GDP) has been around 2%. In the first quarter of this year, the current account surplus reached $165.4 billion. Preliminary estimates suggest that the surplus narrowed in the second quarter. These suggest that the surplus-to-GDP ratio generally remains within a reasonable and balanced range.

Second, the deficit in China's capital and financial accounts has contributed to the accumulation of external assets, with China's balance of payments maintaining a stage of equilibrium. A current account surplus signifies that China obtains capital inflows from abroad through exports of goods. Capital inflows are also generated by foreign direct investment(FDI) from overseas entities, as well as their purchases of domestic stocks and bonds. At the same time, various domestic entities such as enterprises and financial institutions also generate external assets through capital deployment such as outward investments. From the perspective of the macroeconomy and balance of payments, the growth in the current account surplus will inevitably entail a corresponding expansion in the capital and financial account deficit. Therefore, expansion of the capital and financial account deficit cannot be simply interpreted as an increase in capital outflow pressure. Based on China's conditions, the widening deficit in the capital and financial accounts in recent years has mainly been due to the increase in outward investment by domestic entities, while foreign investment in China has generally maintained net inflows.

Investment in China by overseas institutions has given rise to China's external financial liabilities, while investments by domestic entities abroad have formed China's external financial assets. As of the end of March this year, China's external financial liabilities were $7.1 trillion, reflecting the effectiveness of our efforts in utilizing foreign capital and attracting foreign holdings of RMB-denominated assets. During the same period, China's external financial assets amounted to $10.7 trillion, with diverse asset types and holding entities. After offsetting assets against liabilities, net assets stood at $3.6 trillion, which also reflects the results of our active participation in international economic circulation.

Looking ahead, China's economic structure will continue to improve; internal and external equilibrium will be strengthened; and the two-way financial market opening will be advanced steadily. These will support a basic equilibrium of balance of payments. That's all for my introduction. At the end of March and September each year, we release the "China Balance of Payments Report" on SAFE's official website, which is available for your reference. Thank you.

Dazhong Daily:

We are aware that SAFE has been continuously advancing the facilitation of cross-border trade, investment and financing. What progress has been made in the first half of the year? And in what aspects has it brought convenience to enterprises? Thank you.

Li Bin:

Thank you for your questions. I'll take these. Your question involves many foreign-funded and foreign trade enterprises. We have been working hard to facilitate cross-border trade, investment and financing. In recent years, SAFE has adhered to the fundamental purpose of the financial sector serving the real economy, continuously deepened reform and opening up in the foreign exchange sector, and strengthened the supply of high-quality foreign exchange policies to promote the steady development of foreign trade and foreign investment. Concerning your questions, I would like to introduce the work in the first half of the year from three aspects:

First, we have expanded the coverage of trade facilitation policies. We have advanced high-level opening pilot programs for cross-border trade, and implemented facilitation policies for foreign exchange receipts and payments for high-quality enterprises. These policies now cover more small and medium-sized enterprises (SMEs) including specialized and sophisticated enterprises that produce new and unique products. In the first half of the year, transactions totaling over $700 billion were facilitated, with a year-on-year increase of 11%. We have actively supported the development of new business forms, such as cross-border e-commerce and comprehensive foreign trade services. We have encouraged more banks and payment institutions to shift from traditional trade verification methods toward technology-enabled, batch automated verification of electronic orders, providing efficient, convenient and safe foreign exchange settlement services for small, micro, and medium-sized cross-border e-commerce business entities. In the first half of the year, 510 million such transactions were processed nationwide.

Second, we have promoted the facilitation of cross-border investment and financing. There are several aspects to this. First, we have enhanced the convenience for foreign investment in China. By the end of 2024, we have piloted the cancellation of registration requirements for domestic reinvestment by foreign-invested enterprises in 19 locations, benefiting more than 600 enterprises and effectively improving their capital utilization efficiency. The registration of preliminary expenses for foreign investment in China has been cancelled. Foreign investors can directly open accounts in banks to receive preliminary expense funds when establishing foreign-invested enterprises in China, significantly shortening the fund turnover time and accelerating project implementation. Relevant policies have already been publicly solicited for opinions. Additionally, we have facilitated the allocation and management of funds between domestic and foreign member enterprises of multinational companies. In March this year, pilot programs for the integrated domestic and foreign currency fund pool business of multinational companies were further expanded to include 16 provinces and cities, including Tianjin, Hubei, Xinjiang, and Xiamen. Multinational companies were allowed to directly conduct partial capital account change transactions at banks. According to feedback, this can shorten business processing time by about 50%. In June, we also allocated $3.08 billion in investment quotas under the Qualified Domestic Institutional Investor (QDII) program to better meet the public's demand for investing in overseas financial products.

Third, the effectiveness of reforms in foreign exchange business operations continued to expand steadily. Through reforms in foreign exchange business operations, banks were able to streamline business processes, such as customer identification, document verification and risk monitoring. These reforms enable banks to allow high-quality customers to carry out foreign exchange transactions directly based on enterprise instructions, replacing the previous practice of reviewing documents individually. As a result, the average processing time has been reduced by more than 50%, bringing real convenience to enterprises and reducing banks' burden of verifying transactions as they are processed. Six new banks initiated reforms related to foreign exchange business operations during the first half of this year. To date, 22 banks have participated in such reforms, including large state-owned commercial banks, national joint-stock commercial banks, city commercial banks and foreign-funded banks, with business reach expanding nationwide. To date, participating banks have assessed over 20,000 first-class customers, a 23% increase compared with the end of 2024. Since the beginning of this year, the volume of cross-border revenue and expenditure transactions processed directly on customers' instructions has exceeded $200 billion.

Next, SAFE will strengthen reforms and innovation in foreign exchange management, provide greater convenience to trustworthy and compliant entities, and continuously increase the benefits felt by enterprises and the public.

That is all from me. Thank you.

Economic Daily:

We understand that the Notice of the State Administration of Foreign Exchange on Matters Related to Deepening the Reform of Cross-border Investment and Financing Foreign Exchange Management (Draft for Public Comments) has concluded its public consultation period. Could you please provide a brief update on the key developments and outline the next steps? Thank you.

Li Bin:

I'd like to invite Mr. Xiao to answer this question.

Xiao Sheng:

Thank you for your question. Recently, Administrator Zhu Hexin announced several supportive reform policies. The notice you inquired about is also one of the initiatives to implement these policies. It includes nine measures covering three areas: investment, financing and payments. Some measures have already been piloted in some regions with positive results, and will be promoted nationwide. Here, I will focus on introducing three key policies.

The first policy is to facilitate scientific research institutions in receiving overseas funds, commonly referred to as "Kehuitong" (Research Remittance Connect) for short. The policy allows eligible research institutions to receive and use funds remitted from overseas once they have registered their basic information with the bank. In its early stage, the Kehuitong pilot program was rolled out in 16 cities, including Beijing, Hefei, Wuhan and Shenzhen, and has achieved positive results. This time, the pilot program will be expanded nationwide, further streamlining channels for overseas fund inflows, and providing effective policy support to advance international scientific research cooperation.

The second policy aims to facilitate cross-border financing for tech innovation enterprises. Earlier, we launched a pilot program across the country to facilitate cross-border financing for tech innovation enterprises. Eligible tech innovation companies in 17 provinces and cities, including Guangdong and Sichuan, are allowed to borrow up to $10 million in external debt independently. Meanwhile, the quota for other provinces and cities is set at $5 million. This reform standardized the borrowing quota for tech innovation enterprises at $10 million for independent external debt, while increasing the limit to $20 million for select top-performing enterprises under an innovation points system. This will further help tech innovation enterprises expand their financing channels, effectively support them in making better use of both domestic and international markets, reduce financing costs, and improve financing efficiency.

The third policy is to make domestic reinvestment by foreign-invested enterprises more convenient. Building on an earlier pilot program, we plan to fully abolish the registration requirement for domestic reinvestment of foreign direct investment nationwide. This will enable enterprises to transfer reinvestment funds directly to relevant accounts, reducing operational costs and capital flow time, thereby improving investment efficiency.

The public consultation phase for this notice has now been completed. We're now intensifying efforts to review and analyze these collected opinions and suggestions. Moving forward, we will formally issue the notice as soon as possible based on the full incorporation of opinions from all parties. Thank you.

CNR:

In recent years, foreign exchange management authorities have introduced policies like the integrated domestic and foreign currency capital pool. We recognize that integrated management of domestic and foreign currencies is becoming a key approach to managing cross-border capital flows. Could you please share considerations for promoting integrated domestic and foreign currency management? Thank you.

Li Bin:

Thank you for your interest in and attention to foreign exchange administration. I will answer your question. In recent years, cross-border trade and investment activities have become more dynamic, and the cross-border use of the RMB has gradually increased. This has increased the requirements for the coordinated management of domestic and foreign currency transactions. For enterprises and other market entities, cross-border payments and receipts in both domestic and foreign currencies serve as tools for pricing and settlement, with the only difference being the choice of currency. They are essentially both means of international payment. Clarifying the requirement to apply “uniform management standards to businesses of the same type” has allowed banks and enterprises to better understand and implement policies, and also enhanced the efficiency and convenience of cross-border capital operation and management. To this end, SAFE has worked closely with the People’s Bank of China and other departments to actively explore the integrated management of domestic and foreign currencies and the streamlining of business processes in both policy formulation and implementation.

First, we have incorporated the concept of integrated domestic and foreign currency management into policy formulation. Let me give you a few examples. For multinational corporations, we have gradually developed a unified policy framework for domestic and foreign currency cash pools, enabling the integration of both types of funds to better meet their cross-border capital management needs. For domestic enterprises listed overseas, the relevant fund management policies allow them to freely choose whether to repatriate proceeds from fundraising, equity reduction and share transfers in RMB or a foreign currency, thereby supporting efficient financing and flexible use of funds. Another example is the fund management policies for Qualified Foreign Institutional Investor (QFII) and RMB Qualified Foreign Institutional Investor (RQFII), direct access to the interbank bond market and panda bond issuance have achieved consistency and uniformity in the management rules for both domestic and foreign currencies.

Second, we have promoted the integrated management of domestic and foreign currencies in cross-border business processes. Through business integration, process reengineering and data sharing, we have achieved a unified set of rules and one-stop processing. A unified set of rules means establishing consistent standards for cross-border transactions in both domestic and foreign currencies, aligning data standards and cross-border regulations, and thereby reducing the complexity of tasks such as opening accounts and settling payments. One-stop processing means that regardless of whether domestic or foreign currency is used, the registration of direct investment, securities investment and debt-related transactions can all be handled by either SAFE or banks, significantly improving the efficiency of business processing.

Next, we will work with the People's Bank of China to further advance the integrated management of domestic and foreign currencies on a broader scale, promote greater facilitation of cross-border trade and investment and financing, and help foster a more favorable business environment for foreign-related enterprises. Thank you.

National Business Daily:

In the first half of the year, foreign investors increased their purchases of RMB-denominated bonds and stocks. Could you please share more information on this? In addition, what is your outlook on the future trend of foreign investment in RMB assets? Thank you.

Jia Ning:

Thank you for your questions. Let me first give a brief overview of recent developments regarding foreign investment in RMB-denominated stocks and bonds. Since the beginning of 2025, foreign investors' overall allocation to RMB-denominated assets has remained relatively stable. The scale of foreign investment in RMB bonds has increased, with foreign investors now holding more than $600 billion worth of onshore RMB bonds, which is close to a historical high. Meanwhile, foreign investment in the domestic stock market has overall been improving. In the first half of this year, foreign investors purchased a net total of $10.1 billion in domestic stocks and funds, reversing the net selling trend seen over the past two years. In May and June in particular, the scale of net purchases increased to $18.8 billion, indicating a strengthened global willingness to allocate capital to the domestic stock market.

According to our assessment, there remains stable and sustainable growth potential for foreign investment in RMB assets in the future. Currently, foreign investors hold approximately 3% to 4% of the market value of onshore bonds and stocks. Supported by multiple positive factors, foreign investment in RMB assets is expected to continue increasing gradually.

First, China's sound economic fundamentals have created a stable macro environment for foreign investment. As the effects of policies to expand domestic demand continue to emerge, the steady and positive momentum of the economy is expected to be further consolidated. Recently, several major international investment banks have expressed optimism about China's development prospects and have upgraded their ratings on Chinese assets from neutral to overweight.

Second, the high-quality development of China's financial markets has created a favorable policy environment for foreign investment. China remains committed to high-standard opening up, continuously improving the mechanisms for financial market connectivity, expanding investment channels, and optimizing the investment environment. These efforts have made it significantly more convenient for foreign investors to participate in China's financial markets. Meanwhile, China has built a relatively complete and deep financial market system. The market capitalization of both its bond and stock markets ranks second in the world. With a wide variety of financial products and strong liquidity, China offers foreign investors diversified options for RMB asset allocation.

Third, the growing global demand for diversified asset allocation has created new development opportunities for foreign investment in China. In recent years, international financial markets have experienced increased volatility, and investors generally believe that more diversified and dispersed asset allocation is needed on a global scale. The value of the RMB has remained stable, and RMB assets have demonstrated relatively independent performance in terms of returns. They have become an important choice for global investors seeking to diversify risk and enhance returns. A recent survey conducted by the Official Monetary and Financial Institutions Forum (OMFIF) of 75 central banks worldwide found that 30% plan to increase their allocation in RMB assets.

Overall, as China continues to advance financial reform and opening up, its domestic financial markets will become more integrated into the global financial system, and RMB assets will become increasingly attractive. Thank you.

Phoenix TV:

Recently, the State Council made arrangements to replicate and expand pilot measures adopted in the pilot free trade zones. What further steps will SAFE take in this regard? Thank you.

Li Bin:

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

Xiao Sheng:

Thank you for your attention to the reform work of pilot free trade zones. SAFE has always attached great importance to the development of pilot free trade zones. We have introduced a series of policies and measures to advance high-standard opening up and high-quality development in these zones. In 2022, SAFE launched high-standard opening-up pilot programs for cross-border trade and investment in certain areas of the pilot free trade zones in Shanghai, Guangdong, Hainan and Ningbo. Some of these pilot policies were later expanded to Beijing, Jiangsu and other provinces and cities.

Recently, to further implement the strategy of upgrading pilot free trade zones and to release the benefits of institutional innovation on a larger scale, SAFE plans to extend its series of innovative policies to more pilot free trade zones nationwide. They mainly include the following two aspects:

On the one hand, we will further expand the pilot policies for cross-border trade facilitation. These policies mainly include five measures: supporting banks in optimizing settlement for new forms of international trade, expanding the scope of netting settlement for trade receipts and payments, and facilitating foreign exchange receipts and payments under the current account, among others. The focus is on optimizing business review procedures, reducing documentary requirements, streamlining processing procedures, and helping companies conduct cross-border trade more conveniently.

On the other hand, we will further promote high-standard opening up in cross-border investment and financing. These policies include five measures, such as the pilot program for foreign exchange management for Qualified Foreign Limited Partners (QFLP), allowing banks to directly handle external debt registration, and permitting parent and subsidiary companies in financing and leasing to share external debt quotas. These policies will help further broaden cross-border investment and financing channels, improve efficiency, support stable foreign investment, and promote high-standard opening up. For example, the pilot policy on foreign exchange management for QFLPs is mainly aimed at further supporting and facilitating long-term overseas funds to conduct industrial and real-economy investments in China through private equity, thereby better supporting the development of Chinese enterprises, especially technology-based firms.

Next, SAFE will continue piloting innovative foreign exchange policies in pilot free trade zones, spearheading deeper reforms and high-standard opening up in the foreign exchange sector. We will keep improving financial and foreign exchange services while strengthening cross-border regulatory capacity as China opens wider to the world, supporting the high-quality development of the real economy. Thank you.

Xing Huina:

Please raise your hand if you still have a question. One last question, please.

Securities Times:

Given that the global economic situation remains complex and volatile, with many uncertainties in the external environment, how should we view the outlook for China's foreign exchange market in the second half of the year? Thank you.

Li Bin:

Thank you for your question. Under open conditions, a country's foreign exchange market is influenced by a range of internal and external factors. Overall, high-quality economic development, steady progress in opening up, and the growing resilience of the foreign exchange market are three favorable factors that will help China's foreign exchange market continue to operate smoothly. These conditions also mean the yuan's exchange rate can remain basically stable at a reasonable and balanced level.

First, the fundamentals of the Chinese economy are solid, providing a firm foundation for the stable operation of the foreign exchange market. In the first half of this year, China's GDP grew 5.3% year on year, with further improvements in the economic structure. In the second quarter, domestic demand, including final consumption and gross capital formation, contributed 77% to China's economic growth, up 17 percentage points from the previous quarter. China regards expanding domestic demand as a long-term strategy and continues to promote the integrated development of technological and industrial innovation. The domestic economy has maintained steady improvement, which will provide solid support for the stable operation of the foreign exchange market.

Second, China is continuing to expand high-standard opening up, and a stable balance of payments will be maintained. China remains committed to upholding free trade and multilateralism, with economic and trading partners in more than 150 countries and regions worldwide. At the same time, high-standard institutional opening up will advance steadily, and two-way investment and financing channels in the financial market will continue to expand. This will help promote the coordinated development of foreign trade and cross-border investment and facilitate balanced cross-border capital flows.

Third, China's foreign exchange market has become more resilient, with a stronger capacity to withstand external shocks. At the macro level, the market-based mechanism for the yuan's exchange rate has been further improved, with greater flexibility that allows external pressures to be released in a timely manner and helps maintain supply-demand balance. At the micro level, companies are increasingly aware of maintaining exchange rate risk neutrality, and cross-border transactions in yuan have grown steadily. In the first half of the year, the ratio of corporate foreign exchange hedging and the share of cross-border yuan receipts and payments under trade in goods both reached about 30%, marking record highs. Lower foreign exchange risk exposure helps the market maintain rational trading. At the policy level, the foreign exchange market has accumulated considerable experience in counter-cyclical adjustment and has a wide range of policy tools in reserve. Regulatory effectiveness in the foreign exchange sector has steadily improved, and the ability to prevent and mitigate external shocks has continued to strengthen. We have the confidence and capability to maintain the stable operation of the foreign exchange market.

That's all from me for this question. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to Mr. Li, Mr. Jia and Mr. Xiao, and thank you to all the media for participating. Goodbye, everyone.

Translated and edited by Liu Sitong, Xiang Bin, Xu Kailin, Zhang Tingting, Liu Caiyi, Wang Yanfang, Zhang Junmian, Gong Yingchun, Ma Yujia, Yuan Fang, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Xie Shaofeng, chief engineer of the Ministry of Industry and Information Technology (MIIT)

Ms. Tao Qing, spokesperson of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT

Mr. Xie Cun, director general of the Information and Communications Development Department of the MIIT

Chairperson:

Mr. Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 18, 2025

Zhou Jianshe:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today's conference is a routine release of economic data. We have invited Mr. Xie Shaofeng, chief engineer of the Ministry of Industry and Information Technology (MIIT), to brief you on China's development of industry and information technology in the first half of 2025 and take your questions. Also joining us today are Ms. Tao Qing, spokesperson of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT; and Mr. Xie Cun, director general of the Information and Communications Development Department of the MIIT.

Now, I'll give the floor to Mr. Xie for his introduction.

Xie Shaofeng:

Ladies and gentlemen, good afternoon. First, I would like to thank you for your continued interest in and support for the development of the industry and information technology sector. In the first half of this year, faced with a more severe and complex external environment, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, the industrial and information technology system earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council. Upholding the general principle of pursuing progress while maintaining stability, we have focused on implementing the requirements of stabilizing employment, supporting enterprises, ensuring smooth market operations and strengthening expectations. We have focused on central-local governmental coordination, enhanced inter-departmental collaboration and government-enterprise cooperation. The development of industry and information technology has maintained a sound momentum. New-type industrialization is accelerating, innovation vitality among enterprises continues to be released, and high-quality development has achieved solid results. The sector is moving toward stability, innovation and excellence, laying a solid foundation for achieving the annual targets. Specifically, there are three features.

First, the industrial and information technology sectors have maintained stable operations. Key economic indicators have grown steadily in terms of both scale and growth. In the first half of the year, the added value of industries above designated size increased by 6.4% year on year, showing strong resilience based on a good start in the first quarter. The added value of the manufacturing industry accounted for 25.7% of GDP, remaining largely stable. We accelerated the construction of major engineering projects under the 14th Five-Year Plan, launched large-scale equipment renewal and technological transformation in the manufacturing industry, and saw a 7.5% year on year increase in manufacturing investment. We have strengthened the implementation of enterprise-support policies, cultivated high-quality enterprises and provided assistance to enterprises in difficulty. Market entities have further expanded. In the first five months, the number of industrial enterprises above designated size reached 520,000, an increase of more than 8,000 compared to the end of last year. Profits of manufacturing enterprises above designated size increased by 5.4% year on year. Digital technologies such as 5G and large AI models have developed rapidly. The digital industry's business revenue increased 9.3% year on year, which was 3.4 percentage points higher than the same period last year.

Second, the integration of scientific and industrial innovation has accelerated. We have firmly prioritized high-quality development and new-type industrialization, and promoted the integrated development of all aspects in industrial and information work. We have enhanced innovation and development through integration, continuously fostering new momentum and advantages for development. Innovative applications are being implemented more rapidly. The independently developed AG600 large amphibious firefighting aircraft received its type certificate and production certificate from the Civil Aviation Administration of China. Humanoid robot training centers and datasets are now in operation, with over 5.5 million open-source training data entries being released to accelerate multi-sector applications. Production of industrial and service robots increased by 35.6% and 25.5% year on year, respectively. The scale of the transformation of sci-tech achievements continues to grow. In the first half of the year, nearly 410,000 technology contracts were registered nationwide, with transaction value exceeding 3 trillion yuan, a 14.2% year on year increase. The construction of industrial innovation platforms continues to advance. By the end of June, a total of 33 national-level manufacturing innovation centers had been established, and 241 pilot platforms had been included in the key cultivation bases. China's domestically developed and open-source large AI models are increasingly being applied in industries such as electronics, raw materials and consumer goods, giving rise to new models and business formats. Over 100 types of AI-powered devices — such as AI smartphones, AI computers and AI glasses — have been launched, becoming new drivers of economic growth.

Third, industrial transformation and upgrading has accelerated. We are actively optimizing industrial structures and promoting high-end industry development. In the first half of the year, the added value of equipment manufacturing enterprises above designated size contributed 3.4 percentage points to the overall growth of industrial value-added, accounting for 35.5%, which was a 0.9 percentage point increase year on year. The added value of high-tech manufacturing industries above designated size increased by 9.5% year on year, contributing 23.3% to the overall growth of industries above designated size. Digital transformation is gaining momentum. We designated 26 new pilot cities for new-generation technical transformation in the manufacturing industry and supported 35 more cities in launching digital transformation initiatives for SMEs. Digitalization initiatives have been accelerated in industries such as electronic information, power equipment, light industry, petrochemicals, steel, nonferrous metals and building materials. Industrial green and low-carbon development continues to yield tangible results. Green development is cultivating new growth drivers, with green factories at the national level now accounting for over 20% of total manufacturing output. Energy consumption per unit of industrial added value continues to decline. Positive progress has also been made in industry governance. Seventeen automobile manufacturers have committed to limiting payment terms to no more than 60 days. Profitability has improved in the steel and cement industries. The photovoltaic industry is also witnessing steady improvements in overall technological standards.

Currently, external conditions have become more complex and uncertain, structural contradictions within certain industries have become more pronounced, and some enterprises continue to face operational and production difficulties. However, we must also recognize that various supportive policies are continuing to take effect and reform measures are being rolled out at an accelerated pace. As a result, the certainty in China's high-quality economic development is steadily strengthening, and the fundamentals supporting a stable industrial economy remain unchanged. Moving forward, we will resolutely implement the decisions and directives of the CPC Central Committee, adhere to a people-centered approach, and focus on doing our own work well. We will ensure the stable operation of the industrial economy and earnestly promote the integrated development of scientific and technological innovation with industrial innovation. We will also advance the construction of a unified national market and facilitate the optimization and upgrading of the industrial structure. We will enhance the resilience and security of industrial and supply chains. Using market-oriented thinking and rule-of-law principles, we will strengthen industry governance and accelerate the orderly withdrawal of outdated production capacity. Furthermore, we will continuously improve the quality and efficiency of the industrial economy to make greater contributions to promoting economic recovery and growth and achieving high-quality completion of annual targets and tasks.

That concludes my introduction. Next, my colleagues and I will be happy to take your questions. Thank you.

Zhou Jianshe:

Thanks, Mr. Xie, for your introduction. The floor is now open for questions. Please identify the media outlet you represent before asking your question.

Jimu News:

How did the information and communications industry perform in the first half of the year? What progress was achieved? What are the key priorities for accelerating the industry's development moving forward?

Xie Shaofeng:

Thank you. My colleague Mr. Xie Cun will answer your questions.

Xie Cun:

Thank you for your questions. Since the beginning of this year, the MIIT has adhered to the general working principle of seeking progress while maintaining stability and has steadily promoted the high-quality development of the information and communications industry. In the first half of the year, telecommunications service revenues in China totaled 905.5 billion yuan, up 9.3% year on year, reflecting stable performance across the sector. The main characteristics are as follows.

Network capabilities have been enhanced. By the end of June, China's total number of 5G base stations had reached 4.55 million, with 1.118 billion 5G mobile subscribers, representing a user penetration rate exceeding 79%. The number of ports with gigabit network service capabilities totaled 30.22 million, while gigabit broadband users reached 226 million. The first batch of 10-gigabit optical networks has been installed in 168 communities, factories and industrial parks across the country. As of the end of March, China had 10.43 million standard computing power racks in use, with intelligent computing power reaching 748 EFLOPS, providing an intelligent foundation for massive data computing.

Integrated applications have become more advanced. Since the beginning of this year, emerging services such as 5G New Calling, livestreaming short videos and cloud gaming have flourished, while large language model apps have developed in tandem with AI-powered smart terminals. Digital consumption demand continues to grow, with mobile user internet traffic achieving double-digit growth for six consecutive months. 5G integrated applications have been incorporated into 86 of the 97 major categories of the national economy. More than 18,500 5G+industrial internet projects have been built.

Inclusive services have become more convenient. This year marks the 10th anniversary of China's universal telecommunications service program. Through a decade of implementation, we have connected all Chinese villages to broadband internet and achieved 5G coverage in all rural townships nationwide. Currently, over 90% of administrative villages have 5G access. Focusing on public concerns and expectations, we launched a series of initiatives to provide practical services in the information and communications sector. For example, we completed accessibility and age-friendly improvements to over 3,000 websites and apps for older users. We also organized more than 400,000 digital classes for older adults, helping them enjoy a more comfortable digital life. Online processing now accounts for over 91% of telecom services. Nationwide, 45,000 business outlets provide cross-jurisdictional services, covering all districts and counties to make services more convenient.

Opening up has become more pragmatic. We have steadily and systematically implemented pilot programs to expand market access for value-added telecom services. We have issued guidelines for the first batch of pilot areas, strengthened communication and coordination with foreign-funded enterprises, and so far, 40 foreign-funded enterprises have received relevant approvals. The cumulative number of foreign-invested telecom enterprises in China has exceeded 2,600, up 27% compared to the same period last year. This fully demonstrates the growing attraction of China's telecom market to foreign investment.

Looking forward, our department will continuously promote development, application and research to further drive the high-quality development of the information and communications industry. We will focus on network construction and upgrading, enhance the depth and breadth of 5G and gigabit optical network coverage, and accelerate the pilot deployment of 5G-A and 10-gigabit optical networks. We will deepen a special campaign to upgrade network signals and accelerate the construction of a national integrated computing power network system. Moreover, we will focus on application implementation and promotion. We will thoroughly implement the upgraded action plan for large-scale 5G applications, 5G+ industrial internet projects, and a three-year action plan for the industrial internet identifier resolution system. We will also promote the collaborative integration of the industrial internet and AI. We will drive technological innovation and breakthroughs, enrich the 5G-A product portfolio, deploy high-quality networks, accelerate research and development into 6G technology, and unveil a forward-looking plan to cultivate an industry ecosystem for 6G applications. We will also strengthen research and implementation of opening-up policies, systematically expand foreign access to value-added telecom services, and support increased foreign participation in pilot programs through policy promotion, service optimization, and streamlined management. Thank you.

National Business Daily:

At present, the MIIT is accelerating the construction of multi-tiered cultivation systems for pilot-scale testing platforms in the manufacturing industry. Could you please introduce the efforts made in this aspect? Going forward, what measures will the MIIT take to promote the deep integration of sci-tech innovation and industrial innovation through pilot-scale testing platforms? Thank you.

Xie Shaofeng:

Thank you for your questions and interest in the pilot-scale testing platforms. Pilot-scale testing is a transitional test that transforms samples in the trial production stage into a real production process. It is the "midpoint" on the way to ensuring a smooth transition from technological innovation to market application. The industrial pilot-scale testing capabilities determine industrial technological innovation to a certain extent, as well as the integration of technological innovation and industrial innovation. We have conscientiously implemented the decisions and deployments of the CPC Central Committee and the State Council, focused on policies, standards, platforms, industries and factors, and accelerated the promotion of the innovative development of pilot-scale testing in the manufacturing industry. In terms of policies, we have issued implementation guidelines on the innovative development of pilot-scale testing in the manufacturing industry, and released guidelines for the construction of pilot-scale testing platforms in the manufacturing industry as well as key points on the construction of pilot-scale testing platforms in the manufacturing industry. In terms of standards, we have established a pilot-scale testing standards committee for the manufacturing sector and compiled guidelines for the construction of the standard system. In terms of carrying out work, we have encouraged more than 20 provinces and cities to issue more than 40 special policies, and initially established a work system with cooperation between ministries and provinces and the extensive participation of industry backbone forces.

The pilot-scale testing platform in the manufacturing industry is an important carrier for exporting pilot-scale testing service capabilities and an important focus for promoting pilot-scale testing work in the manufacturing industry. We are accelerating the cultivation of pilot-scale testing platforms in accordance with the concepts of scientific layout, multi-tiered cultivation, standard guidance and network services. Currently, we are mainly focused on six key areas that are urgently needed for national strategies and industrial development, including raw materials, equipment manufacturing, consumer goods, information technology, emerging and future industries, and generic technologies, in order to accelerate the construction of a pilot-scale testing service network in the manufacturing industry and promote the connectivity of pilot-scale testing resources. We have included more than 2,400 pilot-scale testing platforms in the reserves and selected 241 as the first batch of key cultivation targets. We will strive to cultivate more than five national-level pilot-scale testing platforms in the manufacturing sector by the end of this year.

Going forward, we will focus on three aspects to improve pilot-scale testing capabilities so as to empower the deep integration of technological innovation and industrial innovation. First, we will focus on industry layout. We will strengthen the regional characteristics and supporting role of pilot-scale testing platforms through targeting innovative achievement sources and industrial development clusters. Second, we will focus on service efficiency. We will guide pilot-scale testing platforms to enhance service capabilities, release high-level pilot-scale testing platform directories and public service resource lists, and accelerate the open sharing of pilot-scale testing resources. Third, we will focus on the transformation of achievements. We will support the construction and development of pilot-scale testing platforms through multiple channels, accelerate the engineering breakthroughs and industrial application of scientific and technological achievements, and speed up the formation of new quality productive forces. Thank you.

Daxiang News:

Could you introduce the overall situation regarding the development of China's equipment manufacturing industry in the first half of this year? In which fields have there been new highlights and breakthroughs? Going forward, what measures will be taken to further support the high-quality development of the equipment manufacturing industry? Thank you.

Xie Shaofeng:

I would like to invite Ms. Tao to answer your questions.

Tao Qing:

Thank you for your questions. In the first half of this year, China's equipment manufacturing industry maintained good growth momentum, accounting for 35.5% of the value added of industrial enterprises above designated size. It has fully played the role of a stabilizer in industrial development, showing a development trend of improving both quantity and quality, and striving both in excellence and innovation.

Looking at the overall situation of the industry, both production and profits are growing well. The value added of equipment manufacturing increased by 10.2% yearon year, driving industrial enterprises above designated size to increase by 3.4 percentage points. From January to May, profits from the equipment manufacturing industry increased by 7.2% year on year, driving the profit growth of all industrial enterprises above designated size by 2.4 percentage points. Both production and sales of key products are booming. The output of most key monitored products increased year on year, among which railway passenger and freight transport vehicles, special packaging equipment, and charging piles all achieved relatively rapid growth. The cumulative decline in the producer price index (PPI) for five industries narrowed or remained flat from January to May, and the export price index of the equipment manufacturing industry has risen for two consecutive months. Investment in key industries has been on an upward trajectory. Fixed asset investment in manufacturing sectors, such as the railways, shipping, aerospace and other transportation equipment, automobiles and general equipment, achieved double-digit growth. Driven by intensified efforts to promote large-scale equipment renewals and consumer goods trade-ins, investment in the purchase of equipment and tools increased by 17.3% yea on year, with a growth rate 14.5 percentage points higher than the national fixed asset investment, contributing 86% to total investment growth.

There has been a steady flow of major technological breakthrough products, showcasing the vitality of high-quality development across various fields.

First, let's take a look at the achievements in the aerospace field. Aviation equipment has reached new heights of development. The AG600 large amphibious firefighting aircraft has obtained its type certificate and production license from the Civil Aviation Administration of China (CAAC); and the AS700D, the first independently developed electric manned airship, completed its maiden scientific research flight. There are 809 companies registered in the civil unmanned aerial vehicle (UAV) product information system, with over 3.74 million products, playing an important role in emergency rescue, agriculture and forestry protection, and logistics distribution.

Next, let's look at what's happening on the ground. China's automotive industry continues to maintain rapid growth. In the first half of the year, automobile production reached 15.621 million units, up 12.5% year on year, while sales reached 15.653 million units, up 11.4% year on year. Among them, production of new energy vehicles (NEVs) reached 6.968 million units, up 41.4% year on year, while sales hit 6.937 million units, rising 40.3% year on year. NEVs accounted for 44.3% of total new car sales, with cumulative exports totaling 1.06 million units, up 75.2% year on year.

Finally, looking at developments in the maritime sector, the shipbuilding industry is setting new benchmarks for growth. In the first half of the year, the Adora Magic City, China's first domestically built large cruise ship, welcomed over 470,000 tourists. Construction of the second large cruise ship, the Adora Flora City, is progressing smoothly, with the vessel successfully floated and overall construction now 78% complete. Additionally, China delivered its first domestically built 16,000-TEU (twenty-foot equivalent unit) methanol dual-fuel container ship. By deadweight tonnage, China accounted for 51.7% of global ship completions, 68.3% of new orders, and 64.9% of orders on hand.

Looking ahead, we will concentrate on two major actions to drive high-quality development in the equipment manufacturing sector. First, we will launch a new round of growth stabilization measures. We will soon roll out action plans for stabilizing growth across the machinery, automotive and power equipment industries. These plans will boost quality supply capacity, optimize the industrial development environment, and drive effective quality upgrades while appropriately expanding economic output. Second, we will implement initiatives for smart and green transformation. We will release a digital transformation plan for the auto industry. We will also implement digitalization strategies for the machinery and power equipment sectors. Additionally, we will introduce green development guidelines for the aviation and shipbuilding industries. Meanwhile, we will accelerate the development of smart equipment, promote intelligent factories at all levels, and build smart service ecosystems to advance the digital and green development of the equipment manufacturing industry. Thank you.

Xinhua Finance:

In the first half of the year, several digital transformation initiatives were launched across key consumer goods industries, including light industry, pharmaceuticals, food and textiles. Could you share how these industries have developed during this period? What notable achievements have these industries made in their digital transformation? Thank you.

Xie Cun:

Thank you for your questions. We appreciate your interest in the transformation and upgrading of traditional industries like consumer goods manufacturing. The consumer goods industry is one of China's traditional competitive advantages and serves as a vital sector for people's livelihoods. In the first half of this year, consumer goods enterprises above the designated size accounted for 27.1% of total industrial value added and 25.1% of total export delivery value, playing an important role in meeting consumer demand, driving economic growth and expanding exports.

To accelerate digital transformation in this sector, we have identified and published 213 case studies demonstrating increased product variety, improved quality, and enhanced brand building in the smart home and smart health care fields. We have also supported 463 technology renovation projects in the consumer goods sector through ultra-long-term special-purpose treasury bonds. These efforts have yielded significant results in digitalizing the industry. In terms of high-end development, by mid-year, the adoption rate of digital R&D tools among light industry enterprises above the designated size reached 86.2%. At the same time, digital business management systems achieved an 82.3% adoption rate. Improvements in technology integration and flexible manufacturing have laid a solid foundation for the large-scale production of high-value-added products. For instance, domestically produced smart toilets have undergone significant upgrades in function and quality and now account for over 60% of global sales. These high-quality, competitively priced products have enabled the domestic sanitary ware industry to successfully reverse course from relying on overseas purchases to driving export sales. In terms of intelligent transformation, with the application of new technologies such as AI and big data in the pharmaceutical industry, we have seen the emergence of numerous intelligent pharmaceutical production lines and smart drug manufacturing facilities. Some AI-powered pharmaceutical companies have significantly shortened drug development cycles by shifting from trial-and-error methods to precision-driven R&D. In terms of green development, by mid-year, the numerical control rate of key processes in textile companies above the designated size had reached 65.6%, and the penetration rate of digital R&D and design tools came in at 84.3%. With improvements in green upgrades and digital carbon management, average carbon intensity in the textile and apparel industry has dropped by more than 14% over the past two years, reflecting growing efforts to reduce energy use and emissions.

Recently, the MIIT, together with relevant departments, released digital transformation roadmaps for the textile, light industry, food and pharmaceutical sectors. These plans identified 82 typical scenarios such as digital R&D and design, flexible manufacturing and intelligent supply chain management, and promoted targeted intelligent upgrades. Next, we will strengthen overall planning and focus on practical applications. We will identify and promote a group of replicable, scalable digital transformation solutions to address key challenges in enterprise transformation. With the goal of optimizing the ecosystem, we will cultivate a group of high-level service providers and support enterprises in shifting from purely product-based operations to integrated solutions that combine goods with value-added services, advancing the digital development of industry clusters. Additionally, by taking the lead in setting industry standards, we will accelerate the development of high-quality standards for new technologies, products and consumption models, and establish a comprehensive digital transformation standards system, enabling more Chinese standards to lead global industrial development. Thank you.

CMG:

Data shows that industrial value added among enterprises above the designated size grew 6.4%year on year in the first half of 2025, maintaining steady performance. How do you view the current state of the industrial economy? What further measures will be taken to support industrial growth? Thank you.

Xie Shaofeng:

Thank you for your questions. Since the beginning of this year, we've fully implemented policies aimed at stabilizing employment and the economy, as well as initiatives focused on major national strategies and enhancing security capacity in key areas. We've also increased support for a new round of large-scale equipment upgrades and consumer goods trade-in programs. Working closely with local governments, we have intensified efforts in policy support, project implementation, supply-demand matching and business services. By leveraging the solid foundation, strong resilience and vibrant innovation of China's industrial economy, we have maintained steady progress. In the first quarter, the value added of industries above the designated size increased 6.5% year on year, while in the second quarter it increased 6.3% year on year, building on already high levels from last year.

First, key industries are providing strong support, with electrical machinery, automobiles, electronics, general equipment, chemicals and non-ferrous metals recording rapid growth, further increasing their contribution to the expansion of industrial enterprises above designated size. The equipment manufacturing and high-tech manufacturing industries have achieved both an increase in quantity and quality, with the value added accounting for 35.5% and 16.4% of industrial enterprises above designated size, respectively. Profits in electronics, electrical machinery, and general equipment have risen by more than 10%. Second, major industrial provinces are playing a leading role, with all 31 provinces maintaining growth in industrial value added of enterprises above designated size and achieving year-on-year increases. Among them, Fujian, Anhui, Henan, and Hunan achieved growth of more than 8%. Eight major industrial provinces posted profit growth rates higher than the national average, with Henan, Hunan, Hubei, and Jiangsu achieving double-digit growth.

At the same time, the industrial economy still confronts significant challenges in maintaining stable performance and achieving high-quality development. External uncertainties require strengthened responses, and structural problems in the industry need to be properly resolved. Moving forward, we will continue efforts to consolidate foundations, improve quality, cultivate momentum and optimize the environment, focusing on the following key tasks.

First, we will consolidate the basic foundation of the industrial economy. We will implement a new round of work plans to stabilize growth in 10 key industries, including steel, non-ferrous metals, petrochemicals and building materials. We will encourage key industries to focus on structural adjustment, supply optimization and the elimination of outdated production capacity. Specific work plans will be released successively in the near future. We will support key industrial provinces in playing a leading role through implementing supportive policies, cultivating new growth drivers, promoting industrial transformation, improving operational quality and efficiency, and responding to external risks. Through intensified efforts, we will consolidate the foundation for stable industrial economic operation.

Second, we will focus on improving development quality. We will steadily advance the integrated development of technological and industrial innovation, coordinate the advancement of industrial foundation reengineering and major technical equipment breakthroughs, continuously implement the manufacturing excellence quality project, and drive all industries toward high-end development. We will accelerate the implementation of the Artificial Intelligence Plus initiative, promote the deployment of large language models in key manufacturing sectors, and enhance intelligence levels. We will promote the construction of a green and low-carbon standards system, accelerate the comprehensive utilization of renewable resources, including power batteries, and strengthen the foundation for green development.

Third, we will continue to cultivate growth drivers. We will organize and implement major national science and technology projects and key national R&D programs, conduct targeted initiatives, cultivate new industries and create new momentum. We will also accelerate the development of the biomanufacturing and low-altitude industries. We will advance the innovative development of future industries, including humanoid robots, the metaverse and brain-computer interfaces, and strategically position China in new domains and emerging sectors.

Fourth, we will continuously optimize the development environment. We will carry out targeted campaigns to intensify efforts to resolve the problem of payment arrears to SMEs, reduce burdens on businesses, and effectively enhance their sense of gain. We will strengthen the role of standards to support and guide technological progress as well as industrial optimization and upgrading. We will enhance capacity monitoring and early warning systems, promote industry self-discipline, and optimize the development ecosystem. We will continue to improve regular communication and exchange mechanisms with enterprises and the closed-loop problem-solving mechanism, thereby strengthening their development confidence. Thank you.

CNR:

We have noticed that since the beginning of this year, the MIIT, in conjunction with multiple departments, has issued a series of documents on the high-quality development of industries, including copper, aluminum and gold. Could you please introduce the overall development situation of China's non-ferrous metal industry in the first half of this year? And what positive impacts will the introduction of these measures have on industry development? Thank you.

Tao Qing:

Thank you for your questions. Non-ferrous metals have prominent strategic value and widespread applications. They are both basic materials supporting the development of industries, including construction, machinery and home appliances, and key materials for enhancing the competitiveness of emerging industries such as new energy and next-generation information technology. The development prospects are very promising. In the first half of this year, the value added of the non-ferrous metal industry increased 7.6% year on year, 1.2 percentage points higher than the average growth rate of industrial value added. The output of 10 commonly used non-ferrous metals reached 40.319 million tons, an increase of 2.9% year on year. From January to May, operating income for the non-ferrous metal industry increased 15.9% year on year, while profit rose 16.9%.

To promote the high-quality development of the non-ferrous metal industry, our ministry, in conjunction with the National Development and Reform Commission and other departments, issued implementation plans for the high-quality development of the copper, aluminum and gold industries, continuously advancing the high-end, intelligent and green development of the sector. First, breakthroughs in high-end materials continue to be made. Breakthroughs have been achieved in high-end materials, including ultra-thin titanium materials and some high-purity target materials, which have been successfully industrialized for practical application. This has significantly enhanced the security of key industrial chains, including new energy and integrated circuits. Second, green and low-carbon performance has significantly improved. The proportion of internationally advanced aluminum electrolysis cells with production capacity above 500 kiloamperes has exceeded 40%. The comprehensive AC power consumption of electrolytic aluminum is 700 kilowatt-hours lower than the global average. More than 95% of copper, lead, and zinc smelting production capacity adopts green and low-carbon production processes. Third, digital transformation is accelerating. The numerical control rate of key processes increased 20% while the digitization rate of production equipment in the non-ferrous metal industry rose 10% compared to the end of 2020. Nine excellent intelligent manufacturing demonstration factories have been developed.

Next, we will continue implementing the plan for high-quality development in the copper, aluminum and gold industries. We will also issue and implement a new round of work plans for stabilizing growth in the nonferrous metal industry. We will focus our efforts on stabilizing growth and promoting transformation. In terms of stabilizing growth, we will focus on making coordinated efforts from both the supply and demand sides. This includes strengthening supply security through efficient resource utilization and improving supply quality through deep-processed materials. Additionally, we will expand demand by promoting the upgrading of bulk consumption and cultivating emerging consumer markets, thereby promoting effective improvement in quality and reasonable growth in quantity in the industry. In terms of promoting transformation, we will encourage innovation in new materials and green low-carbon process technologies in the nonferrous metal industry and build a number of green mines, green factories and green industrial parks. We will also cultivate typical use-case scenarios, benchmark factories and exemplary enterprises for digital transformation. Additionally, we will deploy and build large AI models for the nonferrous metal industry and promote the deep integration of AI with the industry. Thank you.

Yicai:

The development of small- and medium-sized enterprises (SMEs) has drawn widespread social attention. We have noticed that the MIIT has conducted National SMEs Service Month activities for five consecutive years. Could you introduce the latest developments? What measures will be taken next to promote the healthy development of SMEs? Thank you.

Xie Shaofeng:

Thank you for your questions. SMEs are an important force in promoting innovation, boosting employment and improving people's well-being. In the first half of this year, we, together with the Ministry of Finance, supported the high-quality development of 1,241 "little giant" enterprises focusing on specialized and sophisticated technologies. We conducted development evaluations for all specialized and sophisticated SMEs and provincial-level SME authorities to continuously improve the tiered cultivation system for high-quality enterprises. By far, we have fostered more than 140,000 specialized and sophisticated SMEs, with 14,600 classified as "little giant" enterprises. At the same time, we have worked together with the State-owned Assets Supervision and Administration Commission of the State Council, the National Intellectual Property Administration, and the All-China Federation of Industry and Commerce to carry out the "100 Events for 10,000 Enterprises" program for four consecutive years. This program facilitates business matchmaking and collaboration between large enterprises and SMEs, promoting the integration of more SMEs into the innovation, industrial and supply chains of large enterprises.

The high-quality development of our SMEs relies on the support of high-quality services. As you mentioned, we have organized National SMEs Service Month activities for five consecutive years. This year, we, together with 16 departments, carried out the "Benefiting Enterprises Together" service action for SMEs. To mark the United Nations' Micro, Small and Medium-sized Enterprises Day which falls on June 27, we organized National SMEs Service Month activities in June, focusing on the pressing difficulties and problems that most concern SMEs, ensuring that more high-quality services reach enterprises directly. This year's National SMEs Service Month had four characteristics. First, there were many participants. Relevant departments, competent authorities for SMEs at all levels, and more than 1,800 public service institutions for SMEs participated in the event, forming a strong synergy. Second, we employed various service methods. We fully leveraged the role of the national SMEs service network (www.chinasme.cn), combining online and offline channels to expand both the depth and breadth of services. So far, the platform has aggregated 260 million pieces of tendering and bidding information, and the Market Opportunity section has been visited more than 23 million times. Third, the service contents were rich. A list of 42 service contents has been developed across eight key areas, including talent attraction and cultivation, as well as financing promotion, driving local authorities and service institutions to deliver extensive targeted public-benefit services. Fourth, there were excellent service outcomes. In the first half of the year, we served more than 3.6 million SMEs, trained nearly 400,000 professionals, facilitated financing intentions exceeding 51 billion yuan, generated transaction orders worth nearly 8.2 billion yuan, and secured technology transformation contracts valued at over 8.6 billion yuan.

Next, we will continue to strengthen public-benefit services in the areas that SMEs are most concerned about: policies, talent, funds, markets, innovation and compliance. We will continuously promote the high-quality development of SMEs. In terms of policy, we will study and revise the classification criteria for SMEs. We will work with the State Taxation Administration to launch a special campaign aimed at helping SMEs to access favorable tax and fee policies more conveniently. In terms of talent, we will organize training programs for leading talents in SME management and operation, and jointly with the All-China Federation of Trade Unions, carry out the Model Workers and Master Craftsmen Assistance Campaign, organizing technical service teams of model workers and master craftspeople to help SMEs solve technical problems. In terms of funding, we will promote the establishment of the second phase of the China SME Development Fund to attract more private capital for early-stage investments, small-scale investments, long-term investments and hard technology investments. We will implement the regulations on the timely payment of debts to SMEs to protect their legitimate rights and interests. In terms of innovation, we will further carry out the "100 Events for 10,000 Enterprises" program, facilitating business matchmaking and collaboration between large enterprises and SMEs. We will also continue the work of releasing lists by large enterprises so that SMEs can select and undertake key projects, promoting the entry of innovative products from SMEs into the supply chains of large enterprises. Together with the National Intellectual Property Administration, we will implement an initiative to encourage the industrial application of patents for SME growth to strengthen guidance on technological innovation for SMEs. By pooling service resources and enhancing service capabilities, we will help SMEs overcome challenges and achieve high-quality development. Thank you.

Cover News:

Traditional industries are the focus of manufacturing transformation and upgrading. The State Council executive meeting recently reviewed and approved an action plan for advancing the green and low-carbon development of manufacturing (2025-2027). What work has the MIIT done to promote the green transformation of traditional industries? What steps will be taken to ensure effective implementation? Thank you.

Tao Qing:

Thank you for your questions. Green development forms the foundation for high-quality development in the manufacturing industry, while traditional industries are the focal point of its transformation and upgrading. Not long ago, the State Council executive meeting approved an action plan for advancing the green and low-carbon development of manufacturing (2025-2027), emphasizing that we will advance the in-depth green transformation of traditional industries. We will combine this with the implementation of policies such as large-scale equipment renewal to actively deploy advanced equipment and processes. This approach will accelerate the green transformation and upgrading of key industries.

To implement the requirements of the action plan, we will prioritize the deep green transformation of traditional industries, focusing on four key sectors: steel, non-ferrous metals, petrochemicals and building materials. We will concentrate efforts in four areas — raw materials, energy use, processes and products — to unlock the full potential for green and low-carbon development in traditional industries and promote green growth with enhanced efficiency.

In terms of expanding the use of green raw materials, the focus is on increasing the proportion of recycled resources such as scrap steel, scrap copper, and scrap aluminum in raw materials. We aim to increase their proportions to 22%, 30% and 25%, respectively, by 2027. Using recycled resources as raw materials has significant advantages in energy conservation and carbon reduction compared to primary mineral resources. For example, recycling aluminum requires only 5% to 8% of the energy and generates only about 5% of the greenhouse gas emissions of the greenhouse gas emissions of primary aluminum production.

In terms of expanding the use of green energy, accelerating hydrogen energy adoption in traditional industries is an important direction. Earlier, we jointly issued the Implementation Plan for Accelerating the Application of Clean and Low-Carbon Hydrogen in the Industrial Sector with the National Development and Reform Commission and the National Energy Administration. The plan focuses on the application of clean and low-carbon hydrogen in sectors such as metallurgy, ammonia synthesis, methanol synthesis, and petrochemical refining, accelerating the achievement of large-scale breakthroughs.

To expand the use of green manufacturing processes, our focus is on accelerating R&D into innovative processes for traditional industries. The goal is to remove the bottlenecks hindering green and low-carbon development. Examples include green hydrogen metallurgy and near-zero-carbon electric furnace steelmaking, carbon-free anode technology for aluminum electrolysis, intelligent continuous micro-reactor and green synthesis technologies in the petrochemical industry, and hydrogen or electric calcination processes for large kilns in the building materials sector.

To expand the supply of green products, our efforts will focus on delivering new materials and products with significant green and low-carbon benefits to all sectors of the economy and society. For example, the building materials industry is promoting energy-efficient glass and new types of insulation and wall materials. Meanwhile, the petrochemical industry is promoting the use of water-based coatings, inks and adhesives. Thank you.

China Electronics News:

Recently, China's electronic information manufacturing and software and information technology services have shown strong development momentum, playing a prominent role in leading and supporting industrial economic operations. Could you tell us about the development of these industries in the first half of the year? What were the highlights and achievements? Thank you.

Xie Cun:

Thank you for your questions. The electronic information manufacturing and software and information technology services industries are key components of China's information technology sector. The synergy between software and hardware innovation is playing an increasingly prominent role in supporting economic and social digital transformation and improving people's quality of life. In the first half of the year, China's electronic information manufacturing sector showed strong resilience, characterized by steady growth, stable exports and rising profits. In the first half of the year, the value added of the computer, communications and other electronic equipment manufacturing enterprises above designated size rose 11.1% year on year, 4.7 percentage points higher than overall industrial growth in the same period. From January to May, total profits reached 216.2 billion yuan, up 11.9% year on year. The software and information technology services sector has also made solid progress, showing consistent growth, improved efficiency and enhanced capabilities. From January to May, software business revenue reached 5.58 trillion yuan, up 11.2% year on year. Total profits reached 672.1 billion yuan, rising 12.8% year on year. Revenue from cloud computing and big data services totaled 585.5 billion yuan, up 11.2% year on year.

In terms of hardware ecosystem development, breakthrough products have emerged at a rapid pace. During the first half of the year, many domestic enterprises released key world-first products in high-growth areas like security chips, high-end processors, smart terminal devices, and all-in-one AI machines. New technologies are unleashing consumption potential. Domestic manufacturers have developed over 100 AI terminal models, including AI phones, AI computers and AI glasses, continuously stimulating diverse and differentiated consumption demand. For example, during this year's "618" shopping festival, the transaction volume for AI glasses on JD.com increased sevenfold year on year. The standards system is advancing steadily, with accelerated development of open-source instruction set standards. In the first half of the year, relevant industry organizations launched 14 new standards and are currently developing 20 additional standards. Development has begun on a series of national standards for the intelligence classification of AI terminals, providing key support for the healthy and orderly development of the ecosystem.

In terms of software innovation and development, the open-source ecosystem continues to improve. DeepSeek's innovative approach, featuring software-driven solutions to overcome hardware limitations, open-source advocacy, and an ecosystem-first strategy, has energized industry-wide open-source innovation. Many tech companies have released open-source software breakthroughs, including the Cangjie programming language, the Star Ring in-vehicle operating system, and the ERNIE large language model, all of which are developing rapidly. The development of open-source communities in fields such as AI, humanoid robots, and autonomous driving has accelerated significantly. The open-source HarmonyOS ecosystem has expanded rapidly, with more than 1,200 product types now equipped with the open-source system, totaling over 1.19 billion units as of late June. The ecosystem includes more than 7.2 million developers, over 25,000 applications and meta-services, and more than 450 participating partners. Intelligent cloud computing services continued to improve, with pilot programs for intelligent cloud computing services launched in six provinces nationwide and strong developments in computing power and cloud computing industries. Eight pilot entities have been selected to play a leading demonstration role, providing AI computing resources for large model enterprises while lowering the entry barrier for small and medium-sized enterprises and innovation teams.

Moving forward, we will focus on driving the digital transformation of the electronic information manufacturing industry and promoting the high-quality development of new energy storage. We will collect exemplary audiovisual system projects in 2025 and promote model cases in smart health, elderly care products and services, and intelligent sports. We will also create new opportunities while maintaining advantages in consumer electronics products. We will promote further quality and efficiency improvements in the software and information technology services industry, organize AI and software integration initiatives, and accelerate the development of intelligent software. We will focus on creating high-quality open-source projects, advance contribution-based evaluation of open-source talent, and build a more attractive, inclusive and creative open-source ecosystem. Thank you.

Zhou Jianshe:

The last question, please.

China Securities Journal:

Mr. Xie Shaofeng just outlined the situation regarding the national SME development fund. We know that the MIIT has done considerable work in recent years on industry-finance cooperation to promote high-quality manufacturing development. What new progress and achievements have been made so far? What measures will be taken next to strengthen financial support for new industrialization? Thank you.

Xie Shaofeng:

Thank you for your questions. In the first half of the year, we earnestly implemented the spirit of the Central Economic Work Conference and the relevant decisions and arrangements of the government work report. Working with relevant departments, local governments and financial institutions, we focused on achieving new industrialization as a key task. We have actively promoted industry-finance cooperation, supported improvements to the multitiered financial service system, and contributed to building both a strong manufacturing sector and a robust financial industry.

First, the scale of financing has further expanded. Leveraging the national industry-finance cooperation platform, more than 3,100 financial and investment institutions have focused on the urgent needs of manufacturing enterprises, launching over 800 financial products. The cumulative financing scale has exceeded 1.2 trillion yuan, with beneficiary companies each receiving an average of nearly 34 million yuan in financing support. In the first half of the year, the A-share market raised 148.8 billion yuan for enterprises in the industrial and information technology fields through initial public offerings, additional issuances and convertible bonds, a year-on-year increase of 51.6%.

Second, the policy system has been further improved. We have strengthened policy coordination with the People's Bank of China and other departments to guide more financial resources toward supporting technological innovation, advanced manufacturing, green development, and micro, small and medium-sized enterprises. We actively worked with relevant departments to develop financial policies for new industrialization. In the first half of the year, we increased the re-lending quota for technological innovation and transformation by 300 billion yuan. We studied and established new policy-based financial instruments and launched a pilot program for merger and acquisition loans aimed at tech companies, with significantly more flexible loan ratios and terms.

Third, financing products have been further diversified. Working with 23 strategic partner financial institutions, we have developed financial products and services for various key tasks of new industrialization. To support key industrial chains, we partnered with select banks to launch specialized loan products, with corporate credit loans accounting for over 42% and maximum loan terms reaching 10 years. We introduced products, including pilot testing insurance-plus-R&D loan packages and tech innovation loans, to support industrial technological innovation. For traditional industry transformation and upgrading, we launched products including green factory loans and digital transformation loans, cumulatively supporting enterprise financing of over 150 billion yuan.

Fourth, support targets have been further prioritized. We have strengthened financial services for key industrial chains by building an integrated system covering equity, loans, bonds and insurance. We have established coordination mechanisms with financial departments and launched "one city, one policy" roadshows for national industry-finance cooperation pilot cities and nationwide campaign "one month, one chain" to promote financing for specific industrial chains. Some companies have gone public or are applying for listing, with the national industry-finance cooperation platform having cumulatively supported 356.2 billion yuan in financing for key industrial chain enterprises. We have focused on strengthening financial support for the deep integration of technological innovation and industrial innovation. We supported financial institutions in developing innovation credit loan products, which facilitated 77.3 billion yuan in corporate financing. We implemented the "Integration of Science, Technology, Industry and Finance" special project, conducted roadshows in Chengdu, and promoted the inclusion of 142 "hard tech" enterprises into the IPO cultivation pipeline, with some companies now preparing for their IPOs.

Looking ahead, we will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council regarding financial services for the real economy. We will work with relevant departments to improve financial policies supporting new industrialization and deepen industry-finance integration. First, we will focus on key industrial chains to promote innovation in products and services. This will include building a better multitiered financial system that serves entire industrial chains. Second, we need to focus on the deep integration of technological innovation and industrial innovation, thoroughly implement the "Integration of Science, Technology, Industry and Finance" special project, and strengthen the functions of the national industry-finance cooperation platform. Third, we will focus on the 66 national industry-finance cooperation pilot cities to promote pilot policies and standards. We will build these pilot cities into testing grounds, advancing the financial sector's five major tasks and supporting high-quality manufacturing development. Thank you.

Zhou Jianshe:

That concludes today's press conference. Thank you to our three speakers and to all the journalists for joining us. Goodbye, everyone.

Translated and edited by Liu Jianing, Lin Liyao, Dong Qingpei, Cui Can, Li Congrong, Xu Kailin, Yan Xiaoqing, Wang Qian, Fan Junmei, Ma Yujia, Zhang Rui, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Wentao, minister of commerce

Mr. Li Chenggang, China international trade representative and vice minister of commerce

Mr. Ling Ji, vice minister of commerce and deputy China international trade representative

Mr. Sheng Qiuping, vice minister of commerce

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

July 18, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are continuing to hold the series of briefings titled "high-quality achievements during the 14th Five-Year Plan period." We are very pleased to have invited Mr. Wang Wentao, minister of commerce, to brief you on China's achievements in high-quality commerce development during the 14th Five-Year Plan period, and to answer your questions. Also present today are Mr. Li Chenggang, China international trade representative and vice minister of commerce; Mr. Ling Ji, vice minister of commerce and deputy China international trade representative; and Mr. Sheng Qiuping, vice minister of commerce.

Now, I'll give the floor to Mr. Wang for his introduction.

Wang Wentao:

Thank you, Ms. Shou. Hello, everyone. First of all, I would like to extend my gratitude to you for your interest in and support for China's commerce-related work. Today, I am very pleased to share with you the development of commerce during the 14th Five-Year Plan period.

These five years have been truly extraordinary and remarkable. Under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, we have earnestly implemented the various tasks set out in the 14th Five-Year Plan. Guided by the three important roles of commerce-related work (as an important part of the domestic economic flow, an important link connecting domestic and international economic flows, and an important factor for the new development paradigm), we have overcome difficulties, dared to struggle and excelled in doing so, embraced innovation, and solidly advanced the delivery of all targets and tasks. Overall, commerce development has withstood wave after wave of shocks, and endured historical tests. Major targets and indicators in areas such as consumption, foreign trade, foreign investment, and outbound investment and cooperation have been on track. Key tasks have been advanced smoothly, and significant progress has been made in high-quality commerce development, contributing to the successful conclusion of the 14th Five-Year Plan. Next, I will briefly review the main achievements in commerce during the 14th Five-Year Plan period from four aspects:

First, consumption has taken on a greater role as a key driver and stabilizer, highlighting the advantages of a robust domestic market. China's consumer market remains the second largest in the world. Over the past four years, total retail sales of consumer goods grew at an average annual rate of 5.5% and are expected to exceed 50 trillion yuan (about $6.98 trillion) this year. Service consumption has maintained rapid growth, with household spending on services increasing by 3.5 percentage points to 46.1%. New types of consumption have flourished, with a wide variety of new business forms and scenarios, making people's pursuit of a better life more tangible and vivid. Consumption has contributed around 60% annually to economic growth, further highlighting its role as a primary engine. The strength and vitality of China's robust domestic market have been significantly enhanced.

Second, China's status as a major economic and trading nation has been further consolidated, securing marked outcomes in high-quality development. Foreign trade has remained resilient under pressures. China has maintained its top position globally in trade in goods, with its share of global exports and imports remaining steady at over 14% and 10%, respectively. Trade in services has remained the second largest in the world and surpassed $1 trillion for the first time last year. The quality of foreign investment has improved. Total foreign investment attracted during the 14th Five-Year Plan exceeded the expected target of $700 billion. The "Invest in China" brand has continued to shine, and the structure of foreign investment has been continuously optimized. International cooperation in industrial and supply chains has progressed in an orderly manner. Outbound investment grew at an average annual rate of over 5%, ranking among the top three globally. Overseas contracted projects have generally maintained stable growth. China has signed multiple memorandums on industrial and supply chain cooperation with Belt and Road partner countries. 

Third, the pace of high-standard opening up has accelerated, and win-win cooperation has continued to expand. The negative list of foreign investment has been continuously shortened. All access restrictions in manufacturing have been lifted. Pilot programs for opening up service sectors such as value-added telecommunications and biotechnology have been carried out in an orderly way. The 22 pilot free trade zones have effectively served as comprehensive experimental platforms for reform and opening up, actively aligning with high-standard international economic and trade rules and conducting pioneering trials. China has steadily expanded autonomous and unilateral opening up, granting zero-tariff treatment for 100% tariff lines for the least developed countries and African countries that have diplomatic relations with China. We have implemented the Regional Comprehensive Economic Partnership (RCEP) to a high quality, and are actively advancing the process of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Digital Economy Partnership Agreement (DEPA). In 2024, trade in goods between China and its free trade partners (including Hong Kong, Macao and Taiwan) accounted for 43% of the country's total goods trade volume.

Fourth, the institutional framework for safeguarding economic security has continued to improve, with significantly enhanced risk prevention and shock response capabilities. The legal framework for foreign-related economic and trade matters has been developed at a faster pace, introducing regulations on export control of dual-use items and improving the export control system. Trade remedy tools have been used appropriately to handle trade frictions. Foreign investment security reviews have been conducted in accordance with regulations to safeguard high-standard opening up. China has negotiated, signed and upgraded investment agreements with relevant countries, properly handled major emergencies abroad, and safeguarded its overseas interests.

Looking back over the past five years, we have deeply realized that the greater the difficulties and challenges, the more our institutional strengths, vast market and complete industrial system stand out; the more the vast potential, strong resilience and robust dynamism of China's economy shine through; and the more China's role as a major responsible country is fully demonstrated. Next, the Ministry of Commerce (MOFCOM) will follow the unified deployments of the central government, proactively adapt to evolving circumstances, focus on strategic priorities and targets, and actively plan and promote the high-quality development of commerce in the 15th Five-Year Plan period.

That concludes my introduction. My colleagues and I are now ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang. We now move to the Q&A session. Please identify the media organization you represent before raising your questions.

Reuters:

Minister, what can the commerce ministry do to address vulnerabilities that have emerged towards the end of this Five-Year Plan owing to China's relative reliance on exports as policymakers consider priorities for 2026 to 2030? What more can the ministry do to stimulate domestic consumption for example?

Wang Wentao:

I'll take these questions. Thank you for your questions. Let's first review the 14th Five-Year Plan period before looking ahead to the 15th. When examining the 14th Five-Year Plan period in a broader context, we can see that China's per capita GDP falls within the range of $10,000 to $20,000. During this stage, consumer demand diversified at a faster pace and consumption patterns underwent faster transformation. This range characterizes the entire 14th Five-Year Plan period, and will persist into the 15th, at least in its early phase. In that stage, consumption will undergo some new changes and also show some new highlights, which is in line with the stage of development and underlying patterns. Over the past five years, MOFCOM has conscientiously implemented the decisions and arrangements of the CPC Central Committee, proactively adapted to new situation, and taken multipronged measures to boost consumption. We have boosted the consumer market, achieving steady expansion in scale, continuous optimization in structure, and progressive release of potential while strengthening domestic circulation. By reviewing the 14th Five-Year Plan period, we can better plan for the 15th. Four changes and highlights have emerged during the 14th Five-Year Plan period:

The first is "market expansion." Our super large market has become even larger. China's position as the world's second-largest consumer market has been consolidated. Our total retail sales of consumer goods increased from 39.1 trillion yuan in 2020 to 48.3 trillion yuan in 2024, representing an average annual growth of 5.5%. We have made a comparison with the United States. In nominal terms, China's total retail sales of consumer goods are about 80% of America's, but when measured by actual purchasing power using World Bank data and methodology, China's retail sales have already surpassed the U.S., and are 1.6 times the size. Looking at this year's performance, with the first half of the year having already passed, retail sales for the entire year will definitely exceed 50 trillion yuan. Several sectors have maintained their leading positions. Speaking of the "large size," our online retail sales, for example, have ranked first globally for 12 consecutive years, and our automobile sales are also number one in the world. Our air conditioners, washing machines and other home appliances are the bestselling in the world. What I want to say is that with a population of 1.4 billion, any product's potential market becomes enormous when scaled across the population.

The second is "quality upgrade." Quality products and services have entered ordinary households. People have gone from just "getting by" to "living a good life." In terms of goods consumption, we have introduced a series of support policies, such as the trade-in program for consumer goods. This is not just a policy to stimulate consumption, more importantly, it promotes a switch to smart and green products, enhancing everyone's quality of life. Since launching last September, the retail sales of home appliances by companies above designated size have maintained double-digit growth. New energy vehicle ownership in 2024 increased by 5.4 times compared to 2020, and in the first half of this year, the penetration rate of new energy vehicles has exceeded 50%, reaching 50.2%. As of the middle of this year, the trade-in program has generated 2.9 trillion yuan in sales, with about 400 million subsidies granted. I saw online comments calling this the most popular and beneficial consumer policy. In terms of service consumption, China entered a stage of rapid growth during the 14th Five-Year Plan period. From 2020 to 2024, residents' spending on services grew at an average annual rate of 9.6%. As I have mentioned in a previous press conference, our service consumption has outpaced goods consumption, a trend you may have noticed in your own spending. In fact, for many households, spending on services, such as domestic services, fitness, travel, beauty, education and health care, has greatly exceeded your household expenditure on goods. The main contradiction in this stage of service consumption lies primarily in the supply side, which more precisely is a shortage of high-quality services. Together with relevant departments, we have implemented targeted measures, including opening up further and lifting restrictions, to address the shortage. In terms of opening up further, we have expanded pilot programs in fields such as health care to attract more high-quality services. In terms of lifting restrictions, we have introduced a series of "1+N" policies to support the high-quality development of service consumption, carried out a campaign to upgrade service quality and expand consumer benefits, and reduced some restrictive measures in sectors like health care, eldercare and domestic services to increase and diversify supply. As noted in the Reuters reporter's questions, the measures implemented during the 14th Five-Year Plan period will continue through the 15th Five-Year Plan period.

The third is "innovations." New trends of spending are flourishing. We have implemented an initiative to innovate and upgrade the retail industry, helping traditional forms of business find new life. For example, some malls now incorporate museums or aquariums, merging shopping, exhibitions and family entertainment under one roof. Others are offering cross-sector "one-stop" services combining commerce, tourism and culture, while continuously introducing new concepts. We have supported the innovative development of time-honored brands. For instance, the now popular Hanfu, including horse-faced skirts, as well as other new Chinese-style clothing have become trendy. "China-chic" products including high-quality cultural and creative products and local specialty products are selling well at home and abroad. These products excel in both quality and creativity, winning over young consumers. We have also promoted the integrated innovation in new consumption models and vigorously developed digital consumption and quality e-commerce, while cultivating new growth drivers such as the "debut economy," "AI + consumption" and "IP + consumption." We see various types of robots in shopping malls or other service spaces, and as I just mentioned, some smart home appliances have entered households. Our trade-in program has greatly boosted smart home appliance consumption. There are also new trends and fashions like the "guzi economy" and blind boxes of trendy toys. Media reports often talk about the global craze for Labubu.

The fourth is "openness." Domestic and international markets are reinforcing each other. On the one hand, more high-quality goods and services have entered China. We have cultivated international consumption center cities, and established demonstration zones to promote innovation in import trade. In particular, we have held the China International Import Expo (CIIE) and the China International Consumer Products Expo (CICPE). From 2021 to 2024, China imported consumer goods totaling 7.4 trillion yuan, making a substantial contribution to global development as a major consumer market. On the other hand, China has expanded its list of countries covered by unilateral visa-free exemptions, attracting more international visitors to travel here and shop, and experiencing the appeal of shopping in China. We have launched the "Shopping in China" campaign and notably optimized our departure tax refund policy. In 2024, inbound tourists spent a total of $94.2 billion — a striking 77.8% increase. This surge in travel has effectively boosted consumption.

Looking ahead to the 15th Five-Year Plan period (2026-30), the fundamentals of China's long-term economic growth remain unchanged, along with the strong potential, resilience and vitality of its consumer market. As for your question about new stimulus policies in the upcoming plan, we will build on the experiences and practices during the 14th Five-Year Plan period. Policies that have proven effective in the Chinese market and have been well-received by the public will be institutionalized and made long-term. At the same time, during the 15th Five-Year Plan period, we still face a complex and challenging global landscape. Given the uncertainties in the international environment, we will introduce targeted policies in response to evolving circumstances. As mentioned previously, we have a well-stocked policy toolbox and we are fully prepared. More importantly, we will adopt timely and situation-specific measures to further drive the growth of commodity consumption, unlock the potential of service consumption, boost the impact of new forms of consumption, and comprehensively expand domestic demand, thereby strengthening domestic circulation. Thank you.

International Business Daily:

During the 14th Five-Year Plan period, the global environment for foreign investment has tightened, and China's use of foreign investment has fluctuated. Can the targets set for foreign investment in the 14th Five-Year Plan be achieved on schedule? Have there been any structural changes in foreign investment? Thank you.

Wang Wentao:

I would like to invite Mr. Ling to answer your questions.

Ling Ji:

Thank you for your questions. First, regarding whether the foreign investment targets for the 14th Five-Year Plan can be met — the answer is yes. In fact, we have already achieved them ahead of schedule. Let me summarize the key developments in attracting foreign investment during this period.

First, the targets have been successfully met. As of the end of June this year, the actual use of foreign investment in China during the 14th Five-Year Plan period reached $708.73 billion, reaching the $700 billion target six months ahead of schedule. Meanwhile, 229,000 new foreign-invested enterprises were established, which was 25,000 more than during the 13th Five-Year Plan period. Foreign-invested enterprises now contribute about one-third of China's total imports and exports, one-quarter of industrial value-added, and one-seventh of tax revenue, creating over 30 million jobs and making significant contributions to China's economic and social development.

Second, the quality of foreign investment has improved markedly. In 2024, investment in high-tech industries accounted for 34.6% of total foreign investment, up 6 percentage points from 2020. Many multinational companies have established regional headquarters and global R&D centers in China.

Third, the environment for foreign investors continues to improve. We have been guided by the principle of "three improvements and an enhanced support system." The first improvement concerns the environment for opening up. We have fully implemented the pre-establishment national treatment and negative list system for foreign investment, and have lifted restrictions on foreign investment access in manufacturing nationwide. In addition, we have conducted pilot programs in areas such as cloud computing, biotechnology and wholly foreign-owned hospitals in certain regions. Over 1,100 pilot projects have been carried out in 20 provinces and cities designated as comprehensive pilot demonstration zones for the expansion of the service industry, and we have issued policy documents for the high-quality development of national-level economic development zones. The second improvement concerns the market environment. We have issued and implemented 24 measures for attracting foreign investment and an action plan for stabilizing foreign investment. The implementation has progressed as expected. Of the 59 specific tasks outlined in the 24 measures, 42 have already been fully implemented, while steady progress has been made on the remaining ones. Significant improvements have been made in areas such as government procurement, intellectual property (IP) protection, cross-border data flows, and fiscal and tax incentives, where relevant policies and conditions continue to be improved and optimized. The third improvement concerns the legal and policy environment. More than 500 laws and regulations have been formulated, revised or repealed to support foreign investment. A more robust service and support system has been strengthened. Dedicated working groups for promoting foreign investment have been set up at all levels across the country, and we have strengthened routine communication with foreign enterprises and chambers of commerce. A foreign enterprise roundtable mechanism has been established, and since 2023, MOFCOM has held over 30 roundtable meetings, helping to address more than 1,500 issues raised by foreign companies.

Fourth, "Invest in China" has become a signature brand. More than 60 major "Invest in China" events have been held domestically and abroad. The China International Fair for Investment and Trade (CIFIT), held annually on Sept. 8, has become a flagship platform for promoting investment in China. Many multinational companies describe China as an "ideal, safe, and promising" destination for global investment — "an oasis of certainty and a hot spot for investment and entrepreneurship."

In March this year, President Xi Jinping met with representatives of the global business community and delivered a keynote speech, sending a strong message about China's unwavering commitment to reform and opening up, and significantly boosting the confidence of foreign investors. Partnering with China means embracing opportunity. Investing in China means investing in the future. We sincerely hope that foreign enterprises can achieve even greater growth as they participate in the journey of advancing Chinese modernization. Thank you.

CCTV:

My question is about foreign trade. In recent years, China's foreign trade has performed impressively. Despite a complex and volatile external environment and mounting pressure, China's foreign trade has shown strong resilience and new growth momentum. How does MOFCOM evaluate the development and future prospects of China's foreign trade? Thank you.

Wang Wentao:

I'll answer this one. First, thanks for your question. Your question actually answers itself in the latter part of what you said. We do have strong resilience and momentum. Of course, I'll add some supplementary points about these factors.

As you just mentioned, we have faced considerable pressure during the 14th Five-Year Plan period. Foreign trade has undoubtedly encountered major challenges and intense pressure. These are conditions we can at least describe as "high winds and choppy waters." However, under the strong leadership of the CPC Central Committee and the State Council, we have decisively introduced policies to stabilize foreign trade on multiple occasions. With concerted efforts from all parties, foreign trade has bucked the trend and grown even in these "high winds and choppy waters," and progress has been made in building China into a trader of strength. This can be summarized in three keywords.

The first keyword is "large." China's status as a major trading nation has been strengthened. In what way is it large? The scale of China's trade in goods surpassed two key milestones of $5 trillion and $6 trillion. In 2024, it hit $6.16 trillion, up 32.4% from 2020 at the end of the 13th Five-Year Plan period. China has ranked first globally for eight consecutive years. In terms of trade in services, the scale exceeded $1 trillion for the first time, ranking second worldwide. Behind this large scale in foreign trade lies the advantages of scale and a comprehensive industrial ecosystem. So in a sense, being large means being strong. We can look at this from three angles. First, trade cooperation has benefited the world. We are a major trading partner for more than 150 countries and regions. We have not only provided high-quality products and services to the world, but also ensured the resilience and stability of global industrial and supply chains. At the same time, we have supported the multilateral trading system through concrete actions and promoted trade liberalization and facilitation. Second, the opportunities of China's large market have been shared globally. Looking at imports, the Chinese mainland and Hong Kong together imported about 13.3% of the world's total goods in 2024, according to WTO data. What was the U.S. share? It was 13.6%. In other words, imports by the Chinese mainland and Hong Kong together were only 0.3 percentage point behind the U.S. Therefore, we are the second-largest import market in the world, nearly on par with the U.S. At the same time, we are a major export destination for nearly 80 countries and regions. Where do these countries send their exports? Their main export destination is China. Of course, we've long run a services trade deficit. Although China's trade in services exceeded $1 trillion last year, we've maintained a long-term deficit, with the U.S. being the largest source of that deficit. China is the largest source of the U.S. goods trade deficit, while the U.S. is China's biggest deficit generator in services. This reflects our complementary advantages. However, we have proactively expanded imports and successfully held the China International Import Expo for seven consecutive years, with this year marking the eighth. We have also established 43 import trade promotion and innovation demonstration zones and unilaterally granted zero-tariff treatment to relevant countries. This is completely unprecedented. Earlier in my opening remarks, I mentioned that China has expanded zero-tariff treatment for the least developed countries to all 53 African countries with which we have diplomatic ties through mutually signed agreements. China's large market has already become a shared global market, and it will surely continue to be a source of growth and vitality for the world economy. Our opening-up policy not only attracts foreign investment but also expands imports. Third, trading entities have become more diversified and expanded. In 2024, the number of enterprises engaged in actual imports and exports reached nearly 700,000. This includes many globally recognized companies, along with specialized and sophisticated "little giant" enterprises that produce novel and unique products. Private enterprises' share of exports rose from 56% at the end of the 13th Five-Year Plan period to 64.8% last year, registering rapid growth.

The second keyword is "strong." China's transformation into a trader of strength has been accelerated. The 20th CPC National Congress proposed accelerating efforts to build a trader of strength supported by three major pillars: trade in goods, trade in services and digital trade. These three major pillars have been continuously strengthened. The first pillar, trade in goods, has been upgraded. In particular, the share of high-value-added and technologically advanced products has been growing. High-tech products accounted for 18.2% of goods exports in 2024, with high-tech items now comprising a large portion of our exports. The potential of new forms of foreign trade has continued to be unleashed, with cross-border e-commerce imports and exports reaching 2.7 trillion yuan in 2024, up 67% from 2020. The second pillar, trade in services, has achieved innovative upgrades. We rolled out negative list management for trade in cross-border services for the first time, with the trade value of knowledge-intensive services up 38% in 2024 compared with 2020. The third pillar, digital trade, has made innovative progress. We have improved policies to support digital trade and built a number of high-standard national digital service export bases. China's trade in digitally deliverable services was up nearly 40% in 2024 versus 2020. We have continued to host national-level exhibitions. For example, the China International Import Expo primarily serves imports, while the Canton Fair focuses on exports. The China International Fair for Trade in Services handles the services trade. The Global Digital Trade Expo covers digital trade. These important exhibition platforms play a key role in supporting the "three major pillars" of building China into a trader of strength and better serving high-quality trade development.

The third keyword is "resilience." China's foreign trade has become significantly more resilient and shock-resistant. You never know how difficult something is until you've lived through it. In recent years, the external environment has been complex and volatile, but China's foreign trade has weathered the storms and forged ahead resolutely. We have actively optimized our international market presence, diversifying our trade partners. ASEAN has remained our largest trading partner for five consecutive years, with trade volume up 9.6% year on year in the first half of this year. In 2024, trade with Belt and Road partner countries accounted for over 50% of China's total trade. Our exports to the U.S. accounted for 14.7% of total exports in 2024, down from 17.4% in 2020. In the first half of this year, exports to the U.S. fell 9.9%, while our overall exports grew by 7.2%, showing divergent trends. During the "two sessions", I mentioned here that "when one door closes, a window opens." We have achieved trade diversification. We have also effectively managed trade frictions by leveraging WTO rules to defend our legitimate rights and interests, thereby maintaining trade security. In particular, we found that foreign trade enterprises have demonstrated remarkable resilience. They have actively adapted to changes, proactively pursued transformation, and accelerated product upgrading by increasing the application of new technologies in their products. Meanwhile, they have worked to open up new markets and channels and created many innovative business models. Our foreign trade production and supply chains have become more complete, flexible and efficient, with a stronger ability to cope with risks and challenges. As a result, we have greater confidence.

Looking ahead to the 15th Five-Year Plan period, we will make greater efforts to promote high-quality trade development, strengthen innovation momentum, and expand both exports and imports. We will also promote international cooperation, enhance trade resilience, and strive to build an international trade landscape characterized by openness, cooperation, mutual benefits and win-win outcomes. Thank you.

Dazhong Daily:

In recent years, the restructuring of the global economic governance system has accelerated, and China has been playing an increasingly important role in this process. During the 14th Five-Year Plan period, what did China accomplish by participating in WTO reform and expanding the country's free trade agreement network? What progress has been made so far?

Wang Wentao:

I would like to invite Mr. Li to answer these questions.

Li Chenggang:

Thank you for your questions. As you mentioned, during the 14th Five-Year Plan period, global governance has indeed undergone profound restructuring. Economic globalization has faced headwinds, with unilateralism and protectionism on the rise. These factors have dealt a severe blow to the international economic order and governance system. Despite these challenges, China has firmly supported the multilateral trading system and expanded a globally oriented network of high-standard free trade zones, advancing both multilateral cooperation and regional cooperation in parallel.

At the multilateral level, we have firmly supported the multilateral trading system and actively participated in WTO reform to defend the organization's authority. We actively promoted multiple practical outcomes at the 12th and 13th WTO Ministerial Conferences to improve the organization's operations. To enhance the WTO's effectiveness, we led efforts to facilitate the conclusion of several high-level economic and trade agreements, including the Investment Facilitation for Development Agreement and the Agreement on Electronic Commerce. We also engaged extensively in discussions on issues including trading environments, development agendas and supply chain stability, working to ensure international economic and trade rules remain current. In addition, we have honored our commitments by demonstrating the responsibility of a major country, earnestly fulfilling WTO obligations, strengthening trade policy compliance with WTO rules and contributing to the creation of a world-class business environment. We completed bilateral negotiations with Uzbekistan, Azerbaijan and Ethiopia regarding their accessions to the WTO, supporting the integration of developing countries into the multilateral trading system. Meanwhile, we have participated constructively in multilateral mechanisms, including the G20, BRICS and APEC, and have consistently placed development at the center of the international economic and trade agenda. We promoted the official establishment of the China Center for Cooperation on Development of Special Economic Zones in BRICS Countries in March, which is also a concrete measure to implement the guiding principles of General Secretary Xi Jinping's speech.

At the regional level, we have expanded a globally oriented network of high-standard free trade zones. First, our network of partners has continued to expand. We promoted the signing and implementation of the Regional Comprehensive Economic Partnership (RCEP), making it the world's largest free trade zone in terms of trade volume and population coverage. This year, we completed negotiations on Version 3.0 of the China-ASEAN Free Trade Area. We also signed the framework agreement for the China-Africa Economic Partnership for Shared Development with 31 African countries, as well as eight bilateral free trade agreements and upgrade protocols. Second, we have become increasingly open to the outside world. China formally applied to join high-standard agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). The country has also exempted tariffs on most commodities with its free trade partners and introduced the negative-list approach for service trade and investment negotiations. Rules in new fields such as the digital economy and green economy have become a focus in each of our negotiations. Third, free trade dividends have been further expanded. Last year, our exports to free trade partners reached 10.06 trillion yuan, an increase of 7.6% from the previous year. Our imports from free trade partners reached 9.01 trillion yuan, up 4.1% year on year. Both figures exceeded our overall import and export growth rate for the same period. Overall, high-level free trade arrangements have delivered win-win cooperation and common development. Currently, whether at the multilateral or regional level, the appeal of China's initiatives has increased significantly, the influence of China's positions has expanded considerably, and the cohesive power of China's solutions has risen greatly. Thank you.

Yicai:

We have observed that during the 14th Five-Year Plan period, whether in cities or rural areas, online or offline, shopping has become more convenient and faster. The entire urban and rural commercial circulation system has undergone significant changes. What measures has the MOC taken to promote the development of a modern circulation system during this period? What results have been achieved? Thank you.

Wang Wentao:

I would like to invite Mr. Sheng to answer these questions. 

Sheng Qiuping:

Thank you for your questions. The circulation system serves as the "arteries and veins" of the economy, connecting production and consumption, domestic and foreign trade, and online and offline commerce. The system is especially important for a super-large economy like China. General Secretary Xi Jinping emphasized that developing a modern circulation system is a strategic task in building a new development paradigm. During the 14th Five-Year Plan period, we prioritized the modern supply chain as our spearhead and the high-quality development of the wholesale and retail industry as our main task. Through these efforts, we promoted the construction of a modern commercial circulation system and achieved positive results.

Over the past five years, we have witnessed both sector growth and declining costs. On the one hand, circulation entities in the wholesale and retail industries have achieved robust growth in terms of both scale and strength. In 2024, the value added of the wholesale and retail industries reached 13.8 trillion yuan, second only to manufacturing. The figure represents an increase of 40% compared to the end of the 13th Five-Year Plan period and accounts for a record high of more than 10% of GDP. The sector has also created 135 million new jobs. In the first half of this year, the value added of the wholesale and retail industries increased 5.9% year on year, maintaining rapid growth momentum. On the other hand, social logistics costs have declined. The ratio of social logistics costs to GDP dropped from 14.7% five years ago to 14.1%, while comprehensive logistics costs for key enterprises decreased 10%. As a result, the commercial circulation sector has become an important pillar for China's economic and social development, providing strong support for building a new development paradigm.

Specifically, we have made progress in four areas:

First, circulation facilities have become more convenient and people-friendly. In rural areas, we have strengthened county-level commercial systems by renovating and upgrading market and store facilities. As a result, 155,000 commercial outlets have been renovated in counties, townships and villages. In more than 95% of administrative villages, farmers can enjoy direct express delivery services. In cities, we have built 35 national demonstration pedestrian streets and commercial districts, as well as 5,510 15-minute community life circles, serving over 125 million residents. The convenience and happiness found in Chinese cities have increasingly amazed overseas tourists.

Second, the circulation network has become more complete and comprehensive. On the one hand, we have conducted pilot projects to build modern commercial circulation systems in 40 cities, strengthening the "arteries" of the economy by expanding the "capillaries." On the other hand, we have strengthened weak links by vigorously developing cold chain logistics. Currently, total cold storage volume has reached 253 million cubic meters nationwide, an increase of 42.9% compared to the end of the 13th Five-Year Plan period. The number of refrigerated trucks has reached 495,000, an increase of 80% during the same period. This expansion has further facilitated commodity circulation from farm to fork.

Third, circulation entities have become more diverse and robust. A framework has taken shape in which small enterprises flourish in large numbers while large enterprises serve as pillars of the economy. One aspect is greater numbers. The wholesale and retail industries include more than 10 million legal entities and nearly 45 million individually-owned businesses, accounting for more than 45% of all businesses. Another aspect is greater vitality. Traditional business forms such as shopping malls and department stores are rapidly transforming. Meanwhile, new business forms and models like membership supermarkets and buyer's stores continue to emerge. This has made commercial distribution one of the most innovative sectors of the Chinese economy. A third aspect is growing strength. Seventeen Chinese circulation companies made the Fortune Global 500 list in 2024, with average revenue exceeding $90 billion.

Fourth, the operation of the circulation system has become more intelligent and efficient. We are focusing on three main areas of transformation. The first is digitalization. We're applying big data, artificial intelligence, the Internet of Things and other technologies to upgrade the entire system of commercial circulation through intelligent digitalization, improving how well we match supply with demand. The second focus is standardization. Standard pallet sharing rates have risen from 32.4% to 37.8%, helping companies improve cargo turnover efficiency and reduce logistics costs. The third area is green transformation. We've established 32 pilot cities for renewable resource recovery systems and 10 pilot cities for secondhand goods circulation initiatives, with green, low-carbon lifestyles gaining widespread acceptance.

Looking ahead to the 15th Five-Year Plan period, we will continue our strategic efforts with sustained momentum, building on each phase of progress. We aim to accelerate the development of a larger, higher-quality modern commercial circulation system, advance high-quality development in the wholesale and retail industries, further reduce logistics costs throughout the economy, and make greater contributions to ensuring smooth national economic flow and establishing a new development pattern. Thank you.

Market News International:

How do you assess the development trajectory of China-U.S. economic and trade relations during the 14th Five-Year Plan period? With the 15th Five-Year Plan period approaching, what is your outlook on the prospects for future China-U.S. economic and trade cooperation?

Wang Wentao:

I'll take this. Thank you for the question. Let me address the first part of it. When discussing the outlook of China-U.S. economic and trade relations during the 14th Five-Year Plan period, I think we need to look back to 2018 for a clearer perspective. Since 2018, U.S.-initiated economic and trade frictions have led to significant fluctuations in bilateral economic and trade relations, with several landmark developments. I can summarize the China-U.S. economic and trade situation in four points.

The first point is that, despite many ups and downs, China and the U.S. remain important economic and trade partners for each other. Since 2018, U.S. unilateralism and protectionism have continuously sparked economic and trade tensions. The U.S. has imposed various tariffs on China and coined various terms and concepts. The tariffs alone are numerous. They include Section 301 tariffs, Section 232 tariffs, reciprocal tariffs, and now many sector-specific tariffs as well. The list is extensive, and so is the terminology, including phrases like "outcompeting China," the "small yard, high fence," and "decoupling and severing supply chains." This series of actions has severely impacted and disrupted normal economic and trade cooperation between China and the U.S. However, while the share of bilateral trade in each country's total trade has declined, bilateral trade volumes have generally remained stable. In 2024, bilateral goods trade between China and the U.S. totaled $688.3 billion, up 18% from 2017, and services trade reached $155.8 billion, a 34.7% increase from 2017. The two countries are also important investment partners, with close ties between their business communities. Every March, numerous American companies come to China, and numerous delegations visit MOFCOM. It has been proven that forced decoupling and severing supply chains is not feasible. China-U.S. economic and trade cooperation is driven by economic realities and serves the interests of people in both nations.

The second point is that China-U.S. economic and trade relations are fundamentally about mutual benefit and win-win outcomes. Cooperation is the only correct path. Trade between China and the U.S. serves both countries' needs. Some of it is irreplaceable, or at least difficult to replace in the short term, demonstrating the fundamentally mutually beneficial nature of the relationship. Moreover, trade in services between our two countries continues to grow rapidly. In 2024, 1.6 million Chinese tourists visited the U.S., generating $20 billion to $30 billion in direct revenue for the U.S. China-U.S. trade and bilateral investment have created many jobs in both countries and generated substantial returns and profits for businesses on both sides.

The third point is that differences and frictions are inevitable in China-U.S. economic and trade cooperation. This is normal. We must confront these issues head-on, with dialogue and consultation offering the best path to resolution. President Xi Jinping has repeatedly emphasized to the U.S. side that China and the U.S., as two major countries with different development stages and economic systems, are fundamentally different. These differences existed in the past, persist today and will continue in the future. We must accept this basic reality. Differences and frictions in China-U.S. economic and trade cooperation are inevitable. This is normal. The key is to respect each other's core interests and major concerns while properly resolving differences through equal dialogue. Since the beginning of this year, President Xi Jinping has held two phone conversations with President Trump, providing direction for the China-U.S. relationship at critical historical moments. Since May, China-U.S. economic and trade teams have held dialogues and consultations in Geneva and London. Guided by principles of mutual respect, equal consultation and mutual benefit, these talks produced the Geneva Consensus and the London Framework, helping to stabilize bilateral relations and reduce tensions. Practice has shown that guided by the consensus reached during the heads of state phone conversations, China and the U.S. can properly manage disputes through equal dialogue and consultation. This approach enables both countries to work toward resolving differences and achieving mutually beneficial outcomes.

The fourth point is that China maintains a consistent position of firmly defending its national interests while upholding international fairness and justice. China and the U.S. benefit from cooperation and suffer from confrontation. There are no winners in a trade war. China does not want to fight, but is not afraid to do so. China has taken strong measures to firmly safeguard its legitimate rights and development interests. Moreover, China's commitment to international fairness, justice, and the established economic and trade order has garnered widespread respect and support internationally. In the first half of this year, the Chinese economy withstood pressure and continued to improve. Foreign trade maintained growth despite disruptions from high tariffs. Exports grew 7.2% in the first half of the year. The long-term positive fundamentals of the Chinese economy will not change. The historical process of Chinese modernization is unstoppable, and we possess both the firm resolve and confidence to protect our interests.

As the world's two largest economies, China and the U.S. should act like major powers, with all the responsibility and commitment that entails. China-U.S. economic and trade relations affect not only the two nations but also global economic prosperity and development. The relationship should provide stability and predictability for the world. We are willing to work with the U.S. side, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, to take concrete actions that maintain and implement the important consensus reached during the phone conversations between the two heads of state and carry out the Geneva Consensus and the London Framework. We will make full use of the China-U.S. economic and trade consultation mechanism established in Geneva to continue strengthening dialogue and communication, constantly building consensus, reducing misunderstandings, and deepening cooperation. Together, we will work to return China-U.S. economic and trade relations to the right track and achieve healthy, stable and sustainable development. Thank you.

21st Century Business Herald:

The BRI has transformed from an idea into concrete action, from a proposal into a widely embraced global platform for connectivity and cooperation. What economic and trade achievements has Belt and Road cooperation delivered during the 14th Five-Year Plan period? What are the key highlights? Thank you.

Li Chenggang:

Thank you for your questions. During the 14th Five-Year Plan period, MOFCOM thoroughly implemented the important guidance of General Secretary Xi Jinping on Belt and Road cooperation. We worked with relevant countries, adhered to the principle of extensive consultation, joint contribution, and shared benefits, and promoted pragmatic cooperation in economy and trade. This has achieved fruitful results, mutual benefits and win-win outcomes, contributing positively to an open global economy and building a community with a shared future for humanity. The achievements and highlights can be viewed from four angles:

First, trade and investment have continued to deepen, and production and supply chain links have grown closer. From a trade perspective, trade in goods between China and Belt and Road partner countries has increased from $2.7 trillion in 2021 to $3.1 trillion in 2024, with an average annual growth rate of 4.7%. The share of this trade in China's overall trade rose from 45.3% in 2021 to 50.7% in 2024, and further increased to 51.8% in the first half of this year, accounting for more than half of our total trade. More high-quality products such as durians, dragon fruits, and coffee from Belt and Road partner countries have entered the Chinese market. Meanwhile, China's machinery equipment, electronic components and related products have also contributed to industrial development in partner countries. From an investment perspective, two-way investment between China and Belt and Road partner countries exceeded $240 billion from 2021 through the first half of 2025. China's investment in partner countries exceeded $160 billion, while partner countries invested more than $80 billion in China. The "Two Countries, Twin Parks" projects between China and Malaysia and between China and Indonesia have become flagship examples of industrial cooperation among Belt and Road partners.

Second, infrastructure projects have progressed steadily, with their overall impact becoming increasingly evident. We have coordinated the development of both landmark infrastructure projects and "small but beautiful" public welfare projects. From 2021 through the first half of 2025, the cumulative value of contracted projects in Belt and Road partner countries reached nearly $600 billion. A number of key infrastructure projects, including the China-Laos Railway, have been completed and put into operation. Construction of the China-Europe Railway Express and the New International Land-Sea Trade Corridor has accelerated, enhancing regional connectivity. We have implemented more livelihood projects in agriculture, education, health, poverty reduction and other areas. For example, we have demonstrated and promoted Juncao technology and hybrid rice, training large numbers of technical personnel for local communities.

Third, emerging fields have expanded steadily, broadening the scope for cooperation. We have signed investment cooperation memorandums with over 50 Belt and Road partner countries in the digital, green, and blue economies, as well as other sectors. China has established Silk Road E-commerce partnerships with 36 countries, developing a range of cooperation programs such as Silk Road E-commerce Day, Silk Road Cloud Products and the Cloud Lecture Hall. More than 120 online and offline national pavilions have helped products from partner countries enter the Chinese market. We have advanced practical cooperation in green infrastructure and clean energy, and actively promoted international cooperation on green minerals.

Fourth, institutional mechanisms and platforms have been continuously improved, facilitating smoother communication and coordination. We have effectively utilized mechanisms such as bilateral economic and trade joint commissions, trade facilitation working groups, and investment cooperation working groups, while leveraging platforms like the China-ASEAN Expo and China-Africa Economic and Trade Expo to strengthen economic and trade exchanges and communication with Belt and Road partner countries. We have signed free trade agreements with countries including Ecuador and Serbia, as well as investment agreements with countries such as Angola and Tajikistan, advancing trade and investment liberalization and facilitation.

In the future, we will continue to advance and deepen cooperation based on what we have already achieved. Thank you.

Shou Xiaoli:

Due to time constraints, this will be the last question.

Hong Kong Bauhinia Magazine:

During the 14th Five-Year Plan period, China has accelerated its high-level opening up. Can you tell us about the results achieved in utilizing free trade pilot zones as testing grounds and gradually expanding institutional opening up? What are your plans going forward? Thank you.

Wang Wentao:

Thank you for your questions. During the 14th Five-Year Plan period, we have used free trade zones as testing grounds for institutional opening up, introducing landmark and pioneering measures that have achieved significant breakthroughs and exemplary results. Let me explain this from several aspects:

First, led by free trade zones, the institutional framework for opening up has been continuously strengthened. During the 14th Five-Year Plan period, the total number of China's free trade zones reached 22, covering the eastern, western, southern, northern and central regions of the country and forming a comprehensive national network. There have also been significant institutional innovations. For instance, the negative list management model has been extended to areas such as cross-border trade in services and cross-border data flows. We have also conducted differentiated explorations tailored to each free trade zone's unique characteristics. In 2024, free trade zones accounted for 19.6% of national foreign trade and 24.3% of foreign investment, demonstrating stronger vitality and momentum in open economy development.

Second, we have proactively aligned with high-standard international economic and trade rules, achieving new breakthroughs in key areas of reform and opening up. In qualified free trade zones such as the Shanghai Free Trade Zone and the Hainan Free Trade Port, we have proactively aligned with high-standard international trade agreements like the CPTPP and DEPA. We have launched over 110 pilot measures in two batches, covering key areas including trade, investment, IP rights, government procurement and environmental protection. These efforts have generated advanced experiences and best practices that have been replicated and scaled up nationwide, accelerating the spillover effects and driving force of institutional opening up.

Third, we have pursued pioneering and integrated approaches, generating substantial institutional reform outcomes. During the 14th Five-Year Plan period, the CPC Central Committee and the State Council issued guidelines for improving the country's pilot free trade zones. The guidelines serve as the overall policy framework for upgrading pilot free trade zones, providing systematic arrangements for trade, investment, capital flows, transportation, personnel exchanges, data flows and other aspects within the zones. As I mentioned earlier, various regions have conducted integrated innovation across entire industrial chains based on local conditions. For instance, Zhejiang has focused its integrated innovation on bulk commodities, Jiangsu on biomedicine and Shandong on the marine economy. Over the past five years, the free trade zones have produced nearly 200 institutional innovation achievements. The resulting policy benefits have become more tangible, understandable and accessible to enterprises and the public.

Going forward, MOFCOM will be guided by the strategy of upgrading free trade zones and work with relevant departments and localities to encourage each free trade zones to embrace bold experimentation and take decisive action. We will support them in conducting more beneficial explorations, generating more substantial reform and opening up results, and realizing improvements in three key areas: institutional openness standards, systematic reform effectiveness, and open economy quality. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang. Thank you to all our speakers, and thank you to all the journalists for participating. That concludes today's press conference. Goodbye everyone.

Translated and edited by Xu Xiaoxuan, Zhang Jiaqi, Cui Can, Xu Kailin, Li Xiao, You Jiaxin, Yang Xi, Wang Qian, Li Huiru, Ma Yujia, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC)

Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC

Chairperson:

Mr. Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 14, 2025

Zhou Jianshe:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to brief you on China's import and export data for the first half of 2025 and to take your questions. Also attending today's press conference is Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC.

Now, I'll give the floor to Mr. Wang for his introduction.

Wang Lingjun:

Thank you. Good morning. I will start by briefing you on the import and export performance in the first half of this year, and then my colleague and I will answer your questions.

Since the beginning of this year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China has adhered to the general principle of pursuing progress while ensuring stability, unwaveringly managed its own affairs well, unwaveringly expanded high-standard opening up, focused on stabilizing employment, enterprises, markets and expectations, effectively responded to external shocks, and ensured overall stable performance and steady growth of the economy. Our foreign trade has withstood pressure, maintained momentum, and demonstrated vitality in a complex environment. According to statistics from the GACC, China's foreign trade volume in goods in the first half of 2025 jumped 2.9% year on year to 21.79 trillion yuan. Exports grew 7.2% year on year to 13 trillion yuan, while imports fell by 2.7% to 8.79 trillion yuan. Specifically, there were five main features:

First, the scale of foreign trade has grown steadily. In the first half of the year, China's total imports and exports reached 20 trillion yuan, marking a record high for the same period. According to quarterly trends, imports and exports in the second quarter increased by 4.5% year on year, accelerating by 3.2 percentage points compared to the first quarter, and continuing a streak of seven consecutive quarters of growth.

Second, our circle of foreign trade partners has become more diverse. In the first half of the year, China's trade with Belt and Road (BRI) partner countries reached 11.29 trillion yuan, up 4.7% year on year, and accounting for 51.8% of total foreign trade, 0.9 percentage point higher than the same period last year. Notably, trade with member states of the Association of Southeast Asian Nations (ASEAN) rose 9.6% year on year to 3.67 trillion yuan. During the same period, imports and exports to the European Union, South Korea, Japan and other countries all registered growth.

Thirdly, export momentum has shifted toward higher quality and greater innovation. In the first half of the year, China's exports of mechanical and electrical products reached 7.8 trillion yuan, up 9.5% year on year, and accounting for 60% of total exports, 1.2 percentage points higher than the same period last year. Specifically, high-end equipment closely related to new quality productive forces grew by more than 20%, and the "new trio" (namely, electric vehicles, lithium-ion batteries and photovoltaic products) representing green and low-carbon development grew by 12.7%.

Fourth, the expansion of domestic demand has helped stabilize imports. With the continuous efforts to implement major national strategies and enhance security capacity in key areas, and increase support for a new round of large-scale equipment upgrades and consumer goods trade-in programs, imports turned to positive growth in the second quarter. In the first half of the year, imports of machinery and equipment in petrochemical, textile and other industries grew at double-digit rates. Imports of key components such as electronic parts grew rapidly, while import volumes of major raw materials such as crude oil and metal ores saw notable growth.

Fifth, the vitality of foreign trade business entities continued to grow. In the first half of the year, China had 628,000 foreign trade enterprises with actual import and export activity, surpassing 600,000 for the first time in the same period, an increase of 43,000 compared to the same period last year. Among these, 547,000 were private enterprises, whose imports and exports grew by 7.3%, accounting for nearly 60% of the total trade value.

Overall, China's foreign trade forged ahead despite headwinds in the first half of the year. The country maintained steady growth in foreign trade volume and achieved improvements in trade quality, which was truly a hard-won result. The achievement was fundamentally due to the centralized and unified leadership of the CPC Central Committee. It was also made possible by the concerted efforts of local governments and departments, as well as the adaptability and innovation of foreign trade enterprises and professionals nationwide. However, it is also important to recognize that rising global unilateralism and protectionism, along with increasing complexity, severity and uncertainty in the external environment, present significant challenges. Maintaining stable growth in China's foreign trade in the second half of the year will still require considerable effort.

The GACC will fully implement the decisions and plans of the CPC Central Committee and faithfully fulfill its responsibilities to guard the country's borders and promote development. We will deepen the development and cooperation of the Smart Customs project, vigorously advance special initiatives to facilitate cross-border trade, and actively leverage our role as a hub connecting domestic and international circulation. Through more effective regulation, enhanced security, greater convenience and stricter crackdowns on smuggling, we will work to stabilize trade volume and improve the quality of foreign trade, contributing to high-standard opening up and high-quality development. Thank you.

Zhou Jianshe:

Thank you, Mr. Wang, for your introduction. The floor is now open for questions. Please state your news organization before asking your question.

Nanfang Daily, Nanfang Plus:

You just introduced an overview of China's imports and exports in the first half of the year. How would you evaluate this performance? What specific highlights and positive developments can you share? What are your expectations for the trajectory of foreign trade in the second half of the year? Thank you.

Wang Lingjun:

Thank you. Since the beginning of this year, in the face of a complex and challenging international environment, China's foreign trade has demonstrated strong resilience, achieving growth in total volume, improvement in quality, and control of key variables.

First, there has been growth in total volume. China's imports and exports have remained above 10 trillion yuan for nine consecutive quarters. In the first half of this year, the total value of imports and exports rose by more than 600 billion yuan compared with the same period last year. In June, imports, exports and total trade all registered year-on-year growth, with growth rates rebounding. Specifically, the total value of imports and exports in June reached 3.85 trillion yuan, up 5.2% from a year earlier. This was the second-highest monthly trade volume on record. Exports reached 2.34 trillion yuan, up 7.2%, with relatively fast growth in products such as electronic components and ships. Meanwhile, imports reached 1.51 trillion yuan, up 2.3%, with notable increases in parts for automatic data processing equipment and fresh and dried fruit.

Second, there has been an improvement in quality. Chinese foreign trade enterprises have seized the opportunity presented by the global energy transition, steadily increasing the supply of high-quality green products while accelerating the development of new sectors and growth drivers. In the first half of the year, exports of lithium batteries and wind turbines each grew by more than 20%. Recently, robot football matches, known in China as "Jichao," have attracted wide attention. From dancing and marathon running to playing football, robots are growing increasingly versatile, demonstrating the innovative strength of China's robotics industry. Last year, China became the world's second-largest exporter of industrial robots. In the first half of this year, exports grew 61.5%. Robots used for cooking, cleaning, food delivery and entertainment are becoming increasingly intelligent, bringing greater convenience to consumers worldwide.

Lastly, key variables have remained under control. In the face of unilateralism and protectionism, we have continued expanding our network of partners, strengthened economic and trade cooperation, and worked to boost business confidence, joining together to address rapid changes in the global environment. In the first half of the year, China's imports and exports with more than 190 countries and regions registered growth. The number of trading partners with a trade volume exceeding 50 billion yuan reached 61, an increase of five from the same period last year. While traditional markets such as the EU, Japan and the United Kingdom saw growth, emerging markets contributed more significantly to the overall increase. In the first half of the year, China's imports and exports with Africa reached 1.18 trillion yuan, rising 14.4%, while trade with Central Asia hit 357.2 billion yuan, up 13.8%. Overcoming challenges depends crucially on boosting confidence. The latest China Customs Trade Climate Survey shows that confidence among both export and import enterprises has risen for two consecutive months.

At present, certain countries are arbitrarily imposing tariffs in violation of international trade rules, creating serious challenges for global economic development. Recently, several international organizations have lowered their forecasts for global trade growth this year. Despite external uncertainties, China possesses key strengths in its foreign trade sector: a diversified and stable market, innovative high-quality products, and adaptive, forward-looking business entities. These advantages give us the confidence, resilience and ability to manage various risks and challenges.

Thank you.

Shandian News:

Based on the data just released, China's trade with Belt and Road partner countries performed well in the first half of the year. Could you provide more details? Thank you.

Wang Lingjun:

Okay, thank you. Mr. Lyu will answer your question.

Lyu Daliang:

Thank you for your question. Since China proposed the eight major measures to support high-quality Belt and Road cooperation, joint efforts with participating countries have produced substantial cooperation outcomes. In the first half of this year, China's imports and exports with BRI partner countries reached 11.29 trillion yuan, up 4.7% year on year, accounting for 51.8% of total foreign trade. There were positive results in three key areas:

First, trade ties have grown closer. China has deepened cooperation with partner countries to build an open world economy. The latest international data shows that in the first four months of this year, trade among BRI partner countries accounted for half of their total trade value, a significant increase from 2013, the year the initiative was first proposed. In the first half of this year, China's exports of electronic components and electric engineering equipment with these countries grew rapidly, as did imports of parts, accessories and storage devices for automatic data processing equipment.

Second, development cooperation has deepened. China's implementation of a series of landmark projects and "small but beautiful" livelihood projects has strongly supported the economic and social development of partner countries. During the first half of the year, China's exports to partner countries of engineering machinery for infrastructure development, wind turbines promoting green development, and instruments that support technological innovation all maintained double-digit growth. In addition, China actively expanded imports from BRI partner countries. In the first half of the year, a total of 32 market access agreements were signed for agricultural and food products from partner countries. High-quality products such as Zambian macadamia nuts and fresh bananas from Colombia were approved for import to China.

Third, connectivity has become more comprehensive. In recent years, the Silk Road Maritime network, Air Silk Road and cross-border highways have developed more rapidly. In the first half of the year, China's imports and exports with partner countries via waterways, aviation and highways increased 4.3%, 9% and 16.4%, respectively. Cross-border rail transport, including the China-Europe Railway Express and the China-Laos Railway, has also continued to gain momentum. Customs authorities have optimized supervision of rail shipments, further improving cross-border clearance efficiency. In ancient times, caravans departing from Chang'an took years to transport Chinese tea and silk to Europe. Now, the Chang'an China-Europe freight trains departing from Xi'an can connect Eurasia across mountains and seas in about 10 days, enabling quality goods from various countries to flow in both directions. In the first half of the year, fresh and dried fruits, edible oil, cosmetics and other goods shipped by rail between China and BRI partner countries showed rapid growth.

Moving forward, customs will continue to leverage its functions, implement the eight major measures for supporting high-quality Belt and Road cooperation, and deepen collaboration with partner countries in areas such as port management, supply chain connectivity, and agricultural and food product market access. These efforts will promote trade development and ensure safe, smooth trade flows. This will contribute customs expertise to advancing high-quality Belt and Road cooperation.

Thank you.

21st Century Business Herald:

In the first half of the year, policy support helped China's foreign trade maintain stable growth despite a complex environment. Could you share what specific measures the GACC has taken to improve trade facilitation and optimize the business environment? In what specific ways do the measures provide practical help to enterprises? Thank you.

Wang Lingjun:

Mr. Lyu will answer your questions.

Lyu Daliang:

Thank you for your interest in customs' work on cross-border trade facilitation. In order to implement the decisions and plans of the CPC Central Committee and the State Council, the GACC led an initiative with 20 departments and 25 pilot cities, launching a special action on cross-border trade facilitation in April this year. We have made every effort to implement 29 measures, striving to create a port business environment that is faster, more efficient, and more coordinated and transparent. We have also worked to energize companies and stabilize foreign trade growth. So far, these efforts have produced positive results in the following areas:

Policy support has been strengthened. We have responded to enterprise demands in a targeted way and promoted the development of new business forms. We optimized and adjusted the product catalog for bonded maintenance in comprehensive bonded zones. We also piloted support for qualified bonded maintenance projects outside the zones. In the first half of the year, the total import and export value of bonded maintenance services nationwide reached 256.99 billion yuan, up 7.5%. We also expanded the pilot program for inspecting lithium batteries with recyclable packaging and introduced pilot differentiated supervision for dual-use items that serve as both food and traditional medicine.

Cross-border logistics have become faster. We have optimized regulatory models, simplified customs clearance procedures, vigorously promoted expedited rail clearance operations, and continuously improved efficiency at air ports. We have also strengthened monitoring and management of container volume fluctuations at key ports and deepened regulatory model innovations such as "dockside direct collection," "direct loading upon arrival" and "vessel departure confirmation." We have actively promoted a "single-document, single-container" model for the rail-sea intermodal transport service. In the first half of the year, the volume of import and export containers via waterways nationwide reached 67.41 million twenty-foot equivalent units, up 11.3%.

The trade environment has improved significantly. We have stepped up efforts to promote international cooperation in cross-border trade facilitation. For example, we have jointly established a global Smart Customs online cooperation platform with the World Customs Organization. Currently, customs authorities from 141 countries and regions have registered to join the platform. Using the China International Trade Single Window platform, we launched a two-way "one submission for two declarations" system for imports and exports. This enables online exchange and verification of electronic certificates while promoting real-time information updates and sharing. The initiative has significantly expanded cross-border connectivity through the Single Window system.

Customs clearance costs have been reduced. We have enhanced joint incentives for Authorized Economic Operator (AEO) enterprises, providing preferential and facilitative measures, including financing credit, financing guarantees, and export credit insurance to AEO companies 3,776 times. We have also expanded co-loading services that enable vessels to simultaneously transport foreign trade cargo and domestic freight, and launched a campaign to reduce logistics costs across industries. I would also like to introduce a measure closely related to people's daily lives: The GACC has launched a one-stop processing platform for inbound and outbound mail, offering integrated government services to users. The platform allows users to track the customs clearance status of inbound and outbound mail through three channels: our website, mobile app and WeChat mini-program. Users can also complete various customs procedures in one place, including declarations, tax payments and tax refund applications. This streamlined approach significantly reduces processing times and eliminates the additional costs previously required for agency services. We welcome everyone to use these services and share valuable feedback.

Going forward, we will remain committed to advancing the special campaign to facilitate cross-border trade. We will focus on the following key areas: ensuring precise policy implementation, conducting thorough impact assessments and promoting successful practices, and continuously improving the business environment. This will ensure the campaign produces measurable results while increasing company satisfaction through real benefits.

Thank you.

Market News International:

What are the reasons behind China's negative year-on-year growth in imports so far this year? What is the outlook for imports in the second half? Thank you.

Lyu Daliang:

Thank you for your questions. Mr. Wang just briefed on the first half of the year's trade figures, including exports and imports, covering both scale and growth rates. The import growth rate in the first half of this year resulted from multiple factors, including uncertainties in global trade policies and declining commodity prices. As a major commodity importer, commodities account for about 30% of China's total import value, and international price fluctuations significantly affect the country's import growth rate. In the first half of the year, average import prices of crude oil, iron ore and soybeans all fell more than 10% year on year, pulling down overall import growth by 2.7 percentage points.

For imports, we need to look at both the growth rate and the overall trend, as well as both the monetary value and the actual quantity. As China's economy continues to recover and improve, expanding domestic demand has helped stabilize imports. In the second quarter, imports returned to growth, driven primarily by increased volume, reflecting substantial improvement.

On the one hand, stable growth in industrial production has driven a recovery in imports of equipment and components. China's manufacturing PMI has risen for two consecutive months. In the second quarter, the import growth rate for high-end machine tools accelerated by 13.9 percentage points compared with the first quarter, while the import growth rate for electronic components accelerated by 7.7 percentage points.

On the other hand, rebounding market sales have boosted imports of certain consumer goods. Driven by policies such as trade-in programs for consumer goods, the year-on-year growth rate of China's total retail sales of consumer goods was faster in the first five months than in the first quarter. In the second quarter, imports of food, tobacco and alcohol grew at a relatively fast pace of 8.8% while imports of cultural and recreational products increased 10.8%. Additionally, daily chemical products rose 3.1%.

Here, I would also like to introduce another development. Since Dec. 1 last year, China has granted zero-tariff treatment to all the least-developed countries it has diplomatic ties with. In the first half of this year, China's imports from these countries achieved double-digit growth. Going forward, we will extend zero-tariff treatment to 53 African countries with diplomatic relations with China, leveraging China's large market to drive shared development among all nations.

With its massive population, China is intensifying efforts to implement its domestic demand expansion strategy and launching special campaigns to boost consumption, making it one of the world's most promising large-scale markets. As China's market continues to expand and the country opens its doors wider, its imports will bring even greater benefits to the world.

Thank you.

Jinan Times APP:

Since private enterprises are the driving force behind China's foreign trade, what are the highlights of their import and export performance? What measures has the GACC taken to support private businesses? Thank you.

Wang Lingjun:

Thank you for your questions. General Secretary Xi Jinping encouraged private enterprises to unswervingly follow the path of high-quality development at the symposium on private enterprises. Since the beginning of this year, a series of key policy measures to support private enterprise development have significantly boosted business confidence. In foreign trade, private enterprises have achieved noteworthy high-quality development. In the first half of the year, private enterprises recorded imports and exports of 12.48 trillion yuan, up 7.3% year on year, accounting for 57.3% of China's total foreign trade, an increase of 2.3 percentage points from the same period last year. Both exports and imports posted growth. Here are the specifics.

First, private enterprises continued to lead foreign trade growth. By the second quarter of this year, China's private enterprises had posted year-on-year import and export growth for 21 consecutive quarters, consistently maintaining leading growth rates. Especially since the beginning of this year, private enterprises have overcome adverse external economic conditions, with their import and export volume in the first six months exceeding 12 trillion yuan for the first time in history for this period, posting a growth rate 4.4 percentage points higher than the national average.

Second, private enterprises' innovation momentum continued to strengthen. Private enterprises are adhering to the path of high-quality development, strengthening independent innovation, and accelerating industrial upgrading. In the first half of the year, private enterprises accounted for more than 80% of specialized and innovative "little giant" enterprises with import and export activities. Private enterprises' exports of high-tech products increased 12.5%. At the same time, private enterprises actively promoted equipment renewal and upgrading, and imports of high-end petrochemical and electronics equipment also maintained strong growth rates.

Third, private enterprises strengthened their development foundations. Private enterprises remained focused on their core businesses and strengthened their industrial operations, continuously optimized industrial structures and significantly enhanced corporate strength. In the first half of the year, equipment manufacturing products accounted for half of private enterprises' exports, with high-value manufactured products such as ships, automobiles and special equipment all achieving double-digit export growth. Having weathered the storm in international markets, private enterprises have become more resilient and dynamic. In the first half of the year, private enterprises occupied 218 positions among China's top 500 import and export companies.

Customs will continue to steadily implement various policies to promote private economic development. We will continuously strengthen services in areas such as customs clearance facilitation, inspection and quarantine, fair law enforcement, and rights protection. We will focus on resolving urgent and difficult problems that private enterprises face in import and export clearance. These efforts will promote the healthy and high-quality development of the private economy.

Thank you.

Phoenix TV:

The international economic and trade situation has been complex and volatile since the beginning of this year, as mentioned multiple times earlier. There have been reports suggesting that foreign-invested enterprises lack confidence in China this year. How did foreign-funded enterprises perform in terms of imports and exports in the first half of this year? Have they been affected by changes in the international economic and trade situation? Thank you.

Wang Lingjun:

Thank you for your questions. Foreign-funded enterprises have made positive contributions to China's economic growth and are important participants in the country's foreign trade. In the first half of this year, imports and exports by foreign-funded enterprises in China reached 6.32 trillion yuan, an increase of 2.4% year on year, maintaining growth for five consecutive quarters. Despite the complex and volatile global trade situation, foreign-funded enterprises in China remain committed to deepening their presence in the country, with confidence undiminished.

This commitment to the Chinese market is reflected in foreign-funded enterprises combining their technological advantages with China's industrial support capabilities, with major industries maintaining upward export trends. Among the key manufacturing export sectors for foreign-funded enterprises, industries such as special equipment, electrical machinery and electronic equipment have all achieved relatively rapid growth. In recent years, guided by policies to stabilize foreign investment, foreign-funded enterprises have expanded from concentrated locations to broader geographic distribution, creating a more balanced presence across regions. In the first half of the year, foreign-funded enterprises accounted for 30% of imports and exports in the eastern region, 25.1% in the central and western regions, and 26.4% in the northeastern region.

Their undiminished confidence is reflected in the fact that more and more foreign-funded enterprises regard China as an ideal, safe and promising investment destination amid declining global cross-border investment flows. In the first half of the year, a record 75,000 foreign-invested enterprises in China engaged in actual import and export activities, the highest number for this period since 2021. Foreign-invested enterprises accelerated investment in production capacity, with imports of high-end equipment increasing 3.2% in the first half of the year. At the same time, foreign-invested enterprises have also focused on long-term development and stepped up innovation and research and development. In the first half of the year, imports of bonded R&D goods increased 52.1%, accounting for more than 70% of the national total.

At present, with increasing uncertainty in the global situation, China's policy stability and long-term planning have become even more valuable. I'm confident that more foreign-funded enterprises will achieve even greater success and stronger growth in China.

Thank you.

CMG:

We are all aware that the first half of this year saw a complex and challenging international situation, placing significant pressure on economic and trade cooperation. Despite these circumstances, China's exports still maintained growth. Could you please provide more details? Thank you.

Lyu Daliang:

Thank you for your question. Since the beginning of this year, despite increasing external pressure and challenges, China's exports have maintained a steady growth momentum. In the first half of the year, China's exports exceeded 13 trillion yuan for the first time in the same period historically, up 7.2% year on year.

In terms of foreign trade entities, all three types of enterprise recorded export growth in the first six months. Specifically, private enterprises exported 8.52 trillion yuan, up 8.3%; foreign-funded enterprises exported 3.49 trillion yuan, up 5.4%; and state-owned enterprises exported 968.73 billion yuan, up 3.8%. The number of exporting enterprises in China has grown steadily in recent years, reaching over 300,000 in 2015, 400,000 in 2019, and 500,000 in 2023 — an average increase of 100,000 every four years. The upward trend continued with 8.5% growth in the first half of this year.

In terms of export markets, both traditional and emerging markets registered growth. In the first half of the year, China's exports to traditional markets such as the EU, Japan, and the U.K. grew steadily, while exports to emerging markets such as ASEAN, Central Asia and Africa achieved double-digit growth. China has supplied production equipment and technology to emerging markets, improving local production and employment. Exports of machine tools to ASEAN, agricultural machinery to Central Asia, and textile machinery to Africa all increased significantly.

In terms of main export products, innovation has become a more prominent defining feature. In the first half of the year, China's exports of high-tech products rose 9.2%, maintaining growth for nine consecutive months. Among them, exports of high-end machine tools, ships and marine engineering equipment all grew by more than 20%, while exports of instruments and meters rose 14.7%. We have also promoted greater self-reliance and strength in science and technology to develop more Chinese brands. As a result, Chinese brands accounted for 32.4% of total high-tech product exports, up 1.2 percentage points from the same period last year. Additionally, a growing number of enterprises are providing tailored, differentiated and customized products in response to changes in international market demand. For example, they have developed solar-powered mobiles for areas with limited power supply and launched sand-proof, high-temperature-resistant engines for areas with extensive desert terrain. All these efforts have received praise and positive feedback from overseas customers.

Overall, China's exports achieved steady growth in the first half of the year. Backed by a complete industrial system and powered by the deep integration of technological and industrial innovation, we have essentially continued to meet international market demand with high-quality supply. I believe that in the next stage, China's exports will continue to forge ahead despite any challenges. As we always say, after the storm comes the rainbow.

Thank you.

Beijing Youth Daily:

I'd like to ask about China-EU relations. This year marks the 50th anniversary of China-EU diplomatic relations, and all parties are paying close attention to China-EU economic and trade relations. The data you mentioned earlier showed that China-EU trade achieved growth in the first half of the year. Can you provide a more detailed breakdown? Thank you.

Wang Lingjun:

Thank you. This year marks the 50th anniversary of the establishment of diplomatic relations between China and the European Union. Over the past half-century, the two sides have leveraged their economic complementarity in trade cooperation, with bilateral trade volume growing more than 300 folds. In the first half of this year, China-EU trade totaled 2.82 trillion yuan, up 3.5% year on year, with daily trade averaging more than 15 billion yuan, equal to the full-year trade volume at the time diplomatic relations were established. In the first half of the year, the EU accounted for 12.9% of China's total foreign trade value, remaining China's second-largest trading partner.

Specific trade data shows that economic and trade cooperation between China and the EU continues to deepen. On the one hand, production and supply chains are accelerating integration. For example, China and the EU complement each other in automotive technology, jointly promoting new and improved development in the industry. In the first half of the year, China's exports of auto parts to the EU rose 9.7%, while imports of large bus gearboxes and vehicle diesel engines from the EU increased 40.8% and 65.2%, respectively. On the other hand, both sides' consumer markets are deeply connected. China and the EU are both important global consumer markets and are each other's top source of imported consumer products. In the first half of the year, China's imports of medical and health products, bags, cases and jewelry from the EU accounted for more than 60% of China's total imports of these products. Meanwhile, China's exports of textiles, clothing, household appliances and laptops to the EU all achieved rapid growth.

At the same time, China and the EU have significant potential for cooperation in many fields. In terms of connectivity, as of June this year, the cumulative number of China-Europe Railway Express trains had exceeded 110,000, connecting 128 cities in China and 229 cities in Europe, thereby building a bridge for China-Europe economic and trade exchanges. In green development, cooperation between the two sides has deepened, with China's exports of wind turbines and high-voltage transformers to the EU maintaining strong growth momentum.

China has always adhered to high-quality development and high-level opening up. It is willing to work with the EU to expand mutual openness, jointly oppose unilateralism and protectionism, safeguard multilateralism and free trade, bring tangible benefits to enterprises and consumers on both sides, and inject greater stability and certainty into the global economy and trade.

Thank you.

South China Morning Post:

How did cross-border e-commerce exports perform in the first half of the year? What has been the impact since the United States imposed additional tariffs on small parcels imported from China? What is the export situation for cross-border e-commerce goods to markets outside the U.S.? Thank you.

Lyu Daliang:

Thank you for your questions. According to China's statistical survey system for cross-border e-commerce, statistical surveys are conducted on a semi-annual and annual basis. The official statistics for cross-border e-commerce in the first half of the year will be released in October. Therefore, I will provide a preliminary estimate for now. In the first half of the year, China's cross-border e-commerce imports and exports totaled about 1.32 trillion yuan, up 5.7% year on year. Exports accounted for about 1.03 trillion yuan, up 4.7%, while imports totaled approximately 291.1 billion yuan, an increase of 9.3%. For detailed breakdowns by major markets, commodities and other key aspects, please refer to the official data that will be released in October.

I would also like to clarify that cross-border e-commerce statistics are essentially grouped statistics, meaning they separate cross-border e-commerce imports and exports from the total import and export figures. The monthly, quarterly and annual import and export data we release all include cross-border e-commerce imports and exports.

Cross-border e-commerce serves as a digital bridge that rapidly connects producers and consumers across countries. It is also an important trend in the development of international trade and is increasingly becoming an indispensable part of people's daily lives. You mentioned that some countries impose artificial restrictions on cross-border e-commerce. We believe these measures cannot undermine the inherent strengths of cross-border e-commerce, nor can they halt the ongoing digital transformation of international trade. We are willing to work with countries around the world to strengthen cooperation and exchanges and promote the healthy, sustainable development of cross-border e-commerce. Thank you.

Red Star News:

We have observed that as the domestic toy Labubu has surged in popularity both at home and abroad, customs authorities recently seized counterfeit versions of Labubu at multiple ports. Could you please share what key measures customs has taken to protect intellectual property rights? Thank you.

Wang Lingjun:

Thank you for your question. In recent years, China's trendy toys have gained popularity in global markets. In the first four months of this year, China's exports of dolls and animal toys exceeded 13.31 billion yuan, marking a 9.6% increase. Recently, Labubu has become a global sensation. The GACC official WeChat account has regularly shared the "Customs' Battle Against Fake Labubu" series, which has also gained popularity on social media. From this, many netizens have become aware of one of customs' key responsibilities: protecting IP rights. This duty is carried out in accordance with Articles 44 and 91 of the Customs Law, which empower customs to proactively inspect or detain suspected infringing goods at entry and exit points, stop IP violations, and support and protect innovation.

Since 1994, we have enforced customs protection of IP rights and actively participated in global IP governance. In the first half of this year, customs authorities nationwide seized 11,000 batches of suspected infringing goods, totaling 38.675 million items. Among these seized items were the counterfeit Labubu dolls, which have attracted significant attention from netizens. The key to identifying authenticity is to examine the teeth. The genuine product has nine sharp teeth, while counterfeits often have one or two fewer due to mold defects. That's a tip you can use.

I really enjoy reading everyone's comments under our articles. Netizens are very witty. Somebody said, "One small step for Guanguan (a nickname for customs), one giant leap for IP protection." Another said, "There's only one Labubu, and that's the one released by customs." This shows that people highly value IP rights and consciously support genuine products. Kudos to everyone!

Thank you.

National Business Daily:

China-U.S. trade has been a major focus since the beginning of this year. Could you provide an overview of China-U.S. trade performance in the first half of this year? What are the prospects for bilateral trade between the two countries moving forward? Thank you.

Wang Lingjun:

Thank you. Let me first provide you with an overview of the China-U.S. trade situation. In the first half of the year, bilateral trade between China and the U.S. totaled 2.08 trillion yuan, down 9.3% from the same period last year. Of this total, exports accounted for 1.55 trillion yuan, down 9.9%, while imports were 530.35 billion yuan, down 7.7%. Due to the so-called "reciprocal tariffs" announced by the U.S., China-U.S. trade shifted from year-on-year growth in the first quarter to a year-on-year decline in the second quarter, falling 20.8%.

Following positive progress in economic and trade talks in Geneva and London, China-U.S. trade has rebounded recently. The bilateral trade value rebounded in June to over 350 billion yuan from less than 300 billion yuan in May, while the year-on-year decline narrowed significantly.

The core of China-U.S. economic and trade cooperation is mutual benefit and a win-win outcome. This is not only an irreversible historical trend in the age of globalization and an objective requirement for the deep integration of industrial chains, but also a practical need for collaborative business innovation and improved quality of life in both countries.

The teams from both China and the U.S. are accelerating efforts to implement outcomes from the framework reached during the economic and trade talks in London. China wishes to emphasize once again that the Geneva consensus and London framework were hard-won achievements, that coercion and threats lead nowhere, and that dialogue and cooperation are the right path forward. We hope that the U.S. will continue to work with China to make cooperation the main theme of our economic and trade relations. This will help get the global trade system back on a path of fairness and openness and contribute to global economic recovery and growth.

Thank you.

The Poster News APP:

The 17th BRICS Summit was recently held. Could you provide an overview of China's trade with other BRICS member states and partner countries in the first half of this year? What specific work has the customs authority taken to facilitate BRICS cooperation? Thank you.

Lyu Daliang:

Thank you for your questions. This year, the BRICS cooperation mechanism has expanded again, establishing itself as the premier platform for the Global South. In the first half of the year, China's imports and exports with other BRICS members and partner countries totaled 6.11 trillion yuan, up 3.9% from the same period last year. This accounted for 28.1% of China's total imports and exports. By combining trade with investment and R&D, we have supported these countries in improving infrastructure and promoting industrial transformation and upgrading, which has in turn boosted trade growth.

In the industrial sector, BRICS countries have each leveraged their comparative advantages, and their cooperation in the production and supply chains of chemicals, metals and electronics has deepened. In the first half of the year, China's imports from other BRICS countries increased significantly in printed circuits and parts and accessories for automatic data processing equipment, while rubber and plastics maintained growth. China's exports of petrochemical machinery, metal processing machine tools, and other equipment also grew rapidly.

In the agricultural sector, BRICS countries now span Asia, Europe, Africa and Latin America, with their diverse agricultural products can meet each member's varied needs. In the first half of the year, China's imports from other BRICS countries rose 13.7% for edible vegetable oils such as palm oil and rapeseed oil, and 10.6% for edible aquatic products such as shrimp and crab. Meanwhile, China's exports of citrus, grapes, and other products to BRICS countries also grew rapidly. Additionally, China's exports of agricultural machinery such as combine harvesters and cotton pickers to other BRICS countries increased by 34.7%, contributing to agricultural modernization in those countries.

In the infrastructure sector, exports of road rollers and concrete mixer trucks from China to other BRICS countries increased 42.7% and 37.9%, respectively, during the first six months. At the same time, we have continued to promote the development of a green BRICS and have cooperated with Egypt, Saudi Arabia and other countries to build solar power plants in desert areas, contributing to the energy transition in those countries. In the first half of the year, China's exports of renewable energy generator sets to other BRICS countries surged more than 70%, while components for wind turbine generators rose 11.8%.

Last October, President Xi Jinping announced that China would build the BRICS Customs Center of Excellence. The GACC is committed to implementing these initiatives by focusing on three major tasks: developing the BRICS Smart Customs Center of Excellence website, enhancing capacity building and cooperative exchanges, and creating Smart Customs development and cooperation demonstration sites. These efforts are aimed at creating new hubs for BRICS customs cooperation. On June 30, the BRICS Smart Customs Center of Excellence was officially launched, both sharing China's Smart Customs development experience with other BRICS customs authorities and helping enterprises better understand the trade policies of BRICS countries. Next, we will accelerate BRICS customs capacity building and cooperative exchanges, establish Smart Customs development and cooperation demonstration sites, and implement the outcomes of the 17th BRICS Summit. This will provide strong support for economic and trade exchanges among BRICS countries. Thank you.

Zhou Jianshe:

Due to time constraints, we'll take one final question.

Dazhong Daily:

Could you please provide an update on the foreign trade performance of China's major trading provinces, as well as the central and western regions, during the first half of this year? What were the main features and highlights? Thank you.

Wang Lingjun:

Thank you for your questions. In recent years, China's approach to opening up has expanded step by step — from individual points to connecting lines, from lines to broader areas, extending from coastal to border regions, and from the eastern to the western parts of the country — with the regional layout being continuously optimized. Since the beginning of this year, all regions have earnestly implemented the central government's directives, working together in coordination to create a joint force for the development of foreign trade.

First, major foreign trade provinces shouldered the bulk of the responsibility. These provinces represent a significant share of the national total and play a key role in stabilizing the overall foreign trade landscape. In the first half of the year, Guangdong, Jiangsu, Zhejiang, Shanghai and Shandong made up 64.1% of China's total imports and exports, growing 4.8% year on year — 1.9 percentage points higher than the national average — and contributed 3 percentage points to overall growth. These major provinces are also the main drivers of export growth, contributing close to 60% of the growth in national exports.

Second, border provinces and regions began to unlock their potential. Leveraging their unique geographical advantages, the nine border provinces have continued to serve as vital bridges for trade with neighboring countries. In the first half of the year, their imports and exports with these countries exceeded 900 billion yuan, marking a 6.3% increase. These regions accounted for more than half of China's total trade with countries such as Kyrgyzstan, Mongolia and Tajikistan. With improved interconnectivity and the development of smart customs and smart ports, border regions have facilitated the faster entry of quality products from neighboring countries into the Chinese market. For example, imports of Laotian rubber and Kazakh flaxseed both experienced rapid growth.

Third, the central and western regions demonstrated strong growth momentum. In the first half of the year, 18 provinces in central and western China achieved a total trade volume of 3.95 trillion yuan, growing 11.2% — 8.3 percentage points higher than the national average. Their share of national foreign trade rose 1.3 percentage points to 18.1%. The central and western regions actively promoted the coordinated development of international logistics channels and industries. In the first half of the year, imports and exports through the New International Land-Sea Trade Corridor increased 20%.

If the major foreign trade provinces represent the points, the border regions the lines, and the central and western regions the areas, then together these points, lines and areas create a vivid picture of China's foreign trade performance in the first half of the year. This clearly demonstrates that the pace of China's comprehensive opening up, characterized by coordinated land-sea development and mutual support between the east and west, is accelerating. The scope for high-level opening up is broader than ever.

Thank you.

Zhou Jianshe:

That concludes today's press conference. Thank you to our two presenters and to all the journalists for joining us. Goodbye, everyone!

Translated and edited by Mi Xingang, Liu Caiyi, Cui Can, Gong Yingchun, Wang Mengru, Li Xiao, Yang Chuanli, Xu Kailin, Xiang Bin, Wang Qian, Liu Sitong, Huang Shan, Fan Junmei, Li Huiru, David Ball and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS)

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 15, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding another regular briefing on economic data. We have invited Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS), to brief you on China's national economic performance in the first half of 2025 and to answer your questions.

Now, I'll give the floor to Mr. Sheng for his introduction.

Sheng Laiyun:

Thank you, Ms. Shou. Good morning, friends from the media. I am pleased to share with you the key data on China's national economic performance. As usual, I will first brief you on the economic performance in the first half of the year, and then take your questions.

In the first half of the year, China's national economy forged ahead despite challenges and maintained steady and positive momentum.

In the first half year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to create a new pattern of development, coordinated domestic economic work and endeavors in the international economic and trade field, and implemented more proactive and effective macro policies. As a result, the national economy withstood pressure and improved steadily despite challenges. Production and demand grew steadily, employment was generally stable, household incomes continued to increase, new growth drivers witnessed robust development and high-quality development made new strides, helping ensure overall social stability.

According to preliminary estimates, China's gross domestic product (GDP) in the first half of 2025 reached 66,053.6 billion yuan, up by 5.3% year on year at constant prices. By industry, the value added of the primary industry was 3,117.2 billion yuan, up by 3.7% year on year; that of the secondary industry was 23,905.0 billion yuan, up by 5.3%; and that of the tertiary industry was 39,031.4 billion yuan, up by 5.5%. By quarter, GDP increased by 5.4% year on year in the first quarter, and 5.2% in the second quarter. The GDP for the second quarter increased by 1.1% quarter on quarter.

First, summer grain witnessed stable production and a good harvest, and animal husbandry grew steadily.

In the first half of the year, the value added of agriculture (crop farming) registered a year-on-year increase of 3.7%. The overall output of summer grain was 149.74 million metric tons, 150,000 metric tons less than that of the previous year, or a decrease of 0.1%. In the first half of the year, the output of pork, beef, mutton and poultry was 48.43 million metric tons, up by 2.8% year on year. Of this total, the output of pork, beef and poultry grew by 1.3%, 4.5% and 7.4%, respectively, while that of mutton fell by 4.6%. The output of milk was up by 0.5% and that of eggs up by 1.5%. At the end of the second quarter, the number of pigs registered in stock was 424.47 million, up by 2.2% year on year; and 366.19 million pigs were slaughtered in the first half of the year, up by 0.6%.

Second, industrial production grew rapidly, and equipment manufacturing and high-tech manufacturing showed good growth.

In the first half of the year, the total value added of industrial enterprises above designated size grew by 6.4% year on year. In terms of sectors, the value added of mining increased by 6.0% year on year, that of manufacturing increased by 7.0%, and that of the production and supply of electricity, thermal power, gas and water increased by 1.9%. The value added of equipment manufacturing increased by 10.2% year on year, and that of high-tech manufacturing increased by 9.5%, which were 3.8 percentage points and 3.1 percentage points faster than that of industrial enterprises above designated size, respectively. In terms of ownership, the value added of state holding enterprises was up by 4.2% year on year; that of share-holding enterprises was up by 6.9%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 4.3%; and that of private enterprises was up by 6.7%. In terms of products, the production of 3D printing devices, new energy vehicles and industrial robots grew by 43.1%, 36.2% and 35.6% year on year, respectively. In June, the value added of industrial enterprises above designated size went up by 6.8% year on year, or up by 0.50% month on month. In June, the Manufacturing Purchasing Managers' Index stood at 49.7%, which was 0.2 percentage point higher than that of the previous month; and the Production and Operation Expectation Index was 52.0%. In the first five months, the total profits made by industrial enterprises above designated size were 2,720.4 billion yuan, down by 1.1% year on year.

Third, the service sector grew faster, and modern services enjoyed sound development.

In the first half of the year, the value added of the service sector went up by 5.5% year on year, which was 0.2 percentage point faster than that in the first quarter. Specifically, the value added of information transmission, software and information technology services, leasing and business services, transport, storage and postal services, and wholesale and retail trade grew by 11.1%, 9.6%, 6.4% and 5.9%, respectively. In June, the Index of Services Production increased by 6.0% year on year. Specifically, the Index of Services Production of information transmission, software and information technology services, leasing and business services, finance, and wholesale and retail trade went up by 11.6%, 8.4%, 7.3% and 6.9%, respectively. In the first five months, the business revenue of service enterprises above designated size went up by 8.1% year on year. In June, the Business Activity Index for Services stood at 50.1%; and the Business Activity Expectation Index for Services was 56.0%. Specifically, the Business Activity Index for industries like postal services, telecommunication, broadcast, television and satellite transmission services, internet software and IT services, monetary and financial services, capital market services, and insurance stayed within the high expansion range of 55.0% and above.

Fourth, market sales growth picked up, with sales of higher-end consumer goods performing strongly.

In the first half of the year, total retail sales of consumer goods reached 24.5458 trillion yuan, up 5% year on year, accelerating 0.4 percentage point from the first quarter. By region, urban retail sales of consumer goods totaled 21.305 trillion yuan, up 5% year on year, while rural retail sales of consumer goods reached 3.2409 trillion yuan, up 4.9%. By consumption type, retail sales of goods totaled 21.7978 trillion yuan, up 5.1% year on year, while catering revenue reached 2.748 trillion yuan, up 4.3%. Sales of basic living goods and certain higher-end consumer products posted solid growth. Retail sales by enterprises above designated size rose 12.3% for grain, oil and food; 22.2% for sports and recreational articles; and 11.3% for gold, silver and jewelry. The consumer goods trade-in policy continued to show results, with retail sales by enterprises above designated size rising 30.7% for household appliances and audiovisual equipment, 25.4% for cultural and office supplies, 24.1% for furniture, and 22.9% for communication equipment. Online retail sales reached 7.4295 trillion yuan, rising 8.5% year on year. Specifically, online retail sales of physical goods totaled 6.1191 trillion yuan, increasing 6% and accounting for 24.9% of total retail sales of consumer goods. In June, total retail sales of consumer goods rose 4.8% year on year but fell 0.16% month on month. In the first half of the year, retail sales of services rose 5.3% year on year, 0.3 percentage point higher than the first quarter's pace.

Fifth, fixed-asset investment continued to expand, with manufacturing investment growing rapidly.

In the first half of the year, fixed-asset investment (excluding rural households) totaled 24.8654 trillion yuan, rising 2.8% year on year. Excluding real estate development, fixed-asset investment rose 6.6%. Specifically, infrastructure investment rose 4.6% year on year, manufacturing investment grew 7.5%, and real estate development investment fell 11.2%. Newly built commercial building sales totaled 458.51 million square meters of floor space, falling 3.5% year on year. Meanwhile, total sales reached 4.4241 trillion yuan, declining 5.5%. By industry, primary industry investment rose 6.5% year on year, secondary industry investment grew 10.2%, and tertiary industry investment fell 1.1%. Private investment declined 0.6% year on year but grew 5.1% excluding real estate development. Among high-tech industries, investment grew 37.4% in information services, 26.3% in aerospace vehicle and equipment manufacturing, and 21.5% in computer and office device manufacturing. In June, fixed-asset investment (excluding rural households) fell 0.12% month on month.

Sixth, imports and exports of goods continued to grow, with the trade structure improving further.

In the first half of the year, the total value of goods imports and exports was 21.7876 trillion yuan, rising 2.9% year on year. Exports totaled 13 trillion yuan, up 7.2%; imports totaled 8.7875 trillion yuan, down 2.7%. Imports and exports by private enterprises rose 7.3%, accounting for 57.3% of the total import-export value, 2.3 percentage points higher than the same period last year. Imports and exports with Belt and Road partner countries grew 4.7%. Exports of mechanical and electrical products increased 9.5%, accounting for 60% of the total export value. In June, the total value of imports and exports was 3.8527 trillion yuan, up 5.2% year on year. Specifically, the total value of exports was 2.3394 trillion yuan, up 7.2%, while imports totaled 1.5134 trillion yuan, up 2.3%.

Seventh, consumer prices were generally stable, and the core consumer price index (CPI) registered a moderate rebound.

In the first half of the year, the CPI fell 0.1% year on year. Grouped by commodity categories, prices for food, tobacco and alcohol dipped 0.3%; clothing climbed 1.3%; housing edged up 0.1%; articles and services for daily use remained unchanged; transportation and communication declined 2.9%; education, culture and recreation gained 0.8%; health care increased 0.3%; and other articles and services jumped 6.7%. In terms of food, tobacco and alcohol prices, fresh vegetable prices dropped 5.3%, grain declined 1.3%, fresh fruit climbed 2.7% and pork gained 3.8%. In June, the CPI rose 0.1% year on year and dipped 0.1% month on month. In the first half of the year, the core CPI excluding food and energy rose 0.4% year on year, 0.1 percentage point higher than that of the first quarter. The core CPI in June rose 0.7% year on year, 0.1 percentage point higher than the previous month.

In the first half of the year, the producer prices for industrial products decreased 2.8% year on year. Specifically, in June, it decreased 3.6% year on year and 0.4% month on month. Meanwhile, purchasing prices for industrial producers decreased 2.9% year on year in the first half. In June, they fell 4.3% year on year and 0.7% month on month.

Eighth, employment remained generally stable, with the surveyed urban unemployment rate declining slightly.

In the first half of the year, the surveyed urban unemployment rate averaged 5.2%, down 0.1 percentage point from the first quarter rate. In June, the surveyed urban unemployment rate was 5%. The surveyed unemployment rate of the population with local household registration was 5.1%. Meanwhile, the surveyed unemployment rate for the population with non-local household registration was 4.8%, of which the rate for the population with non-local agricultural household registration was also 4.8%. In 31 major cities, the surveyed urban unemployment rate was 5%. The average of weekly working hours for enterprise employees nationwide was 48.5 hours. By the end of the second quarter, the number of rural migrant workers totaled 191.39 million, up 0.7% year on year.

Ninth, personal income grew steadily, with rural residents' income growth outpacing that of urban residents.

In the first half of the year, per capita disposable income reached 21,840 yuan, representing a nominal increase of 5.3% year on year and a real increase of 5.4% after adjusting for price factors. By permanent residence, the per capita disposable income of urban residents was 28,844 yuan, growing 4.7% both nominally and in real terms year on year. Per capita disposable income of rural residents was 11,936 yuan, representing nominal growth of 5.9% year on year and real growth of 6.2%. By income source, nationwide per capita salary income grew 5.7%, net business income increased 5.3%, net property income gained 2.5% and net transfer income was up 5.6%, all in nominal terms. Nationwide median per capita disposable income was 18,186 yuan, up 4.8% year on year in nominal terms.

Overall, in the first half of the year, more proactive macroeconomic policies proved effective, with the economy continuing to develop steadily and positively, demonstrating strong resilience and vitality. However, we must also recognize that many external factors remain unstable and uncertain, domestic demand remains insufficient, and the foundation for economic recovery and improvement still needs to be consolidated. Moving forward, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and maintain the general approach of seeking progress while ensuring stability. We must fully and accurately implement the new development concept, accelerate the construction of a new development pattern, and coordinate domestic economic work with international economic and trade challenges. We must remain focused on our own priorities, further strengthen the domestic economic cycle, address external uncertainties through the certainty of high-quality development, and promote sustained, steady and healthy economic development.

That concludes my breakdown on the performance of the national economy in the first half of the year. I'm now happy to answer your questions.

Shou Xiaoli:

Thank you, Mr. Sheng, for your introduction. Let's give the floor to the media. Please state your news organization before asking your question.

CCTV:

Since the beginning of this year, China's economy has withstood pressure and operated steadily despite facing a complex environment. How do you evaluate the overall economic performance in the first half of the year? What are the main factors behind this performance? Thank you.

Sheng Laiyun:

Thank you for your questions. Since the beginning of this year, the international environment has been complex and volatile. The international economic and trade order has suffered severe damage, and instability and uncertainty have increased. Facing such a complex situation, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all regions and departments have earnestly implemented the decisions and deployments of the CPC Central Committee and the State Council. We have adhered to the overall coordination of domestic economic work and international economic and trade challenges. We have accelerated the implementation of more active and effective macroeconomic policies and focused on stabilizing employment, enterprises, markets and expectations. The national economy has withstood pressure and operated steadily. Major indicators performed better than expected, high-quality development has been solidly advanced, and the economy has steadily achieved progress and improvement. Here, I would like to use four key points to summarize the main characteristics of economic performance in the first half of the year:

First, economic stability continued. Stable performance was a defining characteristic of the first half of the year. Looking at the four major macroeconomic indicators, growth remained stable with a slight increase. In the first half of the year, GDP grew 5.3% year on year, with the first quarter at 5.4% and the second quarter at 5.2%. The first-half growth rate increased 0.3 percentage point compared to both the same period and the whole year of last year. Last year, GDP growth was 5% for both the first half and the full year, demonstrating stable growth with modest improvement. The surveyed unemployment rate remained generally stable. Since the beginning of this year, the monthly surveyed unemployment rate has fluctuated primarily within the 5%-5.4% range, remaining essentially stable. Prices remained low and generally stable. This year, the CPI declined 0.1% year on year for several months, but turned positive in June with growth of 0.1%. Core CPI rebounded to 0.7% in June. The balance of payments remained essentially balanced. Goods imports and exports reached a new high for the same period, and foreign exchange reserves remained above $3.2 trillion. Based on these four major macroeconomic indicators, we believe the fundamental trend of stable economic performance has not changed.

Second, the pace of progress remained steady. While maintaining stable economic performance, various regions across the country have steadfastly promoted economic transformation and high-quality development. From the data, we can see that new achievements have been made in innovative, coordinated, green, open and shared development.

Third, new momentum accumulated. Local authorities have been developing new quality productive forces tailored to local conditions while stepping up efforts to promote integrated advancements in technological and industrial innovation. As a result, new industries, technologies and business models continue to grow rapidly. In the first half of the year, high-tech industries' value added increased 9.5% year on year, while the added value of the country's new industries, new business formats and new business models accounted for about 18% of GDP in 2024, with new momentum building.

Fourth, the flow of economic activity got smoother. Since this year, in response to external challenges, China has placed greater emphasis on expanding and strengthening its domestic economic circulation, introducing a series of policies to boost domestic demand, support production, and improve the overall flow of economic activity. The statistics show improving flows of people, goods and capital, with domestic demand driving 68.8% of GDP growth in the first half of the year. Consumer spending alone contributed 52%, making it the key growth engine. China's economy is improving, with freight turnover increasing 5.1% year on year in the first half of the year and passenger turnover rising 4.9%. The central bank just released data showing that M2 grew 8.3% year on year at the end of June.

Based on these four aspects, we can conclude that the economy performed steadily overall in the first half of the year, demonstrating progress and improvement. This is a very strong and valuable achievement. It's particularly remarkable given the dramatic changes in the international situation and significantly increased external pressure since the second quarter. Of course, we are also keenly aware that the external environment remains complex and fluid, internal structural problems have not been fundamentally resolved, and the foundation of China's economy requires further consolidation. Moving forward, we must unswervingly carry out the decisions and plans of the CPC Central Committee, expand and strengthen the domestic economy, consolidate the foundations, maintain our resolve, stay committed to our own path, and unswervingly promote high-quality economic development. We will use the certainty of China's high-quality economic development to counter external uncertainties and continue promoting the steady, long-term development of the Chinese economy. Thank you.

Bloomberg:

Can the NBS provide the contribution rates that final consumption expenditure, net exports and total capital formation made to economic growth in the second quarter? Thank you.

Sheng Laiyun:

Let me brief you on some key data. In the first half of the year, the three drivers of economic growth contributed as follows: final consumption expenditure contributed 52% to economic growth, gross capital formation contributed 16.8%, and net exports of goods and services contributed 31.2%. Breaking this down for the second quarter specifically: final consumption expenditure contributed 52.3% to economic growth, slightly higher than in the first quarter. Meanwhile, gross capital formation contributed 24.7%, while net exports of goods and services contributed 23%. These figures clearly show that domestic demand, especially consumption, remains the primary driver of GDP growth. Thank you.

Economic Daily:

According to the released data, investment growth rates fluctuated during the first half of the year. What factors caused this volatility? How do you assess the investment outlook for the second half of the year? Thank you.

Sheng Laiyun:

Thanks for your questions. Investment growth did fluctuate in the first half of the year. Regarding investment trends, I'd like to share several key points.

First, while nominal investment growth slowed in the first half of the year, fixed-asset investment showed generally stable real growth after price adjustments, and the investment mix also improved. The newly released data shows that fixed asset investment in the first half of the year totaled 24.9 trillion yuan, a nominal increase of 2.8%. However, as you know, prices for production materials, especially construction materials, have dropped significantly since the beginning of this year. When adjusted for these price changes, fixed-asset investment shows a real growth rate of 5.3%. While this is down 0.3 percentage point from the same period last year, it's up 0.5 percentage point from last year's full-year real growth rate. Therefore, the decline in investment growth is not as steep as the nominal growth rate suggests. It's largely stable. Considering price factors, the actual volume of investment activity is quite robust. In addition, the investment mix is also improving. In the first half of the year, manufacturing investment increased 7.5%, accounting for 25.2% of fixed-asset investment, up 1.1 percentage points compared with the same period last year. High-tech services investment also climbed 8.6%, well above the growth rate of fixed-asset investment. These indicators confirm the ongoing improvement in the investment mix.

Second, the fluctuation and slight decline in investment growth reflect both immediate factors and deeper underlying issues. The immediate factors include the complex and volatile external environment, downward price pressures, and heightened business competition, leading market participants to adopt more conservative investment approaches. Looking at deeper factors, China's new development stage has triggered changes in its development approach and a handoff from old to new driving forces. Investment in traditional industries is relatively saturated, requiring capacity reduction in some areas. For example, real estate investment continued to decline in the first half of this year. The adjustment of these traditional sectors will increase pressure on investment growth in the short term. We therefore need to view investment growth changes comprehensively.

Third, the potential for fixed-asset investment is still very large at this stage, so it is important to encourage private investment enthusiasm. The slowdown in investment growth does not mean that investment opportunities are shrinking. There is enormous potential for investment in high-quality development, including new quality productive forces, urban renewal and transformation, and addressing gaps in public services — all areas that require effective investment. Therefore, we should better align with the requirements of high-quality development, optimize investment allocation, improve the investment environment, fully mobilize private investment enthusiasm, and continue to promote healthy investment development. Thank you.

Nanfang Daily, Nanfang Plus:

Since the beginning of this year, measures to stabilize the property market have been continuously introduced. How do you assess the property market's performance in the first half of this year? What positive changes have occurred? Thank you.

Sheng Laiyun:

Since the beginning of this year, all regions and departments have implemented the decisions and deployments of the CPC Central Committee to promote the stabilization of the property market, and have introduced relevant measures based on the specific conditions of each city. Statistical data shows that the effects of relevant policy measures are evident. Although the real estate market experienced some fluctuations in the first half of the year, it has generally moved toward stabilizing and reversing its decline. From the perspective of policy effects, it is mainly reflected in three aspects:

First, market transaction volumes have improved, with the decline in commercial housing sales narrowing compared to the same period last year. In the first half of the year, the sales area of newly built commercial housing nationwide declined 3.5% year on year, narrowing by 15.5 percentage points compared with the same period last year and 9.4 percentage points compared with the whole of last year. Commercial housing sales revenue fell 5.5%, with an even greater narrowing, shrinking 19.5 percentage points compared with the same period last year and 11.6 percentage points compared to the full year last year. The commercial housing market remains relatively active, with second-hand housing transaction volumes increasing compared with the same period last year.

Second, the overall decline in market prices has narrowed, with prices rising in some cities. Today, we've also released housing price data for 70 large and medium-sized cities in June. From this price data, it can be seen that although the sales prices of newly built commercial housing in first-, second- and third-tier cities have fluctuated, the year-on-year decline has narrowed. The data shows that the year-on-year decline in the sales prices of newly built commercial housing narrowed by 0.3 percentage point in first-tier cities, 0.5 percentage point in second-tier cities and 0.3 percentage point in third-tier cities compared with the previous month.

Third, funding sources for the property market have improved. Driven by the "white list" mechanism and the real estate market recovery, debt reduction by real estate enterprises is progressing in an orderly manner. In the first half of the year, the decline in funds available to real estate developers narrowed by 16.4 percentage points compared with the same period last year and by 10.8 percentage points compared with the full year last year. Domestic loans increased 0.6% year on year, whereas domestic loans had decreased by about 6% in the previous year. Efforts to reduce inventory have also been effective. At the end of June, the area of commercial housing for sale nationwide decreased by 4.79 million square meters compared with the end of May, marking the fourth consecutive month of decline.

Therefore, these three positive developments indicate that macroeconomic real estate policies have had a relatively significant impact. Of course, we must also recognize that both the sales area and value of commercial housing are currently declining. The bottoming out of the real estate market requires time, and it is normal for related indicators to fluctuate during this adjustment and transition phase. This also requires us to make greater efforts to promote the stabilization of the real estate market. Thank you.

The Poster News APP:

Developing new quality productive forces is an intrinsic requirement and an important focus of promoting high-quality development. Since the beginning of this year, all regions have been actively cultivating new quality productive forces. How has the development of new quality productive forces progressed? Thank you.

Sheng Laiyun:

Thank you for your question. Developing new quality productive forces is an intrinsic requirement and an important focus of promoting high-quality development. The central government attaches great importance to this and requires all regions to develop new quality productive forces in accordance with local conditions. All regions are also promoting technological innovation, advancing the integration of industrial and technological innovation, and transforming and upgrading traditional industries. In the first half of the year, new quality productive forces continued to be cultivated and grew at an accelerated pace. Several aspects reflect the progress in developing new quality productive forces.

First, innovative achievements continued to emerge. All regions increased their investment in innovation. Currently, China's research and development expenditure accounts for nearly 2.7% of GDP, which has exceeded the EU average and is close to the average level of OECD countries. A number of innovative achievements emerged. According to statistics from relevant departments, in the first five months, the number of valid invention patent applications in China was close to 5 million, an increase of 12.8%, which represents relatively rapid growth. In addition, a number of innovative achievements have attracted widespread international attention. Since the beginning of this year, a series of scientific and technological innovation achievements have received extensive attention both domestically and internationally. These range from the DeepSeek large language model to the robot marathon, and from aerospace to autonomous driving.

Second, emerging industries continued to thrive. As I just reported, in the first half of the year, the value added of high-tech manufacturing industries above designated size increased 9.5%. From January to May, the operating income of strategic emerging service industry enterprises above designated size grew nearly 10%. These achievements in innovation and industrial integration have driven the development of high-tech industries.

Third, the digital economy continued to develop rapidly. We have entered the digital era, where AI is advancing rapidly and data has become a key factor of production. Across the country, regions are actively driving forward both the digitalization of industries and the industrialization of the digital economy. The value added by the core industries of the digital economy accounts for about 10% of GDP, a relatively high share even compared with developed countries.

Fourth, green development continued to improve in both quality and efficiency. Regions across the country have been implementing the new development philosophy and accelerating the growth of green industries. The well-known "new trio" of new energy vehicles, lithium batteries, and solar energy — all green industries — have continued to maintain rapid growth. For example, in the first half of the year, the output of new energy vehicles increased more than 30%, while lithium batteries grew 53.3%. These new energy industries have continued to grow quickly, genuinely making us appreciate that lucid waters and lush mountains are indeed invaluable assets.

Fifth, the transformation and upgrading of industries continued to accelerate. Since the beginning of this year, various regions have continued to advance the renewal and transformation of traditional industries. The pace of transformation has accelerated, particularly as national policies have supported major projects, bolstered key areas, promoted large-scale equipment upgrades, and encouraged the replacement of old consumer goods. Industries are actively embracing Internet Plus, AI Plus and Digital Plus strategies to drive the transformation and upgrading of traditional sectors.

From these five aspects, we can see that the development of new quality productive forces accelerated in the first half of the year. Thank you.

CNBC:

Many analysts are concerned that due to the consumer goods trade-in program, consumption will slow down after June. What is the NBS's outlook for consumption? What are the main factors driving consumption? Thank you.

Sheng Laiyun:

This is a very good question. Before looking ahead to the consumption outlook for the second half of the year, let me first introduce the performance of China's consumer market in the first half of the year. This will help everyone better understand the characteristics and supporting factors of China's consumer market. It will also provide a more intuitive sense of consumption trends for the second half of the year.

The performance of the consumer market this year has been remarkable. Among the many indicators just released, one major highlight is the quarter-on-quarter growth in market sales. In the first half of the year, the year-on-year growth rate of total retail sales of consumer goods accelerated, and market activity increased, both of which strongly supported GDP growth during this period. In the first half of the year, total retail sales of consumer goods reached 24.55 trillion yuan, up 5% year on year. Growth in the second quarter was 5.4%, 0.8 percentage point higher than the first quarter, indicating a steady quarterly improvement. As just announced, consumption contributed 52% to economic growth in the first half of the year, making it a major highlight of this period.

Several characteristics of consumption in the first half of the year are worth noting. First, service consumption saw faster growth. In the first half of the year, service retail sales increased 5.3% year on year, outpacing the 5.1% increase in goods retail sales. The share of services in overall consumption continued to grow. Second, holiday consumption played an increasingly important role in driving economic growth. In the first half of the year, consumption during the three holidays — Spring Festival, May Day and Dragon Boat Festival — was particularly robust, with the number of travelers reaching a record high. In addition, spending on cultural, sports, leisure and transportation services continued to achieve double-digit growth. Third, there was a marked acceleration in the growth of several upgraded consumption categories. After meeting their basic needs for food and clothing, people are increasingly focused on development- and enjoyment-oriented consumption. In the first half of the year, the retail sales of sports goods increased 22.2% year on year, while retail sales of gold and silver jewelry rose 11.3%. Fourth, green consumption gradually emerged as a new trend. In the first half of the year, the consumption of new energy vehicles, energy-saving home appliances and smart home appliances continued to grow at a relatively fast pace. Fifth, traveling and shopping in China continued to gain momentum. In particular, as China expanded its visa-free policy, more tourists visited the country, providing a further boost to domestic consumption. During the May Day and Dragon Boat Festival holidays, the number of foreign visits to China under the visa-free policy rose by 72.7% and 59.4% year on year, respectively. Sixth, new consumption models and business formats continued to emerge. Currently, trends such as self-indulgent consumption, emotional spending, and various new forms of personalized and diversified consumption are all on the rise.

Taken together, these features show that in the first half of the year, China's consumer market became more dynamic and showed positive momentum, driven by a series of policies to boost domestic demand and promote consumption. This suggests a solid foundation for continued consumption growth in the second half of the year. The factors and consumption trends seen in the first half of the year will continue into the second half. In addition, policies to support consumption will continue to be strengthened. Just now, there were concerns about certain aspects of the consumption subsidy policies. However, the relevant authorities have already announced that new stimulus and subsidy measures for the second half of the year are gradually being rolled out, and local governments will continue to introduce additional initiatives to promote consumption. We are now at a critical stage of upgrading our consumption structure, with per capita GDP holding steady above $13,000 for two straight years. This stage is a crucial period for consumption upgrading, with vast potential in cultural tourism, health care and elderly care. With a population of over 1.4 billion, our country has a clear advantage in market scale. However, the gap between urban and rural areas remains considerable, and our consumption level — especially the per capita level — still lags behind that of some developed countries. This gap points to considerable room for growth. China has excellent prospects for future consumption growth and vast market potential. Therefore, we remain highly optimistic about consumption in the second half of the year. Of course, we also recognize that sustaining healthy consumption growth requires raising residents' incomes and further improving the overall consumption environment. In these areas, policies and measures introduced by the central government and relevant departments are continuing to make progress. Local governments need to further implement the central government's directives on expanding domestic demand and follow the guidelines of the action plan to boost consumption. They should work to stabilize employment, promote income growth and improve the consumption environment. By increasing the supply of high-quality goods and services, local authorities can help ensure the sustainable and healthy development of the consumer market. Thank you.

Reuters:

In recent years, China's economy has generally performed well over the first half of the year, with momentum weakening in the second half. The economy posted strong growth in the fourth quarter of last year after fresh policy support was introduced at the end of September. How does the National Bureau of Statistics view the outlook for the second half of 2025? And are you planning additional support measures beyond those introduced in May?

Sheng Laiyun:

Thank you for your questions. Everyone is very interested in the trend of China's economy in the second half of the year. Recently, I have also been reading relevant materials and found that many international institutions and some investment banks have released reports on the outlook of the global economy. Most institutions predict that the global economy will slow in the second half, but the majority have, without prior consultation, raised their expectations for China's economic growth. This shows the confidence of international institutions and investment banks in China's economic development. Looking at the situation in the second half of the year, despite lingering uncertainties in the external environment and significant pressure from internal structural adjustments, we believe that China's economy will have the support to maintain stable growth in the second half of the year. 

First, the steady progress and achievements in economic growth in the first half of the year have laid a solid foundation for achieving the targets for the entire year. In the first half of the year, China's economy withstood pressure, maintained stable growth and showed a momentum of steady progress and positive performance, fully demonstrating its resilience and strong tenacity. As such, this development trend will continue. GDP growth in the first half of the year has already reached 5.3%, paving the way for accomplishing the expected targets.

Second, the trend and practice of high-quality development over the past several years has created a consensus, accumulated new momentum, promoted economic rebalancing and improved the ability of sustainable economic development. Since the 18th CPC National Congress, China has unswervingly advanced economic transformation and high-quality development, driving its economy to make historic achievements and undergo historic transformations. Our people have tasted the benefits of high-quality development. At present, the domestic and global situations are further pushing business entities to accelerate structural adjustments and transform development models, thus promoting economic transition and high-quality development. From the perspective of real-world factors, several leading indicators and positive elements are improving, indicating the sound momentum for high-quality development. In terms of production, after years of transformation, the service sector's contribution rate to economic growth has been rising. Among the three industries, the value added of the service sector accounted for 59.1% of GDP in the first half of the year, and its contribution rate to GDP growth exceeded 60%. Looking at leading indicators in recent months, the service sector climate index has remained consistently within the expansion range of 50% and above, demonstrating its sound momentum in development, and as a key industry with a large share in economic growth, it will continue to sustain this positive trajectory. From the perspective of demand, consumption serves as a "ballast stone" and the primary driver of economic growth. As I introduced earlier, the consumer market became increasingly active in the first half of the year. Driven by consumption policies in the second half of the year, it will continue to maintain a sound development trend, and its role as a "ballast stone" in supporting economic growth will continue to become more prominent. Concerning exports, we have pursued a diversified opening up strategy and built a multifaceted trade structure, with our trade dependence on any single country having dropped to a single-digit percentage. In the first half of the year, China's imports and exports grew by 2.9%, which was achieved amid significant external shocks in the second quarter, reflecting the resilience of our trade sector. Regarding the development of new drivers of growth, they continue to grow, with new industries as well as new forms and models of business maintaining relatively fast growth rates. Based on these factors, a comprehensive assessment shows that China's economy will have solid support for stable growth and high-quality development in the second half of the year.

Third, macroeconomic policies have worked in synergy to safeguard the stable operation of the economy. Since the beginning of this year, China has implemented more proactive and effective macro policies, playing a role in underpinning the economy. According to the requirements of the central government, relevant departments have recently introduced policies for the second half of the year, which will continue to play a crucial role in supporting the economy's stable operation. At the same time, relevant departments have also stated that China has a sufficient policy toolbox and is also strengthening policy reserves, which will be introduced in a timely manner according to market changes.

Given these supporting factors, we believe that China's economy will maintain a stable and positive development trend in the second half of the year. This also explains why numerous international institutions and investment banks hold an optimistic outlook on China's economy. Thank you.

Market News International:

Authorities have recently taken action to address the issue of involuted competition, including calls to remove obsolete capacity from certain industries. What effect will this have on the economic environment? Will these measures help China meet its CPI target and support PPI and industrial profits going forward? Thank you.

Sheng Laiyun:

Thank you for your question. In response to the growing trend of involuted competition in some industries and enterprises, the Central Committee for Financial and Economic Affairs held a meeting on July 1 and clearly stated that we will deepen the development of a unified national market, focus on key and difficult points, regulate disorderly low-price competition among enterprises according to laws and regulations, guide enterprises to improve product quality, and promote the orderly phase-out of outdated production capacity. Relevant departments are formulating related measures based on the guiding principles of the meeting to further strengthen the regulation and governance of market order. These policies and measures are conducive to regulating market order, promoting improvements in the relationship between market supply and demand, and facilitating a reasonable rebound in prices. They are also beneficial to improving corporate profits and enhancing vitality, thereby advancing economic restructuring and high-quality development. Thank you.

Shou Xiaoli:

Let's continue. Due to the limited time, we will take two final questions.

Asharq News:

What measures might the government take to mitigate the impact of tariffs on the Chinese economy? Will the government resort to increased spending or promoting domestic consumption?

Sheng Laiyun:

Thank you for your question. High tariffs certainly increase trade costs, which is detrimental to economic and trade growth. Since the beginning of this year, faced with changes and pressures from the external environment, the Chinese government has responded actively and taken proactive action, placed greater emphasis on strengthening the domestic economic cycle, and intensified the implementation of more proactive macroeconomic policies to expand domestic demand and promote consumption. We will unswervingly manage our own affairs well, leveraging the stability and certainty of the Chinese economy to counter external uncertainties.

We have adopted comprehensive measures to strengthen the domestic cycle and promote steady economic growth. On the one hand, we have continuously increased the support of fiscal policies. I also mentioned earlier that this year's fiscal policies are more effective, with greater support for the trade-in of consumer goods and the upgrading and transformation of industrial equipment. These policies have played a positive role in economic performance. The policies to expand domestic demand are active and effective. Domestic demand—particularly consumption—has been the major driver of economic growth in the first half of the year. On the other hand, we have actively advanced high-level opening up, expanded our "circle of friends," promoted trade diversification, and reduced the risk of dependence on a single market. These measures have delivered remarkable results. We believe that with the further implementation of these policies, the effects of promoting consumption, stabilizing investment and expanding foreign trade will become more apparent, continuing to support steady economic growth. Thank you.

Shou Xiaoli:

The last question, please.

Yicai:

In June, the year-on-year CPI ended the negative growth in the previous four consecutive months, and the core CPI, excluding food and energy prices, continued to rise, reaching a new high for nearly 14 months. What is your view on the inflation situation in the second half of the year? Thank you.

Sheng Laiyun:

Thank you. The issue of prices affects both economic growth and individual consumption behavior, making it of major interest to everyone. Regarding the issue of prices, I have a few points to make.

First, positive changes took place in the CPI in June, which is the result of multiple factors. In June, the CPI rose by 0.1% year on year, which is its first rebound after several months of standing at -0.1%; and the core CPI rose by 0.7% year on year, reaching a new high since last year. This shows that coordinated efforts to expand domestic demand and promote reasonable price rebound have brought about positive changes in the price market. The rebound in CPI in June was primarily driven by the rise in industrial consumer goods prices supported by large-scale equipment upgrades and consumer goods trade-ins. Consumer goods supported by the trade-in policies, such as home appliances and office supplies, saw price increases in June. In addition, some changes in the international market have also exerted spillover effects. In June, oil prices rose, and rising gasoline prices helped cushion the pressure on CPI from falling energy prices. At the same time, international prices of non-ferrous metals, especially the prices of precious metals, went up, and the prices of related platinum jewelry in the domestic market also showed a significant increase, which played an additional supporting role in the rebound of the CPI. Overall, it drove the CPI to rise by nearly 0.2 percentage point year on year in that month. At the same time, June was hot and rainy, affecting the supply of some vegetables. The prices of some seafood, aquatic products and beef also showed a phased rebound. These factors together supported the CPI turning positive in June.

Second, the recent low level of prices has structural and phased characteristics. From the situation in the first half of the year, this characteristic is very obvious. In the first half of the year, consumer prices fell, largely influenced by food and energy prices. In the first half of the year, food prices fell by 0.9% year on year, and energy prices fell by 3.2%, pulling down the CPI by about 0.4 percentage point. Excluding the prices of food and energy, the core CPI rose by 0.4% year on year, and rose by 0.7% in June, showing structural characteristics. At the same time, it also has a phased characteristic. The current low level of prices is attributable to changes in the domestic and international macroeconomic conditions, as well as to China's development phase. As China is in a critical stage of transformation and upgrading, some traditional growth drivers are undergoing adjustment, and prices of relevant products, such as steel, cement and building materials related to the real estate sector, are continuously adjusting. At the same time, as new growth drivers are developing, prices of high-tech products and related high-tech manufacturing products are rising. Since the growth of new economic drivers has not yet been able to offset the pressure from adjustments in traditional growth drivers, overall prices are still adjusting— a process that is also necessary for clearing the market in certain industries. In addition, this is also attributable to changes in the external environment at this stage, which have increased downward pressure on prices.

Third, regarding the price trend in the second half of the year that you are interested in, we are expecting an overall moderate recovery of prices from a low level in the second half of the year. There are several supporting factors. First, the economy has maintained a steady growth momentum, and aggregate demand continues to expand, which has laid a macroeconomic foundation for stable price performance. Second, continued effectiveness of relevant policies, especially policies for expanding domestic demand, will boost consumer spending and help drive a stable rebound in consumer prices. Third, relevant central meetings called for the regulation of disorderly low-price competition among enterprises in accordance with laws and regulations, which is also conducive to regulating market order and improving the market environment. Recently, the photovoltaic, cement and automobile industry associations have respectively taken self-regulatory actions, which will have a positive impact on prices in related fields. Fourth, the holiday effect continues to exist, which will promote the stability or rise of related service prices. In the second half of the year, there are still a series of holidays such as the summer vacation, National Day holiday and Mid-Autumn Festival. As I mentioned earlier, the holiday effect is still very obvious. Fifth is the technical factor. In the second half of the year, the carryover effect on both CPI and PPI will weaken, progressively reducing the downward impact on CPI and PPI. From these perspectives, we expect that prices will maintain a moderate upward trend from low levels. Thank you.

Shou Xiaoli:

Thank you, Mr. Sheng, and friends from the media for joining us. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Liu Caiyi, Yang Chuanli, Liu Sitong, Yan Bin, Yan Xiaoqing, Wang Xingguang, Zhang Tingting, Xu Kailin, Huang Shan, Fan Junmei, Li Huiru, Liu Qiang, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Zou Lan, deputy governor of the People's Bank of China (PBC)

Mr. Peng Lifeng, director general of the Credit Policy Department of the PBC

Mr. Yan Xiandong, director general of the Statistics and Analysis Department of the PBC

Ms. Cao Yuanyuan, deputy director general of the Financial Market Department of the PBC

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 14, 2025

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Zou Lan, deputy governor of the People's Bank of China (PBC), who will brief you on the implementation of monetary and credit policies and financial statistics in the first half of the year, and also take your questions. Also joining us today are Mr. Peng Lifeng, director general of the Credit Policy Department of the PBC; Mr. Yan Xiandong, director general of the Statistics and Analysis Department of the PBC; and Ms. Cao Yuanyuan, deputy director general of the Financial Market Department of the PBC.

Now, I'll give the floor to Mr. Zou for his introduction.

Zou Lan:

Good afternoon, friends from the media. Thank you for your continued interest in and support for the work of the PBC. It is my pleasure to have this opportunity to brief you on the implementation of monetary and credit policies as well as financial statistics in the first half of the year. My three colleagues and I will also take your questions.

Since the beginning of this year, the external environment has grown even more complicated and challenging, with weakening global growth momentum and a rise in trade protectionism. In line with the guiding principles of the Central Economic Work Conference and the arrangements set out in the Government Work Report, we need to implement a moderately loose monetary policy. During the press conference held in May, PBC governor Pan Gongsheng elaborated on the concept of a moderately loose monetary policy. In short, this means maintaining sufficient liquidity, ensuring favorable social financing conditions, and keeping overall financing costs relatively low. Policy implementation should adapt to changing circumstances in a timely manner and with the appropriate intensity. From an international perspective, China has been continuously lowering the required reserve ratio (RRR) and interest rates, maintaining a supportive monetary policy stance with cumulative effects. Since 2020, the PBC has cut the RRR 12 times and reduced policy interest rates nine times, driving down the one-year and over-five-year loan prime rates (LPR) by 115 and 130 basis points, respectively.

To implement a moderately loose monetary policy, the PBC further strengthened counter-cyclical adjustments and introduced a package of financial support measures in May. A range of monetary policy tools has been utilized in a comprehensive manner to maintain sufficient liquidity and support reasonable growth in money and credit supply. The market-oriented interest rate regulation framework has been improved to enhance the implementation and oversight of interest rate policies and reduce aggregate financing costs. Greater efforts have been made to leverage both the aggregate and structural functions of monetary policy tools, in a bid to further optimize credit structure, enhance coordination between monetary policy and other macro policies, and create synergy to continuously foster a favorable environment for supporting economic recovery and improvement.

Financial data from the first half of the year shows that the monetary policy has had a clear impact in supporting the real economy. First, overall financial aggregate expanded reasonably. By the end of June, the stock of aggregate financing had increased by 8.9% year on year, the M2 money supply increased by 8.3%, and RMB loans increased by 7.1%. If we remove the impact of replacing local government financing vehicle loans with special-purpose local government bonds, the year-on-year growth of loans would have been ever higher on a comparable basis. Second, aggregate financing costs remained low. From January to June, the weighted average interest rate on newly-issued corporate loans stood at around 3.3%, about 45 basis points lower than the same period last year. The interest rate on newly-issued personal housing loans was approximately 3.1%, down about 60 basis points year on year. Third, the credit structure continued to improve. By the end of May, inclusive loans to micro and small businesses had increased by 11.6% year on year, medium- and long-term lending to the manufacturing sector had grown by 8.8%, and lending to the tech sector had surged by 12%. All of these outpaced the overall loan growth. Fourth, the financial market showed increased resilience. Despite significant changes in the external environment and global financial markets, major financial sectors including equities, bonds and foreign exchange have remained stable.

From both economic theory and practical experience, it is clear that the transmission of monetary policies takes time, and the effects of policies already implemented will continue to unfold. Moving forward, the PBC will continue to implement a moderately loose monetary policy, closely monitoring the transmission and actual impact of policies implemented earlier. Based on the economic and financial situation both at home and abroad, as well as the operation of the financial market, the PBC will properly manage the pace and intensity of policy implementation, in a bid to better expand domestic demand, stabilize social expectations, stimulate market vitality, and support the achievement of this year's socioeconomic development goals and tasks.

That's all from me for now. I will leave more time for questions from the floor.

Xing Huina:

The floor is now open for questions. Please state your news organization before asking your questions.

CCTV:

The PBC introduced a series of monetary and credit policy measures in the first half of the year. What is the current status of their implementation? Also, what further measures will the PBC take in the second half of the year to promote sustained economic recovery and improvement? Thank you.

Zou Lan:

Thank you for your questions. I think many friends from the media are also closely following these issues. Since the beginning of this year, the PBC has focused on key economic tasks, strengthened the targeting and effectiveness of monetary and credit policies, adopted comprehensive measures, effectively responded to external shocks and promoted economic recovery and improvement.

In terms of monetary policy, we have maintained an appropriately accommodative monetary policy orientation. On May 7, governor Pan Gongsheng announced a package of 10 monetary policy measures. In terms of quantity, we have employed a mix of monetary policy tools, including RRR cuts, to maintain ample liquidity and enhance medium- and long-term liquidity support. In terms of prices, we have emphasized the role of interest rate tools in regulation, lowering policy rates, reducing rates of structural monetary policy tools and individual housing provident fund loans, cracking down on irregular interest rate practices, and strengthening self-discipline in interest rate management. In terms of structure, we have established relending for service consumption and elderly care, increased the relending quota for technological innovation and industrial transformation, created a risk-sharing tool for technological innovation bonds, and intensified support for key areas of domestic demand such as consumption and technological innovation. The package of policies has been fully implemented within one month, playing a positive role in boosting market confidence, stabilizing expectations, and fostering a favorable monetary and financial environment for promoting economic recovery and improvement. Just now, I introduced the financial data for the first half of the year, which also reflects the effectiveness of these policies.

In terms of credit policy, we have strengthened policy guidance and assessment evaluation. We have continued refining the policy framework, promoting the issuance of the Guidance on Advancing the Five Major Tasks, and guiding the financial system to increase credit investment in technology, green, inclusive, elderly care and digital areas. We improved the assessment and evaluation mechanism for the five major tasks, forming a closed-loop process of policy guidance, funding support and performance evaluation. We leveraged finance to help resolve structural imbalances in key industries, promoting quality improvement and upgrading, and reasonably guaranteed the financing needs of foreign trade enterprises in accordance with market-oriented and law-based principles. We also optimized cross-border payment and settlement services to support stable employment and economic stability. By the end of May, green, technology and inclusive loans grew by 27.4%, 12% and 11.2% year on year, respectively, maintaining a relatively rapid growth rate.

In the next stage, the PBC will further implement an appropriately accommodative monetary policy, ensure the implementation of the various monetary policy measures that have been introduced, and improve the quality and efficiency of financial services for the real economy.

In terms of total volume, we will strike a proper balance in the intensity and pace of policy implementation, maintain ample liquidity, ensure that the growth of social financing scale and money supply aligns with the expected targets of economic growth and overall price levels, therefore continuously creating a suitable financial aggregate environment.

In terms of structure, we will highlight the key directions of financial services for the real economy; focus on technological innovation, consumption expansion and private small and micro enterprises; enhance policy coordination; make full use of various structural monetary policy tools; and intensify support for key areas and weak links.

In terms of transmission, we will strengthen the implementation and supervision of interest rate policies, better leverage industry self-discipline, safeguard the competition order in the banking sector, improve the efficiency of fund use, prevent idle fund circulation, and ensure financial support for the real economy while maintaining the soundness of the financial system.

In terms of improving the monetary policy framework, we will further improve the market-oriented interest rate regulation mechanism, optimize the intermediate variables of monetary policy, continuously improve the monetary policy tool system, and establish a credible, normalized and institutionalized policy communication mechanism, so as to better serve high-quality development.

That is all from me. Thank you.

Elephant News:

How was the total amount and structure of credit in the first half of this year? Thank you.

Zou Lan: 

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

Yan Xiandong:

Thank you for your question. Since the beginning of this year, the PBC has earnestly implemented the guiding principles of the Central Economic Work Conference and the deployments of the Government Work Report. We have implemented an appropriately accommodative monetary policy, strengthened counter-cyclical adjustments, comprehensively used various monetary policy tools, and served the high-quality development of the real economy. In terms of effect, credit in the first half of the year was characterized by growth in total volume and structural optimization.

The total amount of credit maintained steady growth. At the end of June, the outstanding balance of yuan-denominated loans held by financial institutions was 268.56 trillion yuan, an increase of 7.1% year on year. In the first half of the year, RMB loans increased by 12.92 trillion yuan, indicating that the financial system maintained a high level of credit support for the real economy. The main characteristics are as follows:

From the perspective of borrowing entities, loans to enterprises and public institutions are the main driver of credit growth. In the first half of the year, loans to enterprises and public institutions increased by 11.57 trillion yuan, accounting for 89.5% of all new loans, up 6.6 percentage points from the same period last year. Of this total, medium- and long-term loans increased by 7.17 trillion yuan, representing the primary component of enterprise and institutional loan growth. This indicates that the financial sector continues to provide stable funding sources for the real economy. Household loans increased by 1.17 trillion yuan, with business loans rising by 923.9 billion yuan, reflecting financial institutions' continued strengthening of support for individual and small business owners' production and business activities.

From the perspective of industry allocation, the sectoral structure of loans continues to improve. New loans are primarily directed toward key areas such as manufacturing and infrastructure. Specifically: At the end of June, the balance of medium- and long-term loans to manufacturing grew 8.7% year on year, increasing by 920.7 billion yuan in the first half of the year. The balance of medium- and long-term loans to infrastructure grew 7.4% year on year, rising by 2.18 trillion yuan in the year's first half.

In addition, loans in the five major areas of tech finance, green finance, inclusive finance, pension finance and digital finance have demonstrated both increasing total volume and broader coverage. Strengthening efforts in these five major areas is a key focus for the financial sector to support the high-quality development of the real economy, as well as an important part of deepening supply-side structural reform in the financial sector. In recent years, the PBC has continued to advance the five major areas to better support major strategies, key sectors and weak links. As of the end of May, the balance of loans for the five major areas stood at 103.3 trillion yuan, up 14% year on year. Tech loans, which have drawn significant public attention, had a balance of 43.3 trillion yuan, rising 12% year on year. Among these, the balance of loans to tech-based enterprises reached 22.5 trillion yuan, while those to tech-related industries totaled 32.8 trillion yuan. You may notice that the tech loan balance is lower than the sum of its subcategories because we eliminate overlaps between subcategories when compiling data for the five major financial areas, providing an accurate reflection of our work results. As of the end of May, green, inclusive, pension and digital loans grew 27.4%, 11.2%, 38% and 9.5% year on year, respectively. All of these loan growth rates exceeded the overall loan growth rate for the same period. Financing accessibility has improved significantly. We serve a total of 78.39 million enterprises and individuals, an increase of 5.88 million from the same period last year. Among these, we serve 4.4 million enterprises, an increase of 250,000 from the same period last year.

That's all for my answer. Thank you.

Bloomberg News:

Many small and medium-sized banks are still investing in bonds aggressively. How does the central bank view their investment risks?

Zou Lan:

I'd like to invite Ms. Cao to answer the question.

Cao Yuanyuan:

First, thank you for your concern about China's bond market. In the first half of this year, China's bond market operated smoothly, with generally stable expectations and steady market growth, effectively supporting financing for the real economy. In the first half of 2025, 44.3 trillion yuan worth of bonds were issued in China's bond market, up 16% year on year. Net bond financing reached 8.8 trillion yuan, accounting for 38.6% of total social financing growth. This provided strong support for the implementation of proactive fiscal policies and financing for brick-and-mortar businesses. In the first half of the year, 13.3 trillion yuan in government bonds, 7.3 trillion yuan in corporate credit bonds and 6 trillion yuan in financial bonds were issued. Bond financing continued flowing toward key areas: more than 350 billion yuan in private enterprise bonds and more than 1 trillion yuan in green and technology-related bonds were issued in the year's first half. In June 2025, the average issuance rate of corporate credit bonds was 2.08%, down 32 basis points from the same period last year, further reducing financing costs for the real economy.

Regarding your concern about small and medium-sized banks' bond investments, bond investment is an essential component of bank assets. In recent years, loans and bonds have accounted for 60% and 25% of total bank assets, respectively, maintaining relative stability. Banks hold 70% of all government bonds and about 20% of all corporate credit bonds, providing strong support for the implementation of fiscal policies and the development of real economy. For small and medium-sized banks, it is reasonable — within regulatory limits — for them to appropriately increase bond holdings and allocate more safe-haven assets based on their own asset allocation strategies, as this helps smooth fluctuations in operating profits. Meanwhile, banks' spontaneous buying and selling of bonds serve as a market stabilizer. When bond rates are relatively high compared to loan rates and bond prices are relatively low, banks will buy bonds, helping to stabilize the market. Conversely, when bond rates are low and bond prices are high, banks selling some bonds can realize profits while maintaining their own sustainability in supporting the real economy.

Of course, we believe that small and medium-sized banks also need to maintain their bond investments at a reasonable level, striking a balance between investment returns and exposure to risk. For financial institutions that take a relatively aggressive approach to individual bond investments, attention should be paid to the interest rate and credit risks faced by the bonds. The PBC will continue to strengthen market monitoring, sharing information on high-risk institutions identified through monitoring with institutional regulatory authorities in a timely manner. We will pay attention to the capital adequacy ratio (CAR) and market risks. At the same time, the PBC will continue to enhance market development by continuously enriching interest rate and credit risk management tools and leveraging market mechanisms to effectively prevent financial market risks. 

That is all from me. Thank you for your question.

Haibao News:

Recently, the PBC and relevant departments introduced guidelines on ramping up financial support to effectively boost consumption. What specifically are the main measures? Thank you.

Zou Lan:

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

Peng Lifeng:

Thank you for your question. Boosting consumption is the top priority for the economic work in 2025. In accordance with the decisions and arrangements of the CPC and the State Council, the PBC, in collaboration with relevant departments, issued guidelines on ramping up financial support to effectively boost consumption. These guidelines aim to direct financial institutions to enhance their services from both supply and demand sides of consumption, so as to fulfill the diverse financing needs of business entities and consumers. It seeks to expand the supply of high-quality consumption and help unleash the potential for consumption growth. 

First, supporting the enhancement of consumption capacity and fostering consumption demand. For residents to consume, they need an income, and to have an income, they need jobs. Therefore, stable employment and income growth are fundamental to expanding household consumption. The guidelines focus on supporting employment, increasing residents' income from property, strengthening insurance protection, and other obvious areas of financial support. Specifically, the document proposes thoroughly implementing policies on guaranteed entrepreneurship loans, innovating products for financial wealth management, and optimizing insurance coverage systems for elderly care and health, among other measures.

Second, building a multi-tiered financial service system to support consumption, so as to meet the financing needs of market entities in the consumption sector in all aspects. The guidelines require giving play to the leading role of credit, making good use of refinancing policy tools, and maximizing support for first-time loans, renewal loans, and medium- and long-term loans for eligible business entities. The document also discusses maximizing support for bonds and equities and expanding diversified consumption financing channels. 

Third, providing targeted financial support for key areas of consumption to improve the efficiency of financial resource allocation. The guidelines focus on main areas as determined by industry departments, such as commodity consumption, service consumption and new forms of consumption, as well as circulation and other key stages of consumption. It requires financial institutions to innovate financial products in line with consumption contexts and characteristics, and promote the advancement of quality and efficiency of financial services in the consumption sector.

Fourth, strengthening basic financial services to aid the optimization of the consumption environment, and enhancing the willingness and enthusiasm of consumers to consume. The guidelines propose continuous optimization of consumption payment services in food, accommodation, transportation, travel, shopping, entertainment, medical care and other key consumption contexts. They call for improving the establishment of the credit system in the consumption sector and strengthening the protection of financial consumers' rights. 

It should be emphasized that service consumption is crucial to boosting overall consumption and expanding domestic demand. It also has an advantage in creating and absorbing employment. Commodity consumption in China is relatively well-developed, as its share of GDP is basically on par with international levels. However, service consumption remains comparatively insufficient and has plenty of room to develop. At present, the service consumption market demand is relatively high, and financial support to meet the demand is generally adequate. The primary obstacle to expanding service consumption, however, lies in supply. Therefore, the PBC has specially established a 500 billion yuan refinancing facility for service consumption and elderly care. The purpose is to guide financial institutions to provide targeted support to accommodation, catering, culture, tourism, sports, entertainment, education, elderly care and other service sectors to increase high-quality supply and make up for the shortcoming. This will give more play to the role of consumption in developing the economy and promote the formation of a positive cycle in which supply creates demand, and demand drives supply.

Going forward, the PBC will work in conjunction with relevant departments to continuously strengthen the coordination of financial, fiscal and industrial policies. We will guide local governments and financial institutions to accelerate the effective implementation of the guidelines, make every effort to enhance financial service for consumption, and provide strong financial support for boosting and expanding consumption. Thank you.

Market News International:

Recently, the yuan has been appreciating against the U.S. dollar but remains weak against a basket of currencies. How does the PBC view the current performance of the yuan exchange rate? Is there upward pressure on the yuan against the U.S. dollar? And will the central bank take necessary measures to stabilize the exchange rate? Thank you. 

Zou Lan:

Thank you for your questions; I will take these. Everyone is closely watching changes in the Federal Reserve's monetary policy. Recently, the growth rate of the U.S. economy has slowed, but the price level remains higher than the Federal Reserve's target. Furthermore, the tariff policy has increased uncertainty in the U.S. inflation trend, affecting the pace and path of the Federal Reserve's interest rate cuts.

The heightened volatility in the U.S. dollar index and U.S. Treasury yields has generated spillover effects across global financial markets. The dollar index has fallen from above 109 at the beginning of the year to around 97, a decline of 11%. The 10-year U.S. Treasury yield briefly rose above 4.8%, marking its highest level since December 2023, but has recently pulled back to around 4.4%. In comparison, China's financial market has shown strong resilience and has been generally stable. The yuan exchange rate against the U.S. dollar experienced some fluctuations in early April but quickly stabilized afterward. Since the release of the joint statement on the China-U.S. Economic and Trade Meeting in Geneva in May, the yuan exchange rate against the U.S. dollar has exhibited two-way fluctuations and remained stable below 7.2.

Multiple factors affect the exchange rate, such as economic growth, monetary policy, financial markets, geopolitics and risk events. Uncertainties persist regarding the future direction of the dollar, but China's domestic fundamentals continue to improve. This provides a solid foundation for the yuan exchange rate to maintain two-way fluctuations and overall stability. First, China's economy has maintained steady growth. GDP in the first quarter increased by 5.4% year on year, which is a good start. On April 25, the meeting of the Political Bureau of the CPC Central Committee made important arrangements concerning economic work, stating that China's economy will sustain the momentum of high-quality development. Second, the market expects the U.S. Federal Reserve to restart interest rate cuts in the year's second half. With major developed economies cutting rates, expectations are mounting for the Federal Reserve to follow suit. This will alleviate the China-U.S. monetary policy misalignment, leading to a narrowing interest rate differential between China and the U.S. Third, a basic equilibrium has been maintained in the balance of payments. In 2024, China's current account surplus represented 2.2% of GDP, within a reasonable and balanced range. China's financial market operates stably while steadily advancing its opening up. Yuan-denominated assets retain their appeal, with cross-border capital flowing in a two-way orderly manner. In the first five months of this year, the net capital inflow from non-bank sectors such as enterprises and individuals was approximately $100 billion. Fourth, significant progress has been made in the development of the foreign exchange market. Market participants have become more sophisticated, trading behaviors have become more rational, and market resilience has significantly increased. In the first half of the year, both the corporate hedging rate and the share of yuan-denominated cross-border trade settlements rose to approximately 30%, indicating a noticeable improvement in enterprises' ability to cope with external shocks.

China will not seek to obtain a global competitive edge through exchange rate depreciation. The PBC's stance on exchange rate policy is clear and consistent. We will continue to uphold the decisive role of the market in exchange rate formation and maintain exchange rate flexibility. At the same time, we will strengthen guidance over expectations, prevent risks of exchange rate overshooting and keep the yuan exchange rate generally stable and at an adaptive and balanced level. Thank you.

21st Century Business Herald:

This year, the PBC introduced a series of incremental policies to support technology finance and took innovative steps to launch a sci-tech board in the bond market. What is the latest progress and achievements? What are the considerations for the next step? Thank you.

Zou Lan:

We will have Ms. Cao from the Financial Market Department answer this question.

Cao Yuanyuan:

Thank you for your questions. The work on technology finance is crucial for implementing an innovation-driven development strategy and ensuring the financial sector serves the real economy. This year, in accordance with the decisions and plans of the CPC Central Committee and the State Council, the PBC, together with relevant departments, introduced two incremental initiatives. One is the optimization of relending facilities for sci-tech innovation and technical transformation. The other is the launch of a sci-tech board in the bond market. These initiatives have advanced the development of a sci-tech ecosystem through credit, bond and equity channels, achieving good results so far.

First, the relending facility for sci-tech innovation and technical transformation has expanded significantly. The policy has increased in scale, reduced interest rates and broadened coverage. By the end of May 2025, banks have signed agreements for sci-tech innovation and technical upgrading loans totaling 1.7 trillion yuan, 1.9 times that of the end of 2024. Outstanding loans reached 614 billion yuan, supporting 15,000 sci-tech small- and medium-sized enterprises (SMEs) in securing their first-ever bank financing, providing financial support for 3,983 equipment renewal projects in key fields.

Second, the launch of a sci-tech board in the bond market is an innovative measure to support technology finance. It supports the issuance of sci-tech innovation bonds by three types of institutions through differentiated arrangements in the bond issuance and trading systems. That is, financial institutions, sci-tech enterprises and equity investment institutions. As of June 30, since its launch in May, 288 entities in the bond market have issued sci-tech innovation bonds totaling approximately 600 billion yuan, of which over 400 billion yuan were issued in the interbank market. This has not only promoted the cultivation and growth of emerging and future industries but also provided strong support for traditional industries to utilize new technological achievements.

Among the three types of issuers of sci-tech innovation bonds, today I would like to focus on the sci-tech innovation bonds issued by equity investment institutions. As we know, equity investment institutions are a major force for long-term capital investment. They typically invest in early-stage projects, small enterprises and advanced core technologies. However, these institutions are often asset-light entities facing long investment cycles. In the past, such institutions have rarely been financed through bond issuance, and investors were quite cautious about bonds issued by these equity investment institutions. Consequently, their financing costs were relatively high. To facilitate bond issuance by equity investment institutions, we have specifically created a risk-sharing facility for sci-tech innovation bonds. Supported by the PBC's low-cost relending funds, this facility, together with local governments and market-oriented credit enhancement institutions, provides a package of incremental support, including guarantees for bond issuance by equity investment institutions and Credit Risk Mitigation Warrants. In addition, the risk-sharing facility also supports the issuance of sci-tech innovation bonds through direct investment.

As of June 30, a total of 27 equity investment institutions in the interbank market had issued 15.35 billion yuan in sci-tech innovation bonds. Notably, five were privately owned institutions that benefited from credit enhancement through risk-sharing instruments, resulting in three policy effects: First, longer bond terms. Through diversified maturity structures with embedded options, these institutions issued bonds with tenors of five years and even up to 10 years, which better match the characteristics and financing needs of equity investment funds. Second, lower issuance costs. The bond issuance rates for these private institutions were relatively low, ranging from 1.85% to 2.69%, with strong market demand. It should be noted that these bonds were backed by guarantees from risk-sharing tools, so the issuance rates reflect the credit of those tools, significantly reducing financing costs for private equity investment institutions. Third, stronger support for innovation capital formation. The institutions that issued bonds generally have extensive investment experience, strong performance records and excellent management teams. They are key players in early-stage, small-scale, long-term and hard-tech investments. The funds raised through these bonds are used for establishing or expanding private equity investment funds, effectively leveraging the leadership role of fund managers and encouraging greater private capital investment in the technology innovation sector.

Moving forward, the PBC will continue to collaborate with relevant departments to make full use of risk-sharing tools for sci-tech innovation bonds. The central and local governments will coordinate efforts to promote development of the technology innovation bond market. This will help nurture a robust financial ecosystem to support technological innovation and provide stronger financial backing for achieving high-level technological self-reliance. Thank you.

Red Star News:

What were the key highlights in social financing and money supply growth in the first half of this year? How should we interpret these trends? Thank you.

Zou Lan:

Thank you. Mr. Yan will answer your questions. 

Yan Xiandong:

Since the beginning of the year, the PBC has thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council, adopting a moderately accommodative monetary policy while maintaining ample liquidity.

Financial aggregate data for the year's first half showed that social financing scale and money supply grew steadily, matching expectations for economic growth and overall price levels. By the end of June, China's social financing scale and broad money supply (M2) both posted year-on-year growth of 8.9% and 8.3% respectively, up 0.8 and 2.1 percentage points from the same period last year.

Aggregate social financing grew at a reasonable pace, with the financial system effectively meeting the funding needs of the real economy. In the first half, the increment in aggregate social financing totaled 22.83 trillion yuan, up 4.74 trillion yuan year on year. On the one hand, proactive fiscal policy took effect early, with the financial system strengthening coordination, leading to substantial year-on-year growth in government bond financing. In the first half, net government bond financing reached 7.66 trillion yuan, up 4.32 trillion yuan year on year. Of this, net treasury bond financing totaled 3.37 trillion yuan, up 1.8 trillion yuan year on year, while net local government bond financing reached 4.29 trillion yuan, up 2.52 trillion yuan year on year. On the other hand, financial institutions maintained solid credit support for the real economy. In the first half, financial institutions extended 12.74 trillion yuan in new yuan-denominated loans to the real economy, up 279.6 billion yuan year on year.

M2 rebounded from the same period last year, maintaining ample liquidity. First, government bonds were issued earlier, leading to increased bond investments by financial institutions and corresponding increases in money creation. In the first half, with heavy government bond issuance, financial institutions' bond investments increased 6.01 trillion yuan, up 3.19 trillion yuan year on year. Second, steady credit growth also supported money creation. Additionally, measures to address capital circulation last year resulted in a lower monetary base in the same period last year. This year, corporate deposit growth recovered, driving up money supply growth. In the first half, corporate deposits increased 1.77 trillion yuan, up 3.22 trillion yuan year on year.

Overall, financial aggregates grew at a reasonable pace in the first half, providing strong support for the real economy's recovery and improvement. Thank you.

Economic Daily:

What was the financing situation for small- and medium-sized enterprises (SMEs) and private companies in the first half of this year? Looking ahead, what steps will the PBC take to strengthen financial support for these businesses? Thank you.

Zou Lan:

Thank you. Mr. Peng will answer your questions. 

Peng Lifeng:

Thank you for your questions. Financing support for SMEs and private companies is a crucial part of promoting inclusive finance and achieving common prosperity. In recent years, the PBC, following decisions and arrangements made by the CPC Central Committee and the State Council, has focused on inclusive finance, especially for SMEs and private companies. Starting from policy guidance, funding support and capacity building, we have continuously improved the institutional mechanisms that enhance access to affordable and convenient financing.

First, we have intensified financial support for SMEs and private companies. One major step has been implementing the 25-point plan to strengthen financial support for the private economy. We've also strengthened financial service capacity, conducted regular assessments of policy outcomes and guided financial institutions to uphold the principle of treating all enterprises equally. As of the end of May, the balance of inclusive loans to micro and small enterprises stood at 34.42 trillion yuan, up 11.6% year on year, with an average annual growth rate of more than 20% over the past five years. Meanwhile, loans to privately controlled enterprises totaled 44.95 trillion yuan.

Second, we have worked to steadily reduce financing costs for SMEs and private companies. We have deployed various monetary policy tools to maintain ample liquidity and continued leveraging the effectiveness of Loan Prime Rate (LPR) reform and the market-based deposit rate adjustment mechanism. We have launched pilot programs to improve transparency around overall corporate loan financing costs, aiming to steadily lower comprehensive financing costs for privately held enterprises and micro and small businesses. In May, the weighted average interest rates for newly issued inclusive loans to micro and small enterprises and loans to private enterprises stood at 3.69% and 3.45%, respectively — down 0.66 and 0.6 percentage points year on year.

Third, we have supported more diversified financing channels for SMEs and private companies. We have leveraged the amplifying and guiding role of the bond financing support instruments for private enterprises, providing credit enhancement for their bond issuance. Financial institutions have been encouraged to issue financial bonds dedicated to supporting micro and small enterprises, with the funds raised earmarked specifically for that purpose. We have also established, improved and actively promoted a unified registration and publicity system for movable assets and rights-based collateral to facilitate financing for SMEs.

Looking ahead, the PBC will focus on the following areas to further enhance financial services for SMEs and private companies.

First, we will further improve the policy framework for financial support to private enterprises and micro and small businesses. We will launch financial service capacity enhancement programs and guide reasonable growth in inclusive micro and small business loans and private economy loans. We will strengthen the credit enhancement system for private SMEs, fully leveraging the positive role of government-backed financing guarantees, information sharing and financial derivatives to improve corporate financing accessibility.

Second, we will continue to increase financial resource allocation. We will implement a moderately accommodative monetary policy and make good use of structural monetary policy tools such as relending for agriculture and small businesses, as well as relending for technological innovation and technical transformation. We will promote well-regulated development of supply chain finance and strengthen financial support for private micro, small and medium enterprises (MSMEs).

Third, we will help enterprises achieve efficient financing connections. We will strengthen communication and cooperation with industry competent authorities to help financial institutions improve the efficiency of financing matchmaking. We will comprehensively promote the national credit information sharing platform for MSMEs' cash flows, supporting precise delivery of credit funds to underserved areas, such as first-time borrowers, start-ups and small businesses. Thank you.

Xing Huina:

We have time for one final question. Please raise your hand if you'd like to ask it.

Financial Times:

How have structural monetary policy tools been rolled out so far? Are there plans to introduce new ones or raise existing quotas this year? Thank you.

Zou Lan:

I'll answer this question. Based on the goals and requirements for high-quality economic development, the PBC has drawn on international experience in recent years and combined it with domestic realities. While implementing macroeconomic policy, we have extensively created and implemented structural monetary policy tools around supporting major national strategies, key sectors and weak links to further enhance the adaptability and precision of financial services for economic structural adjustment and high-quality economic development. Structural policy tools have achieved full coverage of all five major areas in the financial sector while also providing strong support for the steady and healthy development of the real estate market, capital market and other sectors.

In May, the PBC introduced another package of financial policy measures, many of which were structural policy tools aimed at further supporting economic structural transformation and upgrading.

First, we introduced the service consumption and elderly care relending facility and the sci-tech innovation bond risk-sharing instrument. The service consumption and elderly care relending facility has a quota of 500 billion yuan, specifically designed to incentivize and guide financial institutions to increase financial support for key areas of service consumption and the elderly care industry, which Mr. Peng just introduced. Meanwhile, the sci-tech innovation bond risk-sharing instrument supports equity investment institutions in issuing sci-tech innovation bonds for financing, while also supporting the construction of the bond market's "sci-tech board."

Second, in terms of scale, quotas for certain tools were increased and optimized. An additional 300 billion yuan each was allocated to the relending facility for technological innovation and upgrading and the relending facility for agriculture and small businesses. Meanwhile, the 500 billion yuan quota for the securities, funds and insurance companies swap facility and the 300 billion yuan quota for relending to support stock repurchases and shareholding increases have been merged for more flexible use.

Third, in terms of pricing, relending interest rates were lowered. The interest rates for relending facilities supporting agriculture and small businesses, pledged supplementary lending and various targeted structural monetary policy tools were all reduced by 25 basis points.

All of these structural policy measures were fully launched by the end of May and have continued to deliver positive effects. For example, by the end of May, the total contracted amount of loans for technological innovation and upgrading had reached 1.74 trillion yuan, with enterprises able to draw down funds as needed. The sci-tech innovation bond risk-sharing instrument has provided effective credit enhancement support for equity investment institutions to issue bonds for financing. By the end of June, 27 equity investment institutions had issued sci-tech innovation bonds in the interbank market, totaling over 15 billion yuan.

Moving forward, we will continue to leverage both the aggregate and structural functions of monetary policy tools. Structural monetary policy instruments will continue to focus on key sectors, adopt reasonable and moderate approaches, and build up ample room for maneuver. Building on the support for the five major areas in the financial sector, these tools will place greater emphasis on supporting core priorities such as technological innovation and boosting consumption. This will further enhance their effectiveness in promoting economic restructuring, transformation and upgrading, and the shift from old to new growth drivers. Thank you.

Xing Huina:

That concludes today's press conference. Thank you to Mr. Zou and our speakers, as well as our media colleagues. Goodbye!

Translated and edited by Zhu Bochen, Zhang Junmian, You Jiaxin, Li Congrong, Mi Xingang, Yang Chuanli, Huang Shan, Wang Mianyi, Li Huiru, Xu Kailin, Wang Qian, Cui Can, Li Xiao, Wang Xingguang, Zhang Rui, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC)

Mr. Li Chunlin, vice chairman of the NDRC

Mr. Zhou Haibing, vice chairman of the NDRC

Mr. Yuan Da, secretary-general of the NDRC

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 9, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO).

This year marks the final year of the 14th Five-Year Plan period (2021-2025). The SCIO will hold a series of press conferences on China's "high-quality achievements during the 14th Five-Year Plan period." The briefings will highlight the vivid practices and notable achievements made by various departments in pursuing high-quality development and in accomplishing the goals and tasks of the plan, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core.

Today we are holding the first in the series of press conferences. We have invited Mr. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), to introduce China's economic and social achievements during the 14th Five-Year Plan period and answer your questions. Also attending today's press conference are Mr. Li Chunlin and Mr. Zhou Haibing, vice chairmen of the NDRC; and Mr. Yuan Da, secretary-general of the NDRC.

Now, I will give the floor to Mr. Zheng for his introduction.

Zheng Shanjie:

Good morning, everyone. First, on behalf of the NDRC, I would like to thank you all for your interest, understanding and support regarding our development and reform work.

Today's press conference is on the achievements in economic and social development during the 14th Five-Year Plan period. I would like to begin by reviewing the past five years we have gone through together. Over the past five years, the world has witnessed accelerating changes unseen in a century, while the tasks of reform, development and maintaining stability in China have been more challenging than ever. The CPC Central Committee with Comrade Xi Jinping at its core has exercised overall leadership and provided strong guidance, while the entire nation has united in purpose and worked in solidarity to focus on managing its own affairs. Not only has China withstood immense pressure and overcome severe tests, but it has also achieved significant progress in economic and social development. It truly has been a journey where "after the storm, comes the rainbow."

In fewer than 180 days, the 14th Five-Year Plan will come to an end. Looking back, among the main indicators in the outline of the plan formulated five years ago, the progress of indicators such as economic growth, total labor productivity and total social R&D investment were in line with expectations; eight indicators such as the urbanization rate of permanent residents, average life expectancy and comprehensive food and energy production capacity exceeded expectations; the strategic tasks set forth in the plan were fully implemented; and the 102 major projects listed have progressed smoothly. Overall, these five years have seen new groundbreaking progress, breakthrough changes and historic achievements. China has become the most stable, reliable and positive force for global development. I would like to introduce the work from the following seven aspects:

First, economic development. This is mainly reflected in the significant enhancement of our economic strength. We are a major contributor to global economic growth. China's total economic output has successively crossed the thresholds of 110 trillion yuan, 120 trillion yuan and 130 trillion yuan, and is expected to reach around 140 trillion yuan this year. The incremental growth is expected to exceed 35 trillion yuan. What does this mean? During the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) this year, I explained that this is equivalent to creating another Yangtze River Delta economic region from scratch. Another way to understand it is that this amount equals the combined economic output of our country's three largest provinces — Guangdong, Jiangsu and Shandong — which together surpass the GDP of the world's third-largest economy. Our contribution to world economic growth has remained at around 30%. In the first four years, our economy grew at an average rate of 5.5%. Considering the large scale and incremental growth of our country, maintaining this rate amid various risks and challenges is unprecedented in the history of economic development.

Second, innovation-driven development. The 14th Five-Year Plan elevated innovation to an unprecedented level of importance. We didn't just talk the talk; we walked the walk. Let's now review the investment and outcomes over the past five years. China's R&D investment has reached a new high. Last year, spending on R&D increased by nearly 50% compared with the end of the 13th Five-Year Plan period (2016-2020), with an increase of 1.2 trillion yuan; and the intensity of R&D investment increased to 2.68%, close to the average level of OECD countries. We have reached new heights of innovation with one major achievement after another in the field of cutting-edge technologies for a major country. Let's take a look from the perspectives of sea, land and air. At sea, China's first domestically-made aircraft carrier with electromagnetic catapult systems, the Fujian, has been launched. The country's first domestically built large cruise ship, the Adora Magic City, has entered into service. Together with our globally leading large LNG carriers, we now possess the "three pearls" in the crown of the shipbuilding industry. On land, the world's first fourth-generation nuclear power plant, Shidaowan, was put into commercial operation. In the air, the first Chinese space station, Tiangong, was fully completed and put into operation; the Chang'e 6 spacecraft completed the world's first unmanned sample-return mission from the far side of the moon; and the C919, China's first domestically developed large passenger aircraft built to international airworthiness standards, has begun commercial flights. These "firsts" — first ship, first plant, first breakthrough — demonstrate the significant breakthroughs in Chinese innovation. Scientific and technological innovation is driving industries to move up the value chain, shifting from quantity to quality, from low- and mid- to high-end, and from follower to leader across many fields. Facts have proven that attempts at "decoupling" and containment only strengthen our resolve and ability to stand on our own, and only accelerate the pace and breakthroughs of our independent innovation.

Third, people's well-being. The achievements of economic development and technological progress are being concretely translated into a greater sense of prosperity and well-being for our citizens. From a macroeconomic perspective, our country has built the world's largest education, social security, and health care systems. Compulsory education retention rates exceed 95%, as do coverage rates for basic pension insurance and basic medical insurance. Looking at specific sectors, in education, we have worked to make education more equitable and widespread. We have ensured that 97% of children of migrant workers in cities attend public schools or benefit from government-funded school places. This represents an increase of 11.2 percentage points from the end of the 13th Five-Year Plan period. In health care, we have worked to ensure people can access better medical services closer to home. We have established 114 national regional medical centers during the 14th Five-Year Plan period, bringing the total to 125. The nationwide direct settlement system for cross-provincial medical treatment has been built from the ground up and now benefits over 400 million people. We have made significant progress in areas of broad public concern, like elderly and child care. Long-term care insurance now covers over 180 million people. Childcare capacity has reached 5.74 million slots, an increase of 125% from the end of the 13th Five-Year Plan period. Average life expectancy has reached 79 years, with consistent gains of one year every five years from the 12th Five-Year Plan through the 14th Five-Year Plan. In transportation that affects millions of households, China has been accelerating the development of its national comprehensive transportation network, featuring "six axes, seven corridors and eight channels." During the 14th Five-Year Plan period, more than 10,000 kilometers of new high-speed rail have been put into operation. As of now, China's high-speed rail operating mileage is twice that of all other countries combined. Fresh products can reach residents' tables with same-day delivery or next-day arrival from farms, while transportation and express services have become significantly more efficient. Behind every data point and every change is the continuous improvement and enhancement of people's quality of life. There are no minor matters when it comes to people's well-being. We remain sharply focused on addressing the everyday concerns of our people, tackling each issue with concrete, meticulous and effective solutions.

Fourth, governance efficiency. The results of comprehensively deepening reform are being transformed into modern governance systems and capabilities at a faster pace. Here, I will discuss two examples. First, China's business environment continues to improve. The basic framework of the national unified market with multiple pillars has been established. The Private Sector Promotion Law has been released and implemented. The restrictions on foreign investment access in manufacturing have been eliminated. The national negative list of foreign investment access restrictions has been reduced to 29 items. Moreover, number of private enterprises has increased to more than 58 million, an increase of more than 40% compared to the end of the 13th Five-Year Plan period. Second, China's organizational mobilization and action capabilities continue to strengthen. For example, in January this year, a 6.8-magnitude earthquake occurred in Dingri, Xizang autonomous region. Thirty minutes after the disaster, the epicenter area began organizing and implementing emergency rescue operations. Within a few hours, rescue planes carrying disaster relief equipment and personnel had arrived. That night, the affected people moved into emergency shelters and had hot meals. This is the power, speed and spirit of China. There are many more examples. The steady improvement of governance efficiency is mainly due to the comprehensive and strict governance of the Party, which has had a profound and all-encompassing impact. It has curbed many unhealthy practices that were previously thought impossible to stop, eliminated various long-standing problems, and resolved many prominent issues that were of major public concern. The Party's leadership, organizational and implementation capabilities are continuously improving, providing strong political assurance for high-quality development.

Fifth, green development. The concept that "lucid waters and lush mountains are invaluable assets" has become deeply rooted in people's hearts. Green development has become a distinctive feature of contemporary China. The achievements of the past five years are concentrated in four aspects: expanding green coverage, controlling pollution, energy consumption and recycling. China leads the world in expanding green coverage, with forest coverage rising to over 25%. The new forest area is equivalent to the size of Shaanxi province, contributing one-quarter of the world's new green coverage. Pollution control has achieved remarkable results, with air quality reaching good or excellent levels on about 87% of days, an increase of 3 percentage points from the 13th Five-Year Plan period. The main channels of the Yangtze and Yellow Rivers, China's two "mother rivers," have both reached Class II water quality standards. This is a truly outstanding achievement. Energy consumption has become much cleaner, with new energy generation capacity reaching a historic milestone by surpassing that of coal power. China has built the world's largest clean power generation system, with 1 in every 3 kilowatt-hours of electricity now coming from green energy sources. This proportion will continue to increase. Recycling has developed rapidly, with more than 20% of steel production now using recycled scrap steel as raw material, achieving significant energy savings and carbon reduction. I believe everyone can feel this firsthand. Whether in urban or rural areas, whether in the east, west, north or south, we have more blue skies, more beautiful scenery, and more environmentally friendly living.

Sixth, security assurance. Since the 14th Five-Year Plan began, the foundation of our country's food, energy, industrial and national defense security has been further strengthened. In terms of food, the 14th Five-Year Plan supported the construction and upgrading of 460 million mu of high-standard farmland. Currently, more than 1 billion mu of high-standard farmland has been built, equivalent to the combined area of Heilongjiang and Henan, the top two grain-producing provinces. China's food supply remains firmly in its own hands. In terms of energy, China has built the world's largest power infrastructure system, with installed power generation capacity accounting for one-third of the global total. Even during peak energy consumption periods in summer and winter, the energy needs of the public are reliably met. In terms of industrial foundation, China has the world's largest, most complete, and most comprehensive manufacturing system. The resilience and security of industrial and supply chains continue to improve, giving us greater confidence to face various risks and challenges. At the same time, national defense strength and economic strength are improving simultaneously. The strategic capability to safeguard national sovereignty, security and development interests continues to be enhanced.

Seventh, the responsibility of a major country. Instead of talking the talk, we must walk the walk. China leads global green development, promotes shared common prosperity among nations, and upholds global fairness and justice through concrete actions. We've been firmly fulfilling our dual carbon goals, reducing energy consumption per unit of GDP by 11.6% over the past four years. This is equivalent to cutting carbon dioxide emissions by 1.1 billion tons, and fully demonstrates the responsibility of a major country. China has achieved new results and progress in Belt and Road cooperation with countries in Asia, Africa, Latin America and beyond. The initiative has expanded to include more than 150 countries and 30 international organizations, benefiting partner countries with significant progress and achievements in industry, transportation, employment, people's livelihoods and other key areas. For example, the construction of the Jakarta-Bandung high-speed railway in Indonesia has cumulatively created 51,000 local jobs. Since beginning operations more than a year ago, it has transported over 10 million passengers. Locals widely view the railway as both high-tech and a catalyst for Indonesia's economic development. China has firmly stood up to counter trade bullying, resolutely defending its legitimate interests and international fairness and justice. With its super-large market and strong manufacturing capacity, China has demonstrated its responsibility to maintain global supply chain stability.

Looking back over the past five years, we have faced more difficulties than expected, but we have also achieved greater results than anticipated. Like everyone else, we are all participants, contributors and witnesses. Our strongest conviction is that there will always be difficulties and challenges ahead, but they cannot defeat or stop us from moving forward. During the 14th Five-Year Plan period, under the strong leadership of the CPC Central Committee and the State Council, China has gained more consolidated institutional advantages, stronger innovation vitality, a more robust material foundation and a more solid base for development. The 14th Five-Year Plan period will leave a significant mark on the history of China's development. Looking ahead, we are confident that our development prospects will be even brighter during the 15th Five-Year Plan period.

That concludes my briefing. Thank you.

Shou Xiaoli:

Thank you for your introduction, Mr. Zheng. The floor is now open for questions. Please state your news organization before asking your question.

Tide News under Zhejiang Daily Press Group:

Over the years of conducting interviews, I have observed that connections among various areas in the Yangtze River Delta have become increasingly close. Many entrepreneurs from Zhejiang and Jiangsu are now investing in and building factories in Anhui. For many people, business trips have become as convenient as a daily commute. They can meet clients in Shanghai in the morning, attend meetings in Nanjing, Jiangsu, in the afternoon, and return to Hangzhou, Zhejiang, for dinner in the evening. How do you view this change? Thank you.

Zheng Shanjie:

Thank you for your question. Your description is very vivid. Having worked in two provinces in the Yangtze River Delta, I have many thoughts on this topic and often hear public discussion about it. These changes are a result of the integrated development of the Yangtze River Delta. To answer your question, I would like to highlight the remarkable achievements of regional coordinated development during the 14th Five-Year Plan period.

China has a vast territory and a wide range of conditions across its eastern, western, southern, northern and central regions. General Secretary Xi Jinping attaches great importance to this work. Since the 20th CPC National Congress, the general secretary has presided over nine symposiums on regional coordinated development, representing an unprecedented frequency and level of engagement. The top-level design has been continuously refined, setting major policies and guidelines for advancing regional coordinated development. We have fully implemented the decisions and plans of the CPC Central Committee and the State Council. We have taken the whole country into account, adopted measures suited to local conditions, and tailored region- and category-specific policies, steadily advancing regional coordinated development and building momentum. There are four distinct features.

First, regional functions and roles have become clearer. Different regions have identified their positioning within the overall national development, highlighting their main functions and distinctive features to fully unleash their comparative advantages. For example, the three major economic engines — the Beijing-Tianjin-Hebei region, the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area — have gained stronger momentum, and continue to attract more industries and people. In 2024, the combined economic volume of these three regions accounted for more than 40% of the national total.

Another example is that the northeast region has become an even stronger strategic support. In 2024, the region's grain output accounted for 25.3% of the national total, and its crude oil output made up 21%. Major technical equipment, such as million-kilowatt hydropower units, has been domestically developed and produced, effectively safeguarding national food, energy and industrial security. Similarly, the Hainan Free Trade Port serves as a key testing ground for China's high-standard opening-up. In the first four years of the 14th Five-Year Plan period, the annual average growth rates for goods and services imports and exports were 31.3% and 32.3%, respectively. In the past five years, the actual use of foreign capital surpassed the total amount invested during the first 32 years after the province was founded.

Second, complementary advantages have become more effective. We understand the development gaps among regions in an objective manner, and have boosted momentum by tapping into potential, allowing all regions and all people to share in the benefits of development. For example, the industrial, technological, managerial and financial strengths of the eastern region have been closely integrated with the resource endowment advantages of the western region, making their complementary effects even more pronounced. The transmission capacity of the west-to-east power transmission program has exceeded 300 million kilowatts. The computing power of the eight major hubs of the East Data, West Computing initiative accounts for about 70% of the country's total. The once-barren Gobi Desert has been transformed into a source of green energy, achieving sand control while increasing people's income. The western region has operated a total of 37,000 China-Europe Railway Express trains, accounting for nearly half of the national total, transforming inland areas into new frontiers. The central region has capitalized on its advantages as a key link between the eastern and western regions, as well as the northern and southern regions. More than 60% of the country's main expressways and high-speed railway lines pass through the central region. The region has developed 18 strategic emerging industry clusters and 13 advanced manufacturing clusters, with quantum technology, memory chips and heavy machinery industries demonstrating robust growth, establishing the central region as a critical pillar of national development.

Third, coordinated governance has been greatly strengthened. Regional coordinated development is a vivid example of our institutional strength in pooling resources to accomplish major tasks. For instance, I'd like to share how different regions have worked together to advance the protection of the Yangtze and Yellow rivers.

First, let's look at the Yangtze River. The Yangtze River Economic Belt has reached a consensus on promoting well-coordinated conservation and avoiding excessive development. The issue of chemical plants surrounding the river has been fundamentally resolved, and the 10-year fishing ban on the Yangtze River continues. Today, people can see Yangtze finless porpoises surfacing in the waves, leaping fish and flying birds, creating a scene of "clear water flowing eastward." Next, let's look at the Yellow River. The nine provinces along the Yellow River have planted forests on 200 million mu of land and restored 231 million mu of degraded grassland. The Loess Plateau has transformed from yellow to green, and the Yellow River water has changed from turbid to clear. It can be said that "the winding Yellow River has taken on a new appearance."

Fourth, there has been more vitality. We have established new systems while abolishing outdated ones, driven all regions to unlock potential and stimulate vitality, and developed regional powerhouses with enhanced international competitiveness. For example, we have been advancing integrated development in the Yangtze River Delta area, moving from infrastructure connectivity to institutional coordination that includes joint innovation, industrial collaboration, and shared livelihood benefits, with many quality-of-life improvements resulting from these comprehensive efforts. The region's integrated circuits, biomedicine and artificial intelligence industries account for three-fifths, one-third and one-third of national output, respectively, making them strong growth poles for development. As another example, we have been advancing closer alignment of rules and mechanisms in the Guangdong-Hong Kong-Macao Greater Bay Area, enabling the efficient flow of funds, talent and other factors among Guangdong, Hong Kong and Macao. More than 27,000 Macao residents now live and work in Hengqin, while the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone has attracted over 440 tech companies and 200 high-end research projects. Additionally, solid progress has been made in building China into a strong maritime country. In 2024, China's gross ocean product exceeded 10 trillion yuan for the first time, while maritime cargo volume and container throughput represented about one-third of the global total. China dominates global port rankings, with six of the world's top 10 ports in container throughput and eight of the top 10 ports in cargo throughput, and with Shanghai and Ningbo-Zhoushan ports setting world records. China's shipbuilding and offshore engineering equipment industry holds over 50% of the global market share, leading new orders in 14 of 18 mainstream ship types. China has been the world's largest producer of marine products for multiple consecutive years, making our ocean a veritable "blue granary." As a result, we have charted a distinctive path toward maritime strength with Chinese characteristics.

These examples demonstrate the progress and results of regional coordinated development. Thank you.

Bloomberg News:

How does the NDRC view the evolution of China's potential GDP growth rate and growth drivers from the past five years to the next five years? In terms of boosting domestic demand, will there be a set target for consumption growth to guide related work over the next five years? Thank you.

Zheng Shanjie:

We'll have Mr. Yuan answer these questions.

Yuan Da:

Thank you for your questions. You are primarily concerned about China's economic growth drivers and expansion of domestic demand, so let me provide a brief introduction. There are two key points. China has a enormous domestic market with great growth potential, and domestic demand has always been a major driver and anchor for steady economic growth. The practice of economic and social development during the 14th Five-Year Plan period has once again fully demonstrated this point.

From the perspective of domestic demand, China has experienced multiple difficulties and shocks over the past four years, including dramatic changes in the international environment, but the national economy has maintained an annual growth rate of 5.5%, with domestic demand's contribution to economic growth reaching 86.4% on average. It can be said that without a strong domestic market, the Chinese economy would not have seen steady growth.

In terms of the composition of domestic demand, three characteristics are particularly prominent.

First, consumption has moved toward new trends. In the past four years, on average, the contribution of final consumption to China's economic growth reached 56.2%, 8.6 percentage points higher than that of the 13th Five-Year Plan period. New products, new business forms, and new models in the consumption field continue to emerge. For example, in commodity consumption, the integration of AI into daily production and life has accelerated. Smartphones, smart home appliances and smart cars are highly popular among consumers. New products such as 360-degree panoramic sports cameras and AI smart glasses are gaining popularity online. Traditional Chinese style and China-chic products have performed well, with sales of Hanfu (a type of traditional Chinese clothing) and cultural and creative products growing exponentially. Similarly, service consumption in culture, sports, tourism and health care shows increasingly diverse supply and demand patterns. Popular products and experiences based on intangible cultural heritage and museum intellectual property frequently emerge, while city walks and Chinese tea drinks have become fashionable trends.

Second, investment has been directed toward high-quality development priorities. Over the past four years, capital formation from investment contributed an average of 30.2% to China's economic growth. Investment has fully utilized its key role in optimizing the supply structure by focusing more on addressing weaknesses and ensuring long-term benefits. For example, we have concentrated on major and difficult tasks in building a strong country and advancing national rejuvenation, working to solve prominent problems affecting the construction of Chinese modernization. We have coordinated "hard investments" and "soft construction" from top to bottom to advance high-quality projects that implement major national strategies and build security capacity in key areas. We have also emphasized enhancing sustained growth. For example, high-tech industry investment growth has surpassed overall investment growth for many years, and a batch of major national scientific research infrastructure projects have been completed. We have also prioritized people's well-being. For example, we have started and secured construction of about 7.8 million units of various types of affordable housing over the past four years, effectively solving housing problems for more than 20 million people. Investment in areas related to people's well-being has maintained rapid growth, and basic public services has been continuously improved. We have also paid more attention to mobilizing private capital. For example, we have launched major projects in nuclear power and railways to attract private capital investment, with private capital holding a 20% shareholding ratio in some nuclear power projects.

Third, investment and consumption have reinforced each other. On the one hand, growing consumer demand has driven investment in product production and supporting infrastructure. For example, strong consumer demand for 5G and smartphones has driven significant investment growth over the past four years: 21.9% annually in the internet and related services industry, and 11.2% annually in communication equipment manufacturing. On the other hand, effective investment has boosted employment and income growth through production chains, which enhances residents' purchasing power. It has also improved consumption conditions by upgrading facilities and optimizing environments, directly stimulating consumer spending. For example, by the end of 2024, the nationwide charging infrastructure had grown to 12.818 million units, effectively supporting the large-scale adoption of new energy vehicles.

Next, we will accelerate the construction of a new development pattern by prioritizing domestic economy, steadfastly implementing the strategy to expand domestic demand, cultivating a complete domestic demand system, and continuously stimulating domestic demand potential. Thank you.

Dazhong Daily:

In recent years, China's infrastructure development has seen rapid growth. How does the NDRC view the role of infrastructure in economic and social development? Thank you.

Zheng Shanjie:

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

Li Chunlin:

Thank you for your question. I'm very glad to answer it. We all know that infrastructure is an important support for economic and social development. During the 14th Five-Year Plan period, China's infrastructure consistently demonstrated innovative strength and rapid acceleration, delivering "China speed" and "China Quality," fulfilling people's growing expectations for a better and happier life. We have all witnessed this. I would like to quote four comments from netizens in answer to your question.

The first comment, "The road network, woven like fine embroidery, paints a panorama of rivers and mountains," describes how China's infrastructure network is now more systematic and well-developed. For example, the "arteries" are more unimpeded. The main framework of the national integrated multidimensional transportation network featuring "six axes, seven corridors and eight channels" is now over 90% complete. The network covers more than 80% of counties, serving around 90% of the national economy and population, forming a national economic artery that connects east to west, north to south, and links border regions and seas. Another example, the "capillaries" are more developed. By the end of 2024, the total mileage of rural roads reached 4.64 million kilometers. Poverty alleviation efforts have ensured that virtually every village is connected by paved roads, facilitating the movement of industrial goods to rural areas and agricultural products into cities. More villagers enjoy conveniences such as local bus services and parcel deliveries to their doors.

The second comment, "Same-day delivery ensures freshness, and village roads turn remote areas into neighbors," illustrates how the infrastructure system has become more efficient and practical. On one hand, smooth logistics have helped reduce overall social costs and improve efficiency. In 2024, logistics costs nationwide were cut by over 400 billion yuan, and this year we expect to reduce them again by about 300 billion yuan. The cold chain logistics system is now much more robust and efficient. This ensures that fresh lychees can be enjoyed not only in places like Chang'an (present-day Xi'an in Shaanxi province), but also quite readily in far more distant cities such as Lhasa and Urumqi. On the other hand, people can enjoy a modern lifestyle whereby easy transportation is more possible. Passengers can transfer smoothly between different modes of transport and tourism is easier than ever. People can set out for a trip at the drop of a hat, and arrive in no time. They can enjoy dim sum in Guangzhou in the morning, and marvel at ice sculptures in Harbin by evening.

The third comment, "Technology adds vitality, and green energy fuels momentum," captures how our infrastructure system has become smarter and greener. New technologies have breathed fresh life into traditional infrastructure. In 2024, China's ports handled an average of 38,000 TEUs per hour, 26% higher than in 2020 — and among the fastest globally. Green energy is now lighting up millions of homes. In 2024, renewable energy power generation reached 3.46 trillion kilowatt-hours, 1.6 times the level at the end of the 13th Five-Year Plan period (2016-2020). The number of highway charging stations has more than quadrupled over four years, now covering 98.4% of highway service areas, greatly reducing range anxiety for electric vehicle drivers.

The fourth comment, "Critical national infrastructure can withstand any upheaval and brave a century of challenges," highlights how our infrastructure system has become safer and more reliable. Recently completed projects like the Baihetan Hydropower Station, and the Shenzhen-Zhongshan Link are designed to last over a century. China's Hualong One nuclear power unit, with all of its core components produced domestically, adopts the highest international safety standards and is capable of withstanding magnitude-9 earthquakes and category-17 typhoons. In 2024, national reservoirs, by impounding floodwaters, reduced the inundation of over 16 million mu of arable land and averted the displacement of more than 11 million people. At the same time, China has completed 44 ultra-high voltage transmission channels, with another four under construction. The power grid is not only large in scale and wide in coverage but also strong and reliable. Since the start of the 14th Five-Year Plan, there have been no major power safety incidents. Last Friday, which was July 4, the national electricity load reached a historic high of 1.465 billion kilowatts, and electricity generation also reached an all-time high of 32.9 billion kilowatt-hours. That record was broken again this Monday, reaching 1.467 billion kilowatts. In September 2024, after Super Typhoon Yagi made landfall, it took only 80 hours to restore power to the cross-sea cable between Hainan and Guangdong.

China's infrastructure has made such remarkable progress because we have always stayed true to our original aspiration: serving development and improving people's lives. This reflects the determination to overcome difficulties and the perseverance of moving mountains. Going forward, we will adhere to the principle of building moderately ahead of demand, but not excessively ahead, and continue to consolidate our strengths, address weak links and raise our infrastructure system to new heights. Thank you.

Daxiang News:

We've noted that in recent years, many foreign vloggers have shared their experiences in China on social media. They've highlighted Chinese tech products and trendy designs, which have sparked a "China craze." Some foreign netizens have commented that China is really spending its money on infrastructure and that China has become cool. What's your view on this? Thank you.

Zheng Shanjie:

Thanks for your question. I'll take this one. This is a very good question. In fact, I think this reflects China's growing comprehensive national strength. Looking back at the 14th Five-Year Plan period, I would say that China's comprehensive national strength has advanced by leaps and bounds. Where is this rapid progress evident? I think there are four main aspects:

First, let's look at economic strength. In addition to the economic aggregate I mentioned earlier, China is also the world's largest manufacturing country, largest goods trading country, largest foreign exchange reserve holder, largest energy producer, and largest country in terms of human resources. It has the world's largest middle-income group and social security system, and has built the most 5G base stations globally, which is something everyone can feel in their daily lives. There are many more such distinctions. Now, the foundation of China's real economy is getting stronger. Since the 14th Five-Year Plan, the annual value added of the manufacturing sector has exceeded 30 trillion yuan. China has held the top position in global manufacturing for 15 consecutive years, with over 200 major industrial products ranking first in the world in terms of output. There are fewer and fewer things China cannot make, and what it does make keeps getting better. In addition, China's infrastructure for economic and social development is getting stronger, as Mr. Li just outlined. We have the world's largest networks of highways, high-speed trains, ports, urban rail transit, power transmission and distribution, and broadband. We also have the most wind power installations, photovoltaic installations, charging piles and courier service outlets globally. This modern infrastructure system has supported the rapid development of the economy and society and improved people's lives.

Second, let's look at innovation ability. China has the world's largest pool of R&D personnel and 26 of the world's top 100 science and technology innovation clusters, ranking first globally. There are more than 460,000 high-tech enterprises. As everyone has seen, innovative results are constantly emerging, and technological sophistication continues to grow stronger. We are developing new quality productive forces tailored to local conditions, driving deep integration between technological and industrial innovation. Innovation is accelerating from isolated breakthroughs toward systematic integration, with cutting-edge products emerging constantly. In recent years, we have developed independently-researched high-performance chips and operating systems, large AI models that empower various industries, and robots that significantly boost production efficiency. The potential of innovation is continuously transforming into economic momentum. New industries, new business formats, and new business models, dubbed the "three new" economy, represented by "AI+", are accelerating their implementation. In 2024, the value added of the "three new" economy exceeded 24 trillion yuan, equivalent to the combined GDP of Beijing, Shanghai and Guangdong.

Third, let's look at soft power. China's development has attracted global attention, and more and more countries are engaging with us in governance exchanges, learning from China's solutions and experience. China has completed the industrialization process in a few decades, a journey that took Western developed countries several centuries, creating the twin miracles of rapid economic development and long-term social stability. This has provided a new model of modernization for the world. Concepts such as "a community with a shared future for mankind" and "lucid waters and lush mountains are invaluable assets" have gained widespread international recognition. The country's cultural soft power and the influence of Chinese culture have significantly increased. National institutions like the National Archives of Publications and Culture, national archives, and national cultural parks preserve and continue the heritage of Chinese history and culture. New cultural forms such as online dramas, online literature and online games have gained significant traction overseas.

China's international influence and appeal have markedly increased. The Belt and Road Initiative has emerged as a pathway for global shared prosperity. Meanwhile, we are vigorously promoting voluntary and unilateral opening up policies, expanding our unilateral visa-free arrangements to 47 countries. Tourism and shopping in China continue to gain momentum, with foreign visitor arrivals registering a 96% increase in 2024.

Fourth, let's consider shock resistance. We have firmly kept our food supply in our own hands, with grain production achieving 21 consecutive years of bumper harvests. Last year, we reached a new milestone of 700 million metric tons. Adopting an all-encompassing approach to food, China ranks first globally in the production of grains, meat, peanuts, vegetables, tea and fruits. The nation's energy self-sufficiency rate remains above 80%. In 2024, total oil and gas production exceeded 400 million tons of oil equivalent for the first time, and power generation reached 10 trillion kilowatt-hours. A diversified energy supply system, including coal, oil, gas, nuclear and renewable energy, now robustly secures the energy needs of over 1.4 billion people. Meanwhile, we are working faster to establish a national reserve system with more adequate material stockpiles and stronger shock resilience.

Finally, I would like to say that under the strong leadership of the CPC Central Committee and the State Council, China's comprehensive national strength has been systematically enhanced during the 14th Five-Year Plan period, laying a solid foundation for achieving the Second Centenary Goal. Enhancing the country's comprehensive national strength serves the Chinese people in tangible ways and will continue to create new opportunities for global development. No matter how the international situation changes in the future, we will unswervingly manage our own affairs well, solidly enhance the country's comprehensive national strength, and advance Chinese modernization. Thank you.

China News Service:

During the 14th Five-Year Plan period, people's livelihood needs have undergone many new changes. Could you please tell us how the country has addressed these new needs and expectations regarding people's livelihoods? Thank you.

Zheng Shanjie:

I'd like Mr. Zhou to answer this question.

Zhou Haibing:

Thank you for your question. Adhering to a people-centered approach and enhancing people's well-being is the starting point and ultimate goal of formulating and implementing each Five-Year Plan. The 14th Five-Year Plan outline proposed seven livelihood indicators, accounting for more than one-third of the plan's 20 main indicators, more than in any other previous plan. Guided by the implementation of the plan, we have continued to deepen institutional reforms in the social sector, successively rolling out impactful and heartwarming livelihood policies, and continuously enhancing people's sense of gain, happiness and security.

First, we consolidated the foundation of people's livelihoods by continuing to intensify efforts to stabilize employment and promote income growth. Since the start of the 14th Five-Year Plan period, more than 12 million new urban jobs have been created annually, providing a solid foundation for improving people's livelihoods. In 2024, the employment distribution across the primary, secondary and tertiary industries was 22.2%, 29% and 48.8%, respectively, with the service sector playing an increasingly significant role in job creation. The growth of residents' incomes has kept pace with economic growth, and the relative income gap between urban and rural areas has continued to narrow.

Second, we focused on people's livelihood needs and worked to ensure that public services and social security benefit everyone. China has established and continuously strengthened the world's largest education, health care and social security systems. The completion rate of nine-year compulsory education, as well as the coverage rates of basic pension and basic medical insurance, has remained steadily above 95%. In 2024, overall education attainment across all levels in China reached or exceeded the average level of middle- and high-income countries, and the average years of schooling for new entrants to the labor force market exceeded 14 years. The number of practicing physicians per thousand people has increased from 2.9 to 3.6. During the 14th Five-Year Plan period, we formulated, implemented and continuously updated national standards for basic public services, working to ensure that people have equitable access to 81 essential public service items.

Third, we responded to public expectations by stepping up efforts to resolve the most pressing issues and concerns that trouble people's daily lives. First-Class universities and disciplines of the world and high-quality regular high schools have continued to expand enrollment, providing greater access to quality education resources. Quality medical resources are being rapidly expanded and brought to local communities, creating a more balanced regional distribution. National regional medical centers are being built faster and having a greater impact, allowing more people in central and western regions to receive high-quality medical care close to home. A total of 402 new drugs have been added to the national medical insurance drug list, and cross-provincial settlement of medical insurance expenses has become more convenient. High-quality service systems for the elderly and children are being rapidly developed. The proportion of nursing care beds in elderly care institutions nationwide has risen to 64.6%. We have established comprehensive childcare service centers in more than 300 prefecture-level cities and populous counties to make childcare services more affordable and trustworthy for families.

Going forward, we will continue to put people's well-being at the heart of our efforts to ensure and improve people's livelihoods through development. We will focus on addressing people's most pressing needs and concerns. We will work to deliver practical, effective livelihood projects so that all share the benefits of development more fully and equitably. Thank you.

Market News International:

What was the status of foreign direct investment in China during the 14th Five-Year Plan period? What are the plans for attracting foreign investment over the next five years? How will China further facilitate foreign investment?

Zheng Shanjie:

I'd like to invite Mr. Zhou to answer your questions.

Zhou Haibing:

Thank you for your questions. Opening up to the outside world is a fundamental national policy of China, and attracting and utilizing foreign investment is an important part of this policy. From 2021 to May this year, foreign direct investment in China totaled 4.7 trillion yuan, exceeding the total amount during the 13th Five-Year Plan period. Foreign-funded enterprises contribute one-third of China's imports and exports, one-fourth of its industrial added value, and one-seventh of its tax revenue while creating more than 30 million jobs. The strong growth of foreign-funded enterprises clearly demonstrates China's market-oriented, law-based and international business environment and strongly validates China's foreign investment policies. This is evident in several ways:

First, companies moving forward with the Chinese market are finding broader opportunities as the negative list continues to shrink. China reduced the negative list for foreign investment access twice, in 2021 and 2024. The current national and pilot free trade zone lists have been reduced to 29 and 27 items, respectively. Restrictions on foreign investment access in the manufacturing sector have been fully eliminated, and the restrictions on foreign investment access in agriculture, services and other sectors have been further eased. Since last year, China has also launched pilot programs to open up the medical care and value-added telecommunications sectors, with multiple foreign-funded enterprises already beginning to invest and operate in these sectors.

Second, China's investment promotion initiatives have generated strong appeal, with ongoing policy incentives continuing to support development. China has revised the Catalogue of Encouraged Foreign Investment Industries multiple times. The current version contains 1,474 items, directing foreign investment toward advanced manufacturing, modern services, high technology, energy conservation and environmental protection. It also encourages investment in the central, western and northeastern regions. Foreign-invested enterprises with projects listed in the encouraged investment catalog can enjoy preferential policies on taxation, land use and other areas in accordance with the law. China provides comprehensive, end-to-end support for major foreign investment projects, coordinating and resolving issues related to land use, marine resources, energy use and other areas. China continues to expand its unilateral, mutual and transit visa exemption policies, making it easier for foreign businesspeople to visit China for inspections and negotiations.

Third, China's business environment is transparent and fair, allowing enterprises of all kinds to fully leverage their strengths. China fully ensures national treatment for foreign-funded enterprises, creating a policy environment with transparent rules and equal opportunities. For example, the new round of large-scale equipment upgrades and consumer goods trade-in programs we are promoting treats domestic and foreign-funded enterprises equally. Another example is China's strengthening of intellectual property protection through amendments to the implementation rules of the Patent Law, the introduction of regulations on fair competition review, and provisions for handling foreign-related intellectual property disputes. The country has continuously stepped up law enforcement efforts against infringements involving foreign-funded enterprises.

Looking ahead, China's policy orientation for attracting and utilizing foreign investment will remain consistent. We will further ease market access requirements and promote the orderly expansion of opening up in relevant fields. We will deliver national treatment at a high standard, ensuring that foreign-funded enterprises have fair access to standard-setting, government procurement, bidding and other activities. We will strengthen service support by continuously implementing targeted initiatives to assist foreign-funded enterprises, actively addressing practical challenges and enhancing enterprise satisfaction and fulfillment.

China has been, is, and will continue to be an ideal, safe and promising investment destination for foreign businesses. We welcome international companies to continue expanding in the Chinese market, share in China's development dividends and achieve greater mutual success. Thank you.

Zhonghongwang.com:

We have noticed that the NDRC and other departments are currently taking action to identify and address market access barriers, and the Supreme People's Court has also issued its first ruling based on the Private Sector Promotion Law. There have been several major reform developments as well. What progress has the NDRC achieved in economic system reform over the past five years? Thank you.

Zheng Shanjie:

I would like to invite Mr. Li to answer your question.

Li Chunlin:

Thank you for your question. Regarding the reforms you mentioned, this has indeed been a central task and a key focus during the 14th Five-Year Plan period. The 14th Five-Year Plan period has been an important historical juncture for advancing reform and tackling challenges. The reform goals and tasks set at the third plenary session of the 18th CPC Central Committee have been completed on schedule. We have focused on key areas and critical links, continuing to advance the reform tasks outlined at the third plenary session of the 20th CPC Central Committee. The results are mainly reflected in four aspects: smoothing circulation, boosting vitality, improving efficiency and enhancing effectiveness.

First, we have focused on smoothing economic circulation and accelerating the development of a unified national market. We have issued five versions of the negative list for market access, reducing the number of listed items from 151 to 106, and have eliminated 4,218 regulations and practices that were impeding the development of a unified national market and fair competition. We have assessed the consistency of newly issued policies with macroeconomic policy directions to ensure effective policy coordination. We have taken a comprehensive approach to addressing wasteful competition by improving core competitiveness, optimizing industrial distribution, strengthening local oversight, and regulating competitive practices. In addition, measures such as cross-provincial direct settlement of medical insurance and cross-platform payment for online shopping have brought tangible benefits to the public.

Second, we have focused on stimulating the vitality of business entities and continuously optimizing the development environment. We have continuously advanced the three-year action plan for state-owned enterprise (SOE) reform and the reform deepening and enhancement initiative, with SOEs' core functions and competitiveness steadily strengthening. We have also established the Bureau of Private Economy, promoted the implementation of the Private Sector Promotion Law, and improved our regular communication and problem-solving mechanisms with private enterprises. The Hangzhou-Shaoxing-Taizhou and Hangzhou-Wenzhou high-speed railways, controlled by private capital, have been completed and put into operation. Major infrastructure projects, including those in nuclear power, have opened to private investment. Private capital participation in nuclear power projects has reached as high as 20%. In industrial equipment renewal and similar sectors, more than 80% of projects welcome private capital, boosting investment confidence among private enterprises.

Third, we have focused on improving resource allocation efficiency and made efforts to break through reform bottlenecks in key industries. For example, in the area of factor resource, we have established a fundamental data system and formed the National Data Administration to ensure data can be properly supplied, transmitted and used. We have also begun building a unified national electricity market system. The southern regional electricity market has started continuous operation, and the five provinces covered by the China Southern Power Grid (CSG) have now achieved unified transactions and competitive bidding. The State Grid and CSG have achieved regular cross-operating area transactions. In 2024, market-based electricity transactions nationwide accounted for 63% of total electricity consumption. Similarly, in the area of bidding and tendering, we have comprehensively promoted full-process digitalization reform, released fair competition review rules for the field, fully implemented remote bid evaluation and mutual recognition of digital certificates, and ensured fair and proper use of public resources.

Fourth, we have focused on improving the effectiveness of comprehensive reforms and encouraged local pilot initiatives. We have combined top-level design with grassroots exploration, supporting comprehensive reform pilot programs in Shanghai's Pudong, Shenzhen, Xiamen and other places to actively explore new approaches. We have promoted 88 innovative measures in four phases, providing more replicable reform experiences for nationwide implementation. Among them, the policy document on deepening the comprehensive reform in Shenzhen was officially issued this year. A special press conference was held here recently to explain the policy. For example, we have comprehensively promoted the "one-stop service" integrated reform for employment services, which consolidates 11 items, including social security and the housing provident fund, into a unified framework.

Comprehensive reform efforts have made significant progress and will continue to advance. The 15th Five-Year Plan period will be critical for the comprehensive implementation of the reform tasks outlined at the third plenary session of the 20th CPC Central Committee. We will continue to resolutely implement the decisions and deployments of the CPC Central Committee, focus on deep-seated problems and issues, grit our teeth and make every effort to tackle tough challenges, ensuring that the various reform measures outlined at the third plenary session are implemented and produce results. Thank you.

Xinhua Finance:

We have noticed that China has established the world's largest and fastest-growing renewable energy system. I'd like to ask:What other achievements deserve recognition for driving our economy's and society's comprehensive green transformation? Thank you.

Zheng Shanjie:

Mr. Zhou will take the question.

Zhou Haibing:

Thank you for your question. During the 14th Five-Year Plan period, regions and departments across China have firmly established and acted on the important philosophy that lucid waters and lush mountains are invaluable assets. Significant progress has been made in the comprehensive green transformation of the country's economic and social development, as evidenced by four areas of continued improvement.

First, resource utilization efficiency has continued to improve. We have pursued both resource development and conservation and implemented a comprehensive conservation strategy. We have vigorously promoted the circular economy, achieving positive outcomes in delivering economic, social and environmental benefits. In terms of energy conservation, by 2024, China's energy consumption per unit of GDP decreased by 11.6% compared to the end of the 13th Five-Year Plan period, making China one of the countries with the fastest decline in energy intensity globally. In terms of resource utilization, in 2024, the major resource productivity increased by approximately 12% compared to the end of the 13th Five-Year Plan period. Nationwide, 268 million tons of domestic garbage were processed through incineration, representing an 83.6% increase from the end of the 13th Five-Year Plan period.

Second, the quality of the ecological environment has continued to improve. We have remained committed to long-term efforts, advanced the critical battle against pollution, and strengthened ecological conservation and restoration. The main channels of the Yangtze River and the Yellow River, which are widely known as China's mother rivers, have fully met Class II water quality standards. With the continued advancement of national greening initiatives, China has become the country with the fastest and most extensive growth in vegetation worldwide.

Third, the level of greening in key sectors has continued to rise. We have worked to both optimize existing capacity and expand new capacity, accelerating the development of green and low-carbon industries. In terms of existing capacity, the share of benchmark-level energy-efficient production capacity in major energy-intensive industries has increased 6 percentage points compared to the end of the 13th Five-Year Plan period. In terms of new capacity, China has built the world's largest and fastest-growing renewable energy system. By the end of May this year, the country's installed renewable energy capacity had reached 2.09 billion kilowatts — more than double the 934 million kilowatts at the end of the 13th Five-Year Plan period.

Fourth, the transition toward green lifestyles has continued. We have promoted green living as a new social trend. By 2024, the number of new energy vehicles in China had reached 31.4 million, more than six times the 4.92 million at the end of the 13th Five-Year Plan period. Driven by policies promoting large-scale equipment upgrades and consumer goods trade-ins, appliances with top-tier energy efficiency now account for 90% of total home appliance sales, effectively integrating investment expansion, consumption promotion and energy conservation with carbon reduction.

The 15th Five-Year Plan period will be a critical stage for China to reach its carbon emissions peak before 2030. We will take stronger and more concrete actions to advance the comprehensive green transformation of economic and social development and accelerate a form of modernization based on harmony between humanity and nature. Thank you.

People's Daily:

China's formulation and implementation of Five-Year Plans have attracted widespread attention, and many foreign observers are curious about the mechanisms that ensure the effective execution of these plans. Could you please share how China formulates and implements its Five-Year Plans? Thank you.

Zheng Shanjie:

I'll answer this question. You've raised a very important issue. At the recent Summer Davos Forum held in Tianjin, many international attendees also brought up this topic with me. As a Chinese saying goes, "Preparedness ensures success and unpreparedness spells failure." China formulates a Five-Year Plan every five years, which fully reflects the essence of the country's effective governance approach. General Secretary Xi Jinping has emphasized that using medium- and long-term plans to guide economic and social development is an important way for the Party to govern the country. While the formulation of such plans is not unique to China, our long-standing commitment and the remarkable results we have achieved are unparalleled globally.

Looking back to the early years of the People's Republic of China, from the First Five-Year Plan in the 1950s to the current 14th Five-Year Plan, we have remained true to our original aspiration and firm in our mission. One five-year period after another, a series of incremental achievements has led to tremendous progress, profoundly transforming the nation and improving people's lives. Since the 18th CPC National Congress, particularly during the 13th and 14th Five-Year Plan periods, China has achieved the historic goal of building a moderately prosperous society in all respects. Economic strength, scientific and technological capabilities, and comprehensive national power have reached new heights, ushering in a new journey toward building a modern socialist country in all respects. It is fair to say that the Five-Year Plans have documented both the hardships and the glory of the country's development. The history of China's Five-Year Plans is, in essence, a history of the country's economic and social progress.

As for how the country's Five-Year Plans are formulated and implemented, I would summarize the process in four key aspects.

First, we fully leverage institutional strengths. We use the distinctive advantage of the socialist system's ability to concentrate resources on accomplishing major undertakings. Specifically, we formulate Five-Year Plans based on long-term strategic goals, develop annual plans, introduce macroeconomic policies, and implement major projects to ensure the timely and high-quality completion of key targets and tasks. This system, which combines long-term planning with short-term arrangements, plays a crucial role in maintaining stable economic and social development. It also plays an important role in stabilizing expectations, boosting confidence, and driving momentum.

Second, we balance consistency and innovation. Staying true to principles helps us avoid losing direction and avoid catastrophic mistakes, while innovation enables us to keep pace with and lead the times. We align planning with the goal of building a modern socialist country, adapting to changing circumstances to ensure that our plans reflect the spirit of the times, follow objective laws, and show creativity. For example, the 14th Five-Year Plan was designed in response to profound global changes unseen in a century. It upholds a people-centered development philosophy and clearly outlines major strategies such as fostering a new development paradigm. The plan offers both a diagnosis of the current situation and a roadmap for moving forward.

Third, we focus on building social consensus and unity. We embrace an open-door approach to planning, integrating top-level design with broad public consultation. At every stage, we gather feedback, fully absorbing the new ideas that grassroots officials and ordinary citizens develop in practice. By identifying the most widely shared goals in people's aspirations for a better life, we ensure that everyone knows both where we are going and how to get there.

Fourth, we put emphasis on maintaining firm strategic resolve. We embrace the principle that "success isn't about claiming credit, but about getting the job done." We believe that we must keep moving forward until our goals are met. We pass the baton from one runner to the next, with each generation building on the work of those before. Through successive Five-Year Plans, we will turn the grand goal of the great rejuvenation of the Chinese nation into a magnificent reality. 

Looking back on the history of formulating and implementing these plans, the most important and fundamental lesson is maintaining the leadership of the CPC. This means effectively transforming the Party's propositions into national policy and unified social action, ensuring the Party's leadership in all fields and throughout the entire process of social-economic development. This guarantees that planning objectives and tasks are successfully implemented and produce tangible results.

Since the beginning of this year, General Secretary Xi Jinping has made important instructions on multiple occasions regarding the formulation of the 15th Five-Year Plan. We will earnestly study these instructions. While stepping up efforts to implement the objectives and tasks of the 14th Five-Year Plan, we will make sound plans for economic and social development during the 15th Five-Year Plan period. We will adhere to formulating the plan in a scientific, democratic and law-based manner. We will draw up the draft outline in alignment with the CPC Central Committee's proposals for the 15th Five-Year Plan, striving to formulate a high-quality plan that can stand the test of history and earn the approval of the public. Thank you.

Shou Xiaoli:

Let's continue with the questions. We have time for two more.

South China Morning Post:

The 14th Five-Year Plan included 102 major projects. Will the investment intensity decrease over the next five years? What are the main investment areas? Thank you.

Zheng Shanjie:

Mr. Li will take these questions.

Li Chunlin:

China's per capita GDP has just exceeded $13,000. To further promote economic development and improve people's living standards, we must maintain a certain level of investment intensity. After more than four years of solid progress, the 102 major projects you mentioned have achieved significant progress and substantial results. All planned goals are expected to be completed by the end of the year. These accomplishments can be summarized as the "five new" developments

First, infrastructure has created a "new support" for economic circulation. Major transportation infrastructure projects have been completed and put into operation, including the Guiyang-Nanning High-Speed Railway, the Hotan-Ruoqiang Railway, the China-Laos Railway, and Chengdu Tianfu International Airport. Major projects like the Sichuan-Xizang Railway and the Pinglu Canal are progressing steadily. Approximately 90% of county-level administrative centers nationwide now have 30-minute access to expressways, and high-speed rail coverage reaches 97% of cities with populations over 500,000. This provides solid support for facilitating both domestic and international economic circulation.

Second, scientific and technological breakthroughs have empowered economic development with "new vitality." Many cutting-edge scientific and technological achievements have made major breakthroughs. The Zhurong rover achieved the first successful Mars landing; The Chang'e 5 mission brought back lunar soil samples that are now being shared for research with six countries; and the Zuchongzhi 3 quantum computing prototype leads globally. Meanwhile, the EAST nuclear fusion experimental device broke the world record by maintaining plasma at 100 million degrees Celsius for 1,066 seconds in steady-state high-confinement mode.

Third, ecological conservation has created "new miracles" for a beautiful China. The most notable example is the comprehensive launch of three major symbolic campaigns in the Three-North Shelterbelt Forest Program. The Yellow River's Great Bend region has witnessed greenery advancing and sand retreating. The campaign to eliminate moving sand dunes in Horqin and Hunshandake has effectively curbed sandstorm sources affecting Beijing and Tianjin. Along the edge of the Taklimakan Desert, a sand-blocking protective belt stretching over 3,000 kilometers has been constructed, forming a "Green Great Wall." I worked for nine years in Yulin, Shaanxi province, in the heart of the desert region within the Yellow River's Great Bend. The approximately 573,620 hectares (8.6 million mu) of the Mu Us Desert have been comprehensively managed, and the area has been designated as a National Forest City. It is now the season when vegetation is lush and green. So, I welcome everyone to visit and see for yourselves.

Fourth, public welfare projects have enhanced the "new quality" of people's lives. We supported the construction of 125 regional medical centers, providing comprehensive coverage for provinces in central and western regions where high-quality medical resources are relatively limited. We have also assisted 707 county-level hospitals in reaching tertiary hospital standards and accelerated progress toward ensuring that major illnesses can be treated without leaving the province, common illnesses are addressed at the city and county levels, and routine medical care is managed at the primary level. We have also added over 500,000 student dormitory beds and supported undergraduate enrollment expansion at Double First-Class universities. Meanwhile, we have supported aging-friendly renovations for 2.08 million households in need and provided rehabilitation assistance to over 1.7 million disabled children, delivering greater warmth and care in protecting older adults and children.

Fifth, safety engineering projects have built a "new foundation" for national security. Construction of infrastructure for six emergency rescue centers covering different regions nationwide has been completed. These centers feature increasingly modern rescue equipment and enhanced emergency response capabilities. At the same time, the four major oil and gas strategic channels have been continuously improved, the total storage capacity of reservoirs nationwide has reached 1 trillion cubic meters, and China's number of dams ranks highest in the world, ensuring high-quality development with high-level security.

Next, the NDRC will continue to strengthen coordination among various departments and between the central and local governments to ensure the successful completion of 102 major projects. At the same time, we will adopt a strategic approach in planning major projects for the 15th Five-Year Plan period and provide a more solid guarantee for pursuing Chinese modernization. Thank you.

Shou Xiaoli:

One last question, please.

21st Century Business Herald:

Not long ago, Beijing hosted a robot marathon, while Hangzhou held a robot boxing match, demonstrating a strong futuristic atmosphere on site and leaving us excited about the future. What other achievements has China made in sci-tech innovation development in recent years? Thank you.

Zheng Shanjie:

Mr. Yuan will answer your question.

Yuan Da:

Thank you for your question. I share the same feeling as everyone else. During the 14th Five-Year Plan period, China's sci-tech and industrial innovation achievements have flourished. Innovation has become the main driving force for promoting high-quality development, and new quality productive forces are comprehensively changing how we work and live. What stands out most to me are five areas that are experiencing rapid acceleration.

First, the growth of R&D investment is rapidly accelerating. Overall, in 2024, R&D spending accounted for 2.68% of the country's GDP, reaching 3.6 trillion yuan, ranking second globally. Looking at the key players, enterprises are the main drivers of R&D investment growth, with corporate R&D spending accounting for over 77% of the total. In terms of benchmarks, Shenzhen, as a leading innovation city, has raised its R&D investment level to 6.46% of its GDP. All of this demonstrates that China is taking major strides from being a global manufacturing hub toward becoming a global innovation center.

Second, breakthroughs in key core technologies are rapidly accelerating. For example, the annual output of integrated circuits in 2024 grew 72.6% compared with the end of the 13th Five-Year Plan period, an increase of about 190 billion pieces. More and more products are now equipped with Chinese chips. In addition, China has made new breakthroughs in nuclear power, high-speed rail, shipbuilding and marine engineering, and set multiple global records in AI, quantum technology, manned spaceflight, deep space exploration and other fields. Chinese innovation continues to deliver increasingly impressive breakthroughs.

Third, the growth of emerging industries is rapidly accelerating. For example, in 2024, the value added of China's high-tech manufacturing industry surged 42% compared with the end of the 13th Five-Year Plan period. The value added of core industries related to the digital economy increased 73.8%, accounting for 10.4% of GDP, an increase of 2.6 percentage points. Moreover, by 2024, China had over 4,000 innovative drugs under development, accounting for about 30% of the world's total.

Fourth, talent-driven innovation is rapidly accelerating. China ranks first globally in terms of total human resources, sci-tech personnel and R&D staff. Each year, more than 5 million graduates earn degrees in science, technology, engineering and mathematics. This talent pool provides a solid foundation for technological breakthroughs and is the primary source of innovation momentum.

Fifth, the formation of a distinctly Chinese innovation ecosystem is rapidly accelerating. Chinese companies are actively building and deeply integrating into the open-source ecosystem with unprecedented enthusiasm. This approach creates a "dual empowerment" between technological innovation and application development, establishing a globally unique pathway for technological advancement and innovation ecosystem. For example, we have thoroughly implemented the "AI Plus" initiative, introducing AI to thousands of industries and households. Industry-specific deep vertical applications have emerged as a hallmark of the Chinese approach.

Moving forward, we will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, remain committed to the innovation-driven development strategy, and promote integrated advancements in technological and industrial innovation. We will coordinate the integrated development of education, science and technology, and talent, vigorously foster a sound ecosystem conducive to comprehensive innovation, and expedite efforts to achieve high-level sci-tech self-reliance, enabling sci-tech innovation to shape the future and benefit the world. Thank you.

Zheng Shanjie:

I'd like to add a few more words. The past five years have not been easy. Today's time limit of just over an hour makes it difficult to present the complete situation. Afterward, we will provide you with extensive data, case studies and other materials on the development process over the past five years. We appreciate your support.

Shou Xiaoli:

Thank you, Mr. Zheng. Thank you to all the speakers and participating journalists. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Wang Yiming, Wang Xingguang, Lin Liyao, Xu Kailin, Liu Jianing, Liao Jiaxin, Mi Xingang, Liu Sitong, Liu Caiyi, Zhang Tingting, Wang Qian, Zhang Rui, Zhang Junmian, Wang Yanfang, Li Huiru, Li Xiao, Ma Yujia, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Hu Heping, executive deputy director of the Publicity Department of the Communist Party of China (CPC) Central Committee

Major General Wu Zeke, deputy director of the Leading Group Office of Military Parade and deputy director general of the Operation Bureau of the Joint Staff Department of the Central Military Commission

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

June 24, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This year marks the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. A series of commemorative activities will be held and have drawn widespread public attention across all sectors of society. Today we have invited Mr. Hu Heping, executive deputy director of the Publicity Department of the Communist Party of China (CPC) Central Committee, and Major General Wu Zeke, deputy director of the Leading Group Office of Military Parade and deputy director general of the Operation Bureau of the Joint Staff Department of the Central Military Commission, to brief you on plans for the commemorative activities and take your questions.

Now, I'll give the floor to Mr. Hu for his introduction.

Hu Heping:

Good afternoon. I am very pleased to introduce the plans for marking the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War.

Eighty years ago, after 14 years of arduous and heroic struggle, the Chinese people secured a great victory in the War of Resistance Against Japanese Aggression, marking the full triumph in the World Anti-Fascist War. This great victory belonged not only to the Chinese people, but also to the peoples of the world. On the occasion of the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, grand commemorative events will be held to bear history in mind, honor all those who laid down their lives, and carry forward the great spirit of patriotism and resistance against aggression. These efforts carry profound and lasting significance. In March this year, the CPC Central Committee and the State Council issued a special notice, making overall arrangements for the commemorative activities. Now, let me give you a brief overview.

First, on the morning of Sept. 3, in the name of the CPC Central Committee, the Standing Committee of the National People's Congress (NPC), the State Council, the National Committee of the Chinese People's Political Consultative Conference (CPPCC), and the Central Military Commission, a grand ceremony to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War will be held at Tian'anmen Square in Beijing, including a military parade. General Secretary Xi Jinping will deliver an important speech. At noon on Sept. 3, a reception will be held in Beijing, and General Secretary Xi Jinping will deliver an important speech. On the evening of Sept. 3, a commemorative gala will be held in Beijing, to be attended by Party and state leaders.

Second, in the name of the CPC Central Committee, the State Council and the Central Military Commission, the "80th Anniversary of the Victory in the Chinese People's War of Resistance Against Japanese Aggression" commemorative medals will be awarded to surviving veterans, comrades and generals of the war or their surviving family members. Authorities across all regions and relevant departments will organize commemorative visits to honor surviving veterans, comrades and generals of the war, their bereaved families, and the relatives of martyrs.

Third, on July 7, a ceremony commemorating the 88th anniversary of the beginning of China's whole-nation resistance war against Japanese aggression will be held at the Museum of the War of Chinese People's Resistance Against Japanese Aggression in the name of the CPC Central Committee, the State Council and the Central Military Commission. The event will concurrently inaugurate a themed exhibition titled "For National Liberation and World Peace: Commemorating the 80th Anniversary of Victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War."

Fourth, around Sept. 3, to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, symposiums will be held with compatriots from Hong Kong, Macao and Taiwan, as well as overseas representatives. An international academic conference will also be convened.

Fifth, on Sept. 18, a bell-tolling and siren ceremony to remember September 18 Incident will be held at the 9.18 Historical Museum in Shenyang, Liaoning province, in the name of the CPC Liaoning provincial committee and the Liaoning provincial government.

Sixth, around Oct. 25, a gathering will be held to mark the 80th anniversary of Taiwan's recovery from Japanese occupation. Overseas Chinese will be supported in organizing related commemorative activities locally.

Seventh, on Dec. 13, a national memorial ceremony for the victims of the Nanjing Massacre will be held at the Memorial Hall of the Victims in Nanjing Massacre by Japanese Invaders in Nanjing, in the name of the CPC Central Committee and the State Council.

Eighth, the fourth batch of national-level anti-Japanese aggression war memorial facilities and sites, and a new list of renowned martyrs and heroic groups from the Chinese People's War of Resistance Against Japanese Aggression will be officially released. Restoration and preservation efforts will be undertaken to repair and protect war memorial facilities, sites and relics. And a batch of high-quality war-themed exhibitions will be promoted.

Ninth, to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, a series of cultural works and themed publications will be produced and released, while academic research will be intensified with the establishment of priority research projects. In addition, commemorative coins and stamps will also be issued.

Tenth, local authorities and departments will organize community-based commemorative activities tailored to their specific contexts. Hong Kong and Macao will also organize a series of commemorative activities.

These events make up the main schedule. The CPC Central Committee has clearly required that all commemorative activities must strictly comply with the Party Central Committee's eight-point decision on conduct and its rules for implementation, rigorously enforce the Regulations on Practicing Thrift and Opposing Waste in Party and Government Organs, prevent formalism and avoid extravagance, ensuring that the events are both solemnly conducted and pragmatically modest.

That is all from me. Thank you.

Shou Xiaoli:

Now, let's invite Mr. Wu to give his introduction.

Wu Zeke:

Good morning everyone, and welcome all our friends from the media. It's my pleasure to present the details of the military parade to you all.

The CPC Central Committee and the Central Military Commission have decided that a grand military parade will be held at Tian'anmen Square in Beijing on Sept. 3. General Secretary of the CPC Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission Xi Jinping will inspect the troops at the military parade.

This parade is an important part of the activities commemorating the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. The theme is to commemorate the great victory and promote the great spirit of the Chinese People's War of Resistance Against Japanese Aggression. The purpose is to highlight the historical significance of the Chinese People's War of Resistance Against Japanese Aggression as the main theater in the East during the Global War against Fascism and its significant contribution to victory in the World Anti-Fascist War, to underscore the pivotal role of the CPC during the war, to demonstrate China's firm commitments to safeguarding the fruits of World War II and upholding international fairness and justice, as well as its active efforts in building a community with a shared future for mankind. It also aims to fully demonstrate the firm political awareness and practical actions of the People's Liberation Army (PLA) in absolute loyalty to the core leadership of the CPC Central Committee, as well as the excellent conduct through enhancing its political loyalty, the new structure of military strength, new progress in its modernization, and the new achievements in its training under combat conditions. It further demonstrates China's strong will and capabilities to resolutely safeguard its national sovereignty, security and development interests, and to firmly maintain world peace. All of this is intended to inspire the entire Party, army, and people of all ethnic groups in the country to unite more closely around the CPC Central Committee with Comrade Xi Jinping at its core, strive to achieve the centenary goal of building a strong military on schedule, accelerate the building of the PLA into a world-class military, and to strive for the comprehensive promotion of the great cause of building a strong country and national rejuvenation through Chinese modernization.

The military parade will consist of foot formations, equipment formations and aerial formations. In its overall design, the parade has made well-coordinated arrangements for the participation of units from the People's Liberation Army (PLA) and the People's Armed Police Force, with each formation and echelon carefully organized. It features three main characteristics: First, it highlights both historical legacy and contemporary features. On the one hand, by showcasing the historical designations, honors and unique spirit of the wartime units, the parade will pay tribute to fallen heroes, honor military merits and carry forward the indomitable spirit of the Chinese People's War of Resistance Against Japanese Aggression. It reflects the enduring legacy forged by the sacrifice and blood of heroes, a legacy that remains deeply rooted in the hearts of the Chinese people and continues to inspire the armed forces to resolutely safeguard the nation and national dignity. On the other hand, the parade will highlight the PLA's new organizational structure, enhanced capabilities and fresh image, showcasing the historic achievements and transformative progress of the military in the new era, as well as its firm strides toward becoming a world-class military. Second, it reflects the distinctive features of various military branches while demonstrating integrated joint operations. The foot formations will focus on presenting the new structure and composition of military branches following reforms, as well as the integration of standing forces, reserve forces and militia. The equipment formations will highlight the latest advances in China’s weapons systems, and the integration of multiple platforms and units will showcase new models of joint command, joint operations and joint support, demonstrating the PLA's capability for independent innovation in defense technologies. The aerial formations will display the systematic strength and rapidly improving combat capabilities of China's air-based combat capabilities. Third, the parade will feature both traditional mainstay combat forces and emerging strategic forces. All weapons and equipment on display are domestically developed and currently in service. In addition to showcasing the new generation of conventional weaponry, the parade will also feature emerging forces, including unmanned and intelligent systems, undersea combat units, cyber electronic operations and hypersonic weapons, demonstrating the PLA's strong capacity to adapt to technological advances, the evolution of warfare and the demands of future battlefields. In addition, the design of the review procedures, the ceremonial atmosphere and the integration of elements commemorating the Chinese People's War of Resistance Against Japanese Aggression will feature several innovative touches. For example, a joint military band has been formed to perform classic songs popular during the Chinese People's War of Resistance Against Japanese Aggression, as well as military pieces rich in contemporary and combative spirit. These arrangements aim to evoke historical memory, pay tribute to the fallen heroes and experience the powerful, uplifting atmosphere of the parade, creating a solemn and grand commemorative occasion.

At present, preparations are being carried out in an orderly manner in accordance with the overall plans approved by the CPC Central Committee and the Central Military Commission. The relevant work has received strong support from central Party and government departments as well as the Beijing municipal government. This parade upholds the principle of building the military in a diligent and thrifty manner. It makes full use of existing resources and conditions to maximize efficiency and cost-effectiveness.

We firmly believe that under the strong leadership of the CPC Central Committee, the Central Military Commission and General Secretary Xi Jinping, and through the joint efforts of all the officers and soldiers participating in the parade, we will present a grand military parade that promotes the great spirit of resisting aggression, embodies the characteristics of the times and has the demeanor of a major country to both Chinese people and people all over the world. 

That's all for my introduction. Thank you.

Shou Xiaoli:

Now, the floor is open for questions. Please identify the media outlet you represent before asking your question.

CCTV:

Just now, Mr. Hu introduced the overall arrangements for the commemorative events, which seem very grand. What is the main purpose for doing this? Also, what will the features be? Thank you.

Hu Heping:

As you just said, these commemorative events will indeed be very grand. The Chinese People's War of Resistance Against Japanese Aggression was a national liberation struggle against the longest and largest-scale foreign invasion with the largest number of casualties in modern Chinese history, making a significant contribution to the victory in the World Anti-Fascist War. The theme of the commemorative events this time is "Bear History in Mind, Honor All Those Who Laid Down Their Lives, Cherish Peace, and Open up the Future." They aim to remember the arduous struggle of the Chinese people against Japanese militaristic aggression, honor the heroes and martyrs who bravely sacrificed their lives in the Chinese People's War of Resistance Against Japanese Aggression and all those who contributed to the war, declare the Chinese people's unwavering commitment to the path of peaceful development and to resolutely safeguarding world peace, and draw wisdom and strength from history to create a brighter future.

In recent years, the Party and the state have annually arranged commemorative events for the outbreak and victory of the Chinese People's War of Resistance Against Japanese Aggression, the September 18th Incident, and the National Memorial Day for the Nanjing Massacre Victims. We feel that the commemorative events this time have the following several characteristics:

First, the commemorative events are of a high level. Commemorating the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War is a major event for the Party and the state this year. Among the plans just introduced, there will be five events held in the name of the Party and the country: the commemorative ceremony, reception, medal presentation, themed exhibition opening and national memorial ceremony. The reason for arranging so many high-level events is to show the Party and the government's respect for history and reverence for martyrs and heroes, and to better cultivate and inspire people's patriotism.

Second, the commemorative events cover a wide range of aspects. The victory in the Chinese People's War of Resistance Against Japanese Aggression is a grand epic of the Chinese people all making concerted efforts and of the weak defeating the strong. All localities and departments will also hold related commemorative events in accordance with the unified arrangements of the CPC Central Committee. Provinces and key cities where important historical events, major battles and significant anti-Japanese armed forces activities occurred during the war will organize symposiums, academic seminars and other activities and hold exhibitions of pictures, calligraphy works, paintings and cultural relics. Compatriots in Hong Kong, Macao and Taiwan and overseas Chinese will also organize related commemorative activities to pass on the collective memory of the Chinese nation.

Third, the commemorative events value public participation. In April, the Publicity Department of the CPC Central Committee, together with relevant departments, issued a notice. This clarified the arrangements for mass commemorative activities to celebrate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, and required all localities and departments, in line with their actual conditions, to make good use of various grassroots cultural strengths and widely carry out mass commemorative activities with clear themes, diverse forms and rich educational significance, vigorously promoting the great spirit of resisting aggression throughout the society.

At the same time, we will also invite international friends to participate in the commemorative events, hold international academic seminars, promote a batch of excellent works on the theme of the Chinese People's War of Resistance Against Japanese Aggression, and organize domestic special exhibition halls to hold special exhibitions in other countries. We also welcome all peace-loving countries and individuals in the world to pay attention to and participate in China's commemorative events, and jointly commemorate the hard-won great victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. Thank you.

Phoenix TV:

The 2015 military parade commemorating the 70th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression featured a formation of war veterans riding in vehicles, demonstrating respect for those who fought in the war. Will war veterans also be included in the upcoming parade? Will the Chinese Kuomintang (KMT) party veterans who fought against Japanese aggression be invited to attend? Thank you.

Wu Zeke:

Thanks for your question. I'll take this one. Veterans of the Chinese People's War of Resistance Against Japanese Aggression are national heroes, the backbone of the nation, and living witnesses to victory. More than 80 years ago, these veterans stepped forward in times of crisis, fighting for the nation, for the motherland, and for dignity, defending the vast territory of their homeland. Their heroic spirit in bloody battles, their unwavering determination in resisting foreign aggression, and their noble character of sacrifice are worthy of our eternal respect. In 2015, during the military parade commemorating the 70th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression, a formation of more than 300 veterans was arranged as the first group to be reviewed. This formation included veterans, model representatives of those who supported the frontlines, and children of martyrs. Veterans of the KMT forces who fought against Japanese aggression were also invited to participate, demonstrating our deep respect for these heroic predecessors and the great spirit of national resistance. As they passed through Tian'anmen, there were many deeply moving moments that touched people of all ethnic groups across the country and around the world. Ten years have passed. Most of the surviving veterans are now approaching 100 years old. These veterans are witnesses to and participants in history, and they are treasures of the Chinese nation. Considering factors such as their physical conditions, we will not organize a formation of veterans to participate in this parade. Instead, we will arrange for veterans, comrades, members of the militia, local model representatives of those who supported the frontlines, and martyrs' relatives to attend the Tian'anmen ceremony, expressing our deep respect for these heroes. As we know, China's war of resistance was a nationwide effort, and the KMT forces also played a vital role. We will invite KMT veterans to attend the ceremony in person. Thank you.

Cover News:

This is the second commemorative parade marking the victory in the fight against Japanese aggression. What new elements or designs have been introduced this time to highlight the history of the war of resistance? Thank you.

Wu Zeke:

Thank you for your question and your interest in the parade. On Aug. 15, 1945, Japan unconditionally surrendered. The victory in the Chinese people's War of Resistance Against Japanese Aggression was a great triumph of justice over evil, light over darkness, and progress over the reactionary. This year marks the 80th anniversary of the Chinese People's War of Resistance Against Japanese Aggression. Organizing a military parade at Tian'anmen Square in the capital is a regular arrangement for major national commemorative days and an important part of commemorative activities. It carries profound political importance and far-reaching historical significance. This military parade highlights the theme of victory and incorporates several elements of the war of resistance and historical references into its design, mainly in three aspects. First, it aims to carry forward the legacy of the war of resistance. Most of the units participating in the parade have been selected from those with direct ties to the forces that fought in the war, including the Eighth Route Army, the New Fourth Army, the Northeast Anti-Japanese United Army, and the South China Guerrilla Force. This fully reflects the people's armed forces' arduous and extraordinary journey during the war and the historical inheritance of their revolutionary legacy. The second aspect is honoring merit and achievements. We have selected banners representing the honors and achievements of our military during the war of resistance, reflecting the great victories and lasting achievements made by the people's armed forces in the war of resistance. This expresses our deep remembrance of revolutionary martyrs, our enduring recognition of distinguished units with meritorious services, and our commitment to carrying forward fine traditions and conduct. The third aspect is revisiting historical classics. For this military parade, we have assembled a joint military band to perform well-known classics from the war of resistance. We have also specially designed parade-specific insignia and other elements, allowing people across the country to revisit the history of the war, understand its spirit, and inspire the people's armed forces to pledge to defend national and ethnic dignity at all costs. Thank you.

Bloomberg News:

Will leaders from other countries be invited to attend this parade and other activities? If so, what is the current progress?

Hu Heping:

According to the overall plan for the commemorative event, we will invite foreign leaders, former political dignitaries, senior officials, heads of international organizations, foreign envoys, military attaches and representatives of international organizations in China. We will also invite foreign friends who contributed to China's victory in the war, or representatives of their families, to attend the event. Relevant information will be released promptly. Thank you.

The Paper.cn:

Commemorating the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression is a major event for our country this year. Based on past experience, we typically release a range of outstanding literary and artistic works to commemorate such important occasions. Mr. Hu, could you share what kinds of works the public can expect to see this year? Thank you.

Hu Heping:

Thank you for your question. Let me give you a little preview in advance. Literature and art are the clarion call of the times and best reflect the spirit of an era. Eighty years ago, after 14 years of arduous and heroic struggle, the Chinese people defeated the brutal Japanese militarist invaders and secured a great victory in the Chinese People's War of Resistance Against Japanese Aggression. During this period, many outstanding works of art and literature emerged, inspiring people's fighting spirit and boosting national morale. Many of these works have stood the test of time and become classics. For example, our national anthem, "March of the Volunteers," was born amid the flames of the War of Resistance, inspiring countless sons and daughters of the Chinese nation to rise up and fight back. Another well-known piece, the "Yellow River Cantata," also gave voice to the heroic and unyielding spirit of the Chinese nation. We will broadcast and screen classic wartime literary and artistic works, allowing people to relive that history marked by blood and fire.

This year, we will also create and launch a series of films, dramas, music, dance, and artworks centered on the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. Many of these works are currently at a crucial stage of development. I will highlight a few examples from various fields. In film and television, we will release the movie "Mountains and Rivers as Witness," which depicts the hardships of 14 years of war of resistance, and "Dongji Rescue," which highlights the heroic deeds of Chinese fishermen. We are also producing the TV series "Our Homeland" and the documentary "Victory 1945." On stage, we are producing the Peking opera "Struggles in an Ancient City" and the stage play "Looking for Doolittle." We will also present a series of performances featuring outstanding stage works. In publishing, we will release works such as "Mao Zedong: Banner of the War of Resistance" and "A New History of the Second World War" and will organize a wide range of themed reading activities. I will stop here for now. Thank you.

China Daily:

The victory in the Chinese people's War of Resistance Against Japanese Aggression made tremendous sacrifices and important contributions to the Allies' victory in the World Anti-Fascist War. How has this parade been designed to reflect that? Will any international friends who contributed to China's victory be invited to attend? Thank you.

Wu Zeke:

Thank you for your questions. I will answer them. As the main theater of the World Anti-Fascist War in the East, the Chinese People's War of Resistance Against Japanese Aggression began the earliest and lasted the longest. During the 14 years of resistance, the Chinese battlefield held back and fought against the main forces of Japanese militarism for an extended period, eliminating more than 1.5 million Japanese troops. This played a decisive role in the ultimate defeat of the Japanese aggressors and made a significant historical contribution to the Allies' victory in the World Anti-Fascist War. China endured tremendous national sacrifice, with more than 35 million military and civilian casualties. In this military parade, we are incorporating key numbers such as "14" and "80" into the parade design to create a strong atmosphere of remembrance. At the same time, the Chinese people will never forget the valuable assistance and support provided by anti-fascist forces around the world, including peace-loving and justice-seeking countries, individuals and international organizations. For example, the Soviet Union provided China with many weapons and equipment; the American Flying Tigers volunteer group braved treacherous flights over the Himalayan supply route known as "the Hump"; Canadian doctor Norman Bethune came to China to save lives; and many anti-fascist fighters from various countries directly participated in China's War of Resistance. History shows that a just cause enjoys broad support while an unjust cause finds little. A just war will inevitably gain widespread backing and achieve ultimate victory. To showcase international friendship and cooperation and to commemorate the victory in the War of Resistance, we will invite international friends who contributed to China's victory, or representatives of their families, to observe the military parade. Thank you.

People's Daily:

A moment ago, when Minister Hu outlined the characteristics of the commemorative event, he placed special emphasis on "focusing on mass participation." What arrangements have been made for public commemorative activities? Thank you.

Hu Heping:

Thank you for your question. The successful organization of commemorative activities relies on the broad participation and support of the public. There are several specific arrangements for this year's public commemorative activities.

First, on key anniversaries such as the Victory Day of the Chinese People's War of Resistance Against Japanese Aggression, Martyrs' Day, the National Memorial Day for Victims of the Nanjing Massacre, and other key dates like July 7 and Sept. 18, the public will be invited to take part in commemorative activities. These include laying wreaths, visiting memorial facilities, paying respects at martyrs' graves and attending public memorial ceremonies.

Second, we will make full use of the educational role of memorial facilities, historic sites and relics related to the War of Resistance, as well as patriotism education bases and national defense education bases. Public visits will be organized, along with themed Party and Youth League activities and other events.

Third, we will carry out activities such as singing patriotic songs, reciting anti-Japanese war poetry, rereading family letters from that era, holding exhibitions of anti-Japanese war-themed literary works, and hosting competitions for storytellers of red history.

In addition to these diverse offline activities, a range of online activities will also be organized. For example, we will launch online exhibition halls and dedicated web pages, produce and broadcast multimedia content popular with the public, and organize online activities such as commemorations for martyrs, themed essay competitions, and knowledge quizzes. Our goal is to enable more people to take part in commemorative activities through the internet. Thank you.

PLA Daily and China Military Online:

The PLA has consistently participated in U.N. peacekeeping operations and humanitarian rescue efforts, and is a steadfast force in maintaining world peace. How will this military parade demonstrate China's determination and capability to safeguard world peace? Thank you.

Wu Zeke:

Thank you for your question. As we all know, U.N. peacekeeping operations were created to promote and preserve peace and have significantly contributed to global peace. This year marks the 35th anniversary of China's military participation in U.N. peacekeeping operations. Over the past 35 years, China has sent more than 50,000 peacekeepers to more than 20 countries and regions, including South Sudan and Lebanon, and has participated in 26 U.N. peacekeeping operations. So far, 17 officers and soldiers have given their lives for the cause of global peace. From mine clearance and explosive disposal to monitoring ceasefires, providing security and carrying out emergency rescues, Chinese peacekeepers have faced a wide range of challenges. No matter what lies ahead — whether the smoke of war or the threat of an epidemic — the officers and soldiers of the Chinese peacekeeping force have always been brave and fearless. They have fulfilled their mission and safeguarded security and stability. China's Blue Helmets have become a key force in U.N. peacekeeping operations, demonstrating China's firm support for multilateralism and the U.N. Charter and its purposes through concrete actions. They have stood firm as a disciplined force for peace and justice. This year's military parade will include troops that have participated in peacekeeping missions. This not only highlights the grand commemoration of the victory in the Chinese People's War of Resistance against Japanese Aggression, but also demonstrates China's responsibility as a major country in fulfilling its international obligations and maintaining world peace. China's military has always been a steadfast force in maintaining world peace. We will faithfully uphold the vision of a community with a shared future for mankind, actively fulfill the international military responsibilities of a major country, and comprehensively promote international military cooperation in the new era. We will provide more public security goods to the international community and make greater contributions to world peace and regional stability. Thank you.

Nanfang Daily, Nanfang Plus:

Recently, the SCIO released the emblem for the commemoration, which has attracted widespread attention since its unveiling. Could you share some background on the design and explain its significance? What message does it convey? Thank you.

Hu Heping:

First, thank you for taking an interest in the emblem for the commemoration. The emblem embodies the theme, spirit and sentiment of the commemoration and holds significant value. The emblem is composed of the Great Wall, olive branches, rays of light, the number "80" and the dates "1945-2025." The Great Wall symbolizes the entire nation's unity and bravery in the face of invasion, underscoring that the great national spirit, with patriotism at its core, was the decisive factor in achieving victory of the war against Japanese aggression. The olive branches represent the hard-won peace achieved by the Chinese people through their victory. They also signify that the Chinese people unite with people of all other countries to cherish and safeguard peace. The victory gate formed by rays of light symbolizes that the victory of the Chinese People's War of Resistance against Japanese Aggression and the World Anti-Fascist War is a victory of justice over evil, light over darkness, and progress over reaction. It indicates that the country has bright prospects for realizing national rejuvenation under the strong leadership of the CPC.

We believe this emblem highlights historical continuity and reflects the values of our times. It embodies Chinese elements, meets the needs of the present era, and captures the unique character of the commemoration. As the reporter just mentioned, since the release of the emblem, it has attracted significant attention and received positive comments and likes from many netizens. Some netizens commented that the emblem's design is simple and elegant, and carries deep significance. It seems the emblem is very well received. I would also like to take this opportunity to encourage media friends to help promote and make good use of the emblem. Thank you.

Lianhe Zaobao:

May I ask what new types of weapons and equipment will be featured in this year's military parade? Thank you.

Wu Zeke:

Thank you for your question. We understand that there is strong interest in the equipment that will be featured in this year's parade, so I would like to provide a general overview here. All the weapons and equipment to be showcased in this parade are domestically produced and serve as active-duty main battle equipment. They will represent a concentrated display of the Chinese military's system-based combat capabilities, new-domain and new-quality combat strength and strategic deterrence power. They also embody China's independent innovation capacity in weapons and equipment development. The main characteristics will be as follows:

The first characteristic is systematic integration. All the weapons and equipment in the parade have been carefully selected from the operational units of various military branches. They will include strategic strike capabilities, advanced operational and tactical equipment, and new types of capabilities designed to meet the demands of future warfare.

The second characteristic is the integration of all key operational components. The parade will include a range of forces, including command and control, reconnaissance and early warning, air and missile defense, strike capabilities, and integrated support units.

The third characteristic is a focus on combat readiness. The parade formations will be organized according to operational groupings, reflecting the principles of information-led operations, system-based support, elite troop deployment, and joint operational effectiveness. These weapons and equipment clearly feature greater strike precision, improved adaptability to battlefield conditions, and enhanced combat effectiveness. As we all know, during the Chinese People's War of Resistance Against Japanese Aggression, our military was severely under-equipped—relying primarily on homemade guns and cannons, broadswords and spears. Driven by the indomitable spirit captured in the saying, “if we lack guns and cannons, we’ll seize them from the enemy,” our troops we bravely resisted the Japanese invaders and achieved remarkable victories, often defeating stronger forces with inferior arms. However, this lack of advanced weapons and equipment also came at a tremendous cost. In recent years, we have made successive breakthroughs in a range of cutting-edge technologies and developed numerous advanced weaponry, ushering in a new stage in the development of our military equipment. Next-generation aircraft carriers, destroyers, stealth fighters, drones, strategic missiles and other critical national assets have been rapidly commissioned into active service. Our military has achieved leapfrog progress and historic milestones in weapons and equipment development, providing strong support for a substantial boost in combat capability and instilling greater confidence in our ability to fight and win wars. Thank you.

Xinhua:

We have noticed that this year, people in many countries around the world are commemorating the 80th anniversary of the victory in the World Anti-Fascist War in a variety of ways, revisiting that harrowing and heroic chapter in history. The earlier introduction mentioned several planned international exchange activities. What are the main considerations behind these arrangements? Thank you.

Hu Heping:

Thank you for your question. The victory in the Chinese People's War of Resistance Against Japanese Aggression marked a historical turning point, as the Chinese nation emerged from a period of deep crisis and began its path toward national rejuvenation. It was also a significant part of the victory in the World Anti-Fascist War. The Chinese People's War of Resistance Against Japanese Aggression received broad support from the international community. Additionally, the Chinese people will always remember the contributions made by people from various countries to China's victory in the war. Mr. Wu also touched on this point earlier.

In the World Anti-Fascist War, the Chinese People's War of Resistance Against Japanese Aggression was the first to begin and lasted the longest. The Chinese people bore the brunt of the main battlefield in the East during the World Anti-Fascist War, making immense national sacrifices. According to incomplete statistics, more than 35 million Chinese soldiers and civilians were killed or wounded. Based on 1937 price levels, direct economic losses exceeded $100 billion, and the indirect losses surpassed $500 billion. The Chinese battlefield tied down and fought the main forces of Japanese militarism, eliminating more than 1.5 million Japanese troops. This played a decisive role in the final defeat of the Japanese aggressors. China's War of Resistance played a strategic role in coordinating with and supporting Allied operations. It aligned with strategic actions on the European battlefield and in other parts of Asia, restraining and disrupting the strategic coordination efforts of the fascist powers of Japan, Germany, and Italy. This had a significant impact on the victory in the World Anti-Fascist War and contributed greatly to the global effort for peace.

The Soviet Union, the United States and the United Kingdom, along with other anti-fascist allies, provided valuable human and material support during the Chinese People's War of Resistance against Japanese Aggression. Canadian doctor Norman Bethune and Indian doctor Dwarkanath Kotnis traveled thousands of miles to China to save lives. French doctor Jean Jerome Augustin Bussiere delivered medical supplies by creating a "hump route by bike" through Japanese lines. German businessman John Rabe and Danish businessman Bernhard Arp Sindberg protected Chinese refugees during the Nanjing Massacre. Journalists such as Briton Michael Lindsay and internationalist fighter Hans Shippe actively reported on and publicized Chinese people's heroic resistance against Japanese aggression. The Chinese people will never forget their moving deeds and noble virtues.

The victory in the World Anti-Fascist War laid an important foundation for the construction of the post-World War II international order. The Chinese people will work together with all peace-loving countries and peoples around the world to promote an accurate understanding of World War II history, implement the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative, and advance the building of a new type of international relations and a community with a shared future for mankind. Thank you.

Shou Xiaoli:

Please continue with your questions. We have time for one last question.

Beijing Radio and Television Station:

China's militia forces played an important role in the Chinese People's War of Resistance Against Japanese Aggression, and in several recent military parades, female militia contingents from various sectors of the capital have been organized to participate. What new arrangements or features are planned for this aspect in this year's parade? Thank you.

Wu Zeke:

I'll answer this. Thank you. As we all know, the militia is a component of China's armed forces and serves as an auxiliary and reserve force for the People's Liberation Army. During the Chinese People's War of Resistance Against Japanese Aggression, the militia forces not only engaged with the Japanese troops behind enemy lines, launching guerrilla warfare on an unprecedented scale, but also provided manpower, material support and logistical backing for the Eighth Route Army, the New Fourth Army and other main forces.They effectively coordinated with main forces to strike the Japanese invaders, making an indelible contribution to the victory of the war and writing an enduring chapter in the history of the people's war. Since the 18th CPC National Congress, China's national defense mobilization and reserve forces have been transformed, upgraded and developed at an accelerated pace. A modern militia system has been established, integrating peacetime service, emergency response and wartime combat capabilities. This year, we have arranged for a militia formation to participate in the parade, marking the first time the militia has taken part in a parade themed around commemorating the Chinese People's War of Resistance Against Japanese Aggression. At present, our militia formation has arrived in Beijing and is conducting training with full political enthusiasm, high morale and unwavering fighting resolve. Thank you.

Shou Xiaoli:

Thank you to all our speakers and to all the journalists for your participation. This concludes today's press conference. Goodbye, everyone.

Translated and edited by Wang Yiming, Wang Xingguang, Liu Caiyi, Xu Kailin, Liao Jiaxin, Liu Jianing, Yang Xi, Zhang Tingting, Mi Xingang, Yang Chuanli, Wang Qian, Wang Yanfang, Liu Sitong, Zhang Rui, Huang Shan, Ma Yujia, Zhang Junmian, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

June 16, 2025

Zhou Jianshe:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we are joined by Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS. Mr. Fu will brief you on China's economic performance in May 2025 and then take your questions.

Now, I'll give the floor to Mr. Fu.

Fu Linghui:

Ladies and gentlemen, good morning. I am very pleased to attend today's press conference. I will start by briefing you on the main economic indicators for this May and then take your questions.

In May, China's economy remained stable while making further progress.

In May, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, all regions and departments conscientiously implemented the decisions and deployments of the Party Central Committee and the State Council. Adhering to the general principle of seeking progress while maintaining stability, we fully and accurately implemented the new development philosophy on all fronts, accelerated the construction of the new development pattern, solidly promoted high-quality growth, and accelerated the implementation of more proactive and effective macro policies. The national economy withstood the pressure and operated steadily, with production demand growing steadily, employment remaining stable, new drivers of growth becoming stronger, and high-quality development moving toward excellence and innovation.

First, industrial production registered stable growth and equipment manufacturing and high-tech manufacturing grew quickly.

In May, the total value added of industrial enterprises above designated size grew by 5.8% year on year, or 0.61% month on month. In terms of sectors, the value added of mining went up by 5.7% year on year, manufacturing up by 6.2%, and the production and supply of electricity, thermal power, gas and water up by 2.2%. The value added of equipment manufacturing increased by 9.0% year on year, and that of high-tech manufacturing increased by 8.6%, which were 3.2 percentage points and 2.8 percentage points faster than that of the total value added by industrial enterprises above designated size. In terms of ownership, the value added of state holding enterprises increased by 3.8% year on year; that of share-holding enterprises increased by 6.3%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 3.9%; and that of private enterprises increased by 5.9%. In terms of products, the outputs of 3D printing devices, industrial robots and new energy vehicles (NEVs) grew by 40.0%, 35.5% and 31.7% year on year, respectively. In the first five months, the total value added of industrial enterprises above designated size went up by 6.3% year on year. In May, the manufacturing purchasing managers' index (PMI) stood at 49.5%, an increase of 0.5 percentage point from the previous month. The production and operation expectation index was 52.5%, up by 0.4 percentage point. In the first four months, the total profits made by industrial enterprises above designated size were 2.117 trillion yuan, up by 1.4% year on year.

Second, the service sector grew quickly, with the modern services sector gaining momentum.

In May, the index of services production (ISP) increased by 6.2% year on year, 0.2 percentage point faster than that of the previous month. In terms of sectors, that of information transmission, software and information technology services, and leasing and business services, wholesales and retails grew by 11.2%, 8.9% and 8.4% year on year, respectively, which were 5.0 percentage points, 2.7 percentage points and 2.2 percentage points faster than that of the ISP. In the first five months, the ISP increased by 5.9% year on year. In the first four months, the business revenue of service enterprises above designated size went up by 7.2% year on year. In May, the business activity index for the service sector was 50.2%, up 0.1 percentage point from the previous month; and the business activity expectation index was 56.5%, rising by 0.1 percentage point. Specifically, the business activity index for sectors like railway transportation, air transportation, postal service, telecommunication, broadcast, television and satellite transmission services, internet software and information technology services, stayed within the high expansion range of 55.0% and above.

Third, market sales recovered and sales of products under the trade-in program grew rapidly.

In May, the total retail sales of consumer goods was 4.1326 trillion yuan, up by 6.4% year on year, 1.3 percentage points faster than that of April; or up by 0.93% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3.6057 trillion yuan, up by 6.5% year on year; and that in rural areas reached 526.9 billion yuan, up by 5.4%. Grouped by consumption patterns, the retail sales of goods were 3.6748 trillion yuan, up by 6.5%; and the income of catering was 457.8 billion yuan, up by 5.9%. Sales of basic living goods and some upgraded products showed good growth. Retail sales in units above designated size of grain, oil and food products, jewelry, and sports and entertainment goods grew by 14.6%, 21.8% and 28.3%, respectively. The effect of trade-in of consumer goods continued to show results, with the retail sales of household appliances and audiovisual equipment, communication equipment, cultural and office supplies, and furniture by enterprises above designated size growing by 53.0%, 33.0%, 30.5% and 25.6%, respectively. In the first five months, the total retail sales of consumer goods reached 20.3171 trillion yuan, up by 5.0% year on year. Online retail sales reached 6.0402 trillion yuan, up 8.5% year on year. Specifically, the online retail sales of physical goods were 4.9878 trillion yuan, up 6.3%, accounting for 24.5% of the total. In the first five months, the retail sales of services grew by 5.2% year on year.

Fourth, fixed-asset investment continued to expand, with manufacturing investment growing fast.

In the first five months, fixed-asset investment (excluding rural households) reached 19,194.7 billion yuan, up 3.7% year on year. Excluding real estate development investment, fixed-asset investment grew 7.7%. By sector, investment in infrastructure grew 5.6% year on year, manufacturing investment rose 8.5%, and real estate development investment fell 10.7%. Nationwide, sales of newly built commercial buildings totaled 353.15 million square meters, down 2.9% year on year. Sales of newly built commercial buildings were 3,409.1 billion yuan, a decrease of 3.8%. By sector, primary industry investment grew 8.4% year on year, secondary industry investment rose 11.4%, and tertiary industry investment fell 0.4%. Private investment was flat from a year earlier. Excluding investment in real estate development, private investment increased 5.8%. Within high-tech industries, investment in information services rose 41.4% year on year; investment in aerospace vehicle and equipment manufacturing grew 24.2%; investment in computer and office device manufacturing increased 21.7%; and investment in professional technical services climbed 11.9%. In May, fixed-asset investment (excluding rural households) increased 0.05% month on month.

Fifth, goods imports and exports continued to grow, and the trade structure kept improving.

In May, total goods imports and exports reached 3,809.8 billion yuan, up 2.7% year on year. Of this total, exports hit 2,226.7 billion yuan, up 6.3%, while imports were 1,533.1 billion yuan, down 2.1%. In the first five months, total goods imports and exports reached 17,944.9 billion yuan, up 2.5% year on year. Of this total, exports reached 10,668.2 billion yuan, up 7.2%, while imports were 7,276.7 billion yuan, down 3.8%. In the first five months, general trade imports and exports grew 0.8%, accounting for 64.2% of the total trade value. Imports and exports by private enterprises grew by 7% year on year, accounting for 57.1% of the total trade value, up 2.4 percentage points from the same period last year. Exports of mechanical and electrical products grew 9.3% year on year, accounting for 60% of the total export value.

Sixth, employment remained generally stable and the surveyed urban unemployment rate declined.

In the first five months, the average surveyed urban unemployment rate was 5.2%. In May, the surveyed urban unemployment rate was 5%, down 0.1 percentage point from the previous month. The surveyed unemployment rate for people with local household registration was 5%, and the rate for those with non-local household registration was also 5%. The rate for people with non-local agricultural household registration was 4.9%. The surveyed urban unemployment rate in 31 major cities was 5%, down 0.1 percentage point from April. The average weekly working hours for employees at enterprises nationwide was 48.5 hours.

Seventh, consumer prices remained low, while the core consumer price index (CPI) rebounded modestly.

In May, the CPI fell 0.1% year on year and 0.2% month on month. By category, prices for food, tobacco and alcohol rose 0.1% year on year; clothing prices increased 1.5%; housing prices were up 0.1%; prices for household goods and services rose 0.1%; transportation and communication prices fell 4.3%; education, culture and entertainment prices increased 0.9%; health care prices rose 0.3%; and prices for other goods and services jumped 7.3%. In terms of food, tobacco and alcohol prices, fresh vegetable prices fell 8.3%, grain prices dropped 1.4%, pork prices rose 3.1%, and fresh fruit prices increased 5.5%. The core CPI, which excludes food and energy prices, went up 0.6% year on year, 0.1 percentage point higher than that of the previous month. In the first five months, the CPI dipped 0.1% year on year.

In May, the national producer price index (PPI) fell 3.3% year on year and 0.4% from the previous month. Purchasing prices for industrial producers dropped 3.6% year on year and 0.6% from the previous month. In the first five months, both the national PPI and the purchasing price index for industrial products fell 2.6% from a year earlier.

Overall, in May, as the effects of a combined policy package continued to materialize, efforts to stabilize the economy and promote growth showed clear results. The national economy maintained a generally stable trajectory with steady progress, fully demonstrating its resilience and vitality. It should also be noted that there are many external uncertainties and destabilizing factors, domestic demand's internal growth momentum still needs to be strengthened, and the foundation for sustained economic recovery and improvement needs to be further consolidated. Moving ahead, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, and adhere to the general principle of pursuing progress while ensuring stability. We must fully and accurately implement the new development philosophy, accelerate the construction of a new development paradigm, coordinate domestic economic work with international economic and trade efforts, and unswervingly handle our own affairs well. We will give greater priority to the expansion of domestic demand and the strengthening of the domestic economic cycle, concentrate on stabilizing employment and the economy, and promote high-quality development to advance sustained and healthy economic development. Thank you.

Zhou Jianshe:

Thank you, Mr. Fu. The floor is now open for questions. Please identify your media outlet before asking your question.

National Business Daily:

We have observed that in May, the impact of international factors and new drivers of domestic consumption continued to grow and interact. Based on the data for May, what trends or characteristics stood out in China's economic performance? How would you evaluate it? Thank you.

Fu Linghui:

In May, the international environment changed rapidly. Facing a complex situation, under the strong leadership of the CPC Central Committee, all regions and departments accelerated the implementation of more proactive and effective macroeconomic policies. They focused on stabilizing employment, enterprises, the market and expectations; worked to expand domestic demand; promoted the integration of technological and industrial innovation; strengthened the domestic economic cycle; and effectively responded to external changes. As a result, economic performance remained generally stable, some indicators continued to improve, new drivers of growth grew stronger, and the momentum of high-quality development persisted, demonstrating the strong resilience and vitality of China's economy. Mainly, the following characteristics stood out:

First, growth remained stable. With the support of various policies, enterprises actively adjusted and responded, leading to rapid growth in industrial production. In May, the value added of industrial enterprises above designated size increased 5.8% year on year, maintaining rapid growth. China has a complete industrial system, and key sectors such as equipment manufacturing have seen accelerated growth while advancing industrial upgrading. This has provided strong support for stable industrial expansion. In May, the value added of equipment manufacturers above designated size increased 9%, accounting for 54.3% of the growth of industrial production. The expansion of domestic consumption and increased holiday travel also drove faster growth in the service industry. The service production index rose 6.2% year on year in May, 0.2 percentage point faster than the previous month. Stable growth in production and supply provided strong support for meeting market demand and boosting economic growth.

Second, economic performance remained stable. To determine whether the economy is operating stably, it is important to examine changes in production and demand indicators, as well as employment and price trends. As for production and demand indicators, in May, the growth rates of key measures — such as the value added of industrial enterprises above designated size, the service production index, and total retail sales of consumer goods — remained generally stable, indicating overall stability in production and demand. From the perspective of employment, the national surveyed urban unemployment rate in May was 5%, down 0.1 percentage point from the previous month. From a price perspective, due to international factors and lower prices for some food items, the CPI in May declined slightly year on year, but the rate of decline was unchanged from the previous month. The increase in core CPI, which excludes food and energy, was higher than the previous month, indicating that market supply and demand remained generally balanced. These figures show that overall economic performance in May was steady.

Third, continued improvement was seen. While overall economic performance remained stable, macroeconomic policies continued to take effect, domestic demand expanded, production and supply increased, and some indicators showed further improvement. Boosted by consumer goods trade-ins and online sales promotions, sales growth has accelerated. In May, total retail sales of consumer goods increased 6.4% year on year, 1.3 percentage points faster than the previous month. In the first five months, retail sales of services increased 5.2%, 0.1 percentage point faster than in the first four months. Accelerated consumption growth, especially increased spending on services, boosted related service industries. In May, the production index for wholesale and retail rose 1.6 percentage points, while the index for accommodation and catering increased 0.9 percentage point from the previous month.

Fourth, multiple growth drivers emerged. China is at a critical stage of industrial upgrading and development. As innovation plays an increasingly prominent role, new drivers of growth, such as high-end manufacturing, the digital economy and new energy industries, continue to strengthen. This has supported industrial transformation and stable economic performance. The statistical data for May also reflect these trends. The value added of high-tech manufacturers above designated size increased 8.6% year on year, while the value added of digital product manufacturers increased 9.1%, both significantly outpacing the overall growth rate of enterprises above designated size. The output of NEVs and solar cells jumped 31.7% and 27.8%, respectively, maintaining rapid growth.

Fifth, the economy showed great resilience. Against the backdrop of a complex and severe external environment, China's economy continued to show resilience and potential. This was evident not only in stable economic performance, but also in the continuous growth of foreign trade despite external pressures. In May, China's total imports and exports of goods increased 2.7% year on year, with exports up 6.3%. Despite sluggish global economic growth and a decline in trade with the United States, China successfully diversified its foreign trade. Imports and exports with ASEAN countries and Belt and Road partner nations continued to grow. Although exports of some labor-intensive products have slowed, exports of electromechanical products with higher technical content have expanded. These factors have boosted trade growth and reflect the advantages of China's large economic scale, complete industrial system and strong overall competitiveness.

Overall, in the face of changes in the external environment, the macro policies have worked together, and all sides have actively responded. In May, the national economy operated steadily overall, continued its trend of high-quality development, and showed comparatively strong resilience and vitality. In the next stage, there are many uncertain factors in the international environment, long-standing problems accumulated in the domestic economy are still emerging, and the foundation for economic recovery and improvement still needs to be consolidated. We must thoroughly implement the decisions and deployments of the Party Central Committee and the State Council, implement more proactive and promising macro policies, focus on strengthening the domestic economic flows and innovation-driven development, solidly promote high-quality development and foster the sustained and healthy development of the economy. Thank you.

South China Morning Post:

After the Geneva agreement between China and the U.S. was reached in May, did the related outcomes show up in the May economic data, such as in terms of exports, employment and investment? Thank you.

Fu Linghui:

Thank you for your question. In May, China and the U.S. made substantial progress and reached important consensus during trade talks in Geneva, which is beneficial to the improvement of the economic and trade relations between the two countries and also conducive to the development of the world economy. From the overall situation in May, the economy operated steadily. Under the effect of macro policies, production and demand maintained steady growth, employment continued to improve and remained stable overall, new momentum continued to grow, high-quality development was steadily promoted, and the economy showed a steady and progressive development trend. Thank you.

Reuters:

What is the government's economic forecast for the second quarter? And will further policy support measures need to be rolled out?

Fu Linghui:

Thank you for your questions. As for the forecast of economic growth, as a department involved in statistics, we generally do not make such predictions. Because we are data producers, there is a certain contradiction if we also engage in making predictions. In terms of the overall economic operation, the annual economy still has relatively good support. Since the beginning of this year, facing the complex environment, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China's economy has withstood pressure and operated steadily, showing strong resilience and vitality. Judging from the current situation, the long-term positive trend of our economy remains fundamentally unchanged. It has distinct characteristics such as a stable foundation, numerous advantages, strong resilience and great potential, thereby providing a solid foundation, guarantee and support to ensure stable economic operation.

First, the development trend is good, and the stable operation has a foundation. Since the second quarter, although the external environment has been complex and volatile, macro policies have continued to exert their effects; the large number of business entities have adapted and pursued innovation; our economy has withstood the pressure and achieved stable growth; and high-quality development has been steadily advanced, laying a solid foundation for the stable operation of the economy in the next stage. In terms of the major indicators, from January to May, the service industry production index and total retail sales of consumer goods increased by 5.9% and 5% year on year, respectively, both accelerating compared to the first quarter. The added value of industries above designated size achieved a fast growth rate of 6.3%.

Second, policy efforts have been effective, ensuring stable and long-term development. Since the beginning of this year, China has implemented more proactive macro policies, increased counter-cyclical adjustments, accelerated the promotion of the "two major" (major national strategies and security capacity building in key areas) and "two new" (large-scale equipment upgrades and trade-in of consumer goods) policies, effectively enhanced consumption vitality, driven production growth, promoted transformation and upgrading, and fully demonstrated the important role of macro policies in stabilizing economic operations. Looking forward, China has sufficient reserves in its policy toolbox, with room for macro policy adjustments, which can be dynamically adjusted and actively responded to according to changes in the situation, continuing to guide the stable operation of the economy.

Third, innovation momentum is growing, supporting positive development. China continues to unwaveringly adhere to high-quality development, accelerate the cultivation and growth of new quality productive forces, and speed up the integration of technological innovation and industrial innovation. Meanwhile, the development trend of emerging industries is relatively good, traditional industries have been renewed and upgraded, the development of the digital economy and green economy is flourishing, and the continuously growing new momentum will provide a continuous new driving force for economic development. From January to May, the added value of digital product manufacturing industries above designated size increased by 9.9% year on year; and from January to April, the operating income of "little giant" service industry enterprises above designated size, which use specialized and sophisticated technologies to produce novel and unique products, increased by 18.4%, fully reflecting the strong vitality of the new momentum.

It is also worth noting that at the recent first meeting of the China-U.S. economic and trade consultation mechanism, the two sides reached a principled agreement on a framework of measures to implement the consensus from the June 5 call between the two heads of state and to consolidate the outcomes of the Geneva economic and trade talks. New progress has been made in addressing each side's economic and trade concerns, helping to promote the stable and sustainable development of China-U.S. economic and trade relations. This is also expected to bring greater stability and certainty to the global economy.

Of course, it should also be noted that the external environment remains complex and severe, with many unstable and uncertain factors. Domestically, there are difficulties in transitioning between traditional and new drivers of growth, and pressure to maintain stable economic performance persists. In the face of a complex environment, the key is to remain focused on our own businesses, implement more proactive and effective macroeconomic policies, continuously strengthen the internal momentum of economic development, and respond to external uncertainties with the certainty provided by high-quality development. Thank you.

Dazhong Daily:

Amid the continued rollout of economic stabilization policies in 2025, how have these combined macroeconomic measures affected May's economic data? How should their performance be evaluated? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, in the face of a complex and volatile development environment, various regions and departments have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council. They have vigorously pursued more proactive and effective macroeconomic policies, helping the economy withstand pressure and maintain stable operations, with the effects continuing to emerge. Judging by key indicators in May, continued macroeconomic policy support has helped expand demand, boost production, improve expectations and unleash market vitality, providing important backing for stable economic performance.

First, it unleashed the potential of domestic demand. Consumer goods trade-in programs have spurred rapid growth in sales of related products. In May, among retail sales by enterprises above the designated size, sales of household appliances and audiovisual equipment, communication devices, cultural and office supplies, and furniture rose by 25.6% to 53% year on year, posting rapid growth. These categories contributed 1.9 percentage points to the increase in total retail sales of consumer goods. The impact of investment in equipment upgrades has also continued to grow. In the first five months of the year, investment in equipment and tools rose 17.3%, driving overall investment growth by 2.3 percentage points and accounting for 63.6% of total investment growth.

Second, it has driven production growth. Driven by large-scale equipment upgrades, production in related industries has grown rapidly. In May, the value-added output of industries above designated size such as lithium-ion battery manufacturing, ship and related equipment manufacturing, and boiler and prime mover equipment manufacturing rose 28.6%, 12.8% and 11.8% year on year, respectively. With the continued impact of consumer goods trade-in programs, demand for green, intelligent and high-quality products has continued to emerge, which has also driven production growth. In May, production of trade-in products increased, with NEVs up 31.7%, tablet computers up 30.9% and electric bicycles up 20.5%.

Third, it has improved business performance and expectations. With the ongoing rollout of macroeconomic policies, market sales have expanded, driving gains in corporate performance, profit recovery and improved expectations. In terms of corporate performance, from January to April, the profits of industrial enterprises above designated size increased 1.4% year on year, 0.6 percentage point faster than that from January to March. In April alone, profits increased 3%, 0.4 percentage point faster than in March. In terms of expectations and confidence, the manufacturing PMI rebounded by half a percentage point in May compared with the previous month, with the production index returning to expansion territory. The services business activity index stood at 50.2%, marking the third consecutive month it has stayed in the positive growth range.

Fourth, it has increased market vitality. Effective macroeconomic policies have boosted market activity, leading to faster flows of people and goods. In May, the year-on-year growth rate of passenger turnover accelerated compared with the previous month, and the number of domestic tourists during the May Day holiday rose 6.4% nationwide. The expansion and optimization of visa-free policies have led to an influx of foreign tourists, while inbound tourism has also shown strong vitality. Express delivery business volume is expected to maintain rapid growth for May.

Next, we need to further implement the decisions and arrangements of the CPC Central Committee and the State Council. We will adopt more proactive and effective macroeconomic policies, further expand domestic demand, ensure the smooth flow of economic circulation, and stimulate momentum and vitality. These efforts will help to continuously strengthen the foundation for sound economic development. Thank you.

Market News International:

In May, import growth measured in U.S. dollars continued to decline. What are the reasons for the contraction in imports so far this year? What is the outlook for import performance in the second half of the year? Thank you.

Fu Linghui:

Thank you for your questions. Since the this year, the decline in China's imports of goods has been the result of multiple factors. Since the beginning of this year, affected by the uncertainty of international trade policies, the growth momentum of the global economy has weakened, and we have seen a slowdown in global trade growth, which will inevitably affect the growth of China's imports. At the same time, some countries have increased trade restrictive measures, which have also had some adverse effects on China's imports. Moreover, after the weakening of global economic growth momentum this year, international commodity prices, and especially energy prices, have significantly declined. As a major importer of energy and raw materials, the decline in commodity prices will affect the growth of our imports. In the first five months, the average import prices of iron ore, crude oil, coal and soybeans in China decreased by 16.4%, 10.6%, 22.5% and 13.9%, respectively. These factors will have a certain impact on our imports.

While the import value of some commodities has declined, the import of major industrial products in China has continued to grow. In the first five months, the import value of machinery and electronic products increased by 6% year on year, with the import value of automatic data processing equipment and its parts, and integrated circuits increasing by 69% and 7.3%, respectively. In the next stage, as domestic demand continues to expand and China seizes the initiative by opening the market wider to the outside world in an orderly manner, China's vast market will undoubtedly offer greater opportunities and more choices to the world. Thank you.

China Financial and Economic News:

From the newly released data, we noticed that the CPI in May decreased by 0.1% year on year, while the core CPI increased by 0.6%. What is the reason for this? How would you assess this phenomenon? Thank you.

Fu Linghui:

Thank you for your questions. In May, the CPI decreased by 0.1% year on year and by 0.2% month on month. The month-on-month change in the CPI turned from an increase to a decrease, with a slight year-on-year decline, mainly due to international factors and the decline in food prices.

First, the decline in international energy prices has led to a decrease in the prices of domestic gasoline and other related consumer goods. The weakening of global economic growth momentum and the significant decline in energy commodity prices have increased the effect transmitted to domestic energy prices, pulling down energy prices in the CPI for May. From a month-on-month perspective, in May, energy prices in the CPI decreased by 1.7%, leading to a decrease of about 0.13 percentage point in CPI, among which gasoline prices decreased by 3.8%, 1.8 percentage points wider than the previous month. From a year-on-year perspective, in May, energy prices in the CPI decreased by 6.1%, 1.3 percentage points wider than the previous month, leading to a decrease of about 0.47 percentage point. Energy prices are the main factor affecting the year-on-year decrease in the CPI in May.

Second, some fresh food has come to market. With sufficient food supply, prices have fallen. In May, the market supply of vegetables, eggs and other foods increased, driving prices downward. From a month-on-month perspective, in May, food prices fell by 0.2%, leading to a decrease of about 0.04 percentage point in the monthly CPI. Specifically, fresh vegetable prices decreased by 5.9%, while prices for eggs, pork and poultry decreased by 0.3%-1%. From a year-on-year perspective, in May, food prices decreased by 0.4%, with the rate of decline widening by 0.2 percentage point from the previous month.

Although the CPI slightly declined year on year in May, the economy remained stable and the effects of policies to boost consumption have emerged. The positive changes in the CPI are accumulating.

First, the core CPI growth rate has expanded. Since food and energy prices are significantly affected by short-term factors, the core CPI, which excludes food and energy, better reflects the trend of price changes. In May, the core CPI increased by 0.6% year on year, 0.1 percentage point higher than the previous month, reflecting the gradually greater role of domestic demand in driving prices.

Second, prices of industrial consumer goods have increased at a quicker pace. The trade-in policy has been strengthened and expanded, driving up the prices of related industrial consumer goods. In May, the prices of industrial consumer goods excluding energy rose by 0.6% year on year, an increase of 0.2 percentage point from the previous month. The prices or cultural and entertainment durable consumer goods, such as cellphones and computers, rose by 1.8%.

Third, the rise in service prices has widened. Holiday demand and the expansion of residents' requirements for education, culture and living have driven up service prices. In May, service prices went up by 0.5% year on year, 0.2 percentage point higher than the previous month. Specifically, prices for flight tickets and tourism increased by 1.2% and 0.9%, respectively, and the prices of family services and education services increased by 1.7% and 1.2%, respectively.

The current price situation should be viewed from a comprehensive and nuanced perspective. On one hand, we're seeing the positive effects of policies aimed at boosting domestic demand and promoting a reasonable recovery in the overall price level. The core CPI growth has steadily expanded and positive changes in prices have continuously accumulated. However, we also need to acknowledge that overall prices are at a low level, affecting the corporate profitability and the employment and income increases of residents. In the next stage, we will further coordinate expanding domestic demand with deepening supply-side structural reforms, leverage the combined effects of macro policies, regulate market pricing, promote improve the supply and demand relationships, and foster a reasonable recovery in prices. Thank you.

Jiupai News:

In the current economic environment, job market stability is critically important. What are the key highlights and concerns in the May employment data? In response to employment challenges, which areas should be prioritized to promote job growth going forward? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the international environment has become increasingly complex and severe, with more uncertainties emerging. This has had a certain impact on businesses' demand for labor. Amid the complex situation, all regions and departments have actively implemented policies and measures to promote high-quality and full employment, increased support for businesses to create jobs, and focused on key groups in the workforce. These efforts have helped maintain overall employment stability. Latest figures show that the national urban surveyed unemployment rate was 5% in May, down 0.1 percentage point from the previous month. The unemployment rate among those aged between 25 and 59, the majority of the labor market, remained stable, while the youth unemployment rate declined for a third consecutive month. The overall employment situation continued its stable trend.

The employment situation in May remained generally stable due mainly to the following factors: First, steady economic growth provided a foundation for stability. More proactive and effective macroeconomic policies have yielded results. Domestic demand has steadily expanded, effectively offsetting the negative impact of external factors. This has ensured the stable operation of the economy, helped stabilize labor demand, and created favorable conditions for employment stability. In May, the value-added output of industrial enterprises above designated size rose 5.8% and the service industry production index increased 6.2%, both maintaining overall stability compared with April. Second, industrial development has been actively promoted. Driven by supportive policies, several industries with large employment capacity performed well, which also contributed to employment stability. Policies encouraging the trade-in of consumer goods and the boost from the holiday economy led to expanded market sales. Industries such as wholesale and retail, accommodation, and catering remained active, supporting employment stability. In May, the production indices for the wholesale and retail industry increased 8.4%, while the accommodation and catering industry rose 6.2%, marking a significant acceleration in growth compared to the previous month. Third, policies aimed at stabilizing employment have taken effect. Since the beginning of this year, relevant departments have intensified efforts to implement employment stabilization policies. These measures include increased support for enterprises to expand job opportunities, greater subsidies for individuals, and enhanced assistance for people facing employment difficulties. By focusing on the development of new quality productive forces, creating consumption hotspots and advancing key engineering projects, we have actively sought new sources of job growth, expanded vocational skills training and strengthened public employment services. All these efforts have contributed to overall employment stability.

However, it is important to note that employment stability still faces certain pressures, mainly due to the complex changes in the external environment, which have affected the labor market. Domestically, some industries are having difficulty recruiting workers, while certain groups are under significant employment pressure. These trends reflect ongoing mismatches between labor supply and demand. Next, in response to employment pressures, we should follow the decisions and deployments of the CPC Central Committee and the State Council. We need to further stabilize employment and the economy, strengthen vocational skills training, improve the match between labor supply and demand, promote full employment, enhance employment quality, continuously improve people's livelihoods, support stable and healthy economic development, and maintain overall social stability. Thank you.

CCTV:

Based on economic performance in the first five months, what trends have emerged in the Chinese economy amid a complex and challenging external environment? What are the forecasts for the economic trend in the first half of the year? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the external environment has grown increasingly complex, with rising unilateralism and protectionism severely impacting the international economic and trade order. However, China's economy remains fundamentally stable, backed by numerous advantages, strong resilience and great potential. The momentum for stable growth, the trend toward high-quality development, and the shift toward new and positive development have all remained unchanged. These are the sources of confidence and assurance that enable China's economy to overcome various risks and challenges as it moves forward.

First, the momentum for stable economic growth remains unchanged. In the first quarter of this year, China's economy got off to a strong start. Since April, however, increased uncertainty in trade policies and other factors have weakened the momentum of global economic growth. Major economic organizations have lowered their forecasts for growth in 2025. According to the latest report from the World Bank, the global economy is projected to grow 2.3% in 2025, down 0.4 percentage point from the forecast at the beginning of the year. Under these circumstances, maintaining growth stability in China's economy since the second quarter has been particularly challenging. From a production perspective, the value-added output of industrial enterprises above designated size rose 6.3% year on year from January to May, while the service industry production index grew 5.9%. Both indicators remained generally stable compared with the first quarter. From a demand perspective, total retail sales of consumer goods rose 5% from January to May, showing faster growth than in the first quarter. Fixed-asset investment increased 3.7%, remaining basically stable.

Second, innovation-driven development remains unchanged. In recent years, China has been gradually shifting from old to new drivers of growth, with innovation playing an increasingly important role in development. This year, all sectors have continued to increase investment in innovation, advance scientific and technological innovation, and drive industrial innovation, with the economy maintaining its shift toward new development trends. In the first five months, the value added of high-tech manufacturing enterprises above designated size increased 9.5% year on year. Breakthroughs have been made in cutting-edge technology fields such as large AI models and humanoid robots, further boosting industrial upgrading. From January to May, the output of industrial robots rose 32% year on year, while the value added of in-vehicle smart device manufacturing increased 26.8%.

Third, the shift toward green and low-carbon development remains unchanged. China is unswervingly promoting the transition to a green and low-carbon economy, which not only improves the ecological environment but also supports the steady growth of green industries, particularly in the new energy sector, fostering new drivers of economic growth. This year, the development of China's green industry has continued to improve. In the first five months, the output of NEVs and solar cells increased 40.8% and 18.3% year on year, respectively. Clean energy generation has grown rapidly, with wind, solar power generation by industrial enterprises above designated size increasing 11.1% and 18.3%, respectively, from January to May.

Fourth, the pursuit of high-level opening up remains unchanged. Against the backdrop of rising protectionism, unilateralism and challenges to global economic and trade exchanges, China continues expanding its high-level opening up. We're actively engaging in economic and trade cooperation with partners worldwide on the basis of mutual benefit and win-win results. The positive results are becoming increasingly apparent. From January to May, China's total volume of trade in goods increased 2.5% year on year, while the value of trade in services from January to April rose 8.2% compared with the same period last year. To facilitate cross-border travel, China has proactively expanded its visa-free policies, promoting economic ties and people-to-people exchanges. During this year's May Day holiday, the number of inbound visitors entering China under the visa-free policy increased 72.7% year on year.

Fifth, the ongoing improvement of people's livelihoods remains unchanged. Ensuring and improving people's well-being during development is a key goal of Chinese modernization. Since the beginning of this year, all localities and government departments have focused on stabilizing employment and the economy, working to boost personal incomes and strengthening efforts to better meet people's basic needs. From January to May, China's average surveyed urban unemployment rate was 5.2%, indicating a generally stable employment situation. From January to April, spending on social security and employment in the national general public budget rose 8.5%, while education spending increased 7.4%. Both rates outpaced the overall growth of total general public budget spending. The General Office of the CPC Central Committee and the General Office of the State Council recently issued new guidelines to further safeguard and improve public well-being and address the most pressing concerns of the public. As related policies are gradually implemented, they will further enhance people's quality of life.

These conditions show that China's economic performance had a strong start in the first quarter. Despite increased external shocks in the second quarter, China's strong economic foundation, effective policies and robust development momentum continue to provide firm support for stable economic performance. Therefore, based on the first half of the year, China's economy is expected to maintain overall stability and achieve steady progress. Thank you.

CNR:

We have noticed that the State Council recently issued a notice on conducting the fourth national agricultural census. What are the main objectives and key areas of this census? Moreover, what are the differences between this census and previous ones? Thank you.

Fu Linghui:

Thank you for your questions and interest in the agricultural census. The State Council recently announced plans to conduct the fourth national agricultural census in 2026. It will be a major survey on national conditions and strength as China forge ahead on the new journey of advancing the rejuvenation of the Chinese nation on all fronts through Chinese modernization.

According to the Statistics Law of the People's Republic of China and the Regulation on National General Surveys of Agriculture, the agricultural census is conducted once every 10 years, with years ending in six designated as census years. China will conduct the fourth national agricultural census in 2026. The main goal is to develop a clear understanding of the state of the country's agriculture, rural areas and rural residents in the new era, and to objectively capture new developments in agricultural growth, new trends in rural construction, changes in rural life and progress in rural reform. This census is of great significance for formulating sound policies for agriculture and rural affairs, advancing all-around rural vitalization, accelerating the modernization of agriculture and rural areas, and building China into an agricultural powerhouse.

The fourth agricultural census will focus on five main areas. First, it will examine agricultural production conditions, including agricultural personnel, land use and transfers, and agricultural social services. Second, it will cover grain and food production, including grain and cash crops, livestock products such as meat, eggs and milk, as well as forestry products and aquatic products. Third, the census will assess new quality productive forces in agricultural productivity, including new types of agricultural business entities, modern protected agriculture and smart agriculture. Fourth, it will look at basic rural development, including rural industrial development, construction and governance. Fifth, it will investigate rural residents' living conditions, including household situations and quality of life.

Compared with the previous three national agricultural censuses, there are several major changes in the fourth . First, keeping up with the times. In terms of the content, this census, on the basis of understanding the conditions of agriculture, rural areas and rural residents, investigations will be made in new areas such as diversified food supply, agricultural new quality productive forces, and creating a beautiful and harmonious countryside. Second, being scientific and efficient. In terms of methodology, this census will adopt a combination of comprehensive census and sampling survey, as well as a mix of long and short forms, which will effectively improve the quality and efficiency of the census, and reduce the burden on primary-level workers. Third, being empowered by digital technologies. From the perspective of census-taking means, this census will strengthen the application of modern survey methods, and make full use of modern information technologies such as satellite remote sensing, drones and artificial intelligence to improve the level of digital and intelligent data collection. Fourth, joint governance and shared benefits. From the perspective of data utilization, this census will make extensive use of administrative records, and strengthen the development and utilization of census data, with the aim of creating a unified "map" of agricultural census data, and promote the extensive application and sharing of census results.

Currently, the fourth national agricultural census is in the preparation stage, which mainly involves the establishment of census institutions, the development of census plans, and the implementation of pilot surveys. Here, we would like to invite friends from the media to pay attention to and support the fourth national agricultural census. Your active publicity work will help mobilize social participation and ensure the census is carried out smoothly. Through our collective efforts, we can gain a more comprehensive understanding of our country's agricultural foundation and better promote the construction of an agricultural powerhouse. Thank you.

Shandian News:

What are the new highlights and changes in the domestic consumer market in May? How effective have the previous policies aimed at boosting consumption been? And what are your expectations for the driving force and trend of consumption growth? Thank you.

Fu Linghui:

Thank you for your questions. Consumption is an important engine of economic growth, and vigorously boosting consumption is key to responding to external changes, smoothing domestic circulation, and improving residents' quality of life. Since the beginning of this year, various regions and departments have resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council, actively promoted special actions to boost consumption, and intensified and expanded the implementation of the consumer goods trade-in policy. As a result, market sales have grown rapidly, service consumption potential has been unleashed, and these efforts have effectively supported the stable economic performance.

Under the combined effects of the May Day and Dragon Boat Festival holidays, the "6.18" E-commerce Shopping Festival, and the consumer goods trade-in policy, the total retail sales of consumer goods in May increased by 6.4% year on year, accelerating by 1.3 percentage points from the previous month. From January to May, the retail sales of services increased by 5.2%, accelerating by 0.1 percentage point from January to April. The acceleration of consumption growth has been mainly supported by the following factors:

First, the consumer goods trade-in policy has shown a significant driving effect. The effectiveness of the trade-in policy continues to be evident, unleashing residents' consumption potential, and promoting the rapid growth of sales of related goods. In May, the retail sales of household appliances and audiovisual equipment, communication equipment, cultural and office supplies, and furniture by enterprises above designated size increased by 53%, 33%, 30.5% and 25.6% year on year, respectively, collectively driving the total retail sales of consumer goods to rise by 1.9 percentage points, an increase of 0.5 percentage point from the previous month.

Second, the "6·18" E-commerce Shopping Festival provided significant momentum. This year's "6·18" E-commerce Shopping Festival, launched on May 13 by e-commerce platforms, combined with the goods trade-in policy, has driven the acceleration of online retail sales. From January to May, the online retail sales of physical goods increased by 6.3% year on year, accelerating by 0.5 percentage point compared with January to April, accounting for 24.5% of the total retail sales of consumer goods.

Third, holiday consumption showed good performance. During the May Day and Dragon Boat Festival holidays, there was a significant increase in travel by residents, with domestic tourism trips increasing by 6.4% year on year. Regions actively explored new models of cultural and tourism consumption, with diversified supply injecting new momentum into expanding consumption, leading to rapid growth in spending on cultural and tourism leisure, transportation services and dining-out. In May, catering revenue increased by 5.9% year on year, up 0.7 percentage point from the previous month. From January to May, the retail sales of tourism consulting and rental services, transportation services, and cultural and sports services all maintained double-digit growth.

Fourth, new growth drivers for consumption are continuously being unleashed. Market supply continues to diversify, the consumption environment is gradually improving, and residents' demand for high-quality living is increasing, driving the rapid growth of related goods and services sales. In May, the retail sales of sports and entertainment goods and gold and silver jewelry by enterprises above designated size increased by 28.3% and 21.8% year on year, respectively, maintaining double-digit growth. The rapid development of network technology has driven the expansion of residents' demands for communication services. From January to May, the retail sales of communication information services increased by more than 10%, accelerating by 0.5 percentage point compared with the January-April period.

It should also be noted that, since the beginning of this year, China has gradually expanded the range of countries that qualify for visa-free entry, promoting personnel exchanges and invigorating the consumer market. During the May Day holiday, the number of inbound foreign nationals entering under the visa-free policy increased by more than 70% year on year. Data from travel platforms shows that the volume of inbound tourism orders has multiplied, and the number and amount of payment transactions processed by China UnionPay and NetsUnion for overseas visitors in China have increased by 2.4 times and 1.3 times, respectively.

Overall, the economy has remained stable, the effects of consumer goods trade-in policies have continued to emerge, and the vitality of the consumer market has gradually increased. Looking ahead, new forms and models of consumer spending — such as livestreaming sales and instant retail — are becoming increasingly mature. The silver economy, first-release economy and low-altitude economy are developing rapidly, with new growth drivers in consumer spending continuing to emerge. However, it should also be noted that consumer capacity and confidence still need to be improved, and the internal momentum driving consumption must be further strengthened. Moving forward, we will further implement the Special Action Plan to Boost Consumption, with a focus on enhancing consumer capacity and confidence. We will continue to improve the consumption environment, significantly increase the supply of high-quality products, actively promote the upgrading and expansion of service consumption, and support the steady development of the consumer market. Thank you.

21st Century Business Herald:

How did industrial enterprises above designated size perform in May? What were the main characteristics? How do you evaluate the future development trend of China's industrial production? Thank you.

Fu Linghui:

Thank you for your questions. Driven by the effective implementation of macroeconomic policies and industrial upgrading, the valueadded output of industrial enterprises above designated size increased 5.8% year on year in May. Industrial production maintained steady and rapid growth, demonstrating strong resilience and growth potential. The steady advancement of high-end, intelligent and green industrial development has fueled high-quality economic growth.

First, the industrial sector's move toward high-end development has progressed steadily. In recent years, as companies have strengthened their technological capabilities and financial resources, there has been a clear shift in industrial production toward medium- and high-end, technology- and capital-intensive sectors. In May, the value-added output of equipment manufacturing and high-tech manufacturing enterprises above designated size increased 9% and 8.6% year on year, respectively, both continuing to grow faster than the overall industrial sector above designated size. By industry, key equipment manufacturing industries grew rapidly in May, with the value added by automobile manufacturing up 11.6% and by computers, communication and other electronic equipment manufacturing up 10.2%. By product, high-tech product output grew rapidly in May, with 3D printing equipment production up 40% and integrated circuits up 11.5%.

Second, the development of industrial intelligence has accelerated. The integration and penetration of the digital economy have continued to increase, further strengthening its role in driving industrial production. In May, the value added by the digital product manufacturing industry grew 9.1%, significantly outpacing the growth rate of all industrial enterprises above designated size. The integration of technological innovation and industrial innovation is accelerating, and demand for intelligent products is expanding significantly, driving rapid growth in production. In May, the value added by intelligent unmanned aerial vehicle manufacturing rose 85.9%, while in-vehicle smart device manufacturing increased 29.5%. The output of robot reducers doubled, while the output of industrial robots increased 35.5%.

Third, green industrial production has made significant progress. With the green transformation of the economy and society, demand for new energy products and green materials has continued to grow. Coupled with improved innovation capabilities among enterprises, the supply of green products is also expanding. In May, the output of NEVs and automotive lithium-ion power batteries rose 31.7% and 52.5%, respectively, while the supply of new green materials also increased. The output of high-performance chemical fibers, bio-based chemical fibers, and carbon fibers and their composite materials climbed 92.2%, 21.5% and 17.9%, respectively.

Fourth, business revenue expectations have improved. Since the beginning of this year, the economy has remained generally stable, creating favorable conditions for enterprises to improve their business performance. From January to April, the profits of industrial enterprises above designated size increased 1.4% year on year, while the profits of manufacturing enterprises increased 8.6%. As the effects of macroeconomic policies have become apparent, business expectations for production and operations have improved. In May, the manufacturing PMI rose 0.5 percentage point from the previous month. Among them, the production index was 50.7%, up 0.9 percentage point from the previous month, while the production and business expectations index reached 52.5%, up 0.4 percentage point.

Overall, industrial production grew steadily in May, with new growth drivers continuing to emerge and demonstrating strong momentum. However, it should also be noted that the external environment is complex and severe, and industrial product prices are at a low level. The industry still faces pressure to maintain steady growth. Looking ahead, we will implement various policies to support industrial development, actively expand domestic demand, vigorously cultivate new quality productive forces, and optimize and adjust the industrial structure. We will also advance the transformation and upgrading of traditional industries to promote the sustainable and healthy development of industry. Thank you.

Dingduan News:

In the first five months, the total value of goods imports and exports increased 2.5% year on year, with exports in May up 6.3%. Given weak global demand and tariff hikes by some countries, what are the sources of resilience in China's exports? How do you view the outlook for foreign trade in the near future?

Fu Linghui:

Thank you for your questions. China's foreign trade continued to withstand pressure in May and achieved steady growth. China's total goods imports and exports increased 2.7%, with exports climbing 6.3%, maintaining steady and rapid growth. According to data from market institutions, the global manufacturing PMI new export orders index remained below the threshold indicating expansion in May, marking the second consecutive month in contraction territory. Trade protectionism and rising uncertainty are having an increasingly negative impact on global trade growth. Against this background, the growth of China's goods trade reflects the strong international competitiveness and resilience of the country's foreign trade sector.

Looking at our trading partners, trade with the U.S. fell, while trade with ASEAN, the EU and Belt and Road partner countries grew, reflecting China's progress in diversifying its foreign trade. In the first five months of this year, trade with ASEAN, the EU, and Belt and Road partner countries rose 9.1%, 2.9% and 4.2%, respectively. From the perspective of business entities, China's private enterprises have demonstrated strong market adaptability and flexibility in responding to external fluctuations. They have greatly expanded markets and advanced development, providing solid support for foreign trade growth. From January to May, imports and exports by private enterprises rose 7% year on year, with exports up 8% and imports up 4.9%, outpacing the national average.

In terms of exports, China's ongoing industrial upgrades have boosted the technological sophistication of its products and strengthened its international competitiveness. Exports of electromechanical products remain a key driver of growth, while high-end goods such as integrated circuits have also posted rapid increases. From January to May, exports of electromechanical products grew 9.3% year on year, including an 18.9% increase in integrated circuit exports. The competitive edge of high-tech products remains strong, with exports in this category rising 7.4% in the same period.

Despite a complex and challenging international environment, with rising unilateralism and protectionism severely disrupting global trade, China's foreign trade has continued to grow steadily. This resilience is attributed to China's ongoing commitment to opening up, efforts to diversify foreign trade, advances in high-end, intelligent and green industrial development, continued product upgrades and greater market competitiveness. Government support measures, including improved trade facilitation, have also helped create favorable conditions for foreign trade. Looking ahead, external uncertainties and instabilities may put pressure on growth, but China still holds significant advantages in foreign trade. Continued high-level opening up, based on mutual benefit and win-win cooperation, will remain a key driver of steady growth in the sector. Thank you.

Zhou Jianshe:

Due to time constraints, we'll take one final question.

Jinan Times APP:

Based on the data, how would you assess the real estate sector in May? What's your outlook for the real estate market moving forward? Thank you.

Fu Linghui:

In the fourth quarter of last year, local governments and relevant departments carried out central directives to stabilize the real estate market, introducing a range of city-specific policies that produced positive results. Since the beginning of this year, as stabilization measures have gained momentum, the market has continued to recover. In May, the real estate sector's overall performance remained stable. Year-on-year declines in home prices across 70 large and medium-sized cities continued to narrow, and inventories of commercial housing continued to fall.

In terms of transactions, real estate sales remained steady, supported by stabilizing policies. From January to May, the floor area and total sales of newly built commercial housing fell 2.9% and 3.8% year on year, respectively, remaining largely unchanged from the January-April period. The market was relatively active in some first- and second-tier cities, with both floor area and sales value increasing. On the pricing front, the year-on-year decline in prices for newly built commercial residential units continued to narrow. In May, among the 70 large and medium-sized cities, most saw the year-on-year decline in the sales prices of commercial residential buildings narrow. Specifically, the year-on-year decline in sales prices for new commercial housing narrowed by 0.4 percentage point in both first-tier and second-tier cities and 0.5 percentage point in third-tier cities. For secondhand homes, the year-on-year decrease narrowed by 0.5, 0.4 and 0.5 percentage point, respectively. Regarding commercial housing inventory, at the end of May, the total floor area of commercial housing for sale decreased by 7.15 million square meters compared with the end of April, marking the third consecutive month of decline.

Overall, policies to halt the market downturn and restore stability have continued to deliver results, and the real estate sector remained largely stable in May. However, it should also be noted that the real estate market is still adjusting, market confidence is still recovering, supply and demand dynamics need further improvement, and continued efforts are required to reinforce stabilization. Looking ahead, it is necessary to fully implement the decisions of the CPC Central Committee and the State Council and proactively respond to significant shifts in supply-demand dynamics. We must continue to promote urban renewal and the renovation of dilapidated housing, increase the supply of high-quality homes, better meet both basic and improved housing needs, and actively foster a new development model for the real estate sector. These actions will support the sector's stable and healthy growth. Thank you.

Zhou Jianshe:

Thank you, Mr. Fu. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Chen Xinyan, Mi Xingang, Liu Sitong, Liu Ziying, Zhang Tingting, Xu Kailin, Yan Xiaoqing, Yan Bin, Wang Xingguang, Cui Can, Wang Yiming, Li Huiru, Zhang Junmian, Zhou Jing, Zhang Rui, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

May 19, 2025

Zhou Jianshe:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we are joined by Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS. Mr. Fu will brief you on China's economic performance in April 2025 and then take your questions.

First, I will give the floor to Mr. Fu for his introduction.

Fu Linghui:

Good morning, everyone. As usual, I will start by briefing you on the main economic indicators for this April and then take your questions.

In April, the national economy withstood pressure and maintained stable growth.

In April, in the face of a complicated situation marked by increasing external shocks and multiple domestic difficulties and challenges, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to create a new pattern of development, took solid steps to promote high-quality development, stepped up the implementation of more proactive and effective macro policies, and responded to the external shocks effectively. As a result, production and demand grew steadily, employment was generally stable, and new growth drivers accumulated and grew. The national economy maintained stable growth despite pressure, sustaining the new and positive development momentum.

Fu Linghui:

First, industrial production grew quickly, with equipment manufacturing and high-tech manufacturing showing good growth momentum.

In April, the total value added of industrial enterprises above designated size grew by 6.1% year on year, or 0.22% month on month. In terms of sectors, the value added of mining went up by 5.7% year on year, manufacturing up by 6.6%, and the production and supply of electricity, thermal power, gas and water up by 2.1%. The value added of equipment manufacturing increased by 9.8% year on year, and that of high-tech manufacturing increased by 10.0%, which were 3.7 percentage points and 3.9 percentage points faster than that of industrial enterprises above designated size, respectively. In terms of ownership, the value added of state holding enterprises was up by 2.9% year on year; that of share-holding enterprises was up by 6.6%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 3.9%; and that of private enterprises was up by 6.7%. In terms of products, the outputs of 3D printing devices, industrial robots and new energy vehicles (NEVs) grew by 60.7%, 51.5% and 38.9% year on year, respectively. In the first four months, the total value added of industrial enterprises above designated size went up by 6.4% year on year. In April, the Manufacturing Purchasing Managers' Index was 49.0%; and the Production and Operation Expectation Index was 52.1%. In the first three months, the total profits made by industrial enterprises above designated size were 1,509.4 billion yuan, up by 0.8% year on year.

Second, the service sector grew steadily and modern services developed well.

In April, the Index of Services Production grew by 6.0% year on year. In terms of sectors, that of information transmission, software and information technology services, leasing and business services, wholesales and retails, and finance grew by 10.4%, 8.9%, 6.8% and 6.1% year on year, respectively, which were 4.4 percentage points, 2.9 percentage points, 0.8 percentage point and 0.1 percentage point faster than that of the Index of Services Production. In the first four months, the Index of Services Production increased by 5.9% year on year. In the first three months, the business revenue of service enterprises above designated size went up by 7.0% year on year. In April, the Business Activity Index for Services was 50.1%, and the Business Activity Expectation Index for Services was 56.4%. Specifically, the Business Activity Index for industries like air transportation, telecommunication, broadcast, television and satellite transmission services, internet software and information technology services, and insurance stayed within the high expansion range of 55.0% and above.

Third, market sales maintained steady growth and trade-in goods grew quickly.

In April, the total retail sales of consumer goods reached 3,717.4 billion yuan, up by 5.1% year on year, or up by 0.24% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3,237.6 billion yuan, up by 5.2% year on year; and that in rural areas reached 479.8 billion yuan, up by 4.7%. Grouped by consumption patterns, the retail sales of goods were 3,300.7 billion yuan, up by 5.1%; and the income of catering was 416.7 billion yuan, up by 5.2%. Sales of basic living goods and certain upgraded goods showed sound growth. The retail sales of grain, oil and food and of sports and recreational articles by enterprises above designated size went up by 14.0% and 23.3%, respectively. The effect of trade-in of consumer goods continued to manifest, with the retail sales of household appliances and audiovisual equipment, cultural and office supplies, furniture, and communication equipment by enterprises above designated size growing by 38.8%, 33.5%, 26.9% and 19.9%, respectively. In the first four months, the total retail sales of consumer goods reached 16,184.5 billion yuan, up by 4.7% year on year. Online retail sales reached 4,741.9 billion yuan, up by 7.7% year on year. Specifically, the online retail sales of physical goods were 3,926.5 billion yuan, up by 5.8%, accounting for 24.3% of the total retail sales of consumer goods. In the first four months, the retail sales of services grew by 5.1% year on year.

Fourth, investment in fixed assets continued to expand and investment in manufacturing grew quickly.

In the first four months, investment in fixed assets (excluding rural households) reached 14,702.4 billion yuan, up by 4.0% year on year; and investment in fixed assets was up by 8.0% with the investment in real estate development deducted. Specifically, investment in infrastructure grew by 5.8% year on year, that in manufacturing grew by 8.8%, and that in real estate development declined by 10.3%. The floor space of newly-built commercial buildings sold was 282.62 million square meters, down by 2.8% year on year; and the total sales of newly-built commercial buildings were 2,703.5 billion yuan, down by 3.2%. By industry, investment in the primary industry increased by 13.2% year on year, that in the secondary industry up by 11.7%, and that in the tertiary industry down by 0.2%. Private investment increased by 0.2% year on year, or increased by 5.8% with the investment in real estate development deducted. In terms of high-tech industries, investment in information services, computer and office device manufacturing, aerospace vehicle and equipment manufacturing, and professional technical services grew by 40.6%, 28.9%, 23.9% and 17.6%, respectively. In April, investment in fixed assets (excluding rural households) increased by 0.10% month on month.

Fifth, imports and exports of goods kept growing and the trade structure continued to be optimized.

In April, the total value of imports and exports of goods was 3.84 trillion yuan, a year-on-year increase of 5.6%. Specifically, the total value of exports was 2.26 trillion yuan, up by 9.3%. The total value of imports was 1.57 trillion yuan, up by 0.8%. In the first four months, the total value of imports and exports of goods was 14.13 trillion yuan, a year-on-year increase of 2.4%. Specifically, the total value of exports was 8.39 trillion yuan, up by 7.5%. The total value of imports was 5.74 trillion yuan, down by 4.2%. In the first four months, the imports and exports of general trade went up by 0.6%, accounting for 64% of the total value of imports and exports. Imports and exports by private enterprises went up by 6.8%, accounting for 56.9% of the total value of imports and exports, which is 2.3 percentage points higher than that of the same period last year. The exports of mechanical and electrical products grew by 9.5%, accounting for 60.1% of the total value of exports.

Sixth, employment was generally stable and the surveyed urban unemployment rate declined.

From January to April, the average surveyed unemployment rate in urban areas remained flat year on year at 5.2%. In April, the national surveyed urban unemployment rate was 5.1%, 0.1 percentage point lower than that of the previous month. The surveyed unemployment rate of population with local household registration was 5.2% and that of population with non-local household registration was 4.8%, of which the rate of population with non-local agricultural household registration was 4.7%. The surveyed urban unemployment rate across 31 major cities was 5.1%, 0.1 percentage point lower than that of the previous month. Employees of enterprises nationwide worked an average of 48.3 hours per week.

Seventh, the consumer price index (CPI) fell slightly year on year, and the core CPI growth rate was stable.

In April, the CPI decreased by 0.1% year on year, and increased by 0.1% compared to the previous month. By category, prices for food, tobacco and alcohol went up by 0.3%; clothing up by 1.3%; housing up by 0.1%; household goods and services for daily use up by 0.2%; transportation and communication prices down by 3.9%; education, culture and recreation up by 0.7%; medical services and health care up by 0.2%; and other articles and services up by 6.6%. In terms of food, tobacco and alcohol, prices for fresh vegetables fell by 5%, grain fell by 1.4%, pork up by 5%, and fresh fruits up by 5.2%. The core CPI, excluding the prices of food and energy, grew by 0.5% year on year. In the first four months, the CPI went down by 0.1% year on year.

In April, the national producer price index (PPI) for industrial products went down by 2.7% year on year and 0.4% month on month. The purchasing price index for industrial producers went down by 2.7% year on year and 0.6% month on month. In the first four months, the national producer price and purchasing price indexes for industrial products both dropped by 2.4% compared with the same period last year.

Overall, in April, despite increased external pressures, the coordinated efforts of macro policies ensured steady and relatively rapid growth in major indicators, sustaining the upward and improving trend of the national economy. It should also be noted that external instabilities and uncertainties still remain significant, and the foundation for the continuous improvement of the national economy needs to be further consolidated. In the next stage, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, and adhere to the general principle of seeking progress while maintaining stability. We must fully and accurately implement the new development philosophy, accelerate the construction of a new development paradigm, coordinate domestic economic work and international economic and trade efforts, unswervingly handle our own affairs well, unswervingly expand high-level opening up, focus on stabilizing employment, enterprises, markets and expectations, solidly promote high-quality development, and promote the continuous recovery and improvement of the economy. Thank you.

Zhou Jianshe:

The floor is now open for questions. Please identify your media outlet before raising your questions.

Jinan Times APP:

Has the macro policy package adopted in the first quarter begun to stimulate economic growth in April? How would you assess the overall economic performance in April? Thank you.

Fu Linghui:

Thank you for your questions. There has been considerable interest in April's economic performance. Overall, in April, the international environment became more complex and severe, external shocks increased, and the difficulty of sustaining a stable economic operation increased. Facing the rapidly changing and complex situation, under the strong leadership of the CPC Central Committee, all regions and departments conscientiously implemented the decisions and deployments of the CPC Central Committee and the State Council, accelerated the implementation of more proactive and effective macro policies, strengthened the domestic cycle, and effectively responded to external shocks. As a result, the economy withstood pressure and maintained stable growth, continuing the trend of improvement. When I was reporting the main indicators of economic performance for April, everyone could understand this situation, which fully demonstrates the strong resilience and resistance of our economy. Based on key economic indicators, the following features can be observed:

First, production supply grew relatively quickly. In terms of industry, the combined effect of macro policies continued to release, and industry maintained relatively fast growth. In April, the value-added of industrial enterprises above the designated size increased by 6.1% year on year, which is relatively fast in terms of monthly growth rate since last year. Driven by intensified and expanded "two new" policies and industrial upgrading, the equipment manufacturing industry continued to grow rapidly, with its value-added increasing by 9.8% year on year in April. Its contribution rate to the growth of industries above designated size reached 55.9%. In terms of the service industry, under the influence of policies to expand domestic demand, it maintained a stable growth. In April, the service industry production index increased by 6% year on year, marking the second-highest monthly growth rate so far this year. The ongoing digital transformation, coupled with increased travel and transportation activities, has contributed to steady growth in information services, business services and related sectors. In April, the production indexes of information transmission software and IT services and leasing and business services increased by 10.4% and 8.9%, respectively, both significantly faster than the growth of the entire service industry.

Second, domestic demand expanded steadily. In terms of consumption, the policy to promote trade-in of consumer goods continued to show results, and market sales maintained steady growth. In April, total retail sales of consumer goods rose by 5.1% year on year. Sales of goods under the trade-in policy grew significantly, playing a notable role in supporting overall retail growth. Fueled by holiday and spring consumption, service-related retail sales maintained steady expansion. In the first four months, the retail sales of services grew by 5.1% year on year. In terms of investment, the effects of the policies related to major national strategies and the enhancement of security capacity in key areas ("two major initiatives") and large-scale equipment renewals and trade-in of consumer goods ("two new initiatives") have continued to emerge, with the scale of investment steadily expanding. From January to April, fixed-asset investment rose by 4% year on year. Driven by large-scale equipment renewals, investment in the purchase of equipment grew by 18.2% year on year from January to April, contributing 64.5% to the overall growth in investment.

Third, foreign trade demonstrated resilience. Despite rapidly changing international conditions and mounting external shocks, China stepped up efforts to diversify its foreign trade, actively expanded trade with countries participating in the Belt and Road Initiative (BRI), and sustained steady growth in foreign trade, demonstrating strong resilience. From January to April, the total value of imports and exports of goods increased by 2.4% year on year, 1.1 percentage points higher than in the first quarter. Trade with BRI partner countries rose by 3.9%, up by 1.7 percentage points from the first quarter. Exports of electromechanical products maintained robust growth, increasing by 9.5% year on year in the first four months.

Fourth, the employment situation remained stable overall. China's stable economic growth and the expansion of new growth drivers, coupled with strengthened policies to support employment and entrepreneurship among key groups, contributed to overall employment stability. In April, the surveyed urban unemployment rate stood at 5.1%, down 0.1 percentage point from the previous month, marking the second consecutive month of decline. From January to April, the average surveyed urban unemployment rate was 5.2%, unchanged from the same period last year.

Fifth, new quality productive forces continued to grow. Support for innovation continued to increase, and high-tech industries maintained rapid growth. In April, the value added of high-tech manufacturing enterprises above designated size grew by 10% year on year. Specifically, the value added of aerospace equipment manufacturing and integrated circuit manufacturing rose by 21.4% and 21.3%, respectively. The driving role of "AI Plus" was further strengthened, and the digital industry thrived. The value added of large-scale digital product manufacturing rose by 10% in April. The green and low-carbon transition advanced steadily, and the new energy industry grew rapidly. In April, the output of new energy vehicles (NEVs) and charging piles increased by 38.9% and 43.1%, respectively.

Overall, in April, despite mounting external shocks, China's economy remained stable thanks to its solid foundation, multiple strengths, strong resilience and huge potential. With well-coordinated macro policies and proactive responses across all sectors, the national economy withstood challenges and operated steadily, while the quality of development continued to improve. This further strengthened our confidence and capacity to tackle various risks and challenges. That being said, we must also recognize that the international environment remains highly uncertain, with multiple overlapping risks, and the foundation for the domestic economic recovery still needs to be consolidated. In the next stage, we must thoroughly implement the decisions and plans of the CPC Central Committee and the State Council, adopt more proactive and effective macro policies, and focus on stabilizing employment, enterprises, markets and expectations. We will work solidly to promote high-quality development, strengthen the domestic economic circulation, and drive sustained and sound economic growth. Thank you.

CCTV:

The consumption data for April has attracted widespread attention. Could you tell us whether the overall recovery trend in the consumer market has continued? In terms of the consumption structure, which areas have seen notable growth? And which areas have room for improvement? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the international environment has been complex and severe, external challenges have increased, and some blockages and sticking points remain in the domestic economic cycle. Vigorously boosting consumption is conducive to effectively responding to external challenges, smoothing the domestic economic cycle, promoting economic improvement, enhancing people's livelihoods and increasing development vitality. All regions and departments have implemented the decisions and deployments of the CPC Central Committee, intensified and expanded the implementation of the "two new" policies, carried out special actions to boost consumption, driven market sales expansion, promoted service consumption growth, and strongly supported economic recovery and improvement. In terms of the situation in April, the policy effects continued to be revealed, the consumer market has grown steadily, and new consumption momentum has developed and grown. The main features are as follows:

First, market sales steadily rebounded. Overall, the total retail sales of social consumer goods mainly based on commodity sales and the retail sales of services represented by service consumption both showed a trend of recovery. From January to April, the total retail sales of consumer goods increased by 4.7% year on year, 0.1 percentage point faster than in the first quarter. Service retail sales grew by 5.1% year on year, also accelerating by 0.1 percentage point compared with the first quarter, marking two consecutive months of acceleration.

Second, sales of goods related to the trade-in of consumer products saw significant growth. As the trade-in program for consumer products was expanded and intensified, it played a notable role in boosting the sales of related goods. In April, retail sales by units above designated size of household appliances and audio-visual equipment, cultural and office supplies, furniture, and communication equipment increased by 38.8%, 33.5%, 26.9% and 19.9% year on year, respectively. These growth rates were significantly higher than the overall growth of commodity retail sales and strongly supported the expansion of market sales.

Third, retail sales of certain essential and upgraded goods grew relatively quickly. The rising demand for higher-quality consumption among residents also contributed to the increased sales of related goods. In April, retail sales by units above designated size of grain, oil and food, sports and entertainment goods, and gold, silver and jewelry rose by 14%, 23.3% and 25.3% year on year, respectively.

Fourth, the consumption of tourism and travel-related services grew rapidly. Driven by strong travel demand during holidays, residents' consumption of tourism, travel and communication services has grown rapidly. From January to April, the retail sales of transportation services, communication and information services, and travel, consulting and rental services all maintained double-digit growth.

Fifth, the new drivers of consumption demonstrated a sound growth momentum. With the rapid development of information technology and the continuous improvement of the logistics distribution system, new forms of efficient and convenient business such as online retail and instant retail have proven popular with consumers. From January to April, the online retail sales of physical goods increased by 5.8% year on year, continuing to surpass the growth rate of total retail sales of consumer goods.

Overall, since the beginning of this year, policies have continued to take effect and market sales have continued to recover, but the internal driving force of consumption still needs to be further strengthened. In the next stage, we will implement special actions to boost consumption, continue to enhance residents' consumption capacity, increase high-quality supply, improve the consumption environment and better release consumption potential to promote healthy economic development and the continuous improvement of people's livelihoods. Thank you.

Bloomberg:

We're wondering, what is the expected impact of the China-U.S. agreement reached in Geneva on China's economic performance? And if tariffs remain at the current levels, what are your expectations for export growth, employment and domestic prices this year? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the international environment has undergone complex changes. The United States has taken a series of unilateral measures to impose high tariffs on China, severely impacting China-U.S. economic and trade relations. In response, China has taken resolute and strong countermeasures. From May 10-11, China and the United States held a high-level meeting on economic and trade affairs in Geneva, Switzerland, where both sides agreed to significantly reduce tariffs. In this context, there is considerable public interest in the trend and prospects of the Chinese economy.

Looking forward to the next stage, the international environment remains complex and challenging, with many unstable, uncertain and unpredictable factors. Domestic cyclical and structural contradictions are intertwined. However, the fundamentals sustaining China's sound economic growth have not changed. Various macro policies are making concerted efforts. All parties are focused on tackling challenges and actively responding to changes, and the driving force for innovation continues to grow. There are many favorable conditions for the continued recovery of the economy.

First, there is a foundation for recovery. Although the impact of external shocks increased in April, the trend of economic recovery has not changed. According to the major indicators, market sales and the service industry, which are closely linked to the domestic market, continued to rise steadily. From January to April, the total retail sales of consumer goods and the index of services production increased by 4.7% and 5.9%, respectively, both 0.1 percentage point higher than in the first quarter. The exports of goods and industrial production, which are more affected by the international market, remained generally stable. From January to April, exports increased by 7.5%, 0.6 percentage point higher than that in the first quarter; and the added value of industrial enterprises above designated size increased by 6.4%, maintaining overall stability.

Second, there is policy support. Since the beginning of this year, we have implemented more proactive and effective macro policies and increased policy support for the implementation of major national strategies and the building up of security capacity in key areas as well as the promotion of large-scale equipment upgrades and trade-in programs for consumer goods, expanding market demand, driving enterprise production, supporting innovative development and boosting market confidence, with the effects continuing to show. From January to April, the growth rates of major production and demand indicators were significantly faster than the whole of last year. Driven by large-scale equipment renewals, investment in the purchase of equipment increased by 18.2% year on year from January to April, contributing 64.5% to the total investment growth. Recently, relevant departments further cut the reserve requirement ratio (RRR) and interest rates, and established new policy-based financial instruments to support technological innovation and expand consumption. As various policies of the Party Central Committee and the State Council are gradually implemented, it will be conducive to the sustained recovery and improvement of the economy.

Third, there is consumption potential. All regions and departments have conscientiously implemented the decisions and plans of the Party Central Committee, vigorously carried out special actions to boost consumption, intensified and expanded the implementation of the policies of large-scale equipment renewal and consumer goods trade-ins, created diversified consumption scenarios, and actively expanded service consumption, with the effects continuing to emerge. In April, the retail sales of household appliances and audio-visual equipment, cultural and office supplies, furniture, communication equipment, and building and decoration materials related to the trade-in of consumer goods contributed 1.4 percentage points to the growth of total retail sales of consumer goods. From January to April, the retail sales of services increased by 5.1%, rising for two consecutive months. During the May Day holiday, the number of domestic tourists increased by 6.4% year on year. As the policies continue to take effect and consumption momentum continues to grow, the role of consumption in stimulating economic growth is expected to continue to strengthen.

Fourth, there is innovation momentum. All parties have actively promoted the in-depth integration of technological innovation and industrial innovation, promoted the transformation of technological creativity into social productive forces, and continued to reinforce the leading role of innovation, continuously injecting new momentum into economic development. The high-tech industries and emerging service industries have shown sound growth momentum. In April, the value added of high-tech manufacturing enterprises above designated size rose 10% year on year, 3.9 percentage points higher than that of all industrial enterprises above designated size. From January to March, the operating revenue of strategic emerging service enterprises above designated size increased by 8.3% year on year, maintaining rapid growth. The intelligent and green transformations of industries are accelerating, with the added value of the intelligent unmanned aerial vehicle manufacturing industry increasing by 74.2% in April, and the production of new energy vehicles (NEVs) increasing by 38.9%. Breakthroughs have been made in cutting-edge technology fields such as large AI models and humanoid robots, which will further promote industrial upgrading and development.

Overall, supported by multiple favorable factors, China's economy is expected to maintain overall stable performance and steady growth. Thank you.

ThePaper.cn:

Given that investment is an important part of expanding domestic demand, and you've just highlighted the sustained growth in fixed-asset investment, I would like to ask: what are the characteristics of fixed-asset investment currently? And how do you assess China's scope and potential for future investment? Thank you.

Fu Linghui:

Thank you for your questions. Investment is an important component of domestic demand. Since the beginning of this year, all regions and departments have thoroughly implemented the decisions and arrangements of the Party Central Committee and the State Council, actively promoted large-scale equipment renewals and the trade-in of consumer goods, and actively expanded effective investment. Overall, the effects of promoting investment continue to emerge, and have the following main characteristics:

First, investment has maintained overall stable growth. As the policies of implementing major national strategies and building up security capacity in key areas, as well as the policies of large-scale equipment upgrades and consumer goods trade-ins, continue to take effect, investment potential is continuously being stimulated, and investment in fixed assets remains stable. From January to April, investment in fixed assets grew by 4%. Driven by large-scale equipment renewal, investment in the purchase of equipment grew by 18.2% from January to April, contributing 64.5% to the growth of total investment.

Second, manufacturing investment grew rapidly. As China's industrial structure optimizes to meet mid-to-high end market demands, traditional industries are being transformed and upgraded, and emerging industries are developing rapidly, driving faster growth in manufacturing investment. In the first four months, investment in manufacturing increased by 8.8% year on year, significantly faster than the overall investment growth. Driven by industrial upgrading and development, investment in consumer goods production and equipment manufacturing showed good growth momentum. From January to April, investment in consumer goods production and equipment manufacturing increased by 13.4% and 8.2%, respectively.

Third, investment in high-tech services showed good growth momentum. The accelerated integration of technological innovation and industrial innovation has expanded demand for high-tech services, driving investment growth in related industries. From January to April, investment in high-tech services grew by 11.3% year on year, with investment in professional technical services and information services growing by 17.6% and 40.6%, respectively.

Fourth, infrastructure investment grew steadily. With the accelerated issuance and use of special local government bonds, the driving effect of government investment continued to emerge, and infrastructure investment maintained steady growth. From January to April, infrastructure investment grew by 5.8% year on year, faster than the growth of total investment. Specifically, investment in water conservancy management grew by 30.7%, and investment in water transportation grew by 26.9%.

Since the beginning of this year, the economy has been generally stable, and the policies that support major national strategies and enhance security capabilities in key areas as well as promote consumer goods trade-ins and large-scale equipment renewals have been paying dividends. Industrial upgrading and development have made positive progress, offering a solid foundation for expansion of effective investment. Looking forward, China's investment potential is still huge, and there are still many favorable factors supporting investment growth. First, there is ample space for industrial upgrading and development. The new generation of information technology industry is booming, and emerging industries represented by high-end equipment and artificial intelligence (AI) are developing well, with increasing investment in innovation. Second, major regional strategies are guiding and driving development. Since the 18th CPC National Congress, the implementation of a series of major regional strategies have been accelerated. The coordinated development of urban and rural areas and new urbanization present huge investment potential. Third, there is still significant demand for investment in social development and livelihood improvement. Investment in livelihood improvement has been increasing, but there is still a gap compared with the needs of the people. At present, China attaches great importance to ensuring and improving people's livelihoods, continuously increasing investment in the social and livelihood fields, which is also conducive to sustained growth of investment.

However, it should also be noted that the internal driving force for investment growth is clearly insufficient. Therefore, it is necessary to implement the spirit of the Central Economic Work Conference and the "two sessions," by focusing on improving investment efficiency and continuously optimizing the investment structure. Increased investment will be leveraged to help expand demand and optimize supplies and thereby boost healthy and sustained economic development. Thank you.

Market News International:

Given the recent agreement between China and the U.S. in Geneva to reduce tariffs at a significant pace, do you expect a surge in exports to the U.S. over the next few months? And what is your outlook for trade performance for the rest of the year? Thank you.

Fu Linghui:

Thank you for your questions. China-U.S. trade and its impact on overall foreign trade are of great concern to everyone. In April, the external environment changed dramatically, increasing pressure on foreign trade. However, China's foreign trade overcame difficulties and maintained steady growth, demonstrating strong resilience and international competitiveness. From January to April, the total value of China's imports and exports of goods increased by 2.4%, accelerating by 1.1 percentage points compared to the first three months. In April, the total value of China's imports and exports of goods increased by 5.6%, with exports growing by 9.3%, maintaining rapid growth.

Specifically, foreign trade exhibited several features. First, the growth of imports and exports with ASEAN and Belt and Road partner countries accelerated. In April, despite a decline in trade with the U.S., overall foreign trade diversified, and accelerated imports and exports with ASEAN and Belt and Road partner countries strongly supported the continued growth of foreign trade. From January to April, the total value of imports and exports between China and ASEAN increased by 9.2% year on year, accelerating by 2.1 percentage points compared to the first three months; and China's imports and exports with Belt and Road partner countries increased by 3.9%, accelerating by 1.7 percentage points. Second, the growth of imports and exports by private foreign trade enterprises accelerated. In the face of external shocks, these enterprises actively responded and effectively coped through market diversification strategies, achieving clear results. From January to April, the imports and exports of private enterprises increased by 6.8% year on year, accelerating by 1 percentage point compared with the first three months, better than the overall foreign trade situation. Third, the export of mechanical and electrical products grew robustly. With the upgrading and development of China's industries, the competitiveness of technologically advanced mechanical and electrical products continuously enhanced, becoming an important growth point for exports. From January to April, the export value of China's mechanical and electrical products increased by 9.5% year on year, higher than in the first three months.

In the context of increased external shocks, China's foreign trade withstood pressure and continued to grow. First, this fact reflects the firm support provided by a solid industrial foundation. China has a complete industrial system. In particular, the manufacturing industry is being upgraded, occupying an important position in the global industrial chain, and gaining strong advantages in international competition. Second, it reflects the ability of the foreign trade industry to quickly adjust and respond. China has been steadily diversifying foreign trade, the ability of foreign trade enterprises to expand markets has been increasing, and these enterprises have shown strong ability to adapt to changes prompted by trade frictions and supply chain disruptions. Third, this resilience also reveals the supportive role of various policies to stabilize foreign trade. In the face of external shocks, various regions and departments have strengthened support for foreign trade enterprises and stepped up export tax rebates, financial support, trade facilitation and other policies, creating a policy environment for enabling the development of foreign trade.

In the next stage, the substantial reduction of tariffs between China and the U.S. will be conducive to the growth of bilateral trade and the recovery of the world economy. At present, the international environment is still complex and severe, and unilateralism and protectionism are on the rise, which has seriously impacted the international economic and trade order and restricted global economic growth. However, the trend of international cooperation for mutual benefit will not change, nor will China's firm commitment to expanding its opening up to the outside world. The diversification of foreign trade is steadily advancing, and policies to promote foreign trade are continuously taking effect, which will support the stable development of foreign trade. Thank you.

National Business Daily:

Just now, you mentioned multiple sets of data on the value added of industrial enterprises above designated size across the country. What are the characteristics of the value added of industrial enterprises above designated size nationwide in April? How do you evaluate the future development trend of the country's industrial production? Thank you.

Fu Linghui:

Thank you for your questions. Industrial production is essential for stable economic growth. Since the beginning of this year, with the continued effectiveness of existing policies and the effective implementation of new policies, the policy mix has continued producing effects. Industrial production has maintained rapid growth, and the transformation of industrial development toward high-end, intelligent and green has provided strong support for high-quality economic development. The characteristics are as follows:

First, industrial production has maintained rapid growth. The combined effects of macro policies continue to emerge, and various regions are increasing efforts to promote industrial development, and industrial production has maintained steady and rapid growth. In April, the value added of industrial enterprises above designated size increased by 6.1% year on year. As mentioned earlier, this growth rate is relatively high among the monthly growth rates since last year. Expansion was reported in over 80% of China's major industrial sectors in April, with 36 out of 41 registering year-on-year growth.

Second, the industrial transformation and upgrading is continuing. The trend of high-end industrial development is clear, and the high-tech manufacturing industry has a good growth momentum. In April, the value added of high-tech manufacturing above designated size increased by 10% year on year, significantly faster than the growth of industrial enterprises above designated size. From the perspective of industries, the value added of integrated circuit manufacturing and optoelectronic device manufacturing increased in April by 21.3% and 19%, respectively. In terms of products, the output of 3D printing equipment and industrial control computers and systems increased in April by 60.7% and 29.5%, respectively.

Third, the new momentum of industrial growth continues to strengthen. The intelligent and green transformation of industry is accelerating, and related industries and products are growing rapidly. The development trend of the new energy industry is relatively good. In April, the output of NEVs and lithium-ion vehicle batteries increased by 38.9% and 61.8%, respectively. The production of intelligent products grew rapidly. In April, the value added of the intelligent unmanned aircraft manufacturing and intelligent vehicle equipment manufacturing increased by 74.2% and 29.3%, respectively, which was significantly faster than the growth rate of industrial enterprises above designated size. The output of industrial robots increased by 51.5%.

Fourth, the driving effect of policies for the large-scale renewal of equipment and the trade-in of consumer goods is evident. The intensification and expansion of the policies for the large-scale renewal of equipment and the trade-in of consumer goods has promoted technological upgrading in industries and the expansion of market demand, thereby facilitating the growth of industrial production. Driven by the equipment renewal policy, the output of primary processing machinery for agricultural products and special packaging equipment maintained double-digit growth in April; Driven by the trade-in policy, the output of products such as electric bicycles and LCD screens maintained rapid growth in April.

Overall, since the beginning of this year, industrial production has grown steadily and rapidly. This can be attributed to the continuous release of the effectiveness of macro policies, the boost from major national projects and programs, including those aligned with major national strategies, building up security capacity in key areas, and the large-scale renewal of equipment and the trade-in of consumer goods to stimulate the potential of domestic demand, as well as the influence of the continuous deepening of industrial transformation and upgrading and the enhanced momentum of innovative development. Looking into the future, the high-end, intelligent and green industrial development trend is clear, and new quality productive forces are constantly being cultivated and strengthened. However, it should also be noted that the prices of industrial products are still at a low level, and some enterprises in certain industries are still facing many difficulties in production and operation. In the next stage, we should continue to expand domestic demand, implement various policies to support industrial development, promote the integrated development of scientific and technological innovation and industrial innovation, optimize the industrial structure, accelerate the transformation and upgrading of traditional industries, cultivate and strengthen emerging industries, and promote the sustained and healthy development of industry. Thank you.

CNBC:

I have two questions. In April, foreign trade enterprises faced a rapid increase in tariffs and the suspension of orders. What impact did this have on the overall economic operation? And what impact did it have on employment? Also, how is the recent real estate situation in third- and fourth-tier cities different from that in first- and second-tier cities? What is your outlook? Thank you.

Fu Linghui:

Thank you for your questions. From the relevant data released earlier, it can be seen that China's economic operation remained generally stable in April. In April, as external shocks intensified, some foreign trade companies faced increased production and operation pressures. However, from the perspective of the overall economic operation, the main production and demand indicators maintained steady and relatively fast growth in April, and the employment situation remained generally stable. New growth drivers continue to grow, the green transformation is deepening, and the new and positive trend is sustained. There are many questions regarding this situation. Why can the Chinese economy maintain such steady growth despite external shocks? In the face of external shocks, China's economy has been able to withstand pressure and grow steadily. This can not only be attributed to its solid economic foundation, multiple advantages, strong resilience and great potential, but also to the coordinated macro policies and the proactive responses from all sectors. Moreover, it is the result of China's unwavering commitment to promoting high-quality development and accelerating the formation of a new development pattern.

First, the economic foundation is stable, there is ample space for development, and the capability to resist pressure is strong. "The Chinese economy is not a pond but an ocean." China has a super-large economy, ranking second in the world in terms of economic aggregate, and has maintained the world's largest manufacturing scale for 15 consecutive years. With a solid material and technological foundation, a complete industrial system and strong supporting capabilities, the foundation for economic development is solid. At the same time, China has huge market and broad space for development. With over 1.4 billion and a consumer market scale ranking among the top in the world, China has significant potential for improvements. These facts determine China's strong capabilities to cope with various risks and challenges.

Second, steady progress has been made in pursuing high-quality development, which provides an important guarantee for responding to changes with proactive steps. Since the 18th CPC National Congress, the CPC Central Committee has taken a comprehensive view, accurately perceived the major domestic and international development trends, made significant decisions and deployments to promote high-quality development, unwaveringly promoted economic structure adjustment and renewal of driving forces, developed new quality productive forces according to local conditions, to effectively pursue higher-quality economic growth and appropriately increase economic output. At the same time, in the face of the increasingly complex and severe external environment, following the decisions and deployments of the CPC Central Committee, we accelerated the construction of a new pattern of development, enhanced the resilience and security industrial and supply chains, and firmly grasped the initiative in development. These steps have provided important guarantees for China's economy to proactively respond to severe changes to the external environment.

Third, the intensified and effective macro policies have played a pivotal role in stabilizing the economy. On Sept. 26 last year, the meeting of the Political Bureau of the CPC Central Committee decisively deployed a package of incremental policies, effectively boosted social confidence, and significantly promoted economic recovery. This year, macro policies have become more proactive and effective. Both existing and new policies continue to exert force, significantly expanding demand, promoting production, supporting innovation and stabilizing expectations, playing a crucial role in maintaining stable economic operation. From January to April, the growth rates of total retail sales of consumer goods and the service industry production index both accelerated by 0.1 percentage point compared to the first three months, and the cumulative growth rates of fixed asset investment and value added of industries above designated size remained basically stable. In April, the transaction volume of the Shanghai and Shenzhen stock exchanges increased by more than 30%. In the face of challenges from external shocks, in late April, the Political Bureau of the CPC Central Committee held a meeting to make arrangements for the economic work, effectively enhancing confidence in social development.

Fourth, we have actively responded to changes against all odd and provided strong support for the stable operation of the economy. In the face of external shocks, all regions and departments resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council, made full use of fiscal and monetary policies, accelerated the issuance and use of local government special bonds and ultra-long-term special national bonds, further reduced reserve requirements and interest rates, promoted the early implementation key tasks and achieved real results, assisting the stable operation of the economy. For enterprises significantly affected by tariffs, the government has promptly increased efforts to assist and alleviate difficulties, effectively consolidating the micro-foundation of economic operations. In the face of the impact of increased tariffs by the United States, many foreign trade enterprises actively responded and took the initiative to expand diversified markets, promoting stable growth in foreign trade. From January to April, the growth rate of China's total imports and exports of goods accelerated by 1.1 percentage points compared to the first quarter.

All this demonstrates that China boasts a solid economic foundation, effective development, institutional advantages, strong policy support and a vibrant market. China is fully equipped and confident in responding to various risks and challenges. Thank you.

Jiupai News:

As mentioned just now, the CPI edged down 0.1% year on year in April, while the core CPI rose 0.5% year on year. What are the reasons behind this? How would you assess this phenomenon? Thank you.

Fu Linghui:

Thank you for your questions. Changes in the CPI are also a major concern for the public. In April, the CPI declined slightly year on year, but shifted from a decrease to an increase on a month-to-month basis, continuing the overall trend of stability. On a year-on-year basis, the CPI dipped 0.1%, unchanged from the previous month. By category, prices rose in seven of the eight major groups, with most categories maintaining an upward trend. Only the price of transportation and communication fell, dropping 3.9%. The slight year-on-year decline in the CPI was mainly due to the impact of lower international oil prices on domestic prices. In April, energy prices fell 4.8% year on year, widening by 2.2 percentage points from the previous month. Gasoline prices dropped 10.4%, which pulled the CPI down by about 0.38 percentage point. On a month-on-month basis, the CPI rose 0.1% in April, compared to the 0.4% decrease in the previous month. The shift from a decline to a rise was mainly driven by rebounds in food and travel services. Prices for some meats, aquatic products and fresh fruits rose month on month, pushing food prices up by 0.2%. Driven by higher demand and the impact of holidays, prices for air tickets, vehicle rentals, hotel accommodations, and tourism grew between 3.1% and 13.5% month on month, contributing to the overall rise in the CPI.

Food and energy prices are more susceptible to short-term factors. To accurately track price trends, it is important to consider not only overall changes in the CPI but also changes in the core CPI. In April, the core CPI, which excludes food and energy prices, rose 0.5% year on year, about the same as the previous month. Service prices rose 0.3%, while prices for industrial consumables excluding energy increased 0.4%. Both growth rates remained essentially stable compared with the previous month. From a dynamic perspective, the core CPI increased by 0.3% year on year in January-February, 0.5% in March, and 0.5% in April, showing an overall steady upward trend. This reflects the effectiveness of macroeconomic policies and the growing impact of expanding domestic demand on prices.

However, it is important to recognize that current prices remain at a low level, which adds pressure to business operations and may affect employment and income growth for residents. Therefore, it is important to keep prices within a reasonable range. Next, we should continue to leverage the combined effects of macroeconomic policies, further expand domestic demand, deepen supply-side structural reforms, improve economic circulation and continuously regulate market order to promote a reasonable rebound in prices. Thank you.

Zhonghongwang.com:

Although the PPI declined year on year in April, we are seeing expanding macroeconomic policies to boost consumption, faster growth in high-tech industries, increasing demand in some sectors and positive price changes in certain areas. What are your thoughts on this situation? How do you assess and analyze the future trend of industrial product prices? Thank you.

Fu Linghui:

Thank you for your questions. In April, the year-on-year decline in the PPI widened, mainly due to falling international energy prices and price declines in some domestic industries. In April, the PPI fell 2.7% year on year, widening by 0.2 percentage point from the previous month. Although the PPI continued to decline year on year, prices in some sectors have improved thanks to intensified and effective implementation of macroeconomic policies, recovering market demand, and the rapid growth of new economic drivers.

First, demand in the high-end manufacturing sector has increased. Economic restructuring is advancing steadily, demand for high-tech products is expanding, and prices in related industries have risen to some extent. In April, prices for manufacturing wearable smart devices rose 3%, while aircraft manufacturing prices increased 1.3%. Driven by advances in intelligence and digitalization, manufacturing prices for some digital products are also rising. In April, prices for integrated circuit packaging and testing climbed 2.7%, while server prices rose 1%.

Second, the impact of policies aimed at boosting domestic demand is becoming stronger. The "two new" policies, which refer to large-scale equipment upgrades and consumer goods trade-ins, are delivering positive results. Demand for some consumer goods and equipment manufacturing products is expanding, driving up prices in related industries and products. In April, the year-on-year price declines for household washing machines and NEVs narrowed by 0.3 and 0.2 percentage points, respectively, compared with the previous month. The year-on-year price declines for specialized equipment manufacturing for electrical machinery and machinery used in farming, forestry, livestock and fishing narrowed by 0.7 and 0.2 percentage points, respectively.

Third, supply and demand conditions in some traditional industries have improved. In April, year-on-year price declines in the ferrous metal smelting and rolling industry and the nonmetallic mineral products industry narrowed by 1.4 and 1 percentage points, respectively, compared to the previous month. These developments demonstrate that by fostering new quality productive forces and implementing the "two new" policies and the policies aimed at fulfilling major national strategies and enhancing security capabilities in key areas, we have improved the supply-demand dynamics of industrial products.

However, it is important to recognize that the PPI remains on a downward trend, and prices in some industries have fallen significantly, affecting industrial enterprises' efforts to increase profits. In response, it is necessary to continue expanding domestic demand, vigorously promote technological and industrial innovation, optimize and adjust production capacity and structure, and achieve a high-level dynamic balance between supply and demand. These efforts will help return industrial product prices to a reasonable range, improve business operations, boost development confidence, and promote sustained healthy economic growth. Thank you.

Zhou Jianshe:

I see that two more journalists have their hands raised.

Dazhong Daily:

In the current economic environment, the stability of the job market is essential. What are the key highlights and issues to watch in the April employment data? In response to employment difficulties, which areas should be prioritized going forward to promote job growth? Thank you.

Fu Linghui:

Thank you for your questions. Employment stability affects every household. The CPC Central Committee and the State Council attach great importance to stabilizing employment and have introduced policy measures to promote high-quality, full employment. Support for enterprises in creating job opportunities has been strengthened, and employment for key groups, such as young people and rural migrant workers, has been prioritized. Since the beginning of this year, China's economy has maintained steady growth, industries have developed positively, and new growth drivers have continued to expand. In addition, policies supporting employment and entrepreneurship for key groups have been further intensified. Together, these factors have contributed to overall employment stability.

In terms of unemployment rate trends, the national urban surveyed unemployment rate rose in January and February due to the impact of the Spring Festival. However, as business activity and production picked up after the holiday and more migrant workers returned to work, labor market activity increased, resulting in a steady decline in the unemployment rate during March and April. Overall, the national urban surveyed unemployment rate has continued to decline steadily. In April, it stood at 5.1%, down 0.1 percentage point from the previous month and marking a decline for two consecutive months. Among key groups, the surveyed unemployment rates for both rural migrant workers and young people also declined. In April, the national urban surveyed unemployment rate for migrant workers with agricultural household registration was 4.7%, down 0.3 percentage point from the previous month. The rate for those aged 16 to 24, excluding students still in school, also declined for a second consecutive month.

Nevertheless, structural employment challenges remain significant. While young people continue to face considerable employment pressure, some sectors are still struggling to recruit workers, especially front-line skilled employees. The imbalance between labor supply and demand remains a significant challenge. Meanwhile, the complex and evolving external environment is also exerting pressure on China's labor market. Looking ahead, amid a complex and evolving external environment and growing uncertainties, we will remain focused on our own work and fully implement the decisions and plans set by the CPC Central Committee and the State Council. We will intensify efforts to stabilize and expand employment, promote full employment, enhance employment quality, and continue working to safeguard and improve people's livelihoods. Thank you.

Zhou Jianshe:

One last question, please.

21st Century Business Herald:

Based on the data released this year, how would you assess the real estate sector's performance in April? What is the outlook for the sector's development going forward? Thank you.

Fu Linghui:

Thank you for your questions. Another reporter also raised this issue earlier, and I forgot to address it. The real estate sector remained basically stable in April. Of course, conditions vary across different regions, with cities showing distinct trends shaped by factors such as economic growth and population concentration. Overall, however, the real estate market has remained stable.

Since the fourth quarter of 2024, all localities and government departments have worked to implement the CPC Central Committee's decision to restore stability in the real estate market. A series of policies have been introduced to steady the housing market, help people meet their needs for adequate and improved housing, and reduce the cost of home buying. These measures have led to positive progress. Since the beginning of this year, these policies have continued to show results, and the real estate market has been gradually recovering and stabilizing. Based on April's data, the real estate market remained generally stable in both transactions and prices, with some first- and second-tier cities seeing increased transaction activity. The main characteristics are as follows:

First, housing market transactions remained broadly stable. As various policies aimed at stabilizing the property market continue to take effect, property sales have started to recover, with transactions in some cities showing positive trends. From January to April, the sales area of new commercial housing fell by 2.8%. The pace of decline narrowed 0.2 percentage point compared with the January-to-March period. Among 40 key cities, the sales area of new commercial housing increased by 0.1% year on year, while sales volume rose by 2%.

Second, overall housing prices remained stable. In April, across the 70 large and medium-sized cities tracked, sales prices for new commercial housing in first- and second-tier cities remained unchanged from the previous month. In contrast, sales prices in third-tier cities edged down slightly. From a year-on-year perspective, in April, the decline in commercial housing prices continued to narrow across all city tiers among the 70 large and medium-sized cities. Specifically, the year-on-year decline in sales prices for new commercial housing narrowed by 0.7 percentage point in first-tier cities, 0.5 percentage point in second-tier cities, and 0.3 percentage point in third-tier cities. Meanwhile, the year-on-year decrease in sales prices of secondhand homes narrowed by 0.9, 0.5 and 0.4 percentage point, respectively.

Third, housing inventory and new construction activity showed signs of improvement. As property sales have rebounded, real estate developers have reduced their inventories of commercial housing, and new construction activity has picked up. By the end of April, the area of commercial housing for sale had continued to decline compared with the end of March, marking the second consecutive month of decreases. From January to April, the year-on-year decline in the area of new housing construction projects narrowed by 0.6 percentage point compared with the decrease recorded from January to March.

Overall, as a result of various policies aimed at restoring and stabilizing the real estate market, the sector remained largely stable in April. Looking ahead, demand among residents for green, smart and safe housing continues to grow. There is also strong potential for upgrading old neighborhoods and improving the quality and efficiency of housing construction. Nevertheless, the overall property market is still undergoing adjustment and transformation. Demand for both first homes and improved housing has yet to be fully unleashed, and some regions continue to face significant pressure to reduce existing housing inventory. Continued efforts are needed to further stabilize the sector.

Moving forward, we need to earnestly implement the decisions and plans set by the CPC Central Committee and the State Council, and proactively adapt to the significant changes in supply-demand dynamics in the property market. We will strengthen policy coordination, continue increasing the supply of high-quality homes, and actively promote urban renewal projects and the construction of government-subsidized housing. We will also accelerate the development of new growth models for the property sector to better meet people's aspirations for improved living conditions and to promote the steady and healthy growth of the real estate sector. Thank you.

Zhou Jianshe:

Today's press conference is hereby concluded. Thank you, Mr. Fu, and thank you to all our friends from the media. Goodbye!

Translated and edited by Zhang Jiaqi, Wang Xingguang, Liu Caiyi, Xu Kailin, Liu Sitong, Yang Xi, Liu Ziying, Zhang Tingting, Zhu Bochen, Huang Shan, Fan Junmei, Li Huiru, Ma Yujia, Li Xiao, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Ruihe, deputy director of the Legislative Affairs Commission of the Standing Committee of the National People's Congress

Ms. Zheng Bei, vice chairwoman of the National Development and Reform Commission

Mr. Wang Zhenjiang, vice minister of justice

Ms. Cong Lin, vice minister of the National Financial Regulatory Administration

Mr. Fang Guanghua, vice chairman of the All-China Federation of Industry and Commerce

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

May 8, 2025

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The 15th session of the Standing Committee of the 14th National People's Congress (NPC) voted to pass the Private Sector Promotion Law of the People's Republic of China on April 30, which will come into effect on May 20, 2025. To help everyone better understand the law, today we have invited Mr. Wang Ruihe, deputy director of the Legislative Affairs Commission of the NPC Standing Committee; Ms. Zheng Bei, vice chairwoman of the National Development and Reform Commission (NDRC); Mr. Wang Zhenjiang, vice minister of justice; Ms. Cong Lin, vice minister of the National Financial Regulatory Administration (NFRA); and Mr. Fang Guanghua, vice chairman of the All-China Federation of Industry and Commerce (ACFIC), to brief you on the Private Sector Promotion Law and answer your questions.

Now, I'll give the floor to Mr. Wang for his introduction.

Wang Zhenjiang:

Good morning, everyone. I am very pleased to attend this morning's press conference together with colleagues from the Legislative Affairs Commission of the NPC Standing Committee, the NDRC, the NFRA and the ACFIC. Thank you all for your concern and support for the legislative work associated with the Private Sector Promotion Law. Next, I will introduce the research, drafting and formulation of the law.

The Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to the development of the private economy. Since the reform and opening up in 1978, China's private economy has developed rapidly under the guidance of the Party's lines, principles and policies. Especially since the 18th CPC National Congress, the Party Central Committee with Comrade Xi Jinping at its core has taken a series of major measures to promote the development of the private economy. The private economy has continued to play an increasingly important role in China's national economy and social development. At the same time, due to a combination of multiple internal and external factors, such as changes in the external environment and inadequate policy implementation, the private economy faces some difficulties and challenges in areas including fair participation in market competition, equal access to production factors, obtaining investment, financing and services, and the protection of legitimate rights and interests. There is an urgent need to codify the guiding principles and effective practices of the CPC Central Committee and the State Council on the private economy, in order to consolidate the achievements of reforms. It is also necessary to promptly improve relevant institutional measures to address prominent issues in practice, respond to public concerns, boost confidence and unleash the internal dynamism of private enterprises. These efforts will foster a legal environment and social atmosphere conducive to the development of all forms of ownership, including the private economy, enable us to stay focused on managing our own affairs well, and further consolidate the momentum of economic recovery and long-term growth. We will counter the uncertainties of a rapidly changing external environment with a firm commitment to high-quality development. Formulating the Private Sector Promotion Law is a major decision and deployment made by the Party Central Committee with Comrade Xi Jinping at its core. The need to formulate this law was clearly stated at the third plenary session of the 20th CPC Central Committee. The 2024 Central Economic Work Conference explicitly called for the introduction of this law.

In accordance with the work plan, the Ministry of Justice and the NDRC requested the Legislative Affairs Commission of the NPC Standing Committee to take the lead in forming a drafting task force composed of 17 relevant departments from central and state organs. The task force thoroughly studied and comprehended the guiding principles of General Secretary Xi Jinping's important instructions and the key points of his speech delivered at the symposium on private enterprises on Feb. 17 this year. The task force, in line with the guidelines and policies of the CPC Central Committee and the State Council, widely solicited public opinions, conducted in-depth research and analysis, and drafted the law. After the third plenary session of the 20th CPC Central Committee, the task force revised the draft in alignment with the session's guiding principles, solicited public opinions again, and further refined it based on public feedback. After being discussed and approved at a State Council executive meeting, the draft was submitted to the NPC Standing Committee for deliberation in December 2024. The NPC Standing Committee reviewed the draft three times — in December 2024, February 2025 and April 2025 — and released it again for public comment during the period. On April 30, 2025, the 15th session of the 14th NPC Standing Committee voted to pass the Private Sector Promotion Law of the People's Republic of China, which will officially come into effect on May 20.

The law consists of nine chapters and 78 articles, establishing and improving relevant systems and mechanisms around fair competition, investment and financing promotion, scientific and technological innovation, regulatory guidance, service support and the protection of rights and interests. It translates the CPC Central Committee's commitment to equal treatment and protection of the private economy into concrete legal provisions, in a bid to continuously improve a stable, fair, transparent and predictable environment for its development. As the first foundational law dedicated to the development of the private economy, the law marks a major step in implementing the decisions of the third plenary session of the 20th CPC Central Committee and the important remarks made by General Secretary Xi Jinping at the symposium on private enterprises. It is a vivid embodiment of Xi Jinping Thought on the Rule of Law and Xi Jinping Thought on Economy, a landmark event in building China's socialist market economy, and a milestone in the development of its private sector. The law marks several breakthroughs. It is the first to enshrine into legal doctrine the principle of "unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting and guiding the development of the non-public sector." It is the first to clearly define the legal status of the private economy, and the first to explicitly state that "promoting the private sector's sustained, healthy and high-quality development is a long-term major national policy." This fully demonstrates the firm commitment of the CPC Central Committee in supporting the growth of the private sector and sends a clear message that developing the private economy remains a consistent and enduring policy of both the Party and the state. This will further unleash the internal drive and creative vitality of the private economy, boost confidence among private business operators, and inspire their entrepreneurial spirit and determination, fostering a strong sense of commitment to the nation and strengthening their resolve to be builders of socialism with Chinese characteristics and contributors to Chinese modernization.

Laws alone cannot implement themselves. We hope all regions and government departments will take the adoption of the Private Sector Promotion Law as an opportunity to rigorously implement its provisions, ensuring thorough and accurate publicity and interpretation of the law and full compliance with its requirements, and promote the promulgation and implementation of supporting regulations as soon as possible. Efforts should be made to coordinate and refine the supportive and guarantee measures, and improve the institutional system for the development of the private sector. We need to further improve the law-based business environment, and effectively protect the legitimate rights and interests of private economic organizations and their operators in accordance with the law. We will step up efforts to foster a positive social atmosphere that supports the development of private businesses, and promote their sustained, healthy and high-quality development.

That is all for my introduction. Now, my colleagues and I are ready to answer your questions. Thank you.

Xing Huina:

The floor is now open for questions. Please raise your hand and state the news outlet you represent before asking your questions.

The Poster News APP:

As China's first fundamental law specifically dedicated to promoting the private sector, what are the important legal implications of formulating and implementing the Private Sector Promotion Law? Thank you.

Wang Ruihe:

As everyone knows, over the past 40 years of reform and opening up, China's private sector has grown from humble beginnings to remarkable strength, achieving substantial development. At the same time, theories and policies on the private sector continue to be rolled out while evolving with the times and undergoing continuous improvement. General Secretary Xi Jinping said that the basic principles of the Party and the state on the development of the private sector have been incorporated into the system of socialism with Chinese characteristics and will be consistently adhered to and implemented, which cannot and will not be changed. The adoption of the Private Sector Promotion Law has put the Party and the state's fundamental principles, policies and some effective practices for fostering private sector growth into law. By doing so, the law for supporting and protecting the development of the private sector has been incorporated into the socialist legal system with Chinese characteristics. In terms of legal significance, this marks an important innovation. Moreover, it is consistent with many provisions of the Constitution, providing legal assurance for the proper enforcement of the Constitution.

Specifically, the current Constitution has established the fundamental economic system with public ownership as the mainstay and multiple forms of ownership developing together. It also stipulates that the state protects the legitimate rights and interests of private businesses and the non-public sector of the economy. The country encourages, supports and guides the development of the non-public sector, and supervises and regulates the non-public sector according to the law. Article 1 of the Private Sector Promotion Law clearly stipulates that: "The law is formulated in accordance with the Constitution." It stipulates that the state upholds and improves the basic socialist economic systems, including the system under which public ownership is the mainstay and diverse forms of ownership develop together, the system under which distribution according to work is the mainstay while multiple forms of distribution exist alongside it, and the socialist market economic system. The country always unswervingly consolidates and develops the public sector, and unswervingly encourages, supports and guides the development of the non-public sector. This has been written into the Private Sector Promotion Law. At the same time, the law clarifies the role of the private sector: Private sector is an important part of the socialist market economy, a vital contingent for promoting Chinese modernization, a significant foundation for high-quality development, and a principal force for promoting the development of China into a great modern socialist country in all respects and the rejuvenation of the Chinese nation. Legally defining this status reflects the judicious judgment of the CPC Central Committee and represents a broad societal consensus. Promoting the sustainable, healthy and high-quality development of the private sector is a crucial principle and policy that the state has long upheld. The formulation of the law fully demonstrates that our Party and the state will not and cannot change the fundamental policies regarding the development of the private sector. This legislation will undoubtedly improve the legal framework for the high-quality development of the private sector, and make supporting systems more robust and effective. Thank you.

CCTV:

The Private Sector Promotion Law has drawn significant public attention given its broad scope. Regarding this comprehensive piece of legislation, how did the drafting body ensure the following aspects during drafting process: fully aligning with the central authorities' principles and policies; proactively addressing public concerns; and establishing its status as a foundational law? Thank you.

Wang Zhenjiang:

Thank you for your question. I'll take this one. This is an extremely important question, and has been a key focus for our task force since day one. The Private Sector Promotion Law, serving as China's first fundamental law specifically designated for promoting the development of the private sector, carries significant political weight, policy importance and professional rigor. In drafting this law, the task force focused on the following key priorities:

First, we must implement the principles and policies made by the CPC Central Committee and the State Council on the private sector in a complete, accurate and comprehensive manner. Since the reform and opening up, and especially since the 18th CPC National Congress, the CPC Central Committee and the State Council have put forward a series of principles and policies promoting the development of the private sector. Practice has proven that these policies have provided important guarantees and fundamental guidelines for ensuring the sustained, healthy and high-quality development of China's private sector. It is therefore necessary to codify them into legal systems to better allow the rule of law to play its role in consolidating foundations, ensuring stable expectations and delivering long-term benefits. Therefore, the legislation must codify the central authorities' major principles, policies and propositions regarding the private sector, notably unswervingly consolidating and developing the public sector, and unswervingly encouraging, supporting and guiding the development of the non-public sector, as well as the private sector's status and significance. Transforming these policies into binding legal requirements is pivotal to better safeguarding the private sector's fundamental and political direction for development. During the drafting process, the third plenary session of the 20th CPC Central Committee was held, which made new arrangements for leveraging the role of private enterprises in technological innovation. In line with the guiding principles of the plenary session, we made such provisions in the law as supporting private economic organizations in participating in national sci-tech research projects, supporting qualified private entities to lead and undertake major national technological research tasks, and granting private enterprises access to major national scientific research infrastructure. The goal is to allow the private sector to play a greater role in advancing the cause of socialism with Chinese characteristics.

Second, we have adhered to open-door legislation, pooling wisdom and building consensus. Promoting the private sector involves a wide range of areas. Which issues should be addressed now through legislation, which measures should be written into law and which should be clarified in subsequent supporting regulations — all these need to be decided after we listen to the views and gathered the ideas of all parties concerned. Therefore, in the drafting process, we always adhered to open-door legislation to pool wisdom. We set up a special working group composed of 17 relevant departments and institutions under the central authorities to jointly study and draft the law. An important consideration behind this was to collect opinions widely so that good suggestions from all sides could be timely and fully reflected and embodied in the draft law. As soon as the working group was established, we held a symposium to listen to the opinions and suggestions of private enterprises. Next, we entrusted authoritative legal research institutions, such as the China Law Society and the Institute of Law of the Chinese Academy of Social Sciences, to organize multiple expert conferences to conduct in-depth discussions on issues involving legislation. At the same time, department heads of the working group led teams to conduct field investigations, visiting and listening to the opinions of deputies to people's congresses, members of the Chinese People's Political Consultative Conference (CPPCC), and representatives of private enterprises. During the drafting and reviewing by the State Council and deliberation by the NPC Standing Committee, we solicited public opinions twice on the draft law, and carefully analyzed and took on board the opinions and suggestions from all sides. After repeated research and discussions, we ultimately focused on fair competition, investment and financing promotion, scientific and technological innovation, standardized operation, service guarantees, and the protection of rights and interests. These are widely seen as the most prominent issues facing the private sector in its current development stage. The framework and main contents of the law are also based on these issues. It can be said that the process of formulating the Private Sector Promotion Law itself is a process of pooling wisdom and building consensus, as well as a vivid practice of making laws in a well-conceived, democratic, and law-based manner, and implementing whole-process people's democracy.

Third, based on the positioning of fundamental law, we have taken coordinated action to define the foundational institutional frameworks while leaving appropriate space for evolution in the future. Many provisions in the Private Sector Promotion Law are highly targeted, such as regulations on "pay-when-paid" clauses and administrative law enforcement. The provisions are concise and informative, and will have extraordinary significance if fully implemented. Of course, as a fundamental law, it is not necessarily better to be more detailed. As objective practice evolves quickly, overly detailed provisions can sometimes constrain the development of practice. Therefore, in the legislative process, we always adhered to overall planning for both the present and the long term. For major issues that need to be resolved through legislation at present, we focused on clarifying the main mechanisms and measures, foundational institutional frameworks, and main legal requirements, while leaving space for future practical developments. As stipulated in the law, relevant departments of the State Council should coordinate the research and formulation of policies and measures to promote private investment, while governments at all levels and their relevant departments should establish mechanisms for government-enterprise communication. This not only clarifies the establishment of the mechanisms but also leaves room for the next step to introduce supporting measures and refine implementation measures based on actual conditions. In addition, there is another category of major issues, which has been reflected by various parties as being prominent in practice and requiring significant efforts to resolve, which includes illegal cross-regional enforcement and administrative and criminal interference in economic disputes. For this type of issues, the law explicitly makes prohibitive provisions, stating the principles and bottom lines of the law, and enhancing the binding force. The implementation of these provisions will play an important role in resolving disputes and protecting the lawful rights and interests of the private sector in accordance with the law.

That is all from me on this question. Thank you.

Phoenix TV:

The Private Sector Promotion Law will officially come into effect on May 20. What impact is expected from the implementation of the law on the development of the private sector? What practical impact will it have on private enterprises or private economic organizations? Thank you.

Zheng Bei:

Thank you. I will answer your questions. In his important speech at the symposium on private enterprises on Feb. 17 this year, General Secretary Xi Jinping pointed out the direction for the development of the private economy on the new journey of the new era, significantly inspiring enthusiasm and boosting confidence. The introduction of the Private Sector Promotion Law is a major step in implementing the guiding principles of General Secretary Xi Jinping's speech. I believe that this law is of great significance and has far-reaching impact on the high-quality development of the private sector.

First, the law will further stabilize expectations. The Private Sector Promotion Law stipulates that we should work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector, and that the promotion of the sustainable, healthy and high-quality development of the private economy is a significant and long-term policy of China. The law emphasizes the basic principles of equal treatment, fair competition, equal protection and common development, fully demonstrating the Party and the state's unequivocal commitment to and firm resolve in promoting the development of the private economy. It reinforces development certainty through legal stability, offering reassurance to private enterprises as they pursue growth with greater confidence.

Second, it will further strengthen confidence. The Private Sector Promotion Law actively responds to the concerns of private enterprises and establishes targeted institutional arrangements. Regarding fair participation in market competition, the law stipulates that China will implement a unified nationwide negative list system for market access and will enforce fair competition review mechanisms. The law also ensures that businesses can enter any sector that is not explicitly prohibited. In terms of equal access to production factors, the law stipulates that the state guarantees private economic organizations equal access to capital, technology, human resources, data, land and other production factors as well as public service resources in accordance with the law. This ensures a level playing field for all stakeholders. On equal legal protection, the law stipulates that the personal rights, property rights, and operational autonomy of private economic organizations and their operators are protected by law. It emphasizes that these rights must not be violated.

Third, it will further promote high-quality development. Since reform and opening up began, and particularly since the 18th CPC National Congress, the private sector has grown to a considerable scale. Its overall strength, innovation capability and market competitiveness have improved significantly, making it an important force in building national strength and advancing national rejuvenation. The Private Sector Promotion Law addresses current needs while planning for the future, providing strong legal protection for the high-quality development of the sector. On the one hand, it focuses on encouragement and support. For example, it includes dedicated chapters such as "Investment and Financing Promotion" and "Technological Innovation," which support private enterprises in participating in major national strategies and projects, and in investing and starting businesses in strategic emerging industries and future industries. The law also encourages them to actively contribute to promoting technological innovation, cultivating new quality productive forces, and building a modern industrial system. On the other hand, it focuses on guidance and regulation. It guides private enterprises to improve their governance structure and management systems, commit to lawful and compliant operations, strengthen risk prevention, fulfill social responsibilities, and promote the sound development of the private sector and the well-rounded growth of those engaged in it.

We believe that the promulgation of this law will inspire private enterprises and entrepreneurs to be bold and daring, making new and greater contributions to advancing Chinese modernization. Thank you.

National Business Daily:

The Private Sector Promotion Law has a special article in the general provisions that stipulates the role and responsibilities of the ACFIC. How will the ACFIC serve as an effective bridge between government and business following the law's enactment to support sustainable, healthy and high-quality private sector development? Thank you.

Fang Guanghua:

Thank you for your question. Promoting the sound development of the private sector and the well-rounded growth of those engaged in it is the ACFIC's main responsibility. Article 7 of the General Provisions of the Private Sector Promotion Law clarifies ACFIC's responsibilities, providing both a legal basis and legal safeguards for it to better fulfill its role as a bridge, and to serve the healthy, sustainable and high-quality development of private enterprises.

Publicity and interpretation of the law should be well organized. Its promulgation has generated widespread enthusiasm among private sector entrepreneurs, who widely view this as a historic milestone in the development of the private economy, fully demonstrating the Party and state's attention to and care for the private sector. The ACFIC has 320,000 executive committee members and more than 5 million members, with services covering a broad range of private enterprises. We will step up efforts to promote the rule of law, using the publicity and interpretation of the Private Sector Promotion Law as an opportunity to help private entrepreneurs gain a deeper understanding of its legislative intent. This will actively communicate the Party and the state's policies for promoting private sector development and growth, and help build broad-based support and consensus.

We also need to provide good services for enterprises. The Private Sector Promotion Law proposes a series of long-term measures to promote private sector development, which will provide strong support for the high-quality development of the private sector. We will work with relevant departments to accelerate the rollout of supporting policies and ensure the effective implementation of legal provisions. We will also build a cordial and clean relationship between government and business by establishing and improving communication mechanisms and enhancing service quality. We will continuously empower the production and operations of private enterprises, guiding them in developing new quality productive forces and improving quality, efficiency and market competitiveness. This will continuously expand new opportunities for the high-quality development of private enterprises. We also need to actively participate in political consultation and democratic supervision. We will optimize the business environment evaluation system for private enterprises and collect and report new situations and problems encountered by private enterprises during the law's implementation. We will encourage judicial and law enforcement departments to optimize supporting measures and standardize enforcement methods. This will protect the legitimate rights and interests of private enterprises and entrepreneurs in accordance with the law.

We must also guide law-abiding business operations. The Private Sector Promotion Law promotes the modern governance of private enterprises. We will work with relevant departments to continue implementing the plan to enhance the legal awareness of private entrepreneurs and deepen the development of law-abiding and clean private enterprises. We will support qualified private enterprises in establishing and improving a modern corporate system with distinctive Chinese characteristics, thereby raising their standards in management and operations. We will also guide more private enterprises to actively participate in employment promotion campaigns such as the 10,000 Enterprises Revitalizing 10,000 Villages program and the "Hundred Cities, Thousand Schools, and Ten Thousand Enterprises" initiative while pursuing their own high-quality development. This will encourage them to actively fulfill their social responsibilities.

We also need to build effective chambers of commerce. The Private Sector Promotion Law specifically clarifies the coordinating and self-regulating role of industry associations and chambers of commerce in promoting private economic development. There are more than 56,000 chambers of commerce affiliated with and connected to the ACFIC at all levels. We will actively fulfill our management, guidance and service responsibilities. We will work with legislative bodies to accelerate the formulation of the Industry Association and Chamber of Commerce Law. We will also promote the construction of a modern chamber of commerce system with Chinese characteristics, strengthen Party building within chambers of commerce, and improve chamber service functions. We will guide chambers of commerce to better fulfill their roles in providing information consultation, publicity and training, market expansion, rights protection and dispute resolution. Thank you.

Nanfang Plus:

Private enterprises are a vital driving force in key sectors and areas such as technological innovation, foreign trade exports, consumption promotion and domestic demand expansion. The Private Sector Promotion Law clearly supports private economic organizations' participation in technological innovation and major national strategies. How do financial institutions support these areas, and what policies and measures does the NFRA offer? Thank you.

Cong Lin:

Thank you for your question. I'll take this one. For private enterprises in key sectors and critical areas, we focus on sector-specific policies, providing targeted and professional financial services based on industry characteristics.

In high-tech and emerging industries where private enterprises have excelled in recent years, we will work hard to enhance technology-based financial service models. First, we will promote the combination of investment and financing. We are conducting equity investment pilots for financial asset investment companies to support investment in technology innovation enterprises. Currently, 74 private equity investment funds have been established. Additionally, technology enterprise merger and acquisition loans have been launched in 18 pilot cities to support smooth capital circulation for high-tech enterprises. Second, we will innovate the credit enhancement system. We are promoting the construction of a comprehensive pilot zone for the intellectual property financial ecosystem, optimizing policies related to the registration, evaluation, disposal and compensation of intellectual property to support intellectual property pledge financing. In collaboration with finance departments, we have launched a loan guarantee initiative to support technology innovation, providing dedicated guarantees for loans to small- and medium-sized enterprises that are technology-based, high-tech, and use special and sophisticated technologies. By the end of the first quarter of this year, the loan balance of high-tech enterprises nationwide reached 17.7 trillion yuan ($2.4 trillion), a year-on-year increase of 20%. Additionally, we support the commercialization of scientific and technological advances. We have launched two insurance compensation pilot programs — one for the first sets of major technological equipment and another for the initial application of key new materials. These programs have provided more than 1 trillion yuan in risk coverage.

In the fields of foreign trade and consumption, which are primarily made up of small, medium-sized and micro private enterprises, we have designated the foreign trade sector as a priority for the financing coordination mechanism. We have compiled a comprehensive list of foreign trade enterprises and are giving them priority for financing visits and matchmaking. In addition, we have supported exports with short-term export credit insurance. In the first quarter of this year, the insured amount exceeded $240 billion, with significant increase in industries that play important supporting roles in foreign trade, including electronic information, modern chemicals and complete vehicle engineering machinery. We have developed an innovative cross-border e-commerce insurance model to support new forms of foreign trade. This involves guiding insurance companies to develop specialized guarantee products that provide credit guarantees for domestic procurement by cross-border e-commerce businesses. We have increased credit availability across multiple consumer service sectors, including wholesale and retail, accommodation and catering, cultural tourism, education and training programs, and health and elderly care. These measures aim to support the healthy development of private enterprises throughout the consumer services industry.

To encourage private investment, we have partnered with the NDRC to establish a special financing matchmaking mechanism. This has led to the creation of a list of key private investment projects, which we then shared it with banks, guiding them to independently provide appropriate financing services. Some regions have also implemented effective practices and innovative approaches, such as developing dedicated online matching platforms. These platforms allow banks to access project information and use big data to precisely identify projects that align with their credit policies. This has flipped the traditional dynamic from "projects seeking funds" to "funds seeking projects," significantly streamlining the matchmaking process. Thank you.

Beijing Youth Daily:

We've noticed that the newly issued Private Sector Promotion Law clearly stipulates that judicial and administrative departments should establish communication mechanisms for addressing business-related administrative law enforcement appeals. They should also organize administrative enforcement inspections, strengthen supervision of enforcement activities, and promptly correct improper administrative enforcement actions. What additional measures will judicial and administrative departments take to strengthen enforcement supervision and effectively protect the legitimate rights and interests of private entrepreneurs in accordance with the law? Thank you.

Wang Zhenjiang:

Thanks for your question. I'll take this one. I believe this is a concern for many businesses. Since the 18th CPC National Congress, the CPC Central Committee and the State Council have made a series of decisions and arrangements to strengthen and improve administrative law enforcement, calling for comprehensive promotion of strict, standardized, fair and civilized law enforcement. During the formulation of the Private Sector Promotion Law, we resolutely implemented these decisions and arrangements. Addressing widespread issues such as arbitrary fines, fines, inspections, seizures, illegal cross-regional law enforcement and profit-driven law enforcement, the Private Sector Promotion Law includes clear provisions. It establishes comprehensive mechanisms for handling complaints and reports of illegal administrative enforcement actions, creates communication channels for business-related administrative enforcement appeals, and strengthens supervision of administrative enforcement activities. Looking ahead, the Ministry of Justice will follow the decisions and arrangements of the CPC Central Committee and the State Council, implement the relevant requirements outlined in the private sector promotion law and further standardize administrative law enforcement behavior. Our efforts will focus on several key areas:

First, we will implement the law's requirements by accelerating the development of supporting systems and mechanisms. We will push for the establishment and improvement of mechanisms for handling complaints and reports of illegal administrative enforcement actions, promptly accepting and lawfully addressing business-related administrative enforcement complaints. Judicial administrative organs will set up contact points with businesses to supervise administrative law enforcement, ensuring timely feedback and suggestions from various business entities regarding enterprise-related administrative enforcement activities. We will implement an administrative enforcement supervision system, inviting NPC deputies, CPPCC members, public supervisors, experts, scholars, lawyers and journalists to participate in supervision. We will resolutely curb profit-driven law enforcement and effectively protect the legitimate rights and interests of private economic organizations and their operators in accordance with the law.

Second, we will take the lead in conducting special actions to regulate business-related administrative law enforcement. Last year's Central Economic Work Conference called for launching a special action to regulate business-related law enforcement. On April 25 this year, the meeting of the Political Bureau of the CPC Central Committee again emphasized the need to solidly carry out this special action. As the State Council's administrative law enforcement oversight body, the Ministry of Justice is responsible for coordinating and organizing nationwide special actions to regulate business-related administrative law enforcement. Local judicial and administrative organs at all levels, as supervisory bodies for their respective governments, are responsible for organizing and implementing special actions in their regions. The Ministry of Justice will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, taking the enactment of the Private Sector Promotion Law as an opportunity to urge all regions and departments to intensify investigation and punishment of administrative law enforcement violations, strengthen problem rectification and ensure correct and thorough resolution of issues. At the same time, we will select key regions, sectors and issues for spot checks and conduct periodic assessments of remediation results. For problems that businesses and the public strongly report, we will elevate handling when necessary and supervise cases where correction efforts are inadequate. We will promptly promote and share effective experiences and practices, while departments that fail to properly address problems may face administrative admonition, official notices and public exposure, depending on the circumstances.

Third, we will accelerate the research and formulation of administrative law enforcement supervision regulations and establish a long-term mechanism for supervising business-related administrative law enforcement. The Ministry of Justice will use the implementation of the Private Sector Promotion Law as an entry point to establish and improve long-term mechanisms for supervising business-related administrative law enforcement. We will expedite research and drafting of administrative law enforcement supervision regulations. In response to common issues in administrative law enforcement, we will further improve the supervision system, procedures and accountability mechanisms. This will provide solid legal guarantees and institutional support for strengthening administrative enforcement oversight, regulating enforcement actions, and protecting all business entities' legitimate rights and interests, including private economic organizations. That is all from me. Thank you.

Tide News under Zhejiang Daily:

We understand that private businesses are very concerned about market access issues. Does the Private Sector Promotion Law respond to their concerns? What specific measures will the NDRC take? Thank you.

Zheng Bei:

Thank you. That's an excellent question. During our research and communications with private enterprises, we also learned that they are very concerned about this issue. The Private Sector Promotion Law is guided throughout by principles of equal treatment, fair competition, equal protection and mutual development. These principles are fully reflected not only in the general provisions but also in the chapters covering fair competition, investment and financing promotion, technological innovation and legal liabilities. To implement the law's requirements, the NDRC will work with relevant departments to strengthen measures in three key areas: breaking down barriers, expanding the scope of development and optimizing services.

The first priority is eliminating barriers to market access. Recently, we worked with other departments to issue a shorter negative list for market access. We've launched rectification actions to remove market access barriers, which will continue regularly after six months of centralized rectification. We've also actively promoted the fair participation of private enterprises in bidding processes. From January to April this year, private enterprises increased their winning rate by 5 percentage points year on year. For projects under 100 million yuan, private enterprises won more than 80% of the contracts. Moving forward, if private enterprises encounter access barriers, they can report issues through the dedicated section on our commission's website for the unified national market initiative. We will work with relevant departments to promptly verify and address these concerns.

The second priority is expanding the scope of development. We are supporting private enterprises in implementing major national strategies and building security capacity in key areas. This includes participation in large-scale equipment upgrades and consumer goods trade-in programs. We're creating better long-term mechanisms for private enterprises to join major national projects. Several major projects in nuclear power and railways have already been launched. In some nuclear power projects, private capital now holds up to 20% of shares. In industrial equipment renewal and recycling, over 80% of funds support private enterprises. This year, we'll launch high-quality projects worth approximately 3 trillion yuan in key areas such as transportation, energy, water conservancy, new infrastructure and urban infrastructure. We will vigorously support private enterprises as they invest in emerging and future industries. We'll help them lead national initiatives to make breakthroughs in key technologies, ensure they have equal access to major national scientific research infrastructure and industrial technology platforms, and encourage their participation in developing innovative applications for new technologies and products. We hope private enterprises and entrepreneurs will seize these opportunities and have the courage to succeed.

The third priority is to optimize service guarantees. We will continue to strengthen project services, release information on major project encouraging private sector investment, and provide standardized, efficient and convenient services for project introductions, preliminary work and approval processes. This will help private enterprises better understand "where to invest and how to invest." We will continue to strengthen resource guarantees and improve mechanisms for ensuring private investment has access to land, environmental assessments and funding. We'll help private firms attract top talent through better incentives and services. We'll also support their participation in the emerging data market and standards development. Additionally, we'll enhance intellectual property protections, improve the social credit system, and develop a better credit repair system, helping private enterprises unleash their innovative potential. Thank you.

China News Service:

The Private Sector Promotion Law has a total of nine chapters and 78 articles with wide-ranging provisions. From the state legislature's perspective, what are this law's outstanding features? Thank you.

Wang Ruihe:

The Private Sector Promotion Law is a specialized standalone law on the development of the private sector. From the perspective of actively building a socialist market economy legal system with Chinese characteristics, it represents an important legislative achievement. As the reporter mentioned, the content is extensive, and relevant departments have conducted publicity campaigns both before and after the law's introduction. The Private Sector Promotion Law, for the first time, stipulates that we will work unwaveringly to both consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector. It promotes the sound development of the private sector and persons in the sector. The law also establishes the status of the private sector for the first time and stipulates that promoting the sustainable, sound and high-quality development of the private sector is a crucial principle and policy that the state has long upheld.

As a law designed to promote and protect, the Private Sector Promotion Law is highly policy-oriented and principled in nature. In terms of content, it can be summarized by four key features:

First, it emphasizes ideological guidance. The Private Sector Promotion Law is guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implements Xi Jinping Thought on the Economy and Xi Jinping Thought on the Rule of Law. It stipulates that efforts to promote the development of the private sector must uphold the leadership of the CPC, follow a people-centered approach, and adhere to the socialist system with Chinese characteristics. These measures are intended to ensure the correct political direction for the development of the private economy.

Second, it upholds equal treatment. The Private Sector Promotion Law emphasizes equal treatment, fair competition, equal protection and common development to support the growth of the private sector. It ensures that private businesses, along with all other types of economic organizations and market entities, enjoy equal legal status under the law. Our rough count found that the terms "equality," "fairness" and "equal treatment" appear 26 times throughout the law's text, reflecting how the principle of equality is woven into every aspect of efforts to promote the development of the private sector.

Third, it strengthens legal protections. The Private Sector Promotion Law calls for strict, standardized, just and civilized law enforcement. It strengthens protections for the legal rights and interests of private businesses and their operators. The law also encourages, supports and guides the development of the private economy in accordance with the law. The law reinforces legal protections by laying a solid foundation, stabilizing expectations and ensuring long-term benefits.

Fourth, it emphasizes a problem-oriented approach. The Private Sector Promotion Law addresses major issues and shortcomings in the development of the private economy by fully incorporating the results of reforms and practical experience. It refines and improves relevant systems and measures in a targeted way, aims to maximize the decisive role of the market in resource allocation, and seeks to better utilize the role of government. Thank you.

Xing Huina:

Please feel free to raise your hand if you have any questions. We have time for two more questions from reporters.

Xinhua Finance:

Article 4 of the Private Sector Promotion Law stipulates that the NDRC is responsible for coordinating and overseeing efforts to promote the development of the private economy. I have a question for the NDRC. What steps will be taken next to ensure the effective implementation of the Private Sector Promotion Law? Thank you.

Zheng Bei:

Thank you for your question. The effectiveness of a law depends on its implementation, and private businesses have high hopes for the successful implementation of this law. The NDRC will take an active role in coordinating and planning, working with various departments and local governments to ensure the effective implementation of the law. Efforts will focus on three key areas.

First, we will focus on supporting infrastructure development. During the legislative process, following the guidance of the CPC Central Committee and the State Council, we worked with relevant departments to plan ahead and simultaneously carry out the formulation, revision, repeal and interpretation of related regulations. Several supporting systems and mechanisms have already been introduced, including the market access negative list, regulations to ensure payment for small- and medium-sized enterprises, rules for fair competition review and their implementation measures, guidance on improving the social credit system and a long-term supervision mechanism for enterprise-related fees. Several other measures are being fast-tracked, covering areas such as investment and financing, technological innovation, service support and the protection of rights and interests. At the same time, many local governments, based on their specific circumstances, are actively improving the relevant supporting measures.

Second, we will prioritize effective implementation. We will work closely with relevant departments to fully implement the law and strengthen its binding enforcement. Our efforts will focus on five key areas. First, we will remove obstacles and address issues related to market access and resource acquisition. Second, we will tackle arrears and resolve payment issues for private enterprises. Third, we will provide legal protection for legitimate rights and interests, addressing business development concerns. Fourth, we will implement relief policies to help businesses feel a greater sense of benefit. Finally, we will strengthen communication between the government and enterprises to better respond to reasonable business demands. At the same time, during the law's implementation, we will focus on gathering feedback and suggestions from all parties. We will continuously improve related systems and mechanisms, striving to create a favorable legal environment that supports the healthy development of the private economy.

Third, we will focus on education and public awareness. We will work closely with relevant departments and local governments to thoroughly study the law's contents, gain a deeper understanding of its principles, and apply rule-of-law thinking and methods more consciously to advance the development of the private sector. We will strengthen publicity campaigns for the law to help private enterprises understand and make effective use of it, protect their legitimate rights and interests, and expand their development opportunities. Our goal is to help businesses enhance their core competitiveness and make significant contributions to Chinese modernization. We will promote understanding and compliance with the law across all sectors of society, building consensus and pooling efforts to advance the high-quality development of the private sector.

Turning the law into a powerful driving force for private sector development will require our collective effort and sustained commitment. We hope that all sectors of society will continue to support and pay close attention to the development of the private sector. We welcome any opinions or suggestions regarding the implementation of the law and encourage everyone to share their feedback with us promptly. Thank you.

Xing Huina:

We'll have one last question.

Red Star News:

My question is for the NFRA. Financing for private enterprises is a topic of strong public interest. The CPC Central Committee and the State Council have made dedicated arrangements to enhance financial support for the development of the private economy. The Private Sector Promotion Law outlines multiple provisions on this issue in its chapter on "investment and financing promotion." What measures has the NFRA taken to implement these policies? Thank you.

Cong Lin:

Thank you for your question. The NFRA resolutely implements the decisions and plans of the CPC Central Committee and the State Council, guiding and urging financial institutions to continuously strengthen their support for private enterprises and improve the quality of their services. As you just mentioned, Chapter 3 of the Private Sector Promotion Law specifically addresses the promotion of investment and financing. These provisions are not only a high-level summary of long-standing financial policies and practices, but also provide clear direction and tasks for our next steps. In line with the provisions of the law, I would like to introduce several key areas of work that we are focusing on:

First, we are continuously optimizing credit supply policies. For the majority of private enterprises, which are small and micro enterprises, we have developed a series of differentiated regulatory policies. For example, in terms of capital regulation, we have offered a discount on risk-weighted capital requirements for loans to small and micro enterprises, ranging from 15% to 25%. In terms of tolerance for non-performing loans, we have relaxed the acceptable non-performing loan ratio for inclusive small and micro enterprise loans to up to 3 percentage points higher than the overall non-performing loan ratio, in order to boost banks' willingness to lend. To address the issue of frontline staff being hesitant to issue loans, we have introduced an accountability exemption mechanism for inclusive credit lending, which protects responsible personnel who act in good faith during the loan approval process. At the same time, we urge banks to set specific targets every year for serving private enterprises, ensuring strong credit allocation. Here, I would like to share some figures with the press. Loans to private enterprises have been steadily increasing, with an average annual growth rate over the past five years that is 1.1 percentage points higher than the overall average loan growth rate. As of the end of the first quarter of 2025, the outstanding loan balance for private enterprises stood at 76.07 trillion yuan, representing a year-on-year increase of 7.41%. The outstanding balance of inclusive loans to small and micro enterprises was 35.3 trillion yuan, up 12.5% year on year. We have also introduced a policy of loan renewal without principal repayment to help reduce the financing turnover costs for enterprises. As of the end of the first quarter, the outstanding balance of renewed loans reached 7.4 trillion yuan, marking a year-on-year increase of 35.7%.

Second, we are guiding the development of an innovative insurance product and service system. We are developing specialized insurance products and optimizing services to meet the needs of private enterprises in areas such as disaster risk mitigation and loss recovery, human resources and employment, and research and development. For example, in the high-tech sector, we are launching pilot programs for mechanisms to disperse major technological breakthroughs, cybersecurity insurance, and drone insurance. For private enterprises that rely heavily on new urban residents and flexible employment groups, we focus on their specific occupational risks and strengthen protection through inclusive insurance products. In the new energy vehicle (NEV) industry, where private enterprises make up the majority, we have guided the insurance sector to introduce exclusive insurance terms and rates, and established a new insurance platform, ensuring full coverage for those who wish to be insured and guaranteed coverage for all applicants.

Third, we are collaborating to establish an information integration and sharing mechanism. Offline, we have established a coordination mechanism with the NDRC to support financing for small and micro enterprises. This mechanism promotes the direct, fast and convenient flow of credit funds to grassroots enterprises at appropriate interest rates. Through this mechanism, we have issued new loans totaling 12.6 trillion yuan to small and micro enterprises, with an average interest rate of 3.66%. Online, we are promoting the establishment of credit information sharing and comprehensive financial service platforms in multiple regions, aiming to "make data travel more while businesses and banks travel less," thereby supporting banks in issuing credit loans through data and information. As of the end of the first quarter, the outstanding balance of credit loans to private enterprises reached 18.1 trillion yuan, a year-on-year increase of 15.4%.

Fourth, we are strengthening the risk-sharing function of financing guarantees. In collaboration with the finance department, we have promoted the establishment of a nationwide government financing guarantee system, with serving small and micro enterprises as the main policy effectiveness indicator. The guarantee fee rate for this type of business is capped at 1%, significantly lower than the level of commercial guarantee. As of the end of the first quarter, government financing guarantee institutions had provided direct financing guarantees totaling 1.88 trillion yuan for small and micro enterprises, marking a year-on-year increase of 11.5%.

Next, we will consistently uphold the "two unwavering commitments" and focus on the implementation of the Private Sector Promotion Law. We will continue making efforts in areas such as regulatory guidance, policy incentives, mechanism promotion and institutional guarantees, and implement targeted measures for private enterprises of different industries, sizes and development stages. We will work together with relevant parties to pool efforts and jointly promote the financial industry in providing more efficient, convenient and sustainable financial services for the private economy. Thank you.

Xing Huina:

Today's press conference is hereby concluded. Thank you to our speakers and the media for your participation. Goodbye.

Translated and edited by Liu Jianing, Gong Yingchun, Li Xiao, Yan Bin, Xu Kailin, Zhang Rui, Wang Xingguang, Wang Wei, Fan Junmei, Liu Qiang, Li Huiru, Wang Qian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Pan Gongsheng, governor of the People's Bank of China (PBC)

Mr. Li Yunze, minister of the National Financial Regulatory Administration (NFRA)

Mr. Wu Qing, chairman of the China Securities Regulatory Commission (CSRC)

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

May 7, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are glad to have invited Mr. Pan Gongsheng, governor of the People's Bank of China (PBC); Mr. Li Yunze, minister of the National Financial Regulatory Administration (NFRA); and Mr. Wu Qing, chairman of the China Securities Regulatory Commission (CSRC). They will brief you on the financial policy package to stabilize the market and expectations, and answer your questions.

Now, let's give the floor to Mr. Pan for his introduction.

Pan Gongsheng:

Good morning. It's a pleasure to meet with you all again. I would like to sincerely thank you all for your continued interest in and support for the reforms and developments in the financial sector, as well as the work of the PBC.

Since the beginning of this year, the PBC has earnestly implemented the guiding principles of the Central Economic Work Conference and the deployments of the Government Work Report. We have implemented a moderately loose monetary policy, strengthened counter-cyclical adjustments, comprehensively used various monetary policy tools, served the high-quality development of the real economy, and created a favorable monetary and financial environment for promoting the continuous recovery and improvement of the economy.

From the perspective of effectiveness, various macro-financial data has been relatively positive since the beginning of this year, and monetary credit has shown the operational characteristics of "increased quantity, decreased price and optimized structure." At the end of the first quarter, the social financing scale increased by 8.4% year on year, and loans increased by 7.4% year on year. If adjusted to include the impact of local special-purpose bonds that replaced loans from local government financing platforms, the loan growth rate would exceed 8%. The M2, a broad measure of money supply, maintained stable growth of around 7%, significantly higher than the nominal economic growth rate. At the same time, the cost of social financing remained low, and the growth rates of inclusive loans to micro and small businesses, medium- and long-term loans to the manufacturing sector, and loans to sci-tech small and medium enterprises (SMEs) were all faster than the overall loan growth rate, further optimizing the credit structure.

From the perspective of the financial market, the performance in the first quarter was positive. The stock market operated generally smoothly, trading was relatively active, and the Shanghai Composite Index remained around 3,300 points. The bond market self-corrected, driven by improved economic confidence. The onshore and offshore RMB exchange rates against the U.S. dollar appreciated slightly by about 1% compared to the end of last year, and cross-border capital flows were relatively balanced.

Since April, despite facing relatively large external shocks, the domestic financial system has remained stable, and the financial market has shown strong resilience. After the Shanghai Composite Index fell on April 7, it quickly rebounded and stabilized. Currently, the 10-year government bond yield is hovering around 1.65%, and the RMB exchange rate against the U.S. dollar depreciated slightly before rebounding to around 7.2 yuan.

Currently, the global economy is full of uncertainties. Economic fragmentation and trade tensions are intensifying, disrupting global industrial and supply chains, causing turmoil in international financial markets, and weakening global economic growth momentum. Not long ago, I attended the Spring Meetings of the World Bank Group and the International Monetary Fund (IMF) in Washington, where central bank governors and heads of international financial organizations from various countries expressed deep concern about this. The PBC will conscientiously implement the central decisions and deployments, promote high-quality economic development, unswervingly advance high-standard opening up, actively participate in international financial governance and cooperation, and maintain a rules-based international economic and financial order. At the same time, we will coordinate financial opening and security, explore and enhance the central bank's role of macro-prudential management and financial stability regime, and firmly maintain the stable operation of China's foreign exchange, bond and stock markets.

On April 25, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to analyze and study the current economic situation and economic work. In order to implement the guiding principles of the meeting and further implement a moderately loose monetary policy, the PBC will intensify macro regulation and introduce a package of monetary policy measures, mainly consisting of three major categories with a total of 10 specific measures.

The first category is quantitative policies, aimed at increasing medium- and long-term liquidity supply, through measures such as lowering the reserve requirement ratio, and maintaining ample market liquidity. The second category is price-based policies, which will lower policy rate, reduce the rates of structural monetary policy tools, such as the central bank's relending rates to commercial banks, and lower interest rates on provident fund loans. The third category is structural policies, which will improve existing structural monetary policy tools and create new policy tools to support such areas as technological innovation, consumption expansion and inclusive finance.

These three major categories of measures include 10 specific policies:

First, we will lower the reserve requirement ratio (RRR) by 0.5 percentage point, which is expected to provide about 1 trillion yuan in long-term liquidity to the market.

Second, we will improve the reserve requirement system by temporarily lowering the reserve requirement ratio for auto finance companies and financial leasing companies from the current 5% to 0%. 

Third, we will lower the policy rate by 0.1 percentage point, specifically reducing the seven-day reverse repo rate in the open market from the current 1.5% to 1.4%. This adjustment is expected to lead to a corresponding decrease of approximately 0.1 percentage point in the loan prime rate (LPR).

Fourth, we will reduce the interest rates of structural monetary policy tools by 0.25 percentage point. This includes various special structural tools and relending rates for supporting agriculture and small businesses, all decreasing from the current 1.75% to 1.5%. These rates represent the cost at which the central bank provides relending funds to commercial banks. The interest rates on pledged supplementary lending (PSL) will be reduced from the current 2.25% to 2%. PSL is a tool through which the central bank provides funds to policy banks.

Fifth, we will lower the interest rates on personal housing provident fund loans by 0.25 percentage point, reducing the rate for first-time homebuyers with loan terms over five years from 2.85% to 2.6%, with rates for other terms adjusted accordingly.

Sixth, we will increase the relending quota for technological innovation and technological transformation by 300 billion yuan. This will raise the total from the current 500 billion yuan to 800 billion yuan. This relending tool is already in place, and the quota has now been increased by 300 billion yuan, bringing the total to 800 billion yuan. The tool will continue to support the "two new" policies, which refer to large-scale renewal of equipment and the trading-in of consumer goods.

Seventh, we will establish a 500 billion yuan relending facility dedicated to service consumption and elderly care. This measure aims to encourage commercial banks to increase credit support for these sectors.

Eighth, we will increase the relending quota for agricultural and small businesses by 300 billion yuan. This complements our relending rate reduction, helping banks expand lending to agricultural enterprises, small and micro businesses, and private enterprises.

Ninth, we will optimize the two monetary policy tools that support the capital market. We're merging the 500 billion yuan swap facility for securities firms, funds, and insurance companies with the 300 billion yuan relending facility for stock repurchases and increased holdings, resulting in a total quota of 800 billion yuan.

Tenth, we will establish a risk-sharing tool for sci-tech innovation bonds. The central bank will provide low-cost relending funds that can be used to purchase these bonds. The central bank will collaborate with local governments and market-based credit enhancement institutions, utilizing diverse credit enhancement measures, such as joint guarantees, to share part of the default risk. This initiative aims to support the issuance of low-cost, long-term sci-tech innovation bonds for technology innovation enterprises and equity investment institutions.

These 10 specific policy measures across three major categories will be gradually disclosed on the PBC's website and implemented. Next, the PBC will continue to earnestly implement the various deployments of the CPC Central Committee and the State Council, implement a moderately loose monetary policy, and continuously adjust monetary policy based on domestic and international economic and financial conditions, as well as the operation of financial markets. We will also strengthen coordination with fiscal policy to promote high-quality economic development. Thank you.

Shou Xiaoli:

Thank you, Mr. Pan. Now, let's give the floor to Mr. Li.

Li Yunze:

Good morning. I'm very pleased to meet with you again and answer your questions. First, on behalf of the NFRA, I would like to extend my sincere gratitude to the media for your long-standing support for and attention to our financial regulatory work.

Since the beginning of this year, the NFRA has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council. Moreover, we've carefully followed the guidance from the April 25 meeting of the Political Bureau of the CPC Central Committee. We've strengthened our bottom-line thinking and expanded our policy measures. We've actively responded to external shocks and made solid progress in risk prevention, regulatory enforcement, and development promotion.

First, the overall performance of the financial sector remains stable. Currently, banking and insurance institutions are conducting all business activities in an orderly manner, with major regulatory indicators all within healthy ranges. Large financial institutions maintain a solid foundation, clearly serving as an anchor of stability for the financial system. Small- and medium-sized financial institutions have shown significant progress in both reform and risk reduction efforts. In the first four months, the capital adequacy ratio of banks and the solvency adequacy ratio of insurance companies maintained a steady upward trend. The non-performing loan ratio declined by approximately 0.1 percentage point year on year, while the provision coverage ratio increased by around 10 percentage points over the previous year. It can be said that the financial industry's safety buffer continues to strengthen.

Second, we're seeing the ongoing positive impact of our regulatory policies. We've strengthened the leading role of regulation and accelerated the improvement of regulatory frameworks. We've also revised and issued over 30 systems, including those related to corporate governance, regulatory ratings and consumer protection. We have formulated opinions on high-quality development in sectors such as banking, insurance and asset management, aiming to enhance specialized and professional development capabilities. We are guiding the industry to further advance cost reduction and efficiency improvement, thereby strengthening the foundation for sustainable development. We are improving the capital replenishment mechanism. Capital reinforcement for large commercial banks is accelerating, while enhancement plans for major insurance groups have been placed on the agenda. Meanwhile, local governments are also replenishing the capital of small- and medium-sized financial institutions through multiple channels in an orderly manner. These measures will further strengthen the resilience of the financial system and its capacity to support high-quality development.

Third, the quality and efficiency of services have been significantly improved. We have developed specialized implementation plans for technology finance, green finance, pension finance and inclusive finance. We've issued multiple financial policies to bolster consumption and foreign trade. In addition, we are increasing support for major national strategies, enhancing security capacity in key areas, promoting consumer goods trade-ins and encouraging large-scale equipment renewals. We have also strengthened efforts to safeguard people's livelihoods. In the first four months of this year, the banking and insurance sectors provided about 17 trillion yuan in new financing to the real economy through loans, bonds and other means. Since the expansion of the loan renewal without principal repayment policy in September last year, 4.4 trillion yuan in loans have been renewed for medium, small and micro enterprises, better meeting their ongoing financing needs. The insured amount by short-term export credit insurance rose 15.3% year on year, providing strong support for stabilizing foreign trade. From January to April this year, the insurance industry paid out about 1 trillion yuan in claims, and more than 10 million vehicles were covered by the new energy vehicle insurance. At the same time, insurance companies set aside more than 10 trillion yuan in long-term reserve funds for endowment and health insurance payments.

Next, we will follow the requirements of the CPC Central Committee and the State Council, further strengthening our sense of responsibility, urgency and initiative in ensuring implementation. We will intensify efforts to implement established policies, accelerate the preparation of incremental policies, continuously improve our response plans, and work to firmly consolidate the fundamentals of economic recovery and growth. In the near future, we will introduce the following eight incremental policies.

First, we plan to accelerate the rollout of financing systems compatible with the new model of real estate development. This will help further stabilize the real estate market.

Second, we plan to expand the scope of pilot projects for the long-term investment of insurance funds to bring more incremental funds into the market.

Third, we plan to adjust and improve regulatory rules to further lower the risk factors for insurance companies' stock investments, helping to stabilize and revitalize the capital market.

Fourth, we'll launch a package of policies to support financing for small and micro businesses and private enterprises as soon as possible. We'll deepen and solidify financing coordination mechanisms to help stabilize businesses and the broader economy.

Fifth, we will formulate and implement a series of policy measures in the banking and insurance sectors to support the development of foreign trade. We will provide targeted services to business entities most affected by tariffs and make every effort to help them maintain stable operations and expand markets.

Sixth, we plan to revise and issue regulatory measures on merger and acquisition (M&A) loans to promote the accelerated transformation and upgrading of industries.

Seventh, we plan to expand the range of eligible entities allowed to establish financial asset investment companies to include qualified commercial banks with nationwide business networks. This will help boost investment in sci-tech innovation enterprises.

Eighth, we will develop guidelines for the high-quality development of technology insurance to improve its risk sharing and compensation roles, and to provide strong support for technological innovation. Thank you.

Shou Xiaoli:

Thank you, Mr. Li, for your introduction. Now, I will give the floor to Mr. Wu.

Wu Qing:

Ladies and gentlemen, members of the media, good morning! First, thank you all for your long-term attention to and support of the capital market and the work of the CSRC. Since the beginning of this year, the CSRC has thoroughly implemented a series of decisions and deployments by the CPC Central Committee and the State Council, continuously advancing the implementation and effectiveness of the latest Nine-Point Guideline and related policies on the sound development of the capital market. As a result, the market has generally remained stable while making steady progress and showing positive momentum. Since early April, the U.S. government's tariff policy has severely impacted the international economic and trade order, causing volatility in global financial markets and putting considerable pressure on China's capital market. To meet this sudden and severe challenge, we, guided by the strong leadership of the CPC Central Committee and the State Council and following the coordination from the Office of the Central Financial Commission, cooperated with relevant departments, took swift action and implemented a comprehensive package of market-stabilizing measures, including policy support, capital interventions, and efforts to guide market expectations. The PBC, the NFRA, the State-owned Assets Supervision and Administration Commission of the State Council, and the State Administration of Foreign Exchange all sent strong policy signals. Central Huijin Investment took decisive actions. The National Council for Social Security Fund, along with securities and fund management institutions, banks, insurers and various investors, showed confidence and made positive efforts. Many listed companies helped stabilize stock prices through measures such as share buybacks and increasing their own holdings. As the saying goes, "When everyone adds wood to the fire, flame runs high; when we face challenges together, we can weather any storm." Thanks to the collective efforts of investors and other market participants, the A-share market continuously rebounded following a day of significant volatility. The market then stabilized and showed positive signs, demonstrating strong resilience and the ability to withstand risks.

The April 25 meeting of the Political Bureau of the CPC Central Committee emphasized the need to continuously stabilize and invigorate the capital market, fully reflecting the CPC Central Committee's high regard for stabilizing market performance and expectations as well as its high hopes for future development. We will make every effort to implement this directive, and continue to carry out the measures set forth in the four documents issued by the CSRC in March 2024 concerning the regulation of listed companies, securities firms and public offering funds, the establishment of first-rate investment banks and institutions, the improvements to the CSRC system, among other things, to ensure the sound development of the capital market. We are committed to fulfilling our responsibilities by stabilizing the market, boosting market vitality and enhancing market functions.

First, we will make every effort to strengthen and sustain the momentum of market stabilization and improvement. We will strengthen market monitoring and conduct comprehensive risk assessments, adjusting contingency plans as needed to respond to various external risks and impacts. We will fully support Central Huijin Investment in playing its role as a quasi-stabilization fund, with its effective operations in the market being backed by policies issued by the PBC. This approach is among the most robust in the world. We will work with the PBC to improve the long-term mechanism of monetary policy tools that support the capital market and further enhance the stabilizing role of all market participants.

Second, we will emphasize the important focus of serving the development of new quality productive forces. We're focusing on several key initiatives: We'll soon introduce policies and measures to deepen reforms of the Science and Technology Innovation Board (STAR Market) and ChiNext board, which we'll announce at an appropriate time. These reforms will enhance the inclusiveness and adaptability of our systems in terms of market tiers, review mechanisms and investor protections. We're also working to apply best practices from exemplary cases as quickly as possible. We'll soon release the newly revised Administration Measures for Significant Asset Restructuring of Listed Companies, along with related regulatory guidelines. These updates will enhance the capital market's role as the primary channel for mergers, acquisitions and corporate restructuring. We're actively developing sci-tech innovation bonds, optimizing the issuance and registration process, and enhancing credit support mechanisms. This will provide sci-tech enterprises with comprehensive financial services throughout their development journey.

Third, we're working to attract more medium- and long-term funds into the capital market. We'll guide listed companies to improve governance, enhance performance, and continuously increase investor returns. At the same time, we're intensifying efforts to attract long-term funds and working with all parties to expand both the volume and proportion of diverse medium- and long-term funds in the market. Today, we're releasing the Action Plan for Promoting the High-Quality Development of Public Funds. This plan better aligns the interests of managers and investors, creating shared success and mutual benefits. We're aiming to create a virtuous cycle where better investment returns attract more capital, which then leads to greater market stability.

The stability of the stock market affects the broader economic and social environment, as well as the immediate interests of hundreds of millions of investors. At present, China's economy continues to recover and gain momentum. All relevant authorities have made thorough preparations to respond to external shocks. This not only adds greater certainty to a global economy fraught with uncertainty, but also creates a solid foundation and favorable conditions for the stable operation of China's capital market. Our confidence in the capital market stems from four aspects: First, the strong leadership of the CPC Central Committee and the State Council, and their firm determination and effective arrangements to maintain market stability. As everyone can see, these are concrete actions producing tangible results. Second, the implementation of the "1+N" policy framework in the capital market has driven positive and profound changes in the market's internal structure, and a balanced investment and financing ecosystem is taking shape at an accelerated pace. Third, the technology sector in the A-share market is developing a clearer narrative and stronger clustering effect. As high-quality economic development continues, the potential of new quality productive forces will become increasingly apparent. The deep integration of technological and industrial innovation will inject valuable new vitality into the capital market. Fourth, by industry standards, the A-share market's valuation remains at a relatively low level. The price-to-earnings ratio of the CSI 300Index is only 12.3. Major Chinese market indices trade at significantly lower multiples than global benchmarks like the S&P 500. In light of significantly increasing instability in the global market, Chinese assets continue to increase in allocation value and attractiveness. Simply put, we have reliable economic growth, sound macroeconomic policies and strong institutional guarantees. These factors inject greater certainty into our economy and capital market amid an uncertain global environment.

In short, encountering wind and rain on the way forward is normal. Whether we face gentle breezes or violent storms, choppy waters or massive waves, we have all the necessary conditions, confidence and capabilities needed to ensure China's stock market develops in a stable and healthy manner. Thank you.

Shou Xiaoli:

Thank you, Mr. Wu. The floor is now open for questions. Please identify your media organization before asking your question.

CCTV:

Mr. Pan mentioned plans to lower both the reserve requirement ratio and policy rates, generating significant interest. Could you please provide more details about these measures? Thank you.

Pan Gongsheng:

Thank you for your question. Everyone is closely monitoring potential adjustments to key monetary policy instruments, particularly policy rates and reserve requirement ratios. Both the Central Economic Work Conference last December and this year's government work report called for implementing a moderately loose monetary policy, including timely cuts to both reserve ratio requirements and interest rates. A moderately loose monetary policy has several core elements. First, it maintains ample liquidity and relatively favorable financing conditions, including reasonable growth in macro financial metrics like aggregate financing and the M2 money supply, along with relatively low overall financing costs. Second, policy implementation must be flexible, with adjustments made as needed. We must comprehensively assess domestic and international economic and financial conditions, as well as financial market operations, and use various monetary policy tools to make dynamic adjustments. Third, the orientation of monetary policy refers to its overall stance. In recent years, the PBC has repeatedly lowered the reserve requirement ratio and interest rates, keeping monetary policy supportive and overall liquidity relatively ample.

Let me elaborate on the adjustments to the aggregate monetary policy measures I just announced.

First, we will lower the reserve requirement ratio (RRR). This time, we will lower the RRR by 0.5 percentage point, providing approximately 1 trillion yuan in long-term liquidity to the financial markets. By lowering the RRR, the PBC can optimize the structure of liquidity provision to the banking system, reduce banks' cost of liabilities and enhance the stability of their liabilities. At the same time, we will temporarily reduce the RRR for auto finance companies and financial leasing companies from the current 5% to 0%. These two types of institutions provide direct financial support to areas such as automobile consumption and equipment upgrade investments. Lowering their RRR will effectively enhance their ability to supply credit to specific sectors.

Second, regarding interest rate cuts, we'll implement three changes: First, we'll lower the policy rate by 0.1 percentage point. In our central bank's framework, the policy rate refers to the seven-day reverse repo rate in open market operations. It currently stands at 1.5% and will be lowered to 1.4%. Through market-based interest rate transmission, we expect this will lead to a corresponding 0.1 percentage point reduction in the LPR. At the same time, we will guide commercial banks to lower deposit interest rates accordingly through the self-regulatory mechanism for interest rates. Second, we will reduce interest rates on all structural monetary policy tools by 0.25 percentage point. Structural monetary policy tools generally refer to loans provided by the central bank to commercial banks. This move is expected to save banks approximately 15-20 billion yuan in funding costs annually, encouraging banks to strengthen their support for economic structural transformation. Third, we will reduce the interest rate on personal housing provident fund loans by 0.25 percentage point. For first-home loans with terms over five years, the rate will be cut from 2.85% to 2.6%, with rates for other loan terms adjusted accordingly. This is expected to save residents more than 20 billion yuan annually in provident fund loan interest payments, helping to support essential housing needs and stabilize the real estate market.

Meanwhile, the PBC will further improve its monetary policy framework, strengthen the implementation and supervision of interest rate policies, and enhance regulation of unreasonable market behaviors that might impede monetary policy transmission. This will help ensure smooth monetary policy transmission mechanisms and improve resource allocation efficiency.

These policy measures will provide financial institutions with a substantial amount of low-cost medium- and long-term funds, helping to reduce their debt costs and stabilize net interest margins. The policy effects will further translate to the real economy, leading to steady and potentially lower overall social financing costs, boosting market confidence, and effectively supporting stable growth in the real economy. Thank you.

21st Century Business Herald:

Mr. Wu, what impact might the additional tariffs have on the production and operations of A-share listed companies? How will the CSRC support listed companies in responding to this situation?

Wu Qing:

Thank you for your questions. Regarding the impact of additional U.S. tariffs, many A-share listed companies have recently provided disclosures through announcements and earnings calls. Overall, the U.S.'s excessive use of tariffs has severely disrupted the global economic and trade order. Listed companies' operations will inevitably face direct or indirect impacts, some larger, some smaller. Companies with a higher proportion of exports to the U.S. will be more significantly affected. General Secretary Xi Jinping has noted that "China's economy is not a pond, but an ocean." A-share listed companies, as representatives of China's outstanding business community, possess strong resilience and adaptability. First, China's massive domestic market and untapped consumer potential are the greatest sources of confidence. Nearly 90% of A-share listed companies' revenue comes from the domestic market. The stable and improving fundamentals of the Chinese economy, with its long-term positive outlook, ensure that listed companies will continue to see steady performance growth. In 2024, three-quarters of listed companies were profitable and half showed profit growth. Notably, as artificial intelligence leads the technology industry wave, related sectors like semiconductors and consumer electronics have seen net profit increases of 13.2% and 12.9% year on year, respectively. Meanwhile, we've seen market-wide dividends and share buybacks reaching historic highs, with the CSI 300 index dividend yield reaching 3.6%. Looking at quarterly reports, listed companies' net profits increased 3.6% year on year in the first quarter of this year. Among them, listed companies in the real economy saw net profits rise 4.3% year on year. Second, significant progress has been made in building diversified export markets. Since the U.S. imposed additional tariffs on China in 2018, A-share listed companies have gradually adjusted and improved their overseas production capacity arrangements. Those with the necessary conditions have been making adjustments and further exploring new markets. Export revenue grew from 4.9 trillion yuan in 2018 to 9.4 trillion yuan in 2024, an increase of 92%, nearly doubling. Meanwhile, direct exports to the U.S. now make up a much smaller portion of total revenue, with 91% of companies reporting that U.S. exports account for less than 10% of their sales. Third, export competitiveness continues to improve. "Made in China" has become deeply integrated into global industrial and supply chains. A-share listed companies possess strong competitive advantages in consistent product quality, economies of scale in production, and technological innovation. Since April 7 — less than a month ago — nearly 350 listed companies have announced share buyback and stake increase plans, reflecting their strong confidence in their own value and development prospects.

Listed companies are an important part of China's economy and the cornerstone of the capital market. Moving forward, the CSRC will continue to promote the functions of the capital market. While strengthening supervision, we will also strive to provide supportive and considerate oversight, doing our best to help affected enterprises cope with the impact of increased U.S. tariffs. First, we will intensify outreach and assistance efforts. From last year to the end of March this year, the CSRC, together with local governments, visited 2,352 listed companies and helped resolve over 3,300 key challenges and difficulties faced by these enterprises. The commission will continue to work with relevant parties to advance this effort. Second, we will optimize regulatory arrangements. For listed companies significantly affected by tariff policies, we will adopt a more flexible regulatory approach regarding equity pledges, refinancing and the use of raised funds, in order to help address their difficulties and provide relief. We will further improve rules regarding exemptions from information disclosure and continue to guide listed companies in strengthening effective communication with investors. Third, we will support transformation and upgrading, especially by encouraging listed companies to achieve this through M&A activity. Since the release of the Opinions on Deepening the Reform of the M&A and Restructuring Market for Listed Companies last year, nearly 1,400 restructuring projects have been disclosed in the Shanghai and Shenzhen stock markets, up 40% year on year. Of these, more than 160 were major asset restructurings, marking a 2.4-fold increase from the previous year. We are currently accelerating the revision of the Administration Measures for Significant Asset Restructuring of Listed Companies and related regulatory guidelines. This includes further improving the supporting measures for the Opinions on Deepening the Reform of the M&A and Restructuring Market for Listed Companies to more strongly support mergers and acquisitions by listed companies. Following industrial logic, we aim to strengthen companies' core capabilities, stimulate vitality, enhance quality—while continuously building greater innovation capacity and risk resilience. Fourth, we will strengthen support by leveraging multi-level capital market products and services. We support listed companies in utilizing various tools such as stocks, bonds and REITs for direct financing. We also encourage eligible domestic enterprises to list overseas in accordance with laws and regulations, enhancing their ability to expand in global markets. Thank you.

Economic Daily:

The real estate and stock markets are important indicators of economic performance, as Mr. Li just mentioned. What considerations does the NFRA have in stabilizing the real estate market and the stock market? Thank you.

Li Yunze:

Thanks for your question. Stabilizing the real estate and stock markets is of great significance for boosting social expectations and facilitating domestic demand circulation. The April 25 meeting of the Political Bureau of the CPC Central Committee once again made clear requirements for stabilizing the real estate and stock markets. The NFRA is resolutely implementing the arrangements and requirements of the CPC Central Committee and the State Council, coordinating a comprehensive set of measures and actively advancing related work.

To stabilize the real estate market, we have worked to expand and enhance the effectiveness of the urban real estate financing coordination mechanism, supporting efforts to ensure the delivery of houses. Currently, "white list" loans approved by commercial banks have reached 6.7 trillion yuan, supporting the construction and delivery of more than 16 million residential units. This has strongly protected homebuyers' legitimate rights and interests while providing important support for stabilizing the real estate market. The positive changes in the real estate market are also reflected in the credit data. In the first quarter of this year, outstanding real estate loans increased by more than 750 billion yuan. Within this total, new personal mortgage loans saw their largest quarterly increase since 2022 while housing rental loans grew 28% year-on-year. Recently, several leading international investment institutions that have visited China have expressed their belief that the investment value of the Chinese real estate market is gradually becoming apparent. Next, we will accelerate improvements to a series of financing systems that align with the new model of real estate development, including loan management methods for real estate development, personal housing and urban renewal. We will guide financial institutions to maintain stability in real estate financing, effectively meet the demand for both essential and upgraded housing, strengthen the funding supply for high-quality housing, and help continuously consolidate the stable momentum of the real estate market.

Regarding stock market stabilization, we'll continue to fully leverage the advantages of insurance funds as patient, long-term capital, intensifying efforts to encourage their entry and support market stability. Earlier, we launched pilot reforms to promote long-term insurance fund investment, injecting significant new capital into the stock market. Last month, we further increased the upper limit for equity asset investments by insurance funds, creating additional investment capacity. Next, we will introduce several specific measures to continue supporting the stabilization and invigoration of the capital market. First, we will further expand the scope of the pilot program for long-term investment by insurance funds. We plan to approve an additional 60 billion yuan in the near future, injecting more incremental funds into the market. Second, we will adjust the solvency regulation rules, further reducing the risk factor for stock investments by 10% and encouraging insurance companies to increase their market participation. Third, we will promote improvements to the long-term evaluation mechanism, motivate institutional participation, and encourage the matching of long-term capital with long-term investment opportunities. Thank you.

Yicai:

Mr. Pan just mentioned that structural monetary policy tools will be created and vigorously implemented, which are expected to play a positive role in economic structural adjustment. Could you please elaborate further on this? Thank you.

Pan Gongsheng:

Traditionally, monetary policy is mainly a tool for aggregate management. However, in the operation of the Chinese economy, as everyone knows, many contradictions and challenges are structural, and if the structure is not adjusted properly, it is difficult for aggregate control to be effective. Structural monetary policy tools are helpful in promoting the resolution of some structural contradictions and problems. In recent years, the PBC has actively explored this area. Following the principles of "focusing on key areas, taking reasonable and appropriate steps, and knowing when to introduce and withdraw," we have launched several structural monetary tools, gradually forming a monetary policy framework with aggregate tools as the mainstay and structural tools as a supplement. As of the end of April, there were a total of nine structural policy tools, mainly focusing on key areas, major strategies and weak links of the national economy. The outstanding balance was about 5.9 trillion yuan, accounting for 13% of the PBC's balance sheet, which is at a reasonable level.

Structural monetary policy tools, commonly known as relending, are loans provided by the central bank to financial institutions. These tools are usually embedded with incentive mechanisms to guide commercial banks to independently issue loans to market entities. In recent years, guided by structural monetary policy tools, the credit allocation structure of financial institutions has undergone a qualitative change. Everyone is well aware that in previous years, commercial banks had significant risk exposures in areas such as real estate and local financing vehicles on their balance sheets. In recent years, such risk exposures have gradually converged. The intensity, suitability, and precision of financial support for the real economy have significantly improved.

This time, we are introducing and implementing a series of structural monetary policy tools, which involve both an increase in scale and preferential pricing, to better leverage their guiding effect.

First, we are lowering the interest rates on structural monetary policy tools by 25 basis points. The interest rates on structural monetary policy tools such as the agricultural and small loans, technological innovation and transformation loans, carbon emission reduction support tools, stock repurchase and increase loans, and affordable housing loans will be lowered from the current 1.75% to 1.5%. Meanwhile, the interest rate on pledged supplementary lending to policy banks will be reduced from 2.25% to 2%.

Second, we are creating a 500 billion yuan relending tool for service consumption and elderly care. At present, the focus of China's economic policy is on expanding domestic demand and vigorously boosting consumption, with service consumption being an important point for upgrading and expanding consumption. In order to enhance and improve the supply of service consumption, the PBC has established the "service consumption and pension reloan" tool to encourage and guide financial institutions to increase financial support for key areas of service consumption such as accommodation, catering, culture, entertainment, education and the pension industry. It also collaborates with fiscal and other industrial policies to better meet the needs of the public for consumption upgrading. This tool is also an innovative measure by the PBC to support boosting consumption, with a quota of 500 billion yuan.

Third, we will raise the relending quota for sci-tech innovation and technical transformation from 500 billion yuan to 800 billion yuan. This tool was launched in April 2024 by the PBC, in collaboration with the NDRC and Ministry of Science and Technology, with an initial quota of 500 billion yuan. It has effectively supported tech-focused SMEs and technical transformation and equipment renewal in key areas. This time, we will increase the relending quota by 300 billion yuan, bring it to 800 billion yuan, supporting the expansion of the "two renewal" policies.

Fourth, we will increase the relending quota for agriculture and small businesses by 300 billion yuan. With this increase, the total quota for such relending will reach 3 trillion yuan. Combined with the reduction in the relending interest rate this time, this will have a coordinated volume-price effect, further supporting commercial banks in expanding lending to agricultural, micro and small enterprises, and particularly privately owned SMEs.

In the future, based on the economic and financial conditions and the effectiveness of current tools, we may expand the scale, refine the policy features, or introduce new policy tools. Thank you.

South China Morning Post:

Under the backdrop of the China-U.S. trade conflict, are there other relief measures for businesses with high dependence on foreign trade, apart from "no discontinuation or withdrawal of loans"? What specific support measures are there for small and micro enterprises? Thank you.

Li Yunze:

Thank you for your questions. In recent years, we have continued to deepen structural reforms on the financial supply side, guiding banking and insurance institutions to improve their service alignment and encouraging the development of differentiated, personalized products to better meet the diverse financial needs of enterprises of various sizes and types. In particular, to address the financing challenges faced by small and micro enterprises and private enterprises, we have taken the lead in establishing a dedicated financing coordination mechanism to promote the rapid and direct delivery of low-cost funds to businesses. So far, visits have been made to over 67 million business entities across the country, and 12.6 trillion yuan in loans have been issued, of which about one-third are credit loans.

Soon, the NFRA will work with relevant departments to introduce a package of policies supporting financing for micro, small and private enterprises, focusing on four key aspects:

First, we will increase supply. We'll continue to thoroughly and solidly implement the financing coordination mechanism while conducting extensive onsite surveys of enterprises. We'll increase the issuance of first-time loans, the renewal of loans and credit loans. Through these efforts, we'll drive the growth rate of inclusive small and micro enterprise loans to be higher than the average growth rate of various loans.

Second, we will reduce costs. We'll promptly pass on market interest rate benefits and internal fund transfer pricing advantages, while regulating cooperation between financial institutions and third parties. These measures will promote a steady decline in overall financing costs, further reducing the burden on enterprises.

Third, we will improve efficiency. We will drive banks to simplify internal procedures, improve loan approval efficiency, and flexibly meet various financing needs to alleviate the pressure on enterprises' capital turnover.

Fourth, we will optimize the environment. We will strengthen coordination among monetary, fiscal, tax, industrial and regulatory policies. We will accelerate improvements to relevant systems for guarantee-based credit enhancement, credit restoration and classification standards, creating a more conducive development environment.

Against the backdrop of increasing external shocks, we will formulate and implement a series of policies and measures for the banking and insurance sectors to support foreign trade development. Following market-oriented and law-based principles, we will continuously strengthen financial support.

First, we will strengthen financial relief for enterprises facing difficulties. We will expand the financing coordination mechanism to cover all foreign trade enterprises, and drive banks to accelerate the implementation of various policies to stabilize foreign trade, ensuring all eligible businesses can receive and renew loans as needed. We will provide targeted services using customized approaches for individual enterprises that are significantly affected by tariffs and facing temporary operational difficulties.

Second, we will intensify efforts to stabilize exports. We will optimize export credit insurance regulatory policies, enhance underwriting capacity, offer preferential rates, implement expedited claims processing and advance payment on claims, and stabilize enterprises' confidence in receiving orders and exporting. We will urge institutions to provide good financial services for key areas such as cross-border e-commerce and overseas warehouses. We'll support the development of specialized insurance, and guide banks to offer comprehensive, one-stop services that support the development of new foreign trade business models.

Third, we will contribute to expanding domestic sales. We will strengthen financing support for foreign trade enterprises shifting from exports to domestic sales. We'll guide the formation of domestic trade credit insurance consortiums, launch specialized products, and expand both the coverage and amounts of domestic trade credit insurance. We will take multiple measures to help boosting consumption and expanding domestic demand, open up space for foreign trade enterprises to expand sales channels, and help accelerate the integration of domestic and foreign trade. Thank you.

Market News International:

My questions are for Mr. Wu. In today's complex and volatile international environment, market concerns are growing that trade tensions might spread to financial and other sectors. Will that affect the opening up of China's capital market? What measures is the CSRC considering in response? Thank you.

Wu Qing:

Thank you for your questions. Opening up is China's basic state policy and an essential prerequisite for the high-quality development of the capital market. In recent years, the CSRC has firmly implemented the CPC Central Committee's important directives on improving the systems and mechanisms for high-standard opening up and promoting high-standard financial opening up. We have prudently advanced the comprehensive two-way opening up of markets, products and institutions, continuously enhanced convenience for foreign investment in domestic markets, and optimized the qualified foreign investor system. Moreover, we have steadily expanded cross-border connectivity, completely removed restrictions on foreign ownership in institutions, and improved the efficiency of overseas listing registration. Currently, foreign-funded securities firms and other foreign investment have become important participants in the A-share market, with foreign investors holding approximately 3 trillion yuan in tradable A-share market value through the QFII program, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and other channels.

Despite the current complex and volatile external situation, the strategic direction of China's high-quality economic development remains fairly clear and firm. The stability and predictability of macroeconomic policies have further increased, especially with timely adjustments to these policies. All these factors have further strengthened foreign investors' confidence in participating in China's capital market. Recently, we've observed many foreign institutions upgrading their ratings on Chinese stocks, conducting intensive research on A-share listed companies, and showing broad interest in and positive evaluations of China's capital market and Chinese assets. As General Secretary Xi Jinping has pointed out, investing in China is investing in the future. Looking ahead, the CSRC will unwaveringly advance the high-standard opening up of the capital market, further improve the framework for opening up, and steadily introduce a series of practical measures for opening up. First, we will continue to expand the openness of institutions. We will further optimize market access services for qualified foreign investors, efficiently handling qualification approval and account opening as one integrated process, and further expand their investment scope. We will support eligible foreign-funded institutions in applying for securities and funds investment consultation qualifications. We will encourage foreign investment institutions to establish yuan-denominated funds for investment in China in accordance with regulations. Second, we will further enrich product offerings. We are moving toward opening up the futures and options market to qualified foreign investors, and support domestic and foreign futures exchanges in expanding cooperation on commodity futures settlement price authorization. We will deepen the opening up of exchange bond markets and include REITs and other products as investment choices under the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs. Third, we will continuously deepen market opening up. We will review and optimize the overseas listing registration mechanism, procedures and related elements to improve registration quality and efficiency. We will strongly support Shanghai's development as an international financial center and strengthen Hong Kong's position as an international financial center. We will steadily advance measures for cooperation between Chinese mainland and Hong Kong, such as including yuan stock trading counters in the Stock Connect program and supporting the launch of cross-border investment and risk management products in Hong Kong. Fourth, we will strengthen bilateral and multilateral cross-border regulatory cooperation. We will adhere to respecting development laws and various rules and norms, actively shape a stable, transparent and predictable regulatory environment, and further strengthen cooperation in securities and audit regulation. We will protect the legitimate interests of enterprises in overseas markets. We'll also create conditions to support high-quality Chinese companies listed overseas in returning to stock markets on the Chinese mainland and Hong Kong. At the same time, we'll ensure the protection of investors' legitimate rights and interests. Thank you.

Financial Times:

I've noticed that the NFRA has launched several pilot measures to support scientific and technological innovation. In April, it worked with multiple ministries to issue the Implementation Plan for the High-Quality Development of Sci-Tech Finance in the Banking and Insurance Industries. How has the implementation of these policies progressed so far? What other supportive measures will be taken? Thank you.

Li Yunze:

Thanks for your questions. Developing sci-tech finance is essential for deeply integrating technological innovation with industrial innovation. We continue to urge banks and insurance companies to increase their support for technological innovation and to actively explore new approaches to tech finance. So far, the growth rate of loans to high-tech enterprises is nearly three times the average growth rate of all loans, and the guarantees provided by technology insurance have exceeded 2 trillion yuan. The various pilot policies we have introduced have all made positive progress. The pilot program for equity investments by financial asset management companies has been strengthened and expanded, with the total amount of intended agreements now exceeding 380 billion yuan. M&A loans for technology enterprises are progressing in an orderly manner, and pilot banks in 18 cities have already completed their first transactions. The comprehensive pilot program for the intellectual property financial ecosystem is steadily advancing, and service platforms have already been established in many locations to help resolve issues such as IP pledge registration, valuation and disposal. The service model of sci-tech insurance has been continuously optimized, and the insurance compensation mechanisms for the first set of major technical equipment and first batch of new materials have also been improved. At the end of March this year, we established China's first commercial aerospace insurance pool in Beijing. Forming an insurance pool is a common international practice in which multiple insurance companies share the risks for an emerging industry or sector. This approach is especially important for the growth of startup industries and sectors that face high uncertainty.

Next, we will focus on existing pilot projects, actively exploring new models, and improving the sci-tech finance system to better support technological innovation. In doing so, we aim to fully serve the development of new quality productive forces.

First, we will optimize credit services. We will promote the establishment of a dedicated credit support mechanism for technological innovation, support banks in setting up specialized technology finance institutions in an orderly manner, and encourage the development of a long-term performance evaluation system for sci-tech loans. Recently, we have been revising the regulations on M&A loans and will issue them as soon as possible to further unlock the potential of M&A loans and accelerate industrial transformation and upgrading.

Second, we will strengthen the role of insurance in risk protection. We will accelerate the development of guidelines for the high-quality growth of sci-tech insurance and make better use of its role in risk sharing and compensation. With the support of the insurance pool mechanism, we will provide stronger insurance guarantees for major scientific and technological breakthroughs and expand insurance products in emerging fields such as robots and low-altitude aircraft, ensuring the innovation-driven development of enterprises.

Third, we will expand equity investment. We will encourage insurance funds to actively participate in venture capital investment in accordance with market principles and to make major equity investments in unlisted technology companies in an orderly manner. We'll support eligible national commercial banks in establishing financial asset investment companies, with approvals to be granted gradually. Today, we will approve one such company, amid our efforts to increase investment in sci-tech innovation enterprises. Thank you.

National Business Daily:

Mr. Pan just mentioned that the central bank launched two monetary policy tools to support the capital market in the fourth quarter of last year. Everyone is curious: what efforts has the central bank made over the past six months? What effects have been achieved by applying these tools according to your evaluation? Looking ahead, what steps will be taken to enhance them? Thank you.

Pan Gongsheng:

Last year, the PBC created two tools to support the capital market in collaboration with the CSRC and NFRA. I announced this development here in September last year. The initial quotas for these two supportive tools were 500 billion yuan and 300 billion yuan, respectively. They met market demand and were widely welcomed. These tools played an important role in boosting investor confidence, improving financial market expectations, and enhancing the inherent stability of the capital market.

These two tools are designed entirely based on market principles, providing important support for listed companies to manage market value through repurchasing shares and increasing holdings. Swap facilities enhance the access to capital of participating entities, while reloan mechanisms for repurchasing shares and increasing holdings provide low-cost funds to commercial banks for issuing related loans. The market participants using these two tools can independently decide the timing and scale of stock purchases. Currently, the swap facility tool has been used twice, with a total amount of 105 billion yuan. Over 500 listed companies and major shareholders have announced the use of loans for stock buybacks and increased holdings with a total amount of about 300 billion yuan.

These two tools have embedded counter-cyclical adjustment properties, mainly to provide support. The logical mechanism behind them is that when the capital market is significantly undervalued, securities institutions, listed companies and major shareholders will have a stronger willingness to use the low-cost funds provided by these two tools to buy stocks, thereby breaking the negative cycle of market downturns. For instance, last November, around New Year's Day this year, and in early April when the U.S. imposed excessive tariffs, the usage of swap facilities increased significantly. Listed companies were also quite active in repurchasing shares and increasing holdings. The internal stability mechanism established through these measures has effectively corrected market overshooting and stabilized expectations in the capital market.

Throughout the policy implementation process, the PBC has been working closely with the CSRC and NFRA to continuously summarize practical experiences. These two tools are also frequent topics in my discussions with Mr. Wu. Based on feedback from various stakeholders, we have continuously refined the policy elements of these tools and enhanced their implementation efficiency.

First, the total quota of 800 million yuan for the two tools has been combined for unified use. With the quotas now integrated, funds can be allocated between both tools, which enhances the convenience and flexibility, better meeting the needs of different types of market entities.

Second, in terms of swap facilities, the CSRC has expanded the pool of participating institutions from the initial 20 brokerage firms and funds to 40 institutions. The range of acceptable collaterals now covers Hong Kong-listed shares and restricted shares, among others. Additionally, the CSRC has guided financial infrastructure providers to lower their service fees.

Third, we've extended the maximum term for the stock repurchase and increased holdings relending facility from one year to three years, encouraging banks to issue credit loans. We have also reduced the required proportion of listed companies' own funds used in stock repurchases and increased holdings from 30% to 10%. Additionally, in consultation with the State-owned Assets Supervision and Administration Commission, we have included two state-owned capital operation platforms — China Chengtong Holdings and China Reform Holdings — into the support framework. These two companies have already announced plans to use a total of 180 billion yuan from these tools to increase their holdings in listed companies.

In addition, as Mr. Wu just mentioned, Central Huijin Investment plays an important strategic role in maintaining the stability of the capital market. The PBC firmly supports the company in intensifying its purchases of stock market index funds when necessary and will provide ample refinancing support to resolutely safeguard the stable operation of the capital market. Thank you.

Xinhua Finance:

The questions go to Mr. Wu. You just mentioned the action plan to promote the high-quality development of public funds. Could you update us on the progress that's been made? What impact will this action plan have on the capital market? Thank you.

Wu Qing:

Thank you for your questions. At two press conferences in January and March this year, I talked about progress made in encouraging medium- and long-term funds to invest in the capital market and outlined the basic approach to public fund reform. Since the meeting held by the Political Bureau of the CPC Central Committee on Sept. 26 last year, the CSRC has implemented the decision and arrangement to "steadily promote public fund reform." We've conducted more than 30 special investigations, gathering feedback from all stakeholders, including investors and institutions. These efforts focused on addressing the pain points and bottlenecks commonly reported by investors. The action plan to promote the high-quality development of public funds has been finalized and will be released and implemented today. While I've previously shared the basic approach to public fund reform with you, the complete details are available on our website. This reform initiative launches just as the investment world has been reflecting on Warren Buffett's widely discussed farewell address. Buffett is a widely respected investor who will retire this year. I believe the most valuable lessons we can take from him are value investing, long-term investing, rational investing and his dedication to delivering returns to investors. These basic principles are timeless. This is precisely what our reform aims to promote. This era needs a new generation of investment leaders. We already have a group of exceptional companies and entrepreneurs. Therefore, I'm confident we'll see the rise of outstanding investors and investment institutions to match. Some critical rules are essential for cultivating this potential. The focus of this reform centers on several priorities:

First, we will strengthen the alignment of interests with investors. The focus is on reforming the fund operation model and urging the industry to return to its purpose of "managing wealth on behalf of clients who have entrusted their assets." We will optimize the fee structure for actively managed equity funds. Those with poor performance must charge lower management fees. Through a floating management fee mechanism, we will end the practice where fund companies collect the same fees regardless of whether returns are good or bad. At the same time, we will incorporate metrics that are directly related to investors' interests, such as whether performance exceeds benchmarks and how investors' profits or losses fare, into the assessment systems for both fund companies and fund managers. This will push fund companies to shift from prioritizing "scale" to emphasizing "returns." In addition, we will raise the required proportion of bonuses that fund company executives and fund managers must invest in their own products while moderately extending the lock-up period. This will ensure these key personnel have interests that are more closely aligned with those of investors.

Second, we will emphasize enhancing the stability of fund investment behavior. To address issues such as fund style drift and false advertising of investment products, we will require each fund to set clear performance comparison benchmarks that serve as objective measures of real performance. These benchmarks will help ensure that a fund's investment activities remain consistent with its stated name and positioning, allowing investors to accurately assess what they are investing in. At the same time, to strengthen the foundation for long-term investing, we will establish comprehensive incentive and restraint mechanisms involving regulators, self-regulatory organizations, rating agencies and the fund companies themselves. We will require fund companies to implement long-term performance evaluations, ensuring that performance over periods of more than three years should not be less than 80% of the assessment. This will reduce the tendency for fund managers to chase short-term gains and sell in downturns, and help improve long-term returns for investors.

Third, we will focus on enhancing the ability to serve investors. We will guide fund companies and fund sales institutions to improve how they allocate resources across investment research, product design, risk management and other areas to better serve investors. We will promptly issue regulatory provisions for public fund investment advisors, promote standardized development, and provide investors with appropriate asset allocation portfolios. At the same time, we will accelerate the launch of a direct sales service platform for institutional investors to facilitate the participation of various institutional investors in fund investments.

Fourth, we will focus on the strategic direction of developing and strengthening equity funds. Equity investment is the key area where public funds can create unique value for investors. Since September last year, the scale of equity funds has increased from 7 trillion yuan to 8.3 trillion yuan. Looking ahead, we will strengthen regulatory guidance and optimize the classification evaluation mechanisms for fund companies and fund sales institutions to promote increased issuance and sales of equity funds. We'll actively promote product innovation and continuously enrich index funds and actively managed funds that align with national development goals and are more conducive to creating long-term returns for investors. Building on the previously established five-working-day fast registration mechanism for stock ETFs, we will further significantly improve the registration efficiency for actively managed equity funds and other fund products that meet certain equity investment proportion requirements.

We believe that with the implementation of the reform plan, public funds will place greater emphasis on the best interests of investors, and investors' sense of gain will be further enhanced. Thank you.

Shou Xiaoli:

Let's continue with the questions. The press conference has been underway for nearly 85 minutes. Due to time constraints, we will take one last question.

Phoenix TV:

Mr. Pan, at this year's "two sessions" press conference, you mentioned the innovative launch of the science and technology board in the bond market. How is that progressing? You just mentioned the creation of a risk-sharing tool for sci-tech innovation bonds. What are the considerations behind this? Thank you.

Pan Gongsheng:

Building a financial system for scientific and technological innovation is a crucial focus for the high-quality development of financial services to the real economy. It is also a vital part of deepening the structural reforms on the financial supply side. In recent years, the PBC, in collaboration with relevant departments, has comprehensively utilized tools such as credit, bonds, equity and insurance to continuously enhance financial support for technological innovation, accomplishing considerable work and accumulating experience. Just now, Mr. Li and Mr. Wu discussed many aspects related to this.

Earlier, the PBC, together with the CSRC, the NFRA, the Ministry of Science and Technology, and other departments, actively prepared to launch the science and technology board in the bond market to support three types of market entities: financial institutions, sci-tech enterprises and equity investment institutions. At the same time, considering the characteristics of sci-tech enterprises and equity investment institutions, we have improved institutional arrangements for the issuance, trading, information disclosure and credit rating of sci-tech innovation bonds, establishing a supporting rule system that is compatible with the characteristics of technology innovation financing. The relevant policies and preparatory work are basically in place. Currently, the market response has been very positive, with financial institutions, sci-tech enterprises and equity investment institutions of various types actively communicating with the PBC and CSRC, showing strong interest in issuing sci-tech innovation bonds. According to preliminary statistics, nearly 100 market institutions currently plan to issue more than 300 billion yuan in sci-tech innovation bonds, with expectations for even greater participation in the future.

In addition, in order to support equity investment institutions in issuing long-term bonds for financing on the science and technology board, the PBC, in collaboration with the CSRC, has created a sci-tech innovation bond risk-sharing tool, drawing on the experience of establishing the private enterprise bond financing support tool in 2018. As you are all aware, equity investment institutions play a key role in supporting technological innovation, and especially in promoting capital formation. Statistics show that they have supported nearly 90% of the companies listed on the Science and Technology Innovation Board and 60% of the companies listed on the Growth Enterprise Market in China. However, equity investment institutions seldom issue bonds in the bond market, and issuing bonds themselves might involve shorter terms and relatively higher costs.

Drawing from the experience of the 2018 private enterprise bond financing support tool, the PBC provides low-cost relending funds, which can be used to purchase sci-tech innovation bonds. Together with local governments and market-based credit enhancement institutions, various credit enhancement measures have been taken to jointly share the default loss risk of bond investors. This can effectively reduce the bond financing costs for equity investment institutions and support them in issuing longer-term bonds, such as eight- or 10-year bonds.

In the early stages of policy formation, we invited several experts from equity investment and well-known private equity investment institutions to provide their opinions in person. They offered many valuable policy suggestions and expressed high expectations for the introduction of this policy tool.

In short, through specific policy arrangements such as the science and technology board in the bond market and risk-sharing tools, we aim to further broaden the financing channels for sci-tech enterprises and equity investment institutions, stimulate market vitality and confidence, attract more social capital into the field of technological innovation, and promote mutual promotion and a positive cycle between the private equity financing market and the stock issuance trading market. Thank you.

Shou Xiaoli:

Thank you to all the speakers and friends from the media for your participation. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Wang Yiming, Mi Xingang, Liu Sitong, Huang Shan, Wang Xingguang, Zhang Rui, Xiang Bin, Xu Kailin, Zhang Tingting, Chen Xinyan, Yuan Fang, Zhou Jing, Liu Qiang, Li Huiru, Zhang Junmian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Li Jing, vice president of the Organizing Committee of TWG 2025 Chengdu, and vice minister of the General Administration of Sport of China

Mr. Yang Xingping, vice president of the Organizing Committee of TWG 2025 Chengdu, and vice governor of Sichuan province

Mr. Wang Fengchao, vice president and secretary general of the Organizing Committee of TWG 2025 Chengdu, and mayor of Chengdu

Chairperson:

Mr. Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 29, 2025

Zhou Jianshe:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The 12th edition of The World Games (TWG) will take place in Chengdu, Sichuan province. As we mark the 100-day countdown to The World Games 2025 Chengdu, we are delighted to have with us today Mr. Li Jing, vice president of the Organizing Committee of TWG 2025 Chengdu and vice minister of the General Administration of Sport of China; Mr. Yang Xingping, vice president of the Organizing Committee of TWG 2025 Chengdu and vice governor of Sichuan province; and Mr. Wang Fengchao, vice president and secretary general of the Organizing Committee of TWG 2025 Chengdu as well as mayor of Chengdu. They will brief you on the preparations for TWG 2025 Chengdu and take your questions.

First, I'll give the floor to Mr. Li for his introduction.

Li Jing:

Hello! Today marks the 100-day countdown to TWG 2025 Chengdu. On behalf of the General Administration of Sport of China and the Organizing Committee of TWG 2025 Chengdu, I would like to extend our heartfelt gratitude for your longstanding concern, support and contributions to the development of sports.

The World Games represent the highest-level international multi-sport event for non-Olympic disciplines. The Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to the preparations for TWG 2025 Chengdu, incorporating this endeavor into this year's government work report. Successfully hosting TWG 2025 Chengdu holds significant importance in advancing the Healthy China initiative and building China into a leading sporting nation. It also plays a vital role in promoting economic and social development, enhancing mutual learning among civilizations, and contributing to the building of a community with a shared future for mankind.

Next, I will focus on introducing the organization of the competitions and the participation of the Chinese delegation in The World Games.

First, the organization of the competition is proceeding to a high standard.

TWG 2025 Chengdu will feature 34 sports, 60 disciplines and 255 events. The General Administration of Sport of China, in collaboration with Sichuan province and the city of Chengdu, has been implementing the principles of hosting a "green, inclusive, open and clean" Games, as well as the requirements of a "simple, safe and splendid" event throughout the entire preparation process. The venue layout has been finalized, with 27 venues designated to host competitions. Competition teams have been established for 21 of these venues, and professionals with strong expertise and extensive event-organizing experience have been appointed to ensure smooth venue operations. The daily competition schedule has also largely been finalized. The softball and floorball events will kick off one day before the opening ceremony.

We've organized and completed 25 test activities based on domestic and international events. These have effectively verified our preparations in key areas, including equipment and facilities, organizational operations, timing and scoring, local support and command coordination. This has laid a solid foundation for the smooth operation of the event.

Second, efforts to organize team participation are well underway.

The Chinese delegation will compete with full strength in these Games. The General Administration of Sport is steadily progressing in forming our national delegation. So far, China has qualified for 28 major events and 152 sub-events, with about 330 athletes expected to compete. This will be the largest Chinese delegation ever at TWG, both in terms of events and the number of athletes.

The slogan of TWG 2025 Chengdu is "Boundless Sports, Countless Wonders." Our Chinese athletes will fully embody this spirit. They come from all walks of life, bringing different backgrounds and vibrant energy. We've got professional athletes from our national sports system, but also outstanding competitors from universities, businesses, public institutions and community sports clubs. We even have para-athletes in freediving, ju-jitsu, and archery selected by the China Disabled Persons' Federation. They'll compete fairly with athletes from around the world on the field and engage in friendly exchanges off the field. They will fully showcase how far China has come in sports development, particularly in non-Olympic sports, and demonstrate the spirit and energy of Chinese athletes. The General Administration of Sport and the China Disabled Persons' Federation will make sure the athletes get all the support they need during these final preparation stages. We're striving for excellence, not just in terms of athletic performance, but also in promoting sportsmanship.

We look forward to your continued coverage and support as we gear up for TWG 2025 Chengdu. Thank you.

Zhou Jianshe:

Thank you very much for that excellent overview. Now I'll hand things over to Mr. Yang.

Yang Xingping:

Good afternoon, everyone. First, I want to thank everyone for your interest and support for Sichuan, especially for TWG 2025 Chengdu.

TWG 2025 Chengdu marks another major international multi-sport event hosted by Sichuan, following the 2023 International University Sports Federation (FISU) World University Games. Since winning the bid, Sichuan has incorporated guidance from the CPC Central Committee and the State Council into every aspect of our planning and preparation process. With the overall direction from the General Administration of Sport and strong backing from relevant ministries, we've mobilized all available resources to effectively advance our preparations.

First, we've established a robust organizational system, creating an efficient and streamlined working mechanism. Drawing on our experience from the Chengdu Universiade and considering the unique characteristics of TWG, we've established an organizing committee co-chaired by key leaders from the General Administration of Sport and the Sichuan Provincial Government. The committee maintains close communication with the International World Games Association and works to facilitate the Chengdu Executive Committee's coordination of specific matters like competition organization. We're also strengthening coordination with relevant international sports federations to advance event preparations in an integrated manner. At the provincial level, we've formed a working group of 51 affiliated departments and units to fully support Chengdu in advancing the preparation work with high standards, quality and efficiency. Of the 107 key preparation tasks, we've completed 61, with the remaining tasks progressing on schedule.

Second, we've focused on enhancing our service and support capabilities to meet all the needs of the Games. We've arranged 27 competition venues across eight zones, with renovation, construction and equipment installation all progressing on schedule. For events being held on the Chinese mainland for the first time, we initiated early coordination on rules and standards to ensure venues and equipment meet requirements. All facilities except those requiring temporary construction have already hosted test events and drills. Following our "compete and explore locally" approach, we've set up two athlete villages — Zone A and Zone B. We've built a service support system centered on participant experience, covering every aspect from reception and arrival/departure to transportation, accommodation, catering, and medical services. We've recruited and trained nearly 10,000 university student volunteers and set up more than 500 volunteer service stations to support the games and related participant activities. In addition, we've also developed the Chengdu2025 app, which provides event information, weather updates, transportation services and more. It officially launched in February this year.

We've also ramped up publicity and promotion to create a vibrant atmosphere for the Games. By connecting World Games preparations with nationwide fitness initiatives, we've launched a series of events like the "10,000 People, 1,000 Matches" friendship games and the New World Games-Inspired Twelve-Month Fair. These activities have created excitement across the entire province, giving people opportunities to see, hear and experience TWG firsthand. We've worked hard to tell compelling stories about TWG, China and Sichuan province, resulting in over 20,000 news reports from media outlets both at home and abroad. We've globally unveiled our official emblem, slogan and mascot, which made their international debut during the Paris Olympics. Right now, our entire province has entered "World Games Time." Torchbearer selection is underway, while promotional activities are bringing World Games sports into schools, neighborhoods and shopping areas. Across Sichuan's streets and alleys, World Games symbols and signage are everywhere, reflecting the province's growing enthusiasm to welcome, participate in and share in the Games.

TWG 2025 Chengdu will open in less than 100 days. We welcome friends from around the world to visit Sichuan at that time. The homeland of pandas looks forward to your arrival. Thank you.

Zhou Jianshe:

Thanks to Mr. Yang for your introduction. Now let's welcome Mr. Wang to speak.

Wang Fengchao:

Good morning, friends from the media. The 12th World Games will open in Chengdu on Aug. 7, marking the first time the Chinese mainland has hosted TWG. Since successfully bidding in 2019, Chengdu has carefully followed the requirements to deliver a streamlined, safe and spectacular event. The entire city has been working together on detailed preparations, aiming to present a World Games filled with "Boundless Sports, Countless Wonders" to global audiences.

First, we've integrated resources with an emphasis on operational efficiency in hosting the event. We've pooled wisdom from all sides, organizing nearly 400 special demonstration meetings and formulating nearly 300 design and construction standards for competition venues. We've adhered to the principle of economical and intensive use of venues. Of the 27 competition venues, 18 are existing facilities with partial functional adjustments, and nine are temporary structures built around lakes and parks. No new venues have been constructed. We've embraced technological empowerment and green, low-carbon principles, incorporating over 230 technological products into the World Games service system. Our goal is to deliver an event that's both simple and spectacular.

Second, we've optimized services and improved the city through the Games. We've combined event preparation with urban governance, implementing action plans to enhance urban spaces, increase green areas, improve the city's appearance and develop distinctive neighborhoods. We've created World Games-themed landscapes tailored to local conditions and coordinated the placement of over 500 urban volunteer service stations. With enthusiastic participation from our citizens, we're collectively improving the city's overall quality and character, welcoming TWG with the best possible environment.

Third, we've built platforms to promote industrial growth through the Games. We've continuously worked to convert event traffic into economic growth by building a technology-powered platform that matches supply with demand for World Games scenarios. This has attracted multiple low-altitude aviation enterprises to venture into the event economy, while 25 robot products "converging" for competition, achieving a "dual convergence" of new technologies and products within the World Games framework. We've organized the "World Games-Tianfu" cultural and art exhibition and created seven themed cultural tourism experience routes, including the "National Treasure Fan Tour" and the "Tour of Vibrant Jincheng." These initiatives have given inbound tourism a good start in 2025.

Fourth, we've created immersive environments to benefit the public through the Games. We've actively organized a series of popular, accessible activities, including the "Ten Thousand People, Thousand Games" friendship matches, the "New Twelve-Month Fair for the World Games" cultural experience, and the "Travel with the Games" initiative. We've built or renovated 77 sports parks, constructed 407 community sports corners and created 830 new spaces along the Tianfu Greenway. Additionally, we're gradually opening 130 "World Games Spaces" in residential neighborhoods, bringing trendy sports like parkour, flying disc, sport climbing and archery into people's daily lives. World Games fever continues to build momentum in communities, shopping districts, schools and businesses.

We sincerely invite friends from around the world to gather in "Leisurely Sichuan, Happy Chengdu," to share in the excitement of sports and TWG. Come and experience firsthand the vibrant atmosphere of our park city beneath snow-capped mountains, a prosperous place full of happiness, and a center of ongoing innovation. Thank you!

Zhou Jianshe:

Thanks to Mr. Wang for your introduction. Now the floor is open for questions. Please identify your media outlet before raising your questions.

Dazhong Daily:

Sichuan province has extended a global invitation to enjoy the Games while exploring the region and has organized a series of activities called "Travel with the Games." Could you tell us more about these initiatives? Additionally, how does Sichuan plan to leverage the Games as a medium to promote the integrated development of culture, sports and tourism? Thank you.

Yang Xingping:

Thank you for your questions. "Travel with the Games" is a very important initiative launched by the General Administration of Sport in collaboration with relevant national departments, focusing on the integrated development of culture, sports and tourism. As you know, Sichuan has incredibly rich cultural and tourism resources. The "Travel with the Games" initiative highlights many must-visit destinations that are worth savoring and exploring at a leisurely pace.

Sichuan has been known as the "Land of Abundance" since ancient times. Its unique geographical conditions and rich historical culture have shaped both its natural ecological beauty and colorful cultural charm. Here, you'll find the mysterious Sanxingdui Ruins site and the fairy-tale Jiuzhaigou Valley, as well as the hometown of the giant panda. The ancient Shu civilization, Three Kingdoms culture, and diverse ethnic traditions flourish side by side, while Sichuan liquor, tea, cuisine and opera have earned acclaim both domestically and internationally. Chengdu, the provincial capital, is one of China's happiest and most vibrant cities. Its streets and alleys are lined with hotpot restaurants, cafés, tea houses, and bookstores, creating an atmosphere rich with the essence of daily life. This magical land of Sichuan, abundant in natural resources and talented people, was once home to ancient literary giants like Sima Xiangru, Li Bai and Su Shi, who left behind a rich heritage. Today, "Ne Zha" by director Jiaozi, the music of Dao Lang, and Li Ziqi's pastoral lifestyle have become new cultural ambassadors showcasing Sichuan to the world. Coupled with the continuous hosting of major sports events such as TWG, Sichuan has excellent foundational conditions for promoting the integrated development of culture, sports and tourism.

To this end, we have strengthened overall planning and organized a series of "Travel with the Games" activities across the province, promoting the deep integration and development of culture, sports and tourism. Last October, we launched World Games-themed promotional caravans, traveling along five routes to connect all 21 cities and prefectures in our province. We designed these tours to blend World Games sports demonstrations with local events and festivals, link competition venues with popular scenic spots and city landmarks, and combine the excitement of athletic competition with opportunities to enjoy local scenery and cuisine. More than 200,000 residents and visitors have engaged with these World Games experiences. This initiative has sparked over 200 "sports plus tourism" activities across the region and highlighted more than 200 attractions and shopping districts, really boosting the connection between our sports and tourism economies.

Friends from the media, sports events serve as more than just competitive arenas; they're also powerful showcases for our culture and tourism. We sincerely invite all of you to come watch the Games in Chengdu and explore Sichuan with your families. Experience the excitement of World Games sports, take in the beautiful landscapes of Sichuan, and feel the happiness that Chengdu has to offer! Thank you.

National Business Daily:

Frugality is an important concept for hosting modern large-scale sports events. What measures have been taken in this regard in the construction of venues and event preparations? Thank you.

Wang Fengchao:

Thanks for your question. I'll answer this one. In the preparations for TWG 2025 Chengdu, we have consistently adhered to the principle of presenting a streamlined, safe and splendid Games, practicing fiscal responsibility throughout every aspect of our planning.

In terms of venue construction, we have insisted on renovating existing venues rather than building new ones. All 27 competition venues are either renovated existing facilities or temporary structures. During the renovation process, we've balanced both the immediate needs of the events and long-term post-Games use. We've used only green, environmentally friendly building materials and recyclable resources, while implementing prefabricated and standardized construction methods to achieve efficient production and streamlined installation. At the same time, we've coordinated with teaching schedules and operational activities, implementing venue-specific policies to carefully plan construction timelines. This approach has minimized disruption to venues that remain in active use throughout the preparation period.

After TWG, we'll conduct a coordinated study on how best to utilize each venue and systematically open them to the public. These facilities will play an enhanced role in professional training, sporting events, and grassroots sports development, particularly by providing citizens with more opportunities to participate in non-Olympic and emerging sports.

In terms of equipment and facilities, while ensuring we meet all sporting event requirements, we've followed a clear hierarchy of priorities: borrowing first, renting second and purchasing only when necessary. We've implemented a strategic mix of borrowing, utilizing existing equipment where possible, and procurement to minimize equipment costs. The competition equipment for 34 major events and 60 sub-events is now in place. After the Games, all purchased competition equipment will be repurposed for competitive training programs, youth talent development, community fitness initiatives and professional event organization, continuing to serve and promote sports development.

In terms of event organization, we've optimized the torch relay route and carefully calibrated the number of torchbearers. This approach allows us to fully showcase Chinese characteristics, unique charms of Bashu culture, and Chengdu's distinctive appeal, while promoting sports culture and encouraging active lifestyles. We've streamlined the duration of the opening and closing ceremonies and optimized the event procedures. We've implemented comprehensive measures, including dedicated transportation resources and other support measures, with detailed transportation arrangements for all participants. Throughout our planning, we've focused on minimizing disruption to residents' daily lives while maintaining safety and order. Thank you.

Cover News:

Anti-doping efforts are essential to maintaining the integrity of sports. Could you please tell us about the current status of anti-doping preparations for TWG 2025 Chengdu? What steps will be taken next to ensure a fair and clean competitive environment for the athletes? Thank you.

Li Jing:

Thanks for your question. I'll take this one. Anti-doping efforts are an important cornerstone for ensuring the smooth operation of competitions and a prerequisite for protecting the physical and mental health of athletes. The anti-doping measures at TWG 2025 Chengdu strictly adhere to the World Anti-Doping Code and related international standards. These measures are systematically organized and implemented in strict accordance with the policy requirements of the World Anti-Doping Agency and the International World Games Association.

First, I'll discuss the setup of doping control stations. Under the guidance of the International World Games Association, international testing agencies, and the China Anti-Doping Agency, doping control stations are planned for all competition venues and the Athletes' Village during TWG 2025 Chengdu. These stations will conduct urine samples, blood samples, and dried blood spot testing on athletes. We will also use the China Anti-Doping Smart Management Platform, which was independently developed by China, and "Made in China" dried blood spot testing equipment to conduct paperless doping tests. Athletes may be subject to doping tests at any time and place without prior notice.

Second, I'll address anti-doping education efforts. To create a clean and fair competition environment, we will implement an anti-doping education program in line with the policies of the International World Games Association. This includes setting up anti-doping education courses and outreach stations, offering a variety of educational activities such as knowledge quizzes, exhibitions and interactive games. These activities will educate participants about anti-doping regulations, strengthen their understanding of compliance requirements, and help maintain a spirit of fair play throughout the Games.

Third, I'll cover the prevention and control of food-based, medical-based, and pharmaceutical-based doping. The event organizing committee is firmly implementing the strictest requirements by establishing a comprehensive doping risk prevention and control system that addresses the entire chain, starting from the source. This ensures the safety of athletes' food, medical care and medication, guaranteeing that TWG 2025 Chengdu will be simple, safe and spectacular. Thank you.

CCTV:

TWG 2025 Chengdu marks the second major international multi-sport event hosted by Sichuan province, following the successful Chengdu 2021 FISU World University Games. How is the provincial government planning to use this opportunity to promote the high-quality development of Sichuan's sports industry? Thank you.

Yang Xingping:

Thank you for your interest in Sichuan's sports development. The Games will have a far-reaching impact on Sichuan's sporting industry. We're actively seizing this opportunity to promote high-quality development in Sichuan's sports sector and accelerate our transformation into a province known for sporting excellence.

Let me first address mass sports. TWG 2025 Chengdu will feature cutting-edge, fashionable and highly engaging events, providing the public with more options for fitness activities. We have organized a variety of public fitness activities in conjunction with TWG test events and tour series. Last year, we organized 11,000 sessions, engaging more than 40 million participants in mass public fitness activities. At the same time, we're leveraging the World Games to address shortcomings in fitness facilities, transforming prime urban locations into accessible neighborhood sports spaces. By 2024, the province's per capita sports area had increased by 27% compared to 2022. Going forward, we will continue to use the World Games to widely promote exercise and health concepts, further igniting enthusiasm for public fitness.

Then there's competitive sports. TWG is a valuable complement to the Olympics, providing excellent promotion for the development of competitive sports. We'll take this opportunity to vigorously promote the spirit of unity, cooperation and relentless effort in sports, actively injecting new momentum into the development of competitive sports in Sichuan. Additionally, we're using this opportunity to strengthen exchanges with outstanding athletes, coaches and referees to learn from their expertise, enhance our training methods and develop our pipeline of emerging talent. We aim to achieve greater breakthroughs in Sichuan's potential sports and specialized fields.

Let's look at the impact on the sports industry. The 31st FISU Summer World University Games, held in Chengdu in 2023, generated a total tourism spending of 12.6 billion yuan (US$1.75 billion). This significantly boosted consumption and drove development across the region. The upcoming World Games will also attract many spectators and bring together more than 4,000 athletes from over 100 countries and regions, many traveling with their families and friends. This presents another opportunity for us to enhance city management, boost the economy and benefit our residents while hosting the Games. The excitement around the World Games is set to boost sports consumption and drive increased spending in hotels, catering, tourism, retail and related industries. It'll also attract more sports events and companies to Sichuan, creating new opportunities in sports manufacturing, including smart sports gear, smart venues and outdoor equipment. Meanwhile, the event will accelerate the growth of new business forms related to winter sports, outdoor activities and aviation sports throughout the province. Going forward, we'll continue to use TWG as a catalyst for economic growth, turning Sichuan's sports market advantages into new development momentum. Thank you.

The Poster News APP:

Sports events can significantly boost host cities' development, particularly in the area of consumer spending. What strategies is Chengdu implementing to leverage TWG's popularity and develop new consumption opportunities? Thank you.

Wang Fengchao:

Thanks for your question. Sports events have become a new driver of consumer spending. Using TWG as a platform, we've integrated our strengths in business, culture, tourism, sports, health and exhibitions to create diverse consumption opportunities and enhance Chengdu's influence.

On the one hand, we're focusing on creating new consumption experiences during TWG. Currently, we've partnered with major shopping districts, tourist attractions and consumer platforms to launch World Games-themed marketing campaigns, offering exclusive discounts and licensed merchandise. More than 40 offline licensed retail stores and booths are now open to the public, with our first Beijing location officially opening on April 27. Earlier, Sichuan Airlines unveiled a World Games-themed flight, offering international travelers a special journey showcasing Sichuan and Chinese culture. Next, we'll be launching World Games-themed high-speed trains and setting up mobile franchise sales channels to further stimulate diverse consumer spending.

On the other hand, we are focusing on stimulating new consumer spending during TWG. Based on our two mascots — Shubao, a giant panda, and Jinzai, a golden snub-nosed monkey — we've released more than 360 kinds of licensed products across 16 categories, including toys, badges, school supplies and everyday items. We've also developed specialty products like blind boxes containing 3D commemorative tickets and emblem sets from previous World Games. To align with the event schedule, we'll launch direct transportation routes connecting competition venues to shopping districts and tourist attractions, along with discount routes to make cultural experiences and travel more convenient. We're also planning a series of "Traveling with the Games" themed activities and consumption promotion events like international consumption seasons and city-wide consumer-friendly activities, so as to further expand crossover consumption spaces.

In addition, we have further improved services and convenience for inbound tourism to better serve foreign tourists. Regarding foreign currency payments, 21 overseas e-wallets are now accepted in Chengdu. International visitors can easily use Alipay, WeChat Pay, and UnionPay's QuickPass just like local residents. They can also exchange currency and withdraw cash using foreign bank cards at the city's 5,086 ATMs and 1,306 bank branches. All major shops throughout the city accept foreign card payments. Regarding language services, AI translation screens have been installed in key areas with high tourist traffic, including the Chengdu Tianfu International Airport, Kuanzhai Alley and Dujiangyan scenic area. These screens provide real-time translation, information and financial consultation in 14 languages. Additionally, all popular restaurants now offer bilingual menus. Regarding the refund-upon-departure policy, we've expanded product categories, streamlined processes, and increased the number of tax refund stores in the city to 429. Thank you.

Jiupai News:

The mascots Shubao and Jinzai, modeled after the giant panda and golden snub-nosed monkey, showcase Chengdu's unique cultural charm. What plans do you have for cultural exchange activities during TWG? Thank you.

Wang Fengchao:

Thanks, I will answer your question. Sports events are not only a stage for athletic competition, but also a grand gathering for cultural exchange. As such, we'll plan and organize various cultural experience activities to build a platform for cultural exchange for friends from around the world.

As for urban cultural exchange activities, we have connected a series of well-known cultural scenic areas and districts, including the Chengdu Research Base of Giant Panda Breeding, the Taikoo Li business circle and Kuanzhai Alley. We've designed premium cultural tourism routes highlighting pandas, local lifestyles and Chengdu culture. These itineraries allow athletes, technical officials and other visitors to Chengdu to observe giant pandas up close, visit museums and enjoy our parks and green spaces. We're also planning to host a cultural and art exhibition centered on intangible cultural heritage, TWG, and Tianfu culture, allowing visitors to experience the unique charm of Chinese civilization and Tianfu culture.

In terms of exchange activities within TWG Village, in addition to the village's opening ceremony, we will organize two types of interactive experiences: one featuring fine traditional Chinese culture and the other showcasing Chinese intangible cultural heritage. These events will allow participants to immerse themselves in 12 traditional crafts, including calligraphy, painting, Shu embroidery, shadow puppetry and paper cutting. We'll also invite street performances into TWG Village and host interactive musical events that showcase Chengdu's culture, allowing participants to experience the unique charm of this international city of music.

We've also created a specially designed TWG Plaza within the International Horticultural Exhibition Park in Chengdu Eastern New Area. The plaza features zones for sports demonstrations, Chengdu cultural exhibits, dining options, performance stages, and other attractions. The plaza will provide participants and visitors with a comprehensive experience for sightseeing, entertainment, dining, shopping and performances, all in one location. We'll hold the "Athletes' Night" event at TWG Plaza on Aug. 12, featuring interactive cultural activities, art performances, the best athlete awards ceremony and a grand gala. This will provide a platform for contestants from all over the world to communicate, interact and strengthen friendships. During the Games, TWG Plaza will be open to the public free of charge. We welcome visitors from everywhere to come experience World Games events in Chengdu and immerse themselves in our distinctive cultural offerings. Thank you.

China News Service:

TWG has attracted competitors from numerous countries and regions. How will Sichuan province use this opportunity to further advance opening up and cooperation? Thank you.

Yang Xingping:

Thank you for your question. Further expanding opening up is a necessary step for Sichuan to broaden its development opportunities and enhance its economic quality. Therefore, we'll seize the opportunity presented by TWG to further deepen opening up and cooperation, while striving to better serve and integrate into the new development framework.

First, we will continue to expand channels for opening up. We are leveraging TWG as an opportunity to expand our international gateways. In the past few days, we've launched direct flights from Chengdu to Dubai, as well as to Madrid in Spain and Paris. Tomorrow, we'll launch direct flights to Penang, Malaysia. The launch of these flight routes has greatly enhanced the movement of people and trade between these countries and Sichuan. Moving forward, we will further leverage the advantage of Chengdu's two international airports to establish additional international air routes. During the Games, dedicated channels and windows will be established at official entry and exit ports to facilitate the movement of personnel and materials. On the other hand, Chengdu is also an important node city of the Belt and Road Initiative. The China-Europe Railway Express, which departs from Chengdu and Chongqing, connects more than 120 cities in Eurasia. With 36,000 completed train trips, it has become China's most stable China-Europe freight train service with the highest volume and widest regional cooperation network. Looking ahead, we will continue to open land-based transit corridors, promote air-rail-sea multimodal transportation, and focus on building integrated multidimensional transportation corridors to continuously expand channels for opening up.

Second, we will seize the opportunity to expand cultural and people-to-people exchanges. As a major province in western China, Sichuan has established 516 international sister city and friendly cooperation relationships with partners in 90 countries. These networks of friendship have been built and accumulated over years of international exchanges. Among these, major international events such as the Chengdu Universiade, the International Horticultural Exhibition and the Western China International Fair have played crucial roles in helping Sichuan connect with the world and expand its global presence. Therefore, we must further seize the opportunity presented by TWG to carefully plan and continuously conduct international exchange programs such as the "Sichuan Tour for Diplomatic Envoys to China" and the "Sichuan Tour for Foreign Media." We'll also continuously deepen talent exchanges in culture, art, education and sports, allowing more international friends to visit and understand Sichuan.

Furthermore, we will deepen comprehensive cooperation across multiple fields. Sichuan has established strong economic and trade relations with more than 200 countries and regions. Currently, there are over 5,600 foreign-funded enterprises in Sichuan, including 385 Fortune Global 500 companies. Chengdu has been approved to host 23 foreign consular missions, making it China's third-largest consular hub after Shanghai and Guangzhou. These developments have established a solid foundation for cooperation in various fields such as commerce, investment, science, technology, health, energy and minerals. We'll leverage our advantages and seize opportunities to promote global exchanges and cooperation. We'll invite domestic and international guests to visit various places in Sichuan and participate in events such as the Belt and Road Conference on Science and Technology and the Western China International Fair. This will connect global resources on a larger scale, in a wider range of fields, and at a deeper level to enhance opening-up and cooperation. Thank you.

Phoenix Satellite Television:

TWG 2025 Chengdu will hold the first torch relay in World Games history, which has attracted considerable attention. Could you share some information about how the torch relay preparations are progressing? Thank you.

Wang Fengchao:

Thank you for your question. I'll address this. As you mentioned, this is the first time in World Games history that a torch relay will be held, and it has attracted significant public attention. Now, let me provide a brief overview.

The one-day torch relay for TWG 2025 Chengdu will take place on July 26 in three Sichuan cities: Chengdu, Deyang and Meishan. A total of 120 torchbearers will cover the 11-kilometer route.

Regarding the torch design, its shape was inspired by a bronze standing figure unearthed from the Sanxingdui site and also resembles a proudly standing bamboo plant. Named "Zhumeng," meaning "Pursuing Dreams," it echoes the torch relay slogan "Join Hands with the World, Ignite Dreams." The Zhumeng torch was officially unveiled on Feb. 27 this year. The design scheme for the supporting components like the cauldron and lanterns has also been determined. Mass production and technical testing of the torch and its supporting components will be completed by early July.

The torchbearer selection process officially began in March. Torchbearers will come from four categories: outstanding athletes and coaches, model workers, citizen representatives and international friends. Special consideration is being given to frontline workers, including delivery personnel, ride-hailing drivers, and sanitation workers. Final selections will be confirmed in June.

Concerning the torch relay locations, after the flame collection and launch ceremony at the Sanxingdui Museum, the torch will be carried through five symbolic landmarks: the Jinsha Site Museum, the Chengdu Research Base of Giant Panda Breeding, the Wuhou Shrine, the San Su Shrine, and Xinglong Lake Wetland Park. Comprehensive route planning and on-site surveys are currently underway.

Moving forward, we will meticulously plan and organize the torch relay to ensure it proceeds safely, smoothly and successfully. Through this relay, we aim to promote the World Games vision and champion the spirit of sportsmanship globally. Thank you.

Hong Kong Bauhinia Magazine:

TWG features many sports events that integrate intelligent technology. Could you tell us more about how this edition of the Games will leverage technology and promote sustainability? Thank you.

Wang Fengchao:

Thanks for your question. I'll take it. We've maintained an unwavering focus on technology empowerment and green, low-carbon development in every aspect of organizing this event. Coordinated efforts across event operations, urban planning and technological innovation have enabled us to implement greener, more digital and more intelligent approaches in key areas including event organization, venue construction and service delivery.

In terms of technology empowerment, we released TWG 2025 Chengdu Technology Empowerment Guidelines and established a supporting action framework. The framework features 14 specific measures focused on targeting key areas, including venue construction and operation, event logistics, citizen engagement and commercialization of outcomes. Based on the technological requirements for hosting, participating in and watching the Games, we collected more than 230 tech products from universities, research institutes and companies, compiling them into the Technology Empowerment Product Manual for the Chengdu World Games. Through a series of events such as the "Sci-Tech Sichuan - Smart Chengdu" robotics showcase and low-altitude economy special showcases, we've built a platform to support the transformation of scientific and technological achievements. These efforts have enabled the debut of low-altitude economic applications at TWG 2025 Chengdu, including a drone torch relay, aerial couriers and aerial livestream studios. Additionally, 25 robotic products are expected to be deployed across six major scenarios, including torch relay demonstrations, smart guided tours and sports presentations, further enhancing the spectator experience.

In terms of green development, we released TWG 2025 Chengdu Green and Low-Carbon Event Action Guide and established a green and low-carbon action framework. The framework outlines nine actions and 26 specific measures centered on low-carbon energy, venues and transportation. We've also hosted the "Green Intelligence Integration for a Sustainable World Games" series of green and low-carbon supply-demand matching activities, establishing a collaborative platform connecting government and businesses. The initiative encourages companies to support the green and low-carbon goals of the Games by showcasing eco-friendly products and donating carbon credits and quotas, thereby helping to reduce the event's carbon emissions. Additionally, we launched the "Low-Carbon World Games" section on our official online platform and created a database of enterprises donating carbon credits. The initiative promotes low-carbon applications such as green electricity, sustainable transportation and low-carbon venue construction methods. Throughout the entire process, we've made comprehensive efforts to conduct carbon inventory, verification and carbon neutrality assessments, with the goal of hosting the first carbon-neutral World Games. Thank you.

Zhou Jianshe:

One last question, please.

Beijing Radio and Television Station:

We understand that dozens of test events have been organized since last year to ensure the main event runs smoothly. Could you please provide more details about how these test events were conducted? Thank you.

Yang Xingping:

Thank you for your question. Organizing test competitions is a crucial part of preparing for sporting events. Last year, we organized 24 test competitions across 20 sports, with a focus on promoting World Games events and training competition teams. These included the World DanceSport Competition, the International Breakdance Championship and the China Canoe Marathon Open. In March this year, we also held a series of tournaments in three events: freediving, lifesaving and boules.

These activities tested both the competition organization's software and hardware in three areas: First, we tested venue facilities, equipment, award ceremonies, and other elements and processes according to official competition standards. Second, we tested the management and operational mechanism that uses venues as organizational units to coordinate various working groups in delivering event services. Third, we tested systems requiring international partner participation in joint debugging and testing, such as timing, scoring and results processing. Overall, these tests have achieved their intended goals of training our personnel, evaluating facilities, optimizing processes and improving capabilities, laying a solid foundation for the successful hosting of the official competition.

Looking ahead, we'll organize simulation exercises throughout all competition areas, leveraging various event levels and types. These exercises will be complemented by customer group simulations and tabletop drills to thoroughly assess venue command systems, operational resilience and emergency response capabilities, ensuring the smooth execution of the official competition. Thank you!

Zhou Jianshe:

That concludes today's press conference. Thank you to our three speakers and to all the journalists for joining us. Goodbye, everyone!

Translated and edited by Liu Caiyi, Wang Xingguang, Xu Kailin, Liao Jiaxin, Lin Liyao, Li Xiao, Zhang Tingting, Mi Xingang, Wang Qian, Liu Qiang, Li Huiru, Wang Yanfang, Ma Yujia, Wang Wei, Huang Shan, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Zou Lan, deputy governor of the People's Bank of China (PBC) 

Mr. Sheng Qiuping, vice minister of commerce

Mr. Yu Jiadong, vice minister of human resources and social security 

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 28, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very pleased to invite Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC); Mr. Yu Jiadong, vice minister of human resources and social security; Mr. Sheng Qiuping, vice minister of commerce; and Mr. Zou Lan, deputy governor of the People's Bank of China (PBC), to brief you on the policies and measures for stabilizing employment, ensuring stable growth and promoting high-quality development, and to answer your questions.

Now, I'll give the floor to Mr. Zhao for his introduction.

Zhao Chenxin:

Good morning. I am very pleased to attend today's press conference. I will start by introducing the overall situation to you all.

On April 25, the Political Bureau of the Central Committee of the Communist Party of China (CPC) held a meeting to analyze the current economic situation and deliberate on follow-up economic work. The meeting emphasized the necessity of adhering to the general principle of seeking progress while maintaining stability, fully and faithfully implementing the new development philosophy, and accelerating the establishment of a new development paradigm. It called for balancing domestic economic priorities with international economic and trade engagements, resolutely focusing on managing our own affairs well, and steadfastly expanding high-standard opening up. It called for efforts to be concentrated on stabilizing employment, supporting businesses, securing markets and managing expectations, and using the certainty of high-quality development to counter the uncertainties arising from rapid changes in the external environment. As such, the meeting provided clear direction and guidance for the next phase of economic work. This fully reflects the high importance that the CPC Central Committee with Comrade Xi Jinping at its core attaches to economic work, and fully demonstrates its confidence and determination to maintain stable economic operation.

The meeting particularly emphasized the need to continuously improve the policy toolkit for stabilizing employment and ensuring economic growth. Previously, on April 18, the State Council Executive Meeting had already deliberated on several measures aimed at stabilizing employment, ensuring economic growth and promoting high-quality development. Here, I would like to highlight the key initiatives being implemented in accordance with the decisions and plans of the CPC Central Committee and the State Council, focusing on measures to stabilize employment, ensure stable growth and promote high-quality development. These measures represent a continuation and extension of the policy package that has been rolled out since last September, as outlined by the Central Economic Work Conference and the tasks deployed at the "two sessions." They serve as crucial steps to respond to changes in the external environment and concrete actions to implement the decisions and deployments of the CPC Central Committee and the State Council. The Central Economic Work Conference has explicitly called for improving the toolkit of policies, making dynamic adjustments based on the extent of external impacts, strengthening unconventional and counter-cyclical adjustments, and enhancing the foresight, targeting and effectiveness of macro-regulation. Since the CPC Central Committee deployed and launched a package of incremental policies last year, in accordance with the requirements and in coordination with relevant departments of the State Council, the NDRC has been closely monitoring changes in the domestic and international economic conditions while dynamically updating and improving the policy toolkit. The newly introduced measures represent another major decision by the CPC Central Committee and the State Council, reflecting their scientific assessment of the current conditions and resolute, well-timed response to the evolving circumstances.

These measures specifically encompass five key aspects. I will now outline the specific measures, summarizing the concrete initiatives. My colleagues from the relevant departments will provide further details during the Q&A session, and the corresponding policies will be introduced one by one in due course. In terms of employment support, key measures include encouraging enterprises to actively stabilize employment, scaling up vocational skills training, expanding work-for-relief programs, and strengthening public employment services. In terms of stabilizing foreign trade, key measures include providing tailored support by industry and enterprise, helping export enterprises mitigate risks, increasing the overseas expansion of service products, and encouraging reinvestment by foreign-invested enterprises in China. In terms of promoting consumption, key measures include focusing on expanding service consumption, strengthening care for seniors with disabilities, boosting automobile consumption, and establishing a skills-oriented salary distribution system. In terms of actively expanding effective investment, key measures include improving consumption infrastructure, vigorously revitalizing private investment, and establishing new policy-based financial tools. In terms of fostering a favorable environment for stable development, key measures include continuously stabilizing and activating the capital market, consolidating the stable trajectory of the real estate market, and enhancing financial support for the real economy. These policies are all designed to be highly targeted and actionable, with a focus on delivering tangible benefits to businesses and the public. They will be rolled out on a case-by-case basis as each measure is finalized.

Next, the NDRC will actively work with all relevant parties to ensure the implementation of these measures. At the same time, in accordance with the requirements of the CPC Central Committee and the State Council, we will institutionalize open-ended policy research and preparation, ensure adequate contingency plans are in place, continuously improve the policy toolkit for stabilizing employment and ensuring stable growth, and promptly introduce additional reserve policies in response to changing conditions. We are confident that the implementation of these measures will provide strong support for the economy, fostering steady and sound economic development while maintaining overall social stability.

That concludes my introduction. Now, my colleagues and I will address questions you might have.

Shou Xiaoli:

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

Market News International:

I have two questions. Firstly, recently, there has been turbulence in the U.S. treasury and U.S. dollar exchange rate markets. Could the PBC comment on how this might impact the Chinese market? Is there concern that a decline in U.S. treasuries could affect the return on China's U.S. dollar assets? And how does the PBC view the performance of the yuan exchange rate this year? And the second question is, China's Q1 GDP grew by 5.4%. Given current economic trends and the outlook for trade tension with the U.S., are authorities confident that the already announced policy plan is sufficient to reach the around 5% GDP growth target for this year? Or will more additional measures be needed? Thank you.

Zou Lan:

Thanks for your questions. I will address the first one. Recently, the U.S. announced significant tariff increases on multiple economies. This action seriously infringes on the legitimate rights and interests of various countries, disrupts the rules-based multilateral governance system, impacts the global economic order, and undermines the long-term stable growth of the global economy. At the same time, this has triggered severe fluctuations in global financial markets and heightened investors' risk aversion towards dollar assets. It has significantly lowered the dollar index, increased US treasury yields, intensified volatility in the US stock market, and led to a reallocation of global asset portfolios across regions. China's economy had a strong start this year, continuing its trend of recovery and improvement. The financial system remains stable, the financial market has shown strong resilience and smooth operation, whilst the RMB exchange rate against the U.S. dollar is around 7.3 yuan.

We have noticed that there have recently been some fluctuations in the U.S. treasury market. I want to emphasize that China's foreign exchange reserves have prioritized safety, liquidity, and value preservation and appreciation. Investments in the international financial market have been carried out based on market-oriented and professional principles, leading to an effective diversification of the investment portfolio. The impact of changes in a single market or asset on China's foreign exchange reserves is generally limited.

China's solid economic foundation, broadly balanced international payments, and resilient foreign exchange market will continue to provide strong support for maintaining the basic stability of the RMB exchange rate. First, the economic foundation is solid. On April 25, the meeting of the Political Bureau of CPC Central Committee made important arrangements for recent economic work. China's economy will continue to recover and improve, addressing the uncertainty of drastic changes in the external environment, with the certainty of high-quality development. Second, a basic equilibrium in the international balance of payments was maintained. Foreign trade enterprises are actively exploring diversified markets to quickly respond to the varied needs of the global market. We have opened up the financial markets in an orderly manner, continuously improved the facilitation level for cross-border investment and financing, and attracted stable inflows of medium- and long-term capital from abroad. Third, the foreign exchange market is resilient. Market players have become more mature with more rational trading behaviors. The proportion of enterprises using foreign exchange derivatives for hedging and the share of RMB cross-border receipts and payments are steadily increasing, allowing for better management of external shocks. Fourth, the volume of China's foreign exchange reserves remained basically stable. In recent months, the balance of foreign exchange reserves has remained stable at over $3.2 trillion.

In the next stage, the People's Bank of China will continue to implement a moderately accommodative monetary policy and increase support for the real economy. Meanwhile, we will adhere to a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies for adjustments. We will emphasize the decisive role of the market in exchange rate formation, enhance the resilience of the foreign exchange market, stabilize market expectations, and strengthen market oversight. We are committed to rectifying procyclical market behaviors and addressing activities that disrupt market order. Furthermore, we will take resolute measures to prevent the risk of exchange rate overshooting and maintain the fundamental stability of the RMB exchange rate at a reasonable and equilibrium level. Thank you.

Zhao Chenxin:

Thank you for the questions. Following Vice Governor Zou's answer, I will focus on the second question. You just mentioned the economic situation in the first quarter. China's economic performance is very impressive in Q1, demonstrating both substantive depth and distinctive characteristics.

First, these achievements fully demonstrate the strong resilience and vitality of China's economic development. Since late last year, particularly since the beginning of this year, a certain country has moved against the tide of history, recklessly wielding tariffs as weapons, seriously violating the legitimate rights and interests of China and other countries, severely undermining the multilateral trading system, and gravely disrupting the global economic order. Amid such a chaotic and complex external environment where anxiety and uncertainty prevail among various countries and the global economy has been deeply affected, China's economy grew 5.4% year on year in the first quarter, picking up by 0.4 percentage point from last year's full-year growth rate and demonstrating positive momentum. Moreover, this achievement came against the high comparison base of 5.3% growth in the first quarter of last year, fully demonstrating the strong resilience and vitality of China's economy. We have all just personally experienced this process and have a deep understanding about it. For example, we have seen exports defying downward pressure to achieve a growth of 6.9%, groundbreaking innovations in large models attracting global attention, and rapid growth in domestic tourist trips and consumer spending during the Spring Festival and Qingming Festival holidays. Chinese-made smart panoramic cameras, as well as "China-chic" products and related derivatives, are popular at home and abroad. Recent news reports have shown that in some foreign stores, there have even been 100-meter-long queues at 3 a.m. to purchase these goods. When we speak of China's economy having strong resilience and vitality, and of continuously rising social confidence, these are conclusions firmly grounded in facts. The examples I just mentioned are vivid proof of this.

Second, these achievements fully demonstrate that high-quality development is advancing steadily and solidly. China's economy has not only achieved impressive growth, but has also continuously made new progress and breakthroughs in innovative, coordinated, green, open and shared development. In terms of innovative development, the output of servers, new energy vehicles, and 3D printing equipment increased by 66.3%, 45.4% and 44.9% year on year, respectively. The accelerated application of large AI models in fields such as electronics and automobiles has driven a surge in demand for computing power products and intelligent products. In terms of coordinated development, the implementation of major regional strategies and regional coordinated development strategies has been intensified, continuously boosting the vitality of regional development. In terms of green development, the average concentration of fine particulate matter (PM2.5) in cities at the prefecture level and above nationwide fell 4.8% year on year, while the proportion of surface water monitoring sections with Class I-III water quality rose to 91%. In terms of open development, China has established comprehensive mutual visa exemption agreements with 27 countries and expanded its unilateral visa-free policy to include 38 countries. Inbound tourism totaled 34.683 million visitor arrivals, up 18.5% year on year. In terms of shared development, rural residents' per capita disposable income increased 6.5% year on year in real terms, 0.9 percentage point above the national average. This series of figures provides concrete evidence of the high-quality development of China's economy.

Third, these achievements fully demonstrate our efforts to strengthen certainty to cope with the uncertainties of the rapidly changing external environment. In terms of domestic demand, the contribution rate of domestic demand to economic growth in the first quarter of this year rose 6.3 percentage points compared to the fourth quarter of last year, more effectively fulfilling its role as the primary driver and stabilizing anchor of economic growth. In terms of external demand, more than 170 countries and regions recorded positive growth in imports from China, strongly supporting the diversification of China's export markets. In terms of people's livelihoods, 3.08 million new urban jobs were created, an increase of 50,000 additional jobs compared to the same period last year, while basic public services continued to improve. In terms of security assurance, the grain sowing area expanded steadily, while energy security was further strengthened. All these achievements have laid a solid foundation for the sustained, steady, and sound development of China's economy, fully demonstrating the inherent resilience of our economic development.

The achievements in the first quarter have laid a solid foundation for economic development throughout the year. Looking ahead, while the foundation for sustained economic recovery and improvement still needs further consolidation and external shocks are having a greater impact, we must also recognize that we have the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core and the institutional advantages of socialism with Chinese characteristics. We have favorable conditions, including deepening reform and opening up, broad market demand, and a solid industrial foundation. We also have stable support from macroeconomic policies, smooth supply-demand circulation, and expanding economic and trade opportunities. Additionally, we have abundant policy reserves and ample policy space. We will accelerate the implementation of measures to stabilize employment and the economy, and promote the rapid introduction and implementation of various policies. We will pay greater attention to improving the efficiency and effectiveness of policy implementation to ensure that policies reach people and enterprises directly. At the same time, we will intensify efforts to promote the implementation of established policies to ensure their effectiveness, including special actions to boost consumption, making good use of the 5 trillion yuan in national-level investment funds this year, and accelerating the establishment of the national venture capital guidance fund, among others. Most of these policies will be implemented in the second quarter, and policy orientation consistency will be continuously strengthened. No matter how the international situation changes, we will stay focused on our development goals, maintain strategic resolve, and concentrate on running our own affairs well. We are fully confident in achieving this year's economic and social development objectives and tasks.

In addition, I would like to add some points to supplement Mr. Zou's remarks. You just mentioned the current China-U.S. trade situation, and I would like to briefly share my views on this. The impact and shock of the so-called "reciprocal tariffs" imposed by the U.S. have global ramifications, with all parties observing, analyzing and responding to the situation. They engage in fabricating groundless accusations, acts of bullying and hegemony, and backtracking on their commitments. This has made the world increasingly see a fundamental truth: the so-called "reciprocal tariffs" seriously violate historical trends and economic principles, severely undermine international trade rules and order, and gravely damage the legitimate rights and interests of countries around the world. This is a typical example of unilateral bullying that harms others as well as themselves. Such conduct lacks popular support and will inevitably end in failure. China is the world's largest developing country and a dignified and responsible major country. Confronted with the unreasonable and abusive use of tariffs, China has resolutely stepped forward to counter hegemony and power politics by implementing a series of rational, proportionate and justified countermeasures. This is not only to safeguard China's own legitimate rights and interests, but also to uphold international fairness and justice, maintain the global free trade system, and defend the normal international economic order. China will stand with the vast majority of countries in the world and stand on the right side of history and the side of human progress. We firmly believe that going against the world and the truth will only lead to self-isolation, while aligning with global trends and justice is the only way to win the future.

CCTV:

The current international environment is complex and severe. The high tariffs imposed by the U.S. have inevitably put pressure on China's economy, further highlighting the role of consumption in driving economic growth. May I ask what work and achievements the Ministry of Commerce has made in boosting consumption? What practical measures will be taken next to further unleash consumption potential and boost economic growth? Thank you.

Sheng Qiuping:

Thank you for your attention to our efforts to expand consumption. In the current complex and challenging international environment, vigorously boosting consumption and comprehensively expanding domestic demand is of special importance.

Since the beginning of this year, the Ministry of Commerce has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, vigorously carrying out special actions to boost consumption. We have intensified efforts to expand the scope of the trade-in program for consumer goods, promoted quality improvements and upgrading of commodity consumption, and promoted the high-quality development of service consumption. We have also organized various consumption promotion activities, such as national premium launch seasons, and successfully held the fifth China International Consumer Products Expo (CICPE), promoting the continuous expansion of consumption. In the first quarter, total retail sales of consumer goods grew 4.6% year on year, with the growth rate 1.1 percentage points higher than that of the previous year. In particular, growth in March was 5.9%, the fastest monthly rate since last year. The contribution rate of consumption reached 51.7%, an increase of 7.2 percentage points compared with last year.

Looking ahead, we will resolutely implement the deployments of the meeting the Political Bureau of the CPC Central Committee held on April 25. We will focus firmly on managing our own affairs well, introduce detailed measures aligned with policies aimed at stabilizing employment and the economy, and further enhance the role of consumption in driving economic growth. We will better cope with external risks and challenges through a strong domestic market. I would like to highlight the following four measures for you.

First, we will expand and improve the implementation of the trade-in program for consumer goods. Last year, the trade-in program for consumer goods achieved positive results. This year, we are building on that momentum and expanding the scope, with support funds doubling to 300 billion yuan. The number of supported categories for home appliances has expanded from eight to 12, and subsidies for purchasing new digital products such as mobile phones have been introduced. We are guiding local governments to promptly introduce and implement measures, ensuring that these policies are implemented quickly and that the public benefits as soon as possible. As of midnight on April 27, the nationwide program resulted in 2.814 million vehicle trade-ins, 49.416 million old home appliance trade-ins across 12 categories, 37.855 million purchases of new digital products such as mobile phones, 40.906 million kitchen and bathroom product upgrades, and over 4.2 million old electric bicycles trade-ins. The program drove total sales of over 720 billion yuan. Since the policy's implementation, many foreign trade and foreign-funded enterprises have received policy support. Numerous new consumer products that are intelligent, green, healthy, and fashionable have entered thousands of households. More than 120 million people have benefited from substantial subsidies and discounts. Moving forward, we will continue to enhance the effectiveness of the consumer goods trade-in program, allowing consumers to enjoy the policy benefits more quickly and effectively.

Second, we will push forward reforms in the automobile circulation and consumption sector. Building on efforts to promote trade-ins and meet consumer demand for new vehicle purchases, one of our key tasks this year is to organize pilot reforms in automobile circulation and consumption, supporting qualified areas to innovate and take the lead in various aspects such as new cars, used cars, scrapped vehicles and the automotive aftermarket. We have encouraged relevant regions to optimize car purchase and traffic restriction policies to better meet residents' car-buying needs. We have focused on efficiently completing tasks, built a national information platform for the entire automobile life cycle, broken down data silos, and facilitated used car transactions. Furthermore, we have supported the local development of automotive aftermarket sectors including vehicle modification, RV camping and classic cars, promoted automobile sports and culture, extended the automobile consumption chain and worked to cultivate new growth areas in vehicle consumption.

Third, we will implement initiatives to improve service consumption quality and benefit consumers. Recently, we have worked with relevant departments to introduce the 2025 work plan for improving service consumption quality and benefiting the public, the action plan for increasing the number of "silver-haired" tourism trains, the special action plan to promote health consumption, and several measures to expand and upgrade home services consumption. In the first quarter, 187 tourist trains were operated, up 30% year on year, with elderly tourists accounting for nearly 80%. We implemented initiatives to expand and upgrade the "15-minute convenient living circle" pilot, with priority on filling service gaps for older adults and children to create a "circle of happiness" for residents. Looking ahead, we will actively respond to public expectations, address shortcomings and weaknesses in service consumption, and work with relevant departments to formulate comprehensive policy measures to support service consumption. We will carry out activities to expand consumption, such as the service consumption season, to create service consumption hotspots. Adhering to the principle of "opening up externally and relaxing restrictions internally," we will enhance policy support and continuously expand the supply of diversified services such as health, elderly care, child care and home services to better meet people's growing needs for a better life.

Fourth, we will hold a series of activities for the "Shopping in China" campaign. On April 13, at the fifth CICPE, we jointly launched the "Shopping in China" campaign with relevant departments. We directed local governments to focus on the first-launch economy and hold first-launch, first-show and first-exhibition events, as well as a variety of colorful and diverse special activities in four major areas: boutique shopping, gourmet cuisine, exciting tourism and exquisite performances. "Shopping in China" caters not only to Chinese consumers but also to people worldwide. Yesterday afternoon, we held a press conference announcing policies to further optimize departure tax refunds and boost inbound consumption. For example, enterprises with a tax credit rating of M or above can apply to become tax refund stores. The minimum purchase threshold for refunds has been lowered from 500 yuan to 200 yuan, and the cash refund limit has been raised from 10,000 yuan to 20,000 yuan, making it more convenient for foreign tourists to obtain tax refunds. I sincerely welcome friends from abroad to visit China to shop for quality products, enjoy our delicious food, and experience our beautiful scenery.

I believe that with the continued implementation of consumption-boosting policies, consumption will continue to show a stable development trend, and the vitality and potential of China's supersized market will be further unleashed. Thank you.

Xinhua News Agency:

The Political Bureau of the CPC Central Committee meeting proposed continuously improving the policy toolbox for stabilizing employment and the economy. How would you describe the employment situation this year? What measures will be taken in the future? Thank you.

Yu Jiadong:

Thank you for your questions. The CPC Central Committee and the State Council attach great importance to the employment work. General Secretary Xi Jinping emphasized that efforts must be made to ensure employment, which is the most basic component of people's wellbeing. All regions and departments have resolutely implemented the instructions and taken various measures to stabilize and expand employment. In the first quarter of this year, overall employment remained generally stable, with 3.08 million new urban jobs created nationwide, an increase of 50,000 year on year, exceeding the expected pace. This was also mentioned by Mr. Zhao just now. The average surveyed urban unemployment rate in the first quarter was 5.3%, lower than the expected control target. Employment among key groups such as college graduates, migrant workers and people having difficulty securing employment was stable.

At the same time, the foundation for the sustained recovery and improvement of the economy needs to be further consolidated. With increasing impacts of external shocks, the United States has imposed multiple rounds of high tariffs, leading to production and operation difficulties for some foreign trade enterprises. This has affected the employment of some workers, causing continued upward pressure on employment. On April 25, the meeting of the Political Bureau of the CPC Central Committee analyzed and studied the current economic situation and economic work, releasing a clear signal of stabilizing employment and the economy and promoting high-quality development. We will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, face difficulties head-on, move forward under pressure, and make every effort to ensure employment remains stable overall. We will focus on five key areas:

First, we will continue to tap into potential and expand employment opportunities. We will carry out the implementation plan for tapping into potential and expanding employment opportunities, and introduce incentive policies to boost job creation in key areas such as the development of new quality productive forces, creation of new areas of consumer demand, implementation of key engineering projects, and provision of basic public services. Last month, the leading group on employment work under the State Council issued a document on intensifying efforts in tapping into and expanding job opportunities in key areas, key industries, urban and rural communities, and among micro, small and medium-sized enterprises. It also aims to support key groups in seeking employment and starting businesses. On the other hand, we will actively expand new employment growth areas. Recently, some large enterprises have released large-scale recruitment plans. According to data from market institutions, in the first quarter, the demand for recruitment in industries such as consumer services, transportation and logistics, and resident services increased year on year, and the demand for positions involving AI, such as robotics algorithm engineer, increased by more than 30% year on year. All these reflect the significant potential and strong resilience of China's labor market.

Second, we will roll out a batch of policies to stabilize employment. We will fully implement existing policies, speed up the delivery of unemployment insurance premium refunds, guaranteed loans and employment subsidies, and extend the policy of reducing premiums for unemployment insurance and workers' compensation. Previously, we increased the quota for special loans aimed at stabilizing and expanding employment, with a maximum credit line of 50 million yuan for micro and small enterprises and a maximum credit line of 10 million yuan for individuals. Recently, together with the MOF, we allocated 66.7 billion yuan of central government employment subsidy funds to ensure policy implementation. At the same time, we will speed up the introduction of incremental policies, including enhancing support for enterprises to create more jobs, increasing employment subsidies for individuals and raising the proportion of refunds for unemployment insurance premiums for enterprises significantly affected by tariffs.

Third, we will prioritize employment for key groups. We will make the employment of college graduates and other young people a top priority, speed up the implementation of the 17 measures for promoting their employment in 2025 just issued by the MOHRSS, MOE and MOF, launch an employment service campaign, and stabilize employment levels. We will expand channels for jobseekers both close to their homes and in other places, increase support for work-relief programs, promote the employment and income increases of migrant workers, and maintain the scale of employment of the 30 million people lifted out of poverty. We will strengthen employment assistance for people having difficulty securing employment, implement the policy of "two preferential treatments and three subsidies," which consists of preferential loans and tax benefits, and training, job and social security subsidies, to ensure the bottom line of employment for disadvantaged groups.

Fourth, we will intensify efforts in vocational skills training. We will fully implement the "Skills Illuminate the Future" campaign and promote a project-based training model that integrates four key elements: job demand, skills training, skills evaluation and employment services. Differentiated subsidy support will be implemented to better align training with employment and increasing incomes. We will support enterprises significantly affected by tariffs to organize various forms of training, such as on-the-job training and job transfer training to help retain their workforce.

Fifth, we will strengthen public employment services. We will mobilize public employment service agencies and human resource service enterprises to organize special recruitment sessions and targeted job placements for cities and industrial parks affected by tariffs to help workers' transition to new employment. We will strengthen the protection of rights and interests of those in flexible employment and new forms of employment, and carry out special actions to clean up and rectify the order of the human resource market, thereby better protecting workers' employment rights.

In addition, I would like to add a few words. Along with relevant departments, we have conducted a comprehensive analysis and full prediction of this year's employment situation and are fully prepared to address various uncertainties. Our employment policy toolkit is sufficiently stocked. We have made policy reserves in encouraging enterprises to create more jobs, supporting enterprises to stabilize and expand employment, and helping workers to improve skills as well as seek employment and start businesses. These policies will be rolled out in a timely manner according to changes in the situation. Through our joint efforts, we believe that we have the confidence and strength to continue maintaining the overall stability of employment. Thank you.

21st Century Business Herald:

The meeting of the Political Bureau of the CPC Central Committee has emphasized increasing support for the real economy. Looking at the data of the credit structure, what progress has been made in financial support for major strategies, key areas and weak links? What are the plans moving forward? Thank you.

Zou Lan:

Thank you for your questions. Let me address these. Since the beginning of this year, the PBC has earnestly implemented the decisions and deployments of the Central Economic Work Conference and the Government Work Report, increased macro-control efforts, strengthened counter-cyclical adjustments, comprehensively used various monetary policy tools, strengthened the coordination of various policies, urged banks to continuously optimize the credit structure, and promoted the continuous recovery and improvement of the economy.

In terms of total volume, the PBC has injected targeted liquidity, ensuring reasonable growth in money and credit. At the end of March, the broad money M2 balance was 326 trillion yuan, a year-on-year increase of 7%; the stock of social financing was 423 trillion yuan, a year-on-year increase of 8.4%; and the balance of RMB loans was 265 trillion yuan, a year-on-year increase of 7.4%.

Regarding the growth rate of loans, I'd like to point out that since the end of last year, the government has implemented a large-scale debt swap program, under which local governments issue special refinancing bonds to repay existing implicit debts, mainly in the form of loans. This has had some impact on the analysis of statistical data. If this factor is excluded, the year-on-year growth rate of the balance of RMB loans should exceed 8% on a comparable basis.

In terms of structure, financial support was strengthened for key areas, and support was significantly increased for key areas and weak links of the national economy, such as technological innovation, green and low-carbon development, and inclusive finance. At the end of March, the loan balance of innovative SMEs that use special and sophisticated technologies to produce novel and unique products was 6.3 trillion yuan, a year-on-year increase of 15.1%; the balance of green loans exceeded 40 trillion yuan, an increase of 9.6% from the beginning of the year; the balance of inclusive small and micro loans was about 35 trillion yuan, a year-on-year increase of 12.2%; and the number of inclusive finance credit recipients for small and micro businesses was about 62 million, an increase of 930,000 in the first quarter of this year, which was 550,000 more than the increase in the same period of last year. The balance of RMB household consumption loans was close to 60 trillion yuan, increasing by about 250 billion yuan in the first quarter, which was over 200 billion yuan more than the increase recorded in the same period of last year. The balance of personal housing loans was about 38 trillion yuan, increasing around 220 billion yuan in the first quarter, which was over 200 billion yuan more compared with the increase in the first quarter of last year.

In terms of loan periods, medium- and long-term loans continued to maintain a relatively high growth rate, providing funding guarantees for stable investment. At the end of March, the outstanding medium- and long-term loans of all sectors by major financial institutions grew by 8.5%. Among them, outstanding medium- and long-term loans in the manufacturing industry grew by 9.3%; outstanding medium- and long-term loans in the industrial sector grew by 11.2%; outstanding medium- and long-term loans in the infrastructure industry grew by 8%; and outstanding medium- and long-term loans in the service industry excluding real estate grew by 7.5%, all of which were higher than the average growth rate of various loans.

From the perspective of interest rates, the PBC has promoted a reduction of financing costs for the real economy, and the interest burden on business entities and residents continued to decrease. In March this year, the weighted average interest rate of newly issued corporate loans was about 3.3%, a decrease of 0.45 percentage point year on year; and the interest rate of newly issued inclusive small and micro enterprise loans was about 3.6%, a decrease of 0.55 percentage point year on year.

Next, in accordance with the spirit of the meeting of the Political Bureau of the CPC Central Committee, the PBC will step up the implementation of more proactive and effective macro policies, make full use of the appropriately accommodative monetary policy, and make timely cuts to required reserve ratios and interest rates based on domestic and international economic conditions and financial market operations to maintain ample liquidity. We will fully leverage the role of monetary policy tools in adjusting both the monetary aggregate and structure, introduce new structural monetary policy tools, and provide targeted and stronger financial support in key areas of stabilizing employment and growth.

First, we will take targeted and stronger steps to stabilize employment. We will more vigorously promote the implementation of the entrepreneurial guarantee loan policy, and increase support in terms of entrepreneurship and employment for key groups such as returning migrant workers, new urban residents, college graduates and women.

Second, we will take targeted and stronger steps to stabilize foreign trade. We will guide financial institutions to not call in or cut off loans for SMEs which have a high dependence on foreign trade, are facing temporary difficulties and are producing competitive products to ensure reasonable financing needs.

Third, we will take targeted and stronger steps to promote consumption. We will focus on the supply side of service consumption, concentrating on key areas such as culture, tourism, sports, catering, accommodation, education and training, increase financial support, form a policy synergy, and jointly promote substantial improvements and enhancements of service consumption supply to meet people's increasingly diverse service consumption needs.

Fourth, we will take targeted and stronger steps to expand investment. We will support financial institutions in innovating financial tools, increase the issuance of medium- and long-term loans, and provide financing support for key areas such as implementing major national strategies and enhancing security capacity in key areas as well as promoting the large-scale equipment upgrades and consumer goods trade-in programs.

In addition, we are also studying how to enrich the policy toolbox, and will introduce incremental policies in due course to help stabilize employment, enterprises, markets and expectations, thereby effectively consolidating the fundamentals of economic development and social stability. Thank you.

ThePaper.cn:

In the current international situation, the role of domestic demand is becoming increasingly important. Last year, the Central Economic Work Conference emphasized vigorously boosting consumption and investment returns and comprehensively expanding domestic demand. What progress has been made in this regard? And what policies will be introduced to better leverage the main driving force of domestic demand? Thank you.

Zhao Chenxin:

Thanks for your question. I will answer it. In April 2020, General Secretary Xi Jinping proposed fostering a new pattern of development that is focused on the domestic economy and features positive interplay between domestic and international economic flows. Over the past five years, significant progress has been made in accelerating the construction of the new development pattern, with domestic demand increasingly serving as the main engine of China's economic growth. Through this process, we have also accumulated rich practical experience and counter-cyclical policy tools.

Based on first-quarter performance this year, various macroeconomic policies have continued to take effect, and domestic demand potential is being released at an accelerated pace. Let me give some examples. Trade-in sales of five major consumer categories — automobiles, home appliances, digital products, home improvement and kitchen/ bathroom fixtures, and electric bicycles — exceeded 500 billion yuan, helping drive total retail sales of consumer goods up 4.6% year on year, an improvement of 1.1 percentage points from the whole of last year. Another example: large-scale equipment renewal drove nationwide investment in equipment and tools up 19% year on year, contributing 64.6% to total investment growth and pushing the overall investment growth rate 1 percentage point higher than last year. As another example, the 2025 market access negative list was recently released, reducing restricted items from 151 in 2018 to 106 currently. As the list gets shorter, markets become more vibrant and economic circulation flows more smoothly.

As the world's second-largest economy and a major country with a population of over 1.4 billion, China has enormous potential and space to expand domestic demand, and these demands represent highly tangible needs. Let me provide some examples. In the consumer sector, China has 353 million cars and over 3 billion major household appliances, including refrigerators, washing machines and air conditioners. Following natural replacement cycles, this generates trillions of yuan in demand every year. Beyond durable goods, there is enormous new demand for consumer services such as entertainment, tourism and sports. The release of "Ne Zha 2" earlier this year and the thriving holiday tourism market demonstrate the vast potential of service consumption. In terms of investment, China's nationwide equipment assets have a net book value of approximately 40 trillion yuan. As high-quality development advances, annual investment demand for equipment renewal and upgrading will exceed 5 trillion yuan. According to industry estimates, the scale of China's AI industry surpassed 700 billion yuan in 2024, maintaining growth rates above 20% for multiple consecutive years. Future investment opportunities will continue to expand. China is also deepening the implementation of its new urbanization strategy. Each 1 percentage point increase in the urbanization rate can drive investment demand in the trillions of yuan. Take urban underground pipeline construction and renovation as an example: preliminary estimates show that approximately 600,000 kilometers of gas, drainage, and other pipelines will need upgrading and renovating over the next five years, generating about 4 trillion yuan in investment demand. We clearly have tangible and enormous potential for expanding domestic demand.

The specific approaches and methods for better leveraging domestic demand as the primary economic driver are clear: increase incomes for middle- and low-income groups, significantly boost consumption, expand effective investment, and strengthen domestic circulation. Going forward, the NDRC will earnestly implement the decisions and plans of the CPC Central Committee and the State Council, and take solid steps to advance work in three key areas. In terms of boosting consumption, we recently issued the second batch of trade-in program funding for this year. The first two batches total over 160 billion yuan, with approximately 140 billion yuan more to be disbursed gradually based on regional implementation progress. We will also establish and implement a child care subsidy system, create specialized re-lending facilities, and increase support for key service consumption sectors and elderly care industry development. At the same time, we will deepen the implementation of special initiatives to boost consumption and promptly introduce sector-specific measures. Guidance will be provided to cities with vehicle purchase restrictions to issue additional purchase quotas for priority groups such as families with long lottery wait times and car-free households. In terms of expanding investment, we will include industrial software upgrades and other updates within the scope of equipment renewal and trade-in policy support, accelerate investment in consumer infrastructure and social sectors, formulate and implement the "doubling" initiative for charging facilities, and support parking space construction in cities with permanent urban populations exceeding 3 million, particularly in super-large and mega cities. We will strive to release the complete 2025 project list for the implementation of major national strategies and security capacity building in key areas, along with central budget investment allocations, by the end of June. At the same time, new policy-based financial instruments will be established to address capital funding shortages in project construction. In terms of smooth circulation, we will accelerate the construction of a unified national market, conduct a six-month campaign to identify and remove market access barriers, accelerate the promulgation of the Private Sector Promotion Law, and help foreign trade enterprises expand domestic sales. Meanwhile, we will accelerate deep integration between technological and industrial innovation, establish a national venture capital guidance fund, and promote the deep integration of AI with 60 key industry sectors and 700 core application scenarios.

That's all I have to share. Thank you.

Beijing Youth Daily:

Just now, the MOHRSS provided an overview of the current employment situation. I'd like to ask about the large-scale vocational training programs you mentioned earlier. Can you provide more details on the specific measures? How is this work progressing? Thank you.

Yu Jiadong:

Thank you for your interest in vocational training programs. To implement the decisions and plans of the CPC Central Committee and the State Council and respond to the current employment situation, the MOHRSS is working with relevant departments to launch large-scale vocational training programs under the "Skills Illuminate the Future" campaign.

First, we will take an employment-focused approach to make vocational training more targeted. From this year to 2027, we will focus on sectors with substantial employment capacity and strong hiring demand, including elderly care and childcare services, advanced manufacturing, modern services, and emerging occupations. At the same time, we will target key groups, such as rural migrant workers and college graduates seeking employment, to make training programs more targeted and effective. Meanwhile, we will integrate training into industrial chains, leverage enterprises' leading role in training, and create a skills ecosystem that connects industry, education and assessment to promote the integrated development of enterprise employee training, student employment placement, and workforce skill advancement.

Second, we will strengthen policy incentives to boost training enthusiasm among enterprises and workers. We will coordinate employment subsidy funds, unemployment insurance funds, and other funding sources to implement a high-skilled talent development program. This will include establishing high-skilled talent training centers, skills practice facilities, and master craftspeople workshops at qualified enterprises to leverage their leading role in skills training. We will support vocational training for key groups, encourage enterprises to foster high-skilled talent, implement targeted subsidy policies, and boost workers' intrinsic motivation to participate in training.

Third, we will implement the "new eight-level vocational skill rating" system to create smoother pathways for workers to improve their skills and achieve greater success. We will encourage workers to undergo vocational skill level evaluations upon completing their training. Those who earn the relevant professional qualification certificates, or obtain vocational skill level certificates while meeting the eligibility criteria, will receive skill improvement subsidies in accordance with regulations to boost their competitiveness in the job market. Enterprises are encouraged to conduct vocational skills evaluations independently. By promoting the evaluation and appointment of chief technicians and special-grade technicians, companies will be guided to support employees in enhancing their vocational skill levels. Leading enterprises within the vocational skills ecosystem can function directly as vocational skill evaluation institutions. They will conduct skill assessments for employees throughout the production chain, issue vocational skill level certificates, and provide corresponding benefits in compliance with relevant regulations.

Fourth, we will improve the distribution system to promote skill-based income growth for workers. We will establish a skill-based salary distribution system and develop a minimum wage classification reference guide for skilled professionals. This will encourage enterprises to use vocational skill levels as a key factor in determining wages, promoting wage structures that prioritize critical roles, frontline production staff, and urgently needed skilled talent. We will guide enterprises to establish performance-based pay systems. This will align with vocational skill levels (positions). It will enable those who work more, as well as those with higher skills, and those who are willing to innovate to earn more.

Recently, the Ministry of Human Resources and Social Security, together with the NDRC, the Ministry of Civil Affairs, the Ministry of Commerce, and the Medical Insurance Bureau, issued special training programs for workers in elderly care services, domestic services, and long-term care. Going forward, more programs will be developed jointly with other departments, tailored to specific industries and sectors. Local human resources and social security departments are releasing catalogs of training institutions and training projects in accordance with the requirements of the Ministry of Human Resources and Social Security, all to provide guidance for workers so they can participate in training.

Next, we will step up efforts to actively build a system for promoting lifelong vocational skills training.This will enable high-quality and sufficient employment. We will do so through the implementation of a package of measures, all working towards boosting employment, strengthening incentives, supporting growth, and raising incomes through skills. This will encourage and clearly guide workers to participate in training and improve their skills. In turn, they will be able to secure better jobs and build a brighter future with their expertise. Thank you.

Phoenix TV:

We have noticed that after the United States imposed high additional tariffs on China, many foreign trade enterprises have encountered great difficulties in exporting to the United States. May I ask what specific measures the Ministry of Commerce will take next to help these enterprises? Thank you.

Sheng Qiuping:

Thank you for your question. Since the beginning of this year, the development of China's foreign trade has been facing increasingly significant challenges, especially with the United States wantonly imposing unilateral tariffs and undermining Sino-US economic and trade cooperation. However, our vast number of foreign trade enterprises remain confident about their development prospects, and various policies to stabilize foreign trade have continued to be effective. As Mr. Zhao mentioned earlier, our foreign trade exports grew by 6.9% in the first quarter. According to the monitoring and prediction of big data business platforms, the overall exports have continued to grow steadily since April. To help foreign trade enterprises actively respond to external risks and challenges, we will remain goal-oriented and problem-oriented, focus on the needs of a wide range of enterprises, solve difficulties and problems in a timely manner, and ensure the effective implementation of the already issued policies to stabilize foreign trade with persistent efforts. We will continue to enrich the policy toolkit for stabilizing foreign trade and introduce new incremental policies and measures when appropriate. The key points include:

First, we will step up reforms to integrate domestic and foreign trade. On April 22, the Ministry of Commerce, together with relevant departments such as the NDRC, introduced a "package" of policies to help foreign trade enterprises expand domestic sales and accelerate the integration of domestic and foreign trade. Through the combination of "implementing policies and hosting activities," we will increase support for enterprises heavily affected by tariffs in four areas: market channels, domestic consumption, fiscal and financial support, and service guarantees. First, we will increase real financial support and promote the "three increases and three reductions" policy. The "three increases" means the government will increase fiscal funding, financial institutions will increase credit support, and insurance institutions will increase domestic trade insurance support. The "three reductions" policy refers to promoting the reduction or exemption of housing rent, booth fees, and internet traffic charges for struggling enterprises, as well as lowering the domestic sales costs for foreign trade companies. We are carrying out the "China Tour of Foreign Trade Quality Products" nationwide, with the main framework of "1+10+N," which means: holding one launch ceremony, focusing on the top 10 provinces in foreign trade and consumption, and organizing a series of key events. On April 13, we held the launch ceremony in Hainan, and local events of the "China Tour of Foreign Trade Quality Products" have been carried out one after another. We will actively encourage foreign trade enterprises in automobiles, home appliances, 3C, home decoration, and other industries to be included in the companies supporting the "trade-in" policy. In key industries such as light industry, textiles, clothing, and food, we aim to deepen coordination between production and sales, promote brands matching, and connect products with distribution channels. We will mobilize local governments, industry associations, e-commerce platforms, and major supermarkets and retailers to actively participate in the "China Tour of Foreign Trade Quality Products" campaign, working together to cope with external risks and challenges.

Second, we will help explore diversified international markets. The second phase of the 137th Canton Fair concluded yesterday, with 224,000 overseas buyers from 219 countries and regions around the world attending, setting a record high for the same period in its history. We will continue to maintain the importance of leading exhibitions such as the Canton Fair as a platform, and increase support for domestic exhibition fee reduction and exemption policies, strengthen foreign trade funds assistance for international exhibitions, and create a favorable environment for enterprises to expand into new markets. We will also provide more public information services for foreign trade enterprises, including compilations of foreign trade promotion updates and country-specific trade guides, etc., and offer information on the business environment and supply-demand situations of relevant countries for foreign trade enterprises, continuously improving the overseas trade service system.

Third, we will strengthen trade financial support and guarantees. We will work with relevant departments to further expand the scale and coverage of export credit insurance, giving foreign trade enterprises more confidence to take orders. We will guide financial institutions to increase financing support for foreign trade enterprises and make good use of the financial coordination mechanism for small and micro enterprises. This will further promote low-cost funds to directly reach small and micro foreign trade enterprises, optimize exchange rate hedging services for foreign trade enterprises, and enrich the toolkit.

Fourth, the innovative development of cross-border e-commerce has been accelerated. Last year, China's cross-border e-commerce imports and exports reached 2.63 trillion yuan, a year-on-year increase of 10.8%, becoming a new growth driver for stabilizing foreign trade. In response to changes in the external situation, we have accelerated the innovative development of new business forms of foreign trade such as cross-border e-commerce. Last week, the State Council agreed to establish integrated pilot zones for cross-border e-commerce in 15 cities and regions, including the entire Hainan island and Qinhuangdao, expanding the number of such zones in China to 178. We will facilitate the rapid and effective implementation of the newly established integrated pilot zones, while intensifying special campaigns to empower industrial clusters, foster brand cultivation, and enhance international cooperation in cross-border e-commerce, thereby upgrading the development of these pilot zones.

When meeting with representatives of the international business community, President Xi Jinping pointed out that China will unwaveringly advance reform and opening up, and will only open its door even wider. Recently, the "Work Plan for Accelerating the Comprehensive Pilot Program for Expanding Opening-up in the Service Industry" was issued. We are accelerating opening up in key industries such as telecommunications, medical care and finance, and actively promoting the expansion of opening up in the service industry. Next, we will continue to advance high-standard opening up, actively expand imports, build China's supersize market into a large market shared by the world, injecting new momentum into global economic development. We will proactively align with high-standard international economic and trade rules, and promote high-standard opening up in the fields of service trade and investment.

Facing the complex and ever-changing international situation, China will respond to uncertainties in the external environment with the certainty of expanding high-standard opening up, and continuously enhance the level of economic and trade cooperation with its trade partners. Thank you.

Yicai:

This year, General Secretary Xi Jinping presided over a symposium on private enterprises, pointing out the direction for and strengthening confidence in the development of private enterprises. Recently, the China-U.S. trade war has re-escalated, bringing new problems and challenges to the development of private enterprises. What policy arrangements has the PBC made in terms of financial support for the development of private enterprises? Thank you.

Zou Lan:

Thank you for your question. I will answer this one. In recent years, the PBC, in accordance with the arrangements of the CPC Central Committee and the State Council, has worked unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector, actively improved the policy framework, promoted the construction of financial service capabilities, improved the incentive and restraint mechanisms, and strengthened supervision and implementation, providing strong financial support for the high-quality development of the private sector.

First, the guiding role of policies has been strengthened. We have successively organized symposiums and promotional meetings on financial support for the development of private enterprises, and introduced 25 measures to boost financial support for the private sector. These measures have guided financial institutions to adhere to the principle of "equal treatment," eliminate ownership discrimination, and enhance the sense of gain and satisfaction of private enterprises in financial services. To effectively respond to the impact of tariff changes on foreign trade enterprises, financial institutions have been encouraged to increase financial support for private foreign trade enterprises in accordance with market-oriented and law-based principles.

Second, incentives and constraints have been strengthened. We have comprehensively utilized a range of monetary and credit policy tools such as re-lending for supporting agriculture and small businesses across all stages of bank credit services, established and improved mechanisms for policy guidance and funding support, conducted quarterly policy effect evaluations, and urged financial institutions to increase support for private enterprises.

Third, collaboration between departments has been strengthened. Focus has been given to coordination between financial, fiscal and industrial policies. While increasing financial supply, we have guided private enterprises to operate in a lawful, compliant and good-faith manner and improve financing support mechanisms. This approach has ensured that various policies worked in the same direction and formed synergy, so that more financial resources would be guided to flow to small and micro enterprises and private enterprises. As of the end of March 2025, the outstanding loans of privately owned enterprises amounted to approximately 45 trillion yuan, with an increase of 2.4 trillion yuan in the first three months. The number of privately owned enterprises that were granted credit lines exceeded 8 million, up 7% year on year. The weighted average interest rate of new loans issued to privately owned enterprises in March was approximately 3.41%, down 58 basis points from the same period last year.

To address new difficulties and challenges, going forward, the PBC will mainly focus on the following aspects to continue improving financial services for private enterprises:

First, we will continue to increase the input of financial resource elements. We will implement a moderately easy monetary policy and maintain adequate liquidity to create a sound monetary and financial environment for the development of private enterprises. We will continue to work on implementing the 25 measures to provide the private sector with financial support, and gradually increase the proportion of loans to private enterprises. We will make good use of structural monetary policy tools such as re-lending for sci-tech innovation and technological transformation, focus on areas such as science and technology, green and low-carbon development, and consumption promotion to increase financial support for private enterprises. We will urge financial institutions not to rashly withdraw, cut off or defer loans and to actively meet the reasonable funding needs of private foreign trade enterprises.

Second, we will take targeted measures to broaden the diversified financing channels for private enterprises. We will leverage the instruments supporting private enterprises in debt financing to expand the scale of debt financing by private enterprises. We will launch debt financing tools to promote equipment upgrades and consumer goods trade-ins, supporting private enterprises and other entities in bond financing. We will make good use of re-lending facilities for share repurchases and increases to meet the funding needs of private listed companies for market value management. We will improve policies to facilitate cross-border investment and financing to enhance the efficiency of private enterprises in utilizing foreign capital.

Third, we should make greater efforts to promote the improvement of supporting mechanisms for private enterprise financing. We should fully promote the application of the national SMEs capital flow credit information sharing platform, establish a credit enhancement system for private SMEs, and solve the financing constraints such as insufficient credit and information asymmetry for private SMEs. We should continue to strengthen the coordination of financial, fiscal, and industrial policies to jointly create a better development environment for private enterprises. Thank you.

Shou Xiaoli:

Due to time constraints, this will be the last question.

China Daily:

China needs to import a large amount of grain, energy, and other bulk commodities every year. How much impact will the so-called "reciprocal tariffs" imposed by the United States on China have on China's grain and energy supply security? Thank you.

Zhao Chenxin:

Thanks for your question. I will answer it. You have raised a very important question. A few days ago, a friend asked me a question that was almost exactly the same. I take this opportunity to lay out some basic facts for everyone to further understand the situation and put their minds at ease.

Regarding grain. We have consistently followed national food security strategies, focusing on self-sufficiency through domestic grain production, ensuring stable production capacity, maintaining moderate food imports, and leveraging technological support. This is achieved under the strictest arable land protection system. We are committed to innovatively applying agricultural technologies to boost farmland productivity, steadily enhancing overall grain production capacity, improving the grain distribution system, strengthening government reserve management, and diversifying import sources. For the 21st consecutive year, we have achieved a bumper harvest. In 2024, grain production reached a record high of 700 million metric tons, with per capita grain availability at 500 kilograms, significantly exceeding the internationally recognized food security threshold of 400 kilograms. This ensures China's grain self-sufficiency and guarantees the absolute safety of staple food supplies. The Chinese people's food security remains firmly in their own hands. 

In 2024, the proportion of grain imports from the United States, such as sorghum, corn, and soybeans, in China's domestic grain consumption is very low, and they are mostly feed grains. These varieties are highly substitutable, and the international market supply is sufficient; at the same time, domestic grain reserve resources are more than sufficient. Even without purchasing feed grains and oil seeds from the United States, it will not have any impact on China's grain supply.

Regarding energy. China follows the new energy security strategy of "four reforms and one cooperation," steadily enhancing the construction of its energy production, supply, storage, and marketing system. This approach enhances the flexibility and resilience of energy supply while continuously strengthening the country's capacity. China has basically formed an energy supply guarantee system driven by multiple sources, including coal, oil, gas, nuclear, and renewable energy, with an energy self-sufficiency rate maintained at over 80%. Annual crude oil production is stable at over 200 million tons, annual natural gas production has increased by more than 10 billion cubic meters for eight consecutive years, coal reserves and production capacity are abundant, renewable energy power generation capacity is close to 60% of the total installed capacity. The energy reserve system is becoming more complete and significantly stronger. Currently, domestic energy supply is sufficient, and market prices are generally stable.

The United States accounts for a low proportion of our energy imports. In 2024, the total amount of crude oil, natural gas, and coal imported from the U.S. is very small, accounting for a very low proportion of total energy consumption. China's energy imports come from diverse sources. Currently, the international energy market is well-supplied. The reduction or even cessation of energy imports from the U.S. has no impact on our domestic energy supply.

Next, we will work with relevant departments to continue to implement the national strategies for food security, practice the new energy security strategy with higher standards, pragmatically carry out international cooperation, and effectively ensure the stable supply of domestic food and energy with smooth operations in the market.

That's all I have to share. Thank you.

Shou Xiaoli:

Thank you to our speakers, and thank you to all the reporters for your participation. Today's briefing is hereby concluded. Goodbye, everyone.

Translated and edited by Liao Jiaxin, Chen Xinyan, Xu Kailin, Yan Xiaoqing, Xiang Bin, Li Congrong, Wang Mengru, Wang Qian, Zhang Rui, Zhang Junmian, Ma Yujia, Gong YIngchun, Yuan Fang, Huang Shan, Wang Yiming, Li Huiru, David Ball, Tudor Finneran, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Xie Shaofeng, chief engineer of the Ministry of Industry and Information Technology (MIIT)

Mr. Xie Cun, director general of the Information and Communications Development Department of the MIIT

Ms. Tao Qing, spokesperson of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT 

Chairperson:

Mr. Zhou Jianshe, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 18, 2025

Zhou Jianshe:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today's conference is a routine release of economic data. We have invited Mr. Xie Shaofeng, chief engineer of the Ministry of Industry and Information Technology (MIIT), to brief you on China's development of industry and information technology in the first quarter of 2025 and take your questions. Also joining us today are Ms. Tao Qing, spokesperson of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT; and Mr. Xie Cun, director general of the Information and Communications Development Department of the MIIT.

Now, I'll give the floor to Mr. Xie for his introduction.

Xie Shaofeng:

Ladies and gentlemen, good morning. First, I would like to thank you for your continued interest in and support for the development of the industry and information technology sector.

Since the beginning of this year, faced with a more severe and complex external environment, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, the MIIT has thoroughly implemented the guiding principles of the Central Economic Work Conference and the deployments of the Government Work Report. Focusing on the primary task of high-quality development and the key task of new industrialization, we have adhered to the principle of seeking progress while maintaining stability, and promoting stability through progress, actively working with various regions and departments to take the initiative and make proactive efforts. The development of industry and information technology has maintained sound momentum and the economy has continued its steady improvement. The industrial structure has continued to be optimized, and new quality productive forces have been fostered at a faster pace. The first quarter got off to a good start, laying a solid foundation for achieving this year's economic goals.

First, the national economy has witnessed sound momentum. We have promoted the accelerated implementation of existing policies and incremental policies. The added value of industries above designated size increased by 6.5% year on year in the first quarter, 0.8 percentage point faster than in the fourth quarter of last year. The equipment manufacturing industry saw good development, with sectors such as electronics, automobiles and electrical machinery providing notable momentum. In the first two months, the software and information technology service industry generated nearly 1.9 trillion yuan in revenue. In the first quarter, industry contributed 36.3% to overall economic growth, continuing to play its role as a stabilizer. Industrial private investment maintained double-digit growth, while business expectations improved, corporate profitability increased, and the number of industrial enterprises above designated size continued to rise. The manufacturing purchasing managers' index (PMI) expanded for two consecutive months.

Second, development quality has continued to improve. We have accelerated the deep integration of technological innovation and industrial innovation, and fostered new quality productive forces. We have promoted the high-end, intelligent and green development of industry, and continuously enhanced the endogenous momentum of industrial transformation and upgrading. Breakthroughs have been made in landmark products such as humanoid robots, drones, X-ray fluorescence spectrometers, artificial intelligence (AI) agents, and cell and gene therapy drugs. The technology transaction market has remained vibrant. A total of 168,000 technology contracts were registered nationwide, with a transaction volume of over 1.2 trillion yuan, up 10.8% year on year. AI technology has developed rapidly, with the large-scale deployment of autonomous AI models in key industrial fields accelerating. Innovative products such as "AI+" have achieved faster breakthroughs. New intelligent terminal products such as AI-powered cellphones, computers and televisions are entering people's daily lives. We have improved quality and efficiency in fostering smart factories in tiers. More than 30,000 basic-level, 1,200 advanced-level and 230 excellence-level smart factories have been established nationwide, covering over 80% of major manufacturing sectors. The excellence-level intelligent factories have shortened the R&D cycle of products by 28.4% on average, and increased production efficiency by an average of 22.3%. Industry has achieved remarkable results in green and low-carbon transformation, with advances steadily made in energy-saving and carbon-reduction renovations in key industries. We have boosted the promotion and application of advanced green and low-carbon technologies and equipment, and continuously expanded application scenarios for new energy storage such as hydrogen energy. Energy consumption per unit of industrial added value in key industries above designated size continued to reduce.

Third, the digital industry has reached a new level. Digital technologies represented by 5G and large AI models have developed rapidly, with the digital industry achieving year-on-year business revenue growth of 8.2% in the first two months of this year. Network infrastructure capacity has continued to improve. As of the end of March, a total of 4.395 million 5G base stations had been built and put into operation, while the number of 10G passive optical network (PON) ports capable of providing gigabit network services reached 29.25 million. The 5G penetration rate reached 75.9%, and gigabit broadband users totaled 218 million.

Currently, the external environment has become increasingly complex, severe and uncertain. The global trade system and rules have been severely undermined, posing significant uncertainties for global economic and trade development and the stability of industrial and supply chains, while also impacting China's industrial development. However, we have the confidence and the strength to overcome the current difficulties. Our country has a complete industrial system, super-sized markets and well-developed information infrastructure. The industrial economy is resilient, full of potential and vibrant. The fundamentals of high-quality and stable economic development will remain unchanged, providing certainty to global industrial and supply chains.

Going forward, we will focus on managing our own affairs well, promoting reform through greater openness, and fostering win-win outcomes through cooperation. We will work to build a modern industrial system, promote the optimization and upgrading of traditional industries, nurture and expand emerging industries, and make forward-looking plans for future industries. We will promote the deep integration of technological and industrial innovation and accelerate the development of new quality productive forces. We will improve the tiered cultivation system for enterprises, raising the standards in nurturing the specialized and sophisticated "little giant" firms that produce novel and unique products, and gazelle companies, while providing quality services to support the development of small- and medium-sized enterprises (SMEs). We will ensure high-quality supply, advance the development of a unified national market, foster a world-class business environment that is market-oriented, law-based and internationalized, and maintain the momentum of stable and positive development of the industrial economy.

That concludes my introduction. Next, my colleagues and I will be happy to take your questions. Thank you.

Zhou Jianshe:

The floor is now open for questions. Please identify the news outlet you represent before asking your question.

CMG:

The spokesperson mentioned that the industrial economy had a stable start in the first quarter. How do you assess the current performance of the industrial economy? And what other highlights deserve attention? Thank you.

Xie Shaofeng:

Thank you for your questions. I'll answer these. Just now, I mentioned that the industrial economy achieved a good start overall in the first quarter, serving as a solid ballast for stabilizing the macroeconomy. Overall, three main characteristics can be observed: steady progress in major indicators, quality improvement in key industries, and steady progress in major provinces and cities.

First, major indicators have shown steady progress. In the first quarter, the added value of industrial enterprises above designated size increased by 6.5% year-on-year. The share of equipment manufacturing industry and high-tech manufacturing industry in industrial enterprises above designated size increased by 1.9 and 0.5 percentage points year on year, respectively, and the industrial structure continued to be optimized. Exports of industrial products remained resilient, rising by 6.9% year on year, with exports of electromechanical products up 8.7%. The transformation and development of enterprises accelerated, with investment in technological upgrades in industries such as food, chemicals and non-ferrous metals achieving double-digit growth. The number of business entities continued to grow. As of the end of February, the number of industrial enterprises above designated size increased by 7,000 compared with the end of last year.

Second, key industries have maintaining stability while improving quality. The equipment manufacturing industry was a key driver, with the added value increasing by 10.9% year on year in the first quarter, contributing 3.5 percentage points to overall industrial production growth. With the implementation of major national strategies and the enhancement of security capacity in key areas and the support policies on large-scale equipment upgrades and consumer goods trade-in programs, the added value of industries such as electronics, automobiles and electrical machinery and equipment achieved growth of more than 10%. The performance of the raw materials manufacturing industry significantly improved, with profits rising 15.3% year on year in the first two months, while profits in the non-ferrous metal industry increased by more than 20%. The added value of the consumer goods manufacturing industry grew steadily. Driven by the holiday season and strong market demand, production in the agricultural and sideline products, textiles and other industries accelerated, with the growth rate of the chemical fiber weaving, dyeing and finishing industries exceeding 10%.

Third, major provinces and cities have improved steadily. Regions took early action, with many holding their "First Meeting of the New Year" and stepping up efforts to strengthen policy support, promote project implementation, facilitate supply and demand connections, and enhance enterprise services. Key regions played a prominent role, fully assuming a leading position. The industrial added value above designated size in 31 provinces recorded positive growth, with many major industrial provinces such as Zhejiang, Fujian, Jiangsu and Shandong seeing growth rates above 8%. Profits of industrial enterprises above designated size in major industrial provinces such as Hubei and Henan achieved double-digit growth. Industrial growth in major industrial cities such as Yantai and Dalian also reached double digits.

At present, China's industrial economy maintains a positive development trend, and we have the capability, confidence, and determination to address various complex situations. Moving ahead, we will thoroughly implement the guiding principles of the Central Economic Work Conference, and fully execute the tasks outlined in the government work report. We will focus on expanding demand, cultivating momentum, stabilizing expectations, preventing risks, and stimulating vitality to continuously improve the quality and efficiency of industrial economic operations and consolidate the positive recovery trend. Thank you.

China Electronics News:

In recent years, the CPC Central Committee has attached great importance to developing new quality productive forces. As important components of new quality productive forces, how do you view the development of the electronic information manufacturing industry and the software and information technology services industry in the first quarter of this year? What were the highlights? Thank you.

Xie Shaofeng:

Thank you for your questions. I would like to invite my colleague, Mr. Xie Cun, to answer your questions.

Xie Cun:

Thank you for your questions. In the first quarter of 2025, the value-added output of computer, communication, and other electronic equipment manufacturing enterprises above designated size increased 11.5% year on year, 5 percentage points higher than the overall industrial value-added growth rate for the same period. In the first two months, the software and information technology services industry achieved revenue of 1.8965 trillion yuan, up 9.9% year on year and maintaining steady growth. Total profit for the software industry reached 232.8 billion yuan, a year-on-year increase of 10.7%.

In terms of electronic product consumption, the policy benefits from expanding new purchase subsidies have continued to be realized, effectively stimulating consumer demand. Driven by subsidy policies and AI devices, Chinese consumers' enthusiasm for electronic products has risen, accelerating production and sales of electronic equipment. In the first quarter, computer production reached 85.322 million units, up 9.6% year on year. Television shipments totaled 8.84 million units, up 4.7% year on year, marking positive growth for two consecutive quarters. From January to February, 5G mobile phone shipments reached 41.619 million units, up 7.6% year on year, with domestic brand phones particularly popular among consumers, accounting for 85% of shipments. The surge in finished product sales also drove modest growth in upstream electronic component production. In the first quarter, integrated circuit and optoelectronic device output increased 6% and 3.5% year on year, respectively.

In terms of industrial project construction, coordinated policies have driven progress, and investment enthusiasm has risen remarkably. Chinese regions have taken advantage of policies supporting implementation of major national strategies and security capacity building in key areas, as well as large-scale equipment renewal and consumer goods trade-in programs, to push forward with project development. Multiple integrated circuit and new display projects in Shanghai, Guangdong, and other regions have been making steady progress. In the first quarter, fixed-asset investment in computer, communication, and other electronic equipment manufacturing enterprises above designated size grew 10.5% year on year, 6.3 percentage points higher than the national fixed-asset investment growth rate.

In terms of software ecosystem development, open source potential has continued to emerge, showing initial success in empowering a wide range of industries. More than 10 provinces and municipalities across the country have introduced innovative open source support measures, fully utilizing existing policy tools, and actively supporting open source project incubation and commercialization through technological upgrades and innovative product promotion. The OpenHarmony ecosystem has continued to expand, with over 70 community partners and specialized versions including MineHarmony OS, Power HarmonyOS, Yi Hong AOS, and Police HarmonyOS successively launched. With more than 1 billion equipped devices, it has accelerated the development of digital foundation for the Internet of Everything in various fields such as energy, finance, health care, education and industry. Cumulative installations of the openEuler system have exceeded 10 million. Chinese open source models represented by DeepSeek have gained international recognition by adopting a more open approach that fully open-sources advanced models, parameter weights, inference logic, and tool chains. This transforms developers from technical "consumers" into "co-creators," significantly advancing technological equality and opening new opportunities for AI commercialization.

Going forward, we will maintain technology-driven and application-led approaches while continuing to strengthen high-quality electronic information software and hardware supply. We will accelerate the development and release of new action plans for steady growth in the electronic information manufacturing industry and persistently advance software and hardware technology breakthroughs. We will also strengthen promotion of exemplary consumer electronics applications and successful pilot demonstrations, encourage more apps to join the HarmonyOS app store to meet people's diverse needs, and continuously improve user experience. We encourage all parties to embrace open source more fully by contributing to and utilizing these technologies to accelerate the creation of a mutually beneficial software ecosystem that is built and shared by all. Thank you.

Dazhong Daily:

Since the beginning of this year, large AI models represented by DeepSeek have sparked widespread discussion. How do you evaluate the current development situation of China's AI industry? What progress has the MIIT made in promoting AI's role in facilitating new industrialization? Thank you.

Xie Shaofeng:

Thanks for your questions. As you mentioned, recently domestic large models like DeepSeek have become very popular, sparking enthusiasm for applications and innovation across society, which also reflects the rapid breakthroughs in AI technology. The manufacturing industry is an important field for the application of AI technology products. In recent years, the integrated development of AI and the manufacturing industry has accelerated, with outstanding results and numerous highlights, mainly characterized by the following aspects.

First, the industrial foundation is continuously being consolidated. China has formed a complete industrial system covering the basic layer, framework layer, model layer, and application layer. The scale of computing power ranks among the top in the world, high-quality industry datasets for steel, coal, and other sectors have been established, a batch of highly competitive general large models and industrial large models have been cultivated, and domestic large models have topped the download charts of major global open-source communities, creating the "China speed."

Second, product and equipment iteration is accelerating. Domestic manufacturers have developed over a hundred intelligent products such as AI phones, AI computers, and AI glasses, achieving an upgrade in intelligence. Mainstream humanoid robot products are now capable of "standing steadily, walking stably, and running fast," and are accelerating the transition from "moving on stage" to "being used in factories." They can perform acrobatics, dance, as well as carry heavy objects and tighten screws, accelerating their application in manufacturing scenarios, such as assisting in automotive production line operations and supporting intelligent sorting and handling.

Third, application empowerment is steadily advancing. Large models are accelerating their application in industries such as electronics, raw materials, and consumer goods, as well as in research and development, pilot testing, production, and operation management. During our local research on typical cases, we discovered that a flat panel display company in Beijing used large models to generate production schedules with a single click, cutting scheduling time by 75%. An electronic equipment manufacturing company in Shenyang used large models to promote the automation of industrial design, increasing production efficiency by 40%. We are continuously carrying out "deep empowerment" activities, creating online and offline platforms, promoting precise docking between supply and demand enterprises, and guiding the intelligent transformation of the industry.

Fourth, the industrial ecosystem continues to be optimized. We are promoting the construction of 11 national pilot zones for AI innovation and application through collaboration between central ministries and provincial governments. We have established manufacturing innovation centers for embodied intelligent robots and humanoid robots, with joint efforts from central and local levels, promoting the clustered development of the industry. To promote the integration of industry and finance, we jointly established a national AI fund of 60 billion yuan with the Ministry of Finance to accelerate the layout of investment projects. We provided stronger guidance on standards by issuing the "Guidelines for the Construction of a Comprehensive Standardization System for the National Artificial Intelligence Industry", and formulated more than 40 key industrial standards and more than 10 international standards. We are focused on cultivating market entities, and have cumulatively cultivated more than 400 national-level "little giant" AI enterprises which use specialized and sophisticated technologies to produce novel and unique products.

This year's government work report proposes to continue to promote the "AI Plus" initiative, better combine digital technology with manufacturing advantages and market advantages, and support large-scale and widespread application. Next, we will fully promote AI to empower new industrialization. On one hand, we will focus on supply. We will organize open competitions to select top candidates to lead AI research projects that empower new industrialization. We will optimize the research and development frameworks for both general large models and industry-specific large models, accelerate the creation of high-quality industrial datasets, strengthen the foundation, and promote intelligent industrialization. On the other hand, we will focus on application. We will drive the intelligent upgrading of manufacturing processes, key industries, and major products, while speeding up the industrialization and commercialization of the next generation of super-intelligent terminals. We will continue the "deep empowerment" activities and carry out the collection of typical cases, selecting the "top 10 industries, top 100 scenarios, and top 1,000 benchmarks", and promote industrial intelligence. At the same time, we need to build an ecosystem, guiding patient capital to increase support, and accelerate the cultivation of a number of leading enterprises and small and medium-sized enterprises (SMEs) that use specialized and sophisticated technologies to produce novel and unique products. We will build an open-source community for AI, leverage the role of the technical committee for AI standardization, accelerate the development of urgently needed key standards, and strengthen talent introduction and cultivation, ethical governance, and international cooperation, continuously fostering a good industrial ecosystem. Thank you.

People's Daily Online:

We have noticed that recently, the MIIT released the first batch of China's top consumer brands. What positive role has this played in strengthening the supply of high-quality consumer goods and meeting consumer demands? In this regard, the government work report clearly proposed to vigorously boost consumption and comprehensively expand domestic demand. What are the next steps the MIIT is considering in terms of boosting consumption? Thank you.

Xie Shaofeng:

Thank you for your questions. I would like to invite Ms. Tao to answer them.

Tao Qing:

Thank you for your questions. The consumer goods industry accounts for more than one-quarter of total industrial output, serving as an important support for stable industrial operations. In the first quarter, value-added output of consumer goods enterprises above designated size increased 5.2% year on year, up 0.7 percentage point compared to the whole of last year. From January to February, the profit margin of consumer goods enterprises above designated size rose 0.1 percentage point compared to the whole of last year, with the industry's overall development trend remaining stable with positive momentum.

Recently, the General Office of the CPC Central Committee and the General Office of the State Council issued the Special Action Plan for Boosting Consumption, which clearly proposes building a matrix of renowned Chinese consumer brands. This represents an important measure to increase high-quality supply and enhance consumption quality. The MIIT has been actively implementing this plan and recently released its first batch of renowned Chinese consumer brands, including 93 corporate brands and 43 regional brands. The corporate brand selection focuses on technological innovation and market orientation, with value assessed from multiple dimensions, including product innovation, market competitiveness, brand influence, and cultural empowerment capabilities. The selection includes 11 century-spanning heritage brands, 75 internationally leading contemporary brands, and seven trendy new consumer brands, providing authoritative guidance for consumers in selecting quality products. The regional brand selection focuses on local specialty industries, with brands distributed across 25 provinces nationwide. For example, according to personal preference, you can add a bit of Zhenjiang vinegar to Lanzhou beef noodles, pair it with a cup of Yihong Gongfu tea or Ningxia goji berry water, and enjoy the premium experience that quality brand products deliver.

Looking ahead, the MIIT will resolutely implement the CPC Central Committee and the State Council's decisions and arrangements for boosting consumption, strengthen interdepartmental coordination, accelerate industrial transformation and upgrading, and better meet the public's multi-level and diversified consumption needs. We will also focus on upgrades across three areas. First, we will promote industrial upgrading on the supply side by releasing and implementing digital transformation plans for key industries, continuously advancing key projects for equipment renewal and technological transformation in key areas, and systematically carrying out the construction of Chinese consumer brand lineups. We will also organize consumer brand conferences to lead and create consumer demand through quality supply. Second, we will promote quality improvement on the consumption side by intensifying the expansion of consumer goods trade-in programs, continuously releasing and upgrading guides for innovative consumer goods, and recommending model cases of "AI + consumption." We will also actively create new consumption models and scenarios to effectively promote consumer market quality and expansion. Third, we will create a sound environment for boosting consumption by organizing promotional activities such as the "National Tour of Popular Consumer Brands," textile and apparel campaigns like "Better Supply, Better Upgrade," and food-themed events like "Foodie Season." In coordination with relevant departments, we will strengthen product quality supervision to create a sound consumer market environment, enhance public trust, recognition, and satisfaction, and lay a solid foundation for promoting steady economic recovery. Thank you.

Cover News:

How did the information and communications industry perform in the first quarter? Can you detail what progress has been made? What are the key priorities for accelerating the industry's development moving forward? Thank you.

Xie Shaofeng:

Thank you for your questions. Mr. Xie Cun will answer your questions.

Xie Cun:

Thank you for your questions. Since the beginning of this year, the MIIT has adhered to the general working principle of seeking progress while maintaining stability and has promoted the steady and orderly development of the information and communications industry. In the first quarter, total telecommunications business volume increased 7.7% year on year, with cumulative business revenue reaching 446.9 billion yuan, establishing a solid foundation for the full year's work. This is mainly reflected in the following four aspects.

Network infrastructure continues to be strengthened. A total of 4.395 million 5G base stations have been built, achieving 5G coverage for every township, with 5G connectivity reaching 90% of administrative villages. Building on the achievements of gigabit optical network coverage for every county, pilot projects for 10-gigabit optical networks have been launched, with trial deployments in 168 communities, factories and parks across 86 cities nationwide. Radio frequencies from 2G, 3G, and 4G systems have been refarmed for 5G, continuously improving 5G network capacity and signal coverage. The number of standard racks in operational computing power centers has exceeded 9 million.

Applications continue to drive significant benefits. Networks built well also need to be used well. We have continued to expand the popularization and application of 5G and other networks. In terms of individual users, 5G mobile subscribers have reached 1.068 billion and gigabit broadband users now total 218 million. In the industrial field, China has launched more than 18,500 "5G plus Industrial Internet" construction projects nationwide and selected 700 high-level 5G factories. 5G applications have been integrated into 80 of the 97 major categories of the national economy, with total use cases exceeding 138,000. The technology has achieved large-scale deployment in mining, ports, and other sectors, effectively helping industrial enterprises improve quality, reduce costs and increase efficiency. In health care and education, 5G has achieved comprehensive coverage across all processes and scenarios, strongly supporting the efficient, convenient and balanced development of public services.

Industrial innovation continues to deepen. China holds more than 42% of 5G standard essential patent declarations worldwide, demonstrating world-leading technological and industrial capabilities. Given widespread interest in 6G R&D, we guided the establishment of the IMT-2030 (6G) Promotion Group to consolidate efforts in advancing 6G innovation. The group has released more than 50 research outcomes, including the "6G Overall Vision and Potential Key Technologies" white paper, and organized testing and verification of key 6G technologies, such as integrated sensing and communication and wireless AI, to accelerate technological development. At the same time, we have further strengthened international collaboration on 6G technology with the EU, South Korea, India, and other countries and regions.

We have continued to expand opening up. In the first quarter, China granted pilot licenses for value-added telecommunications services to 13 foreign-funded enterprises, encouraging foreign investment and deeper market engagement in China. As of the end of March, China had more than 2,400 foreign-invested telecoms companies, up 26.5% from the same period last year.

Going forward, the MIIT will thoroughly implement the government work report's directives, strengthen policy support and resource guarantees, and make greater efforts in terms of scope, depth and intensity to promote high-quality industry development. We will focus on expanding the scope of network construction and applications, continuously enhancing coverage of "dual gigabit" 5G and fiber networks, and systematically advancing computing infrastructure network development. We will thoroughly implement the upgraded "5G plus Industrial Internet" 512 project and the three-year industrial internet identifier integration action plan. We will conduct comprehensive assessments of key cities in the 5G "Setting Sail" action plan and continue promoting large-scale deployment across typical industries and key fields. China is actively developing innovative applications in emerging sectors such as marine industry and low-altitude equipment. We will focus on deepening the integration of scientific and technological innovation with industry by bringing together stakeholders from industry, academia, research institutes and application sectors. This includes accelerating 6G technology R&D, standards development, pilot testing and industrial deployment while strengthening breakthroughs in integrated technologies, including communications, sensing, AI and computing. We will also proactively establish and cultivate a 6G-oriented application ecosystem. We will focus on expanding the opening up of the telecoms industry by systematically advancing the first batch of value-added telecoms service pilot programs. We will study opportunities to further expand the scope of opening up at appropriate times, with the aim of attracting more qualified foreign-funded enterprises to invest and operate telecom services in China. Thank you.

Hong Kong Bauhinia Magazine:

The changing external environment has created significant challenges for SMEs. How did SMEs in China perform in the first quarter of this year? What are the main initiatives the MIIT has undertaken to support SMEs? What measures will be taken next to better assist enterprise development? Thank you.

Xie Shaofeng:

Thank you for your questions. I will answer them. First, thank you for your interest in our work supporting SMEs. In the first quarter, SMEs maintained a generally stable economic performance with steady progress. The value added of industrial SMEs above designated size grew 8.2% year on year, with companies showing increased production enthusiasm and steady growth in operating profits. This demonstrates the resilience and vitality of SMEs, providing strong support for the industrial economy's stable start to the year. In implementing the decisions and plans of the CPC Central Committee and the State Council on SME development, we have focused on addressing the pain points and challenges facing SMEs through an approach we call "two optimizations and two promotions." These efforts strongly supported high-quality SME development.

"Two optimizations" refers to optimizing the business environment and optimizing services to support enterprises. In terms of the business environment, we addressed the issue of overdue payments to SMEs by promoting revisions to the Regulations on Ensuring Payment to Small- and Medium-Sized Enterprises. The revisions further clarify payment deadlines and strengthen penalties for violations. We have established a unified complaint platform for overdue SME payments and strengthened supervisory mechanisms, including written inquiries, official interviews and oversight notifications to effectively protect the legitimate rights and interests of SMEs. In terms of enterprise support services, we collaborated with 16 departments to launch the "Together for the Benefit of Enterprises" SME service initiative, introducing 73 specific support measures. We continued to enhance China's "one network" services for SMEs, including the newly launched "Model Search" section, to strengthen personalized and targeted services. To date, the service network has served 1.02 million enterprises and provided more than 54,000 free self-assessment services covering specialized and sophisticated enterprise classification, scale, type and other categories. We worked with 14 departments to issue the Guiding Opinions on Promoting Small- and Medium-Sized Enterprises to Enhance Compliance Awareness and Strengthen Compliance Management, enhancing SMEs' risk prevention and control capabilities. We have encouraged all regions to strengthen systematic support services for overseas expansion based on local conditions, helping SMEs explore international markets and access information channels.

Regarding the "Two Promotions," the first refers to the promotion of the development of enterprises that use specialized and sophisticated technologies to produce novel and unique products. This involves organizing specific profiling and comprehensive evaluation of more than 100,000 small- and medium-sized enterprises (SMEs) that use specialized and sophisticated technologies to produce novel and unique products to help them secure financing and increase their credit. At the same time, a quantitative evaluation has been conducted on the cultivation of SMEs that use specialized and sophisticated technologies to produce novel and unique products in 31 provinces, guiding local governments to enhance gradient cultivation and services. The second refers to the promotion of the development of industrial clusters. A total of 300 national-level characteristic industrial clusters of SMEs have been cultivated and recognized, and more than 1,100 provincial-level clusters have been cultivated nationwide. Last year, the 300 national-level clusters created an output value of 8.7 trillion yuan, with an average annual growth rate of 13% over the past three years, playing an important role in cultivating high-quality SMEs, driving county-level economic development, and accelerating the construction of a modern industrial system.

Next, we will work unswervingly both to consolidate and develop the public sector, and to encourage, support and guide development of the non-public sector. We will insist on giving equal emphasis to service and management, development and assistance, and continuously improve the legal policy system, public service system and gradient cultivation system of high-quality enterprises. We will carry out the campaign to consolidate foundations and enhance the quality of enterprises that use specialized and sophisticated technologies to produce novel and unique products, and strengthen services in areas such as digital transformation, talent introduction and cultivation, and investment and financing, to strongly support the high-quality development of SMEs. Thank you.

China Securities Journal:

My questions are regarding the equipment manufacturing industry. Can you introduce the performance of China's equipment manufacturing industry in the first quarter? In which fields have there been new highlights and breakthroughs? Going forward, what measures will be taken to further support the high-quality development of the equipment manufacturing industry? Thank you.

Xie Shaofeng:

Thank you for your questions. I would like to invite Ms. Tao to answer your questions.

Tao Qing:

Thank you for your questions. In the first quarter of this year, driven by relevant policies such as special actions to boost consumption, and policies such as the expansion of the "two new" initiatives of equipment renewal and consumer goods trade-ins, the domestic demand potential of industries such as new energy vehicles and intelligent manufacturing equipment was further stimulated. China's equipment manufacturing industry sustained upward momentum of recovery and growth since last year, achieving a good start that can be characterized as "steady growth across industry as a whole, with highlights in various sub-sectors."

In terms of the overall industry, both production and sales are stable, with steady business expectations. On one hand, the production and sales of key products have been steadily increasing. In the first quarter, nearly 70% of key products in the equipment manufacturing industry achieved growth, with the proportion reaching 69.2%, an increase of 16.7 percentage points compared to the same period last year. The production and sales of bulk commodities such as automobiles have continued to improve, reaching 7.561 million and 7.47 million units respectively, with increases of 14.5% and 11.2% year on year. Among them, the production and sales of new energy vehicles reached 3.182 million and 3.075 million units respectively, with increases of 50.4% and 47.1% year on year. The production of industrial robots and service robots reached 149,000 sets and 2.604 million sets, up 26% and 20% year on year, respectively. In addition, investment in key industries has been steadily increasing. In the first quarter, the investment growth rate and private investment growth rate of three key industries, namely general equipment manufacturing, automobile manufacturing, and railway, ship, aerospace and other transportation equipment manufacturing, all reached about 20%, indicating that business expectations are very stable. At the same time, thanks to the expansion of the policies concerning equipment renewal and consumer goods trade-ins, the purchase investment of equipment and tools in the industrial field increased by 16.3% year on year, 7.2 percentage points higher than the growth rate for the whole of last year.

From the perspective of sub-sectors, the development of land, sea, air and electric equipment manufacturing has continued to improve, and the intelligent equipment industry has been developing rapidly. In the low-altitude equipment manufacturing industry, as of now, 716 companies have completed registration in the civil unmanned aerial vehicle product information system, with 2,327 registered products and more than 2.91 million units. The world's first four-seat electric aircraft has been awarded the type certificate by the Civil Aviation Administration of China. In the shipbuilding industry, key shipbuilding enterprises have been performing well and are basically operating at full capacity. The overall construction progress of the second domestically built large cruise ship, the Adora Flora City, has exceeded 65% and will soon undergo its first dock floating. In the power equipment manufacturing industry, from January to February, the total installed power generation capacity nationwide reached 3.4 billion kilowatts, up 14.5% year on year, of which the installed wind power capacity was 530 million kilowatts, up 17.6% year on year. The intelligently connected new energy vehicle industry has been developing rapidly, with the average driving range of vehicles approaching 500 kilometers. The fast-charging technology that charges a battery to 80% in 15 minutes has achieved mass production and deployment. The pilot program for market access and on-road operation of intelligently connected vehicles is progressing in an orderly manner. New-generation intelligent equipment such as intelligent robots has been continuously developing and growing. The application of mobile manipulator robots in manufacturing processes of sectors such as aerospace, semiconductors and pharmaceuticals has exceeded 1,000 units. Explosion-proof industrial robots have obtained domestic and international explosion-proof certifications and have achieved large-scale application in the manufacturing of rail transit equipment and automobiles.

Next, we will implement the decisions and plans of the CPC Central Committee and the State Council, and continue to promote the high-quality development of the equipment industry with the focus on stabilizing growth, addressing weaknesses and promoting transformation. In terms of stabilizing growth, we will focus on introducing new rounds of work plans for stabilizing growth in the three industries of machinery, automobiles and power equipment, promoting technological transformation and equipment renewal in key industries, and expanding effective demand in all aspects through coordinated efforts between both supply and demand sides. In terms of addressing weaknesses, we will thoroughly implement the campaigns of "Machine Tool Plus," and "Robots Plus," and further promote high-end medical equipment supply-demand matchmaking and application, continuously enhancing the resilience and security of industrial and supply chains in key areas. In terms of promoting transformation, we will focus on introducing implementation plans for the digital transformation of related industries, promoting the deep integration and application of new technologies such as AI with equipment products, continuously enhancing the supply and support capacity of high-quality equipment. Thank you.

The Poster News APP:

The industrial internet has been included in the government work report for eight consecutive years. What is the current state of development of the industrial internet in China? What measures involving the industrial internet will be taken this year to empower the digital transformation of industries? Thank you.

Xie Shaofeng:

Thank you for your questions. I would like to invite Mr. Xie to answer your questions.

Xie Cun:

Thank you for your questions. The industrial internet is the product of the deep integration of new-generation information and communication technology with manufacturing. It is the key foundation for the deep integration of the real economy and the digital economy. The government work report has made strategic deployments on the development of the industrial internet for eight consecutive years. In recent years, we have worked with various departments, localities and industry sectors to thoroughly implement the industrial internet innovation and development project, and build an integrated system with five key functions of network, identification, platform, data and security. We have promoted the growth of the industrial internet from scratch, building its size, and the systematic development is now at the forefront globally.

Currently, the industrial internet has been applied in all 41 major industrial categories in China. Last year, the core industry scale exceeded 1.5 trillion yuan, driving economic growth by nearly 3.5 trillion yuan, providing important support for promoting new industrialization and building a modern industrial system. First, it has opened up the "information arteries." High-quality public industrial networks now cover more than 97% of China's prefecture-level regions, providing fast, ubiquitous, cloud-network-integrated, and intelligent digital channels for industrial chains, supply chains and innovation chains. Second, it has activated the "data meridians." An independently controllable identification and resolution architecture has been established. The national top-level nodes are running stably, with 383 secondary nodes now deployed. The number of registered identifiers has exceeded 650 billion, serving more than 500,000 enterprises. The National Industrial Internet Big Data Center has aggregated 1.4 billion pieces of industrial data and preliminarily built an industrial model corpus. Third, it has provided an "industrial brain." There are more than 340 industrial internet platforms with a certain amount of influence. Key platforms connect over 100 million units of industrial equipment. Nationwide, enterprises have cumulatively accessed the cloud and platforms about 4 million times. These have offered more visualized and refined tools for economic operations and government governance.

Next, we will focus on unleashing the effectiveness of large-scale applications, accelerate the deep integration of the industrial internet and AI. We will provide stronger support for promoting industrial digital transformation and accelerate the construction of a modern industrial system.

First, we will strengthen policy guidance. We will accelerate the release of guidance on promoting the high-quality development of the industrial internet, and roll out an upgraded version of "5G + Industrial Internet." We will implement the three-year action plan for identifier connectivity and the action plan for high-quality platform development, improve basic institutions and market-based mechanisms for industrial data circulation, and deepen classified and tiered security management.

Second, we will consolidate infrastructure. We will systematically promote breakthroughs in key technologies of the industrial internet and upgrades in infrastructure construction, and accelerate technological innovation and industrial application of industrial 5G chips, modules and smart devices. We will carry out orderly construction of dedicated industrial 5G private networks, build a new type of industrial network system, launch version 2.0 of the identifier resolution system, and advance the integration of the industrial internet with AI.

Third, we will expand large-scale applications. We will implement the project to integrate the blockchain and industrial internet, release integration application guidelines for key industries such as the shipbuilding, petrochemical, automotive and textile industries, and select typical application cases and high-quality solutions by category. We will promote at a high level and with high standards the construction of pilot cities for "5G + Industrial Internet" integration and 5G factories, and carry out campaigns in hundreds of cities in a bid to accelerate the expansion of the industrial internet into their industrial parks, bases and clusters. Thank you.

Xinhua Finance:

The steel industry is a foundational industry in our country. Recently, the MIIT issued the "Specifications for the Steel Industry (2025 Edition)." What are the new changes? And what are the further considerations? Thank you.

Xie Shaofeng:

Thank you for your questions. I would like to invite Ms. Tao to answer your questions.

Tao Qing:

Thank you for your questions. In January this year, General Secretary Xi Jinping said during his inspection trip to Ansteel that the steel industry is an important foundational industry of the country, urging continued efforts to strengthen weak links, optimize industrial structures and contribute more to Chinese modernization. The important speech by General Secretary Xi Jinping clarified the positioning of the steel industry, pointed out its development direction and endowed it with a new historical mission.

Currently, the steel industry is operating steadily overall, and has entered a new stage of development with the aim of reducing quantity and improving quality. Business performance has gradually improved, with operating costs of key steel enterprises falling by 9.6% year on year and the average sales profit margin of steel products increasing by 0.67 percentage point year on year. The structure of steel products has continued to be optimized. In the first quarter, the output of steel bars for construction was 48.11 million metric tons, a decrease of 2.9%; the output of extra-thick plates, medium plates, coated plates and plated plates used in the manufacturing field increased by more than 10% year on year, with a total output of 38.84 million metric tons; and the output of crude steel has remained basically stable, reaching 259 million metric tons, a slight increase of 0.6% year on year.

In order to thoroughly implement the spirit of General Secretary Xi Jinping's important speech and promote the high-quality development of the industry, the MIIT issued the "Specifications for the Steel Industry (2025 Edition)" this February to accelerate transformation and improve quality. The new version of the specifications has three major changes:

First, the basic indicator requirements have been comprehensively improved. In combination with new requirements of relevant policies, and standards and specifications concerning market supervision, safe production, energy conservation and emission reduction, comprehensive updates and improvements have been made regarding basic indicator requirements for process equipment, environmental protection, resource consumption and safe production. For example, the pollutant emission indicators are clear, and the full-process ultra-low emission transformation will be completed and publicized from 2026. The safety production indicator has been adjusted from no occurrence of major or above production safety accidents to no occurrence of relatively large or above production safety accidents.

Second, leading indicators have been established. Indicators have been established to evaluate high-end, intelligent, green, efficient, safe and distinctive high-quality development. Taking high-end development as an example, a comprehensive evaluation of enterprises has been conducted from such dimensions as scientific research, quality, patents and standards, in order to measure the level of high-end development of enterprises, clarify development advantages and weaknesses, and provide clear guidance for further transformation and improvement of enterprises.

Third, tiered and classified evaluations have been carried out. Relying on the basic indicator and leading indicator evaluation system, we establish benchmarks for standardized enterprises and leading standardized enterprises. Through tiered and classified management of steel enterprises, we will guide enterprises to benchmark against advanced ones, undergo transformation and upgrading, and comprehensively improve the level of industry development.

Next, we will organize the implementation of the 2025 specifications for the steel industry, let the market play a decisive role, and follow policy guidance. We will accelerate the transformation and upgrading of the industry, let the "old tree" of the steel industry sprout new buds and regain vitality, bravely take the lead in promoting the new industrialization, and make greater contributions to Chinese modernization. Thank you.

Zhou Jianshe:

Due to the time limit, we will take one last question.

Zhonghongwang.com:

In May last year, the State Council adopted an action plan aimed at advancing the digital transformation of manufacturing during an executive meeting. What key tasks has the MIIT implemented in the past year since the adoption of the plan? What progress has been made? And what are the next steps? Thank you.

Xie Shaofeng:

Thank you for your questions. I will answer these questions. The MIIT has always fully implemented the decisions and deployments of the CPC Central Committee and the State Council. It has consistently regarded the integration of informatization and industrialization as the essential feature of and the path to new industrialization, thoroughly implemented digital transformation of manufacturing, strengthened overall planning and efforts, and focused on laying foundations, promoting integration and improving services. It has promoted the large-scale popularization and application of digital technologies in the manufacturing sector and accelerated the pace of digital transformation in the manufacturing industry.

On the one hand, we have accelerated the comprehensive, full-chain application of next-generation information technology, promoting coordinated digital transformation across all dimensions. We have supported the first batch of 20 cities in conducting pilot programs for new technology transformations in the manufacturing sector. First, we have cultivated exemplary enterprises, cumulatively building more than 30,000 basic-level smart factories and over 230 excellence-level smart factories. We have nurtured a total of 14,600 specialized, refined, distinctive, and innovative "little giant" enterprises, with more than 140,000 provincial-level SMEs that use specialized and sophisticated technologies to produce novel and unique products, and over 600,000 high-tech and innovative SMEs. Second, we have adopted an industrial chain-based approach to promote the digital transformation of key industries. We have issued digital transformation implementation plans for critical sectors, including power equipment, light industry, petrochemicals, steel, non-ferrous metals and building materials. We have identified typical digitalization scenarios within each industry and are advancing targeted transformation through comprehensive mapping and scenario-based approaches. Third, we have strived to improve the digital level of industrial parks and clusters. We have built high-standard digital industrial clusters, and continuously carried out programs that support industrial parks to embrace integrated industrial internet initiatives and smart manufacturing. As of the end of March, the penetration rate of digital R&D and design tools among industrial enterprises reached 83.5%, while the digitalization rate of key production processes stood at 66.2%.

On the other hand, we have developed and expanded the information technology industry while advancing digital infrastructure construction. New technological breakthroughs have been made in large AI models, with rapid advancement in capacity building and specific scenario applications. The total number of standard racks in use at data centers nationwide has exceeded 9 million, with a total computing power of 280 EFLOPS. This means the system can complete 280 quintillion floating-point operations per second. The value of data as a production factor is accelerating, with China's overall data transaction market size last year exceeding 160 billion yuan. In the first two months of this year, combined revenue from cloud computing and big data services surged 8.8% year on year, exceeding 237.5 billion yuan. We have launched 10-gigabit optical network pilot projects, built the world's largest optical fiber and mobile broadband network, and achieved large-scale deployment of the industrial internet. The identifier resolution system has been comprehensively established. There are now over 340 industrial internet platforms with a certain level of influence, and the number of connected industrial devices on key platforms has exceeded 100 million units, serving 4 million enterprises and covering all 41 major industrial categories.

Looking ahead, we will anchor ourselves to the goal of new industrialization, unswervingly follow the path of integrated development of informatization and industrialization, and strengthen cross-departmental coordination and ministry-province coordination. We will ensure enterprises serve as the main players, adhere to industry-specific strategies, focus on supply-demand alignment, and promote integrated digital transformation in all dimensions. We will systematically advance smart-technology upgrades, digital transformation and enterprise network connectivity, promote the comprehensive integration and empowerment of digital technology across the entire value chain, and use digital transformation to boost high-end, intelligent and green development in the manufacturing sector. These efforts will provide strong support for high-quality economic development. Thank you.

Zhou Jianshe:

That concludes today's press conference. Thank you to our three speakers, thank you to all our journalist friends, and goodbye everyone.

Translated and edited by Liu Jianing, Mi Xingang, You Jiaxin, Wang Yanfang, Guo Yiming, Xu Kailin, Yang Xi, Li Xiao, Wang Qian, Ma Yujia, Li Huiru, Fan Junmei, Zhang Junmian, David Ball, Tudor Finneran, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC)

Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 14, 2025

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will conduct a routine release of economic data. We have invited Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to introduce China's import and export performance in the first quarter of this year and answer your questions. Also attending today's press conference is Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC.

Now, I'll give the floor to Mr. Wang for his introduction.

Wang Lingjun:

Good morning. I will start by briefing you on the import and export performance in the first quarter of this year, and then my colleague Mr. Lyu and I will answer your questions.

Since the beginning of this year, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China has adhered to the general principle of pursuing progress while maintaining stability, fully and faithfully applied the new development philosophy, accelerated efforts to foster a new pattern of development, and solidly promoted high-quality development. Both existing policies and incremental policies have continued to exert their effects. The economy has got off to a steady start, and the development trend is positive and dynamic. China's foreign trade has withstood pressure, achieving growth in scale and improvement in quality. Customs statistics show that in the first quarter of this year, China's foreign trade in goods stood at 10.3 trillion yuan, up 1.3% year on year. Exports were 6.13 trillion yuan, up by 6.9%, and imports were 4.17 trillion yuan, down by 6%. Specifically, there were four main features:

First, the growth rate of imports and exports rebounded month by month. In the first quarter, China's imports and exports reached a record high for the same period, exceeding 10 trillion yuan for eight consecutive quarters. Looking at the monthly trends, imports and exports fell by 2.2% in January, remained basically flat in February, and grew by 6% in March.

Second, the proportion of private enterprises in imports and exports increased. In the first quarter, the imports and exports of private enterprises in China reached 5.85 trillion yuan, an increase of 5.8%, accounting for 56.8% of the total import and export value, an increase of 2.4 percentage points compared with the same period last year. During the same period, the imports and exports of foreign-invested enterprises reached 2.99 trillion yuan, an increase of 0.4%, accounting for 29% of the total import and export value.

Third, the growth rate of imports and exports with countries participating in the Belt and Road Initiative (BRI) was higher than the overall level. In the first quarter, China's imports and exports with BRI partner countries reached 5.26 trillion yuan, increasing by 2.2%, which was 0.9 percentage points higher than the overall growth, accounting for 51.1% of the total import and export value. Among these, imports and exports with ASEAN countries reached 1.71 trillion yuan, up 7.1%.

Fourth, the imports and exports of mechanical and electrical products grew rapidly. In the first quarter, China's imports and exports of mechanical and electrical products reached 5.29 trillion yuan, an increase of 7.7%. Among these, exports of goods such as household appliances, notebook computers and electronic components grew relatively quickly; and imports of parts and components of automatic data processing equipment, ships and offshore engineering equipment also grew relatively quickly.

Generally speaking, in the face of increasing external difficulties and challenges, local governments, various departments and a large number of foreign-trade operators actively responded, promoting a stable start for China's imports and exports in the first quarter.

Recently, the United States government has wantonly imposed tariffs, which will inevitably have a negative impact on global trade, including that between China and the U.S. China has resolutely taken necessary countermeasures in a timely manner. This is not only to safeguard its legitimate rights and interests but also to defend international trade rules and international fairness and justice. China will unswervingly promote a high level of opening up and carry out mutually beneficial economic and trade cooperation with other countries.

Customs authorities will resolutely implement the decisions and deployments of the Party Central Committee, firmly uphold their duties, strictly implement all countermeasures against the U.S. in accordance with the law, and safeguard national sovereignty, security and development interests. We will accelerate the construction of smart customs and international cooperation, innovate customs supervision systems, continuously improve supervision efficiency and service levels, facilitate enterprises' customs clearance, and promote the stable development of foreign trade with more optimized supervision, higher security, greater convenience and stricter anti-smuggling efforts. Thank you.

Xing Huina:

Thank you, Mr. Wang, for your introduction. We will now move on to the Q&A session. Please raise your hand if you have a question. Please identify your news outlet before asking your question.

Yicai:

You just mentioned that imports and exports achieved stable growth in the first quarter. Could you please share some highlights and positive developments in China's foreign trade sector so far this year? Thank you.

Wang Lingjun:

Since the beginning of this year, despite weak global economic momentum, rising trade protectionism and ongoing geopolitical tensions, China's foreign trade has achieved steady growth in import and export volumes, while the quality of development has also continued to improve. These positive changes are reflected in four key aspects:

First, the vitality of business entities has further increased. In the first quarter, the number of Chinese enterprises engaged in import and export reached 529,000, an increase of 33,000 compared to the same period last year. Among them, the number of private enterprises reached a historical high of 455,000, accounting for 86.1% of all enterprises engaged in import and export during the same period.

Second, the scope of international cooperation has further expanded. In the first quarter, China's trade with traditional markets remained resilient, with imports and exports to Germany, Spain and the United Kingdom registering strong growth. The high-quality joint construction of the Belt and Road continues to deepen and deliver concrete results. The growth rate of imports and exports with BRI partner countries was 0.9 percentage points higher than the overall rate, including a 7.1% increase in trade with ASEAN and a 6.9% increase with the five Central Asian countries.

Third, the regional layout for opening up has been further optimized. China's central and western regions have continued to leverage their strengths, undertake industrial transfers in an orderly manner, and further unleash their foreign trade potential. In the first quarter, imports and exports in China's central and western regions reached 1.84 trillion yuan, an increase of 8.7%, which was 7.4 percentage points higher than the national average growth rate. Their share of the country's total foreign trade also rose by 1.2 percentage points year on year, reaching 17.9%.

Fourth, foreign trade now features more innovation and new growth drivers. New quality productive forces have accelerated development, cultivating a number of upstream and downstream enterprises in the equipment industry chain with strong supporting capabilities and excellent product performance, thus promoting China's foreign trade toward more new growth drivers. In the first quarter, imports and exports of equipment manufacturing products increased by 7.6%, accounting for nearly half of China's total foreign trade. New domestic products are constantly being launched, and the export scale of homegrown brands has increased year by year, with their share continuing to rise. In the first quarter, exports grew by 10.2%, and their proportion of the total export value further increased to 22.8%. Thank you.

Dazhong Daily:

In recent years, ASEAN has maintained its position as China's largest trading partner. Could you provide some details about China's imports and exports with ASEAN in the first quarter of this year? And what are the prospects for future trade between China and ASEAN? Thank you.

Lyu Daliang:

Thank you for your questions. China and ASEAN are close neighbors that have long leveraged their respective resource and industrial structure advantages. Through intensive cooperation and joint efforts, their economic and trade relations have grown increasingly close, with trade complementarity continuing to strengthen. In the first quarter of this year, ASEAN remained China's largest trade partner, with total imports and exports reaching 1.71 trillion yuan, increasing by 7.1% year on year. This accounted for 16.6% of China's overall foreign trade.

China and ASEAN are jointly committed to the integrated development of the regional economy. The close connections between their industrial chains have driven the rapid growth in imports and exports of upstream and downstream products. In the first quarter, manufactured goods accounted for 90.1% of trade between China and ASEAN. Notably, China's exports of flat panel display modules, auto parts and lithium batteries to ASEAN all increased by more than 20%. Meanwhile, China's imports from ASEAN of parts for automatic data processing equipment, printed circuits and textile raw materials continued to grow.

China and the 10 ASEAN countries have a combined population of over 2 billion people, accounting for about one-quarter of the global total. The openness, integration and shared development of both sides have continued to unleash market potential, setting an example of cooperation amid the headwinds facing globalization. Taking agricultural cooperation as an example, ASEAN has been China's largest trading partner for agricultural products for eight consecutive years since 2017. In the first quarter of this year, China's imports of agricultural products from ASEAN reached 52.65 billion yuan, increasing by 13.8%, while exports to ASEAN were 37.92 billion yuan, up by 1.4%. The advantageous agricultural products of both sides have met each other's diverse needs.

We have made steady progress in building infrastructure connectivity with ASEAN, resulting in smoother trade exchanges and turning both sides' resource strengths into tangible economic gains. In the first quarter of this year, China's imports and exports with ASEAN via rail, road, water and air transportation increased by 37%, 23.2%, 5.8% and 16.4%, respectively. Since its launch more than three years ago, the China-Laos Railway has operated more than 50,000 cargo train services. Meanwhile, rail-sea intermodal routes along the New International Land-Sea Trade Corridor enable seamless transfers, allowing cargo to move directly between ship and train without delay.

China and ASEAN are connected by mountains and rivers and share close cultural ties with a long history of friendly exchanges. The Version 3.0 China-ASEAN Free Trade Area upgrade negotiations have substantially concluded. Moving forward, both sides will expand mutually beneficial cooperation in emerging areas such as the digital economy, green economy, and supply chain connectivity; strengthen alignment in standards and rules; and jointly promote trade facilitation and inclusive development. We are confident that, through the joint efforts of China and ASEAN countries, we will achieve new and greater progress in economic and trade cooperation. Thank you.

CMG:

This year's government work report emphasized the importance of "vigorously encouraging foreign investment." Just now, it was also noted that imports and exports of foreign-invested enterprises continued to grow in the first quarter. Could you please provide more details? Thank you.

Wang Lingjun:

Thank you for your question. Foreign-invested enterprises play a key role in Chinese modernization. They are major contributors to China's reform, opening up, and innovation efforts, and serve as vital links connecting China with the world and integrating it into the global economy. According to statistics, foreign-invested enterprises have accounted for roughly one-third of China's total foreign trade over the past five years.

In the first quarter of this year, more than 67,000 foreign-invested enterprises recorded import and export activity, marking the highest level for this period in the past three years. Their total trade reached 2.99 trillion yuan, maintaining growth for the fourth consecutive quarter. Notably, foreign-invested enterprises accounted for over 40% of China's imports and exports of high-tech products, including electronic information products, biopharmaceuticals and medical instruments.

At present, China has fully lifted foreign investment restrictions in the manufacturing sector, while the green, digital and intelligent transformation of industries is accelerating. Meanwhile, the country continues tofoster a first-rate business environment that is market-oriented, law-based, and internationalized. These efforts will help foreign-invested enterprises fully leverage their strengths in China and gain a competitive edge in the global market. On March 28, President Xi Jinping met with representatives of the international business community and delivered an important speech that greatly boosted confidence among foreign investors. TheChina Development Forum 2025 was recently held in Beijing, attracting 86 official representatives from multinational companies across 21 countries. The number of first-time attendees from multinational companies also reached a record high, reflecting widespread confidence among foreign-invested enterprises in China's growth prospects. Thank you.

Phoenix TV:

Mr. Wang, you mentioned that China's foreign trade advanced despite many difficulties and challenges in the first quarter, with exports still managing to grow by 6.9%. Could you share what factors are driving the growth in exports? Given the increasing pressures from tariff disputes and other challenges, what are the expectations for exports in the coming period? Thank you.

Wang Lingjun:

Thank you for your questions. Indeed, China's exports showed remarkable resilience under pressure in the first quarter. I'd like to invite Mr. Lyu to provide a detailed analysis of this.

Lyu Daliang:

Thank you for your questions. Allow me to share some details about China's export performance in the first quarter.

In the first quarter, China's export volume exceeded 6 trillion yuan, achieving a robust year-on-year growth of 6.9%, demonstrating strong resilience in the face of external pressures. In our view, this performance can be attributed to several factors, including demand, innovation and competitiveness.

In terms of international market demand, the average PMI in the manufacturing sector in the first quarter was 49.9%, higher than in both the fourth quarter of 2024 and the same period last year. In March, the manufacturing sectors in both Asia and Africa expanded. Customs data shows that China's exports to these two regions increased by 7.8% and 12.5%, respectively, with both growth rates exceeding the overall average. Consumer spending in the EU and the U.K. increased quarter on quarter, and their consumer confidence indexes remained relatively stable, helping to drive demand for our products in these markets. In the first quarter, China's exports to more than 170 countries and regions all registered growth.

In terms of domestic industrial innovation, China's manufacturing sector is showing strong momentum in its transition toward higher-end, smarter and greener production. For example, China's exports of ships and marine engineering equipment have grown for four consecutive years, with a 10.8% increase in the first quarter. Exports of specialized equipment have risen for nine straight years, growing by 16.2% in the first quarter. China's new energy products continue to play an important role in the global green transition. In the first quarter, exports of wind turbines, lithium batteries and electric vehicles increased by 43.2%, 18.8% and 8.2%, respectively.

At the same time, many foreign trade operators have responded quickly to the diverse demands of the global market. By leveraging well-developed supply chains, rapid transformation and flexible operations, some traditional industries are introducing new, popular and bestselling products, breathing fresh life into their competitiveness. Industries such as toys and apparel have adopted a "small-batch, quick-response" model, allowing them to swiftly fulfill orders. This has shortened delivery times from about one month to less than a week and significantly boosted international competitiveness. In the consumer goods sector, trendy Chinese products are continuously emerging and gaining widespread recognition and praise around the world. In the first quarter, China's exports of sporting goods to the EU and cosmetics to Southeast Asia both posted double-digit growth.

At present, China's exports are indeed facing a complex and challenging external environment, but the sky isn't falling. In recent years, China has actively developed diverse markets and deepened cooperation on industrial and supply chains with partners around the world. That approach has not only supported the development of other countries but has also strengthened China's own resilience. Meanwhile, China's vast domestic market continues to serve as a key pillar of support. We will remain steadfast in managing our own affairs and will navigate external uncertainties with stability at home. Thank you.

Bloomberg News:

My first question is, the WTO early this month announced they are lowering the forecast for global trade volume growth this year to minus 1% from their previous forecast 3% growth. How do you expect this, or do you expect this to also fall through the Chinese export growth? And my second question is how will they change the de minimis regulation that the U.S. has announced that affect China's e-commerce growth?

Wang Lingjun:

Thank you for your questions. As I mentioned earlier, the U.S. government has recently imposed arbitrary tariffs globally, running counter to international trends. This move has been widely opposed by affected countries and criticized by international organizations. The WTO immediately issued a statement saying that the U.S. approach will significantly impact the outlook for global trade and economic growth, leading to a contraction in global goods trade volume. The organization also called on member countries to stand united and engage in constructive dialogue through the WTO platform to seek cooperative solutions. China will work with all parties to uphold genuine multilateralism, jointly safeguard the multilateral trading system with the WTO at its core, and defend international fairness and justice. Thank you.

Elephant News:

We have noticed that imports and exports by private enterprises maintained rapid growth in the first quarter. What were the specific highlights? The symposium on private enterprises held earlier this year emphasized that private enterprises should unswervingly follow the path of high-quality development. What measures have customs authorities taken to support the development of private enterprises? Thank you.

Wang Lingjun:

Thank you for your question. Private enterprises are the largest contributors to China's foreign trade. Their vitality drives the dynamism of the country's foreign trade sector. In the first quarter, imports and exports by private enterprises grew by 5.8%, outpacing the national growth rate by 4.5 percentage points. Their share of total trade rose to 56.8%. Along with this rapid growth in trade volume, the quality of development is also steadily improving.

In the first quarter, private enterprises recorded import and export growth with nearly 180 countries and regions worldwide. In emerging markets, imports and exports with ASEAN, Africa and Latin America increased by 7.4%, 9.6% and 5.2%, respectively. In traditional markets, trade with the EU grew by 7.1% and with Japan by 4.8%.

At the same time, private enterprises have become an important force in China's technological innovation. From low-cost, highly intelligent AI open-source models to robotic dancers at the CMG Spring Festival Gala, private enterprises have demonstrated a vigorous spirit of innovation. You may recall that during the Spring Festival Gala, robots performing the yangko dance alongside humans captured widespread attention, creating a stunning blend of visual artistry and technology.

In the foreign trade field, private enterprises set a new record in the first quarter for the imports and exports of high-tech products, reaching nearly 1 trillion yuan and maintaining their position as the largest import-export entities. Among these, exports of industrial robots grew by 67.4% and exports of high-end machine tools increased by 16.4%. Imports of high-end equipment rose by 25.6%, while imports of surgical robots jumped by 47.5%.

Customs has firmly implemented the "two unwavering commitments": unwaveringly consolidating and developing the public sector, and unwaveringly encouraging, supporting, and guiding the development of the non-public sector. We have deepened reforms as well as improved regulatory systems. It has also actively supported private enterprises in stabilizing expectations, securing orders and expanding their markets. Take AEO certification, commonly known as the "green pass" for global trade, as an example. Customs continues to strengthen efforts to support key industries, enabling more private companies to benefit from faster customs clearance and lower trade costs. In the first quarter alone, the number of private enterprises obtaining AEO certification increased by 116 to reach a total of 2,670. During the same period, exports and imports by AEO-certified private enterprises grew by 8.6% and 8.5%, respectively — 1.6 and 5 percentage points higher than the overall growth rate for private enterprises. Thank you.

Xinhua Finance:

The data just presented shows a decline in imports this quarter. What were the main reasons for this? How do you view future imports? Thank you.

Lyu Daliang:

Thank you for your questions. The change in imports in the first quarter was the result of multiple factors, with some products increasing and others declining. In particular, due to falling international bulk commodities prices, the average import prices of iron ore and coal dropped by more than 20% in the first quarter, while the average import prices of crude oil and soybeans fell by 5.7% and 16.6%, respectively. These price factors lowered the overall import growth rate by 2.6 percentage points. In addition, the first quarter of this year had two fewer working days than the same period last year, which also reduced the import growth rate by about 2 percentage points.

Looking more closely, rapid growth in domestic industrial production drove an increase in imports of components and equipment. In March, China's manufacturing PMI remained in expansionary territory, signaling continued momentum in the sector's recovery. Notably, industries such as computer, communications and electronic equipment, as well as rail, shipbuilding and aerospace equipment, saw production and demand pick up quickly. As a result, imports of key components and high-tech equipment required by these sectors increased significantly. In the first quarter, imports of automatic data processing equipment and components rose by 95.6%, while imports of shipbuilding and marine engineering equipment increased by 52.5%.

China's consumption market also showed steady growth, contributing to an increase in imports of consumer goods. Booming domestic consumption during the Spring Festival highlighted the vitality of China's consumer sector. In the first quarter, imports of certain consumer products increased, with edible oil rising by 12.1% and fresh and dried fruits up 8.3%.

China is the world's largest manufacturing country and the second-largest consumer market, with a complete industrial system and strong supporting capabilities. With a population of over 1.4 billion and more than 400 million middle-income people, various consumption scenarios are flourishing. Market demand is strong, both from industrial production and from consumer spending. In particular, China remains committed to high-level opening up, steadily expanding its independent and unilateral openness while actively increasing imports and sharing development opportunities with countries around the world. China has maintained its position as the world's second-largest importer for 16 consecutive years, with an average annual growth rate of 5.4%. The country's share of global imports has steadily risen from 7.9% to 10.5%. Both now and in the future, there is significant potential for import growth in China, and the country's vast market continues to present major opportunities for the world. Thank you.

Economic Herald:

This year marks the 50th anniversary of the establishment of diplomatic relations between China and the European Union. Could you provide an update on China-EU imports and exports in the first quarter? What is your outlook for trade between China and the EU? Thank you.

Wang Lingjun:

Thank you for your questions. China and the EU are each other's most important trading partners, with bilateral trade growing from $2.4 billion at the beginning of diplomatic relations to the current $780 billion. In the first quarter of this year, China's imports and exports with the EU reached 1.3 trillion yuan, up 1.4% and equivalent to over 10 million yuan in trade every minute.

The Chinese and European economies are highly complementary, with closely intertwined interests driving positive development in bilateral trade. Three key sectors highlight this trade relationship, starting with consumer goods. In the first quarter, 72% of bags and suitcases, 51.7% of passenger cars, and 42.2% of cosmetics imported by China came from the EU. Meanwhile, China's exports of electronics and electric appliances, clothing and apparel accessories, and daily chemical products to the EU increased by 7.7%, 3% and 16.1%, respectively. Looking at the high-tech sector, China imported 64 billion yuan of high-end equipment from the EU in the first quarter, up 30.4% and accounting for 32.9% of China's total imports in this category. Meanwhile, China's exports of industrial robots and high-end machine tools to the EU increased by 81.9% and 11.7%, respectively. Finally, in the agricultural sector, China's imports of beer and pork from the EU increased by 25.7% and 17.5%, respectively, in the first quarter. Meanwhile, China's exports of aquatic products and dried and fresh fruits to the EU rose 34.4% and 10.8%, respectively.

China and the EU together account for more than one-third of the global economy. Both advocate for economic globalization and trade liberalization and firmly support the World Trade Organization. The two sides share broad common interests and have enormous potential for cooperation in many areas. Amid increasing global economic instability and uncertainty, China and the EU are engaging in close communication and cooperation to jointly maintain free and open trade and investment while ensuring stable and smooth global industrial and supply chains. This cooperation will bring greater stability and certainty to both economies and the global market. Thank you.

The Poster News APP:

How did China's imports and exports with Belt and Road partner countries perform in the first quarter? What new measures does the GACC have to promote the BRI? Thank you.

Lyu Daliang:

Thank you for your questions. In the first quarter, China's imports and exports with countries participating in the BRI reached 5.26 trillion yuan, up 2.2% year on year, hitting an all-time high for the same period. After surpassing 50% of China's total foreign trade for the first time last year, this share continued to rise in the first quarter of this year, reaching 51.1%.

A series of landmark projects and "small but beautiful" projects that are practical and benefit people's livelihoods have taken root in Belt and Road partner countries, stimulating trade in related products. China has also deepened industrial cooperation with participating countries. In the first quarter, intermediate goods accounted for 65.1% of imports and exports between China and participating countries. China has continued to expand agricultural cooperation with participating countries. In the first quarter, China's export of pesticide formulations to these nations increased by 15.5%, while agricultural machinery exports rose 37.2%. Imports of poultry meat from these countries grew 32.9%, and imports of dried and fresh fruits increased by 8.5%. China is actively pursuing practical cooperation with Belt and Road countries in sectors affecting daily life. In the first quarter, Chinese exports of pharmaceuticals and drugs to these countries increased 14.6%, while exports of medical services and equipment rose 5.1%. China continues supporting participating countries in improving their transportation and energy infrastructure. In the first quarter, Chinese exports of rail transportation equipment to these nations increased 10.7%, electric motors and generators rose 17.4%, and wind power generators jumped 67.4%.

Currently, the BRI is the most extensive and largest international cooperation platform in the world. Participating countries account for more than 40% of global GDP and over 50% of global exports, with growing influence and representation in global governance. The BRI, as a path toward prosperity, openness and innovation, has effectively unleashed development potential across participating countries, bringing tangible benefits to their economies and improving people's lives.

This year, the GACC will continue to be guided by the eight major steps of high-quality Belt and Road cooperation, focusing on participating countries, actively promoting the "Smart Customs" partnership program, and deepening institutional cooperation with partner countries on customs inspection and quarantine. We will continue to strongly support the development of projects such as the China-Europe Railway Express, the New International Land-Sea Trade Corridor, and the Maritime Silk Road, continuously advancing customs clearance facilitation and security, and promoting the deepening and solidification of high-quality BRI cooperation. Thank you.

Market News International:

Trade tensions between China and the U.S. have escalated recently. What specific impact will this have on China-U.S. trade? Is there a possibility of the two nations decoupling? How will China respond?

Wang Lingjun:

Thank you for your questions. On April 9, the Chinese government released a white paper titled China's Position on Some Issues Concerning China-U.S. Economic and Trade Relations. You may have read this document. This white paper, supported by extensive facts and data, demonstrates that the core of China-U.S. economic and trade relations is mutual benefit. It reflects economic laws at work and possesses strong internal momentum. In the first quarter of this year, despite disruptions and impacts from the U.S. government's reckless and arbitrary tariffs, China-U.S. bilateral trade still grew, reaching a total import and export volume of 1.11 trillion yuan, a 4% increase.

The U.S. has imposed arbitrary tariffs on all trading partners, including China, under various pretexts. As previously noted, this will inevitably have a negative impact on global trade, including China-U.S. trade.

The U.S. side's so-called "reciprocal tariffs" overturn the existing international economic and trade order by prioritizing U.S. interests over the shared interests of the international community. This constitutes typical tariff bullying, represents a serious violation of WTO rules, severely undermines the rules-based multilateral trading system, and significantly destabilizes the global economic order.

There are no winners in a trade war, and protectionism is no path forward. The U.S. government's actions have sparked widespread opposition worldwide. China has taken firm countermeasures and will continue working with all parties to jointly oppose U.S. tariff bullying and hegemonic behavior. It will also work to defend the multilateral trading system and economic globalization. We urge the U.S. side to immediately correct its misguided actions and resolve trade disputes through equal dialogue based on the principle of mutual respect. Thank you.

Zhonghongwang.com:

I am particularly interested in the export data from China's central and western regions for the first quarter. What are the key factors driving import and export growth in these regions? What role did the first quarter play in sustaining stable growth in the nation's overall import and export performance? Thank you.

Wang Lingjun:

The achievements of the central and western regions in the first quarter are very impressive. Mr. Lyu, could you please comment on this?

Lyu Daliang:

Thank you for your questions. I will now provide a detailed overview of the foreign trade in the central and western regions during the first quarter. In terms of scale, the central and western regions recorded import and export values of 1.84 trillion yuan in the first quarter, marking an impressive 8.7% increase. This growth was primarily driven by four main factors:

First, the foreign trade sector has continued to improve in quality and undergo upgrading. The central and western regions are using technological innovation to drive industrial innovation. They're promoting upgrading, improving quality and enhancing efficiency in traditional industries. In the first quarter, exports of mechanical and electrical products from the central and western regions reached 783.21 billion yuan, up 17.4% year on year. This export growth rate outpaced the national average for similar products by 8.7 percentage points, accounting for 64.7% of the regions' total export value. Among these, exports of automatic data processing equipment and parts, mobile phones, and automobiles grew by 8.4%, 21.4% and 9.3%, respectively. 

Second, open ports are facilitating development. Last year, Guanlei Port in Yunnan province and Ezhou Huahu International Airport Port in Hubei province passed opening acceptance inspections, while the Biedieli Port in Xinjiang Uygur autonomous region was approved for operation. The water, land and air transport systems in China's central and western regions have been further enhanced by these developments. I'd like to highlight Ezhou Huahu International Airport, Asia's first professional cargo hub airport and the world's fourth. In the first quarter of this year, customs processed 77,000 metric tons of goods imported and exported through Huahu Airport, marking a fourfold increase. Additionally, Youyiguan Port, or Friendship Pass, at the China-Vietnam border is developing China's first smart cross-border port. Supported by three intelligent platforms, it has reduced cargo inspection waiting time by 20% and quarantine processing time by 3.5 hours. The port is expected to further lower clearance costs and significantly boost efficiency. In the first quarter, Youyiguan Port saw an 18.4% increase in import and export volumes.

Third, progress on major transport corridors is picking up pace. The New International Land-Sea Trade Corridor has achieved seamless land-river-sea connectivity. The China-Europe Trans-Caspian Express has begun operations, while the "Tianfu" cross-border freight truck service to Central Asia is now underway. Together, these developments have established multiple open routes characterized by internal-external synergy and mutual benefits in both directions. In the first quarter, the central and western regions recorded imports and exports worth 187.19 billion yuan via the New International Land-Sea Trade Corridor, representing a 17.3% increase.

Fourth, open cooperation with neighboring countries continues to expand. Border provinces in China's central and western regions have fully capitalized on their geographical advantages by strengthening connectivity and interconnection networks with neighboring countries, while accelerating industrial and supply chain cooperation. In the first quarter, imports and exports between the central and western regions and neighboring countries increased by 7.7%. Among them, imports and exports to Vietnam and Kyrgyzstan increased by 10% and 4.8%, respectively, accounting for 35.6% and 54.8% of China's total trade value with Vietnam and Kyrgyzstan during the same period. Recently, the Central Conference on Work Related to Foreign Affairs with Neighboring Countries was held in Beijing, where it was announced that China will further deepen its open cooperation with its neighbors. Thank you.

CNBC:

I have two questions. In order to reduce costs, footwear and luggage exporters to the U.S. have said they might shift some of their production capacity from China to other countries. How much do products like shoes account for in China's total exports? What is the difference from that of high-tech products? And what is your outlook on this? My second question is regarding China Customs' recent announcement that it will suspend import permits for Darling Ingredients due to the presence of salmonella. The company said there was no salmonella and that it did not sell many products to China. What is your response to that? Thank you.

Lyu Daliang:

Let me start by answering your first question. Customs statistics are compiled based on the "Harmonized Commodity Description and Coding System," commonly referred to as the HS Code, formulated by the World Customs Organization (WCO). Regarding the products like shoes and high-tech products you mentioned, I am not sure about the specific HS Code range. After the meeting, if you can provide specific commodity codes, we can assist in the inquiry. Of course, you can also conduct self-service inquiries on our website.

Your second question concerns salmonella, an issue that involves food safety. Recently, China Customs detected salmonella in poultry meat and bone meal imported from the U.S., and in accordance with laws and regulations suspended the export permits to China of three enterprises involved. Customs also issued an announcement and informed the relevant U.S. authorities of the non-conforming products. The enterprise you just mentioned is one of these three enterprises. Chinese customs will, as always, strengthen the inspection and quarantine of imported products in strict accordance with laws and regulations to ensure the safety of imports. Thank you.

China News Service:

This year's "two sessions" emphasized that major economically developed provinces should shoulder greater responsibility in order to successfully accomplish the development targets for the 14th Five-Year Plan. How was the performance of major foreign trade powerhouses in the first quarter of this year? And what are the highlights? Thank you.

Wang Lingjun:

Thank you for your questions. Since the beginning of this year, faced with a severe and complex external environment, major foreign trade provinces and cities have taken on greater responsibilities, leveraged their respective advantages, and played a strong role in supporting and driving economic growth. In the first quarter, the total imports and exports of Guangdong, Jiangsu, Zhejiang, Shanghai, Beijing, Shandong and Fujian reached 7.78 trillion yuan, sustaining the growth momentum, and accounting for three quarters of China's total trade volume. Indeed, they have served as powerhouses assuming major responsibilities. This situation is reflected in three main aspects:

First, they have effectively stabilized the overall foreign trade. Major foreign trade provinces have solid industrial foundations, prominent geographical advantages and vibrant trade entities. In the first quarter, the number of enterprises with substantial import and export achievements reached 422,000, increasing by 6.1%, and accounting for nearly 80% of China's total. At the same time, these provinces have actively expanded international markets, boosting imports and exports with more than 150 countries and regions, with growth rates in 89 countries and regions exceeding the overall level.

Second, they have effectively leveraged their role in inspiring innovation. Major foreign trade provinces have actively cultivated and developed new quality productive forces, accelerating the integration of technological and industrial innovation. In the first quarter, exports of high-tech products by these provinces reached 783.52 billion yuan, up 4.5%, accounting for 71.3% of China's total. Among them, exports of electronic information products, high-end equipment, and biomedicine amounted to 385.71 billion yuan, 236.58 billion yuan, and 30.11 billion yuan respectively, with growth rates of 1.6%, 8.9% and 9.9%, accounting for 66%, 78.4% and 74.8% of China's total.

Third, they have effectively stabilized industrial and supply chains. Major foreign trade provinces imported energy resources, critical components and consumer goods essential to life and production, accounting for a large proportion of China's total imports, and enriching domestic supply. In the first quarter, crude oil and metal ore imported by these provinces accounted for 83.1% and 67.6% of China's total, and imports of electronic components and automatic data processing equipment parts accounted for 78% and 88.1% of China's total. In addition, consumer goods imported by these provinces amounted to 318.42 billion yuan, accounting for more than 80% of China's total. Thank you.

Xing Huina:

We will have one last question.

National Business Daily:

We have noticed that this year's government work report emphasizes that "we will promote Smart Customs development and cooperation to further simplify customs clearance procedures." Could you introduce the latest progress and the next key plans concerning the development of smart customs? Thank you.

Wang Lingjun:

The government work report has indeed put forward requirements for the development of smart customs for two consecutive years. I would like to invite Mr. Lyu to answer this question.

Lyu Daliang:

Thank you for your question. As Mr. Wang just mentioned, the government work report has made arrangements for the development of smart customs for two consecutive years. Over the past year, taking digital transformation and intelligent upgrade as the main paths, the GACC has on the one hand advanced the reform and innovation of supervision systems and the optimization of procedures and on the other hand has actively introduced cutting-edge technologies such as big data and AI, to promote the comprehensive transformation and upgrading of customs supervision services to ensure safety, facilitation and efficiency at the same time and to fully serve the high-quality development of foreign trade and support high-standard opening up.

At present, we have gradually established a smart customs framework system represented by nine major landmark projects, accelerated the construction, application and replication of various business scenario promotions, and made significant progress in safeguarding national security at the borders, facilitating smooth and convenient customs clearance, and promoting convenience for the people and enterprises.

For example, we have developed and applied intelligent gates for health and quarantine monitoring, integrating multiple functions such as temperature monitoring and infectious disease risk monitoring, providing a new seamless customs clearance experience for inbound and outbound travelers. We have increased the application of intelligent image review technology. By using intelligent models, we have achieved intelligent early warning, automatic targeting and precise interception of risks related to the safe entry and trade control of goods and items. This has reinforced China's border security and become a calling card of Chinese customs in the international customs community. We have implemented the model of remote video inspection for imported copper concentrate transported by rail. This approach ensures quality and safety control while enabling precision cargo sorting, effectively alleviating port congestion, improving customs clearance efficiency, and saving logistics costs for enterprises.

This year, in accordance with the arrangements of the government work report, we will further focus on smart customs development and cooperation.

In terms of development, our goal is to achieve overall integration and basic functionality. We will accelerate the development, implementation and application of various operation scenarios, focusing on integration, promote the transformation and upgrading of customs operations and optimization and the redesigning of procedures. This aims to create a new smart customs clearance experience characterized by "seamless clearance, intelligent supervision, minimal interruption and ubiquitous regulatory services."

In terms of cooperation, we will continue to deepen communication and cooperation with the WTO and WCO. We will continuously promote the development of a global online cooperation platform for smart customs, accelerate the creation of the BRICS Customs Demonstration Center, and facilitate more practical cooperation, contributing ideas and solutions to the modernization of global customs. Thank you.

Xing Huina:

Today's press conference is hereby concluded. Thank you to the speakers and journalists. Goodbye.

Translated and edited by Liao Jiaxin, Mi Xingang, Liu Caiyi, Liu Jianing, Xiang Bin, Yan Xiaoqing, Zhang Rui, Xu Kailin, Wang Qian, Fan Junmei, Huang Shan, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Gama Cedain, deputy secretary of the Communist Party of China (CPC) Xizang Autonomous Regional Committee and chairman of the People's Government of the Xizang Autonomous Region

Mr. Wang Haizhou, a member of the Standing Committee of the CPC Xizang Autonomous Regional Committee and director general of the Publicity Department of the CPC Xizang Autonomous Regional Committee

Mr. Xu Zhitao, vice chairman of the People's Government of the Xizang Autonomous Region

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 28, 2025

Shou Xiaoli:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO) in Lhasa, Xizang autonomous region. Today, we are joined by Mr. Gama Cedain, deputy secretary of the Communist Party of China (CPC) Xizang Autonomous Regional Committee and chairman of the People's Government of the Xizang Autonomous Region; Mr. Wang Haizhou, a member of the Standing Committee of the CPC Xizang Autonomous Regional Committee and director general of the Publicity Department of the CPC Xizang Autonomous Regional Committee; and Mr. Xu Zhitao, vice chairman of the People's Government of the Xizang Autonomous Region. This year marks the 60th anniversary of the establishment of Xizang autonomous region. As we commemorate the emancipation of the 1 million serfs in the region today, the SCIO publishes this white paper "Human Rights in Xizang in the New Era." Through detailed statistics and objective facts, the white paper fully presents the sound development and all-round progress of human rights in Xizang since its peaceful liberation, especially in the new era, highlighting that living a life of contentment is the ultimate human right in Xizang.

Now, I will briefly introduce the main contents of the document. The white paper consists of a preface, main body and conclusion. The main body contains seven sections concerning the protection of specific rights.

First, whole-process people's democracy is extensive, genuine and effective. Xizang has fully implemented regional ethnic autonomy. Citizens' rights to vote and to stand for election, people's rights to be informed and to participate, as well as their rights to expression and oversight are protected in a strict, full and effective manner. The people's status as masters of the region has been better reflected, and is having a greater impact. The people of Xizang enjoy full, extensive, genuine, concrete and effective democratic rights in accordance with the law. Currently, Xizang has instituted 790 outreach offices for deputies to people's congresses, Chinese People's Political Consultative Conference (CPPCC) organizations have been established in all 74 county-level administrative units in the region, and the 12345 government service hotline has been launched to respond to public concerns in a timely manner.

Second, economic and social rights are better protected. Fully and faithfully following the new development philosophy in all fields, Xizang has focused on improving people's lives and strengthening unity in social and economic development. The rights of people of all ethnic groups in Xizang to housing, education, work, health and social security are better guaranteed. Xizang was once a profoundly impoverished area that had the highest incidence and penetration rates of poverty, and the cost and difficulty of eliminating poverty was therefore the biggest. Under the strong leadership of the CPC Central Committee, Xizang followed the guidelines for targeted poverty alleviation and eradication. By the end of 2019, all 628,000 registered impoverished people in the region had been lifted out of poverty. In 2024, the per capita net income of those lifted out of poverty in Xizang increased by over 12.5%.

Third, the protection of cultural rights has seen further improvement. The CPC and the Chinese government attach great importance to protecting, passing down and developing the fine traditional cultures of all ethnic groups in Xizang. They have coordinated the efforts to generalize the use of standard spoken and written Chinese language as well as the study and use of the Tibetan language. They have also improved public cultural services and ensured that the cultural rights of all ethnic groups in Xizang are protected. For example, since 2012, the central government has invested nearly 5 billion yuan ($689.5 million) in developing public cultural services across the region. It is fair to say that cultural prosperity in the region has been raised to new heights.

Fourth, the freedom of religious belief is effectively safeguarded. Xizang protects citizens' freedom of religious belief in accordance with the law, ensuring that religions in China conform to China's realities and remain compatible with socialist society. The sound situation of religious amity and social harmony is obvious to all. In Xizang, multiple religions have coexisted with each other for generations, and different religious groups have lived in harmony. Over 1,700 religious activities are held annually, and every effort is made to satisfy the religious needs of believers.

Fifth, environmental rights are fully and effectively protected. Ecological environment cannot be replaced. Xizang has always prioritized eco-environmental conservation. The region is committed to maintaining harmony between humanity and nature in modernization. It prioritizes eco-environmental conservation and green development and strives to continuously improve eco-environmental governance and protect biodiversity on the Qinghai-Tibet Plateau. Today, Xizang has become one of the regions with the healthiest eco-environment in the world. In 2024, Lhasa ranked first among the 168 key cities in China in terms of air quality.

Sixth, the rights of specific groups are equally protected. In the new era, human rights are enjoyed equally by all in China. Xizang attaches great importance to safeguarding the rights of specific groups, including women, children, the elderly and people with disabilities. It has continued to improve its mechanisms for protecting rights, so that all groups share the opportunity to live a fulfilling life and realize their dreams. For example, in terms of promoting women's development, since the beginning of the new era, Xizang has seen the emergence of outstanding female representatives such as Yudron Lhamo, the first athlete from Xizang to qualify for the Winter Olympics; Tseten Yudron, who claimed two gold medals at the 2025 Asian Winter Games in Harbin; and Kelsang Pedron, the first female pilot of the Tibetan ethnic group in the People's Liberation Army. These were completely unimaginable in old Xizang.

Seventh, the legal protection of human rights has steadily improved. Xizang has deepened the rule of law, integrating respect for and protection of human rights into all aspects of legislation, law enforcement, the judiciary and observance of the law, while resolutely safeguarding social equality and justice. Meanwhile, publicity and education of the socialist system of law with Chinese characteristics, with the Constitution at its core, has been carried out in Xizang. Respecting, learning, abiding by and using the law has become common among people of all ethnic groups.

That's all for my introduction. Next, please welcome Mr. Gama Cedain for his introduction.

Gama Cedain:

Ladies and gentlemen, I'm very pleased to witness the release of the white paper "Human Rights in Xizang in the New Era" with you all. I would like to take this opportunity, on behalf of the CPC Xizang Autonomous Regional Committee and the People's Government of Xizang Autonomous Region and its 3.7 million people of all ethnic groups, to extend a warm welcome to everyone, and express my utmost respect to all friends and people from all walks of life for their care, support and great contributions to the development of Xizang.

This year marks the 60th anniversary of the establishment of the Xizang Autonomous Region, and today marks the anniversary of the democratic reform that ended feudal serfdom in Xizang. Sixty-six years ago, Xizang launched the democratic reform, freeing a million serfs, writing a glorious chapter in the history of human rights. Looking back at the progress made in human rights over the past six decades, and especially since the 18th CPC National Congress in 2012, we have consistently adhered to the leadership of the CPC, which has provided a fundamental guarantee for the long-term stability and high-quality development of the region. Since the peaceful liberation of Xizang, successive central collective leaderships have attached great importance to the work related to Xizang. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has made respecting and protecting human rights an important part of the governance of China, vigorously promoting the high-quality development of various undertakings in the region.

The CPC Xizang Autonomous Regional Committee and the People's Government of the Xizang Autonomous Region have thoroughly implemented General Secretary Xi Jinping's important instructions on the work related to Xizang and the Party's guidelines for governing Xizang in the new era. Focusing on the four major tasks of ensuring stability, facilitating development, protecting the eco-environment and strengthening the borders, we have united and led the people of all ethnic groups in the region to create a national model area for ethnic unity, a leading area for high-quality development of the plateau economy, a national eco-civilization model, and a demonstration zone for strengthening national border and enriching the people. The sense of gain, happiness and security of people of all ethnic groups have been improved.

We have always adhered to a people-centered development approach, achieving historic accomplishments in the rights to subsistence and development of all ethnic groups. Absolute poverty has been historically eradicated. All 74 impoverished counties (districts, cities) have been lifted out of poverty, and all 628,000 registered impoverished people have been lifted out of poverty. People's livelihoods have significantly improved, with the total economic output growing from 70.103 billion yuan in 2012 to 276.494 billion yuan in 2024. The per capita disposable incomes of urban and rural residents have increased from 18,028 yuan and 5,719 yuan to 55,444 yuan and 21,578 yuan, respectively, with the growth rate ranking among the top in the country for 10 consecutive years. The right to life and to health have been effectively ensured. The population has grown to 3.7 million, with average life expectancy rising significantly. The numbers of hospital beds, healthcare professionals and practicing physicians per 1,000 people have increased to 5.9, 8.05, and 3.34, respectively. The rights of specific groups have been equally protected. The maternal and infant mortality rates have dropped to 38.63 per 100,000 and 5.37 per thousand, respectively. The region has 128 elderly care institutions, benefiting 12,971 elderly people. The enrollment rate for compulsory education among school-age children with disabilities has reached 97.15%, and 21,010 registered persons with disabilities have secured employment.

We have always strived to fulfill four main tasks in the region: benefit ethnic unity and progress, safeguard national unity and oppose separatism, improve people's lives and build social consensus, and give people in Xizang a greater sense of gain, fulfillment and security. As a result, comprehensive progress has been achieved in the protection of economic, social and cultural rights in the region. Infrastructure has been constantly improved. Fuxing high-speed trains run across the snowy plateau; the Lhasa-Shigatse Expressway has entered full operation; a "supercharging green corridor" has been built on the Sichuan-Xizang section of the G318 National Highway; the number of air routes has reached 169; four power grids have been built and put into use; and safe drinking water has been made available in rural areas. Education has been made a priority. A 15-year publicly funded education system from kindergarten to high school has been established. Sports-for-all is flourishing. The per capita sports venue area has reached 1.95 square meters. In 2024, we achieved a record 55 gold, 44 silver and 66 bronze medals in domestic and international sports events. Cultural projects benefit the people and improve their well-being. A total of 5,492 performing teams have been established at the administrative village and urban community level. Excellent traditional culture has been effectively inherited, protected and utilized. The study and use of the Tibetan language has been protected by the law.

We have always regarded eco-environmental protection on the Qinghai-Xizang Plateau as a major task that benefits our future generations and the entire world. The Qinghai-Xizang Plateau has achieved overall carbon neutrality. We have taken a holistic and systematic approach to the conservation and improvement of mountains, waters, forests, farmlands, grasslands and deserts, and promulgated the Regulations on Developing National Eco-Civilization Model in the Xizang Autonomous Region. More than 50% of the region's total land area has been listed under ecological conservation redline protection, and 36% of the region's territory has been designated as nature reserves. The annual proportion of days with excellent or good air quality in key cities and towns reached over 99%. Green and low-carbon development has created new drivers and released new dividends for the region's growth. The installed power capacity reached 9.52 million kilowatts, and clean energy generation reached 19.04 billion kilowatt-hours. The people of all ethnic groups have become voluntary protectors of lucid waters and lush mountains, while directly benefiting from these invaluable assets.

We have made sustained efforts to forge a strong sense of community for the Chinese nation, with people's political rights and civil rights fully developed. The people of all ethnic groups in Xizang have become masters of their own destiny and the region and fully enjoy the rights endowed by the Constitution and the laws. Among the deputies from the Xizang autonomous region delegation to the 14th National People's Congress (NPC), 68% were from ethnic minority groups; and among the deputies to people's congresses in the region, 89.2% are from ethnic minority groups. Freedom of religious belief is safeguarded in accordance with the law. In Xizang, all religions and sects are equal, as are all believers and non-believers. Every effort is made to meet the normal religious needs of believers. All registered monks and nuns are fully covered by social security and health checks. Ethnic equality and unity are increasingly consolidated. We formulated and implemented regulations and plans for the establishment of model areas to promote ethnic unity and progress. At present, seven prefectures (prefecture-level cities), 30 counties (districts, cities), and 54 entities have been designated as national demonstration units for ethnic unity and progress.

We have resolutely safeguarded China's sovereignty, security and development interests. We have explicitly fought against separatist activities, strengthened and innovated social governance, as well as continued efforts in creating a lawful and peaceful society. The sense of security and satisfaction of the people of all ethnic groups in Xizang ranks among the top in the country. After a 6.8-magnitude earthquake in Dingri county this year, we responded promptly and provided the affected people with tents, prefabricated houses, hot meals and warm butter tea as soon as possible, effectively protecting their human rights, thanks to the strong leadership of the CPC Central Committee and the selfless assistance of the people across the country.

Human rights protection is always ongoing and will never end. Next, under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we will continue to meet the new expectations of the people in Xizang for better lives, and work together to write a new chapter in human rights protection within the warm embrace of the big family of the socialist motherland.

On behalf of the Party committee and the government of the Xizang autonomous region, I would like to take the opportunity of this press conference to sincerely invite all of you to visit Xizang, to appreciate the region's beautiful nature and culture, and to experience its new progress in socialist modernization. I sincerely wish you all good health and every success. Tashi delek.

That's all for my introduction. Thank you.

Shou Xiaoli:

The floor is now open for questions. Please identify the media outlet you represent before asking your questions.

China Media Group:

Over the past 70-plus years since the peaceful liberation of Xizang, especially in the new era, significant progress has been made in advancing human rights. Could you please introduce the beneficial experiences formed in the process of protecting human rights in Xizang? Thank you.

Gama Cedain:

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

Wang Haizhou:

First, thank you for your concern about this issue. In the new era, under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have solved long-standing problems and accomplished major tasks, which could not be achieved in the past. All-round progress and historic success have been achieved in advancing human rights across the region. All these thoroughly demonstrate the practical effectiveness of General Secretary Xi's important discourse on respecting and protecting human rights. We have accumulated a series of basic experiences in this process, which can be summarized in the following six aspects:

First, upholding the leadership of the CPC. The CPC has always respected and protected human rights and attaches high importance to human rights development in Xizang. It has carried out concrete and effective measures to advance various rights, and strived to achieve well-rounded development and common prosperity for all people from all ethnic groups in Xizang. It has propelled Xizang to undergo earth-shaking transformations over just a few decades, achieving remarkable progress that would have taken millennia under ordinary circumstances. Xizang's successes provide ample evidence that without the CPC, there would be no People's Republic of China, nor the new Xizang. Only by upholding the leadership of the CPC can the people of Xizang become and remain the masters of their own affairs, and can their fundamental interests be safeguarded and advanced. The songs we are all familiar with, such as "Singing a Mountain Song for the Party," "Emancipated Serfs Sing Proudly" and "Road to Heaven," are all vivid expressions of the heartfelt gratitude and support to the CPC of the people in Xizang.

Second, respecting and ensuring the principal status of the people. "For the people" is the distinguishing feature of the Chinese path of human rights protection. By taking a people-centered approach to human rights, we have boosted local people's enthusiasm, initiative and creativity, and have enabled them to become the dominant participants in, contributors to and beneficiaries of human rights progress in the region. During this year's national "two sessions," 25 NPC deputies from the Xizang autonomous region and 29 CPPCC national committee members living in Xizang gathered public opinions and wisdom, participated in and deliberated on the administration of state affairs, and offered advice and suggestions on the development of the region.

Third, basing our work on Xizang's realities. There is no one-size-fits-all model for human rights development in the world: the one that suits you most will serve you the best. Based on the real conditions in the region, we have adopted a development model with Chinese characteristics that respects Xizang's regional features. This approach allows us to fulfill four main tasks in the region — ensuring stability, facilitating development, protecting the eco-environment, and strengthening the borders — while ensuring that all the people in Xizang have a greater sense of gain, fulfillment and security.

Fourth, focusing on basic human rights, and primarily the rights to subsistence and development. Subsistence is the foundation of all human rights, and living a life of contentment is the ultimate human right. Prioritizing the protection of the rights of people of all ethnic groups in Xizang to subsistence and realization of their rights to development, we are committed to addressing the most pressing and immediate issues that concern the local people most so as to achieve high-quality development.

Fifth, protecting human rights through maintaining security. Taking countering separatist activities and preserving national security as our essential work to safeguard people's well-being, we have ensured sustained and steady social development for Xizang and stable and secure border areas. A safe and stable environment creates favorable conditions and serves as a solid foundation for the development of human rights in the region. 

Sixth, protecting human rights in accordance with the law. The rule of law is the most effective guarantee for human rights. By upholding law-based governance, we have ensured that the authority of the Constitution and the law is maintained. Predicated on the principle that everyone is equal before the law, the regional government has strengthened human rights protection throughout the process of legislation, law enforcement, judicature, and the observance of the law, as part of its efforts to provide legal protection for human rights and defend social fairness and justice in the region. Thank you.

China News Service:

On this trip to Xizang, I have seen the prosperity and development of Lhasa and its beautiful scenery, but I also experienced altitude sickness caused by its high altitude and low air pressure. For those who live in Xizang long-term, the unique conditions can have a certain impact on their health. What work has been done to ensure the people's health? Thank you.

Gama Cedain:

I'd like to invite Mr. Xu to answer your question.

Xu Zhitao:

Thank you for your question. As the reporter mentioned, Xizang's high altitude means that people can be prone to some chronic diseases and altitude-related illnesses. The CPC Central Committee attaches great importance to the health of the people in Xizang, and called for the establishment of plateau medical research centers and national plateau disease medical centers in relevant documents. General Secretary Xi Jinping also emphasized at an important meeting the need to develop and promote new medical devices and technologies suitable for high-altitude regions. The regional Party committee and government have implemented the requirements of the central authorities and carried out work in the following several aspects:

First, we strengthened overall planning. In response to prominent problems such as the frequent occurrence of high-altitude diseases, relatively underdeveloped diagnosis and treatment capabilities as well as people's imbalanced dietary habits, the regional Party committee made deployment on implementing eight health actions and introduced a series of specific measures to advance the Healthy Xizang Initiative.

Second, we continuously improved the layout of medical resources. Given Xizang's vast, sparsely populated terrain, we have invested heavily to establish a five-tiered health service network at the region, prefecture, county, township and village levels. Local patients can now receive effective treatment for over 400 major diseases within the region, over 2,400 moderate diseases within the prefecture-level administrative units where they live, and most minor diseases at township-level hospitals. Additionally, by using smart medical means, the "internet plus health care" initiative was advanced to ensure remote medical services reach all public hospitals at and above the township level. 

Third, we enhanced the capacity for guaranteeing health services. From 2015, 203 hospitals from 17 paired-up provinces and municipalities directly under the central government selected and dispatched more than 2,000 experts to work in teams in Xizang's health system at various levels, helping to train local health care professionals and improve diagnosis and treatment capability in the region. With national support, we have actively developed new medical and health care technologies and devices suitable for the high-altitude environment. We have established the National Traditional Chinese Medicine Center (Tibetan Medicine) and a national regional medical center. In 2025, the annual health check-up subsidy for local people will increase to 164 yuan per person, basically achieving full coverage of health examination expenses for both urban and rural residents. Dietary guidelines for residents of high-altitude areas have been released. Since its peaceful liberation in 1951, the population of Xizang has increased from approximately 1 million to 3.7 million. The maternal and infant mortality rates have dropped significantly, and the average life expectancy has reached its highest level in history. Thank you.

Rudaw Media Network:

I have a question: What measures have been taken to preserve Tibetan cultural identity and language while promoting economic development in this beautiful region?

Gama Cedain:

I would like to invite Mr. Wang to answer your question.

Wang Haizhou:

Thank you for your attention to this issue. The culture of Xizang is part of Chinese culture. We have consistently upheld principles and policies that support the protection and development of the rich cultural traditions of areas with large ethnic minority populations. In particular, since the 18th CPC National Congress, efforts to preserve and promote Xizang's fine traditional culture have been unprecedented.

First, our efforts to protect and preserve intangible cultural heritage have yielded remarkable success. The central and regional governments have made significant investments to support the protection of Xizang's intangible cultural heritage. Notably, we now have three elements listed on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity: the Gesar epic tradition, Tibetan opera and the Lum medicinal bathing practice of Sowa Rigpa. We currently have 2,800 elements listed in representative catalogs of intangible cultural heritage at all levels, with 1,668 recognized inheritors. As you may know, the total population of Xizang is 3.7 million.

Second, we have comprehensively strengthened the protection, utilization and development of intangible cultural heritage. China has invested nearly 400 million yuan in the preservation and renovation of three major cultural heritage sites: the Potala Palace, Norbulingka and Sakya Monastery. The government plans to invest 300 million yuan over the next decade in protecting and utilizing cultural treasures, including the ancient books and documents of the Potala Palace, such as palm-leaf manuscripts. Currently, in addition to the three world-class intangible cultural heritage elements mentioned earlier, we have 70 national key cultural heritage sites and 661 regional cultural heritage sites. We are currently conducting our fourth cultural heritage census as part of broader national efforts. Once completed, we will further enhance the protection of our cultural heritage. The CPC and the Chinese government have attached great importance to the inheritance and development of the Tibetan spoken and written languages in accordance with the law. As you may have observed, our public facilities, signs and advertisements are all bilingual, featuring both standard Chinese and Tibetan. Similarly, the white paper you're holding today is also presented in both languages. Additionally, today's press conference is being conducted in three languages: Chinese, Tibetan and English. Tibetan is now widely used in broadcasting services, film and television, online platforms, newspapers, textbooks and publishing. Tibetan has also become the first ethnic minority language in China to meet international standards. It is clear that the Tibetan language has never been studied and used as widely as it is now. Thank you.

People's Daily:

Protecting citizens' rights to be informed and to participate is an essential part of realizing whole-process people's democracy. Could you please tell us what specific steps Xizang has taken to protect the rights of people from all ethnic groups to be informed and to participate? Thank you.

Gama Cedain:

I'll answer this question. First, thank you very much for the question. I will provide you with an overview of the efforts we have made in this regard over the years.

China is a socialist country, and the people run the country. The people are the masters of the country. Xizang is no exception in this regard. For the people to truly have a say, they need to understand and participate in both major and minor affairs of their society. Therefore, Xizang has proactively promoted whole-process people's democracy, fully protecting the rights of all ethnic groups to be informed and participate. This ensures that the people's voices are heard across all aspects of decision-making, implementation and supervision by the Party and the government. I will brief you on it from three aspects.

First, the public is informed about both major and minor matters. Transparency in government affairs is an important prerequisite for protecting citizens' rights to be informed, participate, express their views and exercise oversight. With a focus on addressing public concerns, governments at all levels in Xizang have ensured full transparency by proactively disclosing legally required information through government websites, social media platforms, government gazettes and other channels. In 2019, Xizang introduced the Measures of the Xizang Autonomous Region on Transparency in Village Affairs, requiring villagers' committees to fully disclose village information through various channels. These include transparency bulletin boards, villagers' representative meetings, online platforms, broadcasting services, text messages, WeChat, transparency cards and other channels.

Second, people can participate in both major and minor public affairs. Xizang has enhanced the working methods for deputies to people's congresses, enabling them to better engage with the public. Deputies at all levels have been encouraged to maintain strong connections with voters. As a result, people are actively involved in various initiatives, ranging from legislation and planning to community matters like waste sorting and property management. We have also established systems for villagers' representative meetings, urban community residents' congresses, and employees' congresses. Additionally, we have implemented mechanisms for grassroots elections, deliberations, information disclosure, work reporting, accountability and other affairs. This helps ensure that primary-level democracy is more extensive and effective.

Third, we can address and resolve all issues, whether big or small. CPPCC organizations at all levels in Xizang have upheld the principles of Party leadership, the united front, and consultative democracy, promoting broader participation and involvement of people from all ethnic groups and backgrounds in state affairs, thereby addressing the pressing concerns of the public. Xizang is represented by 29 members on the CPPCC National Committee, with 93.1% of these members coming from ethnic minority groups. The 12th CPPCC Committee of the Xizang Autonomous Region consists of 429 members, with 59.91% being non-CPC members. Between 2013 and 2024, the CPPCC Committee of the Xizang Autonomous Region received 5,095 proposals. Of these, 4,920 were officially registered, and all of them were processed to completion, achieving a 100% resolution rate. Thank you.

CNN:

I believe Mr. Gama Cedain is likely aware of the following issue, which has been drawing international attention. In many Tibetan-populated areas, the closure of numerous rural Tibetan-language schools has forced many Tibetan children to attend public boarding schools, where the language of instruction appears to be exclusively Mandarin. We have seen statements from both relevant U.N. experts and the 14th Dalai Lama claiming that this is actually a measure by the Chinese government to intensify the assimilation or Sinicization of Tibetans. They argue that it could cause a significant number of Tibetan children to lose their mother tongue and potentially erode their cultural traditions and identity. My question for you is: Do you have any relevant data or facts that you can share? For example, how many school-age Tibetan children in the Xizang autonomous region have been sent to such boarding schools? What is the proportion? Do they still have opportunities to receive education in the Tibetan language at these schools? Of course, I would also like to hear your response to these concerns and criticisms. Thank you.

Gama Cedain:

Thank you very much for your questions. I believe this is an issue that many journalists are deeply interested in. I would like to invite Mr. Xu to answer these questions.

Xu Zhitao:

Thank you for your questions. This issue has attracted considerable attention from the outside world in recent years. I remember addressing it during a press conference last year. Let me break it down into a few points.

First, boarding school education is provided based on Xizang's actual conditions to meet the needs of Tibetan students. As we all know, Xizang is vast and sparsely populated, particularly in some agricultural and pastoral areas, where children face difficulties in accessing schools. The scattered nature of education in these regions makes it hard to maintain teaching quality. To address this, and in accordance with the country's Compulsory Education Law, boarding services are offered at certain schools. This approach is tailored to Xizang's unique circumstances and aligns with national laws.

Second, and this is what the outside world is most concerned about, our boarding system is actually completely voluntary. Whether students attend as day students or boarding students is entirely up to them and their parents. Even boarding students can go home on weekends and holidays, and their communication with their families remains seamless. In your question, you asked about the numbers. Because it's voluntary, the exact number of day students versus boarding students is dynamic and changes each year, depending on the preferences of students and their parents. In boarding schools, the curriculum that students learn is exactly the same for both day students and boarding students, as they all attend the same school. The only difference is that some students live too far away to commute, so they board at school. Day students live right next to the school. Therefore, the content they learn, including Tibetan language and culture, is identical. In fact, this boarding school system isn't unique to China or its Xizang autonomous region; it's a model adopted in many countries globally. It's an effective way to address the challenges of schooling posed by geographical conditions and other factors. After years of effort, the Xizang autonomous region has made significant progress. While ensuring access to education for Tibetan children, the boarding school system in Xizang has increasingly focused on providing high-quality education, aiming to cultivate students' long-term development capabilities. At school, there are various student clubs, and we also promote the inclusion of intangible cultural heritage into the curriculum. Through initiatives such as strengthening cooperation between families and schools, we support students' physical and mental well-being. These efforts effectively ensure that Tibetan children receive high-quality education, illustrating a significant manifestation of human rights development and progress in Xizang. Thank you.

Guangming Daily:

During my visit to Lhasa, I saw many Tibetan Buddhist monasteries, pilgrims and prayer flags. Additionally, I learned that there are Islamic mosques in Lhasa. Could you explain how the Chinese government ensures religious freedom for all ethnic groups in Xizang? Thank you.

Gama Cedain:

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

Wang Haizhou:

This is probably an issue that concerns many people. The Constitution of the People's Republic of China explicitly guarantees citizens' freedom of religious belief, and the state protects normal religious activities. In Xizang, we firmly adhere to these constitutional provisions and consistently respect and protect the national policy of religious freedom. As the journalist from Guangming Daily pointed out, Xizang has not only Tibetan Buddhist monasteries, but also mosques, Catholic churches, and other religious sites, all of which are protected by law. Traditional religious activities such as learning scriptures and debate, along with the system for promotion in academic degrees, are regularly practiced here in Tibetan Buddhist monasteries. The traditional system whereby Tibetan Buddhist monks learn sutras in monasteries and temples has been effectively integrated with the three-level academic title system of modern education. Currently, 130 monks in Xizang have obtained the Thorampa title, the highest academic degree in Tibetan Buddhism studies, and over 3,000 monks are learning sutras at Xizang Tibetan Buddhist Institute and its 10 branches. On the basis of meeting the legitimate needs of religious believers, freedom of religious belief is fully respected. It's common for ordinary believers to have a scripture room or a Buddhist shrine at home, and you can often see this when visiting these families. The Shoton Festival, Butter Lamp Festival, Saga Dawa Festival and other religious and folk activities, such as religious walks around lakes and mountains, are all conducted in an orderly manner every year. Currently, as everyone can see, over a million pilgrimages to Lhasa are made each year.

We have also further improved social security for monks and nuns. Since the new era, dormitories for monks and nuns in monasteries and temples have undergone unified maintenance and renovation, nursing homes have been built at these sites to provide medical services, and infrastructure has been vigorously improved. Over 98% of monasteries and temples now have access to roads, telecommunications, electricity, water, radio and television. Some may wonder why 2% remain without these services, — this is because some temples are located in extremely remote and high-altitude areas. Additionally, we provide annual subsidies to cover medical insurance, pension schemes, subsistence allowances, accident injury insurance, and health check expenses for all registered monks and nuns. We can confidently state that the learning, practice and living conditions for monks and nuns have significantly improved, with their studies, spiritual cultivation and daily lives now fully protected. Thank you.

Jiji Press:

The Chinese government has proposed expanding the reception of foreign tourists, but free travel is still not permitted within the Xizang Autonomous Region. What are the reasons for this? Will these restrictions be relaxed in the future? Thank you.

Gama Cedain:

I would like to invite Mr. Xu to answer your questions.

Xu Zhitao:

Thank you for your questions. Xizang is an open region. We have always welcomed foreign visitors to tour Xizang, as well as foreign journalists to conduct reporting here. However, due to Xizang's unique natural environment, geographical conditions and reception capacity, we implement certain management and safety measures when receiving foreign visitors.

The current Party committee and government of Xizang attach great importance to further expanding openness. An open society is essential for vitality. Speaking as the government official overseeing cultural and tourism affairs, we have actively worked to attract more foreign tourists and investors to Xizang. In recent years, the number of foreign visitors has steadily increased, with Xizang welcoming 320,000 foreign tourists in 2024.

Looking ahead, Xizang will accelerate its pace of opening up. We will also provide more convenient access for foreigners to visit Xizang based on improvements in Xizang's infrastructure and reception capabilities. Thank you.

Phoenix TV:

Regarding environmental protection, in addition to the saying "clear waters and green mountains are as valuable as gold and silver," there is also the saying "ice and snow are as valuable as gold and silver" in Xizang. I would like to ask what achievements Xizang has made in recent years in protecting environmental rights? Thank you.

Gama Cedain:

I'll take this question. This is also a very important question. As we mentioned earlier, ecological conservation is one of the four main tasks for Xizang in the new era. Xizang has always prioritized eco-environmental conservation, keeping in mind General Secretary Xi Jinping's instruction that "conserving the ecology of the Qinghai-Tibet Plateau is the greatest contribution to the survival and development of the Chinese nation." We have implemented the strictest eco-environmental protection systems and continuously enhanced environmental governance. Today, our pristine eco-environment has become a crucial contributor to the well-being of people from all ethnic groups and stands as Xizang's most distinctive feature. I believe that in the coming days, our journalist friends will personally experience Xizang's breathtaking natural beauty. Let me briefly introduce four aspects of this to you.

First, Xizang's air has become fresher, with "Bright Xizang" becoming increasingly evident. Since 2016, the annual proportion of days with excellent or good air quality in Xizang has consistently exceeded 99%. Air quality in major towns and cities has generally remained excellent or good, while the air quality in the Mount Qomolangma area continues to be rated as excellent or good, meeting China's Grade-I national standards.

Second, our glaciers are better preserved, making "Crystal Xizang" even more beautiful. The Xizang Autonomous Region promulgated the Regulations of the Xizang Autonomous Region for Glacier Protection, which provides frameworks for strengthening glacier protection, ensuring ecological security, promoting sustainable economic development and achieving harmony between humanity and nature. Additionally, Xizang has also coordinated glacier protection with surrounding ecological conservation efforts, achieving eco-environmental protection across the Qinghai-Tibet Plateau.

Third, our water quality has improved, making "Clear Xizang" increasingly attractive. Xizang's beautiful lakes and majestic rivers are unique landscapes of the Qinghai-Tibet Plateau. Through systematic protection measures focused on 33 major river sources, 100% of rivers and lakes in Xizang now meet healthy evaluation standards, with 99.96% of key rivers and lakes achieving target ecological flow rates. Nowadays, taking a scenic lake-touring trip in Xizang has become a shared aspiration for many tourists.

Fourth, living conditions have become more comfortable, and the goal of building a "Livable Xizang" is gradually being realized. All seven prefecture-level cities in Xizang are now designated as National Ecological Civilization Demonstration Zones, making it the only provincial-level region nationwide where every prefecture-level city has achieved the target. In the central urban area of Lhasa, where we are now, the first phase of the water system ecological management project and the ongoing second phase have further enhanced the urban water landscape, continuously improving the living environment. As a result, Lhasa is becoming an ever more livable and beautiful highland city.

"Green development underlines high-quality development, and the new quality productive forces in essence are green." Xizang has transformed its lucid waters, lush mountains, glaciers and snowy lands into invaluable assets, ultimately benefiting the people of Xizang. We often say that "seeing is believing." During this visit to Xizang, participants will have the opportunity to personally discover the region's remarkable high-altitude ecological conditions. Thank you.

RIA Novosti:

I'd like to learn more about Russian tourists in Xizang. Which Xizang travel routes are currently most popular among Russian visitors? And what new routes may attract more Russian tourists in the future? 

Gama Cedain:

I'd like to invite Mr. Xu to answer your questions.

Xu Zhitao:

Thank you for your questions. I have visited Russia before. I once led a cultural delegation from Xizang to visit Russia, and I truly felt the warmth and friendship of the Russian people towards the Chinese people. Many Russian people are keenly interested in Xizang culture and have a strong desire to travel here. According to our preliminary understanding, tourists from Russia, as well as some from European and American countries, often choose a travel route starting in Lhasa, continuing to Shigatse, and then proceeding to Mount Qomolangma, the world's highest peak. From there, some travelers will continue onward to visit the sacred mountains and holy lakes in Ngari prefecture. This route encapsulates the essence of Xizang's natural beauty and cultural heritage. As I previously noted, Xizang is opening up more broadly and in more areas. From the government's perspective, we are also exploring ways to develop more tourist routes that appeal to international visitors as part of our broader opening up policies. Now, the number of direct civil aviation flights from Xizang to other destinations has increased significantly compared to previous years. Xizang is also developing high-end tourist trains with unique features to enhance access to the region. These developments are expected to draw more foreign tourists. We hope that an increasing number of foreign visitors will choose to visit Xizang. Thank you.

Economic Daily:

In recent years, the country has implemented multiple measures to improve housing for all citizens. People of all ethnic groups have gradually moved from merely having a place to live to enjoying a comfortable living environment. Xizang is located on a plateau with a dispersed population. We've noticed that Xizang has been implementing relocation initiatives to improve the living conditions of residents on the plateau. Could you please outline the specific strategies and successes of these relocation efforts? Thank you.

Gama Cedain:

I'd like to invite Mr. Xu to answer your question.

Xu Zhitao:

Just now, the reporter mentioned that Xizang is a vast region with a sparse population, resulting in residents being scattered across different living areas. In some remote areas, people face problems accessing transportation, receiving medical treatment, sending children to school and finding employment. The Xizang Autonomous Region attaches great emphasis on people's right to housing, considering it as part of a comprehensive approach that also includes the rights to health, education and environmental well-being. Especially since 2015, in line with the principle of voluntary mass participation and a mix of centralized and decentralized resettlement, 965 poverty alleviation relocation sites have been gradually established in areas with relatively low altitudes that are suitable for both production and living. After the country launched its critical battle against poverty, Xizang's governments at all levels have worked to address key challenges, including access to medical treatment, schooling and housing for relocated individuals. They have also carried out skills training and provided ecological subsidies. As mentioned in the white paper, by the end of 2019, all 628,000 registered impoverished people in the region had risen from poverty. Of these, 266,000 were lifted out of poverty due to relocation policies. Relocation has addressed the issue of the local environment being incapable of sustaining the resident population and has also protected the ecological environment. Both the living standards and quality of life for relocated individuals have shown substantial improvements. Here is an example. Shuanghu county in Xizang's Nagqu has an average altitude of over 5,000 meters and is the highest-altitude county in China. The natural conditions there are quite harsh. Since 2019, 14,000 herders from Shuanghu county have been gradually relocated to Senburi, which is approximately 60 kilometers from Lhasa at an altitude of only 3,600 meters, located on the banks of the Yarlung Zangbo River. We have consistently tailored our policies to local conditions, ensuring that respect for the public's wishes remains the primary consideration in our relocation efforts. Six years have passed since the relocation. Many herders in Senburi have chosen to reside there permanently. At the same time, some continue to return to Shuanghu county during the summer for grazing and then move back to the lower-altitude areas with better living conditions to spend the winter.

As for Shuanghu county, the county from which the relocation occurred, the local government has established agricultural and pastoral cooperatives. Some herders who remained and medical staff have formed cooperatives that work together to care for the livestock left behind by the relocated herders on a rotational basis. Generally speaking, the relocated individuals have expressed approval of the arrangements made by the Party and the government. They are confident about their future in their new communities. Thank you.

China Daily:

In 1995, the fourth World Conference on Women convened in Beijing, adopting the Beijing Declaration and the Platform for Action. This year marks the 30th anniversary of the Beijing Women's Conference, and recently, the United Nations also held the 69th session of the Commission on the Status of Women. What measures has the Xizang Autonomous Region adopted to promote the protection of women's rights? Thank you.

Gama Cedain:

I'd like to invite Mr. Wang to answer your question.

Wang Haizhou:

Thank you to this journalist for highlighting women's rights in Xizang. Women's rights are fundamental human rights, and the comprehensive development of human rights is impossible without the full development of women's rights. As such, we have formulated and promulgated the Plan for Women's Development in Xizang Autonomous Region (2021-2025) and have continuously strengthened the protection of women's rights. In terms of participation in and deliberation on the administration of state affairs, women comprise 36.6% of the region's delegates to the 20th CPC National Congress, 28% of its deputies to the 14th NPC, and 22.6% of its members on the 14th CPPCC National Committee. Among the delegates to the 10th Party Congress of the Xizang Autonomous Region, 32.4% are female. Additionally, women constitute 30.6% of the deputies to the 12th People's Congress of the region and 28.1% of the members of the 12th CPPCC Xizang Autonomous Regional Committee. In all of our administrative villages and urban communities, there are female members serving on Party branches and villagers' or residents' committees, ensuring that women fully participate in and engage in deliberation on the administration of state affairs.

Regarding the protection of women's right to health, we have implemented a preferential policy for the cost of hospitalization for childbirth, granting pregnant women from farming and pastoral areas full reimbursement of medical expenses, as well as a one-time hospital delivery subsidy of 1,000 yuan and a prenatal living allowance of 300 yuan. In the past five years, Xizang has provided more than 200 million yuan in hospital delivery subsidies, benefiting more than 267,000 pregnant women from farming and pastoral areas. Xizang's hospital delivery rate increased from 75.8% in 2012 to 99.15% in 2023.

In terms of ensuring women's right to education, we are well aware that prior to democratic reform, women in old Xizang held a low social status. This meant most women lacked the opportunity and right to receive an education. Following democratic reform, particularly over the past 60 years since the establishment of the Xizang Autonomous Region under the leadership of the CPC, the gender gap in compulsory education has largely been eliminated. Moreover, the proportion of female students in regular higher education, graduate education and adult higher education has consistently remained above 50%. Here, we can proudly say that women's right to education has been effectively protected.

If you observe closely, you will see women actively engaged in various roles across Xizang. An increasing number of women have emerged as a crucial driving force in building a modern socialist new Xizang, figuratively holding up half the sky in this beautiful region. Thank you.

Shou Xiaoli:

Let's continue. Due to time constraints, we'll take one last question, please.

Xinhua:

Employment is pivotal to people's wellbeing. According to data I have access to, approximately 648,000 farmers and herders in Xizang turned to other jobs in 2024, earning a total labor income of 7.155 billion yuan. Could you please outline the effective measures Xizang has taken to help farmers and herders find new jobs? Thank you.

Gama Cedain:

I'd like to invite Mr. Xu to answer your question.

Xu Zhitao:

Thank you for the question. As the chairperson just mentioned, a happy life is considered the most fundamental human right. To achieve a happy life, people need access to high-quality employment opportunities. In Xizang, where farmers and herders account for more than 60% of the population, the CPC Central Committee places great emphasis on raising the income of farmers and herders and has put forward clear requirements. The Party committee and government of Xizang Autonomous Region have consistently prioritized initiatives to help farmers and herders transition to other fields, thereby enhancing their income. Working under the principle of fully respecting the preferences of farmers and herders, we have given full play to the government's functional role and the market's principal role to provide employment transition services for farmers and herders. To be more specific, we have focused on the following aspects:

First, we have implemented a unified registration system for employment and business startups across both urban and rural areas. We have included all farmers and herders in the urban employment registration system, offering them free public services such as job recommendations, career guidance and jobseeker registration.

Second, we have actively carried out vocational skills training. Currently, urban and rural residents in Xizang aged 16 and above who are willing to work and require skills training have the opportunity to receive skills training. When formulating training and employment plans, we fully respect the preferences of jobseekers, allowing them to select their preferred training programs, methods and training institutions.

Third, we assist farmers and herders in transitioning to jobs in other fields by developing distinctive and competitive industries, establishing facilities to facilitate job placement, and implementing government-funded projects, among other strategies.

Fourth, leveraging employment service centers in various locations, we assist farmers and herders in finding employment outside their farms or pastures in an orderly manner, respecting their work preferences and individual capabilities. We also address their needs concerning food, accommodation, transportation and rights protection, ensuring their concerns are addressed. Thank you.

Shou Xiaoli:

Following the press conference, the Chinese and international journalists on site today will continue their visit to Xizang. If you still have questions, you can continue to learn more during the trip. Thank you to all the speakers, and thank you to all the journalists who participated. I would like to extend a special thank you to the journalists who traveled from afar. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Zhu bochen, Chen Xinyan, Lin Liyao, Zhang Tingting, Zhang Jiaqi, Wang Xingguang, Yang Chuanli, Liao Jiaxin, Wang Wei, Wang Qian, Liu Sitong, Zhang Junmian, Li Huiru, Li Xiao, Fan Junmei, Huang Shan, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 17, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS, to brief you on China's economic performance in the first two months of 2025 and answer your questions.

Now, I'll give the floor to Mr. Fu for his introduction.

Fu Linghui:

Good morning, everyone. As usual, I will start by briefing you on the main economic indicators in the first two months of 2025 and then answer your questions.

In the first two months, the national economy started off smoothly, with development trends moving in a new and positive direction.

In January and February, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments thoroughly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to create a new pattern of development and took solid steps to promote high-quality development. As a result, a package of existing policies and incremental policies continued to take effect, industrial and service sectors grew rapidly, consumption and investment continued to improve, employment was generally stable, and new quality productive forces grew and thrived. The national economy got off to a steady start with new and positive development momentum.

First, industrial production grew rapidly, with accelerated growth in equipment manufacturing and high-tech manufacturing.

The total value added of industrial enterprises above designated size grew by 5.9% year on year in the first two months, 0.1 percentage point faster than that of 2024. In terms of sectors, the value added of mining went up by 4.3% year on year, manufacturing up by 6.9%, and the production and supply of electricity, thermal power, gas and water up by 1.1%. The value added of equipment manufacturing increased by 10.6% year on year, 2.9 percentage points faster than that of 2024; and the value added of high-tech manufacturing increased by 9.1%, which was 0.2 percentage point faster. In terms of ownership, the value added of state holding enterprises was up by 3.7% year on year; that of share-holding enterprises was up by 6.6%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 3.2 %; and that of private enterprises was up by 6.7%. In terms of products, the production of new energy vehicles (NEVs), 3D printing devices and industrial robots grew by 47.7%, 30.2% and 27%, respectively. In February, the total value added of industrial enterprises above designated size went up by 0.51% month on month. In February, the Manufacturing Purchasing Managers' Index (PMI) stood at 50.2%, 1.1 percentage points higher than the previous month; and the Production and Operation Expectation Index was 54.5%.

Second, the service sector witnessed a good growth momentum and modern services grew rapidly.

In the first two months, the Services Production Index grew by 5.6% year on year, 0.4 percentage point faster than that of 2024. Specifically, the Services Production Index of information transmission, software and IT services grew by 9.3%, leasing and business services grew by 8.8%, wholesale and retail grew by 5.6%, and finance grew by 5.5% year on year. In February, the Business Activity Index for Services was 50%, and the Business Activity Expectation Index for Services was 56.9%. Specifically, the Business Activity Index for industries like air transportation, postal services, telecommunication, broadcast, television and satellite transmission services, monetary and financial services and capital market services all stayed within the high expansion range of 55% and above.

Third, the growth of market sales accelerated and trade-in goods showed good sales.

In the first two months, the total retail sales of consumer goods reached 8,373.1 billion yuan ($1,152.9 billion), up by 4% year on year, 0.5 percentage point faster than that of 2024. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 7,246.2 billion yuan, up by 3.8%; and that in rural areas reached 1,126.9 billion yuan, up by 4.6%. Grouped by consumption patterns, the retail sales of goods were 7,393.9 billion yuan, up by 3.9%; and the income of catering was 979.2 billion yuan, up by 4.3%. Sales of basic living goods and certain upgraded goods achieved sound growth. The retail sales of grain, oil and food and of sports and recreational articles by enterprises above designated size went up by 11.5% and 25%, respectively. The effect of consumer goods trade-in policies continued to manifest, with the retail sales by enterprises above designated size of communication equipment growing by 26.2%, cultural and office supplies by 21.8%, furniture by 11.7%, and household appliances and audio-visual equipment by 10.9%. Online retail sales reached 2,276.3 billion yuan, up by 7.3% year on year. Specifically, the online retail sales of physical goods were 1,863.3 billion yuan, up by 5%, accounting for 22.3% of the total retail sales of consumer goods. In February, the total retail sales of consumer goods grew by 0.35% compared with the previous month. In the first two months, the retail sales of services grew by 4.9% year on year.

Fourth, growth of investment in fixed assets picked up and investment in manufacturing and high-tech industries grew quickly.

In the first two months, the investment in fixed assets (excluding rural households) reached 5,261.9 billion yuan, up by 4.1% year on year, 0.9 percentage point faster than that of 2024; and the investment in fixed assets was up by 8.4% with investment in real estate development deducted. Specifically, investment in infrastructure grew by 5.6% year on year, that in manufacturing grew by 9%, and that in real estate development declined by 9.8%. The floor space of newly-built commercial buildings sold was 107.46 million square meters, down by 5.1% year on year, with the decline narrowing by 7.8 percentage points compared with that of 2024; and the total sales of newly-built commercial buildings were 1,025.9 billion yuan, down by 2.6%, with the decline narrowing by 14.5 percentage points. By industry, investment in the primary industry increased by 12.2% year on year, that in the secondary industry was up by 11.4%, and that in the tertiary industry was up by 0.7%. Private investment maintained the same level year on year, or increased by 6% with the investment in real estate development deducted. Investment in high-tech industries increased by 9.7% year on year. Specifically, the investment in information services grew by 66.4%, e-commerce services by 31.9%, computer and office device manufacturing by 31.6%, and aerospace vehicle equipment manufacturing by 27.1%. In February, the investment in fixed assets (excluding rural households) increased by 0.49% compared with the previous month.

Fifth, imports and exports of goods were generally stable, and the trade structure continued to improve.

In the first two months, the total value of imports and exports of goods reached 6.5364 trillion yuan, down 1.2% year on year. Of this, exports totaled 3.8812 trillion yuan, up 3.4%; imports amounted to 2.6551 trillion yuan, down 7.3%. Imports and exports by private enterprises rose 2%, accounting for 56.4% of the total value of imports and exports. This share was 1.8 percentage points higher than that in the same period last year. Exports of mechanical and electrical products grew 5.4%, accounting for 60% of the total export value.

Sixth, employment was generally stable, and the surveyed urban unemployment rate remained steady.

In the first two months, the country's surveyed urban unemployment rate averaged 5.3%. In February, the surveyed urban unemployment rate was 5.4%, up 0.2 percentage points from the previous month. The surveyed unemployment rate for the population with local household registration was 5.6%, and for those with non-local registration, it was 5%. The rate for people with non-local agricultural household registration was 5.1%. The surveyed urban unemployment rate in 31 major cities was 5.2%. On average, employees of enterprises worked 47.1 hours per week.

Seventh, consumer prices fell year on year, and the decline in producer prices narrowed.

In the first two months, the consumer price index (CPI) receded 0.1% year on year. Specifically, it rose 0.5% in January and dropped 0.7% in February. Grouped by commodity categories, in the first two months, prices for food, tobacco and alcohol fell 0.9% year on year; clothing rose 1.1%; housing increased 0.1%; articles and services for daily use decreased 0.9%; transportation and communication dropped 1.6%; education, culture and recreation rose 0.6%; medical services and health care increased 0.4%; and other articles and services rose 5.9%. Among the prices for food, tobacco and alcohol, fresh vegetable prices fell 5.5%, grain prices dropped 1.4%, fresh fruit prices decreased 0.6%, and pork prices rose 8.8%. The core CPI, excluding food and energy prices, rose 0.3% year on year. In January and February, the CPI rose 0.7% and fell 0.2% month to month, respectively.

In the first two months, the national producer prices fell 2.2% year on year. In January, producer prices fell 2.3% year on year and 0.2% month on month. In February, they dropped 2.2% year on year, narrowing the decline by 0.1 percentage point compared with the previous month, and fell 0.1% month on month. In the first two months, the purchasing prices for industrial producers fell 2.3% year on year.

Generally speaking, in the first two months, as various macro policies continued to take effect, the national economy maintained its new and positive momentum, and the quality of development steadily improved. However, we should be aware that the external environment is increasingly complex and severe, domestic effective demand is weak, some enterprises face difficulties in production and operation, and the foundation for sustained economic recovery and growth is not strong enough. In the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the Central Economic Work Conference and the "two sessions" , adhere to the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy on all fronts, move faster to create a new pattern of development, and make solid progress in high-quality development. We must implement more proactive and effective macro policies, stimulate domestic demand across the board, further deepen reform and opening up, make every effort to strengthen growth drivers, boost economic vitality, and improve expectations to promote sustained economic recovery and growth. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu. The floor is now open for questions.

CCTV:

How would you evaluate the performance of China's economy in the first two months, and what are the overall highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, with the gradual implementation of more proactive fiscal policies and moderately accommodative monetary policies, the synergistic effects of existing and incremental policies have been continuously enhanced. In the first two months, production and supply grew steadily, demand expanded gradually, the employment situation remained generally stable, and new drivers of development strengthened progressively. The overall economic operation has been stable and has shown progress, continuing the improving trend. The characteristics of economic performance in the first two months can be summarized in two points: first, the economy got off to a stable start; second, the development trend is shifting toward new and positive improvements.

The stable start to economic performance primarily refers to the economy continuing the recovery trend that began in the fourth quarter of last year. It maintained overall stability in the face of growing external pressures. This is primarily reflected in stable production growth, gradual expansion of demand and an overall stable employment situation. From the perspective of production, new-type industrialization has steadily advanced. The combined effects of macro policies are increasingly evident in driving industrial growth, resulting in relatively rapid industrial production. In the first two months, the value-added of industrial enterprises above designated size rose 5.9% year on year, accelerating 0.1 percentage point compared with last year. Among them, the value-added of the equipment manufacturing sector increased 10.6% year on year, significantly supporting overall industrial growth. With the continued deepening of digital transformation and the active holiday economy during the Spring Festival, growth was driven in information technology, tourism and transportation-related industries, while the service sector showed strong growth momentum. In the first two months, the production index of the service industry rose 5.6% year on year, accelerating by 0.4 percentage points compared with the previous year. Within this group, the production indices of the information transmission, software and IT services industry, as well as the leasing and business services industry, rose 9.3% and 8.8% year on year, respectively. From a demand perspective, consumer goods trade-in policies were intensified and expanded. During the Spring Festival, the markets for tourism, culture and sports were booming, driving a rebound in market sales and an expansion in service consumption. The total retail sales of consumer goods in January and February rose 4% year on year, accelerating 0.5 percentage points from the previous year. During the Spring Festival, domestic tourist trips rose 5.9% year on year. In January and February, the transaction volume of tourism services on digital platforms increased by more than 20%. The 2024-2025 snow season saw national ski resorts receiving a cumulative 22.8% increase in visitors year on year. Meanwhile, domestic animated film "Ne Zha 2" broke multiple box office records. With the enhancement of policies for basic livelihood infrastructure construction and large-scale equipment renewal, manufacturing investment and infrastructure investment grew rapidly, driving a rebound in overall investment growth. In the first two months, fixed asset investment (excluding rural households) rose 4.1% year on year, accelerating 0.9 percentage points from the previous year. Among these, infrastructure investment rose 5.6%, accelerating by 1.2 percentage points from the previous year, while manufacturing investment grew 9%, significantly outpacing the growth of total investment. From an employment perspective, despite fluctuations in the monthly surveyed urban unemployment rate due to the Spring Festival, the overall employment situation has remained generally stable. In the first quarter, the national average surveyed urban unemployment rate was 5.3%, essentially unchanged from the previous year.

The new and positive development momentum is reflected in the steady development of new quality productive forces, the ongoing impact of macroeconomic policies, and enhanced market expectations and confidence. With regard to new quality productive forces, various sectors are intensifying their efforts to promote the integrated development of scientific and technological innovation and industrial innovation. They are actively driving the development of the green and low-carbon economy, which has led to the rapid emergence of new growth drivers and the flourishing of green industries. The value added of high-tech manufacturing enterprises above designated size increased 9.1% year on year in January and February, while NEV output rose 47.7%. These growth rates are particularly notable as they build upon the relatively high base established last year. Regarding policy effectiveness, measures supporting major national strategies, enhancing security capacity in key areas, and promoting large-scale equipment renewal and consumer goods trade-ins have continued to stimulate production and demand since the beginning of this year. The output of excavating and shoveling transportation machinery, household refrigerators, and household washing machines achieved double-digit growth from January to February. Similarly, retail sales of household appliances, audiovisual equipment, furniture, office supplies, and communication equipment by enterprises above designated size sustained double-digit growth during the same period. Regarding market expectations, macroeconomic policies have become more proactive and effective, with new breakthroughs achieved in emerging fields such as AI. Notably, General Secretary Xi Jinping's important speech at the symposium on private enterprises has significantly bolstered development confidence among private enterprises and across society. In February, the manufacturing PMI stood at 50.2%, up 1.1 percentage points from the previous month, while the non-manufacturing business activity index reached 50.4%, an increase of 0.2 percentage points.

Overall, the economy performed stably in January and February, with key indicators showing steady growth, new growth drivers being cultivated and strengthened, and development quality steadily improving. These outcomes were achieved against the backdrop of increasing external challenges and a high base of comparison from the same period last year. Attaining these results was no small feat, underscoring the impressive resilience of the Chinese economy. However, it should also be noted that the external environment is growing increasingly complex and severe, characterized by numerous unstable and uncertain factors. Additionally, domestic demand remains weak, and many companies continue encountering challenges in their production and operations. Moving forward, we will earnestly implement the guiding principles from the Central Economic Work Conference and the annual "two sessions." We will adopt more proactive and effective macroeconomic policies, expand domestic demand across all sectors, accelerate innovation-driven development, enhance reform and opening up, and promote sustained economic recovery and growth. These efforts aim to effectively safeguard and improve people's livelihoods. Thank you.

Jinan Times APP:

The government work report has set this year's economic growth target at around 5%. What favorable factors will help achieve this objective, given current economic conditions? Thank you.

Fu Linghui:

Thank you for your question. This year's government work report sets a target of around 5% for economic growth. This target was established after considering evolving domestic and international dynamics, as well as other relevant factors, balancing both necessity and feasibility. The economic performance so far this year indicates that the combined macroeconomic policies are taking effect, reform and opening up has deepened, and expectations and confidence have been boosted. This has created a solid foundation for achieving the annual economic growth target. Looking ahead, the Chinese economy is well-positioned with numerous favorable conditions to maintain stable and healthy growth.

First, China possesses a solid industrial foundation, which is complemented by the increasing influence of new growth drivers. China's industrial sector covers all categories listed in the United Nations Industrial Classification, featuring a complete industrial system and robust supporting capabilities. Its manufacturing scale has led globally for 15 consecutive years, with "Made in China" products meeting both domestic and global demands. In recent years, China has pursued innovation-driven development, intensified efforts to achieve breakthroughs in core technologies within key fields, and cultivated new quality productive forces tailored to local conditions. Traditional industries are undergoing upgrades, emerging industries are expanding, and future-oriented industries are developing rapidly. Consequently, new growth drivers are taking shape at an accelerated pace. In the services sector, the integrated development of advanced manufacturing and producer services has gathered momentum. Policies aimed at improving people's livelihoods have created favorable conditions for the growth of the life services sector. Meanwhile, advancements in the AI industry are fueling growth in related industries and opening up new opportunities for sector upgrades.

Second, there is ample market demand, providing a solid foundation for unleashing both consumer and investment potential. The market stands as the most precious resource. China, with its population of over 1.4 billion and a per capita GDP surpassing $13,000, boasts a market of immense potential and breadth, holding within it vast opportunities for development. The growth in residents' consumption capacity and the rapid pace of consumption upgrading are fueling the expansion of new consumption forms, including green and digital consumption, as well as service sectors like elderly care and child care. These developments will emerge as key drivers propelling consumption growth forward. There is vast investment potential in fields such as new industrialization, new-type urbanization, and energy conservation and carbon reduction retrofits. Additionally, substantial investment demand exists in areas concerning people's livelihoods, including basic public services and government-subsidized housing. By fully leveraging these favorable conditions and systematically unleashing the potential of domestic demand, we will be able to facilitate economic circulation.

Third, advancing reform and opening up in all respects will further stimulate development potential and momentum. Reform and opening up is the driving force for Chinese development, serving as a crucial tool for rapidly keeping pace with the times. The third plenary session of the 20th CPC Central Committee proposed more than 300 important reform measures. As reforms in related fields are gradually implemented, these efforts are beginning to yield results in key areas and at crucial points. This progress will help overcome deep-seated institutional and systemic barriers, ensuring the market plays a decisive role in resource allocation. The goal is to create a first-class business environment that is market-oriented, law-based, and internationalized, fostering better interplay between an efficient market and a well-functioning government. This will further unleash and develop productive forces, stimulate economic vitality and enhance momentum.

Fourth, macroeconomic policies are yielding positive results, ensuring a steady economic recovery. A meeting of the Political Bureau of the CPC Central Committee on Sept. 26 last year decisively deployed a package of incremental policies, effectively boosting confidence, stimulating market vitality, promoting economic recovery and achieving remarkable results. Since the beginning of this year, all sectors have diligently implemented the spirit of the Central Economic Work Conference and adopted more proactive and effective macroeconomic policies, which help enhance momentum, stimulate vitality, stabilize expectations, and promote stable and healthy economic development.

It is also important to recognize that this year is the culmination of the 14th Five-Year Plan. Consequently, all stakeholders will focus on completing key tasks, redoubling their efforts, and offering enhanced support to drive stable economic growth. It should be noted that achieving China's GDP growth target, which is around 5%, is by no means easy and requires diligent efforts. Moving forward, we must conscientiously implement the decisions and deployments of the CPC Central Committee, seize the opportunities for economic recovery and growth, intensify the implementation of various macroeconomic policies, comprehensively deepen reform, further open up to the world, and vigorously foster new quality productive forces. We will strive to make significant progress in achieving high-quality development and complete the goals regarding this year's economic and social development, thereby laying a solid foundation for the successful completion of the 14th Five-Year Plan and a strong start to the 15th Five-Year Plan. Thank you.

Bloomberg:

We observed that industrial output growth is lower than in December last year. Do you think it is caused by the risk of increased U.S. tariffs? Thank you.

Fu Linghui:

Thank you for your question. Since the beginning of this year, policies aimed at vigorously advancing new industrialization, expanding and strengthening advanced manufacturing, and promoting the renewal and upgrading of traditional industries have contributed to relatively rapid growth in the equipment manufacturing and high-tech manufacturing sectors. New industrial momentum has been cultivated and strengthened, business expectations have improved, and overall industrial production has maintained stable and rapid growth.

First, industrial production continues to grow. All localities have stepped up their support for industrial production and strengthened the supply of essential resources, thereby creating conducive conditions for industrial development. In the first two months, the value added by industries above designated size increased by 5.9% year on year, accelerating by 0.1 percentage point compared to the whole of last year. The manufacturing sector experienced a growth rate of 6.9%, significantly faster than the growth rate of total industrial value added. Among these, the equipment manufacturing sector grew by 10.6%, accelerating by 2.9 percentage points compared to the whole of last year, thus providing strong support for the steady and rapid growth of industrial production. This industrial growth rate was achieved despite a high growth rate in January-February of last year, which also reflects the strong resilience of China's industrial sector.

Second, the trend towards high-end and intelligent development in industry is becoming increasingly evident. As technological innovation and industrial innovation continue to converge at an accelerated pace, advanced technologies like information technology and AI are driving industrial transformation and emerging as key drivers of industrial growth. In the first two months, the value added of high-tech manufacturing increased by 9.1% year on year, accelerating by 0.2 percentage points compared to the whole of last year. From a product perspective, the output of industrial robots and integrated circuit wafers increased by 27% and 19.6%, respectively, in January and February. The widespread adoption of domestic AI-driven large models in key industrial sectors like electronics and automobiles is accelerating, driving innovation and development across industries. The surge in computing demand is fueling the rapid growth of related industries. In the first two months, the value added of digital product manufacturing rose by 9.1%, while server output skyrocketed by 73%.

Third, industries are making progress in green development. New energy industries have demonstrated strong growth momentum, and the use of green energy is increasing, which provides a significant boost to the economic transition towards green and low-carbon development. From January to February, the output of NEVs and lithium-ion batteries for automobiles increased by 47.7% and 37.5% year on year, respectively, sustaining a high growth rate. Additionally, industrial enterprises above designated size maintained double-digit growth in wind and solar power generation.

Fourth, business expectations have improved. Since the beginning of this year, macroeconomic policies have become more proactive. Breakthroughs have been achieved in the application of technologies like AI, which have helped improve business expectations. In February, the manufacturing PMI stood at 50.2%, up 1.1 percentage points from the previous month. The new orders index for the manufacturing sector was 51.1%, increasing by 1.9 percentage points.

Overall, industrial production has maintained relatively fast and stable growth this year, manifesting new and positive momentums. However, we should also recognize that structural imbalances in market supply and demand remain, prices in certain industries are low, and some enterprises underachieve. Looking ahead, we need to implement various measures to expand domestic demand across all aspects, promote the integrated development of technological and industrial innovation, enhance business operations, and drive high-quality industrial development. Thank you.

21st Century Business Herald:

How do you assess the performance of the real estate market from January to February, and what positive changes have been observed? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, thanks to effective policies, the real estate market has maintained general stability. Overall transactions and new home sales have been stable, while second-hand home transactions have been relatively brisk. Housing prices in first-tier cities have begun to recover. Market expectations are generally stable, and the real estate market has continued to stabilize since the fourth quarter of last year.

First, market transactions have generally remained stable. As real estate market policies were optimized and adjusted, and residents' demand for essential and upgraded housing was gradually releasing, property transactions began to improve from the fourth quarter of last year. In January and February of this year, overall market transactions remained stable. During this two-month period, the year-on-year decline in the area and amount of new commercial housing sales narrowed by 7.8 and 14.5 percentage points, respectively, compared with the full-year figures of last year, while in 40 key monitored cities, the area and amount of new commercial housing sales rose 1.3% and 7.1% year on year, respectively.

Second, housing prices continued to stabilize. In February, stabilizing policies to cease market decline took effect, and as the result, among 70 large- and medium-sized cities, the sales prices of new commercial residential buildings in first-tier cities continued to rise month on month. Meanwhile, the year-on-year decline in sales prices for both new and second-hand residential buildings in first-, second- and third-tier cities continued to narrow. Regarding the sales prices of new commercial residential buildings, the year-on-year decline in first-tier cities narrowed by 0.4 percentage point compared with the previous month. The year-on-year decline in second- and third-tier cities narrowed by 0.3 and 0.1 percentage points, respectively, compared with the previous month. Regarding the sales prices of second-hand residential buildings, the year-on-year decline in first-tier cities narrowed by 0.7 percentage point compared with the previous month, while the year-on-year decline in second- and third-tier cities both narrowed by 0.2 percentage point.

Third, market expectations remained stable. A survey of real estate business entities shows that in February, among developers and intermediary institutions in 70 large- and medium-sized cities, 71.8% of surveyed employees expected new commercial residential building sales prices to remain stable or rise over the next six months, up 2.8 percentage points from the previous month. This suggests a generally stable outlook among market institutions.

Fourth, real estate development companies have seen operational improvements. As real estate sales in first- and second-tier cities showed a positive trend of halting declines and stabilizing, the sales stability contributed to improvements in enterprise operational development and helped generating liquidity. In the first two months, the year-on-year decline in real estate development investment narrowed by 0.8 percentage point compared with the whole year of 2024. In particular, residential investment saw its decline narrow by 1.3 percentage points, while the decline in funds available to real estate enterprises narrowed by 13.4 percentage points than full-year 2024.

Overall, the real estate market has remained generally stable this year and continues to show signs of halting its decline and stabilizing. However, we should also realize that the real estate market in some regions is still undergoing adjustments, and there are still pressures on stabilizing the market. In the next stage, we must thoroughly implement the decisions and arrangements made by the CPC Central Committee and the State Council. We should adopt city-specific policies, adjust and reduce restrictions, and intensify efforts to renovate urban villages and dilapidated housing, thereby fully unleashing the potential demand for basic and improved housing. We must also improve the housing system by diversifying suppliers and channels of support and by attaching equal importance to home purchases and rentals. Furthermore, efforts should be made to accelerate the establishment of a new model for real estate development and to promote the stable and healthy development of the real estate market. Thank you.

Yicai:

We have noticed that the CPI in February started to decrease year on year and month on month. What is the reason behind this? In addition, what is your view on the future trend of prices? Thank you.

Fu Linghui:

Thank you for your questions; price trends are of great concern to everyone. According to historical data, the Spring Festival has a significant impact on the CPI in January and February, especially when it falls in different months in two consecutive years, which can cause both year-on-year and month-on-month fluctuations. This is primarily due to the surge in purchases of goods and spending on services before and during the Spring Festival that drive up prices. After the Spring Festival, prices often decline as demand subsides. For instance, prior to the Spring Festival, it's common to see price hikes in food and transportation. However, once the holiday period ends and demand drops off, prices naturally decline. The Spring Festival falls in either January or February each year. When it falls in different months in two consecutive years, it typically causes noticeable fluctuations in the CPI.

In January this year, the CPI rose 0.5% year on year, a significant increase compared to the previous month due to the influence of the Spring Festival. In February, due to the shift in the timing of the Spring Festival, there was a year-on-year decrease of 0.7% in the CPI. This year, the Spring Festival fell in January, while last year, it was in February. After adjusting for the shift in the Spring Festival, February's CPI actually increased 0.1% year on year. It's also worth noting that the year-on-year decline in fresh vegetable prices and automobile discounts in February reduced the CPI growth rate. Due to a high base in the same period last year, when devastating snowstorms in some areas caused vegetable prices to surge, fresh vegetable prices in February this year fell 12.6% year on year, reducing the CPI by about 0.31 percentage point. In February, gasoline and new energy vehicle prices fell by 5% and 6%, respectively, collectively lowering the CPI by approximately 0.16 percentage point year on year. Overall, the CPI's moderate upward trend remains unchanged.

From the perspective of the CPI structure, as market demand improved, prices for some goods and services in February saw steady increases. In February, the prices of industrial consumer goods excluding energy rose 0.2% year on year. Among these, prices for cultural and entertainment durable goods, clothing, communication devices, and small household appliances increased by 1% to 1.6%. Certain service sector prices showed steady growth in February, with housekeeping services prices rising 2.6% year on year and dining-out prices increasing 1.2%. These trends reflected the impact of improved market demand on prices.

Looking ahead, China's supply of industrial and agricultural consumer goods remains ample, and the overall service supply is stable, providing a solid foundation for maintaining price stability. As the economy continues to recover and grow, market demand is expected to expand further. The overall price situation is expected to gradually improve due to efforts to promote income growth through multiple channels, increase high-quality goods supply, improve the consumption environment and enhance consumer goods trade-in programs. Thank you.

Market News International:

In January-February, export and import year-over-year growth slowed from December. What is your interpretation of this data? And, what is the outlook for trade in the coming months given rising trade tensions? Thank you.

Fu Linghui:

Thank you for your questions. Indeed, given the complex and volatile international landscape, developments in foreign trade have drawn a lot of attention. Since the start of this year, global economic recovery has been sluggish, and trade restrictions have grown tighter, presenting mounting challenges to economic and trade growth worldwide. Amid the complicated external environment, China's imports and exports dipped marginally, influenced in part by a lower number of working days relative to the previous year. However, after adjusting for incomparable factors, our imports and exports maintained stable growth. In the first two months of the year, China's total imports and exports of goods fell by 1.2% year on year. However, according to the customs authorities, after adjusting for incomparable factors, imports and exports actually increased by 1.7%. Specifically, exports continued to grow, especially for key products such as machinery and electronics. This growth demonstrates the strong international competitiveness and resilience of China's foreign trade in a complex and challenging global environment. This is evident in several aspects.

First, from the perspective of major trading partners, imports and exports to the Association of Southeast Asian Nations (ASEAN) and the United States continued to grow. In recent years, as the Regional Comprehensive Economic Partnership (RCEP) has been further implemented, trade between China and ASEAN countries has maintained good momentum. This year, China-ASEAN trade continued to grow, with bilateral trade increasing by 4% year on year in the first two months. Despite higher tariffs and other constraints, the complementary nature of China-U.S. trade has remained evident, with trade in goods continuing to grow. In the first two months of the year, bilateral trade increased by 3.5% year on year.

Second, in terms of trade entities, imports and exports by private enterprises continued to grow. In recent years, private enterprises have actively expanded into international markets, playing a crucial role in driving foreign trade growth. Looking at this year's situation, private enterprises have actively responded and adjusted to the complex changes in the international market. They have taken the initiative to explore new areas of foreign trade, and the effects are becoming evident. In the first two months, private enterprises saw their imports and exports rise 2% year on year, outperforming the broader foreign trade sector.

Third, in terms of commodities, exports of mechanical and electrical products experienced strong growth. With ongoing industrial upgrading in China, mechanical and electrical products have become increasingly competitive, fueling sustained export growth in sectors such as integrated circuits and automobiles. In the first two months of the year, China's exports of mechanical and electrical products grew 5.4% year on year. Within this category, exports of automatic data processing equipment and components rose 11.7%, integrated circuits 13.2% and automobiles 3.7%.

Looking ahead, China's foundation for large-scale foreign trade remains solid, as it maintains its position as the world's largest trader of goods and second-largest in services trade. With diverse and stable economic and trade relations, China has become a major trading partner for more than 150 countries, creating ample opportunities for foreign trade development. Moreover, China boasts a complete industrial system and strong supporting capabilities. As a result, "Made in China" products are gaining increasing global recognition. Meanwhile, foreign trade enterprises are actively participating in the international division of labor and cooperation. Additionally, new growth drivers, such as green trade and digital trade, are constantly emerging. Collectively, these factors will support China's foreign trade development.

In the next stage, although the international environment has become more complex and severe, the trajectory of mutually beneficial cooperation will not change. China's firm commitment to opening up wider to the world will not change. It has a complete industrial system, its innovation capability continues to grow, and there is a foundation and conditions for the steady development of foreign trade, which will also create new opportunities for global economic and trade development. Thank you.

China Business News:

How do you evaluate the growth rate of manufacturing investment in the first two months of this year? What has been the effect of the large-scale equipment renewal policy? And how do you see the trend in the growth rate of  the manufacturing investment in the next stage? Thank you.

Fu Linghui:

Thank you for your questions. The development of the manufacturing sector is of great interest to everyone. Since the beginning of this year, with the continuous promotion of the high-end, intelligent and green manufacturing industry, the effect of large-scale equipment renewal policy has emerged, while manufacturing investment has maintained rapid growth, notably driving for the growth of total investment. In the first two months, investment in the manufacturing industry increased by 9% year on year, maintaining relatively fast growth. The main features are as follows:

First, the composition of investment continued to be optimized, and investment in equipment manufacturing grew rapidly. As the manufacturing industry improves and develops, the demand for equipment products expands, driving the growth of industry investment. In the first two months, investment in equipment manufacturing increased by 8.9% year on year. Among this, investment in railway, ship, aerospace and other transportation equipment manufacturing, and investment in general equipment manufacturing increased by 37.3% and 21.6%, respectively, both significantly faster than the growth rate of investment in the entire manufacturing industry.

Second, solid progress was made in transformation and upgrading, and investment in technological transformation of the manufacturing industry grew rapidly. Efforts to transform and upgrade traditional industries have been intensified, and investment in technological transformation in the manufacturing industry has shown good growth momentum. In the first two months, investment in technological transformation of manufacturing industry increased by 10% year on year, and the growth rate was 2 percentage points faster than that of the whole of last year.

Third, the manufacturing sector developed in a high-end manner, and investment in the high-tech manufacturing industry increased. All sectors have fostered and strengthened new quality productive forces, increased investment in scientific and technological innovation, and investment in high-tech manufacturing grew rapidly. In the first two months, investment in aerospace vehicle and equipment manufacturing increased by 27.1% year on year, and investment in computer and office equipment manufacturing increased by 31.6%.

It is also worth noting that since the beginning of this year, the large-scale equipment renewal policy has been vigorously promoted, which has not only promoted manufacturing production, but also strongly supported investment growth. In the first two months, investment in the purchasing of equipment, tools and implements increased by 18% year on year, 2.3 percentage points faster than that of the previous year, and its contribution to total investment growth reached 62.3%.

In the next stage, China's manufacturing industry has more potential for further development, and there are many favorable factors for the sustained growth of manufacturing investment. First, the industrial upgrading is accelerating. The country is accelerating its progress toward becoming a manufacturing powerhouse, and the manufacturing industry is developing in a high-end, intelligent and green direction with strong momentum. We need to further increase investment to accelerate the cultivation of new quality productive forces, promote the transformation and upgrading of traditional industries, vigorously develop emerging industries and plan for industries of the future. Second, breakthroughs in scientific and technological innovation are leading development. In recent years, China has made breakthroughs in such fields as large-scale AI models, humanoid robots, quantum communications and semiconductors. Innovative products and applications such as AI Plus have been accelerated, driving a surge in demand for related products and effectively boosting investment growth in related industries. Third, policy support is playing an obvious role. The Central Economic Work Conference and the national "two sessions" made comprehensive deployments regarding the expansion of effective investment, and all localities have made efforts to implement major national projects and programs, including those aligned with major national strategies, building up security capacity in key areas, as well as the large-scale renewal of equipment and the trade-in of consumer goods, and have strengthened the guarantee of projects, funds and other elements, which will strongly support the growth of manufacturing investment.

In the next stage, we must fully implement the guiding principles of the Central Economic Work Conference and the national "two sessions," actively expand effective investment, focus on improving investment efficiency, take well-targeted steps, give full play to the role of various government investment tools, better mobilize social investment, promote stable investment growth, and give full play to the role of investment in expanding demand and improving supply. Thank you.

Reuters:

How do you predict the economy will perform in the first quarter? From a consumption perspective, do you think we can see the effects of the policies to boost consumption? And what impact will the U.S. tariffs have on China's economy going forward? Thank you.

Fu Linghui:

Thank you for your questions. Amid the complex environment, everyone is paying more attention to the situation in the first quarter. In January and February this year, it can be said that the effect of macro policies continued to emerge, the economy started off smoothly, and the development trend took a new turn for the better. Judging from recent developments, although the external environment has become more complex and severe, unilateralism and protectionism have intensified, global monetary policies have become divergent, the risk of volatility in the international market has increased, domestic demand has been weak, and some companies have encountered difficulties in production and operation, the long-term positive trend of the Chinese economy has not changed. China has obvious advantages in terms of its enormous market, complete industrial system and abundant human resources. There is broad incremental space for upgrading demand, optimizing the structure and transforming old growth drivers into new ones. Both existing policies and incremental policies continue to be effective. The economy is expected to maintain a generally stable development trend with steady progress in the first quarter. The specific aspects are as follows:

First, the economy has continued to recover. In the first two months, production and supply grew steadily, consumption and investment rose steadily, and the growth rates of most major indicators were faster than the whole of last year, laying a good foundation for a promising start for the Chinese economy in the first quarter. In the first two months, the value added of industrial enterprises above designated size grew by 5.9% year on year, 0.1 percentage point higher than the whole of the previous year. The Index of Services Production grew by 5.6% year on year, 0.4 percentage point higher than the previous year. Investment in fixed assets grew by 4.1%, 0.9 percentage point higher than the whole of the previous year. Total retail sales of consumer goods increased by 4%, 0.5 percentage point higher than the previous year. These main indicators show a steady upward trend.

Second, domestic demand is expected to gradually expand. In terms of consumption, recently, the General Office of the CPC Central Committee and the General Office of the State Council issued a special action plan to boost consumption. All localities and government departments have successfully launched measures to boost consumption and benefit the public. By making greater efforts to promote consumer goods trade-in programs in more areas and innovating diversified consumption scenarios, these initiatives are expected to drive the steady growth of consumption. In terms of the consumer confidence index, the February index was 0.9 percentage point higher than the previous month, rising for the third consecutive month. In terms of investment, all parties have increased their efforts to stabilize investment, strengthening support for projects, funds and other production factors. They have also increased investment in infrastructure related to people's lives and innovation, which is conducive to continuous investment growth. In the first two months, infrastructure investment rose 5.6% year on year, an acceleration of 1.2 percentage points from last year. Investment in high-tech industries grew by 9.7%, significantly outpacing overall investment growth.

Third, the effects of macroeconomic policies continue to be evident. Greater efforts have been made to promote large-scale equipment renewal and consumer goods trade-ins, and these policies have continued to take effect. Based on the situation in the first two months, driven by the expansion of consumer goods trade-ins, retail sales of household appliances and audio-visual equipment, furniture, stationery and office supplies and communication equipment by enterprises above designated size all posted double-digit growth. With large-scale equipment renewal driving growth, purchase of equipment and instruments rose 18%. The gradual implementation of more proactive fiscal policies and a moderately accommodative monetary policy will support sustained economic recovery and improvement.

Fourth, market expectations and confidence have improved. With macroeconomic policies yielding positive results, the economy is recovering and trending upward. The property and stock markets have exhibited positive changes, and breakthroughs in cutting-edge technological fields like domestic large-scale AI models and humanoid robots have boosted social confidence. In January and February, the real estate market continued to exhibit a stable trend, while transaction volume and turnover on the Shanghai and Shenzhen stock exchanges maintained rapid growth. The expectations of business entities continued to improve. In February, the manufacturing PMI increased significantly, and the non-manufacturing business activity index remained within the expansionary range. These positive changes contribute to the expansion of production and demand, and help promote the smooth circulation of the economy.

Overall, despite facing certain risks and challenges, China's economic fundamentals remain sound, with multiple advantages, strong resilience, and significant potential. The supporting conditions and fundamental trends for long-term sound economic development remain unchanged. As macroeconomic policies continue to take effect, the economy in the first quarter is expected to maintain overall stability and make steady progress. Thank you.

Dingduan News:

As outlined in this year's government work report, key development targets this year include a surveyed urban unemployment rate of around 5.5% and the creation of over 12 million new urban jobs. What is the state of employment currently? Thank you.

Fu Linghui:

Thank you for your question. Employment impacts people's livelihoods and is a concern for everyone involved. At the start of this year, relevant departments began implementing proactive measures to stabilize and promote employment. They have supported diverse business entities in adding jobs to drive the expansion and upgrading of employment opportunities. Overall, employment has remained largely stable. Based on past experience, January and February are typically the months when migrant workers return home before the Spring Festival and then return to work after it. During this period, there are certain fluctuations in the supply and demand of the labor market, which often lead to a seasonal rise in the surveyed urban unemployment rate. As workers gradually return to their posts following the Spring Festival, the urban unemployment rate typically decreases. This year's circumstances have largely followed this trend. In January and February, the national surveyed urban unemployment rate increased. In February, the rate stood at 5.4%, which was 0.2 percentage point higher than the previous month. Overall, the fluctuation remains within a normal range, and the overall stability of employment has not changed. On a two-month average, the surveyed urban unemployment rate for January and February was 5.3%, roughly the same as for the same period last year.

However, it should also be noted that stabilizing and promoting employment this year will continue to require substantial and sustained efforts. The current international environment is complex and challenging, and the foundation for China's economic recovery and improvement remains fragile.

This year, ensuring stable employment will be crucial, given the 12.22 million new college graduates, the need to maintain over 30 million jobs for those lifted out of  poverty, and the substantial number of rural migrant workers. Consequently, this year's government work report emphasizes the need for increased efforts to stabilize and expand employment, refine the employment-first policy, promote full employment and improve job quality. Furthermore, it proposes implementing supportive plans in key sectors, conducting extensive vocational training programs, enhancing services for employment and new businesses, and bolstering protections for workers' rights and interests. These measures will support high-quality and full employment.

In the next phase, as China expands demand across all sectors and makes concerted efforts to drive high-quality development — through the transformation and upgrading of traditional industries, as well as the cultivation and growth of emerging industries and new business formats — a solid foundation will be established for promoting employment. In addition, the employment-first policy continues to take effect, and the employment environment is improving. These factors contribute to maintaining overall employment stability. Thank you.

Shou Xiaoli:

Due to time constraints, we will take one last question.

The Poster News APP:

During this year's national "two sessions," scientific and technological innovation was undoubtedly a hot topic, with keywords such as new quality productive forces, AI Plus and low-altitude economy sparking heated discussions. Based on data from January and February, how has scientific and technological innovation driven the development of new quality productive forces? Thank you.

Fu Linghui:

Thank you for your question. As you mentioned, the development of new quality productive forces is indeed of great interest to all parties. The CPC Central Committee has attached great importance to cultivating and developing new quality productive forces. All localities and government departments have actively introduced measures supporting new quality productive forces, which continues to produce effects. Looking at the situation in the first two months, new breakthroughs have been made in scientific and technological innovation; new industries have developed well; the digital and green economies have continued to grow; and the transformation and upgrading of traditional industries has been steadily advanced. New progress has been made in the development of new quality productive forces.

First, emerging industries have maintained rapid growth. Emerging industries are an important engine for developing new quality productive forces. In the first two months, the value added of high-tech manufacturing increased by 9.1% year on year, 0.2 percentage point higher than last year. Domestic AI large language models have emerged, and innovative products such as AI Plus have developed rapidly, advancing the transformation of production methods and driving the rapid growth of high-end manufacturing. From January to February, the output of high-tech products such as IC wafers, industrial robots, electric multiple units (EMUs) and civilian drones increased by 19.6%, 27%, 64% and 91.5% year on year, respectively.

Second, the vitality of the digital economy has been continuously released. The digital economy is a focal point for developing new quality productive forces. All localities and government departments have accelerated their steps to advance both the digital transformation of traditional industries and the digital industry. The digital economy has maintained a good momentum of development. In terms of industries, in the first two months, the value added of digital product manufacturing enterprises above designated size increased by 9.1% year on year, and the production index of the information transmission, software and information technology service sectors increased by 9.3%. In terms of products, the output of smart products such as 3D printing equipment and virtual reality (VR) equipment increased by 30.2% and 37.7%, respectively. The large-scale application of 5G technology has been further promoted. During the Spring Festival, 5G mobile data consumption increased by 35% year on year, accounting for 60.9% of mobile internet data consumption.

Third, the green economy has created new growth drivers. Solid steps have been taken to advance the green transition, injecting new impetus into the development of new quality productive forces. In the first two months, wind and solar power generation by enterprises above designated size increased by 10.4% and 27.4% year on year, respectively; and the output of green products such as NEVs, lithium-ion power batteries for vehicles, and carbon fiber and its composite materials increased by 47.7%, 35.4% and 51.5%, respectively.

Fourth, industrial transformation and upgrading has been advancing steadily. The digital transformation and intelligent upgrading of industries has added new sources for the development of new quality productive forces. In the first two months, investment in the upgrading of manufacturing technologies increased by 10% year on year, 5.9 percentage points higher than the growth rate of total investment. At present, China has built more than 30,000 basic-level smart factories, more than 1,200 advanced-level smart factories, and more than 230 excellence-level smart factories, which will effectively empower industrial transformation and upgrading.

Overall, since the beginning of this year, new quality productive forces have grown and expanded and have sustained good development momentum. Next, we will make greater efforts to stimulate the vitality of traditional industries, accelerate the cultivation and development of emerging industries, and actively lay the groundwork for future industries and bolster the development of new quality productive forces to inject more new impetus into China's economic growth. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu, and thank you to friends from the media for your participation. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Yang Chuanli, Liao Jiaxin, Gong Yingchun, Wang Yanfang, Yan Xiaoqing, Xu Xiaoxuan, Yang Xi, Xu Kailin, Wang Wei, Fan Junmei, Liu Sitong, Li Huiru, Li Xiao, Zhang Junmian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Shen Danyang, head of the government work report drafting team and director of the State Council Research Office

Mr. Chen Changsheng, a member of the government work report drafting team and deputy director of the State Council Research Office

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 5, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press briefing held by the State Council Information Office (SCIO). Today, we have invited Mr. Shen Danyang, head of the government work report drafting team and director of the State Council Research Office, and Mr. Chen Changsheng, a member of the drafting team and deputy director of the State Council Research Office, to introduce the report and answer your questions.

Now, I'll give the floor to Mr. Shen for his introduction.

Shen Danyang:

Hello, everyone. It is a pleasure to meet with you and introduce the drafting of the Report on the Work of the Government. This morning, Premier Li Qiang delivered the government work report at the third session of the 14th National People's Congress (NPC). My colleagues and I, who participated in the drafting of the report, listened attentively to the premier as he delivered the report in the Great Hall of the People. As members of the drafting team, we were already familiar with the content, but listening to the report being delivered was still exciting and inspiring.

Since the opening of the session, we have been following the media coverage, and we are pleased to see positive feedback and comments from all sides. In interviews after the opening meeting, we also noticed that many deputies to the NPC and members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) said that the report addresses social concerns, responds to various expectations, and will effectively boost confidence. One NPC deputy stated that this year's report is targeted, concise and foresighted, earnest and down-to-earth, and will gain wide recognition. He expressed his strong appreciation and support. Many netizens posted online, expressing their pride in the country's new achievements and feeling motivated by the new goals, tasks and policies proposed in the report. One netizen said that the government work report contains many important details, from economic growth to people's well-being, all affecting the everyday lives of ordinary people and aiming for concrete development achievements that bring tangible benefits to the public. There were many similar remarks, which I imagine you have also noticed.

Reporting to the NPC on the work of the government is a statutory duty of the State Council. Diligently drafting the government work report is extremely important, and the Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to it. General Secretary Xi Jinping presided over meetings of the Political Bureau of the CPC Central Committee and its standing committee to review the report, and made important instructions and clear requirements multiple times, pointing the way and providing the basic principles for drafting the report. Premier Li Qiang was personally in charge of drafting the report, convening executive meetings and plenary meetings of the State Council to study and discuss the report, holding multiple symposiums to listen to comments and suggestions, and putting forward clear requirements and concrete thoughts on the framework, content and expression of the report. Other leading officials of the State Council also provided guidance on the drafting and revision of the report.

The drafting team, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly studied and comprehended the guiding principles of the 20th CPC National Congress, the second and third plenary sessions of the 20th CPC Central Committee, and the Central Economic Work Conference. During the drafting process, great importance was attached to soliciting and reflecting ideas from all sides. It can be said that the drafting of the report was a democratic process of pooling wisdom from all sides to address social expectations and adopt increasingly refined, practical policies. The ideas and suggestions reflected in the report mainly came from three channels.

First, the premier directly listened to ideas and suggestions. In late January, Premier Li Qiang hosted three symposiums: one with experts, entrepreneurs and people working in the fields of education, science, culture, health care and sports; one with leaders of the central committees of non-Communist parties and the All-China Federation of Industry and Commerce, as well as individuals with no party affiliation; and one with leading government officials from various provinces, cities, counties and townships (towns) which was held in Hefei, Anhui province.

Second, we collected ideas from all localities and departments. During the initial stage of drafting the government work report, our team listened to the thoughts and suggestions of NPC deputies, CPPCC members, staff of relevant departments and enterprises, as well as experts and scholars, through thematic surveys and consultation meetings. After the report was drafted, it was sent to different localities, departments and entities for feedback according to procedures. Nearly 4,000 copies were sent out and returned, from which more than 1,000 comments and suggestions were extracted.

Third, we utilized media platforms to solicit opinions. For example, starting from December last year, www.gov.cn, together with 21 online platforms and some government websites, launched the online campaign titled "@State Council, Share Your Views on 2025 China's Government Work Report" to collect suggestions from internet users. As of 9 a.m. on March 5, just before we came here, we checked and found a total of 2.04 million suggestions. The internet users who left messages and offered suggestions come from a wide range of backgrounds, including different age groups, industries and regions. The drafting group carefully selected over 2,000 representative suggestions from them.

For opinions and suggestions collected from the above three channels, the drafting group carefully studied each one and adopted as many as possible. In the coming days, we will continue to revise and improve the report based on the opinions and suggestions of the NPC deputies and CPPCC members.

This year's report is still divided into three main parts. The first part is a review and summary of last year's work and achievements. The second part elaborates on the overall requirements, main targets and policy orientations for the economy and social development this year. The third part proposes tasks in 10 key areas that the government should focus on this year. At the same time, it also covers work related to government performance, as well as ethnic affairs, religious affairs, overseas Chinese affairs, Hong Kong and Macao, Taiwan, national defense and foreign affairs. The report emphasizes a simple, practical and down-to-earth writing style, using language that is as simple and concise as possible, and avoiding professional terminology, with the aim of making it easy for the public to understand.

That concludes my introduction. Next, my colleague Mr. Chen and I are willing to answer your questions on the drafting of the report and related issues. Thank you.

Shou Xiaoli:

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

CCTV:

Mr. Shen, as the head of the drafting group for this year's government work report, could you please introduce the key points and features of this year's report? Thank you.

Shen Danyang:

Thank you for your question. This year's government work report prominently embodies the comprehensive implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the decisions and deployments of the Party Central Committee. From the very beginning of the drafting process, Premier Li Qiang made it clear that we must thoroughly study and implement the important speeches and instructions of General Secretary Xi Jinping, and strictly carry out the decisions and deployments of the Party Central Committee. The main content of the report, including the review and summary of last year's work, the overall requirements for the government's work this year, the main targets, macro policy orientations and major tasks, were all drafted in accordance with the guiding principles of General Secretary Xi Jinping's important speech at last year's Central Economic Work Conference. The drafting group earnestly studied and grasped the main principles of General Secretary Xi Jinping's latest important speeches and instructions and the latest meetings and documents of the Party Central Committee, and fully reflected them in the report. At the same time, a series of specific work measures were proposed in combination with the actual conditions of various fields, striving to refine and implement the decisions and deployments of the Party Central Committee to ensure their effective implementation.

This year's report particularly emphasizes high quality, reform, people's living standards, and strengthening confidence. It can be said that this year's report focuses on promoting high-quality development, deepening reform, prioritizing people's livelihoods, and boosting confidence. I will elaborate on these four aspects.

First, this year's report particularly emphasizes promoting high-quality development. The report stresses that to fulfill the goals and tasks for this year, we must thoroughly implement Xi Jinping Thought on the Economy and focus on the top priority of high-quality development. We must work to both improve the quality of growth and appropriately increase output. The report outlines the annual work plan and key tasks for 2025, focusing on building a high-level socialist market economy system, developing a modern industrial system, promoting comprehensive rural revitalization, fostering coordinated regional development, and advancing high-level opening up. It emphasizes the thorough integration of high-quality development requirements across all stages and aspects of economic and social progress.

Second, this year's report particularly emphasizes further deepening all-round reform. The report thoroughly implements the guiding principles of the third plenary session of the 20th CPC Central Committee and summarizes and arranges reform work. In addition to specific deployments to accelerate the implementation of landmark reform measures, such as effectively stimulating the vitality of various business entities, advancing the construction of a unified national market, and deepening the reform of the fiscal, tax and financial systems, reform tasks and requirements have also been put forward in areas such as consumption and investment, education and technology, work related to agriculture, rural areas and rural residents, ecological and environmental protection, and social undertakings. The term "reform" appears more than 40 times throughout the report, making it a particularly important keyword this year.

Third, this year's report particularly emphasizes reflecting on the principle of "people's livelihood as paramount." For example, in the section on main targets, it proposes that personal income should grow in line with economic growth. In the section on the correct policy orientation, it proposes pursuing people-oriented macro policies. In the section on key tasks, it also puts forward a series of practical measures of concern to the people to improve their well-being. This is intended to reflect that the government's work should always adhere to a people-centered approach, respond to the needs and concerns of the people in a timely and effective manner, and wholeheartedly address people's livelihood issues, ensuring that the people can live a good life.

Fourth, this year's report particularly emphasizes boosting confidence. As we all know, China continues to face a complex and challenging development landscape this year, with increasing uncertainties in the external environment. As the saying goes, as long as confidence remains intact, solutions will always outnumber difficulties. Whether outlining the overall requirements and policy orientations for economic and social development this year, or specifying government tasks and policy measures, the report takes a pragmatic, proactive and effective approach. It fully demonstrates our unwavering determination to drive sustained economic recovery and growth, while also reflecting a clear commitment to tackling challenges head-on and making meaningful progress.

That concludes my answer. Thank you.

Yicai:

The Report on the Work of the Government has set this year's economic growth target at around 5%, which is higher than some institutional forecasts. What factors were taken into consideration when setting this target? And is the target achievable? Thank you.

Shen Danyang:

I will answer this question. The economic growth target of around 5% for this year was set after extensive research and careful deliberation. Prior to setting the target, the State Council dispatched numerous research teams across the country to conduct field research and gather feedback from relevant departments, experts, scholars and enterprises. The target was formulated based on a thorough assessment of both domestic and international conditions and various factors, striking a balance between necessity and feasibility. The target may be higher than the forecasts of some foreign institutions. But as we all know, any economic forecast is a projection based on certain assumptions, and the results are likely to change in response to environmental conditions, macro policies and reform measures — this has happened before. Based on China's development experience and global practices, achieving a development goal depends on three key factors: development momentum, available capabilities and conditions and supportive policies. Taking all these factors into account, we are very confident that this year's growth target can be achieved.

First, the positive momentum of China's economic recovery continues to strengthen and expand. While uncertainties persist in the international environment, and these factors continue to evolve, we have always emphasized that the key is to focus on our own affairs. Since the Political Bureau of the CPC Central Committee announced a package of incremental policies at a meeting on Sept. 26 last year, China's economy has shown a clear rebound. In Q2, GDP growth was 4.7%, in Q3 it was 4.6%, and in Q4 it was 5.4%, successfully achieving the annual growth target of around 5%. This momentum is highly encouraging. So, what about the situation this year? The rapid development of technology in China, particularly in artificial intelligence (AI), has captured global attention. The cultural and tourism sectors have thrived, especially during the Spring Festival, where consumption exceeded expectations. Recently, Chinese asset prices have steadily rebounded, and business confidence continues to grow. Since the beginning of this year, key economic indicators, such as the manufacturing purchasing managers' index (PMI), real estate sales and container throughput, further validate the stable growth momentum of China's economy.

Second, China has accumulated many favorable conditions for economic development. Most domestic and international research institutions agree that China still holds significant development potential, with a relatively high potential growth rate of around 5%. In recent years, new industries and growth drivers have been expanding rapidly. Sectors such as new energy vehicles (NEVs), photovoltaics and shipbuilding are now globally leading, while AI-related industries have seen explosive growth. These developments are injecting powerful new momentum into China's economic expansion. Previous negative factors, such as the real estate sector, are now showing positive changes, and their drag on growth is gradually diminishing. Even more promising is that as the reform measures outlined in the third plenary session of the 20th CPC Central Committee are implemented, the intrinsic momentum and vitality of economic development will be further unleashed.

Third, macroeconomic policies and policy measures are providing solid support. We have intensified efforts to implement a comprehensive package of both new and existing policies, ensuring their sustained effectiveness. Notably, the more proactive and effective macro policy mix being implemented this year, which is unprecedented in recent years, offers strong policy backing for economic growth. Furthermore, macroeconomic policies still have room for further adjustments and will be dynamically fine-tuned to respond to changing circumstances.

In conclusion, setting a growth target of around 5% is in line with China's current realities and the laws of economic development, making it an achievable goal. However, achieving this target will not be easy and will demand considerable effort. Thank you.

21st Century Business Herald:

The report proposes implementing more proactive and effective macro policies. What are the key considerations behind this approach? In which areas will this approach be reflected? What innovations can we expect in the implementation of macro policies this year? Thank you.

Shen Danyang:

I would like to invite Mr. Chen to answer this question. He was once head of the Macroeconomic Research Department at the Development Research Center of the State Council and deputy director of the center, and so is well-placed to address this issue given his extensive experience in macroeconomic research.

Chen Changsheng:

Thank you for your question. The issue you raised has been a focus of attention since last year's Central Economic Work Conference. The premier's report this morning revealed the details. It's important to note that the Political Bureau of the CPC Central Committee made a decisive move on Sept. 26 last year by implementing a package of incremental policies, which resulted in positive shifts in economic performance, increased confidence and a clear economic rebound. This year's report calls for more proactive and effective macro policies, continuing the policy approach outlined at the Political Bureau of the CPC Central Committee meeting on Sept. 26 last year. From a macroeconomic perspective, external uncertainties are increasing, and domestic aggregate demand remains insufficient, with weak consumption in particular standing out as a prominent issue. These challenges make it necessary to implement stronger counter-cyclical adjustments through macro policies. From the perspective of policy space, we are also well-positioned. For example, China's government debt ratio is around 70%, which is lower than that of major economies, with the central government's debt level being particularly low, providing significant room for borrowing. Globally, many countries are currently adopting accommodative monetary policies, and given China's price level, there is considerable room for maneuvering in monetary policy.

How can we embody the principle of being "more proactive and effective?" You all read the report delivered by the premier this morning. Much of the data was released for the first time, and some even exceeded expectations. Being "more proactive and effective" can be understood from four aspects: First, in terms of policy orientation, this is the first time we have proposed "a more proactive fiscal policy." We have also replaced the "prudent monetary policy" implemented for 14 consecutive years with "an appropriately accommodative monetary policy." This combination of macroeconomic policies is designed to deliver a clear and strong policy signal to people of all sectors. Second, in terms of policy support, this year's deficit-to-GDP ratio is set at approximately 4%, representing a 1 percentage point increase from last year. The government deficit is projected at 5.66 trillion yuan. In addition, a total of 1.3 trillion yuan in ultra-long special treasury bonds and 4.4 trillion yuan in local government special-purpose bonds will be issued, both reaching record highs. In total, this year's new government debt will reach 11.86 trillion yuan, an increase of 2.9 trillion yuan compared to last year. This scale is very large. We will see monetary policy play a greater role in adjusting both the monetary aggregate and structure. The policy will include timely cuts to required reserve ratios and interest rates, providing stronger support for the real economy and aiming to reduce overall financing costs. Third, regarding timing, policies should be implemented as soon as possible, which in itself reflects the policy support. Some policies should be implemented as soon as they are decided — better early than late — to stay ahead of any uncertainties. Once a policy is finalized, we should act decisively and with ample force to maximize its effectiveness. Fourth, with regard to coordination, we will further strengthen the alignment of macro policy orientations, enhance evaluations of policy consistency, and improve coordination and collaboration among various departments. We will also focus on prominent issues and pool policy resources to improve policy coordination, creating a combined impact greater than the sum of individual actions.

If you continue to pay attention to the report or read it closely, you will find that it fully embodies the innovative approaches to macroeconomic regulation introduced by the CPC Central Committee since the meeting of the Political Bureau of the CPC Central Committee held on Sept. 26. For example, the report explicitly states that we should pursue people-oriented macro policies. If you read it more carefully, you may notice some new expressions. For instance, the report challenges the conventional notion that "consumption is a slow variable," gives boosting consumption a more prominent position, and promotes synergy between increasing consumption and expanding investment. Another example is the report's emphasis on asset prices in macroeconomic regulation. For the first time, ensuring stability in both the real estate market and the stock market has been included as one of the overall requirements, as noted by some reporters familiar with macroeconomics. Additionally, the report highlights that more policy resources will be directed toward serving the people and meeting their needs. These are examples of innovations in macro policies. By creating a positive interplay between economic growth and improvements in people's lives, we aim to better promote high-quality development, stabilizing both growth and employment. Thank you.

Lianhe Zaobao:

This year's government work report emphasizes boosting consumption. What are the main challenges in this area? What new policies and measures will be implemented to vigorously boost consumption? Thank you.

Shen Danyang:

I'll answer these questions. Both consumption and investment are key components of domestic demand. Given the problems you mentioned, you might have observed that the government work report identifies "stimulating domestic demand across the board" as the first of the 10 key tasks for 2025. In light of the fact that insufficient demand is a major issue facing the Chinese economy, and given that changes in the international environment may exert new impacts on external demand, we need to place a greater focus on domestic demand in order to drive economic development. Therefore, the report emphasizes the need to stimulate domestic demand across the board, which requires comprehensive measures to tap the potential of domestic demand across all sectors, making it the main engine and anchor for economic growth.

To expand domestic demand, the report assigns a more prominent role to boosting consumption. Greater efforts are needed to address the following key issues: First, the lack of purchasing power; second, the shortage of quality products and services; and third, the need for further improvement in the consumption environment. Therefore, this year, on the basis of increasing the intensity and expanding the scope of support for the consumer goods trade-in program, we will also emphasize the "three priorities" and implement "one action." The "three priorities" include increasing people's incomes and reducing their burdens to enhance spending power, enhancing the supply of quality products and services to drive effective demand, and improving the consumption environment to promote consumer spending. We will also implement "one special action," which involves launching special initiatives to boost consumption. Relevant departments are currently developing an action plan and supporting policies for this purpose, which will be introduced and implemented as soon as possible.

While boosting consumption, the report also outlines targeted measures to strengthen investment. Addressing persistent challenges in the investment sector, it emphasizes the need to expand effective investment and boost investment returns. In terms of funding, we will simultaneously expand funding channels and increase the scale of funding through substantially enlarged government investments. These investments include ultra-long special treasury bonds, central government budgeted investments and local government special-purpose bonds. In terms of management, we'll streamline processes for local government special-purpose bonds, implement a negative list for investment areas, delegate authority for project review and approval, and increase ultra-long-term loans along with other forms of financing support. For investment direction, we'll encourage more investment in the service sector, use government investment to stimulate private investment, implement policies designed to spur the growth of the private sector, and support and encourage the development of private investment. Thanks for your questions.

Market News International:

What are the considerations behind setting this year's CPI target increase at around 2%? What policy measures will be implemented to promote a moderate rise in prices? Thank you.

Shen Danyang:

These questions will be answered by Mr. Chen.

Chen Changsheng:

Thanks for your questions. This is a topic of broad societal concern that spans both macro and micro aspects. Prices are fundamental signals in a market economy, acting as the "body temperature" of economic operations. Neither excessively high nor persistently low levels are desirable. You may have noticed that China's price levels have generally stayed low over the past two years. From a static consumer perspective, this may seem like a good thing, as the same 100 yuan can buy more goods. However, from a dynamic perspective of national economic circulation, persistently low prices pose challenges. They result in higher real interest rates, heavier debt burdens, reduced corporate investment, and fewer opportunities for employment and income growth. Historical experiences and practices from countries worldwide indicate that moderate price increases are signs of healthy economic functioning.

In this year's government work report, the CPI increase is projected at around 2%, differing from previous years and signaling a more proactive, policy-driven approach. The rationale is to strengthen the guiding role of price indicators for both society and the market, as current downward price pressures exceed upward trends. By implementing policies to promote a moderate rise in prices, we can protect people's basic livelihoods. This approach also helps boost market confidence, encourages businesses to invest more, and creates more opportunities for citizens to find jobs and increase their income, ultimately benefiting the overall macroeconomic cycle.

In terms of this year's deployment, you can closely review the government work report, which outlines four key measures. First, we will intensify counter-cyclical adjustments in our macroeconomic policies. We will leverage fiscal, monetary and other policies to balance supply and demand. Second, we will prioritize stimulating consumption to tap demand-side potential. Consumption is the ultimate demand, and robust consumption fuels national economic circulation and helps stabilize prices. Third, we will take comprehensive steps to address rat race competition and price wars. There are profound underlying reasons behind price wars. We should take measures such as strengthening standards, enhancing supervision, promoting industry self-regulation, and regulating local governments' investment attraction practices. These steps will ensure prices reflect quality, reinforce the principle of "you get what you pay for," and prevent a situation where "bad money drives out good." Fourth, we will make greater efforts to stabilize the real estate market and the stock market. The real estate and stock markets serve as critical economic barometers, with real estate constituting the largest share of household assets. Stabilizing the real estate and stock markets can unleash wealth effects, boost consumption, and facilitate moderate price recovery. Thank you.

Economic Daily:

We have noticed that the government work report reviews the hard-won achievements of the past year through the dual lenses of "stability" and "progress." Could you provide further interpretation? Thank you.

Shen Danyang:

I'll answer this question. Over the past year, China has faced both challenges and achievements, with the achievements being particularly inspiring. This morning, Premier Li Qiang highlighted these accomplishments through the dual lenses of "stability" and "progress" in the government work report. While the report broadly covered key achievements, space constraints limited detailed elaboration on each success. Here, I'd like to highlight three notable points to further supplement the highlights of last year's government work.

The first notable point is the rebound and upward momentum in the economy. In the second and third quarters of last year, China's economic operations faced significant downward pressure due to various domestic and international factors. Following decisive decisions made at a meeting of the Political Bureau of the Communist Party of China Central Committee on Sept. 26, the State Council fully implemented a package of incremental policies. This led to a significant recovery in the economic growth in the fourth quarter, with its growth rate reaching 5.4% and contributing to an annual growth rate of 5%. The GDP rose to 134.9 trillion yuan, exceeding the 130 trillion yuan mark for the first time. Globally, this growth rate not only surpassed the world average of about 3% and the overall pace of emerging markets and developing economies but also outpaced the growth rate of the U.S., Germany and Japan. Among the world's top four major economies, China maintained the highest growth rate. China's contribution to global economic growth remains around 30%, continuing to be a significant engine for the world's economic growth. As the saying goes, "One does not know the difficulty until one has experienced it." Such a rate of economic growth, combined with this rebound momentum, is truly remarkable and even more precious.

Second, the development of new quality productive forces has significantly accelerated. In terms of scientific and technological innovation, the report highlighted major achievements such as the "Chang'e-6" mission and the Mengxiang ocean drilling vessel. In fact, there are many more examples like these. For instance, China's domestically developed third-generation superconducting quantum computer, Origin Wukong, has begun operating, and the China-standard high-speed train prototype capable of reaching a speed of 450 kilometers per hour has completed both its design and manufacturing phases. China reached 11th position in the Global Innovation Index, 2024 rankings, making it one of the fastest 10-year climbers. In terms of industrial development, high-tech industries such as aerospace and electronic communications have witnessed rapid expansion. Meanwhile, there has been further enhancement in innovation capability within sectors like high-end equipment and artificial intelligence. Last year, the added value of the high-tech manufacturing industry increased by 8.9%, while that of the equipment manufacturing industry rose by 7.7%. These growth rates were 3.1 and 1.9 percentage points higher, respectively, than the overall growth rate of industries above designated size.

Third, significant strides have been made to ensure and improve the people's wellbeing. Last year, numerous measures to enhance people's livelihoods were introduced and implemented. Some were highlighted in the government work report, while others were not included due to space constraints. For example, in the area of education, the standard of living subsidies for students from economically disadvantaged families in compulsory education were raised, benefiting almost 20 million students nationwide. For social security, the basic pension for retirees rose by 3%, and special one-time living subsidies were provided to more than 11 million in need. Regarding housing, nearly 2 million units of resettlement housing were either built or delivered. In terms of consolidating the gains of poverty elimination, efforts to expand work-as-relief programs were intensified, enabling more than 33 million people who have been lifted out of poverty to secure employment. Notable progress was made in relation to efforts to improve people's wellbeing.

I'll conclude here due to time constraints, despite there being much more that could be discussed. Thank you.

Phoenix TV:

At its third plenary session, the 20th CPC Central Committee set forth plans for further deepening reform comprehensively. The government work report also includes specific arrangements for reform and opening up. Could you shed light on the key sectors targeted for reform initiatives this year? And what new measures will be implemented to expand opening up?

Shen Danyang:

I will answer this question. This year, the government work report primarily focuses on implementing the reform plans outlined in the third plenary session of the 20th CPC Central Committee. Throughout the document, it embodies the principles and requirements of reform, emphasizing the need to effectively implement annual reform tasks. It highlights the importance of both comprehensive advancement across all sectors and achieving breakthroughs in key areas, particularly in accelerating the implementation of landmark reform measures. The report outlines a wide range of reform measures. Here, I will highlight just three of them. Regarding reform of the fiscal and taxation systems, we will press ahead with moving excise tax collection further down the production-to-consumption chain, with the power of collection steadily being passed to local governments this year. This effort has been proposed for several years, and now, there is a firm commitment to speeding up its implementation. This reform will have a substantial impact and provide significant advantages. It alleviates financial pressure on producers without increasing the burden on taxpayers. Furthermore, it will encourage local governments to improve the consumption environment and actively bolster local consumption. For education reform, the report proposes a phased implementation of free preschool education. This is seen as an essential reform measure to ensure equitable preschool access. It offers numerous benefits to the public and society, helping to reduce family childcare and education costs, as well as contributing to the long-term demographic stability. In terms of health care reform, the report underscores the need to deepen the reform of public hospitals with a focus on public welfare. This will help effectively enhance the service quality of public hospitals, making health care more reliable and convenient for the public. Many breakthrough and landmark reform measures are mentioned in the report. However, due to time constraints, I am unable to elaborate on them one by one.

Speaking of openness, opening up is a key strategy for China's development. The Chinese government will steadfastly promote greater openness, continually widening its doors to the world. This year, the report also proposes several new measures to enhance openness, emphasizing the need to steadily expand institutional opening up and take the initiative to open wider and advance unilateral opening up in a well-ordered way, and continue fostering a world-class business environment that is market-oriented, law-based, and internationalized. For instance, the report proposes to actively promote foreign investment. This year, we will further relax market access for foreign investment, expand pilot projects to open up sectors including telecommunications, health care and education, revise and extend the "Catalog of Encouraged Industries for Foreign Investment," and broaden the fields and scope of foreign investment. Another example is the effort to strengthen support services for foreign-invested enterprises, optimize project services throughout the entire process, expand financing channels for these enterprises, and facilitate easier personnel exchanges. And there are, in fact, many more measures for opening up like these efforts. These measures will offer more opportunities and better conditions for foreign enterprises and investors to develop in China. We believe that as long as foreign investors seize favorable opportunities to make long-term plans and actively invest in and cooperate with China, they will undoubtedly be able to benefit from those opportunities arising from China's ever-expanding market. Thank you.

Zhinews of Shenzhen Satellite TV:

The report emphasizes the need to effectively stimulate the vitality of various business entities. As you mentioned earlier, this year's report particularly focuses on boosting confidence. May I ask what effective measures will be taken this year to enhance enterprise vitality, improve business expectations and boost confidence? Thank you.

Shen Danyang:

As mentioned earlier, people are particularly keen on understanding how this year's economic and social development targets will be met, and your question is closely tied to this topic. We believe that to achieve this year's economic and social development goals, it is necessary to focus on policy efforts, but even more crucially, to stimulate the internal momentum of various business entities. Once the internal momentum is boosted, it will continuously give full play to its supporting role. In recent years, the CPC Central Committee and the State Council have given considerable attention to issues affecting businesses, especially small- and medium-sized enterprises (SMEs) and private companies. We have consistently pushed for solutions and made significant progress. Not long ago, General Secretary Xi Jinping attended a symposium for private enterprises, where he delivered an important speech. I believe everyone can perceive the concern and emphasis that the CPC Central Committee has placed on the development of the private sector. According to the requirements of the government work report, a lot of work will be done this year to stimulate the vitality of various business entities and boost the confidence of enterprises, especially private companies. Specifically, this will be achieved by solidly implementing the policies and measures that have already been introduced, focusing on three key areas: enhancing the business environment, reducing burdens and optimizing services.

Improving the environment means continuously investing significant resources to create a market environment with fair competition and maintain a stable, consistent policy environment. This is also an aspect that many enterprises are eagerly anticipating. For example, we need to guide more private investment toward major infrastructure and public wellbeing projects. We will also launch special initiatives to regulate enterprise-related law enforcement, with a focus on tackling arbitrary charges, fines, inspections and seizures. We will take resolute steps to prevent unauthorized cross-jurisdictional and profit-driven law enforcement.

Reducing burdens on businesses means helping them operate with ease by intensifying efforts to settle overdue payments owed to enterprises. Overdue payments include debts owed between businesses and those owed by governments to enterprises, with various entities owing each other across the board. This year, measures will be taken to address these issues. We will arrange local government special-purpose bonds to reduce overdue payments owed by local governments to enterprises, intensify efforts to tackle this issue at the source, and take stronger punitive actions against those who act in bad faith. Additionally, we will implement long-term mechanisms to address this issue. In fact, the State Council has already conducted research, and a series of strong measures will be implemented in due course. We need to increase financing support for private enterprises and small and micro businesses and make continued, intensive efforts to resolve the difficulties they face in accessing affordable financing.

Optimizing services means providing high-quality government services that better support the development of enterprises. The State Council has decided to take advancing one-stop government services as a leverage to improve the efficiency of government services. This is not merely a slogan but a concrete policy measure and a meaningful service initiative. The State Council has put in place specific measures and issued guidelines, and we will continue to work to ensure the implementation of those measures. We will continue to upgrade government services across all levels of government and establish mechanisms to enhance regular communication and exchanges between governments and businesses. For example, some local government officials hold enterprise symposiums, and these practices should be institutionalized to provide business leaders with a stable and efficient channel for engaging with government officials. We should conduct service-oriented administration. That's all from me. Thank you for your question.

Cover News:

Developing a unified national market is a systematic project that involves a wide range of areas and numerous factors to consider. The government work report has outlined specific plans for this initiative for two consecutive years. What steps will be taken next? Thank you.

Shen Danyang:

I'd like to invite Mr. Chen to answer this question.

Chen Changsheng:

Thanks for your question. The CPC Central Committee and the State Council attach great importance to developing a unified national market. As we know, China has a vast market with a population of over 1.4 billion. Even a 1% share of demand equates to a significant market of 14 million people. From a macroeconomic perspective, China sees nearly 50 trillion yuan in annual consumption, more than 50 trillion yuan in investment, and over 20 trillion yuan in imports of goods and services each year, reflecting a massive scale. China is currently transitioning from a per capita GDP of $13,000 to $20,000 as it moves to the next stage of development. Judging from international experience, this stage also releases significant demand potential. Regarding supply conditions, China maintains a vast and diverse production factor and resource market, a comprehensive industrial system and a robust transportation and logistics network. These are our unique advantages. If localities focus on self-protection, engage in small-scale circulation, and create fragmented, isolated markets, enterprises will be unable to compete effectively, and the advantages of economies of scale will be squandered. This approach is equivalent to "undermining one's own potential."

Making thorough efforts to develop a unified national market involves removing bottlenecks and obstacles that impede economic flows, maximizing the market's decisive role in resource allocation, better leveraging government functions, and effectively boosting the domestic economy.

Specifically, while continuing to implement guidelines on developing a unified national market and strengthening the implementation of regulations on fair competition review, our priority this year can be summarized as "five integrations and one elimination." The "five integrations" refer to actively promoting unified foundational institutions and rules, unified and interconnected market facilities, a unified production factor and resource market, a unified goods and services market, and unified market supervision. At the same time, further regulation of local governments' economic promotion and investment attraction practices is needed, along with a comprehensive effort to address rat race competition and genuinely eliminate harmful local protectionism.

In this process, we should attach equal importance to efforts in both establishing new systems and abolishing old ones. Abolishing old systems means resolutely eliminating local protectionism and market fragmentation. This year, strong efforts will be made to address the practice in some regions of indirectly requiring out-of-town enterprises to establish local branches, a requirement that many businesses consider highly costly. Additionally, discriminatory provisions affecting market access remain, and enterprises continue to face obstacles when exiting the market. These issues must be addressed decisively. Regarding the establishment of new systems, a new revised version of the negative list for market access will be introduced. Additionally, bidding and tendering systems and mechanisms will undergo reform and improvement. This year, specific measures will be introduced across three dimensions: "what is required, what is prohibited, and what is encouraged." These measures aim to guide localities in fully leveraging their comparative advantages and achieving differentiated competition and development. Finally, it should be emphasized that developing a unified national market is intended to enhance our participation in the global division of labor. China is a large market that is open to the world, not one that operates in isolation behind closed doors. The developing of a unified national market across China means purchasing from and selling to all parts of the country. Additionally, it means buying from and selling to the entire world. Thank you.

Kyodo News:

My questions are about the AI Plus initiative first mentioned in the 2024 government work report. Over the past year, China's AI sector – particularly its private industry – has made remarkable progress. Global attention has focused on innovations such as DeepSeek's generative AI and Unitree Robotics' AI-powered robots. This year's report also mentions the AI Plus initiative. What development blueprint has the Chinese government outlined for this initiative? What policies are being prioritized to support this emerging field? Additionally, global competition in AI is intensifying. What strategies is China considering for collaborative development with international partners, such as Japan? Thank you.

Shen Danyang:

These questions all pertain to AI-related topics. I would now like to invite Mr. Chen to address them collectively.

Chen Changsheng:

Thanks for your questions. First, your Chinese is very good. AI is a hot topic that has captured the world's attention. Last year's government work report first proposed the implementation of the AI Plus initiative. As you have seen, particularly around the Spring Festival, China's AI sector has indeed accelerated thanks to the collaborative efforts of innovation-driven high-tech enterprises, research institutions, and governments at all levels. For example, DeepSeek has gained global fame, and Unitree Robotics performed a traditional Yangge dance at the Spring Festival Gala. Everyone is wondering why the "Six Little Dragons of Hangzhou" (DeepSeek, Unitree Robotics and other four emerging tech companies in the city) have suddenly become so popular. Many AI applications are rapidly advancing in their implementation, and there is great excitement about them.

Recently, there has been a growing awareness of the positive trend in the international capital market toward re-evaluating Chinese assets. This phenomenon offers a distinct perspective on how AI drives economic development. This year's government work report proposes to continue promoting the AI Plus initiative, aiming to capitalize on the breakthrough in AI technology. It seeks to fully integrate China's digital technologies with its manufacturing strengths and market scale, drive the adoption of large-scale AI models across the board, and aim to bring AI into every household and empower every sector. We have noted that relevant departments are stepping up efforts, focusing on the following areas of work this year.

First, in terms of empowering industrial development, AI should be extensively utilized across the industrial, agricultural and service sectors. This should involve actively supporting the development and application of large-scale AI models in specific industries, ensuring that AI effectively drives the transformation and upgrading of industries, as well as empowers new quality productive forces.

Second, in terms of terminal applications, Premier Li Qiang specifically mentioned in the report this morning that we should vigorously develop next-generation intelligent terminals, including intelligent connected vehicles, AI-enabled smartphones and computers, and intelligent robots. Developing AI terminals not only leverages our manufacturing strengths to accelerate commercial implementation but also aligns more closely with people's needs, enabling them to enjoy intelligent living sooner.

Third, in terms of scenario cultivation, this year will witness the rollout of demonstration initiatives on the large scale application of new technologies, products, and scenarios. Provided that usage is safe, AI applications will be accelerated in areas such as the low-altitude economy, education and training, medical services, and health care. In this process, it is essential to prevent unnecessary private deployment and a project-based approach, which could lead to market fragmentation. The benefits of large-scale application, rapid iteration and continuous upgrading should be fully utilized to encourage a harmonious interaction between technological innovation and market applications.

In addition, the development of AI requires continuing breakthroughs in core technologies in key areas, accelerating the development and utilization of data, optimizing the layout of national computing resources, and so forth. AI talents, especially younger ones, should be supported by providing them with additional resources, encouraging them to take risks and innovate freely, and creating a more dynamic innovation ecosystem and an inclusive environment that enables them to excel.

Let's turn our attention to international cooperation. AI governance is a shared challenge for countries worldwide, requiring global efforts that include international cooperation to which Japan should contribute. In 2023, China released the Global AI Governance Initiative, advocating for a people-centered approach and the principle of developing AI for good, with the aim to ensure that AI develops in a direction that truly benefits human civilization. Furthermore, we advocate for the equal, fair and open use of AI for all countries, attaching great importance to the establishment of ethical principles for AI. China has expressed its support for coordinating international efforts within the United Nations framework to address issues concerning AI development, security and governance. Throughout history, technological progress has consistently played a crucial role in breaking down barriers and dismantling protectionism in all its forms. We hope that, in the current international context, AI will bring positive momentum that promotes cooperation and enhances multilateralism. Thank you.

Shou Xiaoli:

Two journalists have their hands raised. We will take the last two questions, please.

The Poster News APP:

This year's report has introduced many new measures to ensure and enhance people's well-being, which the public is eagerly anticipating. Could you provide a review and interpretation of the main aspects? Thank you.

Shen Danyang:

I'll answer this question. As you noted, this year's government work report has introduced measures aimed at ensuring and improving public well-being, which the public is eagerly awaiting. The measures proposed in the report are comprehensive, encompassing policies designed to promote income growth through various channels. These policies focus on enhancing earnings for low- and middle-income groups by reducing their financial burdens. The report includes strategies to improve agricultural profits, revitalize rural development, and increase rural incomes. Efforts will also be strengthened to stabilize and expand employment opportunities. Moreover, the report recommends enhancing basic medical and health services and improving regulatory oversight to ensure school meal and food delivery safety. These initiatives will be worth the wait. I will list a few here.

In terms of promoting employment, the report proposes increasing the coordination of funds and resources, with a focus on supporting industries with large employment capacities and groups that require stronger support. For example, it is necessary to properly address the employment issue for this year's 12.22 million college graduates, ensuring graduates find employment sooner and their parents can rest assured. It is now March, the prime time for college graduates to look for jobs. There is a saying: "Golden March, Silver April." Employers are conducting spring recruitment on campuses, and efforts should be made to organize it well and provide good services. We should spend money where it's needed, and strengthen publicity and promotion as appropriate. Some plans and arrangements are already in place. Furthermore, support should continue to be strengthened for groups such as those lifted out of poverty and migrant workers. In response to the prominent social issue of structural unemployment, large-scale vocational skills improvement training initiatives will be carried out this year. Structural unemployment means that, on one hand, some people cannot find work, while on the other hand, some positions cannot find suitable candidates. For example, there are relative shortages of workers in sectors like domestic services and elderly care, as well as operators in fields related to big data and AI, and maintenance personnel for NEV-related equipment. Targeted vocational skills training should be conducted to address these structural unemployment challenges, and we need to put efforts into this. Additionally, it is necessary to accelerate the establishment of a skills-oriented salary distribution system, supporting people in obtaining better jobs and higher incomes through skill enhancement.

In terms of social security, this year's Report on the Work of the Government proposed a series of measures to increase financial subsidies. For example, this year, the per capita financial subsidy for residents' medical insurance will increase from 670 yuan to 700 yuan, and the per capita financial subsidy for basic public health services will rise to 99 yuan. The basic pension for retirees and the minimum basic pension for urban and rural residents will be appropriately increased, benefiting 320 million people. Support and assistance for disadvantaged groups, such as those receiving subsistence allowances and people with disabilities, will continue to be strengthened. These areas all require financial expenditure, and compared to previous years, the fiscal investment in them this year is unprecedented. The public will benefit greatly, making this effort highly worthwhile.

The report also proposes a series of supportive measures for issues related to the elderly and child care that are of public concern. For example, in response to the varying needs of elderly, it proposes advancing community-supported at-home elderly care, strengthening care for functionally impaired elderly individuals, increasing support for assisted catering services for the elderly, and setting requirements for improving geriatric medicine and enhancing barrier-free, age-friendly facilities. The report also proposes measures such as issuing childcare subsidies, vigorously developing integrated childcare services, and gradually implementing free preschool education to strengthen support for childbirth and help alleviate the burden of childbearing, parenting and education on families. These measures are widely welcomed and eagerly anticipated.

There are many such measures, but I won't list them all. Thank you for your question.

Shou Xiaoli:

The last question, please.

ThePaper.cn:

The value of good policies lies in taking action and the crucial aspect is their implementation. How will the policies proposed in this year's report be implemented and deliver effective results? Thank you.

Shen Danyang:

I will address this question. The worth of any plan lies in its implementation. The State Council started early and is working diligently to ensure the effective execution of this year's government agenda. After the Spring Festival, a plenary meeting of the State Council was convened for deployment and mobilization. After the conclusion of the "two sessions," the State Council will convene another plenary meeting for further deployment, and hold an executive meeting to break down the tasks outlined in the government work report. Overall, the aim is to ensure the effective implementation of the policies in this year's report by strengthening collaborative coordination, promoting pragmatic innovation, improving administrative efficiency, and refining incentive and assessment measures. This involves many specific mechanisms and supervisory measures, and it is expected that more significant results will be achieved. For example, to promote the implementation of policies benefiting enterprises and the public, the first step is to further advance "one-stop government services." Since last year, the State Council has introduced 33 key initiatives in three batches, including business relocations, newborn registrations, housing provident fund loans, and trade-in subsidy applications. These are being systematically redesigned to offer a "one-place, one-window, one-network or one-submission" experience. The feedback from all sectors has been positive. The next step will be to include more items on the list and improve both online and offline services, thereby enhancing policy implementation efficiency and boosting convenience for the public and businesses in handling affairs. Another example is in motivating officials to focus on implementation. This requires both an improved evaluation system to stimulate the internal driving power to get things done, and a sustained effort to address formalism and reduce unnecessary burdens at the primary level. This includes cutting down on repetitive, fragmented and cumbersome inspections and assessments directed at the public, thereby allowing officials to dedicate greater attention to practical work.

Of course, the implementation of various policy measures requires the joint efforts of all sectors of society, which makes the promotion and interpretation of this year's government work report essential. The Research Office of the State Council has specifically organized the compilation of a series of reading materials, including guidebooks for the government work report, study Q&As, and face-to-face discussions on hot topic policies. This is work that is carried out every year. These supplementary reading materials will be published soon by the People's Publishing House and China Yan Shi Press. We hope they will provide useful reference for everyone to study the report, understand the report, and effectively implement the work. I would also like to take this opportunity to ask all journalist for your attention and support. That's all from me. Thank you.

Shou Xiaoli:

Thank you to both of today's speakers, and thank you to all the friends from the media. Today's briefing is hereby concluded. Goodbye, everyone.

Translated and edited by Liu Sitong, Li Huiru, Liu Caiyi, Li Xiao, Yang Chuanli, Wang Xingguang, Zhang Tingting, Yan Bin, Mi Xingang, Wang Wei, Yuan Fang, Wang Yanfang, Zhou Jing, Ma Yujia, Huang Shan, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wu Qing, chairman of the China Securities Regulatory Commission (CSRC)

Mr. Liao Min, vice minister of finance

Mr. Li Zhong, vice minister of human resources and social security

Mr. Zou Lan, member of the Party Committee of the People's Bank of China (PBC)

Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA)

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 23, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to have with us Mr. Wu Qing, chairman of the China Securities Regulatory Commission (CSRC); Mr. Liao Min, vice minister of finance; Mr. Li Zhong, vice minister of human resources and social security; Mr. Zou Lan, member of the Party Committee of the People's Bank of China (PBC); and Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA). They will brief you on actively encouraging the flow of medium- and long-term funds into the capital market and promoting its high-quality development, and take your questions.

Now, I'll give the floor to Mr. Wu for his introduction.

Wu Qing:

Thank you. Ladies and gentlemen, friends from the media, good morning. As we approach Spring Festival and the Year of the Snake, it is a great pleasure to meet you again here at the SCIO. I would like to take this opportunity to extend my Chinese New Year greetings to you in advance, and also to express my sincere appreciation for your long-term interest in and support for the capital market. Today is the 24th day of the 12th lunar month, which marks the Little New Year in southern China, while yesterday was the Little New Year in the north. Major matters brook no delay, let alone being postponed until after the Chinese New Year, so we are racing against time. The main purpose of today's press conference is to brief you on the Implementation Plan for Encouraging the Flow of Medium- and Long-Term Funds into the Capital Market, which was reviewed and approved at the plenary meeting of the Central Financial Commission (CFC) and jointly issued by six ministries and commissions, with a press release issued yesterday afternoon. At today's press conference, together with my colleagues from the Ministry of Finance (MOF), the Ministry of Human Resources and Social Security (MOHRSS), the PBC and the NFRA, which are responsible for drafting the implementation plan, we will introduce the background, main content and related work in the plan, and answer your questions.

As everyone knows, medium- and long-term funds are an important professional investment force in the capital market, serving as a "ballast" and a "stabilizer" to help maintain the market's stable and healthy operation. The Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core attaches great importance to the work of encouraging medium- and long-term funds to enter the market. The third plenary session of the 20th CPC Central Committee explicitly called for improving the capital market's functions to give balanced weight to investment and financing and supporting the entry of long-term funds into the market. The meeting of the Political Bureau of the CPC Central Committee on Sept. 26 last year and the subsequent Central Economic Work Conference made clear deployments, emphasizing the need to stabilize the stock market, deepen comprehensive reforms for capital market financing and investment, and remove bottlenecks and obstacles restricting medium- and long-term funds from entering the market. At the end of September last year, the Office of the Central Financial Commission and the CSRC jointly issued guidance on encouraging the flow of medium- and long-term funds into the market, which clarified the key work arrangements for promoting various types of medium- and long-term funds to enter the market and for establishing an institutional environment of "long money for long-term investment." The implementation of the guidance, together with a package of incremental policies, including monetary policy tools supporting the capital market, has played a strong role in stabilizing the market and helped guide it toward steady improvement.

This implementation plan is not only another important measure to thoroughly implement the CPC Central Committee's decisions and deployments on encouraging medium- and long-term funds to enter the market, but also a refinement, deepening and concrete implementation of the previous guidance. The implementation plan focuses on bottlenecks and obstacles for medium- and long-term funds such as public funds, commercial insurance funds, and pension funds in entering the market, and proposes a series of more concrete measures. It addresses both the present and the future. In the short term, it sets out specific and clear target requirements for the actual scale and proportion of various types of medium- and long-term funds investing in A-shares; and in the long term, it makes targeted institutional arrangements regarding assessment systems, investment policies, and market ecosystem construction that are adapted to long-term investment. In short, it is packed with substantial content. There are several key points:

First, increasing the actual investment proportion. After careful study and analysis, specific arrangements have been clarified to steadily raise the scale and proportion of medium- and long-term funds investing in A-shares. For public funds, it is stipulated that the tradable A-share market capitalization held by public funds should increase by at least 10% each year over the next three years. For commercial insurance funds, large state-owned insurance companies are expected to allocate 30% of their newly collected premiums each year from 2025 onward to invest in A-shares. This means that several hundred billion yuan of long-term funds will be added to the A-share market each year. The second batch of long-term stock investment pilots for insurance funds will be implemented in the first half of 2025, with a scale of no less than 100 billion yuan, and will be gradually expanded thereafter.

Second, the assessment cycle has been extended. A short assessment cycle has for many years been a significant constraint limiting the expansion of commercial insurance funds, annuity funds, and other medium- to long-term capital into the A-share market. Implementing a long-cycle assessment can effectively smooth out the impact of short-term market fluctuations on performance. Although the fund is designed for long-term investment, short assessment cycles make it difficult to maintain such an approach. By adjusting the assessment cycle, the stability of medium- and long-term fund investment behavior can be improved. The new implementation plan further proposes that public funds, state-owned commercial insurance companies, basic pension insurance funds, annuity funds and similar institutions fully adopt an assessment cycle of more than three years, significantly reduce the weight of current annual operating indicators for state-owned commercial insurance companies, and clearly define the five-year assessment cycle arrangement for the national social security fund. This is a very important institutional breakthrough for medium- and long-term funds entering the market, solving a problem that has remained unresolved for many years. From practical experiences both at home and abroad, this is also conducive to improving the investment returns of various medium- and long-term funds, fostering a win-win situation. For example, the national social security fund is the most active long-term fund participating in stock investment domestically. Over the past 20 years, the average annualized return on investment in A-shares has reached 11.6%, which is very high. This is mainly due to the social security fund's commitment to value investment and long-term investment, and the experience is worth carefully analyzing and referencing.

Third, we have further consolidated the joint force to implement incremental policies. Vigorously guiding medium- and long-term funds into the market is a systematic project. During the formulation of the implementation plan, the Central Financial Office strengthened overall coordination. Departments such as the MOF, MOHRSS, PBOC, NFRA and the Social Security Fund Council closely cooperated with us, innovatively carried out its work, and jointly promoted the formation of the specific and powerful measures introduced just now. This is also an important and long-term institutional reform. In the subsequent implementation process, we will continue to strengthen communication and collaboration, and enhance tracking and evaluation of the results.

We believe that, under the strong leadership of the CPC Central Committee and the State Council, and with robust support from all sectors, the rolling out of the implementation plan will further enhance the equity allocation capabilities of medium- and long-term funds, steadily expand investment scale, improve the supply and structure of capital market funds, and consolidate the good momentum of the capital market's recovery and improvement. It will also help medium- and long-term funds to enhance long-term investment returns, better practice the concepts of long-term, value-based, and rational investment, and achieve the preservation and appreciation of medium- and long-term funds, maintaining the stable and healthy operation of the capital market and fostering a virtuous cycle of the high-quality development of the real economy.

Thank you. That concludes my introduction.

Shou Xiaoli:

Thank you, Mr. Wu, for your introduction. Now, the floor is open for questions. Please identify the media outlet you represent before asking your question.

Yicai:

The implementation plan proposes a comprehensive implementation of a long-cycle assessment of more than three years for state-owned commercial insurance companies. What are the considerations behind this? How will this requirement be implemented in the future? Thank you.

Liao Min:

Thank you for your question. Good morning everyone. Mr. Wu provided an overview on this issue just now, and I will briefly add a short explanation.

Implementing long-cycle performance assessments for state-owned commercial insurance companies is an important measure to encourage them to leverage the capital market for medium- and long-term investments. First, considering the nature of insurance funds, they have the characteristics of stable sources, large scale and long repayment cycles, making them typical long-term investment funds and important participants in the capital market. Insurance funds investing in the capital market is also a common practice and basic model internationally. Based on the fund operations of large state-owned commercial insurance companies in China, there remains room to further increase investment in the capital market. Second, the high-quality development of the capital market also requires the participation of medium- and long-term investment funds, including more insurance funds, to reduce short-term fluctuations and enhance long-term development resilience; and the high-quality development of the capital market will also positively impact the preservation and appreciation of medium- and long-term funds, including insurance funds.

To support the greater participation of insurance funds in the market, the MOF has consistently leveraged performance evaluation as a "guiding tool." In fact, in October 2023, the ministry issued a notice on the long-cycle assessment of state-owned commercial insurance companies, adopting a mix of long-term and short-term assessment methods. Under this approach, the performance indicator "return on net assets," a key metric in the performance evaluation framework for commercial insurance companies, is divided into two separate assessments: one based on the current year and the other on the previous three years, each weighted equally at 50%. The goal is to guide state-owned commercial insurance companies to optimize asset allocation and focus on long-term investment returns.

Next, we will follow the requirements of the implementation plan to further promote the entry of insurance funds into the market and revise the long-cycle assessment system for state-owned commercial insurance companies. The main considerations are:

First, we will further increase the weight of long-cycle assessment indicators related to operational efficiency. The weight of the long-cycle assessment indicator, "return on net assets," which I just mentioned, has been adjusted to no less than 60%. This will facilitate the entry of more medium- and long-term funds into the capital market, better aligning the assessment cycle with the investment horizon of long-term funds, and further leveraging the long-term capital nature of insurance funds.

Second, we will implement long-cycle assessment for the preservation and appreciation of state-owned capital. By combining long- and short-term assessment methods, we aim to encourage state-owned commercial insurance companies to scale up their medium- and long-term investments, thereby achieving steady growth in owners' equity and the preservation and appreciation of state-owned capital.

Third, we will promote the improvement of investment management capabilities in state-owned commercial insurance companies. We will encourage and guide state-owned commercial insurance companies to strengthen their investment management and enhance their long-term capital operation capabilities.

We believe that this series of measures will help guide and promote state-owned commercial insurance companies to pay more attention to stable operation, better carry out long-term and value investment, and more effectively play the roles of insurance funds as "market stabilizer" and "economic booster," injecting more impetus into the sustained and healthy development of China's capital market. Thank you.

Xinhua Finance:

Since Sept. 26 last year, the meeting of Political Bureau of the CPC Central Committee has proposed steadily advancing the reform of public offering funds. What progress has been made in promoting the reform of public offering funds and increasing the scale and proportion of equity funds? Thank you.

Wu Qing:

Thank you for your question. Public offering funds are indeed important institutional investors and buyers in the capital market. Through professional investment services, they help investors share the growth dividends of listed companies and promote a positive interaction between economic development and the growth of residents' wealth. In recent years, the public offering fund industry as a whole has maintained a stable development trend. Its total scale has grown from 13 trillion yuan in 2019 to 33 trillion yuan by the end of last year. Among them, the scale of equity funds mainly invested in stocks has grown from 2.3 trillion yuan to 8.2 trillion yuan, and the value of equity ETFs has exceeded 3 trillion yuan.

In recent years, due to complex factors such as stock market fluctuations, especially in the past two years, some equity funds have suffered losses. The public offering fund industry has also exposed such problems as deviations in business philosophy, deficiencies in corporate governance and short-term investment behavior. According to deployments at the meeting of the Political Bureau of the CPC Central Committee held on Sept. 26 last year on steadily advancing the reform of public funds, the CSRC has adhered to the value orientation centered on the people, conducted in-depth inspections and analysis of prominent problems in the public offering fund industry, and proposed targeted reform measures after careful research and demonstration. A preliminary reform plan has now been formed. The overall considerations are as follows:

First, we will improve the governance and positioning of fund companies. We will strengthen the CPC's comprehensive leadership over the fund industry, further improve the governance of fund companies, ensure that shareholders' meetings, boards of directors and management teams fulfill their duties with due diligence, and firmly establish the business philosophy that prioritizes investors. We will systematically reform the industry's assessment and evaluation system, and comprehensively strengthen long-cycle performance assessments. The requirements in this regard are consistent with what Mr. Liao just mentioned, which is to extend the assessment cycle. We will enhance the incentive and restraint mechanisms as well as the compensation management system. The focus will be on aligning the interests of fund companies, their senior executives, and fund managers with those of investors. This is to prevent a preoccupation with scale at the expense of returns and to curb the tendency to prioritize asset growth over investor profits. We will further steadily lower the comprehensive fee rate of public funds. The fund sales fee rate will be further reduced starting in 2025 on the basis of reduced fund management fee rate, custody fee rate and transaction fee rate. It is estimated that this will save investors a total of approximately 45 billion yuan in fees each year, representing significant real savings for investors.

Second, we will strengthen the function of the fund industry by prioritizing the development of equity funds. As mentioned earlier, the implementation plan clarifies that the market value of A-shares held by public offering funds will increase by at least 10% annually over the next three years. The reform of public offering funds will help achieve this annual growth target of 10%. We will carry out the following four tasks in the reform of public offering funds: First, we will launch more products that meet the needs of investors, intensify innovation in medium- and low-volatility products, and transform the pilot program of floating fee rate products into a regular practice. Second, we will accelerate the development of index-based investment, formulate an action plan to promote the high-quality development of index-based investment, and implement a fast-track registration mechanism for equity ETF products, under which registrations should in principle be completed within five working days from the date of acceptance. These efforts are designed to further facilitate investments in the market by various type of medium- and long-term capital. Third, we will strengthen the guidance of regulatory classification evaluation, increase the proportion of equity funds in the scale and weight of indicators such as long-term performance in the regulatory classification evaluation, and guide fund companies to allocate a certain proportion of their annual profits to purchasing their own equity funds. Fourth, we will urge fund companies to enhance their core investment and research capabilities. This involves establishing an evaluation system for the investment and research capabilities, guiding fund companies to strengthen their construction of core investment and research capabilities, and effectively increasing abilities in asset allocation risk management.

Third, we will strengthen regulatory enforcement and effectively protect the interests of investors. We will improve laws and regulations in key areas such as shareholder equity, personnel management and market exit. We will strengthen the guidance and regulation on fund investment and trading behaviors, resolutely correct excessive speculative behaviors such as "high turnover rate" and "style drift," intensify the investigation and punishment of illegal and irregular behaviors, severely crack down on all kinds of illegal and irregular behaviors in fund investment, and enhance social supervision over the information disclosure of fund companies, to further foster a clean and upright industry culture.

At present, the CSRC is further strengthening research, listening to opinions and suggestions on the reform plans from various groups including industry institutions and investors. We will make revisions and improvements as soon as possible to ensure their early implementation. Thank you.

ThePaper.cn:

We know that insurance funds is characterized by its long-term nature, which make it an important source of institutional investment. Given this, could you elaborate on the NFRA's considerations for guiding insurance funds' flow into the stock market? Thank you.

Xiao Yuanqi:

Thank you very much for your concern and attention to the insurance industry. We know that in September 2024, the State Council issued the Opinions on Strengthening Supervision to Prevent Risks and Promote High-Quality Development of the Insurance Industry, and I have provided an interpretation of it here for everyone. The opinions proposed to leverage the long-term investment advantages of insurance funds and cultivate genuine patient capital. This would promote a positive cycle of funds, capital and assets. The NFRA has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, continuously guiding insurance funds to increase their investments in the stock market. Currently, insurance funds' investments in stocks and equity funds have exceeded 4.4 trillion yuan.

From the perspective of insurance fund utilization, the capital market and equity in unlisted companies are the main investment directions. Currently, the proportion of investment in stocks and equity funds is 12%, and the proportion of investment in unlisted company equity is 9%. Combined, these two account for 21%, reflecting the advantages and determination of insurance funds as patient capital and long-term capital in long-term investment.

Insurance companies retain considerable potential and scope for equity investments, with increased stock allocation representing a sound strategy and choice for current insurance fund asset management. We will further optimize and refine policies related to insurance fund investments, encouraging insurance funds to steadily increase their stock market investment ratios. In particular, large state-owned insurance companies should play an exemplary role, striving to allocate 30% of new premiums annually to stock market investments and working to steadily increase insurance funds' stock market investment ratios based on current levels. These are the "two strivings." This will fully leverage insurance funds' positive role as institutional investors in long-term and value investing. Thank you for your question.

CCTV:

The implementation plan proposes to continuously optimize the capital market investment environment. What specific work is being done in this area?

Wu Qing:

I'll answer this question. Thank you. The CSRC has been working to build a sound market ecosystem where investment and financing develop in a coordinated manner, and all market participants fulfill their responsibilities and receive their due benefits. Since last year, the CSRC has earnestly implemented Several Opinions on Strengthening Supervision, Preventing Risks, and Promoting the High-Quality Development of the Capital Market, adhering to the principles of consolidating the foundation and intensifying supervision and regulation, respecting the laws of the market and complying with regulatory rules. The CSRC has placed emphasis on the construction of the basic systems of the capital market, improved the full-chain regulatory framework, formed a "1+N" policy system, and promoted the continuous improvement of the market ecosystem. Looking ahead, we will use the implementation plan as an opportunity to practice the investor-oriented philosophy, further increase policy supply, and strive to create a market ecology more conducive to long-term investment, value investment, and rational investment.

First, on the asset side, we are working to improve the quality and investment value of listed companies. Last year, we formulated market value management guidelines for listed companies, introduced policies and rules encouraging dividends and share buybacks. Listed companies paid 2.4 trillion yuan in dividends and conducted 147.6 billion yuan in buybacks throughout the year, both setting historical records. At the turn of the year, we resolutely implemented the new "National Nine Article" requirements regarding multiple dividend payments per year and pre-Spring Festival dividends. This year, many companies have already paid multiple dividends. Many companies also paid dividends before the Spring Festival, with eligible listed companies guided and encouraged to give investors Spring Festival bonuses through special dividend payments. Beyond that, 90% of profitable listed companies paid dividends last year. In the two months before this year's Spring Festival — December last year and January this year — more than 310 companies are expected to implement pre-Spring Festival dividends, with dividend amounts reaching approximately 340 billion yuan. The number of companies and total amounts represent 9 times and 7.6 times the same period last year, respectively. Currently, the dividend yield of the CSI 300 Index has reached 3%, significantly higher than the 10-year government bond yield, further highlighting the investment value of the equity market. We will also further strengthen oversight of market access and exit mechanisms, enhance the inclusiveness and adaptability of the capital market system, further increase the supply of high-quality listed companies, and support more benchmark high-tech enterprises in listing on the A-share market. Meanwhile, we will strengthen ongoing supervision of listed companies, particularly by further improving corporate governance and continuously enhancing the quality of information disclosure by listed companies. Additionally, we will take multiple measures to boost and activate the mergers and acquisitions market. Listed companies should also further enhance their awareness of proactively rewarding investors and improve their attractiveness through measures such as cash dividends, share buybacks with cancellation, and major shareholder share purchases, providing more high-quality targets for the market. This is an important foundation for the market.

Second, on the trading side, we are continuously enriching the supply of products and tools suitable for medium- and long-term investment. That means strengthening investment. Institutional investors, including public offering funds, commercial insurance funds, basic pension funds, annuity funds, and bank wealth management, will be allowed to participate more actively as strategic investors in the private placements of listed companies. Insurance asset management, bank wealth management, and public offering funds will receive equal policy treatment for new share subscriptions, private placements of listed companies, and recognition standards for significant share acquisitions. This supports more active market investment by these funds. We will make good and full use of the central bank's swap facilities and work with the PBC to explore the establishment of regular institutional arrangements.

Third, on the institutional side, we will promote the continuous improvement of professional service capabilities. We will support securities and fund management institutions in conducting M&A and restructuring according to market-oriented principles to build first-class investment banks and institutions. A first-class capital market requires first-class investment banks and investment institutions. Building investment banks and investment institutions will further enhance the comprehensive capabilities to serve new quality productive force and residents' wealth management. Since last year, some leading institutions have made substantial progress in M&A. We will also guide industry institutions to increase resource investment in personnel, research, trading and capital, enhancing their service capabilities for various types of medium- and long-term funds such as pension funds and commercial insurance funds, as well as their service capabilities for all investors. We will accelerate the improvement of the rules and regulatory framework for fund investment advisory services to facilitate the transition from the pilot phase to regular operation, thereby providing investors with better wealth planning and asset allocation services.

Fourth, on the enforcement side, we will resolutely maintain a fair, just and open market order. We will strictly implement regulatory requirements for rigorous and in-depth regulation that is sharp-edged and powerful, adhere to the combination of punishment, prevention and governance, and conduct law-based and classified supervision. We will crack down on all kinds of illegal and non-compliant activities in a swift, precise and forceful manner. Efforts will be made to both tackle problems in their early stages and focus on major and serious cases. Chief violators and those who harm investors' legitimate rights will be held fully accountable. These measures will further enhance the precision and effectiveness of regulatory enforcement. We will strengthen the protection of investors' legitimate rights, particularly those of small- and medium-sized investors. Targeted measures will be implemented to tighten constraints on the conduct of controlling shareholders and actual controllers of listed companies. This includes cracking down on and restraining illegal activities such as malicious financial fraud and serious infringement of the legitimate rights and interests of small- and medium-sized investors. We will promote the improvement of special representative litigation, party undertakings, and other institutional mechanisms, and accelerate the enhancement of investor protection systems and mechanisms during the delisting process, particularly for delistings due to legal violations.

In summary, building a sound capital market ecosystem is the shared expectation of all market participants and encompasses many areas. The CSRC is duty-bound and will do its best. We will make persistent and sustained efforts to improve the capital market ecosystem so that all types of funds are willing to enter this market and can stay and develop well here. Thank you.

China Securities Journal:

The national social security fund serves as a strategic reserve fund to address population aging, which is of great significance. What specific arrangements are there for optimizing the investment assessment policies of the fund going forward? Thank you.

Liao Min:

Thank you for your question. This is a very important issue. I would like to address this question from four aspects.

The first is the positioning of the national social security fund. As you just mentioned, the national social security fund serves as a reserve fund for China's social security system. The basic principle of its investment operations is to achieve preservation and appreciation of the fund under the premise of ensuring asset safety and liquidity. The national social security fund must always adhere to this principle when conducting investments.

The second aspect is the investment allocation approach of the national social security fund. The investment structure of combining stocks and bonds is the common practice of various pension funds internationally. The moderate investment of the national social security fund in the stock market helps broaden channels for fund appreciation and enhances investment allocation flexibility. The current investment management policy sets a ceiling on the proportion of stock investments by the national social security fund, while ensuring that the scale of its stock investment is maintained at a reasonable level. Currently, the national social security fund maintains a stock-to-bond investment ratio of roughly 40:60, representing a well-balanced allocation. Since its establishment, the fund has generated stable investment returns and demonstrated strong performance. Mr. Wu has already provided a detailed overview of this matter, so I will not reiterate it here.

The third aspect is the relationship between the national social security fund and the capital market. From the perspective of the operation rules of the capital market, the capital market, including bonds and stocks, and the national social security fund can complement each other. As an important investor in the capital market, the long-term and stable investment strategy of the national social security fund helps to promote the healthy operation of the capital market, which in turn can enhance the fund's own investment returns, so a virtuous cycle can be formed between the two. Past investment results have also demonstrated this effect.

The fourth aspect is on strengthening the national social security fund with central government fiscal support. The MOF, as the supervisory department of the National Council for Social Security Fund, will continue to provide ongoing replenishment to the national social security fund. While strengthening the fund's guarantee capacity, the ministry will support the injected funds to increase their investment in the capital market. More flexible stock investment portfolios will also be adopted to provide sustained support for the sound development of the capital market, thereby achieving a win-win outcome of preserving and increasing the fund's value while promoting stable capital market operations.

Going forward, the MOF will promptly implement the plan. Additionally, regarding specific follow-up arrangements, we are expediting work in two areas.

First, we are optimizing and improving the national social security fund investment management system. We have revised the relevant management measures for domestic investment by the national social security fund and solicited comments from the public. The MOF is now actively reviewing and incorporating the feedback from various sectors of society. After completing the required procedures, it will be formally released to the public as soon as possible. The revised measures incorporate the latest developments in financial markets, optimize the proportions of different investment categories, and further enhance the intensity and flexibility of national social security fund investments.

Second, we are improving the long-cycle assessment system for national social security fund investment operations. We are working to improve the long-cycle assessment system for the national social security fund by refining and enhancing the requirements for long-cycle assessment mechanisms of five years or more. The plan is to evaluate fund investment operations from different dimensions, including risk management, value preservation and appreciation. This will balance short-term investment returns with long-term value preservation and appreciation goals. This will strengthen the long-cycle investment philosophy and provide strong, sustained support for the long-term, stable and healthy development of China's capital market. Thank you for your question.

Economic Daily:

Encouraging social security funds and other long-term capital to enter the market is a key component of advancing pension finance initiatives. What specific measures will the MOHRSS take in this regard? Thank you.

Li Zhong:

Thank you for your question. As you mentioned, encouraging social security funds and other long-term capital into the market is an important aspect of our broader efforts to boost pension finance. Mr. Liao just provided an update on the oversight of the national social security fund. The MOHRSS, in collaboration with relevant departments, has been actively working to improve the investment policies and regulatory frameworks for the national social security fund, basic pension insurance fund, and enterprise annuity funds. We are working to continuously expand market-based investment operations, strengthen investment management standards, and steadily enhance fund preservation and appreciation. This approach not only strengthens the pension insurance system's capacity for self-sustainability and self-balancing, but also provides important long- and medium-term capital resources for the healthy development of the capital market.

Security is always our top priority as we advance market-oriented investment operations for social security funds. Moving forward, while ensuring fund safety, we will focus more on medium- to long-term returns of the funds by adhering to principles of standardized, prudent, professional, and market-oriented operations. We will strengthen long-cycle assessment mechanisms, continuously refine investment policies for the national social security fund, basic pension insurance fund, and enterprise annuity funds, enhance investment oversight systems, and promote steady investment returns. Through scientifically sound asset allocation and prudent investment strategies, we can preserve and grow the value of social security funds. Thank you.

Securities Daily:

Last year, the central bank introduced two capital market support tools. The market has been closely following their implementation. The PBC and CSRC recently held a joint symposium. What is the latest progress on this work? Thank you.

Zou Lan:

Thank you for your question. Since 2024, the PBC has implemented multiple measures to create favorable liquidity conditions for financial markets. We have comprehensively utilized various monetary policy tools, including reserve requirement ratios (RRR), re-lending and re-discount facilities, and open market operations. We have also innovatively launched longer-term outright reverse repurchase operations to meet the banking system's liquidity needs. Last year, we reduced the statutory reserve requirement ratio twice by a total of 1 percentage point and cut the central bank's policy interest rates twice by a total of 0.3 percentage point. These were the largest adjustments in recent years. These policy measures have played an important role in ensuring stable financial market operations.

To support the stable development of the capital market, we have also introduced two innovative tools: the swap facility for securities, fund and insurance companies, and the stock buyback and increased holdings re-lending facility. Following market-oriented and law-based principles, these tools aim to enhance the financing and investment capabilities of listed companies and institutional investors. The goal is to better support these institutions in their roles in market value management and maintaining market stability, thus strengthening the intrinsic stability of the capital market. At the same time, these two tools represent an expansion and new exploration of the central bank's financial stability mandate. As Mr. Wu mentioned just now, we will also explore establishing normalized institutional frameworks. At present, both tools are being implemented smoothly, playing an important role in maintaining stable capital market operations and boosting market confidence.

Among them, the swap facility for securities, fund and insurance companies has conducted two operations, totaling 105 billion yuan. The 50 billion yuan from the October operation last year has been fully utilized for financing stock purchases and increasing holdings. The 55 billion yuan from the January operation this year is now available for industry institutions to use at any time for financing stock purchases and increasing holdings. With multi-faceted policy support, securities companies have significantly expanded their proprietary stock investment portfolios. After several months of fine-tuning, all operational processes for these tools have become fully streamlined. With ample policy space and the momentum generated by the implementation plan, both the volume of transactions and response speed are expected to improve significantly.

Loans for share repurchase and shareholding increase have been widely welcomed by the market as another tool. In order to further leverage the role of policy tools in stabilizing the capital market, the PBC has continuously optimized the policy arrangements for the re-lending for share repurchase and shareholding increase in response to market concerns. In particular, for core policy elements such as loan ratios and terms, the requirement for self-owned capital ratio when applying for loans has been reduced from 30% to 10% and the maximum loan term has been extended from 1 year to 3 years. Banks are encouraged to issue credit loans to facilitate their lending operations and fully meet the financing needs of listed companies for market value management. A few days ago, the PBC and the CSRC held a symposium, where financial institutions generally believed that listed companies that actively engage in market value management are high-quality enterprises with sound operational performance and management teams that have full confidence in their own business development. They believe that the loans for share repurchase and shareholding increase are expected to become a new business growth point for the banking industry. Financial institutions will take the implementation of policy tools as an opportunity to fully leverage their customer and branch network advantages, continuously improve comprehensive financial services for listed companies and major shareholders, and achieve joint development of banks and enterprises. As of now, financial institutions have reached cooperation intentions with nearly 800 listed companies and major shareholders. More than 300 listed companies have publicly disclosed their plans to apply for loans for share repurchase and shareholding increases, with an upper limit of more than 60 billion yuan. Among them, companies with a market value of over 10 billion yuan account for more than 40%. Loans are priced according to the principle of preferential interest rates, with an average interest rate of around 2%.

In the next stage, the PBC will work with relevant departments to continuously optimize related policies based on previous practical experience and business development, improve the convenience of tool use, and advance the expansion of coverage and scale of tools at an appropriate time. Relevant enterprises and institutions can obtain sufficient medium- and long-term funds to increase investment as needed at any time. Thank you.

Shou Xiaoli:

The last two questions.

China Banking and Insurance News:

The NFRA previously promoted a pilot reform of long-term investment of insurance funds. How is the progress? And what are the further considerations for the next step? In addition, investors are very concerned about the real estate market. How is the progress of the urban real estate financing coordination mechanism? Thank you.

Xiao Yuanqi:

Thank you very much for your questions. You actually asked two questions. The first question is about the pilot reform of long-term investment of insurance funds. In October 2023, the NFRA granted approval for China Life Insurance and New China Life Insurance to pilot the establishment of securities investment funds, by raising insurance funds with a scale of 50 billion yuan, which will be invested in the stock market and held for the long term. Since the establishment of the fund over a year ago, it has been operating relatively smoothly, achieving a comprehensive and dynamic balance of profitability, safety, and liquidity. It is understood that the fund's returns are quite substantial, and the fund continues to be optimistic about the investment value of the stock market. Currently, other insurance companies are also actively applying to participate in this pilot. We have conducted research on the first batch of pilots, which is the 50 billion yuan investment raised by China Life Insurance and New China Life Insurance mentioned earlier, and believe it is very necessary, so we will fully support it. The second batch of pilots will be more flexible in mechanism than the first batch. Funds can be initiated and established by a single insurance company or jointly initiated and established by two or more insurance companies. The scale of the second batch of pilots is now set at 100 billion yuan. We plan to approve 50 billion yuan in the coming days, before the Spring Festival, which will be in place immediately for investment in the stock market. Subsequently, the number of insurance companies participating in the pilot program and the scale of the funds will be gradually expanded according to the willingness and needs of the insurance companies. This is the answer to your first question.

Concerning the second question, you just mentioned the real estate financing coordination mechanism, which was established at the beginning of 2024, and so far has delivered remarkable results. Here is some data. At the end of last year, the loan amount for commercial bank real estate "white list" projects reached 5.03 trillion yuan, exceeding the original expected target of 4 trillion yuan. As of Jan. 22, an additional 570 billion yuan in loans has been approved, bringing the total loan amount for real estate "white list" projects to 5.6 trillion yuan. The "white list" mechanism has provided sufficient and stable funding guarantees for the construction and delivery of real estate projects. Under this mechanism, we have adopted a clear principle: all eligible projects will be included in the whitelist and approved for loans as promptly as possible. In other words, every real estate project that meets the "5+5" criteria should be added to the whitelist for management, ensuring full inclusion of all eligible projects. Once the project is included in the "white list", banks will establish a green channel to actively provide financing support, ensuring loans are granted to all those eligible. Moreover, banks are also allowed to issue full loan amount in advance to the project fund supervision account opened by the real estate project company, enabling funding to be provided as early as possible, thereby ensuring that the projects can start construction early and proceed without interruption. So far, the real estate financing coordination mechanism has supported the construction and delivery of 14 million housing units. Recently, there have been positive changes in the real estate market. The real estate financing coordination mechanism has played an important and positive role in protecting the legitimate rights and interests of home buyers, stabilizing the real estate market, and promoting sustained and healthy development of the real estate market. In the future, we will continue to leverage this mechanism, guide financial institutions to stabilize financing support for the real estate sector, utilize the unique advantages of different financing tools and create a combined effect, thereby improving precision, timeliness, and effectiveness. At the same time, we will actively explore and summarize the experiences and good practices of the "white list" mechanism, and quickly optimize the relevant real estate financing system to adapt to and promote high-quality development of the real estate sector. Thank you.

Shou Xiaoli:

The last question, please.

Phoenix Satellite Television:

Foreign capital is an important force of medium and long-term funds. What are the arrangements for attracting and facilitating foreign investment in the A-share market in the next stage? Thank you.

Wu Qing:

Thank you for your question. Opening to the outside world is a basic state policy that China has long adhered to, and a defining feature of Chinese modernization. In recent years, the CSRC has resolutely implemented the arrangements of the state on financial opening up, continuously improved policies for foreign investment in the capital market, and advanced two-way opening up in terms of markets, products, and institutions. We have continuously relaxed access requirements for qualified foreign institutional investors (QFIIs) and expanded their investment scope. We have optimized the filing-based system for overseas listings, improved the coordination mechanism for domestic and overseas listings, and expanded cross-border connectivity in the capital markets in an orderly manner. Our efforts have facilitated the inclusion of A-shares in major indices worldwide such as MSCI, FTSE Russell, and S&P Dow Jones. We have also supported more foreign financial institutions in operating businesses in China. To date, 26 foreign-controlled or wholly foreign-owned financial institutions, such as securities companies, fund management companies, and futures companies, have been approved and established. Overall, as foreign investment in the A-share market becomes increasingly convenient and stable, a favorable ecosystem for foreign participation in China's capital market is taking shape.

In terms of foreign participation in A-share market investments and transactions, as of the end of last year, 866 QFIIs had obtained investment qualifications, and foreign investors held approximately 3 trillion yuan worth of A-shares through QFII, Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. It is fair to say that foreign capital is currently one of the important sources of funds in the A-share market. A considerable part of foreign capital is medium- and long-term funds, including many globally renowned sovereign wealth funds, pension funds, public offering funds, and commercial insurance funds. These investors have actively participated in the A-share market for many years and contributed to the stable development of the capital market.

I would like to emphasize that the CSRC remains committed to market-oriented, law-based, and internationalized reforms, while ensuring the unity of reform and opening up. We are dedicated to creating a beneficial and facilitative investment environment for international investors whilst supporting various foreign organizations' involvement in the A-share market. China's capital market will only open wider to the rest of the world. In the next stage, we will resolutely implement the guiding principles of the third plenary session of the 20th Central Committee of the Communist Party of China and the central financial work conference, especially the arrangements on steadily expanding financial opening up. We will further enhance the stability, transparency, and predictability of our policies, further facilitate cross-border investment and financing, and enhance the attractiveness of A-share investment. We will, first, further optimize the QFII system and improve the capital market connectivity mechanisms; second, enrich cross-border investment and risk management products; third, continuously strengthen communication with international investors, promote the resolution of foreign investment institutions' concerns and reasonable demands, and further refine relevant mechanisms; fourth, enhance regulatory capacities under the condition of opening up the capital market further to maintain stable market operation.

China has bright economic prospects and immense capital market potential. We welcome more foreign investment in the A-share market to share in the opportunities presented by China's economic and capital market reform and development. Thank you.

Shou Xiaoli:

Thank you to all our speakers and to all the journalists for your participation. This concludes today's press conference. Goodbye, everyone.

Translated and edited by Liu Caiyi, Yan Xiaoqing, Yang Xi, Xu Kailin, You Jiaxin, Dong Qingpei, Zhang Jiaqi, Yuan Fang, Liu Qiang, Gong Yingchun, Ma Yujia, Huang Shan, Li Huiru, Wang Qian, Wang Yanfang, David Ball, Jay Birbeck and Tudor Bentley Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Kang Yi, commissioner of the National Bureau of Statistics (NBS) 

Mr. Fu Linghui, spokesperson of the NBS and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 17, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on economic data. Today, we have invited Mr. Kang Yi, commissioner of the National Bureau of Statistics (NBS), and Mr. Fu Linghui, spokesperson of the NBS and director general of the Department of Comprehensive Statistics of the NBS, to brief you on the performance of the national economy in 2024 and address your questions.

Now, I'll give the floor to Mr. Kang for his introduction.

Kang Yi:

Welcome to this press conference, and thank you for your longstanding interest in and support for statistical work. The Spring Festival is just around the corner, and I would like to start by extending my early wishes for the new year.

Next, I will provide an overview of the key indicators of China’s economic performance in 2024 followed by addressing your questions.

In 2024, the economy maintained steady progress, and the main development goals were successfully achieved.

In 2024, in face of the complex and severe environment with increasing external pressures and internal difficulties, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of seeking progress while maintaining stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to foster a new pattern of development, and took solid steps in pursuit of high-quality development. As a result, the national economy was generally stable with steady progress and new achievements were made in high-quality development. Particularly, with a package of incremental policies being timely rolled out, social confidence was effectively bolstered and the economy recovered remarkably. The major targets and tasks of economic and social development were achieved.

According to preliminary estimates, the gross domestic product (GDP) was 134,908.4 billion yuan in 2024, an increase of 5.0% over the previous year at constant prices. By industries, the value added of the primary industry was 9,141.4 billion yuan, up by 3.5% over last year, that of the secondary industry was 49,208.7 billion yuan, up by 5.3%, and that of the tertiary industry was 76,558.3 billion yuan, up by 5.0%. In terms of quarters, GDP increased by 5.3% in the first quarter year on year, by 4.7% in the second quarter, 4.6% in the third quarter and 5.4% in the fourth quarter. GDP for the fourth quarter increased by 1.6% quarter on quarter.

First, grain output reached a new level and production of animal husbandry grew steadily.

The total output of grain in 2024 was 706.50 million metric tons, an increase of 11.09 million metric tons over the previous year, or up by 1.6%. Of this total, the output of summer grain was 149.89 million metric tons, up by 2.6%; that of early rice was 28.17 million metric tons, down by 0.6%; and that of autumn grain reached 528.43 million metric tons, up by 1.4%. By species, the output of wheat was 140.10 million metric tons, up by 2.6%; that of corn was 294.92 million metric tons, up by 2.1%; that of rice was 207.53 million metric tons, up by 0.5%; and that of soybeans was 20.65 million metric tons, down by 0.9%. The total output of pork, beef, mutton and poultry in 2024 was 96.63 million metric tons, up by 0.2% over the previous year. Of this, the output of pork was 57.06 million metric tons, down by 1.5%; that of beef was 7.79 million metric tons, up by 3.5%; that of mutton was 5.18 million metric tons, down by 2.5%; and that of poultry was 26.60 million metric tons, up by 3.8%. The production of milk reached 40.79 million metric tons, down by 2.8%; and that of eggs was 35.88 million metric tons, up by 0.7%. In 2024, 702.56 million pigs were slaughtered, down by 3.3%, and 427.43 million pigs were registered in stock at the end of the year, down by 1.6%.

Second, industrial production saw good growth momentum, and equipment manufacturing and high-tech manufacturing grew quickly.

In 2024, the total value added of industrial enterprises above designated size increased by 5.8% over the previous year. In terms of sectors, the value added of mining was up by 3.1%, that of manufacturing was up by 6.1%, and that of production and supply of electricity, thermal power, gas and water was up by 5.3%. The value added of equipment manufacturing went up by 7.7%, and that of high-tech manufacturing up by 8.9%, which were 1.9 percentage points and 3.1 percentage points faster than that of industrial enterprises above designated size, respectively. In terms of ownership, the value added of state holding enterprises grew by 4.2%, that of share-holding enterprises was up by 6.1%, that of enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan increased by 4.0%, and that of private enterprises was up by 5.3%. By products, the production of new energy vehicles, integrated circuits and industrial robots grew by 38.7%, 22.2% and 14.2%, respectively. In the fourth quarter, the total value added of industrial enterprises above designated size grew by 5.7% year on year. In December, the total value added of industrial enterprises above designated size grew by 6.2% year on year, or up by 0.64% month on month. In the first 11 months, the total profits made by industrial enterprises above designated size were 6,667.5 billion yuan, down by 4.7% year on year.

Kang Yi:

Third, the service sector registered continued growth, and modern services enjoyed sound development.

The value added of the service sector went up by 5.0% over the previous year. The value added of information transmission, software and information technology services grew by 10.9%, leasing and business services grew by 10.4%, transportation, storage and postal services grew by 7.0%, accommodation and catering grew by 6.4%, finance grew by 5.6%, and wholesale and retail grew by 5.5%. In the fourth quarter, the value added of service sector went up by 5.8% year on year. In December, the Index of Services Production went up by 6.5% year on year, and specifically, that of leasing and business services grew by 9.5%, finance grew by 9.3%, information transmission, software and information technology services grew by 8.8%, and transportation, storage and postal services grew by and 8.3%. In the first 11 months, the business revenue of service enterprises above designated size grew by 8.2% year on year. Of this, the business revenue of leasing and business services grew by 11.5%, information transmission, software and information technology services, and transportation grew by 9.5%, storage and postal services grew by 8.3%.

Fourth, market sales continued growing and online sales were active.

In 2024, the total retail sales of consumer goods reached 48,789.5 billion yuan, up by 3.5% over the previous year. In terms of different areas, retail sales in urban areas reached 42,116.6 billion yuan, up by 3.4%; and retail sales in rural areas stood at 6,672.9 billion yuan, up by 4.3%. Grouped by consumption patterns, the retail sales of goods were 43,217.7 billion yuan, up by 3.2%; and the income of catering was 5,571.8 billion yuan, up by 5.3%. The sales of basic living goods and certain upgraded goods witnessed good growth momentum. The retail sales of household appliances and audio-video equipment grew by 12.3%, sports and recreational articles grew by 11.1%, communication equipment grew by 9.9%, and grain, oil and food by enterprises above designated size grew by 9.9%. National online retail sales reached 15,522.5 billion yuan, up by 7.2% over the previous year. Specifically, the online retail sales of physical goods were 13,081.6 billion yuan, up by 6.5%, accounting for 26.8% of the total retail sales of consumer goods. In the fourth quarter, the total retail sales of consumer goods went up by 3.8% year on year. In December, the total retail sales of consumer goods went up by 3.7% year on year, or up by 0.12% month on month. The retail sales of services in 2024 grew by 6.2% over the previous year.

Fifth, investment in fixed assets scaled up, and investment in high-tech industries grew rapidly.

In 2024, investment in fixed assets (excluding rural households) reached 51,437.4 billion yuan, up by 3.2% over the previous year; and with real estate development investment deducted, the investment in fixed assets was up by 7.2%. Specifically, investment in infrastructure increased by 4.4%, manufacturing went up by 9.2% and real estate development was down by 10.6%. The floor space of newly-built commercial buildings sold was 973.85 million square meters, down by 12.9%; and the total sales of newly-built commercial buildings were 9,675.0 billion yuan, down by 17.1%. By industry, investment in the primary industry went up by 2.6%; that in the secondary industry up by 12.0%; and that in the tertiary industry down by 1.1%. Private investment went down by 0.1%; and with investment in real estate development deducted, private investment grew by 6.0%. Investment in high-tech industries grew by 8.0%. Specifically, investment in high-tech manufacturing and high-tech services grew by 7.0% and 10.2%, respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicles and equipment and manufacturing of computers and office devices grew by 39.5% and 7.1%, respectively. In terms of high-tech services, investment in professional technical services and in services for the transformation of sci-tech achievements went up by 30.3% and 11.4%, respectively. In December, investment in fixed assets (excluding rural households) grew by 0.33% month on month.

Sixth, imports and exports of goods grew quickly and the trade structure continued to be optimized.

In 2024, the total value of imports and exports of goods was 43,846.8 billion yuan, an increase of 5.0% over the previous year. The total value of exports was 25,454.5 billion yuan, up by 7.1%; and the total value of imports was 18,392.3 billion yuan, up by 2.3%. Imports and exports with Belt and Road partner countries grew by 6.4%, accounting for 50.3% of total imports and exports. The exports of mechanical and electrical products grew by 8.7%, accounting for 59.4% of total exports. In December, the total value of imports and exports of goods was 4,067.0 billion yuan, up by 6.8% year on year. Specifically, the total value of exports was 2,409.9 billion yuan, up by 10.9%; and the total value of imports was 1,657.0 billion yuan, up by 1.3%.

Seventh, consumer prices were generally stable and the core consumer price index (CPI) went up slightly.

In 2024, the CPI increased by 0.2% over the previous year. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 0.1%; clothing up by 1.4%; housing up by 0.1%; articles and services for daily use up by 0.5%; transportation and communication down by 1.9%; education, culture and recreation up by 1.5%; medical services and health care up by 1.3%; and other articles and services up by 3.8%. In terms of food, tobacco and alcohol prices, prices for fresh fruits went down by 3.5%, grain down by 0.1%, fresh vegetables up by 5.0%, and pork up by 7.7%. Core CPI excluding the prices of food and energy went up by 0.5%. In December, the CPI went up by 0.1% year on year, maintaining the same level month on month. In 2024, the producer prices and purchasing prices for industrial products both went down by 2.2% over the previous year; in December, the producer prices and purchasing prices for industrial products both went down by 2.3% year on year, or down by 0.1% month on month.

Eighth, employment was generally stable and the urban surveyed unemployment rate went down.

In 2024, the urban surveyed unemployment rate averaged 5.1%, 0.1 percentage point lower than that of the previous year. In December, the urban surveyed unemployment rate was 5.1%. The surveyed unemployment rate of population with local household registration was 5.3% and that of population with non-local household registration was 4.6%, of which the rate of population with non-local agricultural household registration was 4.5%. The urban surveyed unemployment rate in 31 major cities was 5.0%. Employees of enterprises worked 49.0 hours per week on average. In 2024, the number of rural migrant workers totaled 299.73 million, which was 2.20 million more than the previous year, or up by 0.7%. Specifically, local migrant workers totaled 121.02 million, up by 0.1%; and outbound migrant workers totaled 178.71 million, up by 1.2%.

Ninth, residents' incomes continued to increase and the incomes of rural residents grew faster than that of urban residents.

In 2024, the nationwide per capita disposable income of residents was 41,314 yuan, a nominal increase of 5.3% over that of the previous year, or a real growth of 5.1% after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 54,188 yuan, a nominal growth of 4.6% over the previous year or a real growth of 4.4% after deducting price factors. The per capita disposable income of rural households was 23,119 yuan, a nominal growth of 6.6% over the previous year or a real growth of 6.3% after deducting price factors. The median of the nationwide per capita disposable income nationwide was 34,707 yuan, a nominal increase of 5.1% over the previous year. Grouped by income quintile, the per capita disposable income of the low-income group reached 9,542 yuan, the lower-middle-income group 21,608 yuan, the middle-income group 33,925 yuan, the upper-middle-income group 53,359 yuan, and the high-income group 98,809 yuan. In 2024, the nationwide per capita consumption expenditure was 28,227 yuan, a nominal growth of 5.3% over the previous year or a real growth of 5.1% after deducting price factors. Per capita consumption expenditure on food, tobacco and alcohol accounted for 29.8% of the per capita consumption expenditure (Engel’s coefficient), maintaining the same level compared with that of the previous year. Per capita consumption expenditure on services went up by 7.4%, accounting for 46.1% of the per capita consumption expenditure, which was 0.9 percentage point higher than that of the previous year.

Tenth, total population declined and the urbanization rate continued to rise.

By the end of 2024, the national population was 1,408.28 million (including the population of 31 provinces, autonomous regions and municipalities and servicemen, but excluding residents of Hong Kong, Macao and Taiwan and foreigners living in the 31 provinces, autonomous regions and municipalities), a decrease of 1.39 million over the end of 2023. In 2024, the number of births was 9.54 million with a birth rate of 6.77 per 1,000; the number of deaths was 10.93 million with a mortality rate of 7.76 per 1,000; and the natural population growth rate was minus 0.99 per 1,000. In terms of gender, the male population was 719.09 million, and the female population was 689.19 million; and the sex ratio of the total population was 104.34 males to every 100 females. In terms of age structure, the population aged 16 to 59 was 857.98 million, accounting for 60.9% of the total population; and the population aged 60 and over was 310.31 million, accounting for 22.0% of the total population. Specifically, the population aged 65 and over was 220.23 million, accounting for 15.6% of the total population. In terms of urban-rural structure, the number of permanent residents in urban areas was 943.50 million, an increase of 10.83 million over the end of the previous year; and the number of permanent residents in rural areas was 464.78 million, a decrease of 12.22 million. The share of urban population to the total population (urbanization rate) was 67.00%, 0.84 percentage point higher than that at the end of the previous year.

Generally speaking, the national economy in 2024 was stable overall with steady progress, high-quality development advanced steadily, and new solid strides were taken in building Chinese modernization. However, we must be aware that adverse effects created by the external environment are increasing, domestic demand is insufficient, some enterprises have difficulties in production and operation, and the economy is still facing difficulties and challenges. In the next stage, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, fully implement the guiding principles of the 20th CPC National Congress, and the second and third plenary sessions of the 20th CPC Central Committee, adhere to the arrangements made by the Central Economic Work Conference and adhere to the general principle of pursuing progress while ensuring stability. We must fully and faithfully apply the new development philosophy on all fronts, accelerate efforts to foster a new pattern of development and take solid steps in pursuing high-quality development. We must further deepen reform and opening up, implement more proactive and effective macro policies, expand domestic demand, promote integrated advancements in technological and industrial innovation, stabilize market expectations and boost internal vitality, so as to ensure a continued economic recovery and development.

That's all for my introduction.

Shou Xiaoli:

Thank you, Mr. Kang, for your introduction. The floor is now open for questions.

National Business Daily:

We know that the global economy in 2024 remained in a phase of cyclical adjustment, with rising protectionism and persistent geopolitical risks. Faced with multiple challenges, how did China’s economy perform overall? And were the key targets and tasks for last year successfully achieved? Thank you.

Kang Yi:

Thank you for your questions. The year 2024 marked the 75th anniversary of the founding of the People’s Republic of China and was a critical year for achieving the goals and tasks set forth in the 14th Five-Year Plan (2021-2025). Over the past year, facing the complicated and challenging environment of mounting external pressures and internal difficulties, the CPC Central Committee with Comrade Xi Jinping at its core united and led the Chinese people of all ethnic groups across the country to calmly respond to changes and take a holistic approach. As a result, the national economy in 2024 was generally stable with steady progress and high-quality development was steadily advanced. The key goals and tasks for 2024 were successfully accomplished, and new solid strides were taken in building Chinese modernization. Looking back at the extraordinary journey of 2024, I would like to summarize the year's economic performance with five hard-won achievements.

First, facing mounting external pressures and internal difficulties, China's GDP reached new heights, which was a hard-won achievement. In 2024, the international environment was complex, the momentum for global economic growth was weak, geopolitical conflicts became more acute, and trade protectionism intensified. Domestically, effective demand was insufficient, the transformation from old growth drivers to new ones was accompanied by growing pains, and some industries and enterprises faced issues in their production and operation. Facing such challenges, China's economy withstood the pressure and overcame difficulties, making new breakthroughs in its GDP and new contributions to global development. In 2024, China's GDP reached 134.9 trillion yuan, passing the 130 trillion yuan mark for the first time, increasing by 5% compared to the previous year. China remained the world's second largest economy. Globally, China's economic growth rate of 5% ranked among the top in the world's major economies and continued to be an important driver of global economic growth.

Second, the timely introduction of a package of policies effectively boosted social confidence, particularly promoting a marked economic recovery, which was a hard-won achievement. Due to various factors, China's economic growth slowed in the second and third quarters of 2024, facing considerable downward economic pressure. In response, the CPC Central Committee strengthened macro regulation in light of the changing conditions. At the meeting held by the Political Bureau of the CPC Central Committee on Sept. 26, 2024, a package of incremental policies was rolled out, greatly boosting confidence and stimulating vitality, which promoted economic recovery. In the fourth quarter of 2024, China's GDP grew by 5.4% year on year, with the growth rate 0.8 percentage point higher than the third quarter. The growth rates of the total value added of industrial enterprises above designated size, the value added of service sector, and the total retail sales of consumer goods increased by 0.7, 1.0 and 1.1 percentage points, respectively. The manufacturing PMI began to return to the expansion range in October, and the non-manufacturing business activity index continued to increase steadily, reaching 52.2% in December.

Third, during the process of overcoming economic challenges, new progress has been made in high-quality development, which was a hard-won achievement. China's economy is at a critical juncture of transformation and upgrading. Faced with difficulties and challenges, all sectors remain committed to achieving the primary task of high-quality development, adjusting measures to local conditions to develop new quality productive forces, promoting new growth drivers to build momentum, renewing and upgrading traditional driving forces, optimizing the economic structure and renewing driving forces. We have optimized and upgraded the industrial structure. In 2024, the added value of high-tech manufacturing and equipment manufacturing above designated size accounted for 16.3% and 34.6%, respectively, of the added value of industries above designated size, which represented increases of 0.6 and 1.0 percentage points from the previous year. New-type urbanization is also steadily advancing, with urbanization of the permanent population reaching 67.00% at the end of the year, up by 0.84 percentage point compared to the end of the previous year. The transition to a green and low-carbon economy is also accelerating. According to preliminary estimates, the proportion of non-fossil energy consumption in the total energy consumption in 2024 increased by 1.8 percentage points compared to the previous year. The results of high-level opening up to the outside world are also very clear, with the total value of imports and exports of goods reaching 43.8 trillion yuan, setting a new record.

Fourth, employment stability and income growth have been strengthened, and people’s living standards have been steadily guaranteed and improved, which was a hard-won achievement. Enabling people to lead happy lives is the fundamental goal of our development and our top priority. In 2024, various regions and departments thoroughly implemented measures to improve people's lives, with greater efforts to stabilize employment and promote income growth. The national surveyed urban unemployment rate averaged 5.1% for the year, down 0.1 percentage point from the previous year, and the per capita disposable income of residents increased by 5.1% in real terms, in line with economic growth. The scale of employment for people lifted out of poverty has remained stable at over 30 million for four consecutive years, and new progress has been made in education, health care, elderly care and child care.

Fifth, development and security have been coordinated, food and energy security have been strengthened, and risks have been effectively defused in key areas, which was a hard-won achievement. In 2024, China's grain output reached a historic high, surpassing the new milestone of 700 million metric tons for the first time. Total primary energy production has continued to increase, and the energy supply has been guaranteed. We optimized policies related to real estate, steadily promoted the completion of housing projects, and explored the establishment of a new model for real estate development. Since September, the real estate market has shown positive changes. In the fourth quarter, the sales area and sales volume of newly built commercial housing increased by 0.5% and 1.0% year on year, respectively, reversing the previous downward trend. A series of targeted measures have been introduced and proven effective in addressing key areas of risk such as local government debt as well as small- and medium-sized financial institutions, effectively consolidating the foundation for national security and development.

Overall, in 2024, China's economy overcame various difficulties and challenges brought by the complex internal and external environment, successfully achieved the main expected goals and tasks, promoted effective qualitative improvements and reasonable quantitative economic growth, and achieved substantial high-quality development. The achievements were truly hard-won. These are the results of the Party leading the entire nation in joint efforts, reflecting the country's economic base, numerous advantages, strong resilience and significant potential, and laying a solid foundation for the high-quality completion of the goals and tasks in the 14th Five-Year Plan. Of course, we must also clearly recognize that the adverse effects brought by the external environment are deepening, domestic demand is insufficient, some enterprises are facing difficulties in production and operation, employment and income growth are under pressure, many risks and potential dangers remain, and much effort is required to promote economic recovery and improvement. In the next stage, we must follow the decisions and arrangements of the Central Economic Work Conference, face difficulties, strengthen confidence, prioritize action and transform various favorable factors into tangible development achievements, continuously promoting sustained economic improvement.

Thank you.

TASS:

Since last September, China has introduced a series of policies, including those promoting consumption and investment. How have these policies been reflected in the economic data? And what role did they play in achieving the annual goals and tasks? Thank you.

Kang Yi:

Thank you for your questions. In 2024, the course of China's economic development has been extraordinary. The first quarter started well, but in the second and third quarters, economic pressures increased, and some new situations and problems emerged. Faced with these new situations and problems, the CPC Central Committee with Comrade Xi Jinping at its core assessed the situation and took decisive action. On Sept. 26, the meeting held by the Political Bureau of the CPC Central Committee made significant arrangements to effectively implement existing policies and introduce new policies, greatly boosting confidence, improving expectations and stimulating development momentum. The economy showed a significant rebound in the fourth quarter. According to preliminary data, GDP in the fourth quarter grew by 5.4% year on year, accelerating by 0.8 percentage point compared to the third quarter, making a decisive contribution to achieving the expected annual economic growth target. According to the performance of key indicators such as production, demand, prices, incomes and expectations, positive changes have occurred in all aspects.

First, consumption and investment are accelerating. In terms of consumption, the total retail sales of consumer goods in the fourth quarter increased by 3.8% year on year, 1.1 percentage points faster than that in the third quarter, which recorded only 2.7% growth. Consumer goods trade-in policies have driven an increase, with retail sales of household appliances and audiovisual equipment, furniture, automobiles, and building as well as decoration materials by units above the designated size in the fourth quarter collectively having boosted the total retail sales of consumer goods by around 1 percentage point. In terms of investment, driven by the "two major" projects and large-scale equipment renewals, infrastructure investment in 2024 grew by 4.4%, accelerating by 0.3 percentage point compared to the first three quarters; and investment in equipment and tools procurement grew by 15.7%, accelerating by 9.1 percentage points compared to the previous year, driving total investment growth by 2.2 percentage points.

Second, the industrial and service sectors have rebounded significantly. The expansion of market demand has promoted increased industrial production and accelerated the growth of the service industry. In terms of the industrial sector, the value-added of industries above designated size in the fourth quarter increased by 5.7% year on year, 0.7 percentage point faster than that in the third quarter. Among them, the value added of equipment manufacturing enterprises above designated size increased by 8.1% due to equipment renewal policies, accelerating by 1.1 percentage points compared to the third quarter. Capacity utilization is also improving, with the capacity utilization rate of industrial enterprises above designated size reaching 76.2% in the fourth quarter, increasing by 1.1 percentage points from the third quarter. In terms of the service industry, the value added in the fourth quarter increased by 5.8% year on year, 1 percentage point faster than the third quarter. Among them, the value added of wholesale and retail trade increased by 5.7%, transportation, storage and postal services by 7.9%, and financial services by 6.5%, accelerating by 0.7, 1.3 and 0.3 percentage points, respectively. The value added of the real estate industry turned from a 1.2% decline in the third quarter to a 2% increase, shifting from negative to positive.

Third, the price situation has shown positive changes. Market demand recovered, driving up prices. In terms of consumer prices, CPI growth rate in the fourth quarter declined to some extent, mainly due to the decrease in food prices. The core CPI, which better reflects the supply and demand relationship, has continuously risen. Since the fourth quarter, the core CPI, excluding food and energy, has increased for three months consecutively, rising 0.4% in December. Regarding prices of industrial products, improvements in industrial production and sales have also led to price stabilization. The PPI decline narrowed for two consecutive months in November and December, by 0.4 and 0.2 percentage points, respectively, compared to the previous month.

Fourth, business, resident and government incomes have been improving. The economic recovery has improved the income situation of businesses, residents and the government. In 2024, the national per capita disposable income of residents increased by 5.1% in real terms compared to the previous year, accelerating by 0.2 percentage point compared to the first three quarters. The profitability of enterprises is also improving slightly. In October and November, the year on year decline in total profits of industrial enterprises above designated size continued to narrow, decreasing by 17.1 and 2.7 percentage points, respectively, compared to the previous month. Fiscal revenue has also gradually been improving. Since September, the growth rate of fiscal revenue has turned positive, and improved month by month in October and November.

Fifth, market activity has been increasing. The combined effects of policies continue to be released, resulting in increased activity in the stock and real-estate markets, an accelerated growth in freight volume, greater money supply, and improved momentum of economic development. In the fourth quarter, the sales area and sales value of newly built commercial housing achieved positive year-on-year growth; and the trading volume and trading value of stocks in the Shanghai and Shenzhen markets increased by 1.1 times and 1.6 times, respectively, compared to the third quarter. The annual freight volume increased by 3.9% compared to the previous year, with the growth rate accelerating by 0.6 percentage point compared to the first three quarters. At the end of December, the broad money (M2) balance increased by 7.3% year on year, accelerating by 0.5 percentage point compared to the end of September.

Sixth, market expectations have been improving. The improving economic performance has driven rising confidence across various sectors. Since the fourth quarter, the purchasing managers' index (PMI) of the manufacturing industry and the service business activity index have both remained above the 50% prosperity threshold. In December, the production and business activity expectation index of the manufacturing industry was 53.3%, and the service business activity expectation index was 57.6%, both being at relatively high levels.

Looking at the main indicators from December in particular, the economic recovery trend is more evident. In December, the value added of industrial enterprises above designated size, the index of services production, and the total retail sales of consumer goods increased year on year by 6.2%, 6.5% and 3.7%, respectively, accelerating by 0.8, 0.4 and 0.7 percentage points from the previous month. Among them, the industrial growth rate is the highest it has been in the second half of the year, the growth rate of the service industry production index is at its highest point for the year, and the production-sales ratio of industrial enterprises above designated size has also risen to a high level of 98.7%.

Overall, the package of incremental policies introduced after the meeting of the Political Bureau of the CPC Central Committee on Sept. 26 effectively stimulated development vitality, expanded market demand, boosted enterprise production, enhanced market activity and strengthened development confidence. These measures played a decisive role in the fourth quarter's economic recovery and the successful achievement of annual targets. Going forward, we will implement the guiding principles of the Central Economic Work Conference, carry out more proactive and effective macro policies, and ensure a smooth and orderly transition of relevant policies between years to provide stronger support for stable economic operations and sustained recovery.

Thank you.

CCTV:

In 2024, China's total economic output exceeded 130 trillion yuan for the first time. What does this mean, and how should we interpret these changes? Thank you.

Kang Yi:

Thanks for your questions. In 2024, China's total economic output exceeded 130 trillion yuan, marking a remarkable achievement. This signifies that China's economic strength, technological capabilities and comprehensive national power have reached a new level. This also means China's development now rests on a more solid foundation, with better conditions, stronger momentum and enhanced resilience to risks. Furthermore, it demonstrates China's new and significant contributions to global development. Let's look at the specifics:

First, this indicates China's economic foundation has become more robust. Since the 18th CPC National Congress, China's total economic output has surpassed each 10-trillion-yuan threshold approximately every one to two years. China's GDP exceeded 100 trillion yuan in 2020, surpassed 110 trillion yuan in 2021, reached 120 trillion yuan in 2022, and exceeded 130 trillion yuan in 2024. Over the past decade or so, China's economy achieved a historic leap from just over 50 trillion yuan to more than 130 trillion yuan, significantly enhancing its comprehensive national strength. In 2024, China's economic growth increment alone was equivalent to the annual economic output of a medium-sized country. The level of productive forces in our country has significantly improved, with the added value of the secondary and tertiary industries reaching 49.2 trillion yuan and 76.6 trillion yuan, respectively. China produces more than 13 million new energy vehicles and over 1.6 billion mobile phones annually, firmly maintaining its position as the world's largest manufacturing country.

Second, this signifies that China has further consolidated its advantages in its super-large market and complete industrial system. The world is experiencing profound changes unseen in a century, with increasing external instability and uncertainty. Our strong economic foundation, super-large market and complete industrial system remain our greatest sources of confidence in facing risks and challenges. In 2024, China's total retail sales of consumer goods reached 48.8 trillion yuan, and fixed asset investment amounted to 51.4 trillion yuan. The role of domestic demand as the main driving force has continued to be leveraged. China ranks first in the world in goods trade, foreign exchange reserves and manufacturing scale, and second in trade in services and the size of its domestic consumer market. Our food and energy security capabilities have been strengthened, and new infrastructure — such as 5G, computing power and energy storage — are being rapidly developed. Efforts to strengthen and fortify manufacturing supply chains are being steadily advanced, solidifying the foundation for secure development.

Third, it means that China has continued to contribute to global prosperity and development. In recent years, China's annual contribution to global economic growth has been about 30%, making it the world's largest growth engine. China has unwaveringly advanced high-level opening up, introduced more voluntary and unilateral opening-up policies, expanded a globally oriented network of high-standard free trade zones, and maintained its position as the world's second-largest import market for many consecutive years. The scale of China's goods imports reached $2.6 trillion in 2024, as its large market continued to offer new opportunities for international openness and cooperation.

At the same time, we must acknowledge that our country remains the world's largest developing country. A significant gap persists in per capita GDP compared with developed nations, while imbalances and inadequacies in development continue to be prominent issues. Achieving the long-range objectives through 2035 will require tremendous effort. We must fully and faithfully apply the new development philosophy in all areas and accelerate the creation of a new development pattern. We must always remember that high-quality development is an unwavering principle in the new era, work diligently and steadily advance toward the goal of Chinese modernization.

Thank you.

Red Star News:

In the past year, the central and local governments have introduced a series of measures to stabilize the housing market. What effects have these combined efforts had on halting and stabilizing the decline of the real estate market? How would you evaluate the outlook for the real estate market? Thank you.

Kang Yi:

Thanks for your questions. Real estate is a topic of significant public interest because it is closely linked to both economic development and improvements in people's livelihoods. In 2024, in response to the complex situation in the real estate market, the meeting of the Political Bureau of the CPC Central Committee on Sept. 26 stated that "efforts will be made to stabilize the property market and reverse its downturn." Multiple departments swiftly refined policies related to land, finance, taxation and banking. They removed restrictions on home purchases, sales and pricing, as well as the standards distinguishing ordinary from non-ordinary housing. They also lowered interest rates for housing provident fund loans, down payment requirements, existing loan rates and tax rates for home replacement purchases, collectively delivering a comprehensive policy package. Each locality has also implemented tailored policies based on its specific circumstances. The effectiveness of these policies is gradually becoming evident in several aspects.

First, market transactions have become more active. The continuous rollout of the policy package has effectively lowered the threshold for residents to purchase homes, alleviated the pressure of mortgage repayments, increased residents' willingness to buy homes, and led to an improvement in real estate sales. In the fourth quarter, both the sales area and value of newly built commercial residential properties experienced positive growth. According to sales data from 40 key monitored cities, the sales area and sales value of newly built commercial housing in December increased by 0.3% and 4.1% year on year, respectively.

Second, property prices have gradually stabilized. With the continued release of demand for first homes and improved housing supply, the supply-demand relationship has improved, leading to stabilized housing prices. In December, among 70 large- and medium-sized cities, the sales prices of newly built commercial residential properties increased month on month in 23 cities, while the prices of second-hand residential properties rose month on month in nine cities. In particular, the sales prices of newly built commercial residential properties in first-tier cities increased by 0.2% month on month, marking the first increase since June 2023. Meanwhile, the sales prices of second-hand residential properties rose by 0.3% month on month, experiencing an increase for three consecutive months. The sales prices of newly built commercial residential properties in second-tier cities shifted from a decline last month to remaining flat month on month. The month-on-month decline in the sales prices of newly built commercial residential properties in third-tier cities has continued to narrow for four consecutive months. Year-on-year declines in commercial housing prices have narrowed across cities of all tiers.

Third, market expectations have continued to improve. Thanks to the combined effects of the policies, key indicators of the real estate market are consistently improving, gradually boosting market confidence. In December, a monthly housing price survey conducted in 70 large- and medium-sized cities showed that 69.3% of surveyed industry professionals expected prices of newly built commercial housing to remain stable or increase in the next six months, up 0.8 percentage points from the previous month.

Fourth, there has also been an improvement in sectors related to real estate. The recovery of the real estate market has led to improvements in related industries. In December, the business expectation index for the construction sector increased by 1.5 percentage points compared to the previous month, marking the third consecutive month of growth. As sales of commercial housing improve, the demand for decoration and renovation is gradually increasing, leading to an uptick in the sales of furniture and building materials. In December, retail sales of furniture by enterprises above designated size rose 8.8% year on year, marking four consecutive months of growth. Building and decoration material sales increased 0.8%, posting two straight months of growth.

Overall, in recent times, the real estate market has seen an increase in positive changes due to the effects of the policy package, and market confidence is gradually being strengthened. With the effective implementation of both existing and incremental policies, the real estate market is expected to continue improving in the next phase. In the medium to long term, China's urbanization process remains incomplete, with continued potential for first-home purchases and housing improvements. Demand for safer, more comfortable, greener and smarter homes will continue to grow as new development models for the real estate market gradually take shape. This will support the real estate market's stable and healthy development.

Thank you.

Market News International:

China's CPI rose 0.2% in 2024, according to newly released data. We also noticed that December's core CPI rose slightly to 0.4%, the highest level in five months. How does the NBS view last year's inflation performance? What's your outlook for inflation in 2025, and what measures will be taken to ensure inflation meets official targets? Thank you.

Kang Yi:

These questions are about prices. Let's invite Mr. Fu to answer.

Fu Linghui:

Thank you for your questions. Pricing is indeed an issue that draws widespread attention. In 2024, the CPI showed a slight upward trend, rising 0.2% for the year, matching the growth rate of 2023. From a monthly perspective, the CPI showed slight year-on-year increases in all months except January, which saw a slight decline. When analyzing the CPI trend, it is important to examine overall data, structural changes and dynamic trends.

First, the overall CPI trend in 2024 showed structural characteristics. In 2024, CPI growth was significantly influenced by falling food and energy prices, while core CPI - excluding food and energy — remained generally stable. From a food price perspective, some regions experienced severe disruptions from extreme weather last year. However, the overall supply of foods — including grains, oils, meat, eggs and vegetables — remained sufficient, with prices staying stable and showing slight declines. In 2024, food prices decreased by 0.6% year on year, contributing to a 0.11 percentage point drop in the CPI. Edible oil, beef, mutton, eggs and fresh fruit saw price decreases ranging from 3.5% to 11.6%. In terms of energy prices, weak global economic growth last year drove international commodity prices lower, particularly crude oil, despite monthly fluctuations. This led to declining domestic energy prices. China's CPI energy component decreased 0.1% in 2024 year on year, as gasoline prices fell 0.7% and diesel 0.8%. Core CPI, a better indicator of the supply-demand relationship, stayed stable with a 0.5% year-on-year rise in 2024, while service prices grew 0.7%. Notably, starting in the fourth quarter, driven by the rebound in consumer demand, the year-on-year growth rate of core CPI has been rising month after month, experiencing small but continuous increases for three months.

Second, there's a growing number of factors that could lead to moderate CPI increases. With the synergistic effect of existing policies and a package of incremental policies, the momentum of economic recovery is strengthening, the recovery of consumer demand is accelerating, and favorable factors for a moderate price rebound are increasing. In the near term, food consumption demand is rising ahead of the Spring Festival holiday. Service consumption — including dining out, family visits and travel — is also increasing, contributing to an expected seasonal rise in the CPI. Based on preliminary January data, prices have risen steadily for vegetables, fresh fruit, airline tickets, tourism and other goods and services. The CPI is expected to show a larger year-on-year increase in January. At the same time, rising business and consumer confidence is providing additional support for a moderate increase in the CPI. In December, the expectation index for manufacturing production and business activities was 53.3%, and the business expectation index for the service sector was 57.6%. Both figures were above the threshold. The consumer confidence index rose 0.2 percentage point compared to the previous month.

The Central Economic Work Conference identified vigorously boosting consumption, improving investment efficiency, and comprehensively expanding domestic demand as the top priorities for economic work in 2025. It also, for the first time, established maintaining stable growth, stable employment and reasonable price rebounds as essential goals. With the intensified implementation of macro policies, it is expected to create a better policy support for economic growth and a reasonable rise in prices. Consequently, the CPI is expected to see a moderate rebound in 2025.

Thank you.

Dazhong Daily:

Over the past year, the central government placed great emphasis on cultivating new quality productive forces. As regions and departments have implemented various measures, what tangible results do the data show in terms of new quality productive forces driving high-quality economic development? Thank you.

Kang Yi:

Thank you for your question. Developing new quality productive forces is both an essential requirement and a key focus for promoting high-quality development. In 2024, various parties actively promoted the deep integration of technological and industrial innovation. The effort advanced industries' high-end, intelligent and green development while facilitating the transformation of technological creativity into social productivity. China's new quality productive forces have been developing steadily, injecting continuous momentum into high-quality development. Specifically, this was evident in several areas:

First, innovation capacity was further strengthened. We rapidly improved the fundamental systems and institutions supporting comprehensive innovation. We also continuously advanced the construction of major science and technology infrastructure. New progress was achieved in integrated circuits, artificial intelligence, quantum communications, aerospace and other fields. The Chang'e 6 probe achieved a historic first by collecting samples from the far side of the moon. The Meng Xiang, China's first domestically designed and built deep-ocean drilling vessel, explored the deep ocean. These achievements represent China's latest technological milestones. China's Global Innovation Index ranking for 2024 rose to 11th place, making it one of the fastest-improving economies in innovation over the past decade. Research and development investment continued to climb, with R&D intensity reaching 2.68% in 2024, an increase of 0.1 percentage point from the previous year. Basic research funding grew even faster, rising 10.5% and accounting for 6.91% of total R&D spending.

Second, emerging industries saw further expansion. Emerging industries, such as high-end equipment and AI, showed positive development trends, and new pillars of the industrial system gradually took shape. In 2024, the value added of high-tech manufacturing above designated size grew by 8.9% compared to the previous year. Notably, both aerospace equipment manufacturing and electronic and communication equipment manufacturing saw double-digit growth in value added. The continuous emergence of new market demand spurred the production of more high-quality goods. In 2024, high-end manufacturing industries saw significant growth, with the value added by smart consumer device production increasing by 10.9% year on year. Notably, the value added of smart vehicle equipment manufacturing and smart unmanned aerial vehicle manufacturing industries increased by 25.1% and 53.5%, respectively.

Third, traditional industries were further upgraded. China has been accelerating the advancement of technological transformation and equipment renewal in the industrial sector, continuously promoting the revitalization of traditional industries. In 2024, investment in technological upgrades in the manufacturing sector increased by 8% year on year, significantly faster than the growth rate of overall investment. As key areas for the optimization and upgrading of traditional industries, the raw materials industry and the level of process technology and equipment steadily improved, and the green digital transformation accelerated. In 2024, the energy consumption per unit of value added decreased year on year in major energy-consuming industries above designated size. These industries included chemicals, building materials, steel and non-ferrous metals. By the end of 2024, the numerical control rate of key processes in these raw material industries exceeded 75%, achieving the target set by the 14th Five-Year Plan ahead of schedule.

Fourth, the digital economy experienced further growth. The continuous development of digital technology, infrastructure, and resources, coupled with the digital economy's empowerment of various industries, has become a key driver and support for developing new quality productive forces. In 2024, the value added of digital product manufacturing above designated size grew significantly faster than that of industrial enterprises above designated size. The value added of the information transmission, software and information technology services industries increased by 10.9% compared to the previous year. New digital consumption models and scenarios continued to expand, driving a 6.5% increase in online retail sales of physical goods. The construction of network infrastructure, such as 5G and gigabit optical networks, steadily advanced. By the end of November 2024, China had 4.19 million 5G base stations. The first "Eastern Data and Western Computing" 400G all-optical interprovincial backbone network officially began commercial operation, creating a high-speed computing power channel.

Fifth, green development made further achievements. China continued to advance its transition to a green, low-carbon economy, achieving significant progress in new energy development. The country has established a complete, internationally competitive new energy industrial chain. The energy sector is rapidly transitioning to green energy, with clean energy sources accounting for an increasing share of power generation. In 2024, hydropower, nuclear, wind, and solar power generation in China's industrial enterprises above designated size reached 32.6% – nearly a third of the total.

In addition, China continued actively investing in future industries in 2024, with quantum technology and the low-altitude economy rapidly moving towards realization. Origin Wukong, China's independently developed third-generation superconducting quantum computer, was put into operation. The market size for humanoid robots also continued to expand, with various sectors accelerating their efforts to seize new economic development opportunities. New quality productive forces are continuously empowering high-quality development.

Thank you.

Reuters:

Could you share your outlook for China's economic development in 2025? With potential export headwinds this year, how can domestic demand, particularly consumption, be stimulated? Also, I'm interested in the analysis of potential growth rate — what's the current approximate level, and what are the trends going forward? Thank you.

Kang Yi:

Let me first address your question about the potential growth rate. The potential growth rate is a research concept that reflects economic growth capacity. Different scholars reach varying estimates based on their methods and assumptions. The consensus from recent studies by various organizations and scholars indicates that China's current potential economic growth rate remains at a medium-to-high level. Different institutions and scholars use varying methods and parameter settings, resulting in inconsistent estimates. Overall, the Chinese economy maintains a medium-high potential growth rate.

Now, let me address the outlook for 2025. China's 14th Five-Year Plan concludes in 2025. While adverse effects from external environment changes may intensify, the Chinese economy maintains stable foundations, multiple advantages, strong resilience and significant potential. The fundamental conditions and trends supporting long-term growth remain unchanged, as does the momentum for high-quality economic development. Favorable conditions continue to outweigh unfavorable factors, with timing and momentum remaining advantageous for development. We remain confident about China's economic development in 2025. This confidence is derived from the following factors:

First, there is a solid foundation for sustained economic improvement, with positive factors for economic development continuing to accumulate. In 2024, the journey of economic development was extraordinary. The economy showed a significant rebound in the fourth quarter, with market vitality and expectations steadily improving. Positive factors driving sustained economic improvement continued to accumulate, laying a solid foundation for economic growth in 2025. China is a super-large economy with substantial economic scale and market capacity. It possesses a complete industrial system and strong support capabilities. Both supply and demand can sustain the domestic economic cycle, providing fundamental support for steady, long-term development. For example, let's look at some production metrics. In 2024, more than 80,000 vehicles and 3.4 million smartphones were produced daily, with over 470 million packages delivered each day. Such figures clearly demonstrate the vibrant vitality of China's market.

Second, momentum exists for sustained economic improvement, as new growth drivers and advantages continue to strengthen. China is currently in a critical period of transitioning from old to new growth drivers. Some traditional drivers, such as real estate, are weakening, and their share of the national economy is declining. However, emerging growth drivers, particularly the digital economy, are showing robust growth. Their share continues to increase, creating new opportunities and expanding possibilities for China's development. In 2024, the real estate sector's value-added contribution to GDP was 6.3%, down 0.5 percentage points from 2023. Data for China's digital economy in 2024 has not yet been released. In 2023, the digital economy's value-added contribution reached 31.8% of GDP, up 1.3 percentage points from 2022. Of this, the share of core digital industries in GDP rose to 9.9%, a 0.5 percentage points gain from 2022. The digital economy's share will continue to grow in 2024, having already become a new engine driving China's economic development.

Third, sustained economic growth remains well-supported, as the effects of policy packages continue to strengthen. In particular, the Central Economic Work Conference diagnosed and prescribed solutions for current major issues, setting a clear direction for economic work in 2025. The policy orientation is explicit: to promote sustained economic recovery and growth while continuously raising people's living standards. In response to the complex changes in the external environment and insufficient effective domestic demand, the top priority for 2025's economic work is expanding domestic demand broadly, particularly consumer spending. This brings us to the reporter's question about boosting consumption. The Central Economic Work Conference clearly proposed special initiatives to boost consumption, strengthen the implementation of policies for large-scale equipment renewal and consumer goods trade-ins, and increase support for projects involving national strategic priorities and key security capabilities. The implementation of these policies will effectively unlock domestic demand potential, particularly consumer spending, providing stronger momentum for steady economic growth this year.

Fourth, the momentum for continued economic improvement remains strong, with deepening reform and opening up set to enhance development vitality. Reform and opening up is the source of vitality for China's contemporary development and progress, and a crucial key to keeping pace with the times. The third plenary session of the 20th CPC Central Committee proposed more than 300 reform measures. The Central Economic Work Conference explicitly called for resolutely advancing reform and expanding opening up to address deep-seated obstacles and external challenges that constrain development. The implementation of these reform measures will further liberate and develop productive forces, and stimulate and enhance economic vitality.

It is also important to note that 2025 is the final year for completing the 14th Five-Year Plan. As all sectors aim for their targets and focus on implementation, major strategic tasks and significant engineering projects will be fully realized, generating stronger momentum for economic development. China has rich experience in macroeconomic regulation, Chinese enterprises are daring and enterprising, and Chinese people are hardworking and intelligent. These factors enable us to respond to risks and challenges with greater confidence as we promote high-quality development. Next, through reforms and policies, we must fully unleash development potential, achieve high-quality completion of the 14th Five-Year Plan's goals, and lay a solid foundation for the 15th Five-Year Plan.

Thank you.

CNBC:

What changes have you observed in employment, particularly concerning young people's employment? Thank you.

Kang Yi:

Mr. Fu will address your question about employment.

Fu Linghui:

Employment remains a key public concern, serving as both a cornerstone of well-being and source of wealth. The CPC Central Committee continues to make employment stability and growth its top priority in economic and social development. Despite many economic challenges in 2024 and difficulties for some businesses, the national economy remained generally stable and made steady progress. As the economy expanded and the service industry maintained its large employment capacity, new business forms, models, and industries created more jobs, playing an important role in employment stability. Employment-first policies continued to show results, contributing to overall employment stability in 2024.

The national surveyed urban unemployment rate showed a steady decline in 2024, averaging 5.1% — down 0.1 percentage point from 2023. The national surveyed urban unemployment rate remained stable throughout 2024, registering 5.2%, 5.0%, 5.2% and 5.0% across the four quarters. The 2024 average surveyed urban unemployment rate of 5.1% was relatively low for recent years, indicating overall employment stability.

Employment among key population groups has improved. Overall employment situations have improved for migrant workers, young people, and individuals facing difficulties in securing employment. The average surveyed urban unemployment rate for rural migrant workers was 4.6% in 2024, down 0.3 percentage points from 2023. The number of migrant workers rose by 2.2 million in 2024, a 0.7% increase from 2023. As the graduation season ended in August, employment pressure on young people began to ease. The surveyed urban unemployment rate for the 16-to-24 age group, excluding students, fell 0.4 percentage points in December from November, marking the fourth consecutive monthly decline. Regarding people with employment difficulties, by the end of 2024, more than 33 million people who had been lifted out of poverty found jobs nationwide, surpassing the annual target and exceeding 30 million for the fourth consecutive year.

Over the past year, the economy indeed faced various difficulties. However, employment remained stable mainly because China's expanding GDP requires corresponding employment growth. At the same time, the service industry maintains high employment capacity and has played a crucial role in employment stability in recent years. The service industry's share of China's GDP rose to 56.7% in 2024, up 0.4 percentage points from 2023. Based on average annual employment figures, the service industry added more than 7 million workers in 2024 compared with 2023. Of this, employment rose significantly in wholesale and retail, accommodation and catering, information transmission, leasing and business services. In addition to overall economic expansion and growing service industry employment capacity, continued employment-first policies have played an important role in stabilizing employment. Last year, the CPC Central Committee and the State Council issued the Opinions on Implementing the Employment-First Strategy to Promote High-Quality and Full Employment. Various regions have implemented initiatives to promote employment through advanced manufacturing, providing important guarantees for employment stability.

It is indeed necessary to recognize that the Chinese economy is facing some challenges at present. Structural employment problems are prominent, and certain groups, such as young people, experience difficulties and pressure in finding jobs. Stabilizing employment still requires effort. The Central Economic Work Conference addressed this by highlighting the need to balance stable growth, stable employment and a reasonable recovery in prices. In the next stage, to achieve this goal, we need to place greater emphasis on promoting high-quality, full employment. We must effectively implement employment support plans for key areas, key industries, urban and rural communities, and small- and medium-sized enterprises while promoting employment for key groups to ensure overall employment stability.

Thank you.

Cover News:

My questions are about consumption. The Central Economic Work Conference emphasized the need to boost consumption substantially. What was China's overall consumption performance in 2024? What's your take on the current sluggishness in the consumer market? Will consumer market conditions improve in 2025? Thank you.

Kang Yi:

Thank you for your question. Consumer spending is indeed a widely shared concern. In 2024, regions and departments across China strengthened policies to expand domestic demand and boost consumption while stabilizing household spending. Since the fourth quarter, expanded trade-in programs for consumer goods have shown sustained positive results, leading to a clear rebound in market sales and supporting overall economic recovery. Specifically, there were several key characteristics:

First, the market size continued to expand. In 2024, total retail sales of consumer goods reached 48.8 trillion yuan, a 3.5% increase from the previous year, maintaining a leading global position. Specifically, the fourth quarter saw a 3.8% year-on-year increase, 1.1 percentage points higher than the third quarter. In terms of its contribution to economic growth, final consumption expenditure drove economic growth by 2.2 percentage points for the year. In the fourth quarter, it contributed 1.6 percentage points, up 0.2 percentage point from the third quarter.

Second, trade-in programs had a significant impact. In 2024, the central government allocated 150 billion yuan in special ultra-long treasury bonds to local governments to support consumer goods trade-in programs tailored to local conditions. Retail sales of household appliances and audiovisual equipment by units above designated size increased by 12.3% year on year, accelerating by 11.8 percentage points. Furniture sales grew by 3.6% annually, accelerating by 0.8 percentage point. Since the second half of last year, policies promoting trade-ins of consumer goods have been strengthened, leading to faster sales growth of appliances, automobiles and other goods in recent months, and significantly boosting overall consumption recovery.

Third, service consumption played a prominent role as a new driving force. The trend toward personalized, diversified and quality-oriented consumer spending was evident, with consumption patterns shifting from primarily goods to a balance between goods and services. Service consumption is also increasingly becoming a key area for optimizing and upgrading the consumption structure. In 2024, the proportion of per capita service consumption expenditure to overall per capita consumption expenditure increased by 0.9 percentage point compared to the previous year. Service retail sales grew by 6.2%, outpacing the growth rate of commodity sales. Demand for cultural tourism remained strong, information consumption boomed, and retail sales for transportation, communication and information services all maintained double-digit growth.

Fourth, new types of consumption showed potential. Online sales, instant retail and other new consumption models continued to gain momentum. In 2024, online retail sales of physical goods rose 6.5% from the previous year, driving express delivery volume to a record high. At the same time, domestically produced goods, "China Chic" products and traditional Chinese-style items gained widespread popularity. New business models such as digital cultural tourism, livestream e-commerce and online fitness services continued to emerge. Smart homes, smart wearables and other new scenarios continued to expand, demonstrating rapid growth potential. In particular, retail sales of energy-efficient and smart home appliances sustained double-digit growth rates.

Of course, we must also recognize that consumers' purchasing power and willingness to spend remain insufficient, and consumption demand indeed needs further boosting. Looking to the future, various favorable conditions are in place to sustain consumption growth. First, policies to promote consumption will continue to be strengthened. The Central Economic Work Conference further proposed a comprehensive expansion of domestic demand, which will unleash more policy effects. Second, the overall employment situation remains stable, laying a foundation for increased household income. We will intensify efforts to boost income and reduce burdens among low- and middle-income groups, helping to strengthen household spending capacity. Third, new consumption scenarios and business formats show continued expansion. Recently, many regions have seized on the "ice and snow fever" trend to promote related spending. At the same time, new growth points, such as the debut economy and silver tourism, are gradually taking shape, which will help boost consumption development. Fourth, China continues to demonstrate the advantages of its ultra-large market. The nation's population of more than 1.4 billion and increasing urbanization rates indicate massive consumption potential, providing strong support for steady consumption growth.

Next, we need to fully implement the decisions and plans of the Central Economic Work Conference and carry out special actions to boost consumption. This includes promoting income growth and reducing burdens for low- and middle-income groups. We will also work on improving consumer spending power, willingness to spend and consumption levels, while creating diverse consumption scenarios and expanding consumption of services.

Thank you.

Shou Xiaoli:

Thank you to Mr. Kang Yi and Mr. Fu Linghui, and thanks to all our media friends. Today's press conference ends here. Goodbye.

Translated and edited by Liu Caiyi, Xu Xiaoxuan, Yang Chuanli, Zhang Jiaqi, Liu Jianing, Xu Kailin, Liu Sitong, Wang Yiming, Yuan Fang, Mi Xingang, Fan Junmei, Li Huiru, Huang Shan, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.