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

Date:

March 16, 2026

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 its Department of Comprehensive Statistics. Mr. Fu will brief you on China's economic performance in the first two months of 2026 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, everyone. I will start by briefing you on the main economic indicators for the first two months of 2026 and then take your questions.

In January-February, the national economy got off to a robust and promising start.

In the first two months, 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 conscientiously 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, implemented more proactive and effective macro policies, and stepped up counter- and cross-cyclical adjustments. All regions and departments further boosted domestic demand, improved supply and optimized the allocation of new resources while making the best use of existing ones. As a result, production and supply accelerated, market demand maintained a steady growth, employment and prices were generally stable, and new quality productive forces developed and thrived. The national economy got off to a robust and promising start.

First, industrial production accelerated and equipment manufacturing and high-tech manufacturing showed good growth momentum.

In the first two months, the total value added of industrial enterprises above designated size grew by 6.3% year on year, 1.1 percentage points faster than that in December. In terms of sectors, the value added of mining went up by 6.1% year on year, manufacturing up by 6.6%, and the production and supply of electricity, thermal power, gas and water up by 4.7%. The value added of equipment manufacturing increased by 9.3% year on year, and that of high-tech manufacturing rose by 13.1%, which were 3 percentage points and 6.8 percentage points faster than that of industrial enterprises above designated size, respectively. In terms of ownership, the value added of state-holding enterprises increased 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%; and that of private enterprises was up by 7.4%. In terms of products, the output of 3D printing devices, lithium-ion batteries and industrial robots grew by 54.1%, 42.6% and 31.1% year on year, respectively. In February, the total value added of industrial enterprises above designated size went up by 0.83% month on month. In February, the Manufacturing Purchasing Managers' Index stood at 49%, and the Production and Operation Expectation Index was 53.2%, 0.6 percentage point higher than that of the previous month.

Second, the service sector grew rapidly and modern services developed quickly.

In the first two months, the Index of Services Production grew by 5.2% year on year, 0.2 percentage point faster than that in December. Specifically, the production index of information transmission, software and information technology services, leasing and business services, finance, transportation, storage and postal services, and hotels and catering services grew by 10.1%, 8.2%, 7%, 6.3% and 5.4%, respectively. In February, the Business Activity Index for Services was 49.7%, 0.2 percentage point higher than that of the previous month, and the Business Activity Expectation Index for Services was 55.8%. Specifically, the Business Activity Index for hotels, catering, and culture, sports and entertainment stayed within the high expansion range of 60% and above.

Third, growth of market sales picked up and service retails grew quickly.

In the first two months, the total retail sales of consumer goods reached 8,607.9 billion yuan ($1,249.6 billion), up by 2.8% year on year, 1.9 percentage points faster than that in December. Analyzed by different areas, retail sales of consumer goods in urban areas reached 7,444.9 billion yuan, up by 2.7%; and that in rural areas reached 1,163 billion yuan, up by 3.2%. Grouped by consumption patterns, retail sales of goods were 7,581.5 billion yuan, up by 2.5%; and the income of catering was 1,026.4 billion yuan, up by 4.8%. Sales of basic living goods and certain upgraded goods grew quickly. The retail sales of clothes, shoes, hats and textiles, of grain, oil and food, of communication equipment, and of gold, silver and jewelry by enterprises above designated size increased by 10.4%, 10.2%, 17.8% and 13% year on year, respectively. In February, total retail sales of consumer goods increased by 0.81% month on month. In the first two months, retail sales of services went up by 5.6% year on year, 0.1 percentage point faster than that of last year. Specifically, that of communication information services, tourism consultation and rental services, and cultural, sports and leisure services grew quickly. In the first two months, the online retail sales of goods and services reached 3,254.6 billion yuan, up by 9.2% year on year. Specifically, the online retail sales of goods were 2,081.2 billion yuan, up by 10.3%, accounting for 24.2% of the total retail sales of consumer goods. The online retail sales of services totaled 1,173.4 billion yuan, up by 7.3%.

Fourth, fixed-asset investment shifted from decline to growth and infrastructure investment grew relatively rapidly.

In the first two months, the national investment in fixed assets (excluding rural households) reached 5.2721 trillion yuan, up by 1.8% year on year. It dropped by 3.8% in 2025. Investment in fixed assets was up by 5.2% with the investment in real estate development deducted. Specifically, investment in infrastructure grew by 11.4% year on year, that in manufacturing grew by 3.1%, and that in real estate development declined by 11.1%. The floor space of new commercial buildings sold was 92.93 million square meters, down by 13.5% year on year; and the total sales of new commercial buildings were 818.6 billion yuan, down by 20.2%. By industry, investment in the primary industry went up by 17.4% year on year, that in the secondary industry was up by 5.4%, and that in the tertiary industry was down by 0.4%. Private investment decreased by 2.6% year on year, with the decline narrowing by 3.8 percentage points compared with the whole of last year. Excluding real estate development investment, private investment grew by 1.0%. Investment in high-tech industries increased by 5.1% year on year, among which investment in the manufacture of aircraft, spacecraft and related equipment, R&D and design services sector, and information services sector increased by 20.2%, 20.6% and 16.5%, respectively. In February, fixed-asset investment (excluding rural households) increased by 0.39% month on month.

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

From January to February, the total imports and exports of goods was 7.7321 trillion yuan, an increase of 18.3% year on year, accelerating by 13.4 percentage points compared with December. The total value of exports was 4.6178 trillion yuan, up by 19.2%; and the total value of imports was 3.1143 trillion yuan, up by 17.1%. General trade imports and exports increased by 13.5% year on year. Imports and exports with Belt and Road partner countries grew by 20.0%. Imports and exports by private enterprises increased by 22.8%. Exports of mechanical and electrical products increased by 24.3%.

Sixth, employment was generally stable and the surveyed urban unemployment rate was unchanged year on year.

In the first two months, the average surveyed urban unemployment rate nationwide was 5.3%, unchanged from the same period last year. In February, the national surveyed urban unemployment rate was 5.3%, 0.1 percentage point higher than that of the previous month. The surveyed unemployment rate of population with local household registration was 5.4%; and that of population with non-local household registration was 5.0%, among which, the rate of the population with non-local agricultural household registration was 5.2%. The surveyed urban unemployment rate in 31 major cities was 5.1%. Employees of enterprises worked an average of 48.1 hours per week.

Seventh, the growth of consumer prices increased and the decline of producer prices for industrial products narrowed.

From January to February, the national Consumer Price Index (CPI) increased by 0.8% year on year, rising by 0.2% in January and 1.3% in February. Grouped by commodity categories, in the first two months, prices for food, tobacco, alcohol, and catering services were up by 0.6% year on year; clothing up by 1.9%; housing down by 0.1%; articles and services for daily use up by 2.7%; transportation and communication down by 2.1%; education, culture and recreation up by 1.0%; medical services and health care up by 1.8%; and other articles and services up by 14.3%. Within the category of food, tobacco, alcohol and catering services, prices for pork went down by 11.2%, grain down by 0.2%, fresh fruits up by 4.5%, and fresh vegetables up by 8.8%. The core CPI, excluding the prices of food and energy, went up by 1.3% year on year. From a month-on-month perspective, the national CPI rose by 0.2% in January, and by 1.0% in February.

From January to February, the national Producer Price Index (PPI) for industrial products fell by 1.2% year on year. On a monthly basis, January decreased by 1.4% year on year and rose by 0.4% month on month, and February decreased by 0.9% year on year and rose by 0.4% month on month. From January to February, the purchasing prices for industrial producers nationwide fell by 1.1% year on year.

Overall, from January to February, major economic indicators rebounded significantly and the national economy got off to a good start. However, it should also be noted that the impact of changes in the external environment has deepened, geopolitical risks continue to increase, and there remain old problems and new challenges in domestic economic development and transformation, with some enterprises experiencing difficulties in operation. In the next stage, we must adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guide, thoroughly implement the guiding principles of the 20th CPC National Congress and the plenary sessions of the 20th CPC Central Committee, and earnestly carry out the decisions and arrangements of the Central Conference on Economic Work and the national "two sessions." We will fully, accurately and comprehensively apply the new development philosophy, accelerate the building of a new development pattern, and focus on promoting high-quality development. We will uphold the general principle of pursuing progress while ensuring stability, implement a more proactive and effective macro policy, and develop new quality productive forces based on local conditions. We will focus on stabilizing employment, enterprises, markets and expectations, and promote effective qualitative improvement and reasonable quantitative growth of the economy. Thank you.

Jia Huili:

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

Yicai:

The year 2026 is the first year of the 15th Five-Year Plan period, and January-February is also a barometer for the whole year. How would you evaluate the performance of China's economic operation in these two months? What are the main highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your questions. This year marks the first year of the 15th Five-Year Plan period, and China's economic performance in January and February has drawn widespread attention. Since the beginning of this year, the international environment has been volatile with rising external risks, especially the spillover risks of geopolitical conflicts. Even so, under the strong leadership of the CPC Central Committee, all regions and departments have earnestly implemented more proactive and effective macroeconomic policies, focusing on maximizing the integrated effect of existing and new policies. In the January-February period, production and supply grew rapidly, domestic demand expanded steadily, employment and prices remained generally stable, and new quality productive forces were fostered and strengthened. Put simply, the economy got off to a strong start in the January-February period. The characteristics were as follows:

First, production grew at a relatively rapid pace. In the industrial sector, the total value added of industrial enterprises above designated size increased 6.3% year on year in the first two months, 1.1 percentage points faster than in December. This growth was mainly driven by improved domestic demand, stronger export momentum and the continued effect of macroeconomic policies. Within the sector, equipment manufacturing made a particularly notable contribution to overall industrial growth. Its value added rose 9.3% year on year, accounting for 47.4% of total growth among industrial enterprises above designated size. In the service sector, growth accelerated due to the combined effects of the Spring Festival and consumption-promoting policies. In the first two months, the Index of Services Production grew 5.2% year on year, 0.2 percentage point faster than in December. The development of artificial intelligence also notably boosted demand for information services. In the first two months, the production index of information transmission, software and IT services increased 10.1% year on year, continuing the rapid growth the sector has sustained in recent years. Meanwhile, boosted by the Spring Festival, the production index for transportation, accommodation and catering services rebounded notably in January-February from December.

Second, domestic demand expanded. In terms of consumption, the extended Spring Festival holiday provided a strong boost to start the year, while consumer goods trade-in programs continued to take effect. Cultural tourism, leisure and entertainment activities remained lively, service spending grew rapidly, and overall market sales posted a clear rebound. In the first two months, total retail sales of consumer goods increased 2.8% year on year, 1.9 percentage points faster than in December — a figure that primarily covers goods transactions. Retail sales of services increased 5.6%, significantly outpacing those of goods. In terms of investment, with 2026 marking the first year of the 15th Five-Year Plan period, efforts were made across the board to seize opportunities and accelerate the launch and construction of major projects, driving a rebound in investment. In the first two months, investment in fixed assets increased 1.8% year on year, while that of the previous year was down 3.8%, thus reversing the downward trend. Specifically, investment in infrastructure grew 11.4% year on year, well above the full-year growth rate of 2025.

Third, foreign trade maintained strong growth. In the first two months, foreign trade grew rapidly on the combined strength of improving global demand, the rise of emerging industries worldwide, and the growing competitiveness of China's advantageous products. In the first two months, the total value of imports and exports of goods increased 18.3% year on year, accelerating sharply compared with overall growth in 2025. Looking at major trading partners, imports and exports with ASEAN, the EU and Belt and Road partner countries all grew at around 20%. The rapid growth of imports and exports reflects the strong resilience and vitality of China's foreign trade.

Fourth, employment and prices remained generally stable. In terms of employment, affected by Spring Festival dynamics, the national urban surveyed unemployment rate rose slightly in January and February compared with last December. However, the average rate for the first two months held steady at 5.3%, unchanged from the same period last year, indicating that the stable employment situation in China has not changed. Among key groups, rural migrant workers returned to their jobs after the Spring Festival holiday in a steady manner, keeping employment stable. In terms of prices, the CPI recovered moderately in the first two months, buoyed by recovering market demand and the boost from the Spring Festival. In January-February, China's CPI rose 0.8% year on year, the same as last December, but higher than in the fourth quarter and the whole of 2025. Excluding food and energy, categories known for their outsized influence on price swings, core CPI rose 1.3% year on year in January-February, also picking up from December. These trends indicate a positive momentum in price.

Fifth, new growth drivers developed at an accelerated pace. The sound economic performance in the first two months was inseparable from the cultivation of new quality productive forces and the growth and strengthening of new growth drivers. The deep integration of sci-tech and industrial innovation, the accelerated expansion of the "AI plus" initiative, and the sound development of the digital economy all contributed to improvements across the industrial chain. In the first two months, the value added of computer, communication and other electronic equipment manufacturing increased 14.2% year on year. The rapid growth of the electronics industry also drove growth in upstream raw material sectors, especially the chemical industry. In the first two months, the value added of chemical raw materials and chemical products manufacturing increased 7.6% year on year, sustaining relatively fast growth. At the same time, the development of AI and the rising demand for computing power significantly boosted upstream energy industries. In the first two months, the value added of electricity and heat production and supply industries increased 5.1% year on year, 4 percentage points faster than last December. New growth drivers played an even stronger enabling role along the industrial chain. It should also be noted that, as the green transition advances, the manufacturing of new energy equipment has accelerated significantly, with many such products maintaining rapid growth. All these factors have injected new momentum into economic growth.

Overall, China's economy got off to a strong start in the January-February period and continued to move toward new growth drivers and improved performance. At the same time, we are aware that the external environment remains complex, with rising risks from geopolitical conflicts and increasing uncertainty in their spillover effects. Domestically, the mismatch between strong supply and relatively weak demand persists, and some enterprises are facing operational difficulties. Looking ahead, we will fully implement the decisions and arrangements made at the Central Conference on Economic Work and the annual sessions of the National People's Congress and the Chinese People's Political Consultative Conference. We will carry out more proactive and effective macroeconomic policies, continue to expand domestic demand and optimize supply, and develop new quality productive forces based on local conditions. We will also further advance the construction of a national unified market, thereby promoting sustained and sound economic growth and better ensuring and improving people's well-being. Thank you.

Phoenix TV:

We have noted that the decline in PPI continued to narrow in February. Meanwhile, international oil prices have fluctuated significantly, pushing up shipping and insurance costs. How do you assess the impact of such imported inflationary pressure on future PPI trends and industrial prices? Thank you.

Fu Linghui:

Thank you for your question. Indeed, rising geopolitical risks have led to sharp fluctuations in international oil prices, raising concerns about market price trends. Since the beginning of this year, producer prices have generally shown a narrowing year-on-year decline. In February, the PPI fell 0.9% year on year, with the rate of decline easing by 0.5 percentage point from the previous month, marking the third consecutive month of narrowing. On a month-on-month basis, producer prices have risen for five consecutive months. The improvement in producer prices is mainly driven by expanding demand in certain domestic industries, the boost to industrial product prices from the growth of new drivers, and rising international commodity prices. These factors have jointly contributed to the recovery. As I noted earlier when introducing the economic performance for January and February, new growth drivers have played a supportive role in economic development, and this is also reflected in price trends.

The February figures show that the narrowing of the PPI decline was mainly driven by the following factors. First, industrial upgrading has boosted demand for high-end equipment, pushing up prices in related sectors. In February, aircraft manufacturing prices rose 7.7% year on year, largely driven by the growth of the domestic commercial aviation sector. Meanwhile, prices for shipbuilding and related equipment manufacturing rose 0.5% year on year. Second, the advancement of industrial digitalization and green transformation has spurred demand, pushing up prices in related sectors. With the rapid development of the "AI Plus" initiative, prices for electronic components and specialized electronic materials rose 4.9% year on year in February. The recent rise in prices of products such as memory chips is largely driven by growing domestic demand for computing power. Under the continued push for green transformation, prices for biomass fuel processing rose 3.2% year on year in February. Third, improvements in market competition order have driven price gains in certain sectors. Efforts to address overcapacity and curb involution-style competition in key industries have continued. In February, price declines in cement manufacturing and ferrous metal smelting and rolling processing narrowed by 1.5 percentage points and 0.3 percentage point, respectively, compared with the previous month. In addition, rising international energy and non-ferrous metal prices also contributed to the rebound in producer prices. In February, prices in non-ferrous metal smelting and rolling processing rose 22.1% year on year, a notably large increase.

Overall, producer prices have shown positive changes, which bodes well for improving business operations and corporate confidence. Recently, geopolitical tensions in the Middle East have led to fluctuations in international oil prices, raising market concerns. However, China has a strong capacity to ensure energy supply and is well-positioned to cope with external market volatility. At present, significant uncertainties remain over global energy prices, and the pass-through impact on domestic prices warrants close monitoring. Going forward, we will continue to expand domestic demand and optimize supply, develop new quality productive forces suited to local conditions, and further advance the development of a national unified market. These efforts will bring industrial product prices back to a reasonable range, improve economic circulation, and promote the sustained and healthy development of the industrial economy. Thank you.

CNBC:

The Report on the Work of the Government has set an economic growth target of 4.5% to 5% for this year. Based on the economic performance in the first two months, which end of this target range is more likely to reach? What are the main challenges in achieving the annual growth target? Thank you.

Fu Linghui:

Thank you for your questions. This is indeed an issue of broad interest. This year marks the beginning of the 15th Five-Year Plan period. Economic performance at the start of the year serves as an important indicator for assessing the overall economic trend for the year, and has therefore attracted wide attention. Ahead of the release of key macroeconomic data, a number of market institutions made forecasts for major indicators in the January and February period, with considerable divergences among them, indicating the difficulty of assessing economic conditions during this period. The data released today came in significantly better than market expectations overall, reflecting the strong vitality and resilience of the Chinese economy. We have every reason to be confident in China's economic prospects.

Looking ahead, domestic and international challenges remain complex and intertwined, with numerous uncertainties and instabilities. However, the fundamental conditions supporting China's long-term economic trajectory remain unchanged. With the cultivation and expansion of new quality productive forces, the accelerated building of a new development pattern, and the enhanced effectiveness of macroeconomic policies, the national economy is expected to maintain steady momentum, continuously advancing toward greater innovation and higher quality. What is the basis for this assessment? I would point to the following reasons:

First, the economy has gotten off to a strong start this year. From January to February, China's production and demand showed steady improvement, with key economic indicators picking up significantly. Positive factors accumulated and strengthened, laying a solid foundation for full-year growth. During this period, the growth rates of industrial value added for enterprises above designated size and total retail sales of consumer goods rose by 1.3 percentage points and 1.1 percentage points, respectively, compared with the fourth quarter of last year. Goods exports grew notably faster, and fixed-asset investment shifted from decline to growth. Alongside improvements in key supply and demand indicators, prices posted a modest recovery, driven in part by better market supply-demand dynamics. Consumer prices rose at a slightly faster pace in January and February, while the PPI decline continued to narrow, contributing to increased incomes for businesses and households.

Second, expanding demand provides strong momentum. By adhering to the principle of mutual benefit, expanding economic and trade exchanges with countries worldwide, advancing high-quality Belt and Road cooperation, and actively promoting digital and green trade, China will open up new space for foreign trade development. In January-February, China's imports and exports with ASEAN, the EU and Belt and Road partner countries all grew at around 20%. As the opening year of the 15th Five-Year Plan gets underway, efforts across sectors to boost new types of infrastructure and public welfare infrastructure, and to strengthen project support, resource and funding guarantees, will help drive investment growth. In January-February, infrastructure investment rose 11.4% year on year. This year's government work report proposes formulating and implementing an income growth plan for urban and rural residents, promoting the expansion and upgrading of goods consumption, and launching initiatives to upgrade services to the benefit of consumers. These measures will help boost residents' ability and willingness to spend. The consumer confidence index rose 1 point in February, continuing its upward trend for the second consecutive month.

Third, industrial upgrading offers robust support. Innovation-driven development is playing a stronger leading role, with emerging industries expanding rapidly and providing greater support for production. In January-February, value added in high-tech manufacturing industries above designated size grew 13.1% year on year, while that of digital product manufacturing rose 8.8%, both significantly outpacing overall industrial growth. The rapid application of new technologies like AI is increasingly driving the transformation and upgrading of traditional industries and the development of emerging sectors. During this period, value added in railway, shipbuilding, aerospace and other transportation equipment manufacturing grew 13.7% year on year, while that in electrical machinery and equipment manufacturing rose 8.7%. The vigorous growth of green industries has injected new momentum into industrial upgrading. In January-February, output of wind turbine generators surged 28.7% year on year, while output of lithium-ion batteries for energy storage soared 84%. Over recent years, steady progress in green energy transformation has yielded significant results, with the development of new energy sources such as wind and solar driving increased demand for energy storage and spurring substantial growth in related products.

Fourth, macroeconomic policies provide strong safeguards. The Central Conference on Economic Work and the "two sessions" have comprehensively mapped out this year's economic work. Fiscal policy will be more proactive, with spending set to exceed 30 trillion yuan for the first time. Monetary policy will remain moderately loose, ensuring reasonable and ample liquidity, keeping overall social financing costs low, and strengthening the synergy between reform measures and macroeconomic policies. This will help boost economic momentum and vitality. In terms of policy implementation, efforts to implement major national strategies, enhance security capacity in key areas, and carry out large-scale equipment upgrades and consumer goods trade-in programs have gradually shown results in expanding domestic demand and boosting confidence since the start of the year. In January-February, investment in equipment and tool purchases, which is closely linked to equipment renewal, maintained rapid growth. Sales of goods covered by consumer goods trade-in programs also rebounded significantly year on year.

Taking all these factors into account, China's economy is expected to maintain stable growth with steady progress in the period ahead, laying a solid foundation for meeting this year's annual targets and objectives. Thank you.

CCTV:

We have noted that the CPI increased 1.3% year on year in February. Could you explain what drove this increase? How would you assess this phenomenon? Thank you.

Fu Linghui:

Thank you for your questions. The price outlook is a topic of broad public concern. In the first two months of this year, the CPI showed an overall upward trend. On a month-on-month basis, consumer prices rose 0.2% in January and 1% in February. The sharper increase in February was mainly driven by the Spring Festival holiday. With the Spring Festival falling in January last year but in February this year, the month-on-month increase in consumer prices was notably larger in February. Year on year, the CPI rose 0.2% in January and 1.3% in February, driven by both the Spring Festival and improved domestic demand. The sharper February reading partly reflects the Spring Festival falling in different months this year and last.

In February, the year-on-year CPI increase hit a three-year high. The main contributing factors were as follows. First, service prices growth accelerated significantly. With the extended Spring Festival holiday this year, residents significantly increased travel, visits to relatives and other outings. A notable feature of this year's Spring Festival was that many residents returned to their hometowns first and then traveled, pushing up prices for transportation, accommodation, dining and other services. In February, air ticket prices rose 29.1% year on year, vehicle rental prices climbed 19.8%, and vehicle repair and maintenance prices increased 12%. Travel-related prices also rose year on year, with travel agency fees up 12.5%, hotel accommodation up 5.4%, and takeout and dining prices up 5.6%. Driven by these factors, service prices in February increased 1.6% year on year, significantly above the January reading. This drove up the CPI by about 0.75 percentage point for the month, making it the single largest contributor to the overall gain. Second, food prices rose after a fall. During the Spring Festival holiday, more residents visited relatives and gathered with friends, boosting demand for food and pushing up prices of related goods. In February, prices of fresh vegetables, beef, mutton and fresh fruit rose between 5.9% and 10.9% year on year, with all gains accelerating from the previous month. Accordingly, in February, food prices turned from a year-on-year decrease of 0.7% in January to an increase of 1.7% in February, contributing about 0.3 percentage point to the CPI rise. Together, service and food prices contributed about 1 percentage point to the month's CPI increase. Third, industrial consumer goods prices rose at a faster pace. In February, industrial consumer goods prices rose 1.1% year on year, up 0.2 percentage point from January. Among them, household appliances climbed 5.3%, daily household goods rose 2.6% and clothing prices increased 2%.

Given that February CPI figures were heavily affected by the Spring Festival holiday, it is more useful to look at the combined January-February data for a clearer comparison. In the first two months, the CPI rose 0.8% year on year, matching the pace in December last year but outpacing both the fourth quarter and the full year of last year, indicating a mild recovery trend. Core CPI excluding food and energy rose 1.3% year on year, expanding 0.1 percentage point from December last year and slightly outpacing the fourth quarter of last year, also pointing to a mild recovery.

A moderate rebound in consumer prices helps improve business operations, supports employment and income growth among residents, and facilitates broader economic circulation. Looking ahead, although recent volatility in international energy prices has exerted some imported inflationary pressure on domestic prices, China's goods and service markets retain ample supply capacity, and the foundation for price stability remains intact. We will implement more proactive and effective macroeconomic policies to expand domestic demand and optimize supply. We will also roll out income-growth plans for urban and rural residents, cultivate new consumption scenarios, and further improve the consumption environment, all of which will support a continued improvement in price conditions. Thank you.

21st Century Business Herald:

I am interested in investment. How would you assess investment performance in January and February? What were the highlights? Thank you.

Fu Linghui:

Thank you for your questions. As I noted earlier, there have been positive developments in investment since the start of this year. Due to multiple factors, fixed-asset investment declined year on year throughout 2025. Since the start of this year, a series of policy measures to expand effective investment have driven investment growth from negative to positive. In particular, investment in key areas has grown rapidly, helping to optimize the supply structure and expand market demand. In the first two months, fixed-asset investment rose 1.8% year on year. The main characteristics are as follows:

First, investment growth in key areas has accelerated. This year marks the beginning of the 15th Five-Year Plan period. A number of major infrastructure projects have broken ground, spurring relatively rapid growth in related investment. In January and February, infrastructure investment grew 11.4% year on year, 10.8 percentage points faster than the whole of last year, contributing 3 percentage points to overall investment growth. Meanwhile, the pace of large-scale project construction has accelerated, with investment in projects with a planned total investment of 100 million yuan or more growing 5% year on year in January-February. Fueled by industrial upgrading and development, the growing demand for the transformation of traditional industries and the growth of emerging industries has driven a rebound in manufacturing investment. In the first two months, manufacturing investment grew 3.1% year on year, 2.5 percentage points faster than the whole of last year.

Second, investment in new growth drivers has shown strong momentum. Across different regions, new quality productive forces are being developed in line with local conditions, with sci-tech innovation deeply integrated with industrial innovation. This has driven rapid growth in investment tied to new growth drivers. In the first two months, investment in high-tech industries grew 5.1% year on year, with investment in aerospace equipment manufacturing rising 20.2% and investment in information services climbing 16.5%. Thanks to improving industrial technological capabilities, high-end equipment manufacturing has performed well, with investment growing at a relatively rapid pace. In January-February, investment in the manufacturing of railway, ship, aerospace and other transportation equipment grew 31.1%. China's green energy transition is advancing steadily, with installed capacity of wind power, photovoltaic and other new energy sources rising steadily, and related investment continuing to grow. In January-February, investment in the production and supply of electricity and heat grew 13.1%.

Third, the effects of policies to expand effective investment have yielded results. Since the start of this year, regions and various departments have steadily stepped up efforts to implement major national strategies and enhance security capacity in key areas , continued to support large-scale equipment upgrades, and increased funding support for projects, thereby boosting investment growth. In January-February, state-controlled investment grew 7.7% year on year, significantly faster than the full-year rate of last year. Meanwhile, investment in equipment and tools purchases grew 11.5% year on year. At the same time, policies and measures to promote private investment were actively implemented, helping boost its vitality. In January-February, private investment in infrastructure grew 9% year on year. These figures clearly show that government investment has played a clear role in guiding and stimulating private investment.

While acknowledging these positive developments, it should also be noted that the international environment remains complex and challenging, and factors such as ongoing adjustments in the domestic real estate market and weak corporate profitability continue to weigh on investment growth. In response, this year's government work report calls for fully unleashing the potential of effective investment. By allocating central budget investment, issuing ultra-long-term special treasury bonds, and rolling out new policy-based financial instruments, efforts will be made to strengthen market-driven, effective investment momentum and invigorate private investment. Looking ahead, we will implement the guiding principles of the Central Conference on Economic Work and the "two sessions." With a focus on key areas such as the development of new quality productive forces, new urbanization, and the comprehensive development of people, we will combine "investment in things" with "investment in people" to better drive economic development and improve people's livelihoods. Thank you.

South China Morning Post:

Boosting consumption is a key priority of government work this year. After the holiday spending surge, how does the NBS project the consumption trajectory for the remainder of this year? Thank you.

Fu Linghui:

Thank you for your question. Consumption is also a topic of great public interest. Its development not only relates to expanding domestic demand but also bears directly on improving living standards. When assessing the current consumption landscape, we need to look not only at the total retail sales of consumer goods but also at service retail sales. This is because consumption encompasses not only goods, but services as well. While total retail sales of consumer goods mainly reflect spending in goods, tracking developments in the service sector requires a greater focus on service retail figures. To assess how consumption will perform this year, we need to evaluate the overall trend based on the performance in January and February.

Since the beginning of this year, driven by policies aimed at boosting consumption and influenced by the extended Spring Festival holiday, market sales have rebounded notably. The potential for service consumption has been unlocked, and the momentum of new forms of consumption has strengthened. This is reflected in several key indicators. In January and February, the total retail sales of consumer goods grew by 2.8% year on year, with the growth rate accelerating 1.9 percentage points from December last year and 1.1 percentage points from the fourth quarter of last year. Service retail sales rose 5.6% year on year, up 0.1 percentage point from the previous year's growth rate, continuing to outpace goods retail sales. The main characteristics are as follows:

First, service consumption expanded steadily. Boosted by the Spring Festival holiday, spending on cultural and tourism activities rose markedly, driving growth in related service sales. In the first two months, retail sales in sectors such as travel advisory and rental services, as well as cultural, sports and leisure services, maintained a rapid growth rate of over 10%. During the Spring Festival, domestic trips approached 600 million, and total travel spending exceeded 800 billion yuan, both reaching historic highs. At the same time, the expansion of the visa-free entry policy drove an increase in inbound tourists, further boosting domestic market sales. Increased gatherings and social activities during the holiday also drove a significant expansion in dining-out consumption. In the first two months, catering revenue increased 4.8% year on year, with growth accelerating by 2.6 percentage points from December last year.

Second, goods consumption is upgrading with improved quality. The quality of household consumption has steadily improved, and boosted by Spring Festival holiday spending, sales of some essential daily necessities expanded markedly. In the first two months, retail sales for grain, oil and food products by enterprises above designated size rose by 10.2%, while retail sales of clothing, shoes, hats and textile products increased by 10.4%. The main reason for the rapid growth in essential daily necessities is that residents are placing higher demands on the quality and grade of goods. For example, while overall food consumption is relatively stable in volume terms, the increase in sales value largely stems from growing demand for green and healthy foods. At the same time, driven by the upgrading of consumer spending, retail sales of goods related to aspirational and quality-of-life needs also posted relatively strong growth. In the first two months, retail sales of gold, silver and jewelry by enterprises above designated size increased by 13% year on year. The effect of policies promoting consumer goods trade-ins continued to be evident. In the first two months, retail sales of communications equipment by enterprises above designated size grew 17.8%, sustaining rapid growth. Retail sales of household appliances and audiovisual equipment increased 3.3%, marking a clear rebound compared with December last year. Among household appliances and audiovisual equipment, sales of high-efficiency products maintained double-digit growth, reflecting the expanding demand for green products.

Third, new forms of consumption are developing well. As online and digital consumption gained momentum, online retail sales continued to expand. In the first two months, online retail sales of goods and services increased by 9.2% year on year, significantly outpacing the growth rate of total retail sales of consumer goods. Of this, online retail sales of goods rose 10.3%, outpacing the growth of total retail sales of goods, further strengthening their role in driving consumption. The popularity of online services continues to rise. Retail sales of online services grew by 7.3% year on year in the first two months, also outpacing the growth of total service retail sales. Since the beginning of this year, the online micro-drama market has been particularly vibrant. Platform monitoring figures show that in January-February, the transaction volume on micro-drama platforms surged more than 30%. At the same time, green consumption, health-oriented consumption, and the debut economy are playing an increasingly prominent role in boosting consumption.

Overall, market sales showed positive changes in January and February, with growth momentum picking up. This was driven by the combined effects of pro-consumption policies, consumption upgrading, and the rise of new consumption drivers. Looking ahead, the upgrading of the household consumption structure and expansion of new consumption drivers will remain important factors influencing consumption growth. The rollout of a series of pro-consumption policies will further reinforce this trend, and consumption is expected to maintain steady growth. That said, sustained efforts are still needed to build a strong domestic market and to stimulate the endogenous dynamism of household consumption. Moving forward, we need to leverage the strengths of China's enormous market, advance special initiatives to boost consumption, formulate and implement an income growth plan for both urban and rural residents, promote the expansion and upgrading of goods consumption, and introduce initiatives to improve service consumption for public benefit. Efforts will also be made to continuously optimize the consumption environment, unlock the consumption potential in areas such as culture and tourism, sports events and health care, invigorate consumption vitality, facilitate smoother economic circulation, and steadily improve living standards. Thank you.

Dazhong Daily:

How did industrial production perform in January and February? Has the role of new drivers in boosting industrial production further strengthened? Thank you.

Fu Linghui:

Thank you for your questions. Industrial production was a notable highlight in the economic performance of the first two months of this year. Industrial production accelerated markedly in January and February, driven by more proactive and effective macroeconomic policies continuing to take effect, solid progress in implementing major national strategies and enhancing security capacity in key areas, the continued rollout of policies advancing a new round of large-scale equipment upgrades and consumer goods trade-in programs, faster growth of new drivers, and stronger support from exports. The industrial structure has been optimized and upgraded, and the quality of development has continued to improve. This was mainly reflected in the following aspects.

First, industrial production continued to accelerate. In terms of growth rate, the value added of industries above designated size grew by 6.3% year on year in January and February, accelerating by 1.1 percentage points from December last year. By sector and product, most industries and products saw a pickup in growth. In January and February, 31 of the 41 industrial sectors posted faster growth compared with December last year, accounting for 75.6% of the total. Among the more than 600 key products monitored, over 350 saw their growth rates pick up compared with December last year, representing nearly 60% of the total.

Second, equipment manufacturing provided strong support. As mentioned earlier, in recent years, equipment manufacturing has become a key pillar driving industrial growth as both competitiveness and capabilities improve. With advances in industrial technology, China's high-end equipment manufacturing has maintained solid growth, with the broader equipment manufacturing sector seeing rapid growth. In the first two months, the value-added of equipment manufacturing enterprises above designated size increased by 9.3%, accounting for 33.5% of all industrial enterprises above the designated size. To be specific, the value-added of computer, communications and other electronic equipment manufacturing enterprises rose by 14.2%. That of the railway, ship, aerospace, and other transportation equipment manufacturing enterprises rose by 13.7%. These are all technology-intensive industries.

Third, some traditional industries were optimized and upgraded. Transformation and upgrading of traditional manufacturing industries progressed steadily, with new growth drivers gradually gathering momentum. In the energy sector, the value-added of the petroleum processing industry increased by 10.2% year on year in January and February, while the biomass fuel processing industry surged by 55.3%. In the chemical sector, the value-added of chemical fiber industry grew by 6.1%, with bio-based materials manufacturing up by 25.1%, contributing 30.1% to the overall growth of the chemical fiber industry. These figures indicated steady transformation and upgrading in traditional manufacturing industries as well as the emergence of new growth points in some industries.

Fourth, emerging industries grew faster. With the ongoing digital and intelligent transformation of industry, new growth drivers continued to expand steadily. In the first two months, the value-added of high-tech manufacturing enterprises above designated size increased by 13.1% year on year, and that of digital product manufacturing industry increased by 8.8%. The value-added of intelligent vehicle-mounted equipment manufacturing and smart unmanned aerial vehicle manufacturing grew by 46.3% and 26.6%, respectively. This indicates the expanding demand for intelligent products in China's industrial production. Driven by green transformation, the new energy and green materials industries showed strong momentum. In the first two months, the output of lithium-ion power batteries for automobiles increased by 28.4%, and that of lithium carbonate and bio-based chemical fibers rose by 29.3% and 11.2%, respectively. This reflects strong progress in new energy utilization and new material development.

Overall, industrial production accelerated in January and February, and new quality productive forces were fostered and strengthened, supporting high-quality economic growth. However, it must be noted that the impact of international geopolitical conflicts is still evolving, external uncertainties remain high, and the domestic market still faces an imbalance between strong supply and weak demand. Industrial production still faces considerable pressure. Going forward, efforts will be intensified to build a strong domestic market and step up the building of a unified national market. We will also deepen the integration of technological innovation and industrial innovation, and continue to upgrade traditional industries and nurture and expand emerging industries and the industries of the future. We will develop the modernized industrial system at a faster pace, and promote the sustained and sound growth of the industrial economy. Thank you.

Jia Huili:

Due to the time limit, we'll take two final questions.

Elephant News:

We have noticed that the newly released data include a new indicator of online retail sales of goods and services. What is the rationale behind this? What does it cover? Thank you.

Fu Linghui:

Thank you for your questions. There is an important change in this year's consumption-related indicators, with the indicator tracking "online retail sales of goods and services" being published for the first time, with the "online retail sales" indicator being discontinued. The "online retail sales of goods and services" indicator is obtained by optimizing and improving the previous "online retail sales" indicator. The main difference is that the "online retail sales of goods and services" indicator expands the statistical scope of online service platforms and strengthens the calculation of online services retail sales. The previously published "online retail sales" indicator mainly included two items. The first is the online retail sales of physical goods, mainly reflecting the online sales of goods. The second is the online retail sales of non-physical goods, mainly reflecting the service retail sales on major platforms.

In recent years, with the rapid development of online services, the NBS has strengthened the statistics on online service retail. Based on the previous indicator of "online retail sales of non-physical goods," the NBS optimized and improved the indicator by bringing more online service retail platforms into the scope of statistical surveys, calculating and releasing the "online service retail sales" indicator. At the same time, the name of the previously released "online retail sales of physical goods" indicator has been adjusted to "online retail sales of goods" indicator, with its statistical scope and connotation unchanged. The name of "online retail sales" indicator has been adjusted to "online retail sales of goods and services". After the adjustment, the total volume of online retail sales of goods and services has expanded, compared to the previous online retail sales, mainly due to the increase in online service retail sales.

Next, the NBS will further strengthen statistical monitoring of market sales to better reflect the development of consumption, and provide high-quality statistical information to all sectors of society. We also welcome valuable suggestions on statistical work from media friends and the general public. We will continuously improve related statistical work based on your suggestions to better serve high-quality economic and social development. Thank you.

Jia Huili:

The last question, please.

Economic Daily:

In the context of global economic uncertainty still being relatively high, how do you evaluate the performance of import and export data for the first two months of the year? Thank you.

Fu Linghui:

Thank you for your question. Regarding the performance of foreign trade at the beginning of the year, the China Customs has already released the relevant data. The data exceeded expectations, indicating that the development of foreign trade this year is very impressive. Last year, with the complex changes in the international situation, China's foreign trade pressed forward against pressure and achieved steady progress. This year marks the beginning of the 15th Five-Year Plan period. Based on the relatively strong growth in foreign trade last year, the growth achieved at the beginning of the year reflects the strong vitality and resilience of China's foreign trade. According to the released data, in the first two months, China's imports and exports of goods grew rapidly, and the trade structure continued to be optimized. Improvement in both quantity and quality was evident, highlighting the development vigor. The main features are as follows.

First, imports and exports have accelerated significantly. Affected by factors such as the marginal rebound in global trade demand, positive development in artificial intelligence applications, and the Spring Festival holiday, from January to February, the total value of goods imports and exports increased by 18.3% year-on-year, with the growth rate significantly higher than that of the whole year last year. Both exports and imports saw a rebound in growth from January to February with goods exports growing by 19.2%, 13.1 percentage points higher than that of the whole year last year. Goods imports grew by 17.1%, increasing by 16.6 percentage points. It should be noted that the rebound in goods import growth outpaced that of exports, which on one hand reflects that improved domestic demand is driving imports, and at the same time, it also suggests that new opportunities are provided for trade development of countries around the world.

Second, the strategy of foreign trade diversification has continued to yield positive results. On the basis of mutual benefit and win-win cooperation, China has expanded trade exchanges with countries around the world, promoted by high-quality Belt and Road cooperation. It is this unilateral and voluntary opening up in an orderly manner, as well as the advanced construction of pilot free trade zones, that has continued the support and growth of foreign trade. In the first two months, China's total imports and exports with ASEAN and the EU increased by 20.3% and 19.9% respectively, and imports and exports with countries and regions participating in the Belt and Road Initiative grew by 20%. China's circle of friends in foreign trade is steadily expanding.

Third, new growth drivers have been gaining strength. With China's industrial upgrading, the competitiveness of export products has increased, the proportion of industrial manufactured goods in total exports has risen, and exports of mechanical and electrical products as well as high-tech products have grown rapidly, driving the growth of foreign trade. From January to February, exports of mechanical and electrical products increased by 24.3%, and exports of high-tech products increased by 24.2%. Exports of products with higher technical content such as integrated circuits and ships have maintained a good growth momentum. At the same time, the positive development of digital trade and green trade is also conducive to forming new growth drivers.

Fourth, development vitality has continued to be unleashed. The energy of China's foreign trade is reflected in the rapid growth of new business forms and models. Within these proactive efforts to explore overseas markets and open up new spaces, new opportunities have been created for foreign trade. In the first two months, imports and exports of private enterprises increased by 22.8% year-on-year, outpacing the total growth rate. Imports and exports of foreign-invested enterprises grew by 15.3%, maintaining rapid growth. Several factors are crucial for viewing foreign trade development. First is global demand. China’s products, in terms of both quality and standards, are highly adaptable to the needs of the foreign markets. Second is that China has high-quality supply. This is reflected not only in the quality of the competitiveness of products, but also in the ability to ensure stable procurement. Against the backdrop of an international landscape fraught with instability and changes, China can consistently and steadily provide high-quality products to various countries. Third, China's foreign trade development has always been built on the basis of mutual benefit and win-win results. It not only provides the world with high-quality products but also actively expands the imports. By hosting the China International Import Expo, China offers its development opportunities to the global community.

Overall, China's imports and exports of goods have maintained sound growth since the beginning of this year, with a solid foundation and strong vitality driving the development of foreign trade. However, we should also recognize that the external environment remains complex, with many unstable and uncertain factors. The stabilization of foreign trade continues to face pressure. In the next stage, we will adhere to win-win cooperation, steadily expand institutional opening-up, actively advance autonomous opening-up, promote the stable scale and optimized structure of foreign trade, cultivate and strengthen new drivers of foreign trade development, advance high-quality BRI cooperation, further expand imports, and promote the balanced development of foreign trade. Thank you.

Jia Huili:

Today's press conference has now concluded. Thank you to our speakers and to our friends from the media. See you next time.

Translated and edited by Yang Chuanli, You Jiaxin, Zhu Bochen, Wang Ziteng, Liu Caiyi, Lin Liyao, Liao Jiaxin, Xu Xiaoxuan, Xu Kailin, Zhang Tingting, Jay Ian Birbeck, David Ball, Tudor Bentley Finneran, Wang Wei, Fan Junmei, Zhou Jing, Zhang Junmian, Huang Shan, Li Huiru, Yuan Fang. 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. Zheng Bei, vice chairperson of the National Development and Reform Commission (NDRC)

Mr. Yuan Da, secretary-general of the NDRC

Ms. Chen Lei, director general of the Department of Development Planning of the NDRC

Mr. Bai Jingyu, director general of the Department of Innovation and High-Tech Development of the NDRC

Mr. Liu Dechun, director general of the Department of Social Development of the NDRC

Chairperson:

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

Date:

March 7, 2026

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). Today we have invited Ms. Zheng Bei, vice chairperson of the National Development and Reform Commission (NDRC), to interpret the draft Outline of the 15th Five-Year Plan (2026-2030) and answer your questions. Also attending today's briefing are: Mr. Yuan Da, secretary-general of the NDRC; Ms. Chen Lei, director general of the Department of Development Planning of the NDRC; Mr. Bai Jingyu, director general of the Department of Innovation and High-Tech Development of the NDRC; and Mr. Liu Dechun, director general of the Department of Social Development of the NDRC.

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

Zheng Bei:

Friends from the media, ladies and gentlemen, good afternoon. Since the opening of the "two sessions," all sectors have paid close attention to Outline of the 15th Five-Year Plan. Premier Li Qiang has delivered a report explaining the draft Outline of the 15th Five-Year Plan. To help you better understand it, my colleagues and I will now provide further briefing.

The scientific formulation and consistent implementation of five-year plans has been an important experience in the governance and administration of state affairs by the Communist Party of China (CPC) and a key political strength of the socialism system with Chinese characteristics. The CPC Central Committee and the State Council have attached great importance to the drafting of the 15th Five-Year Plan. General Secretary Xi Jinping has provided overall guidance for the planning process, personally led the drafting work throughout, delivered many important speeches, and issued a series of important instructions and directives. Recommendations for the 15th Five-Year Plan reviewed and approved by the fourth plenary session of the 20th CPC Central Committee provided important guidance for the drafting of the Outline. According to the requirements of the CPC Central Committee, the State Council formed a leading group and drafting group for the preparation of the draft Outline, while Premier Li Qiang chaired multiple meetings to conduct special research and deployments focusing on implementing the spirit of the fourth plenary session of the 20th CPC Central Committee and ensuring high-quality preparation of the Outline.

Following General Secretary Xi Jinping's important instructions that planning should promote democracy, pool collective wisdom and build broad consensus, the Outline of the 15th Five-Year Plan adopts an open and participatory approach, with a focus on conducting in-depth research and rigorous assessment.

First, in-depth research and rigorous assessment have been carried out on major issues. The drafting work focused on the key areas and difficult issues during the 15th Five-Year Plan period (2026-2030), with high-level research institutions organized to produce nearly 200 support reports, carefully studying and thoroughly calculating the main goals, indicators and important tasks and measures for the 15th Five-Year period. Local governments and departments were organized to systematically plan major projects, and multiple rounds of assessment were conducted on their necessity and feasibility.

Second, we have solicited opinions and suggestions through multiple channels and methods. Last year, over 40 research visits were made to various types of regions, and more than 50 special symposiums were held. The National Development Planning Expert Committee was organized for consultation and assessment, public opinions were solicited online, and nearly 70,000 high-quality suggestions were compiled after sorting and analysis. Extensive consultations were also carried out with key groups, including people in flexible employment, young people, migrant workers, and people with disabilities. In addition, deputies to the National People's Congress (NPC) and members of the Chinese People's Political Consultative Conference (CPPCC) put forward many valuable suggestions. The drafting group analyzed all the opinions and suggestions and considered them for adoption.

Third, we have steadily and orderly advanced the drafting of the Outline of the 15th Five-Year Plan. On the basis of the above work, studies have been carried out on the overall approach and framework of the Outline. After the convening of the fourth plenary session of the 20th CPC Central Committee, we fully aligned our work with the guiding principles of the Central Committee's Recommendations and formulated the draft Outline of the 15th Five-Year Plan. The document has undergone multiple rounds of revision and improvement following repeated review and refinement. From January to February this year, the State Council organized multiple symposiums to further solicit opinions from experts, entrepreneurs, non-CPC individuals and local governments at all levels. After a series of revisions and improvements, with the consent of the CPC Central Committee and the State Council, the document was submitted to this year's NPC and CPPCC sessions for review and deliberation.

The draft outline adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly applies the guiding principles from the Party's 20th National Congress and the plenary sessions of the 20th CPC Central Committee, earnestly carries out the deployments of the fourth plenary session of the 20th CPC Central Committee, and transforms the grand blueprint drawn by the CPC Central Committee into a pragmatic and feasible construction plan. It consists of 18 parts, 62 chapters and 171 subsections, and is divided into three major sections. The first section is the general overview, which corresponds to part 1. It covers the development environment, guiding principles and main objectives. Its main purpose is to implement the guiding ideology, principles and goal requirements specified in the recommendations adopted at the fourth plenary session of the 20th CPC Central Committee, and proposes 20 main indicators for socioeconomic development during the 15th Five-Year Plan period. The second section covers the major strategic tasks, and corresponds to parts 2 to 17. It sets out the main tasks and major measures from 16 aspects: industrial development, scientific and technological innovation, digital-intelligent development, the domestic market, deepening reform, opening up, rural revitalization, coordinated regional development, cultural development, population development, public wellbeing, green development, security and development, national defense, democracy and rule of law, and the policy of One Country, Two Systems. Specifically, in line with the development trend of digital technology and AI, the improvement of digital-intelligent development is presented separately; and based on the features of population development at the current stage, high-quality population development is also presented separately. The third section covers the guarantees for planning implementation, and corresponds to part 18. It elaborates on adhering to and strengthening the Party Central Committee's centralized, unified leadership, improving the planning implementation mechanism, mobilizing the enthusiasm, initiative and creativity of the whole society, and ensuring that the decisions and deployments of the CPC Central Committee are fully implemented.

The draft will be further revised and improved based on the opinions of the deputies to the NPC deputies and the CPPCC National Committee members following their review and discussion during the "two sessions." Our objective is to produce a high-quality plan that is grounded in reality, meets expectations of the public and provides guidance for the future.

Next, my colleagues and I are happy to answer questions you have related to the draft. Thank you.

Zhou Jianshe:

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

CCTV:

The 15th Five-Year Plan is the first five-year plan formulated after the 20th CPC National Congress, and is the construction blueprint for economic and social development in the next five years based on the recommendations adopted at the fourth plenary session of the 20th CPC Central Committee. Could you please introduce the main features and highlights of the draft? Thank you.

Zheng Bei:

Thank you for your question. I will take this one. As you just said, the draft fully implements the requirements of the recommendations adopted at the fourth plenary session of the 20th CPC Central Committee, focuses on planning major initiatives with a reform and innovation mindset, and further refines and clarifies necessary quantitative requirements and specific work arrangements. Yesterday, Mr. Zheng Shanjie explained the main contents of the draft at a press conference. I will offer you some further details here. In general, the draft is characterized by four prominent features:

First, in terms of its strategic positioning, the draft builds on past successes to break new ground, and focuses on strengthening the foundation and making comprehensive efforts. According to the strategic plan of the CPC Central Committee, the transition from the completion of a moderately prosperous society in all respects to the basic realization of socialist modernization will require three five-year plans. The 14th Five-Year Plan was the first and has already achieved a good start, the 16th Five-Year Plan will be the concluding period, while the 15th Five-Year Plan occupies a pivotal position in linking past and future. The draft has been formulated based on this positioning. It systematically reviews development achievements, comprehensively assesses the development environment, and focuses on consolidating and expanding advantages, removing bottlenecks and constraints, and strengthening weaknesses. It proposes the main goals and indicators for socioeconomic development during the 15th Five-Year Plan period, clarifies major strategic tasks and measures, and implements a consistent blueprint to ensure decisive progress in basically realizing socialist modernization.

Second, in terms of development orientation, it closely aligns with high-quality development, focusing on structural optimization and qualitative improvements. The recommendations clearly set promoting high-quality development as the theme, and the draft closely revolves around this theme, setting indicators, laying out tasks and planing projects, to guide the effective improvements of quality and the reasonable growth of quantity. In terms of the main target indicators, implementing the seven aspects of goals specified in the recommendations, and in accordance with the requirements for high-quality development, the indicator settings cover five areas: economic development, innovation-driven, public wellbeing, green and low-carbon, and security. The target values have all been scientifically calculated and comprehensively balanced, which will help create a synergy for promoting high-quality development.

Third, in terms of setting tasks, it emphasizes pragmatic and practical measures, prioritizing precision, effectiveness and robust support. The draft outline adheres to a combination of goal-oriented and problem-oriented approaches, and coordinates overall planning with highlighting key points. It deploys 16 major strategic tasks covering key areas and critical links of economic and social development, especially proposing targeted innovative measures such as promoting integrated development of education, sci-tech and talent, insisting on closely combining investment in things and investment in people, and promoting coordinated regional development. At the same time, it proposes 109 major projects in six areas, including a series of landmark infrastructure projects such as the Yaxia Hydropower Project, the new Three Gorges Waterway Channel, and satellite internet. These pragmatic measures and major projects will strongly support the realization of the goals and tasks of the outline.

Fourth, in terms of value orientation, it upholds putting the people first, focusing on concrete and effective results. The general secretary emphasized that in planning economic and social development during the 15th Five-Year Plan period, we must stay true to our original aspiration and place the well-being of the people at the heart of our fundamental values. The draft outline of 15th Five-Year Plan adheres to the principle of doing the best within our means, making solid efforts to promote the common prosperity of all people. In terms of major indicators, key tasks and significant projects, it highlights the development's focus on the well-being of the people. The main indicators cover employment, income, education, health, elderly care and child care — which are the most pressing, immediate issues of utmost concern to the people. The key tasks clearly specify a package of pragmatic measures such as implementing actions to stabilize jobs, expand capacity and improve quality, as well as urban and rural residents' income growth plans, high-quality insurance enrollment, and social care services improvement projects. The major projects propose a series of heart-warming initiatives that can help improve living standards, such as expanding high-quality higher education resources, strengthening medical and health foundations, and enhancing the capacity for integration of medical care and elderly care. Each measure closely focuses on solving urgent, difficult and troublesome matters of public concern, striving to do practical things for the people that truly resonate with them.

I hope that this introduction to these four areas of focus can help you better understand the draft outline. Thank you.

Red Star News:

The 15th Five-Year Plan period is very critical for promoting carbon peak work. Compared with the 14th Five-Year Plan period, what new arrangements does the draft outline of the 15th Five-Year Plan make for the comprehensive green transformation of economic and social development, and how will they be implemented? Thank you.

Zheng Bei:

During the 14th Five-Year Plan period, we have indeed achieved historic accomplishments in green development. The draft outline of the 15th Five-Year Plan has also made arrangements in this area. I would like to invite Mr. Yuan to answer this question.

Yuan Da:

Thank you for your question. The 15th Five-Year Plan period is a key period for accelerating the comprehensive green transformation of economic and social development, and also a decisive period for achieving the carbon peak goal. Compared with the 14th Five-Year Plan, the draft outline of the 15th Five-Year Plan highlights the "low-carbon" requirement more prominently in implementing the concept of green development. First, it explicitly proposes taking carbon peaking and carbon neutrality as the driving force to promote carbon reduction, pollution reduction, greening and growth in a coordinated manner. Second, it fully implements the dual control system of total carbon emissions and emission intensity. It should be noted that energy activities are the main source of carbon emissions, and shifting from dual control of energy consumption to dual control of carbon emissions does not mean relaxing energy-saving efforts. Energy saving is still the most direct, economical and effective way to reduce carbon.

In this regard, the draft outline emphasizes building "one mechanism" and carrying out "three tasks."

The "one mechanism" refers to an incentive and constraint mechanism covering all types of entities. We will promote the introduction of the Comprehensive Evaluation and Assessment Measures for Carbon Peaking and Carbon Neutrality, scientifically and reasonably allocate the dual control targets for carbon emissions, strengthen responsibilities for achieving carbon emission targets, and carry out local carbon assessments in an orderly manner. At the same time, we will adhere to the combination of policy guidance and market incentives, establish and improve the policy and legal system, and steadily implement industry carbon control, enterprise carbon management, project carbon evaluation and product carbon footprints.

The "three tasks" will be carried out in depth around three aspects: energy, industry, and production and lifestyle.

First, we will accelerate the move toward new and green energy. During the 14th Five-Year Plan period, China's installed capacity of renewable energy accounted for about 60% of total capacity, with its contribution to global newly installed renewable energy continuing to exceed 50%. During the 15th Five-Year Plan period, we will make greater efforts to develop non-fossil energy, accelerate the construction of a new type of power system, speed up the process whereby new electricity demand is covered by newly generated clean energy, and promote the peaking of coal and oil consumption.

Second, we will accelerate industrial carbon reduction and advance green development. On one hand, we will pursue "additive" strategies: vigorously developing green and low-carbon technologies and industries, facilitating the orderly transfer of eligible energy-intensive industries to regions with high concentrations of renewable energy resources, establishing about 100 national zero-carbon parks, and planning more than 10,000 kilometers of zero-carbon transportation corridors. On the other hand, we will pursue "subtractive" strategies: implementing major projects for energy-saving and carbon-reducing transformation in key industries, accelerating the phasing out of outdated and inefficient production capacity, effectively controlling high energy consumption and high emissions projects, promoting low-carbon substitution of transportation power, and improving energy efficiency in emerging fields such as computing power facilities and 5G base stations.

Third, we will accelerate resource conservation and efficiency enhancements in production and daily life. We will prioritize conservation, strengthen whole-process management and full-chain saving of water, land, minerals and other resources, vigorously develop the circular economy, and support the growth and expansion of the remanufacturing industry. We will carry out nationwide green and low-carbon actions to jointly practice a lifestyle and consumption pattern that is simple, moderate, green, low-carbon, civilized and healthy.

The Poster News APP:

Five-year plans are as much a matter of the country as they are for every household. Over the next five years, in the fields of public services such as education, health care and social security, what key measures will be introduced to give the public a stronger sense of gain? Thank you.

Zheng Bei:

No matter is too small when it comes to the people's well-being. I would like to invite Mr. Liu to answer this question.

Liu Dechun:

Thank you for your question. Public services concern the most immediate, practical and vital interests of the people. China has set the goal of achieving equal access to basic public services by 2035, which is an important requirement for basically realizing socialist modernization. The draft Outline of the 15th Five-Year Plan makes a series of arrangements in the areas of education, health care and social security.

Specifically, in terms of education, efforts will be made to accelerate improvements to the education resource allocation mechanism that adapts to population changes. We aim to increase the average schooling years of the working-age population by another 0.4 years, raising it from the current 11.3 years to 11.7 years. Basic education will focus more on expanding excellence and improving quality. We will comprehensively promote high-quality, inclusive preschool education, and high-quality, balanced compulsory education. We will steadily expand access to free education, explore extending the years of compulsory education, and build, renovate or expand 1,000 high-quality senior high schools. The focus in vocational education will be on industry-education integration. We will support the establishment of 500 new high-level industry-education integration training bases, deepen industry-education integration and school-enterprise cooperation, and promote vocational education to match industrial needs in terms of scale, structure and quality. The focus in higher education will be on improving quality and expanding capacity. We will moderately expand our initiative to develop world-class universities and academic disciplines, support efforts to foster new research-oriented universities, promote high-level collaboration with overseas universities to establish joint institutions and programs in China, and increase the enrollment scale of high-quality undergraduate education in an orderly manner.

In health care, we will continue to strengthen public health capabilities, optimize the roles and layout of medical institutions, and work toward raising average life expectancy to 80 years — bringing it broadly in line with that of high-income countries. Our efforts will focus on three key areas: First, we will strengthen the foundation of medical and health care services by building 1,000 integrated county-level medical communities to meet the public's needs for medical treatment near their homes. Second, we will expand and improve rehabilitation and nursing care. We will support a number of secondary-level hospitals in cities to develop specialized services such as rehabilitation and nursing care based on their actual conditions, while also comprehensively strengthening the construction of multi-level and diversified rehabilitation, nursing and hospice care service systems. Third, we will balance the distribution of high-quality medical resources. Efforts will be made to enhance the quality and efficiency of 125 national regional medical centers, while supporting a number of high-level provincial hospitals in strengthening their clinical diagnosis and treatment capabilities and fully realizing their potential. These measures aim to ensure that patients can receive treatment for major illnesses within their own province.

In terms of social security, we will steadily promote the expansion and upgrading of social security coverage, and firmly safeguard the bottom line of basic livelihoods. The focus of expansion will be on enlarging the coverage of unemployment and work-related injury insurance, establishing and improving the occupational injury protection system, and increasing the participation rate of flexible employees, migrant workers and those in new forms of employment. The focus of upgrading will be on improving the determination and adjustment mechanism of basic pension insurance benefits, gradually increasing the basic pension for urban and rural residents, and reasonably raising the subsidy standards for urban and rural residents' medical insurance.

In the next five years, we will move forward with people-centered new urbanization, improve mechanisms for allocating public resources according to the size of permanent resident population, promote the effective coverage of basic urban public services to ensure they cover all permanent residents, narrow the gap in basic public services between urban and rural areas, so as to ensure that rural areas enjoy the same basic public services as urban areas. Thank you.

Yicai:

We know that the draft outline of the15th Five-Year Plan (2026-30) has proposed 20 main indicators, which are of great concern to everyone. May I ask what are the main considerations in setting these indicators? Could you introduce how the economic growth indicators are set, and what new features there are in setting indicators in areas including public wellbeing that people care about? Thank you.

Zheng Bei:

Thanks for your questions. I will answer them. Main indicators are the key drivers for the implementation of the Five-Year Plan. Coordinating needs and possibilities, quantity and quality, the draft outline of the 15th Five-Year Plan sets 20 main indicators in five areas. The indicator setting adheres to considering both long- and near-term needs, upholding fundamental principles and breaking new ground, ensuring overall balance, and achieving precision and effectiveness. They are aligned with the goals of basically realizing socialist modernization by 2035 and building China into a great modern socialist country in all respects by the middle of this century, and strongly supporting the continued implementation of the modernization strategy.

Regarding the economic growth target, which has drawn widespread attention, the draft outline proposes keeping economic expansion within an "appropriate range," calibrating subsequent annual rates to shifting realities, and laying a solid foundation for doubling the 2020 per capita GDP by 2035 to reach the level of a moderately developed country. This target integrates quantitative goals into a qualitative framework, which is consistent with the goal proposed in the Party Central Committee's "Recommendations," detailing that "the economy keeps growing within an appropriate range" and is in line with the wording of the Outline of the 14th Five-Year Plan. It fully reflects the clear orientation of promoting high-quality development, guiding all parties to pursue tangible growth, allowing room for shifting development patterns, adjusting structures, and promoting reforms, and providing support for employment and income growth among residents. At the same time, "doubling" embodies an expectation for the average annual GDP growth over the next decades, and aligns with the long-term positive trend of China's economic development. "Laying a solid foundation" means striving for better outcomes in the actual work during the 15th Five-Year Plan period, laying a more solid foundation for development in the 16th Five-Year Plan period (2031-2035). This year's Government Work Report proposes that this year's annual GDP growth target will be 4.5%—5%, and local two sessions have set their own local economic growth targets based on their actual situations. This demonstrates the organic connection between annual plans and medium- and long-term plans, as well as between local plans and national plans.

You also mentioned indicators concerning public wellbeing, which the CPC Central Committee and the State Council attach great importance to. The draft outline focuses on resolving the pressing difficulties and problems that concern the people most, setting seven targets concerning people's wellbeing, accounting for more than one-third of the major development targets. For example, it sets targets to increase the average years of education for the working-age population, the average life expectancy, and the number of medical staff per 1,000 people, to tangibly improve the education and health standards of the people. Regarding the elderly and childcare services that concern everyone, the draft outline has added an indicator for the proportion of nursing beds in elderly care institutions, mainly to guide elderly care institutions to provide more high-quality nursing services and better meet the care needs of elderly people with functional disabilities or dementia. At the same time, the draft outline sets a target to increase the rate of kindergarten enrollment of infants under the age of 3, comprehensively reflecting the extent to which childcare needs are met, guiding all regions to continuously improve the quality of childcare services, and enhancing the sense of gain among the public.

In addition, focusing on key tasks such as raising the country's capacity for innovation, achieving peak carbon emissions, and ensuring food and energy security, the draft outline sets targeted indicators such as growth in nationwide R&D spending, reduction of carbon dioxide emissions per unit of GDP, total grain production capacity and overall energy production capacity. These major targets drive the strategic tasks in the 15th Five-Year Plan and will be implemented through tailored measures based on their specific categories. Thank you.

Market News International: 

During the 15th Five-Year Plan, can the negative list for foreign investment access be further shortened? What specific opening-up measures can take place in the services sector, such as telecommunications, healthcare, and education? And do you have a clear timetable for this?

Zheng Bei:

Thank you for your questions. We will unswervingly advance high-standard opening up. I would like to invite Ms. Chen Lei, director general of the NDRC's Department of Development Planning, to answer these questions.

Chen Lei:

Thank you for your questions. Continuously optimizing the environment for overseas investment through measures including expanding access is crucial for advancing high-standard opening up. The CPC Central Committee's recommendations clarify that upholding opening up and cooperation for mutual benefit is an essential requirement for Chinese modernization. The draft outline of the 15th Five-Year Plan (2026-2030) implements the deployment of the CPC Central Committee's recommendations, offering a comprehensive explanation on actively expanding self-initiated opening up, improving the quality and level of trade and investment cooperation, pursuing high-quality Belt and Road cooperation and promoting the building of a community with a shared future for humanity. The aim is to develop new institutions for a higher-standard open economy, and share opportunities with the rest of the world and promote common development. Here, I would like to highlight three measures.

First, we should proactively expand self-initiated opening up. In recent years, China's level of opening up has been continuously improving. The negative list for foreign investment has been reduced to 29 items, with all restrictions on foreign investment in the manufacturing sector being eliminated. Next, we will expand market access and open up more areas, particularly in the service sector. We will promote orderly expansion of opening up in telecommunications, the internet, education, culture, medical care, and other sectors, advance comprehensive pilot demonstrations for expanding opening up in the service industry, and reduce the negative list for foreign investment. Our goal is to create a broader investment space for foreign enterprises in China. Meanwhile, a diverse array of pacesetters in promoting opening up will be established. At the end of 2025, the Hainan Free Trade Port officially launched island-wide special customs operations. During the 15th Five-Year Plan period, we will continue to advance opening up in key areas including trade, investment, and the flow of production factors. The strategy to upgrade pilot free trade zones (FTZs) will be implemented to encourage eligible pilot FTZs to carry out more pioneering trials in areas such as digital economy, technological innovation, and offshore trade.

Second, we should promote the innovative development of trade. In 2025, China's total goods trade import and export reached 6.35 trillion U.S. dollars, while service trade exceeded 1 trillion U.S. dollars. China has become the primary trade partner of over 160 countries and regions around the world. During the 15th Five-Year Plan period, efforts will be made to improve the quality and efficiency of foreign trade, promote balanced development of imports and exports, revise the catalog of technologies, products, and services that the country encourages for import, improve the negative list management system for cross-border service trade, and enhance policy environments for bonded repair and remanufacturing, as well as new types of offshore trade. We will also continue to hold major exhibitions, including the China International Import Expo, the Canton Fair, and the China International Fair for Trade in Services, offering countries around the world with broader market opportunities.

Third, we should create greater space for two-way investment cooperation. During the 14th Five-Year Plan period, China attracted over 750 billion U.S. dollars in foreign investment, and extended its overseas investments to 190 countries and regions. For the 15th Five-Year Plan period, we will continue to improve the environment for foreign investment, fully implement national treatment for foreign-funded enterprises, and improve the service and support system for foreign investors. By ensuring both easy market access and accommodating business environments, we welcome more foreign-funded enterprises to invest in China and share the huge development space in advanced manufacturing, modern services, high-tech industries, energy conservation and environmental protection. At the same time, we will improve comprehensive overseas services to support qualified enterprises in pursuing mutually-beneficial overseas investment cooperation.

We believe that by continuously expanding high-standard opening up, and promoting reform and development through opening up, we will effectively promote unimpeded domestic and international economic flows, sharing development opportunities with the rest of the world, and better creating new horizons for mutually beneficial cooperation. Thank you.

CNBC:

What are the details of the 15th Five-Year Plan regarding emerging and frontier industries? And how will AI be integrated into the development and manufacture of these industries?

Zheng Bei:

This question may be a concern for everyone, and it also involves the high-tech field. I would like to invite Mr. Bai Jingyu, director general of the NDRC's Department of Innovation and High-Tech Development, to address the question.

Bai Jingyu:

Thank you for your questions. A new wave of scientific and technological revolution and industrial transformation is driving rapid breakthroughs, giving rise to a large number of new technologies, industries, business forms and models. This presents valuable opportunities for China's modernization. In order to firmly seize this rare historical opportunity, the draft outline includes dedicated arrangements for nurturing and expanding emerging and future industries, as well as for advancing digital and intelligent development. The major tasks can be summarized into three aspects: phased layout, ecosystem improvement, and digital and intelligent empowerment.

First, pursuing a tiered deployment. We will establish a development sequence for emerging industries composed of strategic emerging industries, emerging pillar industries, and future industries, integrating near-, medium-, and long-term planning. In the near term, we will continue to advance the development of strategic emerging industries such as next-generation information technology and new energy, and develop industrial clusters with distinctive features and with complementary strengths in light of local conditions. In the medium term, we will focus on fostering emerging pillar industries, including integrated circuits, biomedicine, and aerospace, to form new pillars to support the national economy. Looking further ahead, we will make forward-looking arrangements for future industries such as quantum technology, brain-computer interfaces, and embodied intelligence, cultivating the strategic emerging industries of tomorrow and the pillar industries of the future.

Second, we will focus on the fostering of a sound ecosystem characterized by innovation-driven growth, demand-led development, factor aggregation, locally tailored approaches, and effective regulation. To strengthen innovation leadership, we will organize and implement a number of industrial innovation initiatives, promote decisive breakthroughs in key and core technologies in priority areas across the entire innovation chain, and create new demand through new supply. To leverage application scenarios, we will launch demonstration programs, for the large-scale application of new technologies, new products, and new scenarios, allowing new demand to guide new supply. To promote factor aggregation, we will establish mechanisms to increase investment in future industries and share risks, strengthen talent cultivation in key fields, and optimize the layout of national-level science and technological innovation platforms, thereby providing strong support for industrial development. To ensure development suited to local conditions, we will strictly implement the arrangements for the layouts of major productive forces, guiding all parties to carry out their work in a scientific, rational, and pragmatic manner. To ensure effective regulation, we will advance legislation in emerging sectors, improve the market access system, and innovate regulatory approaches, properly balancing development and security, thereby energizing the market while ensuring sound regulation.

Third, promoting digital and intelligent empowerment. By ensuring the efficient supply of computing power, algorithms, and data, and leveraging digital and intelligent technologies, we will empower economic and social development and further advance the building of a Digital China. In terms of computing power, we will accelerate the development of a national integrated computing power network, promoting the scaled, intensive, green, and inclusive development of computing resources. In terms of algorithms, we will strive for breakthroughs in the basic theories and core technologies of artificial intelligence, strengthen the development of key algorithms, and promote iterative innovation in models and algorithms. In terms of data, we will improve the foundational institutions for data elements and deepen the development and utilization of data resources. In terms of empowerment, we will fully implement the "AI Plus" initiative, enabling all sectors and industries and promoting profound changes in production methods as well as the transformative leap in productivity. Thank you.

Zhonghongwang.com:

The recommendations for the 15th Five-Year Plan states that a strong domestic market provides strategic support for Chinese modernization. Could you elaborate on what concrete measures are included in the draft outline of the 15th Five-Year Plan to implement this deployment, particularly in advancing the development of a unified national market and promoting consumption? Thank you.

Zheng Bei:

Your question covers several aspects. I will invite Mr. Yuan Da to answer it.

Yuan Da:

Thank you for your question. A strong domestic market is a key advantage of a large economy. Practice has shown that it also provides us with confidence and resilience in responding to various risks and challenges.

During the 15th Five-Year Plan period, China's development environment will face profound and complex changes. Strategic opportunities will coexist with risks and challenges, and uncertainties that are difficult to predict will increase. The draft outline of the 15th Five-Year Plan proposes building a strong domestic market, achieving a higher-level dynamic balance between supply and demand, and enhancing the endogenous momentum and reliability of domestic economic circulation. Let me briefly introduce the arrangements from three aspects: supply, domestic demand, and circulation.

First, optimizing the supply structure. Focusing on the areas that are in shortage, weak, traditional, and emerging, we will further improve the quality and capacity of the supply system. For areas where supply is currently insufficient, we will accelerate breakthroughs in key technologies. Efforts will be made across the entire innovation chain to achieve decisive breakthroughs in key and core technologies in priority fields such as integrated circuits, industrial machine tools, high-end instruments, basic software, advanced materials, and bio-manufacturing, thereby enhancing the self-reliance and controllability of industrial chains. For the areas where we need improvement, we will move at increased speed to address all shortcomings. We will implement initiatives to improve quality and expand capacity in the service sector, deepen reform and opening-up in services, improve the supporting policy system, strengthen weak links in producer services, and vigorously foster the "China Services" brand. For traditional industries, we will accelerate upgrading and optimization. Following sector-specific approaches, we will develop high-quality steel bases, world-class petrochemical bases, and high-end shipbuilding and marine engineering equipment bases. This will in turn promote innovation across the entire industrial chain of machinery and equipment, whilst expanding the supply of quality products in sectors such as light industry and textiles. For emerging industries, we will accelerate their cultivation and expansion. As Mr. Bai has already introduced this earlier, I will just add two points. The first is to develop stronger strategic emerging industry clusters in areas such as next-generation information technology, new energy, robotics, and aerospace, all of which are in line with local conditions. The other is to promote faster development of future industries, including quantum technology, brain-computer interfaces, embodied intelligence, and 6G.

Second, we will boost domestic demand. We will adhere to the "three integrations" and continuously consolidate and enhance the strength of China's enormous market. Firstly, we will continue to integrate adopted and new policies. We will deeply implement special actions to boost consumption and improve the effectiveness of adopted policies, including the implementation of major national strategies and security capacity building in key areas, a new round of large-scale equipment upgrades and consumer goods trade-in programs, and new policy-backed financial tools. At the same time, we will speed up the implementation of new measures, such as a package of fiscal and financial coordination policies to promote domestic demand, and fully leverage the synergy of these policies. Secondly, we will continue to closely integrate improving people's living standards and promoting consumption. We will formulate and implement an income growth plan for both urban and rural residents, steadily raise the minimum wage standard, and increase government funds for promoting public well-being. At the same time, we will promote the expansion and upgrading of commodity consumption and release the potential of service consumption. Thirdly, we will continue to closely integrate investment in physical assets and people. We will optimize the government investment structure, and increase the proportion of livelihood-related government investment. We will stimulate the vitality of private investment, promote the opening of application scenarios in emerging fields to private enterprises, and equally ensure the demand for factors.

Third, we will strengthen the domestic economy. Focusing on the principle of "improving rules, maintaining order and optimizing facilities," we will accelerate the formation of a unified national market. We will improve rules, with a focus on improving the basic market institutional rules. We will promote the construction of systems such as those for property rights protection, market access, information disclosure, social credit, mergers and reorganizations, and market exit, and also improve statistics, fiscal and taxation, and evaluation systems that are conducive to building a unified market. We will maintain order, with a focus on maintaining fair competition market order, promote the improvement of market supervision rules, unification of benchmarks and enhancement of capabilities, regulate the economic promotion behavior of local governments, formulate lists of encouragements and prohibitions for local government investment promotion, and strengthen anti-monopoly and anti-unfair competition law enforcement and judiciary. We will optimize facilities, with a focus on building high-standard interconnected market facilities. We will promote the connectivity and rule alignment of distribution and logistics, market information, trading platforms and other facilities, improve the efficient and smooth modern distribution system, and reduce logistics costs for the whole of society. Thank you.

Shangyou News:

My question is regarding the content related to developing a modern infrastructure system. The draft plan proposes 23 projects targeting a national comprehensive and multidimensional transportation network, a new type of energy system, and new types of infrastructure. How can we understand the direction of modern infrastructure development over the next five years? What are the key tasks in the fields of transportation, energy, water conservancy and new infrastructure? Thank you.

Zheng Bei:

Building a modern infrastructure system is an important strategic task in the plan. I would like to invite Ms. Chen to answer this question.

Chen Lei:

Thank you for your questions. Infrastructure is an important support for economic and social development. In order to implement the requirements of the Proposals from the CPC Central Committee, the draft 15th Five-Year Plan includes a chapter dedicated to building a modern infrastructure system, covering not only transportation, water conservancy and energy infrastructure, but also major science and technology infrastructure, information and communication networks, and computing power networks as new types of infrastructure. The general direction is to better coordinate the plan to improve its layout and structure, drive integrated development, and ensure that infrastructure is safe, resilient and sustainable. Looking at it by field:

In terms of transportation, during the 15th Five-Year Plan period, we will improve the modern comprehensive transportation system, basically complete the "eight vertical and eight horizontal" corridors for high-speed railway and the national expressway network, advance the quality and upgrading of high-grade inland waterways, basically complete world-class port clusters and airport clusters, and implement a number of major projects such as opening high-standard high-speed railway corridors along the Yangtze River, building a new Three Gorges shipping channel, and improving highway safety resilience. At the same time, we will strengthen coverage and access guarantees in weak areas, and promote the renewal, renovation and maintenance of transportation infrastructure.

In terms of energy, we will focus on building a new energy system that is clean, low-carbon, safe and efficient; pursue the simultaneous development of wind, solar, hydro and nuclear energy; and implement a decade-long campaign to double the share of non-fossil energy, promoting the safe, reliable and orderly replacement of fossil fuels. During the 15th Five-Year Plan period, major projects will be implemented, including a hydropower project on the lower reaches of the Yarlung Zangbo River, new energy bases in desert areas, the Gobi, and other arid areas, and new electricity transmission channels. Together, these will push west-to-east power transmission capacity to more than 420 million kilowatts. By 2030, non-fossil energy will account for 25% of total energy consumption.

In terms of water conservancy, the primary framework and key arteries of the national water network have been gradually taking shape in recent years. During the 15th Five-Year Plan period, efforts will focus on building a modern water infrastructure network. Major projects will be assessed and rolled out across river management, flood control reservoirs, large-scale water diversion schemes, and the construction and upgrading of large and medium-sized irrigation areas. These efforts will strengthen China's capacity to defend against flood disasters, coordinate water resource allocation, and ensure a reliable water supply for both urban and rural areas.

In terms of new infrastructure, we will strengthen coordinated efforts to advance construction and ensure more intensive and efficient use. We will systematically plan and deploy major sci-tech infrastructure that is strategically oriented, application-supported and forward-looking. We will promote the deployment and application of 10-gigabit optical networks and the large-scale commercial use of 5G-A mobile communication networks. We will build a national integrated computing network and coordinate the construction of satellite communication, navigation and remote sensing systems. We will also develop low-altitude infrastructure guided by expanding real-world use cases, thereby providing solid support for industrial upgrading, and digital and intelligent development during the 15th Five-Year Plan period and beyond. Thank you.

Top News:

We have noticed that the draft outline of the 15th Five-Year Plan proposes a number of major projects aimed at driving the development of new quality productive forces, with the full integration between technological and industrial innovation as a key focus. What plans and arrangements are there in this regard? Thank you.

Zheng Bei:

I would like to invite my colleague, Mr. Bai, to answer this question.

Bai Jingyu:

Thank you for your question. Promoting the full integration between technological and industrial innovation is a key priority set out in the CPC Central Committee's recommendations and a fundamental path for cultivating and developing new quality productive forces. I will now provide a brief overview of the related content in the draft outline from three angles: the foundation, the key and the pathway for the full integration between technological and industrial innovation.

First, we will consolidate the foundation for full integration by expanding the availability of high-quality scientific and technological outputs. In terms of planning, we will target the global frontiers of scientific and technological development, and strengthen the strategic, forward-looking and systematic layout of basic research. We will proactively deploy major national science and technology projects oriented toward 2035 to produce more landmark original achievements. On the capacity-building front, we will coordinate the layout of the country's strategic scientific and technological resources, including national laboratories, national research institutions, top-tier research universities, and leading scientific and technological enterprises. We will also promote interaction and coordination among various innovation entities and resources to improve system-wide innovation capacity. On the supply-demand side, we will focus on strategically critical areas and weak links in industrial and supply chains, and drive decisive breakthroughs in core technologies across entire chains in key fields. The goal is to build a modern industrial system that is self-supporting and risk-resilient, secure and reliable, and highly competitive.

Second, we will reinforce the principal role of enterprises in technological innovation, which is the key to achieving full integration. We will support enterprises in taking the lead in setting the agenda for scientific and technological innovation, increasing their participation in major national technological innovation decision-making, and designating their needs for the key generic technologies as a priority direction for national scientific and technological program funding. We will support enterprises in taking on the role of orchestrators of innovation activities, urge them to play a greater role in major national science and technology programs, and encourage them to carry out joint scientific and technological research with universities and research institutes. We will support enterprises in serving as the evaluators of research outcomes, make enterprise assessments an important basis for the acceptance review of scientific and technological projects, and ensure that those who apply the results are the ones who assess them.

Third, we will promote better application of scientific and technological advances to open pathways for full integration. On the institutional front, we will optimize the environment for application of scientific and technological advances by establishing a system to place scientific and technological outputs produced on the job under separate management and deepening reforms to grant researchers corresponding rights over these outputs. In terms of building platforms, we will advance the development of technology transfer and scientific and technological service systems, and coordinate efforts to build platforms and bases for scientific and technological innovation. We will also establish generic technology platforms and pilot-scale testing platforms to serve as a stronger bridge for the application of scientific and technological advances. In terms of policy support, we will increase the provision of inclusive policies. We will also guide higher education institutions and research institutes in authorizing the use of their proprietary scientific and technological advances by micro, small, and medium enterprises on a "use first, pay later" basis. We will develop a financial system for scientific and technological innovation, and refine policies for supporting the investment in projects at the early stages, in small enterprises, over long time horizons, and in advanced and core technologies. In terms of cultivating talent, we will advance the integrated development of education, science, technology and human resources. Orienting talent cultivation toward technological innovation, industrial development, and national strategic needs, we will foster positive interplay between indigenous technological innovation and the training of homegrown talent. Thank you.

Economic Herald:

We have noticed that China's marine economy surpassed 10 trillion yuan in 2025. The draft outline of the 15th Five-Year Plan proposes promoting the high-quality development of the marine economy. How do you view this arrangement? How will this be implemented going forward? Thank you.

Zheng Bei:

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

Yuan Da:

Thank you for your questions. As both a major land country and a major maritime country, China boasts a mainland coastline of about 18,000 kilometers and a sea area of nearly 3 million square kilometers. Strengthening the development, utilization, and protection of marine resources, and promoting the high-quality development of the marine economy are key priorities. Both provide important support for optimizing the national land spatial development pattern and advancing coordinated regional development.

A separate chapter is dedicated to this initiative in the draft outline of the 15th Five-Year Plan, which calls for increasing the capacity for sea management, stepping up efforts to build china into a strong maritime country, and forging a Chinese path of leveraging marine resources to achieve strength. In terms of the tasks laid out, the plan places emphasis on five key priorities.

First, we will place greater emphasis on innovation-driven development to advance high-level self-reliance and strength in marine science and technology. We will strengthen the strategic sci-tech forces in the marine sector, make more breakthroughs in key core technologies and equipment, and create more national heavyweights. We will improve the marine sci-tech innovation ecosystem, promote digital and intelligent transformation in the marine sector, and promote the development of marine education, science and technology, and talent.

Second, we will place greater emphasis on efficient coordination to optimize the layout of marine economic development. We will promote coordinated land-sea development planning and build marine economic development demonstration zones and modern marine cities as growth engines. We will also encourage coastal and inland regions to strengthen cooperation in the marine economy, actively promote the three-dimensional utilization of sea areas, and advance island development in a categorized and orderly manner. In addition, we will improve the support and guarantee system for deep-sea and polar exploration.

Third, we will place greater emphasis on industrial upgrading to strengthen, optimize and expand the marine industry. China ranks first in the world in shipbuilding and ocean engineering equipment, marine fisheries, and offshore wind power. We will further consolidate and enhance the advantages of the marine equipment manufacturing industry, while fostering and expanding emerging industries such as marine biomedicine. We will also raise the development level of modern shipping, marine tourism and other service industries, and accelerate the efficient utilization of marine energy and resources.

Fourth, we will place greater emphasis on harmony between humans and the sea to comprehensively improve the quality of the marine ecological environment. We will carry out a new round of comprehensive marine surveys, advance pollution prevention and control in key sea areas, and push forward shoreline improvement, ecological protection and restoration efforts. We will also strictly control land reclamation from the sea, strengthen the cleanup and resource utilization of marine waste, and enhance the stability of marine ecosystems.

Fifth, we will place greater emphasis on win-win cooperation to firmly safeguard maritime security and maritime rights and interests. We will actively promote the building of a maritime community with a shared future and play an active role in shaping international rules on ocean governance. We will also deepen international cooperation in marine scientific research and surveys, disaster prevention and mitigation, and the blue economy. In addition, we will strengthen risk prevention and legal efforts and improve the systems and mechanisms for safeguarding our maritime rights and interests. Thank you.

Xinhua Finance:

The draft outline of the 15th Five-Year Plan sets out the direction of development for the next five years. What measures and mechanisms will be put in place to ensure the effective implementation of all tasks and initiatives and the successful achievement of goals and targets? We have also noted that the current NPC is reviewing the draft National Development Planning Law. What role will this play in ensuring the implementation of the outline of the 15th Five-Year Plan? Thank you.

Zheng Bei:

Thanks for your questions. I will answer them. On March 5, while joining deliberations with his fellow deputies from the Jiangsu delegation, General Secretary Xi Jinping emphasized that formulating plans must be accompanied by implementation. Sound planning and strong implementation must go hand in hand. After this year's NPC reviews and approves the outline of the 15th Five-Year Plan, we will, in accordance with the arrangements of the CPC Central Committee and the State Council, further strengthen the full-cycle mechanism for plan implementation and push forward with a nail-driving spirit. We will focus on four key areas to ensure effective delivery.

First, we will strengthen the planning system to ensure effective implementation. To achieve the goals and tasks set out in the 15th Five-Year Plan, we will firmly establish and apply a correct approach to evaluating governmental performance. National special plans and regional implementation schemes will be developed and managed through a checklist approach. Key tasks in the outline will be further detailed and extended across areas, including technological innovation, Digital China, agricultural and rural modernization, equal access to basic public services, and Beautiful China. We will also make special arrangements for regional strategic priorities. At the same time, we will strengthen coordination across plans at all levels and categories, reducing their number while raising their quality, to ensure that major industrial development and key infrastructure projects align with the national strategic layout.

Second, we will strengthen implementation through annual plans and policy coordination. We will ensure the annual plans provide continuous support for the implementation of the outline by translating its objectives, targets, tasks and measures into detailed, concrete and actionable steps in annual plans. We will also refine the mechanism for coordinating policies to better implement the plan. This includes strengthening the provision and guarantee of public resources — including fiscal budgets, government investment and land supply — to support major strategic tasks, policy measures and projects defined in the plan.

Third, we will strengthen implementation through monitoring and evaluation. We will strengthen dynamic monitoring, midterm evaluation, and final assessment of planning implementation, keeping a close watch on changing circumstances and progress. We will regularly review the completion status of key goals and indicators, particularly binding targets, alongside the progress of priority tasks and major projects. Where gaps emerge, we will move quickly to strengthen and improve implementation, ensuring all goals and tasks are met on schedule.

Fourth, we will ensure implementation by strengthening the rule of law. Through decades of formulating and implementing five-year plans, upholding the principle of planning by law has proven to be one of the most valuable lessons learned. As you said, this year's NPC is currently reviewing the National Development Planning Law, which is a milestone event. This law codifies our Party's proven practices in using medium- to long-term planning to guide economic and social development under socialist market economy conditions. The enactment and implementation of the National Development Planning Law will, through legal means, clarify the responsibilities and specific arrangements for plan implementation, ensuring that national development planning proceeds smoothly along the path of the rule of law.

The blueprint has been drawn, and now is the time to forge ahead. We believe that, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, and through the concerted efforts of all sides, the draft outline of the 15th Five-Year Plan will be effectively implemented. Over the next five years, we will reach new heights in economic and social development, make major breakthroughs in strategic tasks of overarching importance, and lay a more solid foundation for basically realizing socialist modernization, delivering a result people can be proud of. Thank you.

Zhou Jianshe:

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

Nanfang Daily, Nanfang Plus:

The welfare of the elderly and children affects people's livelihoods and well-being, touching the lives of hundreds of millions of families and therefore drawing significant public attention. Could you share what policy measures the draft outline of the 15th Five-Year Plan contains in this regard? Thank you.

Zheng Bei:

The welfare of the elderly and children is indeed a major concern for many families. I'll hand over to Mr. Liu to respond.

Liu Dechun:

Thank you for your question. General Secretary Xi Jinping has noted that the elderly are our treasure and children are our future. Services for the elderly and children are a practical issue of great public concern, and a key area for investment in people during the 15th Five-Year Plan period. The draft outline of the 15th Five-Year Plan devotes two dedicated chapters to actively addressing population aging and building a childbirth-friendly society. Mr. Zheng has just outlined the goals for elderly and child services. I will now walk us through the specific tasks and measures.

In terms of actively addressing population aging, we have the following: The first priority is ensuring dignified care for the elderly in their later years. We will improve the mechanism for determining and adjusting basic pension insurance benefits, gradually raise the basic pension for urban and rural residents, and advance the development of long-term care insurance. We will also develop community-embedded elderly care services, home-based care beds, and mutual-aid care models. At the same time, we will renovate and upgrade 2,000 public elderly care facilities, raising the share of nursing-type beds to 73%. Second, we will support the elderly in continuing to contribute to society. We will strengthen the age-friendly renovations of public facilities, create diverse employment opportunities suitable to older workers, optimize age limits in employment and social security, and carry out the "Silver Age Action" initiative to create better conditions for elderly participation in social activities. Third, we will help the elderly to enjoy their later years to the fullest. We will strengthen preferential treatment and rights protection for the elderly, foster and grow the silver economy, expand the range of age-friendly products and services, and develop seniors universities to meet their cultural and intellectual needs, further enhancing their sense of fulfillment and well-being.

In terms of building a childbirth-friendly society, the draft outline sets out the following measures: First, we will strengthen maternity support. We will expand coverage of the maternity insurance system, raise the level of medical expense reimbursement for prenatal check-ups, regulate and promote the orderly application of assisted reproductive technology, and fully implement the maternity leave system. These efforts will provide better basic protection for families with newborns. Second, we will improve child care services. We will support kindergartens in developing integrated child care and preschool services, increase the supply of public child care slots, and encourage non-governmental providers to offer diverse and affordable child care services. We will also achieve full coverage of city-level comprehensive child care service centers and raise the enrollment rate of infants under 3 years old by 6 percentage points, making public-interest child care services more accessible and convenient. Third, we will reduce the burden of child-rearing. We will leverage policies such as special additional deductions for personal income tax, explore establishing a dynamic adjustment mechanism for child care subsidies, and improve family development policies. We will also increase support for multi-child families in education, housing and other areas, effectively reducing the costs of childbirth, child-rearing and education.

In addition, the draft outline dedicates a full section to optimizing and upgrading elderly and child services, setting out five key priority areas: elderly care institutions, community-based elderly care, the integration of medical care and elderly care, public-interest child care, and maternity medical services. By coordinating hard investment and soft development, we will optimize and upgrade capacity for elderly care and child care services, better serving hundreds of millions of families and caring for both the elderly and children. Thank you.

Zhou Jianshe:

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

Translated and edited by Wang Xingguang, Yang Xi, Li Congrong, Yan Xiaojing, Zhang Yuxin. Chen Xinyan, Liu Caiyi, Wang Ziteng, Xu Kailin, Zhang Tingting, Liao Jiaxin, Yang Chuanli, Wang Yiming, Li Huiru, Wang Qian, Wang Wei, Huang Shan, Li Xiao, Gong Yingchun, Zhou Jing, Ma Yujia, Li Sitong, Mi Xingang, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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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, 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, 2026

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this 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, member of the government work report drafting team and deputy director of the State Council Research Office, to introduce the Report on the Work of the Government and answer your questions.

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

Shen Danyang:

Good morning, everyone. I am very pleased to meet with you again to introduce the drafting of the Report on the Work of the Government. First of all, thank you for your interest in and coverage of the report and the government's work, as well as for your support for the work of the Research Office of the State Council.

The Central Committee of the Communist Party of China (CPC) and the State Council attached great importance to the drafting of the Report on the Work of the Government. 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 on multiple occasions, providing the basic principles for the drafting. Premier Li Qiang personally led the drafting of the report, convening executive meetings and plenary meetings of the State Council to study and discuss the report, requiring the comprehensive implementation of the decisions and deployments of the CPC Central Committee, and carefully refining the measures needed to put them into effect. Other leading officials of the State Council also provided instructions on the drafting and revisions of the report. The report fully implements Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and the guiding principles of the 20th CPC National Congress and the sessions of the 20th CPC Central Committee, closely focusing on refining and implementing the deployments of the Central Economic Work Conference. It is divided into four parts, totaling about 19,000 Chinese characters. This year's report focuses on promoting high-quality development, with an emphasis on ensuring a strong start, enhancing innovation, improving people's livelihoods and ensuring practical implementation.

First, ensuring a good start to the 15th Five-Year Plan period (2026-2030). This year marks the first year for fully implementing the guiding principles of the fourth plenary session of the 20th CPC Central Committee and the launch of the 15th Five-Year Plan. It is also a crucial year for the government to bridge past and future efforts. As such, the report emphasizes coherence in structure, content and tasks. In reviewing past work, the report summarizes the previous year's work and outlines the achievements of the 14th Five-Year Plan period (2021-2025). In introducing the goals and tasks of the 15th Five-Year Plan period, it provides the public with a clearly understanding of the expected level of development in the next five years and the key measures that will be implemented. Many aspects of the 15th Five-Year Plan have already been integrated into this year's key tasks.

Second, emphasizing reform and innovation. The report thoroughly implements the reform deployments of the third plenary session of the 20th CPC Central Committee, proposing multiple reforms in key areas. These include the formulation of regulations for a unified national market, zero-based budgeting reform, and a categorized approach to promoting university reforms. The report proposes many innovative measures to accelerate the development and expansion of new drivers of growth and to accelerate high-level self-reliance and strength in science and technology. These include creating new forms of intelligent economy, enhancing the quality and capacity of the service sector, promoting advances in original innovation and breakthroughs in core technologies. The terms "reform" and "innovation" appear 75 times throughout the document, reflecting their high priority. 

Third, prioritizing people's well-being. This has been a distinctive feature of the report in recent years. This year's report gives even greater prominence to safeguarding and improving public wellbeing. Proposed measures are more closely aligned with public concerns, such as emphasizing increased financial support for livelihoods, the formulation and implementation of plans for increasing incomes of urban and rural residents, and raising the proportion of government investment in public welfare projects. These efforts reflect a people-centered development philosophy and the government's commitment to delivering practical benefits, so that the public can have a stronger, tangible sense of gain.

Fourth, highlighting practicality and feasibility. The main tasks and policies outlined in the report have been proposed after thorough consideration, and aim to be proactive, practical, operable and feasible. The measures include establishing special fiscal-financial collaborative funds of 100 billion yuan to stimulate domestic demand, raising standards for public welfare subsidies, and integrating regular assistance into the coordinated implementation of the rural revitalization strategy. The report underscores the importance of making sure that officials have a correct understanding of what it means to perform well and act accordingly, insisting that achievements must be measured by their benefit to the people and through practical efforts.

In the drafting process, great importance was attached to seeking and incorporating suggestions from all sides. Premier Li Qiang personally presided over three symposiums. The drafting team held multiple thematic symposiums and conducted field research in various localities. The draft report was printed and distributed to all regions and departments to solicit feedback. The State Council website, together with many other websites, collected suggestions from netizens. The drafting team carefully analyzed and studied the feedback and adopted suggestions whenever possible. For example, concerns raised by netizens, such as addressing rat race competition, protecting platform workers' rights and interests, and ensuring primary-level medication access, all received positive responses in the report. The draft report, like last year's, strives to be concise and easy to understand, with a plain and down-to-earth writing style.

This morning, after Premier Li Qiang delivered the report to the fourth session of the 14th National People's Congress (NPC), preliminary feedback shows that the response from all quarters has been enthusiastic and highly positive. My colleagues who worked on drafting the report and I are deeply encouraged and inspired by this.

My colleague Mr. Chen and I are now happy to take questions from the media on the drafting process and related topics. Thank you.

Shou Xiaoli:

Thank you, Mr. Shen, for your opening remarks. We will now move to the Q&A session. Please identify the media outlet you represent before raising your questions. Please raise your hand to ask a question.

Economic Daily:

The year 2025 was an extraordinary year and also the concluding year of the 14th Five-Year Plan period. The report reviews the past year's work and summarizes the main achievements of the last five years. How should we view the scorecard China's economy has delivered over the 14th Five-Year Plan period? Thank you.

Shen Danyang:

Over the past year, the Chinese economy forged ahead against headwinds, pursuing dynamic, innovation-driven and high-quality development. The past five years were momentous and extraordinary.

The difficulties and challenges China faced during the 14th Five-Year Plan period were among the most severe in more than 40 years of reform and opening up. This is why people often say that over the past five years, we faced headwinds and challenges of a rarely seen magnitude. In response, the CPC Central Committee led the country to tackle these challenges with calm resolve, staying focused on running our own affairs well. This not only stabilized the broader economy but also drove new achievements in high-quality development. To be honest, for an economy of our size to steadily meet its growth targets and continue to grow stronger amid so many headwinds and challenges is something observers widely regard as no small feat — and genuinely remarkable.

Over the past five years, we have achieved major new advances in the cause of the Party and the country, with China's economic, scientific and technological capabilities, and overall national strength all reaching new heights. In the government work report delivered today, Premier Li Qiang summarized this progress with six "new" highlights. Here, I'd like to add a few more figures to illustrate China's economic performance.

In terms of economic scale and growth, over the past five years, our total economic output expanded from 103 trillion yuan at the end of the 13th Five-Year Plan period to over 140 trillion yuan, jumping by around 10 trillion yuan each year. The total increase over this period exceeded 35 trillion yuan, roughly the total output of a medium-sized economy. The average annual growth rate reached 5.4%, significantly outpacing both other major economies and the global average.

In terms of technological and industrial innovation, which is closely tied to the quality of economic development, major scientific breakthroughs have emerged at an accelerating pace over the past five years. The catalog of homegrown, independently controllable technologies has continued to grow. China's R&D spending intensity reached 2.8%, surpassing the OECD average for the first time. Its ranking in the Global Innovation Index rose from 14th in 2020 to 10th in 2025, and it became the first country in the world to hold more than 5 million valid domestic invention patents. A growing number of our technologies and industries are now running alongside or even leading their global counterparts. Take some familiar examples: in new energy vehicles, photovoltaic products, and high-tech ships, China ranks first in the world across R&D, production, and exports.

In terms of the social welfare generated by economic development, the past five years have brought the well-being of our people to a new level. For example, in early education, a free preschool policy was introduced, benefiting 14 million children. In child care, subsidies were distributed to the families of more than 30 million infants and young children. In education, the gross enrollment rate in higher education increased from 54.4% in 2020 to over 60%. The completion rate of the nine-year compulsory education exceeded 96%, and balanced compulsory education was achieved across all counties. In employment, the number of people lifted out of poverty who remained in work stayed above 30 million each year, and more than 60 million new urban jobs were created over the five years. Residents' income growth kept pace with economic growth. In health care, medical security was continuously strengthened. Nation-wide interprovincial on-the-spot settlement of medical bills, which did not exist five years ago, has now covered more than 400 million visits. Average life expectancy now exceeds 79 years, rising by 1.3 years over the five-year period. In elderly care, a unified national coordination system for basic old-age insurance funds was established. Basic old-age insurance benefits for urban and rural residents were increased annually, with a cumulative increase exceeding 53%, benefiting more than 180 million elderly people.

This solid scorecard fully demonstrates the steady progress of our country's economy, its resilience in moving forward under pressure, and its vitality in pursuing innovation-driven and high-quality development. For this reason, as we look ahead to the 15th Five-Year Plan period, we are better equipped to navigate risks and challenges, more firmly resolved to advance high-quality economic development, and more confident in the road ahead.

Thank you for your question.

Market News International:

The 2026 GDP growth target has been lowered to a range of 4.5% to 5%. What are the main considerations behind setting this growth target? Thank you.

Shen Danyang:

Thank you for your question. The economic growth target for this year has two parts: first, achieving a growth rate of 4.5% to 5%, and second, striving for better in practice.

This takes into account domestic economic operations and changes in the external environment, balancing needs and possibilities. It is an active and pragmatic goal that aims high while maintaining steady steps. Why do we say that? On one hand, this target fully considers the need to leave room for structural adjustment, risk prevention, and reform promotion this year, while also aligning with the long-term goals for 2035. It reflects the requirements to consolidate the foundation and exert full effort during the 15th Five-Year Plan period. The Fifth Plenary Session of the 19th CPC Central Committee clearly proposed that by 2035, China's per capita GDP should reach the level of moderately developed countries. During the 14th Five-Year Plan period, China's economy achieved an average annual growth of 5.4%. According to expert research and calculations, working backwards from the long-term goal of "per capita GDP reaching over $20,000 by 2035, doubling that of 2020," an average annual growth of over 4.17% in the next decade would be enough to achieve this goal. On the other hand, this target matches China's growth potential. Many economic organizations, experts, and think tanks at home and abroad have made projections that generally align with our expectations and targets. Among major economies worldwide, China's growth rate is also roughly the highest.

I would particularly like to point out that this target is a range target, which leaves room to cope with various uncertainties, but also enables local governments to set their own growth targets according to local conditions, and this helps guide all parties to focus their efforts on high-quality development. As China's external environment for economic development grows increasingly complex and volatile this year—with uncertainties likely to exceed expectations—a range-based growth target provides the flexibility needed to respond effectively to these challenges. Regarding this year's uncertainties in the external environment, we have all seen the recent international situation.

Finally, I want to emphasize that this "twofold target" contains "striving for better in practice," which demonstrates a proactive goal orientation and policy direction. This is based on two considerations. First, China's economy has strong resilience and vitality, with its structure continuing to improve and new quality productive forces growing rapidly. Second, this year we will continue to implement more proactive and effective macro policies, while also deepening reforms in a series of key areas, which will inevitably further unleash the potential for economic growth. Under such circumstances, we believe that as long as we make full and effective use of all favorable conditions, we can absolutely strive for better results, achieving effective qualitative improvement and reasonable quantitative growth. Thank you.

21st Century Business Herald:

The Government Work Report states that we will continue to implement more proactive and effective macro policies. The wording regarding the fiscal and monetary policies is the same as last year's. What are the specific manifestations of "more proactive and effective?" Thank you.

Shen Danyang:

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

Chen Changsheng:

Thank you for your question. Last year's Central Economic Work Conference already made it clear that this year we will continue to implement more proactive and effective macro policies. This morning, Premier Li Qiang's government work report made specific arrangements for this policy orientation.

Why are we continuing with more proactive and effective policies? Mainly for the following reasons: first, the situation requires it. As we can see, this year, the uncertainties in the external environment remain high, and the domestic pattern of strong supply and weak demand continues, with a certain gap in total demand. Therefore, it is necessary to strengthen policy adjustments and use the certainty of macro policies to cope with the uncertainty of the external environment. Second, there is policy space. From an international comparative perspective, China's current government debt ratio, especially that of the central government, is still relatively low. Conditions are still in place for cuts to reserve requirement ratios and interest rates. In addition, there is still room for innovation within the policy mix. At the same time, this policy orientation is also meant to convey the continuity of macro policy regulation to the whole society. On Sep. 26, 2024, the Political Bureau of the CPC Central Committee meeting arranged a package of incremental policies. This year's policy orientation is a continuation of that regulatory approach, with greater emphasis on expectation management, sending strong and clear macro policy signals to society by stepping up counter-cyclical adjustments.

Second, in what ways is a more proactive and effective approach being taken? This is reflected in three main aspects: First, the scale and intensity are notably large. As we can see, this year's deficit ratio is set at around 4%, which is historically high, and the deficit has grown by 230 billion yuan. The total scale of newly added government debt has reached 11.89 trillion yuan, which is also a record high. This year, general public budget expenditure is projected to reach 30 trillion yuan for the first time, an increase of about 1.27 trillion yuan from the 2025 level. Taken together, these three aspects reflect a more proactive fiscal policy. We will continue to apply an appropriately accommodative monetary policy in 2026, flexibly and effectively deploying a range of policy instruments, including cuts to required reserve ratios and interest rates to maintain adequate liquidity. We will also expand the use of new policy-based financial instruments, reduce corporate financing costs and support the real economy.

Second, we will place greater emphasis on precision and effectiveness. In terms of fiscal policy, there is a particular emphasis on deepening zero-based budgeting reform, redirecting funds that have been spent inefficiently or ineffectively to more productive areas. This approach already yielded results last year, and the push will be stepped up further this year. In addition, the spending structure will be further optimized, improving the allocation of existing assets and resources, and directing more fiscal funds to boosting consumption, investing in people, and safeguarding their livelihoods. In terms of monetary policy, we will also optimize structural policy tools and strengthen support for expanding domestic demand, technological innovation, and micro-, small- and medium-sized enterprises.

Third, policy innovation will be prioritized. This includes not only innovation in policy tools, but also innovation in policy combinations. For example, we will establish a special fiscal-financial coordination fund of 100 billion yuan to boost domestic demand. This is an innovative measure designed to fully leverage the role of fiscal-financial coordination, supporting private investment and consumption expansion through mechanisms such as loan interest subsidies, financing guarantees, and risk compensation. Another example is the emphasis on leveraging intangible assets such as data and intellectual property to broaden channels for credit extension.

Overall, this year's policies are bold, well-targeted and innovative. We look forward to seeing these macroeconomic policies implemented with force and effect, sustaining the positive momentum in economic and social development and getting the 15th Five-Year Plan off to a strong start. Thank you.

Reuters:

The 15th Five-Year Plan proposed that in the next five years, the resident consumption rate should be significantly improved. May I ask what specific measures the government will take in 2026 to boost consumption, especially resident consumption? In addition, how can the current structural problem of "strong supply, weak demand" be fundamentally solved? Thank you.

Shen Danyang:

I'll take this question. For the second consecutive year, the government work report has listed expanding domestic demand as its top priority, with particular prominence given to the "implementation of special initiatives to boost consumption." This year's report proposes to boost consumption by both stimulating residents' willingness to spend and rolling out pro-consumption policies, addressing at a fundamental level the longstanding problem of "strong supply, weak demand." In terms of specific measures, we can summarize them neatly with a four-part formula: addition, subtraction, multiplication and division.

"Addition" means boosting demand on the demand side through income growth, while expanding the supply of high-quality products and services on the supply side. This year, for the first time, an income growth plan for both urban and rural residents has been proposed. A series of policy measures will be introduced to increase the incomes of low-income earners, increase residents' property income, and improve the remuneration and social insurance systems. The goal is to fill more residents' wallets and fundamentally boost consumption capacity. The so-called "strong supply, weak demand" phenomenon is not entirely the case in the consumption sector. For example, consumption supply also has weaknesses. On the supply side, efforts are needed to cultivate new drivers of consumption growth, roll out measures to boost service consumption and deliver public benefits, and accelerate pilot programs for new consumption formats, models, and scenarios. Priority sectors include cultural tourism, the automotive aftermarket, sporting events, the performing arts economy, and emotional and experiential services — all consumption scenarios with strong potential to meet evolving demand. Meanwhile, tailored measures will target lower-tier markets to upgrade consumption channels, drive scenario innovation, fast-track the expansion of brand chain networks, and unlock their untapped consumption potential.

So, what does "subtraction" mean? It means reducing residents' worries about the future to further unleash consumption potential. For example, this year, China will step up guarantees in areas such as health care, elderly care, and childbirth and parenting, raise medical insurance subsidy standards, and develop inclusive child care services. These measures are expected to make the public more willing and ready to consume.

"Multiplication" refers to the synergistic coordination of fiscal and financial policies to generate a multiplier effect and better drive household consumption. Last year, trade-in programs for consumer goods boosted sales of related products to 2.61 trillion yuan, benefiting 366 million people. This year, we will further step up support for offline physical retail by focusing on targeted subsidy areas — specifically, supporting trade-ins of key consumer goods with broad market reach and strong spillover effects, such as cars, refrigerators, washing machines and televisions. New products, such as smart glasses, will also be added to the subsidy list, ensuring that more people can receive subsidies and upgrade their purchases. At the same time, these efforts will help foster new growth tracks, new drivers of growth and new quality productive forces. This year, we have also established a new 100 billion yuan special fund for fiscal and financial coordination to promote domestic demand — as mentioned by both of us just now — marking a new policy initiative this year. The optimized implementation of loan interest subsidies for service-sector businesses and personal consumption loans has expanded the scope of support and raised the subsidy cap, delivering more tangible benefits to consumers.

The last is "Division." "Division" means breaking down barriers, removing obstacles, eliminating various restrictive measures on consumption, and facilitating a smoother consumption cycle. For example, targeted measures will be taken to address hidden barriers in the consumption market, simplifying the approval process for promotional activities. In some cities, we will further ease vehicle purchase restrictions, issue more car purchase quotas, support eligible street-front businesses in conducting outdoor operations, and more. These measures are also being actively promoted in various places.

The strong momentum in household consumption growth this year has already begun to emerge in the first two months. During the just-concluded Spring Festival holiday in particular, the national consumer market proved exceptionally vibrant, with numerous bright spots. The average daily sales revenue of related industries during this year's Spring Festival holiday increased 13.7% compared to the same period last year, marking a notable rise. Retail sales of goods continued to grow, demand for tourism and cultural services remained strong, and household consumption stayed active. These figures suggest that China's consumer market is poised to demonstrate strong endogenous growth momentum this year.

Thank you for your questions.

CCTV:

I have a question regarding people's well-being. We have noticed that this year's government work report has introduced many new policy measures in areas such as education, health care and social security. Could you please elaborate on this? Thank you.

Shen Danyang:

I'll answer this question. People's well-being is a subject of great public concern. As I mentioned just now, this year's report places special emphasis on it. Ensuring and improving people's well-being is a long-term endeavor. There is no finish line, only a succession of new starting points. Judging from the review and discussion of the report by NPC deputies and members of the National Committee of the Chinese People's Political Consultative Conference over the past two years, livelihood-related revision suggestions have been the most numerous. This reflects how much people expect progress on well-being issues each year. This year's report focuses on addressing people's most pressing concerns, proposing more robust and compassionate measures, while giving greater prominence to the livelihood section and further underscoring its importance. Due to time constraints, I can only list a few.

In terms of education, the report focuses on improving fairness and quality, covering education work at all levels and of all types. For example, regarding preschool education, this year we will continue to implement the policy of one year of free preschool education — commonly referred to as free enrollment in the senior class of kindergarten. How will the resulting loss of revenue for kindergartens be addressed? Subsidies will be provided by both central and local government budgets, with the central government bearing the larger share. This year, funding allocated to support preschool education development has increased significantly, rising by 37.8%, to ensure the smooth implementation of this people-oriented policy. As another example, regarding senior secondary education, this year's report clearly states that the supply of regular senior high school places will be increased. Specifically, in county towns and central urban areas with sustained net population inflow, regular senior high schools will be planned and built on a rolling annual basis. In areas facing temporary shortages of school places, priority will be given to renovating and expanding existing teaching buildings, student dormitories and cafeterias. In fact, some localities had already made arrangements for this work at the start of the year. If you have been following the local "two sessions," you may have noticed that many provinces have taken action on this front. For example, Guangdong has proposed adding more than 200,000 regular high school places, while Hunan plans to expand the number of high-quality regular high school public places by 80,000. These measures will significantly increase students' opportunities to receive high-quality senior secondary education. This is a genuine, concrete matter that directly affects people's well-being.

In terms of health care, the report has put forward a range of supportive measures. For example, strengthening medication coordination at the primary care level means improving the essential medicine list, optimizing the channels for medicine supply and coordination between primary and higher-level medical institutions, and making it more convenient for people to access medicines near their homes. Another example is that the report has, for the third consecutive year, outlined plans to support the development of innovative drugs. This year, the government will strengthen coordinated policy support across the full chain, further address difficulties such as the limited hospital access for innovative medicines and better meet people's diversified medical and medication needs.

In terms of social security, this year's report has proposed continuing to raise the minimum standard for basic pensions for urban and rural residents. This policy will benefit more than 180 million elderly people. The central government will allocate 1.25 trillion yuan in subsidy funds to ensure pensions are paid in full and on time. To address the inadequate protection of rights and interests for workers in new forms of employment, this year's report has proposed steadily and orderly expanding the pilot program for occupational injury protection. This year, the pilot will be expanded to cover all 31 provinces and the Xinjiang Production and Construction Corps, with platform enterprises in the ride-hailing, instant delivery and same-city freight sectors also brought within the pilot scope. This will help ensure the occupational safety of more workers, including food delivery couriers and ride-hailing drivers.

There are many other measures which I will not go into one by one here. Thank you.

Beijing Youth Daily:

This year's government work report proposes promoting quality and full employment. We have also noticed that many young people feel considerable pressure in the job market. Overall, how do you assess the employment situation this year? What measures will be taken to ease employment-related anxiety, particularly among young people? Thank you.

Shen Danyang:

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

Chen Changsheng:

Thank you for your question. This is a very important issue. Employment is the foundation of every family's livelihood. When everyone has a job, households can thrive and society as a whole can prosper. This year's government work report once again places employment in a prominent position, prioritizing employment stabilization as the top task among the "four priorities for stability," and puts forward a series of policy measures. These measures mainly focus on targeting overall scale, structural alignment and key demographic groups.

First, in terms of overall scale, the focus is on expanding employment capacity. This year, around 20 million people are expected to enter the job market. After deducting positions vacated through retirements and other reasons, approximately 12 million new urban jobs will still need to be created. Based on the relationship between economic growth and job creation in recent years, particularly over the past two years, achieving this level of employment will require economic growth of around 4.5% to 5%. This was an important consideration in setting this year's economic growth target. Stable economic growth is the foundation for stabilizing employment. At the same time, we will implement initiatives to stabilize jobs, expand employment capacity, and improve job quality. Targeted support will be provided to labor-intensive industries and sectors that generate large numbers of jobs. Temporary policies will continue, including job retention subsidies for enterprises that avoid or minimize layoffs, as well as job stabilization and expansion loans for small- and medium-sized enterprises (SMEs).

Second, structurally, the focus is on improving job matching. As many of you know, structural issues have become more prominent in the current employment landscape. Broadly speaking, there are two main types of mismatches. One type is a skills mismatch. Many industries are developing rapidly, but the skills of some workers do not match the needs of those industries. For example, market data show strong demand for positions related to artificial intelligence, yet the supply of talent remains limited, with a demand-to-supply ratio of about 3.5 to 1. The ratio stands at about 5.1 to 1 for new energy technology engineers and 5.2 to 1 for technical professionals in the robotics industry, pointing to significant talent shortages. Addressing the skills mismatch requires a stronger focus on education and training. In the short term, the priority is to deepen cooperation between industries and enterprises, carry out targeted skills training and build a number of public training bases. This year, government-subsidized vocational training is expected to reach over 10 million participants. At the same time, we will optimize the discipline and program structure of universities to better align academic programs with practical needs. We will also implement initiatives to accelerate the development of urgently needed disciplines and majors, thereby helping address the skills mismatch. Another challenge is the mismatch in employment expectations. Many manufacturing industries, as well as services sectors such as household services and elderly care, face significant labor shortages. However, factors such as salary levels, career development prospects, and social recognition of certain occupations have limited the supply of workers. For instance, estimates from various sources suggest that the domestic service sector faces a shortage of more than 20 million workers. This year, several new measures will be introduced. The domestic service industry has long been dominated by an intermediary-based system. Going forward, efforts will be made to actively shift toward an employee-based model, allowing domestic service workers to become formal employees. This will enhance job stability and establish clear responsibility mechanisms. Policy support will also be strengthened, including expanded tax incentives and training subsidies.

Third, in terms of key groups, particular emphasis will be placed on young people. College graduates, migrant workers, and people facing employment difficulties are all key groups in employment work, with young people being the top priority. As everyone knows, employment for young people is of critical importance to families. This year, the number of college graduates is expected to reach a new record high of 12.7 million, and a series of measures will be taken to support their employment. For example, we will expand policy-supported positions, make better use of staffing resources in government agencies and public institutions, and maintain stable recruitment levels in these sectors. We will also encourage state-owned enterprises to gradually raise their campus hiring share. At the same time, support policies for employment in private enterprises will be strengthened, including tax incentives, training subsidies and loan interest subsidies. The one-off job expansion subsidy policy will also be extended. In addition, we will actively develop transitional positions, such as research assistant and teaching assistant posts, to accommodate the trend of some young people taking more time before entering full employment. We will also step up support for entrepreneurship. The rise of artificial intelligence has lowered the barriers to starting a business and created opportunities for would-be entrepreneurs. Therefore, we will strengthen support for entrepreneurship, including one-off start-up subsidies, higher ceilings on entrepreneurship guaranteed loans with greater government interest subsidies, and free or low-cost access to business incubation spaces. Employment affects every household. It takes the combined efforts of government, society and families to help young people find opportunities to apply their talents and realize their potential. Thank you.

ThePaper.cn:

This year, what targeted measures have been taken to energize various types of business entities and support enterprises in achieving better development? For example, what measures have been taken to clear arrears owed to enterprises and support platform enterprises in achieving better growth? Thank you.

Shen Danyang:

I'll answer this question. Last year, the State Council introduced a series of targeted policy measures to energize business entities, as you mentioned. These measures focused on pressing concerns of enterprises, especially SMEs and private enterprises, addressing issues such as overdue payments and the imposition of arbitrary charges, quotas, and fines. These policies have proven highly effective. This year's government work report once again called for fully stimulating the vitality of various business entities, with a sustained focus on key issues of concern to enterprises and targeted measures to reduce burdens, improve services, and drive development. Three priority tasks have been identified to this end.

The first priority is to step up efforts to address the problem of overdue payments to enterprises. Last year, a nationwide campaign was launched to accelerate the clearance of overdue payments to enterprises, helping resolve a number of long-standing arrears cases. This year, we will continue to coordinate the allocation of local government special-purpose bond quotas to support arrears clearance, with financial policies playing a stronger role. At the same time, complementary policies will also be introduced under the Regulation on Ensuring Timely Payments to SMEs, urging central and state-owned enterprises to take the lead in meeting payment obligations, strengthening standardized management over bills and electronic accounts receivable certificates, and driving better outcomes in arrears clearance.

The second priority is to promote mutually beneficial development among platform enterprises and the operators and workers within those platforms. Online platforms have become a vital foundation for small merchants and enterprises to run businesses and launch ventures. Together with platform enterprises, in-platform operators and workers form the broader platform economy ecosystem. This relationship should be built on win-win development. This year, relevant national departments will make full use of newly introduced measures for supervising rules on online trading platforms, continue to regulate platform fee practices, and draw up measures to protect the rights and interests of workers in new forms of employment. They will urge platform enterprises to further strengthen self-discipline and optimize services to genuinely safeguard the lawful rights and interests of in-platform operators and workers and boost innovation-driven development.

The third priority is to provide targeted support for self-employed individuals, tailored to different types and categories of businesses. There are numerous self-employed individuals in our country. They not only play an important role in boosting the economy and promoting innovation and entrepreneurship, but also directly create jobs for nearly 300 million urban and rural residents. This is a very large number. Just like small neighborhood restaurants and shops, these modest businesses truly serve thousands of households and are very important for stabilizing employment and ensuring people's livelihoods. Relevant departments will this year accelerate efforts to nurture "famous, special, excellent and new" self-employed businesses. They will continue to refine the classification of individual businesses by category and provide targeted services such as startup assistance, skills training, digital transformation, and financing and credit. These efforts will help address difficulties in transformation and upgrading, access to financing, and market expansion.

Thank you for your question.

Beijing Radio and Television Station (BRTV):

Elderly care, public-interest child care services and related work affect thousands of households. I would like to ask what support measures are outlined in this year's report to improve the elderly and child care service systems? Thank you.

Shen Danyang:

I'll take this question. Elderly and child care services are a top concern for every family and represent a key intersection of improving people's livelihoods and driving development. This year, netizens submitting suggestions for the government work report made numerous recommendations on this issue. I looked through a number of netizens' suggestions verbatim, and there were many. Since time permits, let me share some of the netizens' suggestions on elderly care and child care. One example, raised by a netizen, concerns care for elderly people with disabilities or dementia. The netizen said: "My father has Alzheimer's disease and is severely unable to care for himself. As an only child, if I stay at home to care for my father, I cannot work. If I go out to work, I'll have to send my father to a nursing home, but I cannot afford the costs. I feel extremely stressed and anxious, and I hope the country can improve elderly care for people with disabilities or dementia."

Regarding child care, a netizen named "Mr. Cheng" said, "I was born in the 1990s, and now become a parent to a 1-year-old child. My wife and I are both working full-time, and our parents are too old to care for a baby at home. Having to work, my wife and I cannot take care of the baby around the clock. Also, we hesitate about existing day-care centers, for the fear of possible negative impact on the child's growth. We hope the government will provide safer and more convenient child care services to further relieve the burden on young parents." There are actually many suggestions from netizens regarding these issues.

In this year's government work report, Premier Li Qiang gave a positive response to the concerns of Chinese netizens such as elderly and child care, proposing a series of supporting measures. Regarding elderly care, the number of Chinese people aged 60 and above has currently reached 323 million, accounting for 23% of the country's total population, nearly one quarter. As the problem of population aging becomes more serious, the demand for elderly care services is growing rapidly, especially care for functionally impaired elderly people, which is becoming a rigid need for more and more families. This year's government work report set forth plans for increasing the supply of public-interest elderly care services, improving elderly care services in rural areas, and providing elderly care service vouchers to seniors with moderate or more severe functional impairments. These will further improve the supply structure of elderly care services, strengthen the support of land, funds, talent and other factors, enhance the quality and efficiency of elderly care services, and better meet people's diverse needs. We will also regulate the development of a batch of high-quality, high-level public-interest supportive elderly care institutions, as well as a batch of chain-operated community-embedded elderly care brands, under models like "publicly built, privately operated" or "privately run, publicly sponsored." This will keep some private enterprises motivated. The State Council has made it clear that in the 15th Five-Year Plan period, China will support the construction of 2,000 county-level comprehensive elderly care service management platforms, promote the coverage rate of regional elderly care service centers to exceed 80% in townships and urban sub-districts, and put in place a three-tiered elderly care service network at the levels of county, township and village. This year's report also proposed to draw up measures to promote high-quality development of the silver economy. Next, relevant departments will launch a three-year action plan to advance the development of the silver economy, further promoting coordinated development of elderly care programs and industries.

Regarding child care, this year's report laid out requirements for lowering "three costs." What are the "three costs"? They are the costs of childbirth, child-rearing and education. How to lower the "three costs" becomes a focus in this year's report. Last year's government work report set forth a policy to distribute child care subsidies, which had benefited more than 30 million infants. This year, the central government has allocated nearly 100 billion yuan in child care subsidy funds. The application and review procedures will be further streamlined to ensure that families receive subsidies upon application, as soon as their babies are born. This year, we will also expand demonstrations and trials for subsidized child care services, and provide support for public-interest child care services and integrated nursery and child care services. The country will create 150,000 new public-interest child care slots nationwide. This year's report also made many other arrangements regarding child care, such as parental leave, maternity insurance, and housing support. The aim is to make having and raising children more secure and pleasant. Thank you.

South China Morning Post:

In 2025, China's consumer price index (CPI) was in line with that of the previous year, and the country has set its 2026 CPI growth target at around 2%. What are the main considerations? What policies and measures will be taken to promote a moderate rebound in prices?

Shen Danyang:

Regarding prices, let's have Mr. Chen answer your questions.

Chen Changsheng:

Thank you for your questions. In fact, we have already been implementing relevant policies to address the declining prices for some time. Last year, we adopted some measures in expanding domestic demand, improving supply, and curbing involution-style competition comprehensively. These efforts have achieved some results so far. If you look at the overall price data for 2025, you will find that CPI has gradually stabilized, the decline in the producer price index (PPI) has obviously narrowed, and the more comprehensive GDP deflator has also improved, suggesting that price momentum is improving.

This year, we continue to set the CPI growth target at around 2%. I think this approach considers both the need to guide public expectations and the realistic possibilities, demonstrating emphasis given on the price issue. Apart from the CPI growth target, there are also two important statements in this year's government work report. The first sentence is "By better balancing total supply and demand, we will steer general price levels back into positive territory and produce a reasonable, modest rebound in consumer prices to facilitate a virtuous cycle in the economy." And the second is stated in the monetary policy section, saying "Promoting steady economic growth and an appropriate rebound in prices are key considerations underpinning our monetary policy." How should we interpret this target and these two important statements? I think they carry at least three layers of meaning.

First, the term "price" appears twice in the relevant statement. The first mention refers to the overall price level, a comprehensive measure usually captured by the GDP deflator, which covers consumption, investment and production. The second refers to the consumer price, commonly known as the consumer price index (CPI).

Second, the report highlights the approach to achieving this goal. On the one hand, it emphasizes improving the balance between aggregate supply and demand. On the other hand, it stresses the need to fully leverage monetary policy and strengthen aggregate management. In pursuing this goal, greater importance is placed on managing aggregate demand at the macro level rather than relying on micro-level interventions.

Third, how should this goal be understood? From a microeconomic perspective, or from the standpoint of individual consumers, lower prices are naturally welcome, as they allow people to buy more goods with the same limited income. However, if prices continue to decline for a prolonged period, problems may arise. Many businesses may find it difficult to sell their products, leading companies to cut investment and reduce hiring. In such circumstances, consumers, who are also workers, will face growing pressure on employment and income growth.

Therefore, the goal highlights the need for policy efforts at the macro level. It aims to promote an increase in the general price level, ensure that nominal GDP grows faster than real GDP and facilitate a steady rebound in the producer price index (PPI), thereby improving corporate profitability and promoting a moderate and reasonable rise in consumer prices. It seeks to support stronger employment and income growth while keeping the prices of essential consumer goods relatively stable. These measures are ultimately intended to foster a virtuous cycle in the economy. This reflects the underlying policy logic behind the goal.

Of course, the issue is complex and requires a package of policy measures. First, more proactive macroeconomic policies should be adopted to expand domestic demand, boost consumption and increase effective investment, so that aggregate demand can grow at a reasonable pace. Second, supply-side reform should continue, particularly efforts to address rat race competition. This includes measures such as controlling production capacity, strengthening standards-based guidance, and improving price governance, with a particular emphasis on standards. In many industries, technologies have advanced through several generations, yet some producers still rely on outdated technologies. Upgrading standards will help expand the supply of quality products while phasing out outdated ones. As a result, enterprises will devote more efforts to improving product quality rather than engaging in excessive price competition.

Another priority is to promote the stabilization of asset prices. This involves maintaining the healthy development of the capital market and working to stabilize the real estate market. These efforts will help further repair the balance sheets of households and enterprises, thereby creating better conditions for consumption and investment.

In addition, reforms should be advanced in several key areas, particularly price reform. In many sectors, supply is actually available. However, if the pricing mechanism does not function properly, business models cannot operate effectively. As a result, the supply of quality products may remain insufficient, which in turn suppresses consumption.

In short, through a series of policy measures, the aim is to achieve the price targets and improve what are often referred to as the "three pockets" — better employment and income for households, improved profitability for enterprises, and a stronger fiscal position for the country. Thank you.

National Business Daily:

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

Shen Danyang:

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

Chen Changsheng:

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

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

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

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

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

Cover News:

The Government Work Report for this year includes a dedicated section on enhancing the capacity and quality of the service sector. In light of this, could you elaborate on the considerations behind this focus? What policies will be introduced to promote the development of the service sector? Thank you.

Shen Danyang:

I'll answer this question. In recent years, China's service sector has developed rapidly. However, both from an international perspective and in light of domestic development trends, the sector's capacity, quality, and efficiency remain insufficient, leaving significant potential to be tapped. For example, with the widespread application of artificial intelligence technologies innovative models integrating culture, tourism, and sports, such as the Village Basketball Association and Jiangsu Football City League, are becoming increasingly diverse. An increasing number of emerging types of service models will become new growth drivers and a major source of employment. Another example is the software and information technology services sector. Data from relevant research institutions indicate that the value added in this sector is projected to grow at an average annual rate of around 12% over the next five years. This growth could generate an additional 5.6 trillion yuan in value, with the market for artificial intelligence application services alone expected to surpass 800 billion yuan.

While there are abundant market opportunities for the development of the service sector and promising development trends, these alone are not enough. Effective policy guidance and strong government support are essential, and the key is to enhance the capacity and quality of the service sector. These are the measures proposed in this year's Government Work Report for the service sector. So, how should we understand the goal of "enhancing the capacity and quality?" "Enhancing the capacity" refers to bolstering development capacity, with a focus on increasing the supply of high-quality services and fostering more competitive business entities. This aims to bridge the gap between supply and demand. "Enhancing the quality" is about improving development quality and efficiency. It aims to boost professionalism, standardization, and added value, avoid inefficient and homogenous competition, and ultimately promote the high-quality development of the service sector.

How to do this specifically? It is believed that we should not take a one-size-fits-all approach, but instead clarify differentiated development directions tailored to the characteristics of different types of service sectors. From the perspective of sectors, the focus is on two main areas. One is to "ensure that producer services in different sectors become more specialized and move toward the higher end of the value chain". This year's Report proposed to "press ahead with trials to promote integrated development of advanced manufacturing and modern services," which reflects this requirement. The other is "boost the quality, diversity, and accessibility of consumer services". This year, in line with the requirement of investing in people, efforts will focus on sectors where supply–demand imbalances are most acute, supporting the expansion of better-quality services geared toward consumption upgrading, so as to better meet the diverse needs of the people. Just now, Mr. Chen talked about investment. These areas of service-sector development also present abundant investment opportunities.

In terms of policy measures, there are three priorities. The first is to support technology empowerment, focusing on addressing technology and scenario application problems, and promoting the development of high-value-added, innovative service industries. For example, we'll support the application of artificial intelligence in information technology services, human resources services, and the integration of culture, tourism, sports, and commerce. Some supportive measures will be introduced in this regard. The second is to provide policy support. This mainly involves using fiscal, financial, and factor-guarantee policy tools to provide support, and further improving the standards system for the service sector. The third is to advance reform and opening up. This involves further removing institutional and mechanism barriers that constrain the development of the service sector, vigorously developing trade in services, and promoting the orderly opening up of the service market. Thank you.

Zhinews of Shenzhen Satellite TV:

Currently, the AI Plus Initiative is accelerating its integration with production and everyday life. The Government Work Report has made arrangements for the AI Plus Initiative for three consecutive years. What considerations are behind this? This year's Report proposes to advance and expand the AI Plus Initiative. What new measures will be taken? Thank you.

Shen Danyang:

I'd like to invite Mr. Chen Changsheng to answer these questions.

Chen Changsheng:

Thank you for your questions. This is a very hot topic. It is fair to say that today's artificial intelligence is evolving by the day. Many companies talk about weekly iterations, updating on a weekly basis, and applications are rapidly expanding. All of us here, and countless internet users, have experienced this themselves — from kung fu robots to today's AI-driven shopping. During the Spring Festival, I also used AI to generate a New Year greeting video and sent it to my parents. I guess many people did the same. Over the Spring Festival holiday, the nationwide Token (word unit) call volume grew exponentially, with a wide range of applications. It can be said that AI technology is now moving from the "digital screen" to the "real world," shifting from "being able to chat" to "being able to get things done." It should be said that AI is accelerating the reshaping of business models, production organization, and the ways we produce and live. Premier Li Qiang has outlined plans in the Government Work Report for three consecutive years. This year, for the first time, he proposed creating new forms of smart economy. This is a brand-new concept, which is essentially about seizing the opportunities brought by AI development, expanding the breadth and depth of AI empowerment across all sectors, opening up new space for economic growth as quickly as possible, cultivating new models, and strengthening new drivers of growth. Specifically, this year's Report contains a dedicated section explaining this issue, and it also lays out plans for emerging industries. It can be understood from the following three aspects.

First, we will expand large-scale applications and strive to speed up the advance of the AI Plus Initiative. For example, in terms of hardware and smart terminals, it is necessary to continue implementing support policies for trade-in programs, so that AI smartphones, AI laptops, AI cockpits, intelligent connected vehicles and other such products can further enter every household. From the software perspective, we should accelerate the development of intelligent agents. Some see this year as the beginning of a new era for intelligent agents, so we should work to scale up the industry and cultivate new business forms empowered by intelligent technologies. In addition, from an industry perspective, it is crucial to accelerate vertical applications by building a batch of pilot application bases, so that AI can be deeply and rapidly integrated with vertical fields such as industry, agriculture, education, healthcare, and technology. In terms of the approach to advancement, we need to address our long-standing tendency to value hardware over software, and treat the two equally. We should also avoid the old approach of "project-based + privatized" deployment. Instead, we should support the development of the public cloud and provide enterprises with universal tools for "cloud adoption, data utilization, and AI empowerment," so that the "flywheel" of artificial intelligence applications can spin faster.

Second, we will deepen open-source development. Since last year, tremendous changes brought by open-source models such as DeepSeek have already become evident. Therefore, we should speed up the building of open-source communities, accelerate the development of open-source datasets and toolkits, and cultivate a batch of high-quality open-source projects in AI, large models and embodied intelligence. In addition, we should reduce the cost of applying large models for SMEs, and encourage local authorities to provide support in terms of computing power, models and token usage. Additionally, we should foster an open-source culture, make good use of the national AI industry investment funds, and support AI startups. This will help lower costs and accelerate the development of AI innovation and entrepreneurship.

Third, we will consolidate the foundation for AI development. First, foundational infrastructure should be reinforced. There is a saying online nowadays that the ultimate future of AI is energy. We must leverage the strength of our national power grid system and further develop new infrastructure projects on hyper-scale intelligent computing clusters and coordinated development of computing capacity and electricity supply. This is from the perspective of hardware. From a technological standpoint, we will further support the enhancement of large model capabilities and computing power, adopt multiple approaches to develop embodied intelligence, world models and other related technologies. This requires greater openness in technological development and comprehensive exploration across various dimensions. We should accelerate the cultivation of the "model-chip-cloud-application" ecosystem to enhance our forward-looking competitive capabilities, expedite the development of AI innovation hubs to create a strong force to attract AI technologies, talent and other key elements.

In summary, AI is opening up infinite possibilities for us, and yet it may also bring us challenges in the process. Therefore, the next step is to accelerate the improvement of AI governance, enhance international dialogue and cooperation, and steer AI toward a beneficial, safe and fair direction. We also anticipate that AI will unleash greater momentum for the emergence of new growth drivers. Thank you.

N Video at Southern Metropolis Daily:

This year's government work report also proposed a number of ambitious tasks and measures. What is being done to ensure these measures are implemented and deliver tangible results? Thank you.

Shen Danyang:

This morning, after Premier Li delivered the report to the fourth session of the 14th NPC, as mentioned earlier, the document has received extremely enthusiastic responses and high acclaim from all sectors. A good report requires good implementation. Regarding the tasks and measures laid out in the report, the State Council has already established a mechanism to promote their implementation, while this year the focus will be on the following aspects to ensure their effective execution:

First, we will refine the division of labor and tighten responsibilities. As soon as the "two sessions" conclude, the State Council will promptly convene an executive meeting to assign responsibilities for the key tasks and measures set out in the report, and hold a plenary meeting for further mobilization and deployment. Specifically, many important issues will be included in the agenda of this year's State Council executive meetings and the premier's office meetings for discussion. All departments will establish task ledgers, further specifying responsible units, main measures and completion deadlines to ensure that each task is implemented and closed one by one.

Second, we will strengthen scheduling and boost supervision. The General Office of the State Council will conduct quarterly reconciliations and supervision of the key tasks outlined in the report, tracking the implementation progress. We will intensify supervision on slow-moving tasks to ensure orderly advancement, while encouraging the completion of tasks ahead of schedule whenever possible. 

Third, we will strengthen research and studies and enhance effectiveness. As the lead drafting unit of the government work report, the State Council Research Office will continue to focus on the implementation of the work report in our research work. This year, we will continue to strengthen research and studies on the implementation of the government work report. In addition to concentrated research, we will also enhance follow-up research, emphasize coordination between research and inspections, form a closed-loop for promoting the implementation of the government work report, and improve actual outcomes.

To better promote the study, understanding and implementation of various policy measures in this year's government work report across society, the State Council Research Office has, as usual, organized the compilation of the guidebooks "Guided Reader," "Study Q&A" and "Policy Hot Topics Face to Face," which will be published soon by the People's Publishing House and China Yanshi Press. We would also like to take this opportunity to invite all reporters to continue following and publicizing this issue. Thank you.

Phoenix TV:

This year's government work report proposes promoting foreign-funded enterprises in China to reinvest in China and expand local production. What specific considerations and measures are there in this regard? In addition, what policies will be introduced next to attract foreign investment? And what new opportunities are there for foreign businesses investing in China? Thank you.

Shen Danyang:

I will answer these questions. China has always paid great attention to attracting and supporting foreign investment in the country. As of the end of last year, foreign investment in China in actual use had exceeded 700 billion yuan for 16 consecutive years, remaining among the top globally. Moreover, the revenue and total profits of foreign-funded enterprises in China have generally shown a growth trend. Last year, foreign investment in China from many countries and sectors saw significant increases. For example, Switzerland grew by 66.8%, the United Kingdom grew by 15.9%, e-commerce services grew by 75%, medical devices grew by 42.1%, and aerospace grew by 22.9%. And provinces such as Guangdong, Hainan, Anhui and Shanxi all posted double-digit growth in utilizing foreign investment.

This year's report suggests promoting foreign-funded businesses to reinvest in the country and expand local production, reflecting the Chinese government's firm resolve and confidence in continuously advancing high-standard opening up and welcoming multinational companies to deeply cultivate their business in China over the long term. Last year, relevant departments issued a tax credit policy for overseas investors to directly invest their profits, among measures encouraging foreign enterprises to reinvest in China. The tax credit policy can be enjoyed in combination with the previously issued deferred tax policy for reinvestment. This policy is of high value and has proved very popular. Currently, many international investors have already used this policy.

In fact, as one of the ideal investment destinations for global capital, China has always had a strong appeal to foreign investors. According to recent surveys by some foreign institutions into multinational enterprises, more than 90% of interviewed companies said they will continue investing in China, and nearly 70% of corporate executives have confidence in China's development over the next three to five years. The Chinese government hopes to further expand business opportunities for foreign investment in China and further enhance investment attractiveness through continuously optimizing the investment environment and investment policies. Based on the current situation, foreign investors in China can benefit from four new business opportunities. What are these four business opportunities? The first business opportunity is new opportunities in China's super-sized market. Last year, our retail sales of consumer goods exceeded 50 trillion yuan for the first time, ranking among the top in the global retail market in scale. The huge consumer goods market needs more high-quality supplies, and foreign investors can definitely contribute in this area. The second business opportunity is the new opportunities in the development of the service sector. Last year, the proportion of per capita spending of Chinese residents on services reached 46.1%, and this number is still increasing. As was just mentioned, this year China will implement initiatives to increase supplies and upgrade quality within the service sector, expand market access and open new fields in the service sector, and will provide a consistent source of new opportunities for enterprises of all kinds, including foreign-funded enterprises. The third business opportunity is the new opportunities presented by the innovation ecosystem. China has complete and efficient industrial and supply chains, and is building a new industrial ecosystem focusing on areas such as the digital economy and green and low-carbon development. Recently, many foreign-funded enterprises have increased investment in areas such as AI and energy in China, and built and launched new R&D centers, indicating that China has gradually become an important innovation hub for multinational companies. The fourth new business opportunity is the new opportunities in the pacesetters for opening up. This year, China will deepen the strategy of upgrading pilot free trade zones across the board, and carry out the work plan for high-quality development of state-level economic development zones. Also, there was a topic that many of you were concerned about recently — that is Hainan, somewhere I previously worked for many years. After the implementation of island-wide special customs operations, Hainan will also provide more preferential conditions and development opportunities for foreign-funded enterprises to engage in processing and manufacturing and conduct trade and investment more unimpededly and conveniently.

There are also many other opportunities, but these are the main ones. 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.

Shen Danyang:

Thank you all.

Translated and edited by Chen Xinyan, Zhang Jiaqi, Liao Jiaxin, Zhang Yuxin, You Jiaxin, Liu Caiyi, Wang Ziteng, Li Xiao, Cui Can, Yang Chuanli, Xu Kailin, Zhang Tingting, Yan Bin, Li Huiru, Liu Sitong, Zhou Jing, Fan Junmei, Zhang Rui, Wang Yanfang, Gong Yingchun, Liu Qiang, Huang Shan, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Yan Dong, vice minister of commerce

Ms. Yang Mu, director general of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce

Mr. Wang Zhihua, director general of the Department of Foreign Trade of the Ministry of Commerce

Mr. Wang Ya, head of the Department of Foreign Investment Administration of the Ministry of Commerce

Chairperson:

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

Date:

Jan. 26, 2026

Jia Huili:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Yan Dong, vice minister of commerce, to brief you on China's commerce work and performance in 2025 and to take your questions. Also present today are Ms. Yang Mu, director general of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce; Mr. Wang Zhihua, director general of the Department of Foreign Trade of the Ministry of Commerce; and Mr. Wang Ya, head of the Department of Foreign Investment Administration of the Ministry of Commerce. Now, I'll give the floor to Mr. Yan for his introduction.

Yan Dong:

Good afternoon, everyone. First of all, thank you for your interest in and support for the commerce work. I am very pleased to have the opportunity to meet with all of you today along with my colleagues to discuss the development of the commerce work.

The year 2025 that just passed was an extraordinary one. Under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, we have resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council. Guided by the three important positions of the commerce work, we overcame difficulties and worked hard, achieving overall stability and steady progress in commerce development. This has made positive contributions to the continuous recovery and improvement of the economy. The outcomes of this year's work are mainly reflected in the following aspects:

First, efforts to boost consumption have shown more notable results. We closely integrated improving people's livelihoods with promoting consumption. Driven by both policies and events, we created the "Shopping in China" brand and continuously unleashed consumption vitality. The total retail sales of consumer goods for the year exceeded 50 trillion yuan for the first time, reaching 50.1 trillion yuan, an increase of 3.7%, with consumption contributing 52% to economic growth, up by 5 percentage points. In terms of commodity consumption, we have expanded and improved the scope of the consumer goods trade-in programs, with sales of automobiles, home appliances, cellphones and other related products reaching 2.61 trillion yuan, benefiting 366 million people. Regarding service consumption, we have carried out campaigns to improve the quality and benefit of service consumption, with annual service retail sales increasing by 5.5%, and retail sales in areas like culture and sports, leisure, tourism consulting and rentals, and transportation maintaining double-digit growth. In terms of innovative consumption scenarios, we have piloted the development of international-level consumption environments, optimized the tax refund policy for overseas visitors, and seen sales of tax-refundable goods nearly double.

Second, foreign trade has maintained its resilience. We effectively responded to external shocks and challenges, coordinated the development of the "three main pillars" of goods, services and digital trade, vigorously expanded diversified markets, and promoted the innovative development of trade. The scale reached a record high, with annual goods imports and exports totaling 45.47 trillion yuan, up 3.8%; while services imports and exports in the first 11 months reached 7.2 trillion yuan, an increase of 7.1%. Enterprises became more active, with over 780,000 business entities having import and export records, among which private enterprises accounted for 57.3% of the total foreign trade value. Greater emphasis was placed on balanced development of imports and exports. We successfully held major exhibitions such as the China International Import Expo (CIIE), organized a series of events under the theme "Big Market for All: Export to China" series of activities, and promoted high-quality products from overseas to "come in" and "sell well."

Third, bilateral investment space has continued to expand. In terms of attracting foreign investment, we intensified efforts to attract and utilize foreign capital, expanded autonomous opening in the service sector in an orderly manner, and continued to enhance the "Invest in China" brand. Over 70,000 foreign-funded enterprises were established throughout the year, up 19.1%. Utilized foreign capital amounted to 747.69 billion yuan, with high-tech industries accounting for 32.3% of the investment. Regarding outbound investment, we promoted international cooperation in industrial and supply chains, facilitated integration of trade and investment, and deepened Belt and Road economic and trade cooperation. We improved the comprehensive service system for overseas operations, achieving 1 trillion yuan in outbound non-financial direct investment for the year, up 1.6%, and signed new contracts for foreign contracted projects worth 2.1 trillion yuan, up 8.5%.

Fourth, multilateral and bilateral cooperation have achieved notable results. On the bilateral front, under the strategic guidance of head-of-state diplomacy, China-U.S. economic and trade consultations have achieved positive results, giving the world economy a sense of reassurance. We also signed the China-ASEAN Free Trade Area (FTA) 3.0 Upgrade Protocol, put into effect a free trade agreement with the Maldives, and advanced unilateral opening-up measures such as 100% zero tariffs for African countries with diplomatic ties to China, injecting more certainty and positive energy into global development. To date, China has signed 24 FTAs with 31 countries and regions, with FTA partners accounting for 45% of China's total goods trade. On the multilateral front, China announced that it will not seek new special and differential treatment in current and future negotiations with the World Trade Organization (WTO). We promoted practical economic and trade development outcomes within United Nations agencies, APEC, the Shanghai Cooperation Organization (SCO), BRICS countries, the G20, and other frameworks. The International Economic and Trade Cooperation Initiative on Green Mining and Minerals released by China has attracted participation from more than 20 countries and international organizations, actively fostering win-win cooperation.

Next, the Ministry of Commerce will thoroughly implement the major arrangements of the Central Economic Work Conference. Focusing on strengthening domestic circulation, facilitating domestic and international dual circulation, and expanding the international circulation, we will strive to promote high-quality development in commerce, making new contributions to a good start and a solid first step for the 15th Five-Year Plan.

That is all for my introduction. Next, my colleagues and I will be happy to take your questions. Thank you.

Jia Huili:

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

Hong Kong Bauhinia Magazine:

The Central Economic Work Conference proposed promoting high-quality Belt and Road Initiative (BRI) cooperation, with economic and trade cooperation being a key component of the initiative. What is the next step in implementing the relevant arrangements? Thank you.

Yan Dong:

Thank you for your question. Over the past year, the Ministry of Commerce has thoroughly implemented General Secretary Xi Jinping's important remarks on pursuing Belt and Road cooperation, working with relevant countries to promote deeper and more practical economic and trade cooperation under the BRI, making positive contributions to building an open world economy and promoting the building of a community with a shared future for humanity. This is mainly reflected from three new aspects:

First, trade cooperation has shown new highlights. In 2025, China's goods trade with Belt and Road partner countries reached 23.6 trillion yuan, an increase of 6.3% year on year, 2.5 percentage points faster than overall trade growth, with its share rising to 51.9%. From a structural perspective, our exports of products such as electronic components and mechanical equipment, as well as imports of products such as computers and components, have shown good growth momentum, helping BRI partner countries improve their industrial development level. In terms of business formats, the Silk Road E-commerce Promotion events have attracted participation from over 100 countries and achieved more than 240 cooperation results, helping more high-quality products from BRI partner countries enter the Chinese market.

Second, bilateral investment has shown new vitality. In 2025, China's non-financial direct investment in BRI partner countries reached 283.36 billion yuan, an increase of 18%; and BRI partner countries' direct investment in China was 116.81 billion yuan, an increase of 1.9%. Cooperation areas have continued to expand, with 18 new agreements signed with partner countries in fields such as production and supply chain cooperation, digital economy and green minerals, while cooperation in the "Two Countries, Twin Parks" projects between China and Malaysia, and China and Indonesia have been actively advanced.

Third, project construction has shown new results. In 2025, China achieved a turnover of 1.1 trillion yuan in contracted projects in BRI partner countries, an increase of 9.6%. China-Europe freight trains operated more than 20,000 trips throughout the year, and important progress was made on projects such as the China-Kyrgyzstan-Uzbekistan Railway and the Budapest-Belgrade Railway. More than 700 aid projects, including landmark projects and "small but beautiful" livelihood projects, have been organized and implemented.

Next, we will continue to thoroughly implement the important instructions of General Secretary Xi Jinping, and in accordance with the arrangements of the Central Economic Work Conference, focus on deepening Belt and Road economic and trade cooperation in the following four areas:

First, improving the quality and efficiency of trade facilitation. We will promote negotiations and the signing of free trade agreements with more willing BRI partner countries, and establish trade facilitation working groups. We will continue to develop the "Export China" brand, make full use of major exhibition platforms such as the China International Import Expo (CIIE), and expand imports from BRI partner countries. We will promote the development of trade channels such as the China-Europe freight train service and the New International Land-Sea Trade Corridor.

Second, optimizing the space for bilateral investment. We will organize "Invest in China" brand events to attract more BRI partner countries to invest in China. We will guide the reasonable and orderly cross-border layout of industrial and supply chains, make good use of various platforms such as border (cross-border) economic cooperation zones, overseas economic and trade cooperation zones, and :Two Countries, Twin Parks," and actively negotiate and sign cooperation documents on industrial and supply chains.

Third, expanding cooperation in emerging fields. We will promote the negotiation and signing of more cooperation agreements in emerging fields, and deepen cooperation in areas such as green minerals, clean energy, digital economy and artificial intelligence. We will expand our circle of friends in high-quality "Silk Road E-commerce," and establish a high-standard pilot zone for "Silk Road E-commerce" cooperation.

Fourth, creating high-quality cooperation projects. We will coordinate the advancement of landmark projects and "small but beautiful" livelihood projects, implement high-quality foreign contracted projects and foreign aid projects, continue to enhance the image of "small but beautiful" branded products such as Juncao grass, help BRI partner countries improve infrastructure, production and living conditions, and better achieve common development. Thank you.

China Business Journal:

Consumption is an important engine of economic growth. We have observed that in 2025, China's consumer market saw improvements in both scale and quality. Could you please introduce the specific highlights and characteristics of the consumer market in 2025? Thank you.

Yang Mu:

I will answer this question. First of all, thank you for your interest in the consumption work. In 2025, the national commerce system vigorously promoted consumption-boosting initiatives, thoroughly implemented consumer goods trade-in programs, promoted high-quality development of service consumption, and organized a series of "Shopping in China" activities, continuously unleashing consumption potential. Overall, consumption maintained a steady development trend. As Mr. Yan just mentioned, the total retail sales of consumer goods reached 50.1 trillion yuan, breaking the 50 trillion yuan mark for the first time. Consumption contributed 52% to GDP growth, continuing to serve as the primary engine of economic development. The main characteristics are as follows:

First, consumption of bulk durable goods grew rapidly. In 2025, driven by the consumer goods trade-in policy, retail sales by enterprises above designated size of related goods such as home appliances, communication equipment and furniture grew by 11%, 20.9%, and 14.6%, respectively, while retail volume of passenger vehicles increased by 3.8%.

Second, new types of consumption boomed. New types of consumption, such as digital consumption, green consumption and health-related consumption, continue to heat up, with new business formats, new models and new scenarios constantly emerging. Online retail sales of physical goods increased by 5.2%, and the market penetration rate of new energy passenger vehicles reached 53.9%.

Third, rural consumption was robust. County-level commercial systems were continuously improved, accelerating the release of consumption potential. Retail sales of consumer goods in rural areas reached 6.8 trillion yuan, an increase of 4.1%, outpacing the growth rate in urban areas by 0.5 percentage point.

Fourth, inbound consumption has risen. With the expansion of the visa-free transit policy and the optimization of the departure tax refund policy, "Travel in China" and "Shopping in China" remained highly popular. Sales of departure tax-refunded goods nearly doubled. Since the implementation of the 240-hour visa-free transit policy one year ago, the number of visa-free entries by foreign nationals has increased by nearly 30%.

That's all from me for this question. Thank you.

ThePaper.cn:

We would like to know, what are China's considerations for attracting and utilizing foreign investment and for further implementing the strategy to upgrade the pilot free trade zones in 2026? Thank you.

Wang Ya:

I will take this question. Thank you. The year 2026 marks the beginning of the 15th Five-Year Plan. We will thoroughly implement the guiding principles of the 20th CPC National Congress and its subsequent plenary sessions of the 20th CPC Central Committee, put into action the arrangements made by the Central Economic Work Conference, unswervingly expand high-standard opening up, and strive to foster new strengths for attracting foreign investment. We will deepen the reform of the institutions and mechanisms for promoting foreign investment, further enhance the "Invest in China" brand, and comprehensively implement the strategy for upgrading the pilot free trade zones, which all contributes to a good start to the 15th Five-Year Plan. We will focus on the work in four aspects.

First, we will expand market access and areas of openness with a focus on the service industry. We will expand the opening up of fields such as telecommunications, healthcare, and education in an orderly manner. We will promote the early implementation of pilot projects, support the foreign-funded service enterprises to extend the value chain, and achieve specialized, integrated, and digital-intelligent development. This will enhance the capacity and quality improvement of the service industry. In the already opened fields, we will ensure foreign investment enjoys both market access and unimpeded operation.

Second, we will optimize policies that support foreign investment. We will effectively implement policy measures such as tax credits for overseas investors who directly reinvest profits earned in China, and the Catalogue of Encouraged Industries for Foreign Investment. Foreign-funded enterprises will be equally supported to participate in activities aimed at boosting consumption, government procurement, and bidding and tendering process. This will help foreign-funded enterprises to engage in long-term development in China.

Third, we will improve the service guarantee system for foreign investment. We will fully implement national treatment for foreign-funded enterprises, focus on their concerns, and consistently enhance our services. We will organize roundtable meetings for foreign-funded enterprises and continue to advance the initiative to ensure services for foreign-funded enterprises, transforming the "demand lists" of enterprises into our "service lists", so as to help them address challenges and difficulties.

Fourth, we will create a diverse array of pacesetters for opening up. This involves steadily optimizing and adjusting the regional layout and scope of the pilot free trade zones to provide broader space and more platforms for pioneering trials, and deepening alignment with international high-standard economic and trade rules to conduct trials in institutional opening up in broader areas, at deeper levels and with greater intensity. Support will be given to pilot free trade zones to promote integrated innovation across entire industrial chains in key areas of emerging industries based on local conditions. Furthermore, we will accelerate the comprehensive pilot demonstration for expanding opening up in the service industry, effectively implement the work plans for high-quality development of national-level economic and technological development zones, and continuously release the benefits of institutional innovation. Thank you.

Yicai:

In 2026, with the deepening impact of changes in the external environment and increasing trade barriers, how do you view the foreign trade situation this year, and what measures will be taken to promote high-quality development of foreign trade? Thank you.

Wang Zhihua:

I will answer these questions. Thank you. Just now, Mr. Yan has already briefed you on the relevant situation of foreign trade in 2025. Regarding the foreign trade situation in 2026, indeed, as you mentioned, China is currently faced with profound and complex changes in the external environment. It can be said that strategic opportunities coexist with risks and challenges, and uncertain and unpredictable factors are increasing. At the same time, we must also understand that China's economy has stable foundations, numerous strengths, strong resilience, and great potential, as well as the fact that foreign trade development continues to be supported by many favorable conditions.

In 2026, the Ministry of Commerce will conscientiously implement the decisions and plans of the CPC Central Committee and the State Council, focus on the goals of improving quality and effectiveness, make every effort to stabilize the fundamentals of foreign trade, promote the opening up of the service market in an orderly manner, and contribute to a good start to the 15th Five-Year Plan period. Specifically, measures in the following aspects will be taken.

First, we will strengthen the guiding role of policies. We will develop a comprehensive policy mix to provide high-quality service for foreign trade enterprises, helping them reduce costs and enhance efficiency. Efforts will be made to strengthen policy promotion and interpretation to stabilize expectations and boost confidence. Through coordinated actions between central and local authorities, we will study and introduce new policies in a timely manner, and provide new supportive measures.

Second, we will expand diversified markets. Greater support will be given for enterprises to participate in overseas exhibitions. A series of trade promotion activities will be hosted. We will ensure the successful hosting of the 139th and 140th Canton Fairs., We will encourage enterprises to make good use of country-specific trade guides and foreign trade promotion information to help them better connect with markets.

Third, we will accelerate innovation-driven development. We will guide comprehensive pilot zones for cross-border e-commerce to vigorously develop industrial belts empowered by cross-border e-commerce, and support overseas warehouse enterprises in accelerating intelligent upgrading. Efforts will be focused on expanding green trade and enhancing the international competitiveness of green and low-carbon products. We will promote the application of artificial intelligence in foreign trade development and improve the digitalization level across the entire trading chain.

Fourth, we will promote balanced development. We will build the "Export to China" brand, select annual featured countries for targeted engagement, and organize import promotion activities. By fully leveraging platforms such as the China International Import Expo, we will provide more high-quality exhibition booth resources and organize national import trade promotion and innovation demonstration zones, as well as further enabling import-export chambers of commerce to carry out regional and industry matchmaking. This will facilitate the entry of more high-quality products and services from other countries into Chinese market, and better meet the people's needs for a better life.

Fifth, we will vigorously develop trade in services. This will involve improving the management system of negative list for cross-border trade in services, promoting the opening up of the services market in an orderly manner, and building national demonstration zones for the innovative development of trade in services. Efforts will focus on expanding the export of competitive producer services, promoting the clustered development of service trade in areas such as intellectual property and human resources. Professional service institutions in design, consulting, finance, accounting, and law will be encouraged to enhance their international service capabilities, while services where we have long held an edge such as Chinese language education, traditional Chinese medicine, and Chinese cuisine will be further promoted in global market. We will also introduce policy measures to expand inbound consumption.

Sixth, we will foster innovative development of digital trade. This includes launching national demonstration zones for digital trade, formulating standards related to digital trade to align domestic standards with international norms, and advancing the digital transformation of service outsourcing to foster and expand digital trade business entities. We will host the Global Digital Trade Expo to build an international platform for exhibitors and merchants worldwide to explore cooperation and promote development.

That is all from me. Thank you.

Market News International:

At the Davos World Economic Forum, the U.S. trade representative was reported to have floated the idea for another round of trade negotiations between China and the U.S. ahead of the likely heads of state meeting in April. He said there was chance for some kind of further agreement on trade items that are non-sensitive. What is the Chinese view on the chances for a new round of negotiations and a further agreement in line with the U.S. trade representative's comment? Thank you.

Wang Zhihua:

Thank you. I will answer this question. In 2025, under the strategic guidance of the heads of state of China and the United States, both sides, upholding the spirit of equality, respect and mutual benefit, carried out five rounds of economic and trade consultations, achieved a series of positive results, and fully proved that China and the U.S. can find solutions through equal dialogue and consultation.

After the meeting between the two heads of state in Busan, both sides maintained continuous communication at all levels through the China-U.S. economic and trade consultation mechanism to jointly promote the implementation of the important consensus reached at the heads of state meeting and the outcomes of the Kuala Lumpur economic and trade consultations. China is willing to work with the U.S. in the spirit of mutual respect, peaceful coexistence, and win-win cooperation to jointly safeguard and implement the important consensus of the two heads of state, make good use of the China-U.S. economic and trade consultation mechanism, manage differences, advance cooperation, and maintain the stable, healthy and sustainable development of China-U.S. economic and trade relations. Thank you.

China News Service:

What contributions has China made in 2025 in maintaining the multilateral trading system and promoting WTO reform? What steps will China take next to play a more active role in the WTO? Thank you.

Yan Dong:

Thank you for your questions. In 2025, global trade advanced with difficulty amid turbulence. As a major trading nation and a responsible developing country, China has actively taken pragmatic measures to stabilize the international economic and trade order.

First, we continued to uphold the multilateral trading regime. As mentioned just now, China announced that it will not seek special and differential treatment in current and future WTO negotiations. The international community has given high recognition to this, and WTO Director-General Ngozi Okonjo-Iweala said that this move reflects China's solemn commitment to building a more balanced and equitable global trading system.

Second, we deeply participated in WTO reform. China submitted a proposal to the WTO, advocating the safeguarding of basic principles such as non-discrimination, and put forward the working approach of "stability as the cornerstone, development as the priority, and reform as the pathway," which received positive responses from many members. China actively participated in various reform consultations and supported the improvement of WTO functions.

Third, we took the initiative to align with high-standard international economic and trade rules. The Ministry of Commerce, together with relevant departments, issued the "Work Plan on Supporting Beijing's Pioneering in Implementing WTO's Agreement on Electronic Commerce." China became the first member to implement the WTO's Agreement on Electronic Commerce. This demonstrates China's determination to expand high-standard opening up, and also serves as a useful reference for other members to implement the agreement.

Fourth, we continuously improved the level of contract performance and commitment fulfillment. The General Office of the State Council issued the "Opinions on Further Strengthening Compliance Work for Trade Policies." Against the backdrop of certain countries abusing unilateral tariffs, China proactively strengthened its trade policy compliance and built a world-class business environment, fully reflecting China's consistent position of firmly safeguarding the multilateral trade system and abiding by WTO rules.

This year marks the 25th anniversary of China's entry into the WTO. China has grown from being a passive recipient and active adapter of rules to an active participant and important contributor, and will take part in WTO work with a more active and open attitude.

First, we will promote the success of the 14th WTO Ministerial Conference. China actively advocates for the conference to send out a strong voice in support of the multilateral trading system, and has achieved development-oriented outcomes in issues such as incorporating the investment facilitation agreement into the WTO legal framework and exempting tariffs on electronic transmissions.

Second, we will promote WTO reform in the right direction. China supports improving the decision-making mechanism and calls for more members to join the multi-party interim appeal arbitration arrangement. China also supports the formulation of new, up-to-date rules on topics such as industrial policy, trade and environment, and trade and artificial intelligence, to better respond to industry demands and the needs of the times.

Third, we will place development at the center of the WTO agenda. China will deepen cooperation with Global South countries, provide more global public goods, continue to support the Trade Promotion Roundtable Initiative, contribute within the framework of South-South cooperation to the best of its ability, enhance the capacity of developing members to participate in international economic and trade negotiations, and help them better benefit from the multilateral trade system.

That's all from me for this question. Thank you.

Reuters:

China relied heavily on exports to hit last year's growth target as domestic demand faltered. So, how much room is there for further expanding overseas sales in 2026? And can you tell us what new measures are in the pipeline to spur consumer spending this year?

Wang Zhihua:

Thank you for your questions. I think the questions you raised involves two issues, one is about foreign trade, and the other is about consumption. I will answer the foreign trade question, and I suggest my colleague answers the consumption question.

Regarding foreign trade, China's foreign trade in 2025 can be described as pressing ahead under pressure and steadily improving, driving the prosperity of trade partners through its own development, and further highlighting the concept of "cooperation and mutual benefit." We have mainly focused our efforts on three aspects:

First, thanks to a complete and efficient production-supply chain system and continuous innovation, Chinese products have made overall improvements in design, technology, quality, efficiency and service. High quality, reasonably priced and diversified Chinese products have provided more choices for consumers in different countries, meeting consumer needs in different fields and at different levels.

Second, China has fully participated in the global industrial division of labor and cooperation, supplying stable and reliable intermediate and capital goods that have made important contributions to industrial development and industrialization in countries worldwide, particularly in developing countries.

Third, China has actively shared opportunities from its green and low-carbon transition, balancing domestic development with global needs while continuously supplying green products worldwide. For example, in 2025, exports of lithium batteries and wind turbines increased 26.2% and 48.7%, respectively, significantly advancing global green and low-carbon development.

In 2026, China will unswervingly advance high-standard opening-up and promote innovative, balanced trade development. China is willing not only to be the world's factory but also the world's market. Its vast market will provide broader opportunities for products and services from all countries. China's high-quality development will continuously inject new momentum into the global economy.

That's all from me on this question. I'll turn the second question over to my colleague.

Yang Mu:

I'll take the second question. As mentioned earlier, China's total retail sales of consumer goods exceeded 50 trillion yuan for the first time in 2025, maintaining steady growth. This fully demonstrates the vitality and resilience of China's massive consumer market. The year 2026 marks the beginning of the 15th Five-Year Plan. The Ministry of Commerce will earnestly implement the decisions and plans of the CPC Central Committee and the State Council, adhere to the strategy of expanding domestic demand, and closely integrate livelihood improvement with consumption promotion. We will thoroughly implement special actions to boost consumption and build the "Shopping in China" brand, providing strong support for building a robust domestic market and advancing high-quality development. We will focus on three areas: introducing policies, organizing activities and optimizing consumption scenarios.

First, we will roll out policies that increase direct benefits for the public. We will optimize and implement the consumer goods trade-in program, promoting the consumption of bulk durables such as automobiles, home appliances, and digital and smart products. We will pilot reforms in automobile circulation and consumption to further unleash the potential of auto sales. We will also roll out the invoice lottery pilot program. As you may have noticed, the list of pilot cities was made public last weekend. We will advance the introduction of practical and effective policy measures to boost the debut economy and other areas.

Second, we will organize activities to create a vibrant consumption atmosphere. Focusing on three main themes — goods consumption, service consumption, and consumption scenarios — we will organize over 20 themed "Shopping in China" events this year. We will also organize customized events in 15 pilot cities for international consumption environments and support local activities across various regions. We aim to create a vibrant consumption atmosphere through a coordinated series of events with unified themes and distinctive features.

Third, we will optimize scenarios to improve the consumption environment. We will accelerate the development of international consumption center cities and advance pilot programs for building international consumption environments and innovative consumption formats, models and scenarios. We aim to create high-impact, highly visible consumption scenarios that enable domestic and foreign consumers to enjoy a better life. Thank you.

National Business Daily:

Could the Ministry of Commerce provide details on progress made in 2025 in expanding China's globally oriented network of high-standard free trade zones? What efforts will be made to promote the negotiation and signing of more regional and bilateral trade and investment agreements in 2026?

Wang Ya:

I will take your questions. Thank you. In 2025, the Ministry of Commerce actively promoted the development of a globally oriented network of high-standard global free trade zones, achieving substantial results.

First, the level of openness was higher. We signed the China-ASEAN Free Trade Area 3.0 Upgrade Protocol, incorporating emerging rules on the digital economy, the green economy, supply chains and standards cooperation, thereby deepening institutional connectivity in regional cooperation. Second, the scope expanded. We made positive progress in FTA negotiations with six Pacific Island countries and the Republic of the Congo. Third, greater dividends were delivered. We promoted the entry into force of trade and investment agreements with the Maldives and Tajikistan, ensured high-quality implementation of signed agreements, including the Regional Comprehensive Economic Partnership, and helped enterprises truly benefit from preferential policies. We proactively aligned with the standards of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement, deepened domestic reforms, and delivered the benefits of institutional opening-up. In addition, we upgraded investment agreements with Kazakhstan and Russia.

In 2026, we will emphasize "quantity," "quality" and "effectiveness" in equal measure, accelerate regional and bilateral trade and investment agreements, and transform China's development into new opportunities for the world.

In terms of "quantity," we will continue advancing free trade cooperation with the Gulf Cooperation Council, Switzerland, South Korea, New Zealand, Pacific Island countries, and Central Asian and African countries. Meanwhile, we will continue focusing on Belt and Road partner countries, accelerate investment agreement negotiations, and build high-standard investment agreement corridors. In terms of "quality," we will proactively expand opening-up, with services as a priority for broadening market access and opening more sectors. We will enhance investment liberalization, facilitation and protection, while promoting the incorporation of high-standard rules on the digital economy, green economy and other areas. In terms of "effectiveness," we will continue ensuring proper implementation of agreements. We will continuously leverage international high-standard economic and trade rules to guide deeper domestic reforms in areas such as intellectual property protection, industrial subsidies, environmental standards, labor protection, and government procurement. We aim to achieve alignment and compatibility in rules, regulations, management and standards. Thank you.

Dazhong Daily:

We noticed that the Ministry of Commerce recently issued, together with relevant departments, the Guiding Opinions on Further Improving the Overseas Comprehensive Service System. How will you promote the implementation of these opinions to provide better services for outbound investment and trade? Thank you.

Wang Ya:

Thank you for the question. I will answer it. In October 2025, with State Council approval, the Ministry of Commerce and four other departments issued the Guiding Opinions on Further Improving the Overseas Comprehensive Service System. The guiding opinions thoroughly implement the decisions and plans of the CPC Central Committee and the State Council, focusing on building an overseas comprehensive service system that matches the scale and development trajectory of China's outbound investment and trade. This is China's first policy document in the field of overseas comprehensive services. Moving forward, the Ministry of Commerce will work with relevant departments around a framework comprising a national platform, local hubs, overseas stations and professional institutions. We will rapidly develop a multi-dimensional, full-chain overseas comprehensive service ecosystem. This system will feature central-local coordination, regional collaboration, resource concentration and domestic-international connectivity.

First, we will build a national-level platform for comprehensive overseas services. We will coordinate service resources across foreign affairs, law, taxation, finance, trade, logistics, customs and trade promotion. These will address common enterprise needs when expanding overseas, including policy consultation, business processing, country-specific information, market updates, resource matching and risk management. The results will be a "one-window, one-stop" service platform for going global. This platform will be launched on the Ministry of Commerce website soon. We welcome further inquiries from the press.

Second, we will encourage eligible localities to establish comprehensive overseas expansion service hubs and strengthen their online and offline service capabilities. Some regions are already actively exploring these approaches and have achieved positive results. For example, Zhejiang has actively developed an overseas comprehensive service platform to accelerate the implementation of a "single-platform, single-window acceptance and integrated services" model for outbound investment, effectively improving service efficiency. Shanghai has integrated existing platform resources to launch a citywide unified comprehensive service platform for enterprises going global. Shenzhen has developed the Shenzhen International Business e-Station, focusing on three key areas — products, investment and services — to help enterprises go global in an orderly, effective and secure manner.

Third, we will establish comprehensive service stations overseas to expand and enhance our service capabilities. We will promote the establishment of overseas comprehensive service stations in key countries and regions by eligible Chinese business chambers and associations abroad, overseas economic and trade cooperation zones, and Chinese-funded legal service institutions. These stations will help enterprises address local service needs and provide ongoing support for building international marketing networks and expanding overseas markets.

Fourth, we will accelerate the development of a group of internationally-oriented professional service institutions, upgrading from general services to targeted enablement. Focusing on the pain points and challenges reported by enterprises expanding overseas, we will encourage professional service institutions in law, finance, insurance, accounting and logistics to expand overseas alongside enterprises, innovate products and service models, and continuously enhance their international service capabilities. Thank you.

CCTV:

In recent years, service consumption has attracted increasing attention. How did service consumption develop in China in 2025? What are the next steps to further unleash the potential of service consumption and promote its development? Thank you.

Yan Dong:

Thank you very much to the reporter for those questions. Just now, my colleague also introduced the relevant situation regarding boosting consumption and goods consumption. Now, let me provide some specific information on service consumption, which has been a focus of concern.

As everyone knows, service consumption has characteristics such as high consumption frequency, strong multiplier effects and sustainable growth. It also plays an important role in expanding domestic demand and improving people's well-being. The Ministry of Commerce has earnestly implemented the decisions and plans of the CPC Central Committee and the State Council. As the leading department for promoting service consumption, we have worked with relevant departments to actively introduce supportive policies, innovate consumption scenarios, and build platforms and mechanisms to promote the prosperity and development of the service consumption market. This is reflected in three areas:

First, service consumption has maintained fast growth. In 2025, retail sales of services increased 5.5% year on year. At the same time, per capita service consumption expenditure grew 4.5% year on year and accounted for 46.1% of total per capita consumption expenditure.

Second, key sectors have developed rapidly. Retail sales of cultural, sports and leisure services, communication and information services, tourism consultation and rental services, and transportation services have all maintained double-digit growth. Per capita spending on education, culture and entertainment increased 9.4% year on year. A total of 2,485 tourist trains operated throughout the year, up 33.6% year on year. Catering revenue reached 5.8 trillion yuan, rising 3.2% year on year.

Third, the service consumption market has become more active. Regional sports events such as the Jiangsu Football City League and the Zhejiang Provincial City Basketball League have gained nationwide popularity, while "Ne Zha 2" set historic box office records in Chinese cinema. Sports-driven travel and film-inspired culinary tourism have emerged as new trends. Meanwhile, new business formats, including low-altitude flights, cruises and yacht travel, and tourism performances, have continued to flourish, creating new opportunities for service consumption growth.

Moving forward, we will leverage the coordination mechanism for promoting service consumption development to drive continued expansion of service consumption and foster high-quality growth. We will focus on work in the following three areas:

First, we will continue to optimize the supply of services. We will continue to implement initiatives to improve the quality of service delivery for the public's benefit, and work with relevant departments to enhance service supply in culture and entertainment, tourism and leisure, catering and accommodation, sports events, and health care. We will adhere to the principle of opening up to the outside world and reducing restrictions in the domestic market. On the one hand, we will expand high-standard opening-up in the service sector, deepen opening-up pilots in cloud computing, biotechnology, and wholly foreign-owned hospitals, guide foreign investment toward service consumption areas, and enhance the supply of high-quality, diversified services. On the other hand, we will remove unreasonable restrictive measures in service consumption that do not conform to market principles and hinder consumption upgrading, reduce invisible barriers, and encourage fair competition and orderly development among all types of business entities.

Second, we will cultivate new growth drivers of service consumption. We will capitalize on consumption upgrading trends and intensify efforts to cultivate new growth drivers in service consumption, including transportation services, domestic services, online audiovisual services, tourism services, automotive aftermarket services, and inbound consumption. We will refine supporting policies, advance pilot programs, cultivate quality brands and stimulate development vitality in related sectors to better meet people's evolving needs for service consumption.

Third, we will innovate diverse consumption scenarios. We will intensify efforts to advance pilot projects for new consumption forms, models, and scenarios, leveraging the leading role of pilot cities. We will promote the integrated development of commerce, tourism, culture, sports and health care, and develop a group of highly visible and broadly influential new consumption scenarios. In combination with organizing key activities to promote consumption, such as the "Service Consumption Season" and "Chinese Food Festival," we will guide localities to develop integrated consumption scenarios like "Tourism plus," "Cuisine plus," "Sports plus" and "IP plus," delivering more diverse, exciting and convenient experiences for consumers. Thank you.

Jia Huili:

Today's press conference has now concluded. Thanks to our speakers and to our friends from the media. Goodbye.

Translated and edited by Liao Jiaxin, Xiang Bin, Xu Kailin, Zhang Yuxin, Wang Yiming, Li Huiru, Gong Yingchun, Zhou Jing, Wang Wei, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Liao Min, vice minister of finance

Mr. Li Xianzhong, director general of the Comprehensive Department of the Ministry of Finance (MOF)

Ms. Yu Hong, director general of the Department of Finance of the MOF

Chairperson:

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

Date:

Jan. 20, 2026

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very pleased to be joined by Mr. Liao Min, vice minister of finance, who will brief you on implementing a proactive fiscal policy for high-quality economic and social development, and also take your questions. Also attending today's press conference are Mr. Li Xianzhong, director general of the Comprehensive Department of the Ministry of Finance (MOF); and Ms. Yu Hong, director general of the Department of Finance of the MOF.

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

Liao Min:

Thank you. Friends from the media, ladies and gentlemen, good afternoon. Thank you for attending today's press conference. Over the past few days, the temperature has dropped in Beijing, yet we still see so many members of the press here today. On behalf of the MOF, I would like to first express our appreciation for your long-term support for and attention to fiscal work. I would like to take this opportunity to brief you on the outcomes of fiscal policies in 2025 and outline the overall considerations for the fiscal work in 2026.

As we know, the year 2025 was extraordinary. The Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core balanced domestic and international imperatives and implemented more proactive and effective macro policies. As a result, China's economy has moved toward higher-quality and more innovative development, demonstrating strong resilience and vitality. Earnestly carrying out the decisions and deployments made by the CPC Central Committee and the State Council, the MOF implemented more proactive fiscal policies with sustained and strengthened efforts, and played a crucial role in helping achieve the annual economic and social development goals and tasks. In a nutshell, the more proactive fiscal policies adopted in 2025 struck a balance between immediate needs and long-term objectives. They provided strong support for current economic growth and delivered concrete improvements to people's living standards, while also effectively promoting the structural transformation of the Chinese economy and laying a solid foundation for medium- and long-term sustainable economic and social development. Specifically, our efforts in this regard lie in the following four aspects:

First, we intensified countercyclical adjustments. To begin with, the deficit-to-GDP ratio for 2025 was set at around 4%, which was 1 percentage point higher than the previous year. New government debt totaled 11.86 trillion yuan (about $1.71 trillion), an increase of 2.9 trillion yuan over the previous year. These figures both exceeded the average levels of recent years. In addition, 500 billion yuan of special treasury bonds were issued in 2025 to support large state-owned commercial banks in replenishing their core tier-1 capital, which effectively enhanced the capacity of the banking sector and the financial industry as a whole to support the real economy. Furthermore, 500 billion yuan was allocated within the local government debt ceiling to strengthen the overall fiscal capacity of local governments and expand effective investment. Although the deficit and the scale of government bonds increased, the government debt ratio still remained relatively low by international comparison, especially much lower than the average of G20 countries.

Second, we focused on boosting consumption. This involved several measures. For starters, 1.3 trillion yuan of ultra-long special treasury bonds were issued to continue supporting major national projects and programs, enhance security capacity in key areas, promote large-scale equipment renewals and boost trade-ins of old consumer goods. Of this amount, a total of 300 billion yuan was allocated to boost trade-ins of old consumer goods, providing real financial subsidies for consumption of every household. This also drove sales of related products to over 2.6 trillion yuan. As a result, a large number of green, low-carbon and smart products entered households at an accelerated pace, continuously improving people's quality of life while also facilitating economic transformation. Additionally, consumption potential was boosted through both the supply and demand sides. Subsidized interest payments were introduced to personal consumption loans as well as loans issued to business entities in the service sector. Support was also provided for pilot programs concerning new consumption modes, models and scenarios, as well as for the development of an internationalized consumption environment. Moreover, policies were adjusted and optimized concerning duty-free shops and departure tax refund, and more duty-free shops were established to encourage and expand related consumption.

Third, we made continuous efforts to ensure people's well-being. Our work was mainly carried out in the following five aspects. To begin with, we upheld the employment-first policy. The central government allocated 66.74 billion yuan in employment subsidies to reinforce policy tools for stabilizing employment. Policies were introduced to expand the coverage of social insurance subsidies and intensify efforts to refund unemployment insurance premiums for enterprises to keep jobs afloat. Reductions to premiums for unemployment insurance and workers' compensation were also extended. Next, the annual per capita government subsidies for medical insurance and basic public health services were increased to 700 yuan and 99 yuan, respectively. In 2025, the central government allocated a total of about 490 billion yuan in related subsidies. Furthermore, basic pensions for retirees were increased at a rate of 2% in general, and the minimum basic old-age benefits for rural and non-working urban residents were raised by 20 yuan per person per month. In 2025, the central government allocated approximately 1.2 trillion yuan in basic pension subsidies. Moreover, free pre-school education was gradually rolled out. The country waived care and education fees for children in the final year of kindergarten, benefitting approximately 14 million people. The standards of national scholarships and grants were raised, and their coverages were expanded. In addition, the nationwide child care subsidy program was introduced. A total of 100 billion yuan was allocated nationwide to provide child care subsidies for children under the age of 3, and the subsidies were exempt from individual income tax. As the aforementioned figures show, national fiscal spending in ensuring people's livelihood continued to increase and deliver tangible results. These inclusive policies, which directly benefited the public, helped enhance households' consumption capacity and stimulated their willingness to consume.

Fourth, we placed equal emphasis on risk prevention and development promotion. Fiscal sustainability is an inherent requirement for a major economy and remains a global challenge. With this in mind, we have been committed to building a stable and sustainable fiscal system. In 2025, we adhered to the principle of reducing debt through development while promoting development through debt reduction. To begin with, an amount of 2 trillion yuan was again allocated to replace outstanding hidden local government debt. In addition, 800 billion yuan of new special treasury bonds were issued to supplement fiscal capacity of local government funds and support debt reduction. Moreover, the full-process management of outstanding hidden debt replacement was strengthened, with guidance and supervision provided to local governments to ensure well-conceived classification and precise debt replacement. Following the debt replacement, the average interest cost of debt decreased by more than 2.5 percentage points, which significantly reduced the burden on local governments and enhanced their development momentum. As these measures were carried out on schedule and continued to take effect, local government debt risks gradually receded, and the positive interaction between economic growth and debt management was further strengthened. Last but not least, concrete efforts were made to see that, at the primary level, basic living needs were met, salaries were paid and governments functioned smoothly. The overall operation of local finances remained stable.

Overall, in 2025, the fiscal policy firmly served national priorities, took proactive and responsible actions, and fully reflected a more proactive policy orientation, providing important support for the macroeconomy to withstand pressures and maintain stable progress. This has been widely recognized by industry insiders both at home and abroad.

That concludes my briefing on the major outcomes of fiscal policy in 2025.

Considerations for fiscal policy in 2026.

In 2026, as outlined at the Central Economic Work Conference, finance departments will continue to implement a more proactive fiscal policy, which can be summarized as "increased volume, optimized structure, improved efficiency and stronger momentum."

"Increased volume" means expanding the scale of fiscal expenditure to ensure adequate spending intensity. In 2026, the fiscal deficit, total debt and total expenditure will be maintained at necessary levels, ensuring that overall spending keeps increasing and that support for key areas continues to strengthen. It should be emphasized that continuing to expand fiscal expenditure, building on the already more proactive stance in 2025, is itself a testament to just how proactive this policy is. At the same time, we have fully considered medium-to-long-term fiscal sustainability, with a focus on building momentum for future development.

"Optimized structure" primarily involves continuously optimizing spending allocations to ensure funds are directed where they're most needed. We will break away from the rigid "base figure plus growth" spending pattern, adopt zero-based budgeting principles, and substantially cut inefficient expenditures. More fiscal funds will be directed toward boosting consumption, investing in human capital, and safeguarding livelihoods, thereby raising household incomes through multiple channels. Through well-calibrated and considerate spending arrangements, we will steadily enhance people's sense of gain.

"Improved efficiency" means maximizing the impact of spending to ensure every penny delivers its due returns. In 2026, we will continue issuing ultra-long-term special treasury bonds to fund major national projects and initiatives, advance large-scale equipment upgrades and consumer goods trade-ins, and refine policy implementation. We will improve negative list management for special bond projects, deepen the local "self-review and self-issuance" pilot program, and maximize the impact of bond funds. At the same time, we will strengthen fiscal-financial coordination, develop innovative policy instruments, and amplify the multiplier effect of public funds and the spillover effects of public policies. I believe the journalists here have all seen the official circular on these policies, which was released across all platforms today.

"Stronger momentum" means deepening fiscal and tax reforms in key areas to further unleash the economy's internal dynamism. We will optimize the transfer payment structure, strengthen local governments' fiscal autonomy and coordination capacity, and improve the effectiveness of transfer payment funds. Through reform measures such as strengthening the coordination of fiscal resources and budgets, enhancing performance-based budgeting, optimizing export tax rebates, and standardizing tax incentives and subsidies, we will further invigorate local fiscal development and support the building of a unified national market.

In short, financial departments will provide solid and robust support in 2026 for stabilizing employment, businesses, markets and expectations, ensuring a solid start to the 15th Five-Year Plan period (2026-2030).

That concludes my opening remarks. My two colleagues and I will now be happy to take your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Liao. The floor is now open for questions. Please identify your news organization before asking. Please go ahead with your questions.

Shanghai Securities News:

Among the package of measures, four are focused on stimulating private investment. What tangible benefits will these policies bring to enterprises?

Liao Min:

Thanks for your question. I will answer it. Stimulating private investment is the centerpiece of this policy package. These four policies designed to support private investment cover a wide range of sectors and provide substantial backing. They deploy a diverse toolkit, including credit support, interest subsidies, guarantees, and compensation mechanisms. These measures will work together to deliver two main direct benefits to enterprises:

On one hand, they reduce financing costs, addressing the issue of expensive financing for private enterprises. Both the newly introduced interest subsidy for micro-, small- and medium-sized enterprise loans and the optimized equipment upgrade loan subsidy can provide 1.5 percentage points off loan amounts. We have also significantly expanded the scope of eligible sectors and loan purposes to facilitate business financing. Let me give you an example. Say an agricultural machinery manufacturer wanting to build an intelligent production line to meet demand from new orders. Suppose the project loan is 50 million yuan. With the 1.5 percentage point interest subsidy over two years, this manufacturer could reduce its interest costs by 1.5 million yuan in total. This significantly helps enterprises lower costs and increase profit margins, making them more willing and able to pursue such investments.

On the other hand, they lower the financing threshold, addressing the difficulty of obtaining financing for private enterprises. This is mainly achieved through special guarantees and bond issuance risk-sharing, helping enterprises secure funding. For indirect financing, we've established a special guarantee program for private investment. This new policy raises the guaranteed line of credit, increases the risk-sharing ratio and lifts compensation caps, giving banks the confidence and willingness to lend more. Let me give another example. Suppose a company wants to apply for a medium-to-long-term loan of 20 million yuan, but its own creditworthiness may be insufficient, requiring guarantee support. Under the traditional guarantee model, the maximum quota for a single enterprise is typically capped at 10 million yuan. With the new program raising this to 20 million yuan, the company's guarantee needs are easily met. Meanwhile, the national financing guaranty fund's risk-sharing ratio will increase from the current cap of 20% to 40%. This means national-level risk-sharing for the loan just mentioned will rise from 4 million yuan to a maximum of 8 million yuan. In other words, for a 20 million yuan loan, the national-level guarantee could reach up to 8 million yuan, which is a substantial level of backing. For direct financing, we recognize that private enterprises still face difficulties issuing bonds. The central government has therefore allocated risk-sharing funds that, combined with relevant central bank policy tools, can absorb most of the related bond issuance risks. This will help more private enterprises access diverse financing channels.

In summary, we expect that through this combination of measures, we can substantially reduce financing costs for enterprises, boost their profitability, and ultimately inject new dynamism into private investment. Thank you.

Bloomberg News:

The ministry announced this month the cancellation or reduction of export tax rebates for more than 200 categories of goods. This policy has been interpreted by some as intended to counter involution and address trade imbalances. Will there be additional fiscal policy measures on these fronts this year? And do you have any information to elaborate on them? Thanks.

Liao Min:

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

Li Xianzhong:

Thank you for your questions. Export tax rebates are an important component of the tax system. For a long time, China has implemented export tax rebate policies for most products, with timely adjustments in accordance with the needs of economic and social development. As you mentioned, the MOF and the State Taxation Administration recently issued a joint announcement clarifying that starting from April 1, 2026, export tax rebates for products such as photovoltaics and phosphorus chemicals will be canceled, and export tax rebates for battery products will be canceled over two years. This is a further policy adjustment based on China's actual situation, following the reduction of export tax rebate rates for photovoltaics, batteries and other products in December 2024. Currently, China's economy and society have entered a stage of accelerated, green and low-carbon oriented, high-quality development. This adjustment to the export tax rebate policy will facilitate efficient resource utilization, reduce environmental pollution and carbon emissions, and promote a comprehensive green transformation of economic and social development. At the same time, it will also help guide rational adjustment of the industrial structure, promote industrial transformation and upgrading, comprehensively address involution-style competition, and drive high-quality economic development. Next, the MOF will work with relevant departments to ensure the effective implementation of the policies. That's all from me for the questions. Thank you.

Yicai:

The first executive meeting of the State Council this year studied and introduced a package of fiscal and financial policies to boost domestic demand, drawing widespread public attention. Could you introduce in detail the contents and key points of the policy package? Thank you.

Liao Min:

Thank you for your question. After the executive meeting of the State Council on Jan. 9, the relevant policies have already been made public through news reports. These policies have been released since noon today, and I believe people have seen the main contents of the policies. Last week, the MOF and relevant departments convened a nationwide video conference to instruct local governments and implementing agencies to promptly carry out the measures. The first quarter is typically a period of relatively high credit volume. At this time, greater effort should be made to better coordinate relevant policies with bank credit activities, so that policies can take effect at an earlier stage. The specific details have already been explained and made public in the policy documents. Today, I will focus on outlining the key points of the policy package.

The policies can be summarized as "one goal," "two priorities," "three principles" and "six policies."

The "one goal" mainly refers to expanding domestic demand, which aligns with the requirement set forth at the central economic work conference regarding domestic demand expansion. This is fully reflected in the policy's name.

The "two priorities" mainly refer to stimulating private investment and boosting household consumption with greater intensity. Both investment and consumption are important components of domestic demand.

The "three principles" mainly refer to the work principles that should be followed during the implementation process. First is upholding the principle of convenience and efficiency. When designing policies, we strive to streamline procedures wherever possible. Policy benefits are granted without the need for application, and fiscal interest subsidies are provided directly on a zero application basis, achieving a model in which interest subsidies are granted throughout the loan term once a loan is signed. Second is upholding the principle of precision and effectiveness, by focusing on supporting key areas and priority groups, reducing financing costs and thresholds for enterprises, and enhancing residents' consumption capacity. Third is upholding the principle of standardization and improved efficiency, mainly balancing the relationship between efficiency and norms. We need to fully deliver policy benefits while preventing fraudulent attempts to obtain fiscal funds.

Among the "six policies," four are designed to support private investment, and the other two are designed to promote consumption. The refinement of this policy package builds on the previously introduced supportive policies. Following extensive consultations with industry institutions as well as experts and scholars, a total of six policies have been introduced.

Next, I will introduce the policies to you one by one.

The first policy is an interest subsidy policy for loans to micro, small and medium-sized enterprises. This is a new policy to support the development of micro, small and medium-sized private enterprises. The policy mainly provides interest subsidies for loans to enterprises in relevant fields, focusing on 14 key industrial chains and related upstream and downstream industries, including new energy vehicles, industrial robots, medical equipment, and mobile communication equipment, as well as productive service fields such as technology, logistics, information and software, and also sectors such as agriculture, forestry, animal husbandry, sideline production and fishery. The interest subsidy is 1.5 percentage points of the total loan amount, with a maximum subsidy period of two years, while the upper limit for a single loan eligible for the subsidy policy is 50 million yuan.

The second policy is a special guarantee program for private investment. As I introduced earlier, this is also a new policy, mainly to provide guarantees for loans to micro, small and medium-sized private enterprises. Eligible enterprises can receive support for medium- and long-term loans needed for production-related activities such as the expansion, renovation and upgrading of production facilities, as well as for the expansion and refurbishment of factory buildings and storefront decorations. The guaranteed loan amount per enterprise is up to 20 million yuan. Let me elaborate on this. The traditional business of the government financing guarantee system mainly supports small businesses and agriculture. This newly established special guarantee program for private investment extends the support to include medium-sized enterprises. The single credit limit for supported micro, small and medium-sized enterprises has been significantly increased to 20 million yuan. Higher guarantor payment limits and risk-sharing ratios have also been set. As I illustrated earlier with an example, this represents a significant breakthrough from traditional business, and is meant to support more micro, small and medium-sized enterprises.

The third measure is to support the risk-sharing mechanism for private enterprise bonds. This is also a new policy. The central government has allocated special risk-sharing funds that will coordinate with existing policies of the central bank. These will provide credit enhancement support for bond issuances by private enterprises and private equity investment institutions and compensate investors for partial losses. This functions in a similar manner to the guarantee policy tools introduced earlier. By sharing part of the credit risk in the market, it helps enterprises lower their financing threshold.

The fourth measure concerns the interest subsidy policy for equipment renewal loans. This policy optimization expands the interest subsidy coverage, extending it from original equipment procurement projects to include fixed asset loans for equipment upgrades and sci-tech innovation loans. Relevant enterprises are eligible for an interest subsidy support of 1.5 percentage points on the total loan amount with a maximum term of 2 years. At the same time, we have expanded the beneficiary sectors, and the range of participating banks has also expanded.

Fifth, the interest subsidy policy for loans to service sector business entities. This is an optimization of the policy introduced last year. The loan cap per entity is hereby raised from the current 1 million yuan to 10 million yuan, with a 1-percentage-point interest subsidy for one year. A single enterprise can receive a maximum subsidy of 100,000 yuan. The scope of eligible consumption sectors has been expanded to 11 categories. The list of participating institutions now includes all city commercial banks, provincial rural commercial banks, capital-city rural commercial banks, and foreign banks with a regulatory rating of 3A or higher—totaling over 90 institutions. By broadening the institutional framework beyond existing policies, this initiative is instrumental in leveraging the 'capillary' function of financial services to effectively support a wide range of service sector business entities.

The sixth is the interest subsidy policy for personal consumption loans. This is also an optimization policy. Residents who use personal consumption loans for legitimate consumption purposes are entitled to a 1-percentage-point interest subsidy. The policy now extends interest subsidy support to credit card bill installment services. In earlier discussions, there was widespread support for extending consumption loan interest subsidies to credit card services, and therefore we have revised the policy to address the demand. To benefit consumers of all types in both urban and rural areas, over 500 new authorized handling institutions have been added this time. These include city commercial banks, rural commercial banks, foreign-funded banks, consumer finance companies and auto finance companies that hold a regulatory rating of 3A or above.

The fiscal expenditure required for these pro-business and people-centered policies has been fully earmarked in the 2026 budget. Local authorities and handling institutions can boost business initiatives with the rule of more work, more gains; Enterprises and residents may also access more loans and corresponding benefits based on their production and consumption demands. We will further enhance coordination with relevant departments, boost the vitality of micro market players via innovative macro-control, and spare no effort to deliver the above policies effectively. Thank you.

21st Century Business Herald:

Fiscal and tax policies are a vital tool to support sci-tech innovation. The Ministry of Finance rolled out a series of initiatives in 2025 to bolster self-reliance and strength in science and technology. What are the outcomes? What are the key priorities for the next step to speed up fostering new growth drivers? Thank you.

Liao Min:

Thank you for your question. I'd like to invite Ms. Yu to answer.

Yu Hong:

Thank you for your question. You have raised a very good question. To advance high-quality development, the top priority is to accelerate high-level self-reliance and strength in science and technology, while actively developing new quality productive forces. In 2025, in accordance with the decisions and arrangements of the Party Central Committee and the State Council, the Ministry of Finance leveraged a full range of policy tools. These included funding support, tax incentives, fiscal finance and government procurement to bolster the integrated development of scientific and technological innovation and industrial innovation. This will accelerate efforts to achieve greater self-reliance and strength in science and technology. 

First, we boosted the volume of funding input. Central government spending on science and technology rose by 10%, a rate well above that of its general public budget. At the same time, the mechanisms for allocating, managing and utilizing central government sci-tech funds was refined, with funding prioritized for basic research, applied basic research and national strategic science and technology tasks. Fiscal expenditures have driven rapid growth in R&D investment across society, with total investment reaching 3.63 trillion yuan in 2024, steadily ranking second in the world.

Second, we reduced innovation costs. Tax incentives covering multiple tax types and various innovation stages were effectively implemented to alleviate the tax burden on enterprises engaged in scientific and technological innovation. At the same time, we activated the government financing guarantee system, guided localities to roll out special sci-tech innovation guarantee programs, and lower financing thresholds and costs for tech-based SMEs. As Mr. Liao noted earlier, these measures helped 34,400 enterprises secure over 140 billion yuan in bank loans for the year, with overall financing costs falling below 5%.

Third, we amplified the impact of technological application. We boosted demand-driven innovation, promoted a purchaser-supplier collaborative innovation model in government procurement, and rolled out insurance compensation policies for first-set equipment and first-batch products. These measures have brought more innovative achievements from the labs to production lines, creating a value multiplication effect. Supported by relevant policies, major landmark tech products including AI and robotics have entered the global stage, while sectors such as integrated circuits have achieved innovation breakthroughs across the entire industry chain. China has emerged as one of the economies with the most rapid growth in innovation capacity. In 2025, China entered the world's top 10 of the Global Innovation Index (GII) for the first time.

Next, we will continue to vigorously promote high-level technological self-reliance and self-strengthening, accelerate the cultivation of new drivers of growth, and promote the optimization and upgrading of the economic structure, with a focus on the following four aspects.

First, we will make good use of government investment funds. We will support the national venture capital guidance fund in "investing early, investing small, investing long-term, and investing in hard technology". We will also support enterprises in focusing on cutting-edge fields to carry out original and disruptive technological research.

Second, we will support the advancement of quality improvement and upgrading of key industries. We will strengthen fiscal and financial coordination to support technological innovation by providing fiscal interest subsidies for loans related to technological innovation. The central bank will also provide relending support. We will continue to promote new technological transformation in manufacturing and the digital transformation of small and medium-sized enterprises, thereby accelerating intelligent, green, and integrated development. This will consolidate and strengthen the foundation of the real economy.

Third, we will ensure the principal position of enterprises in sci-tech innovation. We should fully implement structural tax and fee reduction policies, with priority given to supporting sci-tech innovation and the development of the manufacturing sector. We will continue to leverage the reward and subsidy policy to promote the development of specialized, refined, distinctive, and innovative "little giant" enterprises, as well as policies such as the National Fund for SME Development. This aims to improve the innovation capacity and professionalism of SMEs, and help cultivate more specialized, refined, distinctive, and innovative enterprises, enterprises leading an individual field of the manufacturing industry, and gazelle and unicorn enterprises.

Fourth, we will accelerate the efficient transformation and application of major scientific and technological achievements. We will implement the insurance compensation policy for newly-developed equipment and materials, and continuously support the iteration, updating, application and promotion of eligible sci- tech innovation products.

Thank you for your questions.

Cover News:

I'd like to ask how you view the performance of fiscal revenue and expenditure in 2025, and whether the budget targets set at the beginning of the year have been achieved. Thank you.

Liao Min:

Thank you for the questions. Let's invite Mr. Li to answer them.

Li Xianzhong:

Thank you for your questions. At present, the fiscal revenue and expenditure data for 2025 are still being compiled and are expected to be officially released to the public at the end of January or early February. Based on the preliminary information currently available, the operation of fiscal revenue and expenditure in 2025 can be summarized into the following three points.

First, fiscal revenue was low at the beginning, high in the middle period, and stable at the later period of the year. By quarter, national general public budget revenue fell by 1.1% in the first quarter; in the second quarter, it shifted from decline to growth, increasing by 0.6%; and in the third quarter, the growth reached 2.5%, significantly higher than previous quarters. During the fourth quarter, growth was 3.2% in October, and in November it was basically the same year on year. Among these, tax revenue maintained year-on-year growth since April, becoming the main engine driving fiscal revenue growth, which also reflects the continued steady and positive development trend of China's economic performance.

Second, the goal of balancing revenue and expenditure could be achieved. On the revenue side, as mentioned earlier, national general public budget revenue maintained a recovery growth trend and remained generally stable. On the expenditure side, national general public budget expenditure made proactive efforts and maintained intensity, providing the necessary financial support for economic and social development. Overall, a balance between revenue and expenditure could be achieved for the year.

Third, funding for key areas was effectively ensured. In 2025, the fiscal authorities continued optimizing the expenditure structure, with key areas such as social security and employment, science and technology, education, and healthcare receiving strong support. In the first 11 months, the combined spending on the above four sectors exceeded 10 trillion yuan, accounting for more than 40% of the general public budget expenditure. At the same time, we accelerated the use of bond funds. In the first 11 months, ultra-long-term special treasury bonds, local government special bonds, and special treasury bonds for capital injection into central financial institutions totaled 5.15 trillion yuan in expenditure, an increase of 1.61 trillion yuan over the same period last year, up 45.5%. This strengthened economic growth momentum and supported a sustained recovery and improvement of the economy.

The three aspects are a brief introduction to the overall fiscal operation for the year 2025. Detailed data will be released to the public in a timely manner in accordance with procedures. Thank you.

CCTV:

The Central Economic Work Conference has made arrangements to boost smooth domestic economic circulation and build a unified national market. How will the Ministry of Finance promote effective implementation of work in some key areas in the future? Thank you.

Liao Min:

Thank you for your question. This is a very important issue. The Fourth Plenary Session of the 20th CPC Central Committee clearly proposed to "eliminate bottlenecks and obstacles hindering the development of a unified national market." The recent Central Economic Work Conference also set out specific arrangements in this regard. The Ministry of Finance will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council. Centering closely on establishing a unified, open, competitive, and orderly market system, the ministry will actively deliver its fiscal functions, and support the construction of the unified national market in three aspects.

First, we will continue to deepen the reform of the fiscal and taxation systems. The first is to further clarify the fiscal powers and expenditure responsibilities of the central and local governments in areas including basic public services, education, and healthcare, improve a central-local fiscal relationship with clearly defined powers and responsibilities, coordinated financial resources, and regional balance, and strive to build an institutional framework in line with national conditions. The Ministry of Finance is vigorously advancing efforts in this aspect. The second is to deepen tax system reform, standardize tax incentive policies, improve the local tax system, fully implement the principle of law-based taxation, and lay a solid institutional foundation for building a unified national market. The third is to study new conditions and problems in the taxation field arising from the emergence and development of new business forms, new industries, and new business models, which is also a global issue. I attended relevant G20 meetings, and various countries had quite a lot of discussions on how the development of these new problems and new business forms affects the tax system. For example, in order to address the tax challenges brought by economic digitalization, the international community is advancing reform of international tax rules through the two-pillar plan, and China is actively participating in the negotiations. Domestically, we need to continue researching and exploring, in practice, solutions to issues such as how to foster a fair and unified tax environment for both online and offline businesses, as well as for new and traditional business models. This morning, I met with personnel from an international organization, and we had an in-depth discussion on this issue. It truly is a new challenge faced by all countries.

Second, we have continuously regulated fiscal subsidies. Indeed, people are very concerned about this issue. Since joining the World Trade Organization (WTO) in 2001, China has always firmly adhered to the WTO rules and earnestly fulfilled all accession commitments. As of now, China has submitted eight submissions on subsidy policies at the central level and six at the local level. These figures were meticulously compiled based on actual data from China. The scale of China's fiscal subsidies notified to the WTO is far below the estimates from some international institutions. I want to emphasize that the technological progress and competitive advantages of Chinese enterprises stem not from subsidies, but from their own sustained R&D investment and the hard work of countless entrepreneurs.

The central government takes any potential subsidy violations in specific localities very seriously and is resolute in correcting them. In 2025, the Ministry of Finance joined forces with relevant departments to form an inter-agency task force to tackle local fiscal subsidy violations through a special initiative. Moving forward, we will continue to improve the working mechanism of task force, strengthen information sharing and regulatory coordination, and improve the system for regulating fiscal subsidies to deepen our efforts in cleanup and rectification. At the same time, we will also enforce the primary responsibilities of local authorities, strengthen supervision and regulation, and address every violation as soon as it is identified, while resolutely curbing cutthroat, disorderly competition.

Third, we have continuously optimized the government procurement environment. This is also an issue that people are very concerned about. First, we have cooperated to promote the amendment of the Government Procurement Law. We have actively worked with the National People's Congress Financial and Economic Affairs Committee to advance the amendment of the Government Procurement Law and the coordination and unification of the Government Procurement Law and the Tendering and Bidding Law. By aligning with high-standard international economic and trade rules, we have strengthened the policy functions of government procurement, optimized transaction rules, and reduced institutional transaction costs in an effort to build a complete, unified, and standardized legal system for government procurement. Second, we have implemented the domestic product policy in the field of government procurement. In September 2025, the Chinese government formulated and issued the domestic product policy in government procurement. This policy took effect on January 1, 2026. This is not only an important measure to improve the government procurement system, but also a concrete action to ensure national treatment for foreign-funded enterprises in the field of government procurement. In addition to clarifying domestic product standards, support policies, and categorized implementation arrangements, the policy particularly emphasizes equal treatment for all types of business entities. It prohibits any differential or discriminatory treatment of suppliers based on ownership structure, organizational form, equity structure, investor nationality, or other unreasonable criteria. Should any violations of the above provisions be identified during implementation, reports or complaints can be filed with the financial departments, and such cases will be strictly investigated and dealt with. Here, I would like to share a story. Some time ago, I received leads from friends in Europe and the United States flagging two specific cases. They expressed concerns that their products had been excluded from the scope of Chinese government procurement, citing potential discrimination. They wrote me a letter and attached information about the relevant products. My colleagues and I conducted verification and found that both products in question are imported goods manufactured abroad, rather than domestic products produced within China. Therefore, these products are not within the scope of Chinese government procurement, and there is no discriminatory treatment involved. I clarified the situation with my friends in Europe and the United States. We encourage anyone who identifies a violation of these provisions to file a report or complaint with the financial authorities. Third, we have continuously regulated the order of the government procurement market. To address obstacles to a unified national market and fair competition within the government procurement sector, the Ministry of Finance, together with the Ministry of Public Security and the State Administration for Market Regulation, has carried out targeted campaigns since 2024 to tackle prominent problems in government procurement. We conducted targeted inspections of over 80,000 government procurement projects managed by more than 19,000 agencies nationwide. While the findings indicate that the overall situation remains good, we have publicized several typical cases of non-compliance to maintain market competition order. Joint efforts are required to create and maintain a sound market environment. Moving forward, we will conduct a full review of the achievements from our special campaigns, improve a unified and standardized supervision and inspection mechanism, and resolutely penalize violations of laws and regulations to ensure the continuous optimization of the business environment for government procurement. Thank you for your questions.

Shou Xiaoli:

Let's continue with the questions. I see two more reporters with their hands up. We will take these as our final two questions.

Dazhong Daily:

As China accelerates its drive to build a strong agricultural sector, insurance is playing an increasingly important role. Could you give an update on the current development of agricultural insurance? What policy plans are there for the next step? Thank you.

Liao Min:

I would like to invite Ms. Yu to answer these questions.

Yu Hong:

Thank you for your questions. Since 2007, the central government has supported the development of agricultural insurance through premium subsidies, representing one of the earliest instances of fiscal-financial policy coordination. To illustrate how this works at a micro level: Suppose a farmer buys full-cost insurance for rice. On average, the premium per mu is about 50 yuan. The farmer pays only about 10 yuan, while the government covers the remaining 40 yuan. If a disaster occurs, the farmer can receive payouts ranging from several hundred to over a thousand yuan. This reflects the policy's mechanism: the government shoulders the bulk of the cost while the farmers pay a nominal share, together leveraging risk protection dozens of times greater than the initial investment. From a macro perspective, the scale of agricultural insurance premiums in China has remained the largest in the world, playing a positive role in stabilizing farmers' incomes and safeguarding national food security. It has underpinned our ability to maintain a steady grain output of above 700 million tons, serving as a crucial guarantee for China to feed nearly 20% of the world's population with only 9% of its arable land.

Next, I will outline the achievements of our agricultural insurance program. In short, it has seen both expanded scale and improved quality, embarking on a development path with Chinese characteristics. Specifically, it is reflected in "four continuations."

First, fiscal support has been continuously strengthened. Nearly 80% of China's agricultural insurance premiums are funded by fiscal subsidies. With premium subsidies from all levels of government growing at double-digit rates annually, we're providing substantial, tangible financial support to drive the development of the agricultural insurance sector. In 2025, China's agricultural insurance premiums exceeded 155 billion yuan, providing more than 5.2 trillion yuan worth of risk protection for 125 million farming household-times.

Second, the institutional system has been continuously improved. The departments of finance, agriculture and rural affairs, insurance supervision, forestry and grassland have worked in synergy to issue a series of policy documents on expanding coverage, raising standards, and enhancing standardized management. Together, these have established the "basic framework" of an agricultural insurance system suited to our national conditions.

Third, safeguarding capacity has continued to strengthen. We have adhered to the principles of high-level protection, broad coverage, and diversified approaches. For major agricultural commodities such as grain, edible oil, sugar, and natural rubber, high-coverage insurance schemes have basically been put in place, providing coverage for either full production costs or planting income. For regionally distinctive agricultural products, the central government, in order to achieve holistic agricultural development and build a diversified food supply system, has implemented incentives and subsidy policies nationwide.

Fourth, benefits to farmers have continued to increase. In response to various natural disasters, including prolonged rainfall during the wheat harvest season in Henan, floods in Northeast and North China, Super Typhoon Yagi and Super Typhoon Ragasa impacting Hainan, we have actively supported affected farmers in resuming agricultural production. During the 14th Five-Year Plan period, farmers have received cumulative insurance payouts exceeding 520 billion yuan.

Next, the Ministry of Finance will continue, together with relevant departments to advance efforts and improve the quality and efficiency of agricultural insurance and deepen reforms. In 2026, we will also issue a guiding document on accelerating the high-quality development of agricultural insurance. This document will focus on refined management and diversified collaboration in agricultural insurance, making greater contributions to stabilizing farmers' incomes, supporting comprehensive rural vitalization, and safeguarding national food security. Thank you.

Shou Xiaoli:

The last question, please.

Shandian News:

Vice Minister Liao Min, at a SCIO press conference in August last year, you introduced policies on interest subsidies for personal consumption loans and loans to service-sector business entities. This year, in what ways will these interest subsidy policies be further optimized to better respond to public expectations? Thank you.

Liao Min:

Thank you for your questions. I would like to add one more point to the issue just addressed by Director Yu Hong. As we all know, due to climate change, countries around the world are facing an increasing number of natural disasters. How to better leverage financial instruments, including insurance tools, to support disaster prevention and mitigation has drawn widespread international attention. When participating in various multilateral meetings, we have also shared our experiences in this regard. Mutual learning and reference among countries are very important for advancing development in this area.

As you just mentioned, in August last year I introduced the interest subsidy policies for personal consumption loans and loans to service-sector business entities, and I am very pleased to conclude today's press conference by addressing this important issue. Boosting consumption is an important measure to improve people's livelihoods and a sustained driver of economic growth. In August last year, we piloted the interest subsidy policy for loans to service-sector business entities and the interest subsidy policy for personal consumption loans. As I explained at the time, these policies target both the supply and demand, with residents and enterprises being able to enjoy interest subsidies equivalent to 1 percentage point of the total loan amount, and many restaurants, small shops, and households have received tangible support. During policy implementation, we closely monitored feedback from all parties. To better respond to public expectations, we have optimized these consumption-related interest subsidy policies in four key aspects, with a focus on making the policies more effective, more convenient, and more sustainable.

First, the intensity of interest subsidies has been increased. For individual consumers, the maximum interest subsidy per single transaction has been raised. A consumer can now receive up to 3000 yuan in interest subsidies from one bank compared with 500 yuan previously. This better meets the public's demand for large-value consumption and helps enhance purchasing power. For enterprises in the consumption and service sectors the maximum loan amount eligible for interest subsidies per entity has been significantly increased from 1 million yuan to 10 million yuan, with the corresponding maximum subsidy rising from 10,000 yuan to 100,000 yuan. This provides stronger support for enterprises with genuine financing needs.

Second, the scope of the consumption covered has been expanded. On the personal consumption side, taking full account of consumer habits, credit card installment services which cover a large number of people and are widely used have been included in the scope of interest subsidies, and restrictions on consumption categories under the previous policy have been removed. In other words, under the current policy, all types of consumption are eligible for interest subsidies. On the service consumption side, in addition to the existing eight sectors of catering and accommodation, healthcare, elderly care, childcare, domestic services, cultural and entertainment, tourism and sports, we have added three new key sectors, digital, green, and retail. For example, consumption activities in digitally transformed physical stores, environmentally friendly and energy-saving service providers, as well as retail outlets are all eligible for interest subsidies, as long as payment is made using loans or credit card installment services.

Third, the implementation period has been extended. The implementation period for both interest subsidy policies has been extended to the end of 2026. After the policies expires, we will review the implementation results and consider extending the period as appropriate. In practice, the extension of window period provides enterprises and individuals with sufficient time to make investment and consumption decisions and to apply for loans.

Fourth, more institutions have been covered. From the original more than 20 national level institutions, the program has now been extended to more than 500 participating institutions. The focus has shifted from supporting traditional consumption to serving new scenarios and new business models, achieving broad coverage across urban and rural areas and integrating online and offline channels, allowing the policies to benefit a wider range of business entities and the general public. We also hope that these participating institutions will actively publicize and clearly explain the policies to their clients and provide quality services to meet relevant credit needs.

We hope that through policy optimization and upgrading, by adopting more facilitative measures, we can further reduce the cost of consumer credit and, together with the continued implementation of the trade-in program, jointly foster a favorable environment for promoting consumption. During implementation, we will continue to refine the policies to ensure that they deliver real results and provide tangible support to more enterprises and residents.

Finally, the media representatives present are invited to offer opinions and suggestions on further improving the policies, particularly from the perspective of consumers. If any areas requiring improvement are identified, they may be raised for consideration. The objective is that once consumers take out loans, interest subsidies can be automatically credited to their accounts when interest payments are made. This will require the continuous accumulation of data and experience, and fiscal and financial coordination in supporting domestic demand will be steadily advanced.

Here, I would like to once again thank the media representatives for attending today's press conference. Thank you.

Shou Xiaoli:

Thank you, Vice Minister Liao Min. Thank you to all the speakers and all the journalists for your participation. This concludes today's press conference. Goodbye.

Translated and edited by Zhu Bochen, Yang Chuanli, You Jiaxin, Zhang Tingting, Liu Jianing, Xu Kailin, Liu Caiyi, Wang Wei, Li Huiru, Liu Sitong, Wang Qian, Li Xiao, Liu Qiang, Fan Junmei, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinsese

Speakers:

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

Mr. Zhou Chen, director general of the Department of National Economy, NDRC

Mr. Wang Renfei, director general of the Department of Comprehensive System Reform, NDRC

Wang Shancheng, director general of the Department of Resource Conservation and Environmental Protection, NDRC

Chairperson:

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

Date:

Jan. 20, 2026

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 Mr. Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC), with us. He will introduce the implementation of the guiding principles of the Central Economic Work Conference and advancing a good start to the 15th Five-Year Plan period, and answer your questions. Also present at today's press conference were: Mr. Zhou Chen, director general of the Department of National Economy of the NDRC; Mr. Wang Renfei, director general of the Department of Comprehensive System Reform of the NDRC; and Mr. Wang Shancheng, director general of the Department of Resource Conservation and Environmental Protection of the NDRC.

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

Wang Changlin:

Friends from the media, ladies and gentlemen, good morning. In 2025, facing complex and profound changes in the domestic and international landscape, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the whole nation rose to the challenge and pressed ahead with determination, successfully achieving the main goals of economic and social development, maintaining steady economic growth, further demonstrating the resilience of development, and making people's livelihood policies more people-centered, thus delivering high-quality results. My understanding mainly covers the following aspects.

First, greater efforts were made to implement more proactive and effective macroeconomic policies, enabling overall economic strength to reach a new level. Faced with a turbulent external environment, we have always maintained strategic resolve, concentrated on managing our own affairs well, strengthened counter-cyclical adjustments beyond conventional measures. Building on the package of incremental policies deployed at a meeting of the Political Bureau of the CPC Central Committee on Sept. 26, 2024, we continued to roll out measures to stabilize employment and the economy, and promote high-quality development. Solid steps to implement major national strategies and enhance security capacity in key areas were undertaken, and increased support for a new round of large-scale equipment upgrades and consumer goods trade-in programs took place. These efforts promoted the effective improvement in the quality and reasonable growth of the economy, with the total economic output reaching a new level of 140 trillion yuan for the year. The 5% growth rate continued to rank among the top among major economies in the world, with the increase equivalent to the total output of a medium-sized economy. The 14th Five-Year Plan has come to a successful conclusion, writing a new chapter in the story of China's miracle.

Second, greater efforts were made to accelerate high-level scientific and technological self-reliance, and new breakthroughs were achieved in the development of new quality productive forces. Faced with the pressure of transition from old to new growth drivers, we have firmly implemented the innovation-driven development strategy, intensified our efforts to tackle core technologies in key fields, honed our skills and forged solid expertise, and achieved a surge of innovative results. Our research and application in artificial intelligence, biomedicine, robotics, and other fields are at the forefront of the world. We have made progress in building a modern industrial system, revitalized and upgraded traditional industries, and accelerated the creation of new growth drivers in emerging and future industries. The added value of the manufacturing industry has ranked first in the world for 16 consecutive years. Practice has shown that attempts to hold China back through technological bottlenecks will not succeed. China possesses a strong culture of innovation and enormous innovative potential.

Third, we have made greater efforts to address blockages and bottlenecks in economic circulation, and made new strides in reform and opening up. Faced with institutional and systemic obstacles and deep-seated contradictions, we have deepened reforms in key areas and links, and made in-depth progress in building a unified national market. The advantages of China's enormous market have been further consolidated and expanded, and the competitive landscape in key industries has continued to improve. We promulgated and implemented the Private Sector Promotion Law, and maintained regular communication with private entrepreneurs. Last year, our commission held more than 120 symposiums with private enterprises to provide targeted and practical assistance in solving their development challenges. China has steadily promoted and expanded independent and unilateral opening-up, and island-wide special customs operations were launched in the Hainan Free Trade Port. Despite the challenges, China's goods exports grew by 6.1% year on year, with exports to non-U.S. markets accounting for 88.9% of the total. The total value of China's imported goods reached 18.48 trillion yuan, maintaining a share of around 10% of global imports. China has become a major export destination for 79 countries and regions, fully demonstrating the strong resilience and positive momentum of its foreign trade.

Fourth, we focused on promoting coordinated development and integration, ushering a new phase of regional and urban-rural development. Faced with the problem of unbalanced development, we have coordinated the deep implementation of regional strategies and promoted integrated regional development. We have continuously advanced regional coordinated development strategies and major regional initiatives, consolidated and enhanced the leading role of the three major power source regions. Meanwhile, the construction of the Yangtze River and Yellow River green development belts has been further deepened, and the balanced development across the four key regions has been steadily enhanced. We have made further progress in people-centered new urbanization, with the share of permanent urban residents in the total population reaching 67.89% by the end of the year, up 0.89 percentage points from the previous year. In other words, more than 10 million people have now embraced a modern urban lifestyle.

Fifth, we focused on addressing the public's most pressing concerns and difficulties, achieving new improvements in public well-being. In response to the public's new expectations, we further strengthened the development of inclusive, foundational and essential livelihood projects, and worked to promote high-quality, full employment. The average surveyed urban unemployment rate for the year stood at 5.2%. We implemented the child care subsidy system in an orderly manner, gradually rolled out free preschool education and optimized holiday arrangements, giving every household a tangible sense of gain. By prioritizing improvements to public welfare, we opened up new space for development.

The Central Economic Work Conference has laid out comprehensive arrangements for this year's economic development. We will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, and steadily advance high-quality economic development. We will fully tap into our economic potential, focus on promoting reform and innovation, and continue to strengthen our internal foundations. By doing so, we are fully confident and capable, with favorable conditions, to ensure a good start to the 15th Five-Year Plan.

That concludes my introduction.

Shou Xiaoli:

Thank you, Mr. Wang, for your introduction. We'll now open the floor to questions. Please identify your media organization before asking your questions. You may now raise your hands.

CCTV:

The year 2026 marks the beginning of the 15th Five-Year Plan period, and high expectations are being placed on China's economy. What are the main aspects of this core potential? And how can we fully tap into China's economic potential? Thank you.

Wang Changlin:

These questions concern China's economic potential. I'll invite Mr. Zhou from the Department of National Economy to answer them.

Zhou Chen:

Thank you for your questions. Yesterday, the National Bureau of Statistics released statistical data on China's 2025 economic and social development. These hard-won achievements fully demonstrate the key features of China’s economy: a solid foundation, multiple advantages, strong resilience and vast potential. The market itself is a scarce resource, and China’s ultra-large market represents enormous potential and powerful momentum. Looking ahead to 2026, China's economic structure will continue to improve, development momentum will increasingly be driven by innovation, and the overall development trend will remain positive. As new quality productive forces develop steadily, we believe that consumption and investment, technology and industry, as well as urban-rural and regional development, will all unleash substantial development potential. Specifically, the analysis can be approached from three perspectives: points, lines and areas.

First, looking at points, new technologies, products and application scenarios are gaining momentum. Emerging growth drivers such as new energy, new materials, aerospace, quantum technology, bio-manufacturing and embodied AI are poised for rapid growth. The installed capacity of new-type energy storage has exceeded 100 million kilowatts. What does this scale represent? It accounts for more than 40% of the global total. The "AI Plus" initiative, launched last year, is empowering and enhancing efficiency across China’s vast array of application scenarios. AI is rapidly moving from the digital world to the physical world, transitioning from "talking" to "doing." This will drive explosive growth in high-end manufacturing, emerging consumption and new business formats and models. Looking at the 2025 data, high-tech manufacturing value added now accounts for more than 17% of total industrial output from enterprises above designated size. Looking ahead, we are currently planning and advancing a series of landmark high-tech industrial projects for the 15th Five-Year Plan period.

Second, looking at lines, innovation chains, industrial chains and talent chains are integrating at a faster pace. As we all know, China has a complete industrial system, an ultra-large market of more than 1.4 billion people, and the world's largest and most comprehensive talent pool. The number of graduates in science, technology, engineering and mathematics exceeds 5 million annually, providing full-chain, full-scenario advantages for taking innovation "from the lab to the market." What people experience most directly is probably the digital economy, such as digital consumption, digital trade, and especially the recently popular micro-dramas. These are vivid examples of how innovation, industry and talent converge to achieve cluster-based growth. In 2025, the value added of China’s digital economy is expected to reach 49 trillion yuan, accounting for 35% of GDP, and will create even greater market space in the future.

Third, looking at areas, the innovation-leading role of growth poles continues to strengthen. China is now home to 24 of the world's top 100 innovation clusters, the most of any country for three consecutive years. Among them, the Shenzhen-Hong Kong-Guangzhou cluster has jumped to the top spot globally. Among the top 15 innovation clusters, China accounts for five, or one-third. The Central Economic Work Conference has made arrangements to build three international sci-tech innovation centers in Beijing (Beijing-Tianjin-Hebei region), Shanghai (Yangtze River Delta region), and the Guangdong-Hong Kong-Macao Greater Bay Area. The recently established national venture capital guidance fund has set up three dedicated regional funds. These funds progressively amplify their impact through investments in sub-funds and direct projects, accelerating the development of global sci-tech innovation hubs and major incubators of emerging industries.

The Chinese economy is like a vast ocean. We will continue to combine policy support with reform and innovation to fully unleash the enormous potential within this ocean. By transforming development potential into new momentum and converting technological advancement into new economic growth, we will ensure the 15th Five-Year Plan gets off to a good start.

Yicai:

The Central Economic Work Conference pointed that there is an imbalance where supply outpaces demand in the domestic economy. What macroeconomic policies will be implemented in 2026? And how can we fundamentally and specifically resolve this issue? Thank you.

Wang Changlin:

Thank you for your questions. China's economy does indeed face the issue of strong supply and weak demand. As we all know, economic development is a process in which supply and demand interact and drive each other. Supply meets existing demand, while new demand drives supply and generates new offerings, creating a virtuous economic cycle. Currently, insufficient demand is a prominent issue in China's economic development, while inadequate supply also exists. As we all know, our supply has shifted from "whether we have it" to "how good it is." For certain products, demand is strong, but supply cannot keep up. In response to these issues, we should resolutely implement the spirit of the Central Economic Work Conference. This includes expanding domestic demand and optimizing supply, while promoting a dynamic balance and virtuous cycle between supply and demand at a higher level. We must foster an economic growth model driven by domestic demand, consumption and endogenous growth. We will make efforts in three key areas.

First, we must focus macroeconomic policies on strengthening the domestic economic cycle and comprehensively expanding domestic demand. The priority is to develop and implement a plan for the domestic demand expansion strategy during the 2026-2030 period that aligns with consumption upgrading trends and the needs of the new round of technological revolution and industrial transformation. This plan will deliver innovative measures and resource support so that new demand can lead to new supply and new supply can create new demand, achieving mutual reinforcement between supply and demand and facilitating cyclical upgrading.

Second, we need to strengthen our efforts in developing the real economy and accelerate the construction of a modern industrial system. The real economy is the foundation of China's economic development. To meet the demands of industrial transformation and upgrading, we must continuously generate new supply and new jobs through innovation. We must pursue intelligent, green and integrated development to upgrade key industries, cultivate and expand emerging and future sectors, and thoroughly implement the "AI+" initiative. We should leverage the exemplary role of the national venture capital fund and explore establishing a national-level M&A fund. We must strengthen strategic planning and investment guidance for government investment funds, promote innovation, entrepreneurship and creativity, and accelerate the cultivation and development of new quality productive forces.

Third, we should focus market regulation on advancing the unified national market and fully stimulating market vitality. The key is to comprehensively address "involution-style" competition by shifting from competing on price to competing on value. We should improve mechanisms for market access, fair competition and eliminating excess capacity, strengthen capacity oversight, and proactively address temporary supply-demand imbalances. We must further clarify the boundaries of encouraged and prohibited items in local investment attraction, while standardizing local economic promotion activities. We should strengthen price regulation in key industries, address enterprises' disorderly low-price competition in accordance with laws and regulations, and create a high-quality market order characterized by appropriate prices and healthy competition. We will vigorously implement a quality branding strategy to help resolve "involution-style" competition.

That's all from me.

21st Century Business Herald:

How can we assess the effectiveness of the "two new" policies (large-scale equipment renewal and consumer goods trade-ins) in 2025? How effective have the policies been in stimulating consumption and investment? The 2026 "two new" policies have clarified the scope of support and subsidy standards. Building on nearly two years of implementation, how can we improve implementation mechanisms to better benefit the public? Thank you.

Wang Changlin:

The "two new" policies, particularly the trade-in program, have significantly stimulated consumption over the past year and will continue to do so this year. Now, I would like to invite Mr. Wang Shancheng to address these questions.

Wang Shancheng:

Thank you for your questions. Promoting large-scale equipment renewals and consumer goods trade-ins is a major decision made by the CPC Central Committee and the State Council, aimed at advancing the overall vision of high-quality development. It also represents an important measure to expand domestic demand and strengthen macroeconomic countercyclical adjustments. The "two new" policies have been highly effective and delivered remarkable results since their implementation in 2024. According to relevant data, the "two new" policies have played a major role in stabilizing investment, expanding consumption, promoting transformation and improving people's livelihoods since 2024. First, they have boosted investment. In 2025, the allocation of ultra-long-term special treasury bonds supported approximately 8,400 equipment renewal projects, driving a total investment of over 1 trillion yuan. This contributed to an 11.8% year-on-year increase in investment in equipment and tools, and boosted overall investment growth by 1.8 percentage points. Second, they have stimulated consumption. In 2025, over 360 million people applied for subsidies to trade in old goods for new ones, driving sales of related products to more than 2.6 trillion yuan and directly boosting total retail sales of consumer goods by 0.6 percentage point. Third, they have accelerated the green transformation. Since the implementation of the "two new" policies, the recycling system has been rapidly improved, with more than 29,000 new intelligent community recycling facilities added nationwide. Energy conservation and carbon reduction standards have been steadily advanced, with all 294 national standards related to energy consumption and emissions under the "two new" policies being released. Additionally, the promotion of green and low-carbon products has been accelerated, with nearly 60% of vehicles purchased by consumers being new energy vehicles and more than 90% of home appliances achieving top-level energy and water efficiency ratings. The "two new" policies have led to annual energy savings of more than 69 million tons of standard coal and a reduction in carbon emissions exceeding 170 million tons.

As everyone knows, before the New Year's Day, China announced policies to implement large-scale equipment renewal and consumer goods trade-in programs in 2026. These policies further optimized the scope of support, subsidy standards and implementation mechanisms. China also promptly allocated the first batch of 62.5 billion yuan in ultra-long special treasury bond funds to support consumer goods trade-ins. Local governments successively implemented the consumer goods trade-in program on Jan. 1, achieving a smooth policy transition and seamless continuity. Regarding how to further improve fund utilization efficiency and enhance the effects of policy stimulus, the main arrangements are as follows:

Regarding equipment renewal, we will first lower the investment threshold. We will further lower the investment threshold for declared programs, increase support for small- and medium-sized enterprises, and expand policy coverage. Second, we will enforce strict requirements. We will clarify project approval criteria and strengthen review standards across sectors to improve the quality of project assessments. We will standardize equipment depreciation and disposal procedures to avoid resource waste. Third, we will strengthen supervision. We will improve the closed-loop management system for equipment renewal projects and hold all parties accountable for their management responsibilities. We will strengthen daily coordination and supervisory inspections, accelerate project construction and implementation, and improve fund utilization efficiency.

Regarding the consumer goods trade-in program, we will first optimize fund allocation. We will determine funding levels for each region based on factors such as consumption potential and the effectiveness of policy implementation. Second, we will standardize subsidy criteria. In accordance with the requirements for building a unified national market, we will implement a unified subsidy standard nationwide for the scrapping and replacement of vehicles, trade-in programs of six categories of home appliances, and purchases of four categories of digital and smart products. Third, we will ensure that funds are used in a balanced manner. We will rationally manage the work pace and allocate central government funds in batches every quarter. We will guide local governments to spend subsidy funds in a balanced and orderly manner, ensuring a smooth transition across weeks, months and quarters. We will urge local governments to establish systems for advance subsidy payments to resolve delayed payment issues and ease the financial burden on enterprises. Fourth, we will crack down on illegal activities. We will strictly audit funding and accurately identify all types of illegal and irregular activities. We will implement strict price controls. Any fraudulent practices, such as obtaining subsidies through deception or raising prices before receiving subsidies, will be investigated, punished, exposed and cracked down on.

In summary, in 2026, we will optimize the scope of support and subsidy standards for the "two new" policies. We will improve implementation mechanisms at every stage and strengthen the whole-chain management of projects and funds. This will enhance the accuracy, convenience and effectiveness of the "two new" policies to ensure greater outcomes. Thank you.

ThePaper.cn:

The CPC Central Committee has proposed promoting a "reasonable recovery in prices," and there are differing views in society on price issues. How should we view price issues? How can we promote a reasonable recovery in prices? Thank you.

Wang Changlin:

The question you raised is one that many people are currently concerned about. Price issues affect both economic operations and are closely connected to people's lives. We should view this issue from a dialectical perspective. As we all know, a rapid increase in prices will drive up the cost of living for residents, while lower prices will indeed help residents save money in the short term. However, if the prices remain low for an extended period, this will be detrimental to enterprises' revenue, leading to declining employment and reduced income growth for residents. It will also have an adverse impact on the overall economic cycle. Therefore, promoting a reasonable recovery in prices is an important objective of our macroeconomic management.

In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we, together with relevant departments, have implemented a series of regulatory, reform and supervisory measures to promote a moderate recovery in prices. Since the fourth quarter of 2025, price trends have shown signs of improvement. The consumer price index (CPI) has rebounded for four consecutive months. The CPI rose by 0.8% year on year in December, reaching its highest level in nearly 34 months. The core CPI has held steady at a 1.2% year-on-year increase for three consecutive months, the highest rate in nearly 50 months. The producer price index (PPI) decline has also narrowed. In December, the PPI decreased by 1.9% year on year, a rebound of 1.7 percentage points from the low point of the year. Throughout this process, we have pursued targeted structural policies, prioritizing stable supply and pricing of goods essential to livelihoods while working to keep prices of basic necessities stable. As you can see, while the overall CPI has rebounded, the prices of essential consumer goods have remained stable. Food prices in the CPI dropped by 1.5% throughout the year. Overall, both the CPI and PPI have shown an upward trend, suggesting a recovery.

Next, we will earnestly implement the guiding principles of the Central Economic Work Conference by strengthening structural regulation, adhering to a two-way approach that simultaneously addresses supply and demand, with regulation and reform working in coordination. We will also work together with relevant departments to implement a comprehensive set of policies to continuously promote a reasonable recovery in prices. In terms of aggregate policies, we will implement a more proactive fiscal policy and a moderately accommodative monetary policy, take promoting a reasonable rebound in prices as an important consideration in monetary policy, give full play to the integrated effect of existing and incremental policies, and foster a virtuous interaction between economic growth and price rebound. In terms of structural policies, we will further implement special initiatives to boost consumption, formulate and carry out a plan to increase the incomes of urban and rural residents, optimize the implementation of the "two new" policies (upgrades and trade-ins), and steadily advance the "two priorities" initiative—the implementation of major national strategies and security capability building in key areas—to better align supply with demand. We must intensify efforts to address "involution-style" competition, formulate regulations for the development of a unified national market, regulate the behavior of local governments and enterprises, reinforce the market's survival-of-the-fittest mechanism, and facilitate the exit of outdated and inefficient production capacity. The main focus is on both ends: on the one hand, expanding demand, and on the other hand, curbing involution-style competition. As everyone has seen, these two aspects have played a significant role in price rebound. In terms of policy reform, we need to further rationalize pricing mechanisms, promote efficient resource allocation, and ensure a safe and stable supply. At the same time, we must continue to ensure the supply of essential consumer goods and the stability of their prices, maintain tight regulation across the entire chain of production, supply, storage, and sales, and ensure sufficient supply and stable prices, thereby consolidating the foundation of people's livelihoods. Thank you.

N Video at Southern Metropolis Daily:

You just mentioned the need to further promote the development of a unified national market, which is a key support for smooth domestic circulation and has attracted a lot of interest from all sectors of society. How is this work progressing? And what are the next steps for further advancing this? Thank you.

Wang Changlin:

I would like to invite Mr. Wang to answer your questions.

Wang Renfei:

Thank you for your questions. Building a unified national market is a major decision made by the CPC Central Committee. Over the years, all relevant parties have earnestly implemented the plans of the CPC Central Committee and the State Council, and positive results have been achieved in the development of a unified national market. To summarize, I believe the work can be examined from three aspects. First, social consensus has been markedly strengthened. The concept of a unified national market has taken root among the people, and the initiative and enthusiasm of all parties to integrate into and contribute to the development of a unified national market have been significantly enhanced. Second, the basic framework of the market has basically taken shape, the foundational market institutions have been continuously strengthened, market infrastructure has been steadily improved, and the flow of factors of production has become smoother. Third, the effects of the development are becoming increasingly visible. The market, as the scarcest resource, is being fully leveraged. And the unified national market is playing a growing role in pooling resources, driving growth, stimulating innovation, expanding domestic demand and promoting competition. I will give you three sets of figures: First, from January to November last year, the sales revenue of interprovincial trade accounted for 41.1% of national sales revenue, an increase of 0.8 percentage point year on year. Second, the electricity volume of interprovincial transactions accounted for 24% of the national market-based electricity volume, an increase of 1 percentage point year on year. Third, in the first three quarters of last year, the ratio of China's total social logistics costs to GDP was 14%, a decrease of 0.1 percentage point year on year. These "two increases and one decrease" reflect, from some perspectives, that our factor resources are being optimized on a larger scale and that market transaction costs are continuously decreasing.

The Central Economic Work Conference incorporated the in-depth advancement of a unified national market into the overall requirements of this year's economic work, further highlighting the extreme importance of this work. We understand that next, the key is to make all-out efforts in deepening progress.

First, we will push forward the deepening of institutional development. In summary, it can be described as "one regulation, two lists and three systems." One regulation refers to studying and formulating the regulation for the development of a unified national market to strengthen legal safeguards. Two lists refer to formulating and issuing a list of items that hinder the development of a unified national market and a list of items that are encouraged and prohibited in attracting investment, thereby clarifying what local governments can and cannot do in promoting economic development. The three systems refer to improving the statistical, fiscal and taxation, and assessment systems that are conducive to developing a unified national market, and to improving the incentive and restraint mechanisms. By improving the rules and regulations, we can further guide all regions and departments to firmly ensure that local concerns yield to the overall situation, minor principles yield to major ones, and smaller markets yield to the service of the unified national market.

Second, we will make further progress in empowering high-quality development. To implement the basic requirements of "five unifications and one openness," we will promote breakthroughs in the unified market across the four major areas of electricity, transportation, technology and data, and introduce a series of high-value policies and measures to make the development of a unified market more tangible and perceptible to enterprises and the public, better leverage the advantages of a super-large-scale market, and strongly support the building of a robust domestic market and high-quality economic development.

Third, we will make further progress in eradicating deep-rooted problems. Adhering to a problem-oriented approach, we will focus on key issues such as disorderly low-price competition among enterprises, local government procurement and bidding, and investment promotion and business attraction. We will improve the four working mechanisms of problem identification, clue verification, supervision and rectification, and interviews and notifications. We will resolutely remove obstacles and bottlenecks that hinder the development of a unified national market, dismantle local protectionism and market fragmentation, and thereby ensure that the unified national market becomes a fair stage for all types of business entities to compete. Thank you.

Jimu News:

The 15th Five-Year Plan period is a critical stage for achieving China's dual carbon goals.2026 marks the beginning of this period. How strong is China's resolve and commitment in advancing its green transition and realizing the dual carbon targets? What are the specific work arrangements? Thank you.

Wang Changlin:

This is a very important question involving dual carbon goals. Mr. Wang Shancheng will take this one.

Wang Shancheng:

Thank you for your questions. China's dual carbon goals, peaking carbon emissions by 2030 and achieving carbon neutrality by 2060, is China's solemn commitment to the international community and an inherent requirement for achieving its high-quality development. Since the 18th CPC National Congress, especially in the five years since the dual carbon goals were proposed, we have strengthened our measures and further intensified our efforts, which have led to remarkable results. China's green transition has entered a fast lane, with its achievements attracting worldwide attention. We have built the world's largest renewable energy system, established the world's most complete new energy industrial chain, and achieved the world's fastest popularization of new energy vehicles. China is one of the countries with the largest reduction in energy consumption intensity and carbon intensity. Currently, as international cooperation on climate change encountering setbacks, China's firm commitment and effective implementation have injected stable expectations and long-term confidence into the global green development process, which demonstrates our determination and strength.

The 15th Five-Year Plan period is the decisive stage for peaking carbon emissions. Facing multiple difficulties and challenges ahead, we must coordinate green transition, economic development and energy security. 2026 marks the start of the 15th Five-Year Plan period. We will further strengthen our work measures and focus on the following four aspects:

First, we will accelerate energy transition. We will develop non-fossil energy with greater efforts, accelerate the construction of new power systems, and enhance the grid regulation capacity. We will develop green electricity direct supply and other models, expand the scale of green electricity consumption, and increase the proportion of non-fossil energy consumption, promoting the gradual coverage of new clean energy power generation to meet the new electricity demand of the entire society. We will also accelerate the transition of coal-fired power from a basic and guaranteed power supply to a supporting and regulating source, and continuously improve the clean and efficient utilization of fossil energy.

Second, we will promote industrial upgrading. On one hand, we will vigorously develop green and low-carbon industries, promote energy-saving and carbon-reducing transformation and clean replacement of coal in key industries, build zero-carbon industrial parks and factories, and encourage new industries and new business models. On the other hand, we will strengthen standard constraints, accelerate the elimination of backward and inefficient production capacity, and leverage the role of energy conservation review and carbon emission assessment to resolutely curb the blind development of high energy consumption and high pollution projects.

Third, we will strengthen comprehensive conservation. We will consistently adhere to the principle of prioritizing conservation, thoroughly implement the comprehensive conservation strategy, and strengthen the full-chain management and whole-process conservation of various resources. We will also vigorously develop circular economy, advocate conservation of food, water, electricity and sorting of household waste, popularize green and low-carbon products, and promote green and low-carbon production and lifestyle practices.

Fourth, we will conduct assessments scientifically. We will fully implement dual control over total carbon emissions and intensity, and establish and improve comprehensive evaluation and assessment systems for carbon peaking and carbon neutrality, industry carbon management and control, as well as product carbon footprints. We will also improve incentive and constraint policies, give full play to the role of market mechanisms, and foster a concerted effort across society in implementing these measures. Thank you.

Top News:

The Central Economic Work Conference stressed the need to continuously pursue both policy support and reform and innovation. What considerations do you have this year for enhancing the synergy between reforms and policy supports? Thank you.

Wang Changlin:

This is an important issue regarding reform and innovation, and also a vital principle we have to understand. Mr. Wang Renfei will answer your question.

Wang Renfei:

Thanks for your question. Adhering to both policy support and reform and innovation is an important experience in macroeconomic governance in the new era. At present, China's economic development is facing a complex interplay of cyclical, structural, and institutional problems. Solving these problems requires a comprehensive approach, combining strong policy support with proactive reforms. Macroeconomic policies focus on counter-cyclical adjustments to stabilize the overall economy, while reform measures aim to streamline systems and mechanisms to enhance internal driving forces. The effectiveness of macroeconomic policies needs to be supported and released by reform measures, while breakthroughs in reform need to be buffered and underpinned by macroeconomic policies. Advancing in tandem and complementing each other, the two can generate complementary, additive, and multiplicative effects, producing a combined amplification effect to better achieve a combination of short- and long-term solutions, and address both symptoms and root causes. The main considerations are specifically as follows:

First, we will enhance the coordination between reform and fiscal and financial policies. This year, we will continue to implement a more proactive fiscal policy and a moderately loose monetary policy. On the one hand, we will make more use of reform methods to smooth the policy transmission mechanism, improve the efficiency of policy implementation, give full play to the integrated effect of existing and incremental policies, and enhance the comprehensive effectiveness of counter-cyclical and cross-cyclical adjustments. On the other hand, efforts will be made to combine fiscal and financial policies. As many have noted, at a State Council executive meeting on Jan. 9, arrangements were made to implement a package of policies to promote domestic demand by leveraging coordinated fiscal and financial measures. This is to use reform and innovation to strengthen the coordination between fiscal and financial policies, thereby creating multiplier effects.

Second, we will enhance the coordination between reform and consumption and investment policies. In terms of consumption, we will relax market access restrictions and optimize supervision to further eliminate the unreasonable restrictions in the consumption field. We will establish and improve management measures that adapt to new consumption forms, models and scenarios, and accelerate the cultivation of new growth drivers in consumption. In terms of investment, we will closely integrate investment in both physical assets and human capital, and enhance market-driven momentum for effective investment. We will leverage the role of new policy-based financial instruments, implement measures to further promote the development of private investment, improve the long-term mechanism for private enterprises to participate in the construction of major projects such as nuclear power, and at the same time, give full play to the role of government investment to better stimulate social investment.

Third, we will enhance the coordination between reform and industrial policies. It should be mentioned that after the previous stage of curbing the "rat race" competition, the market ecology and competitive order of related industries have steadily improved. However, sustained efforts are still needed. On the one hand, we will further promote the upgrading of related industries through industrial policies, standards guidance, and quality supervision. On the other hand, as I just mentioned, it is necessary to implement the arrangement of further advancing the building of a unified national market. We will regulate the economic promotion activities of local governments, local investment attraction activities, and fiscal subsidy policies to create a healthy market ecosystem. This will enable the market mechanism of "survival of the fittest" to truly meet their potential. It will also invigorate all business entities, enabling sustained improvements in industrial performance and market expectations.

Fourth, we will enhance the coordination between reform and innovation policies. The development of new quality productive forces requires the supply of corresponding new production relations and institutions. The key focus in this regard is to coordinate and promote reforms in market access, factors of production, and application scenarios. We will refine the market access system to ensure greater accessibility for new forms of business and new sectors. We will deepen the reform to promote market-based allocation for factors of production and actively explore ways of allocating new factors of production, such as aerospace, marine resources, underground space, and spectrum. In particular, we will fully leverage the role of application scenarios as both the scarce resource and new policy tools. Following the State Council's launch of relevant measures for cultivating and opening application scenarios at the end of last year, application scenarios have recently become a buzzword in society. We understand that an application scenario is a systematic pilot-scale testing, which includes both "hard verification" of technological products and supporting infrastructure, and "soft verification" of business models, market space, and supporting systems. It can be summarized as a common systematic verification in "two hard and two soft" dimensions. In the next step, we will support qualified regions to conduct pilot programs, while guiding governments and central and state-owned enterprises to take the lead in opening application scenarios and developing a number of high-value and comprehensive landmark application scenario projects. These are tailored to local conditions, thereby boosting industrial innovation and development. Thank you.

Shou Xiaoli:

Let's continue with the questions. There are two more reporters raising their hands. We will have our last two questions.

CNBC:

What measures, as part of efforts to boost domestic demand, will be taken this year to increase consumer income? Thank you. 

Wang Changlin:

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

Zhou Chen:

This is a very good question, because people are quite concerned about boosting domestic demand. Improving consumer income is a very important aspect of this, and I think it can be viewed from multiple perspectives and in a comprehensive manner.

The CPC Central Committee and the State Council have attached great importance to expanding domestic demand. We have adhered to expanding domestic demand as a strategic focus and continuously enhanced the endogenous driving force and reliability of the domestic economic cycle. In recent years, we have achieved remarkable results. For example, domestic demand has become a stable anchor for driving economic growth. In 2025, the per capita disposable income of residents increased by 5% in real terms, keeping pace with economic growth, and has become an important supporting factor for the growth of domestic demand. Domestic demand contributed more than 67%, that is, two-thirds, to economic growth throughout the year, with consumption accounting for 52% of that. New demand leads to new supply, and new supply creates new demand, forming a virtuous cycle. Domestic demand has become the primary driver for transformation and upgrading. We are seeing consumption moving toward new trends, with the market size of new energy vehicles and online sales remaining the largest in the world. Investment is focusing on high-quality development, with investment in high-tech services growing by 3.5% last year. In particular, investment in green energy sustained rapid growth. Domestic demand has also led to the creation of a large market with global influence. China has a population of over 1.4 billion, including a large middle-income group. Its consumption of physical goods such as clothing, food, housing, and transportation ranks first globally. In 2025, China's goods imports reached 18.5 trillion yuan, making it the world's most promising and fastest-growing super-large market. Of course, while acknowledging these achievements, we are also keenly aware that, as a reporter just mentioned, the contradiction of supply exceeding demand remains quite prominent in the domestic market. In accordance with the arrangements of the Central Economic Work Conference, our next step is to focus on "three close integrations."

First, we will closely integrate improving people's livelihoods with promoting consumption. Consumption is fundamentally determined by employment and income. Relevant authorities are currently formulating action plans to stabilize jobs, expand employment and improve job quality, as well as programs to increase the incomes of urban and rural residents. The goal is to enhance consumers' purchasing power while improving the supply of consumer goods. This year, we will continue to implement the consumer goods trade-in program. The first batch of funds, totaling more than 60 billion yuan, has already been allocated. We will further implement targeted initiatives to boost consumption and create new consumption experiences with broad appeal and high visibility. I would like to highlight in particular that the service sector has become a key focus of efforts to expand domestic demand. This year, we will promote the implementation of an action plan to expand capacity and improve quality in the services industry, introduce a package of substantive policies, and step up support for the sector's high-quality, efficient development.

Second, we will closely integrate "investing in things" and "investing in people." Investment drives both current demand and future supply. A portion of this investment directly converts into workers' incomes. We will focus on improving investment efficiency and fostering mutually reinforcing synergies between physical and human capital. Just now, Mr. Wang Changlin introduced the progress of the initiatives for implementing major national strategies and strengthening security capacity in key areas, many of which invest directly in people. We will adhere to a top-down approach that combines physical investment and institutional support, make good use of various government investment funds, optimize the structure of government investment, increase the share of government investment in livelihood-related projects, and thereby stimulate demand. At the same time, we will continue to issue and use new policy-based financial instruments to attract more private investment and social capital.

Third, we will closely integrate policy support with reform and innovation. Expanding domestic demand is not a stopgap measure but a strategic choice. It requires both strong policy support and deepened reform efforts. The State Council recently deployed a coordinated package of fiscal and financial policies to boost domestic demand. These policies mainly work through interest subsidies on loans and guarantee compensation to generate a "1+1>2" policy effect. This represents an important innovation in macroeconomic regulation and counter- and cross-cyclical adjustments, and also functions as a form of transfer payment. We will also actively use reform and innovation to address bottlenecks and blockages in the virtuous cycle between supply and demand. This includes removing unreasonable restrictions on consumption, advancing pilot programs for new consumption forms, models and scenarios, improving investment and financing mechanisms, and refining long-term mechanisms for private enterprises to participate in major national projects. We will work to arrest the decline in investment and restore stability, accelerate the building of a unified national market, and further smooth domestic economic flows.

That's all for my answer. Thank you.

Shou Xiaoli:

The last question, please.

Red Star News:

My question concerns coordinated regional development, which is a matter of overall and long-term significance. As this process moves forward, how should the central and western regions accurately define their own roles and further leverage their strengths? Thank you.

Wang Changlin:

Thank you for your question. I will answer it. Your question concerns coordinated regional development. China's central and western regions cover 18 provincial-level divisions, accounting for 82% of the country's land area and 53% of its population, playing a pivotal role in the country’s overall landscape of reform, development and stability. Regarding the role that central and western provinces should play in the overall national strategy, I believe it can be viewed from four perspectives.

First, they can stabilize the country's overall economic performance and provide strong support for national economic growth. In recent years, the economic output of the central and western regions has consistently accounted for more than 40% of the national total. Consider these figures: they represent 82% of China's land area, 53% of the population and 40% of GDP. While economic growth in these regions has outpaced the national average in recent years, their overall levels of industrialization and urbanization still lag behind the national level, indicating substantial development potential. At present and for some time to come, the central and western regions will remain a key force underpinning China's stable and positive economic performance.

Second, the central and western regions can shoulder their responsibilities in safeguarding and consolidating national strategic security. These regions play a uniquely important role in ensuring national security in food, ecology, energy and resources, as well as in industrial and supply chains. For example, the grain output of these regions reached nearly 800 billion jin (400 million metric tons) in 2025, accounting for 56% of the national total of 1.4 trillion jin. The Yangtze and Yellow Rivers, China's two "mother rivers," flow primarily through and nourish the vast lands of the central and western regions, giving them a prominent role as ecological barriers. Coal output in the central region stands at about 1.5 billion metric tons, while the western regions support the east through major projects such as the west-to-east power transmission program and west-to-east gas pipelines. This provides powerful momentum for economic and social development in eastern China. It can be said that the central and western regions have provided a solid guarantee for security in key areas, thereby effectively safeguarding overall national development and stability.

Third, the central and western regions can promote opening up and demonstrate new dynamism in building a new development paradigm. As the Belt and Road Initiative continues to advance, the central and western regions, especially the western region, are moving from the periphery of opening up to the forefront, displaying strong vitality. In 2025, the number of China-Europe freight train trips continued to grow, the freight volume of the China-Laos Railway increased 25% year on year, and the New International Land-Sea Trade Corridor connected with 127 countries and regions. In the first 11 months of 2025, the total import and export volume of goods in the central and western regions reached nearly 8 trillion yuan, up 9.4% year on year and 5.8 percentage points higher than the national growth rate. As openness continues to deepen, the central and western regions are becoming new engines for driving China's exports.

Fourth, they can play a role in promoting coordinated development and make greater efforts to enhance regional balance. In recent years, the central and western regions have accelerated efforts to address shortcomings in public services and infrastructure, steadily improving people's living standards. During the 14th Five-Year Plan period, the growth rate of per capita disposable income of residents in the central and western regions exceeded the national average, gradually narrowing the relative gap with the eastern region. However, we must also clearly recognize that the absolute gap still exists. For example, in 2024, the urbanization rates in the central and western regions were still 10.6 percentage points and 12.5 percentage points lower than that in the eastern region, respectively. As I just mentioned, these gaps represent our potential for future development. The central and western regions have a broad market and abundant factor resources, and have enormous potential in undertaking industrial relocation, boosting consumption and domestic demand, and advancing new urbanization and rural revitalization.

Going forward, the NDRC will continue to fulfill the responsibilities of the Office of the Central Leading Group for Coordinated Regional Development. Together with relevant departments and central and western provinces, we will continue to consistently advance regional strategies for the large-scale development of the western region and the rise of the central region, further transforming our potential advantages and spatial resources into economic advantages and tangible development results, enabling the central and western regions to contribute more to Chinese modernization. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang, and 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 Mi Xingang, Liao Jiaxin, Chen Xinyan, Dong Qingpei, Wang Xingguang, Lin Liyao, Xu Kailin, Xu Xiaoxuan, Zhou Jing, Li Huiru, Gong Yingchun, Fan Junmei, Liu Qiang, Wang Wei, Zhang Rui, Li Xiao, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

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Speakers:

Mr. Kang Yi, commissioner of the National Bureau of Statistics (NBS)

Mr. Fu Linghui, spokesperson and chief economist 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. 19, 2026

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 China's economic performance in 2025 and answer your questions.

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

Kang Yi:

Good morning, everyone. I am very pleased to be part of this SCIO briefing, and I would like to thank all friends from the media for your ongoing support of our work. Today marks the annual release of economic data, and there is significant interest in China's economic and social development over the past year. First, I will present the relevant data on China's economic performance in 2025, and then take your questions.

China's economy moved toward new growth drivers and higher-quality development in 2025, successfully achieving the expected goals.

In 2025, facing complex changes in the economic environment at home and abroad, all regions and departments, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, thoroughly implemented the decisions and plans of the CPC Central Committee and the State Council. We resolutely embraced the new development philosophy, promoted high-quality development, coordinated the domestic and international situations, and balanced development and security. Proactive and effective macro policies were enacted, and the construction of a unified national market was deepened. China's economy continued to embrace innovation and excellence despite challenges, achieving new outcomes in high-quality development. The main goals and tasks of economic and social development were achieved, and the 14th Five-Year Plan was successfully concluded.

According to preliminary estimates, the gross domestic product (GDP) was 140.1879 trillion yuan in 2025, an increase of 5.0% over the previous year at constant prices. By industries, the value added of the primary industry was 9.3347 trillion yuan, up by 3.9% over last year, that of the secondary industry was 49.9653 trillion yuan, up by 4.5%, and that of the tertiary industry was 80.8879 trillion yuan, up by 5.4%. By quarters, GDP increased by 5.4% year on year in the first quarter, 5.2% in the second quarter, 4.8% in the third quarter and 4.5% in the fourth quarter. GDP in the fourth quarter increased by 1.2% quarter on quarter.

First, grain output increased and production of animal husbandry grew steadily.

The total output of grain in 2025 was 714.88 million metric tons, an increase of 8.38 million metric tons over the previous year, or up by 1.2%. Of this total, the output of summer grain was 149.75 million metric tons, down by 0.1%, and that of early rice was 28.51 million metric tons, up by 1.2%. The output of autumn grain reached 536.62 million metric tons, up by 1.5%. By crop type, the output of wheat was 140.07 million metric tons, remaining basically unchanged; that of corn was 301.24 million metric tons, up by 2.1%; that of rice was 209.04 million metric tons, up by 0.7%; and that of soybeans was 20.91 million metric tons, up by 1.3%. The total output of pork, beef, mutton and poultry reached 100.72 million metric tons, up by 4.2% over the previous year, and marking the first time it has exceeded 100 million metric tons. Of this total, the output of pork was 59.38 million metric tons, up by 4.1%; beef, 8.01 million metric tons, up by 2.8%; mutton, 4.96 million metric tons, down by 4.2%; and poultry, 28.37 million metric tons, up by 6.7%. Milk production reached 40.91 million metric tons, up by 0.3% and that of eggs reached 34.98 million metric tons, down by 2.5%. A total of 719.73 million pigs were slaughtered throughout the year, up by 2.4%, and 429.67 million pigs were registered in stock at the end of the year, up by 0.5%.

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

In 2025, the total value added of industrial enterprises above designated size increased by 5.9% year on year. In terms of sectors, the value added of mining was up by 5.6%, that of manufacturing was up by 6.4%, and that of production and supply of electricity, thermal power, gas and water was up by 2.3%. The value added of equipment manufacturing went up by 9.2%, and that of high-tech manufacturing up by 9.4%, which were 3.3 percentage points and 3.5 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 4.6%, that of share-holding enterprises was up by 6.3%, that of enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan increased by 3.9%, and that of private enterprises was up by 5.3%. In terms of products, the outputs of 3D printing devices, industrial robots and new energy vehicles (NEVs) grew by 52.5%, 28.0% and 25.1% year on year, respectively. In December, the total value added of industrial enterprises above designated size grew by 5.2% year on year, or up by 0.49% month on month. In December, the Manufacturing Purchasing Managers’ Index stood at 50.1%, 0.9 percentage point higher than that of November; and the Production and Operation Expectation Index was 55.5%, up by 2.4 percentage points. In the first 11 months, the total profits made by industrial enterprises above designated size were 6.6269 trillion yuan, up by 0.1% year on year.

Third, the service sector grew steadily, and the modern service industry developed well.

The value added of the service sector went up by 5.4% over the previous year. Specifically, the value added of information transmission, software and information technology services grew by 11.1%, leasing and business services increased by 10.3%, transportation, warehousing and postal services grew by 5.2%, wholesale and retail trade increased by 5.0%, and accommodation and catering services grew by 4.9%. In December, the Index of Services Production grew by 5.0% year on year. Specifically, the Index of Services Production of information transmission, software and information technology services went up by 14.8%, leasing and business services went up by 11.3%, and financial intermediation went up by 6.5%. In the first 11 months, the business revenue of service enterprises above designated size grew by 7.8% year on year. In December, the Business Activity Index for Services was 49.7%, up by 0.2 percentage point compared with November; and the Business Activity Expectation Index for Services stood at 56.4%, up by 0.5 percentage point. Specifically, the Business Activity Index for sectors like telecommunication, broadcast, television and satellite transmission services, monetary and financial services, and capital market services stayed within the high expansion range of 60.0% and above.

Fourth, market sales expanded, and growth of service retail accelerated.

In 2025, the total retail sales of consumer goods reached 50.1202 trillion yuan, up by 3.7% over the previous year. Analyzed by different areas, retail sales in urban areas reached 43.2972 trillion yuan, up by 3.6%; and that in rural areas stood at 6.8230 trillion yuan, up by 4.1%. Grouped by consumption patterns, the retail sales of goods were 44.3220 trillion yuan, up by 3.8%; and the income of catering was 5.7982 trillion yuan, up by 3.2%. Sales of basic necessities and some upgraded goods showed good growth. Over the entire year, the retail sales of communication equipment, cultural and office supplies, sports and entertainment products, household appliances and audio-visual equipment, and grain, oil and food products by enterprises above the designated size increased by 20.9%, 17.3%, 15.7%, 11.0% and 9.3%, respectively. China's online retail sales reached 15.9722 trillion yuan, up by 8.6% over the previous year. Specifically, the online retail sales of physical goods were 13.0923 trillion yuan, up by 5.2%, accounting for 26.1% of the total. In December, the total retail sales of consumer goods rose 0.9% year on year, but fell 0.12% month on month. The retail sales of services in 2025 grew by 5.5% over the previous year. Specifically, the retail sales of cultural, sports and leisure services, communication information services, tourism consultation and rental services, and transportation services grew relatively quickly.

Fifth, investment in fixed assets declined year on year, while investment in the manufacturing sector maintained growth.

In 2025, investment in fixed assets (excluding rural households) reached 48.5186 trillion yuan, down by 3.8% over the previous year; and with real estate development investment deducted, the investment in fixed assets was down by 0.5%. Specifically, the investment in infrastructure declined by 2.2%; that in manufacturing grew by 0.6%; and that in real estate development fell by 17.2%. The floor space of newly-built commercial buildings sold was 881.01 million square meters, down by 8.7%; and the total sales of newly-built commercial buildings was 8.3937 trillion yuan, down by 12.6%. By industry, investment in the primary industry went up by 2.3%; that in the secondary industry went up by 2.5%; and that in the tertiary industry went down by 7.4%. The private investment went down by 6.4%. Deducting the investment in real estate development, the private investment decreased by 1.9%. In the high-tech industry, investment in the information service industry and the aviation, spacecraft and equipment manufacturing industry increased by 28.4% and 16.9%, respectively. In December, fixed-asset investment (excluding rural households) decreased by 1.13% month on month.

Sixth, imports and exports of goods grew steadily, and the trade structure continued to optimize.

In 2025, the total value of imports and exports of goods was 45.4687 trillion yuan, an increase of 3.8% over the previous year. The value of exports was 26.9892 trillion yuan, up by 6.1%, and the value of imports was 18.4795 trillion yuan, up by 0.5%. The imports and exports by private enterprises grew by 7.1%, accounting for 57.3% of the total value of imports and exports, 1.8 percentage points higher than that of the previous year. The imports and exports with Belt and Road partner countries grew by 6.3%, accounting for 51.9% of total imports and exports. Exports of high-tech products increased by 13.2%. In December, the total value of imports and exports of goods was 4.263 trillion yuan, up by 4.9% year on year. Specifically, the total value of exports was 2.5359 trillion yuan, up by 5.2%; and the total value of imports was 1.7271 trillion yuan, up by 4.4%.

Seventh, consumer prices were generally stable, and the core consumer price index (CPI) registered a moderate rebound.

In 2025, the Consumer Price Index (CPI) remained unchanged from the previous year. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 0.7%; clothing up by 1.5%; housing up by 0.1%; articles and services for daily use up by 0.9%; transportation and communication down by 2.6%; education, culture and recreation up by 0.8%; medical services and health care up by 0.8%; and other articles and services up by 9.3%. In terms of prices for food, tobacco and alcohol, prices of pork went down by 6.1%, fresh vegetables down by 3.9%, grain down by 1.0%, and fresh fruits up by 1.2%. The core CPI, excluding the prices of food and energy, grew 0.7% year on year, 0.2 percentage point higher than that of last year. In December, the consumer price index was 0.8% higher year on year, with the growth rate widening by 0.1 percentage point from the previous month, or up 0.2% month on month. In 2025, the producer prices for industrial products went down by 2.6% over the previous year; in December, it went down by 1.9% year on year, or up by 0.2% month on month. In 2025, the purchasing prices for industrial producers went down by 3.0% over that of the previous year; in December, it went down by 2.1% year on year, or up by 0.4% month on month.

Eighth, employment was generally stable and the urban surveyed unemployment rate was steady.

In 2025, the urban surveyed unemployment rate averaged 5.2%. 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 4.7%, of which, the rate of the population with non-local agricultural household registration was 4.4%. The urban surveyed unemployment rate in 31 major cities was 5.1%. Employees of enterprises worked 48.6 hours per week on average. In 2025, the number of rural migrant workers totaled 301.15 million, 1.42 million more than that of the previous year, or up by 0.5%. Specifically, local migrant workers totaled 121.09 million, up by 0.1%; and outbound migrant workers totaled 180.06 million, up by 0.8%.

Ninth, residents' income continued to increase and the incomes of rural residents grew faster than that of urban residents.

In 2025, the nationwide per capita disposable income of residents was 43,377 yuan, a nominal increase of 5.0% over that of the previous year, or a real growth of 5.0% after adjusting for price factors. In terms of permanent residence, the per capita disposable income of urban residents was 56,502 yuan, a nominal growth of 4.3% over the previous year or a real growth of 4.2% after adjusting for price factors. The per capita disposable income of rural households was 24,456 yuan, a nominal growth of 5.8% over the previous year or a real growth of 6.0% after adjusting for price factors. The median of the nationwide per capita disposable income nationwide was 36,231 yuan, a nominal increase of 4.4% over the previous year. Grouped by income quintile, the per capita disposable income of the low-income group reached 10,150 yuan, the lower-middle-income group 22,702 yuan, the middle-income group 35,536 yuan, the upper-middle-income group 55,586 yuan, and the high-income group 103,778 yuan. In 2025, the nationwide per capita consumption expenditure was 29,476 yuan, a nominal growth of 4.4% over the previous year or a real growth of 4.4% after adjusting for price factors. The per capita consumption expenditure on food, tobacco and alcohol accounted for 29.3% of the per capita consumption expenditure (Engel's coefficient), 0.5 percentage point lower than that of the previous year. The per capita consumption expenditure on services went up by 4.5%, accounting for 46.1% of the per capita consumption expenditure, the same with that of the previous year.

Tenth, total population declined and the urbanization rate continued to rise.

By the end of 2025, the national population was 1.40489 billion (including the population of 31 provinces, autonomous regions and municipalities directly under the central government and servicemen, but excluding residents of Hong Kong, Macao and Taiwan and foreigners living in the 31 provinces, autonomous regions and municipalities directly under the central government), a decrease of 3.39 million over the end of 2024. In 2025, the number of births was 7.92 million with a birth rate of 5.63 per thousand; the number of deaths was 11.31 million with a mortality rate of 8.04 per thousand; the natural population growth rate was minus 2.41 per thousand. In terms of gender, the male population was 716.85 million, and the female population was 688.04 million; and the sex ratio of the total population was 104.19 males to every 100 females. In terms of age structure, the population aged 16 to 59 was 851.36 million, accounting for 60.6% of the total population; and the population aged 60 and over was 323.38 million, accounting for 23.0% of the total population. Specifically, the population aged 65 and over was 223.65 million, accounting for 15.9% of the total population. In terms of urban-rural structure, the number of permanent residents in urban areas was 953.80 million, an increase of 10.30 million over the end of the previous year; and the number of permanent residents in rural areas was 451.09 million, a decrease of 13.69 million. The share of urban population in the total population (urbanization rate) was 67.89%, 0.89 percentage point higher than that at the end of the previous year. In terms of education level, the average years of schooling for the population aged 16-59 reached 11.3 years, an increase of 0.1 years from the previous year.

Overall, in 2025, the national economy withstood multiple pressures and maintained a steady growth with positive momentum, achieving new results in high-quality development. However, we must be aware that the impact of changes in the external environment has intensified, structural imbalances marked by strong supply and weak demand remain pronounced at home, and both long-standing issues and new challenges in economic development persist. In the next stage, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Eraas the guideline, fully implement the guiding principles of the 20th CPC National Congress, and plenary sessions of the 20th CPC Central Committee, and adhere to the arrangements made by the Central Economic Work Conference. We should adhere to the principle of seeking progress while maintaining stability and improving quality and efficiency, implement more proactive and effective macro policies, continuously expand domestic demand and improve the supply, optimize allocation of new resources and revitalize existing assets, develop new productive forces in accordance with local conditions, and further promote the construction of a unified national market. This will promote the effective improvement of both the quality and reasonable growth of the economy and ensure a good start to the 15th Five-Year Plan.

That concludes my introduction.

Shou Xiaoli:

Thank you, Mr. Kang, for your introduction. Now, the floor is open for questions. Please identify the media outlet you represent before asking your question.

Yicai:

2025 marked the final year of the 14th Five-Year Plan period. How would you evaluate China's economic performance last year? Thank you.

Kang Yi:

Thank you for your question. The year 2025 marked the final year of the 14th Five-Year Plan period and was a year of special importance in China's modernization drive. It was a truly remarkable year of development, with inspiring achievements. The economy forged ahead despite challenges, moving toward innovation and quality while successfully meeting all major targets. The 14th Five-Year Plan came to a successful conclusion, and a solid start was made to the new journey toward the second centenary goal. Regarding the economic performance of the past year, I would like to briefly summarize it in four words: stability, progress, innovation and resilience.

First, the overall pattern of stability was reinforced. Stability was a defining feature of China's economy in 2025. In the face of sharply shifting external conditions and complex domestic challenges, China implemented more proactive and effective macroeconomic policies. These measures not only mitigated the adverse effects of external changes but also secured the foundations of development amid turbulence. In 2025, China's GDP exceeded 140 trillion yuan for the first time, growing 5.0% year on year. The average urban surveyed unemployment rate stood at 5.2%, indicating overall stable employment. The goods trade reached a new high, and foreign exchange reserves surpassed $3.3 trillion. For an economy of China's massive scale, achieving such stable development amid intertwined risks and challenges was no easy feat.

Second, the momentum of development progress strengthened. Despite an increasingly complex environment and rising pressure to stabilize growth this year, China remained steadfast on the path of high-quality development. We accelerated the transition from old to new growth drivers and deepened reform and opening-up, maintaining an economic momentum that improved in quality. The economic structure was optimized: value added from high-tech manufacturing above the designated size accounted for 17.1% of all large-scale industrial enterprises, and final consumption expenditure contributed more than 50% to economic growth. Reform and opening-up continued to deepen, the construction of a unified national market advanced, the private sector promotion law was officially implemented, and efforts to curb involution-style competition yielded results. The launch of island-wide special customs operations in the Hainan Free Trade Port marked a major step in high-standard opening-up. In 2025, China's total goods import and export volume increased 3.8% year on year. People's livelihoods were effectively safeguarded, with residents' per capita disposable income increasing 5.0% in real terms, keeping pace with economic growth. Positive progress was made in public welfare undertakings such as elderly care, child care and medical care.

Third, innovation became more prominent as a driver of growth. The year was distinctly characterized by a drive toward innovation. In 2025, China's R&D intensity reached 2.8%, an increase of 0.11 percentage point from the previous year, exceeding the average level of OECD countries for the first time. According to the World Intellectual Property Organization, China's Global Innovation Index ranking broke into the top 10 for the first time. From new explorations in basic research to breakthroughs in key technologies, and from the deep integration of technological and industrial innovation to the widespread application of innovations benefiting the people, China delivered frequent successes in cutting-edge fields such as AI, quantum technology, and brain-computer interfaces. A number of major scientific research achievements emerged, and new quality productive forces continued to grow. In 2025, the value added of digital product manufacturing above the designated size  increased 9.3% year on year, with rapid growth in output of servers and industrial robots. Green electricity, green energy and the green economy flourished, with new energy vehicles exceeding 50% of domestic new car sales.

Fourth, the resilience of the economy became more evident.   Amid a severely disrupted global trade order and domestic growing pains from shifting growth drivers, China's economy still achieved both quantitative and qualitative gains, fully demonstrating its capacity to navigate challenges and withstand pressure in an unstable and uncertain environment. Globally, China's economic growth rate ranked among the highest of major economies, making it the most stable and reliable engine for global economic growth, with its contribution expected to reach around 30%. A more diversified pattern for stabilizing foreign trade rapidly took shape. China became a major trading partner of more than 150 countries and regions, with high-tech and high-value-added products becoming the main drivers of export growth, demonstrating the strong resilience of foreign trade. The export value of high-tech products increased 13.2% in 2025 compared with the previous year.

The above four aspects reflect China's solid economic foundation, numerous advantages, strong resilience and great potential. They are the result of the hard work and relentless efforts of the Chinese people, greatly enhancing our confidence for future development. Of course, we must also be clearly aware that there are still many long-standing issues and new challenges in economic development. The impact of external changes is deepening, the domestic imbalance between strong supply and weak demand remains prominent, and many risk factors persist in key areas. We must face problems and challenges head-on, diligently focus on our own work, strive to stabilize employment, enterprises, markets and expectations, and strengthen the internal driving force of development. This will enable us to achieve effective quality improvement and reasonable quantitative growth, steering the Chinese economy steadily forward through waves and on a long-term trajectory.

Thank you.

CCTV:

Since the beginning of the 14th Five-Year Plan, China's total economic output has made great strides, successively surpassing the 110 trillion, 120 trillion, 130 trillion and 140 trillion yuan thresholds. How do you view this development trend? Thank you.

Kang Yi:

Thank you for your question. During the 14th Five-Year Plan period, China's economy faced multiple unexpected shocks and effectively responded to a series of major risks and challenges. It overcame numerous obstacles and grew stronger, with total economic output reaching new heights. In 2025, it reached 140 trillion yuan, a remarkable achievement. This fully demonstrates China's steady economic progress, resilience under pressure, and vitality in pursuing innovation and excellence. What does this signify? Several key points can be highlighted:

First, it signifies that China's economy has a more solid foundation and greater resilience to risk. During the 14th Five-Year Plan period, China's total economic output successively surpassed the 110 trillion yuan, 120 trillion yuan, 130 trillion yuan and 140 trillion yuan thresholds. Such a large economic scale corresponds to substantial productivity. China's grain output has remained above 1.4 trillion jin (700 million tonnes) for two consecutive years. The value added of the manufacturing industry has ranked first in the world for 16 consecutive years. The share of the service sector's value added in GDP has increased to 57.7%. Furthermore, China's network infrastructure is the largest and most extensive in the world. All these constitute a solid foundation and strong support for resisting risks and achieving steady, long-term development.

Second, it signifies greater substance and steadier momentum in China's high-quality development. The successive expansion of China's economic aggregate is underpinned by the strong support of high-quality development. An economy of 140 trillion yuan is the fruitful result of putting the new development philosophy into practice. Over the past five years, new quality productive forces steadily grew, China's innovation index ranking entered the top 10 worldwide for the first time, and the value added of high-tech manufacturing above the designated size grew at an average annual rate of 9.2%. Digital technologies such as AI and 5G flourished, empowering countless industries. The transition to cleaner, low-carbon energy accelerated, and the market competitiveness of new energy products continued to increase. People's livelihoods were effectively guaranteed, with residents' income growth keeping pace with economic growth. These achievements have not only demonstrated the correctness and effectiveness of China's high-quality development path but also accumulated strong momentum for future development.

Third, it also signifies that China has provided stable support for the world economy while creating broader opportunities for cooperation. Throughout the 14th Five-Year Plan period, China's average annual contribution to global economic growth reached about 30%. Its complete industrial system served as a ballast for the global supply chain, providing valuable stability amid a turbulent, changing world economy. More importantly, China continues to represent a major source of opportunity for global development. In 2025, China's goods imports reached a new high of 18.5 trillion yuan, providing a vast market space for all countries. The negative list for foreign investment access continues to shrink, the "circle of friends" for visa-free travel continues to expand, and entry policies are being further optimized, greatly facilitating personnel exchanges and economic and trade cooperation. China has taken concrete actions to expand cooperation opportunities for countries worldwide.

Thank you.

Bloomberg:

We're wondering how big of a challenge will it be to ensure economic growth gets off to a good start in the first quarter of this year, given a high base of comparison from 2025? And what is China doing to counter the challenge, especially in consumption and investments? And we're also wondering if you could provide the breakdown of GDP growth contribution from final contribution, and net export and growth capital formation in the fourth quarter and for the full year. Thank you.

Kang Yi:

Thank you for your questions. You've asked two questions. Let me start with the first one.

In 2025, China's economy forged ahead despite headwinds, shifting toward high-quality and innovation-driven development. All major expected targets were achieved, demonstrating strong resilience and vitality and laying a solid foundation for this year's economic development. Recent indicators show positive changes in production, prices and expectations, with the economy maintaining steady, positive momentum. In December 2025, the year-on-year growth rates of the value-added of industrial enterprises above designated size and the Index of Services Production both accelerated compared to the previous month. The CPI rose 0.8%, the highest increase since March 2023, and core CPI rose more than 1% for four consecutive months. The year-on-year decline in PPI narrowed, while month-on-month increases continued for three consecutive months. Both the manufacturing PMI and the non-manufacturing business activity index returned to expansion territory. In terms of policy support, the State Council executive meeting deployed a package of coordinated fiscal and financial policies to promote domestic demand, and relevant departments are accelerating implementation to expand it further. The policies aimed at promoting large-scale equipment upgrades and trade-ins of consumer goods have been further refined, with the first tranche of funding allocated ahead of schedule, creating favorable conditions for a solid economic start this year.

When looking at China's economy, we need to take a comprehensive, dialectical, and long-term view. We should look not only at the current situation but also at long-term trends; not only at quarterly changes but also at annual trends; not only at the aggregate scale but also at the quality of development. Looking at 2026 as a whole, the supporting conditions and fundamental trends underpinning China's long-term economic growth remain unchanged, as does the momentum toward high-quality economic development. The foundations and conditions are in place to maintain stable, positive economic performance.

Regarding the second question, in 2025, the contribution rates of final consumption expenditure, gross capital formation, and net exports of goods and services to economic growth were 52%, 15.3% and 32.7%, respectively. In the fourth quarter, the respective rates were 52.9%, 16% and 31.1%.

Thank you.

Zhinews of Shenzhen Satellite TV:

In 2025, many regions across China actively pursued innovative practices and fostered new quality productive forces. What new highlights and changes have new quality productive forces brought to economic development? Thank you.

Kang Yi:

Thank you for your question. In 2025, China made considerable progress in innovation-driven development, industrial upgrading, digital empowerment and green transformation. New quality productive forces evolved from conceptual consensus into tangible development results, enhancing both the quality and sustainability of economic growth, and underscoring China’s firm resolve and concrete actions to proactively adapt and pursue new breakthroughs amid a complex external environment. Regarding new quality productive forces, I would summarize them with four key strengths.

First, our technological strength continued to improve. In 2025, China's total R&D expenditure reached 3.9262 trillion yuan, ranking second in the world for many years. China became the first country to reach more than 5 million valid domestic invention patents and has ranked first globally in PCT international patent applications for six consecutive years. High-value patent reserves in key core technology fields have been continuously strengthened. Major national projects delivered frequent breakthroughs, with numerous original and disruptive innovative results emerging. The Jiutian unmanned aerial vehicle completed its maiden flight, Tianwen-2 embarked on its asteroid exploration mission, the first electromagnetic catapult-type aircraft carrier was officially commissioned, and the CR450 high-speed train set a new "China Speed." These achievements demonstrate that China is taking solid, powerful steps toward high-level scientific and technological self-reliance.

Second, industries built momentum toward new strengths. Investment and production expansion continue in emerging fields such as high-end equipment, green energy and intelligent manufacturing, and the integration of technological and industrial innovation is bearing fruit. In 2025, equipment manufacturing and high-tech manufacturing enterprises above designated size accounted for 36.8% and 17.1% of total industrial value added, respectively. The low-altitude economy is taking flight, and embodied intelligence is enabling smart and efficient operations. The output of civilian drones and industrial robots increased 37.3% and 28%, respectively, compared to 2024. Intelligent manufacturing projects advanced steadily, the number of intelligent factories continued to rise, and the integrated application of the industrial internet achieved full coverage across all 41 major industrial sectors.

Third, digital penetration significantly increased. The digital industry, digital consumption and digital infrastructure have expanded across all domains, integrating into production and operations across countless industries and into the daily lives of millions of households. In 2025, the value added of digital product manufacturing enterprises above designated size increased 9.3% year on year, and the value added of information transmission, software and information technology services grew 11.1%. AI has become a trusted partner and helper for more people in their work and daily lives, genuinely adding convenience to everyday life. New consumption models and scenarios expanded rapidly, driving online retail sales growth of 8.6%. Construction of new infrastructure, such as 5G, gigabit optical networks, and the Internet of Things, progressed in an orderly manner.

Fourth, green leadership was fully demonstrated. China accelerated the construction of a clean, low-carbon, safe and efficient new energy system. In 2025, clean energy power generation — including hydropower, nuclear, wind and solar — by industrial enterprises above designated size increased 8.8% year on year. The share of non-fossil energy in total energy consumption rose about 2 percentage points year on year, and the output of green energy equipment, green materials and other products achieved rapid growth. The competitiveness of the new energy industry continued to improve, with annual production and sales of new energy vehicles both exceeding 16 million units, and green production and lifestyles becoming more widespread. The green transformation of traditional industries also achieved notable results. In 2025, enterprises above designated size in major energy-intensive industries, including building materials, steel, and non-ferrous metals, significantly reduced energy consumption per unit of value added compared to the previous year.

Thank you.

CNBC:

What were the highlights of service consumption in the past year? How did the share of service consumption change relative to goods retail in overall consumption in the fourth quarter? Thank you.

Kang Yi:

Thank you for your questions. Service consumption was indeed a significant highlight of economic performance in 2025. Given the widespread interest in consumption trends, I'd like to take this opportunity to briefly introduce some relevant statistics.

In terms of consumption type, there are two main categories: goods consumption and services consumption. The corresponding key statistical indicators are total retail sales of consumer goods, which primarily reflect goods consumption, and total retail sales of services, which track services consumption. Both indicators are collected from the enterprise sales side, that is, the supply side. In addition, there are statistical indicators that reflect consumption from the demand side, such as per capita consumption expenditure. This metric is derived from household surveys on income and expenditure. I'll briefly introduce some statistical indicators related to consumption. When it comes to consumption, we need to consider it from multiple perspectives. Generally speaking, total retail sales of consumer goods are used more frequently, but service consumption is now an indicator that also deserves greater attention. This question is very important.

In terms of consumption, China continued to expand domestic demand in 2025. With the implementation of special actions to boost consumption taking effect, the consumer market steadily expanded, its structure continued to optimize, and new consumption hotspots continued to emerge.

First, the role of consumption as a cornerstone became increasingly prominent. Total retail sales of consumer goods for the whole year exceeded 50 trillion yuan, an increase of 3.7% over the previous year, 0.2 percentage point faster than in 2024, ranking among the top in global retail markets. As the reporter just mentioned, service retail sales grew by 5.5% year on year. In recent months, the growth rate has accelerated month by month. The contribution of final consumption expenditure to economic growth was 52%, more than half, and 5 percentage points higher than the previous year. Consumption was the main driving force and stabilizing anchor of economic growth.

Second, the vitality of service consumption was unleashed. As living standards improve, residents' consumption is shifting from being primarily focused on goods to emphasizing both goods and services, with the potential of service consumption being continuously unleashed. In terms of enterprise sales, service retail sales in 2025 grew 5.5% over the previous year, 1.7 percentage points faster than retail sales of consumer goods. The share of services in total retail sales rose. As the reporter mentioned, the fourth-quarter share also rose. Service retail's share of total retail increased across the board, reflecting this trend. In terms of household consumption, per capita spending on services accounted for 46.1% of per capita consumption expenditure in 2025. Consumption scenarios continued to be innovated, and consumption environments were optimized. Sectors such as culture, tourism, entertainment and sports events achieved breakthroughs across the country. In 2025, retail sales of tourism consulting and rental services, transportation services, and cultural and sports leisure services all maintained double-digit growth, and total domestic box office revenue increased by more than 20% over the previous year.

Third, new types of consumption flourished. E-commerce, livestreaming marketing, and online entertainment drove rapid growth in online consumption. In 2025, online retail sales increased 8.6% year on year, with online retail sales of physical goods up 5.2%, accounting for 26.1% of total retail sales of consumer goods. New retail models, such as unmanned stores and warehouse membership stores, maintained double-digit retail sales growth. Green consumption also grew steadily, and production and sales of new energy vehicles ranked first in the world for 11 consecutive years. Digital technologies such as AI have become deeply integrated into consumption scenarios, effectively driving the improvement and expansion of information consumption. In 2025, retail sales of communication information services grew more than 10% year on year. Meanwhile, the silver economy, the ice and snow economy, and the debut economy continued to heat up, increasingly becoming new drivers of consumption growth.

Fourth, commodity consumption continued to grow. In 2025, retail sales of goods increased 3.8% year on year, 0.6 percentage point faster than the previous year. Sales of basic necessities such as grain, oil and food grew relatively rapidly, while sales of discretionary goods such as sports and entertainment products and communication equipment showed strong momentum. The scope and scale of consumer goods trade-in programs were expanded, using tangible financial incentives to bring high-quality durable consumer goods into people's daily lives. In 2025, retail sales of cultural and office supplies by enterprises above designated size climbed 17.3% over the previous year, furniture grew 14.6%, and household appliances and audiovisual equipment rose 11%, all achieving double-digit growth.

Looking ahead to 2026, despite pressures and challenges, many positive factors still support continued consumption growth, and the consumer market is expected to grow steadily. Several conditions support this: First, consumption upgrading holds huge potential. China has a population of over 1.4 billion and a large middle-income group, making it a super-large market with global influence. Currently, residents are increasingly prioritizing quality, with growing demand for personalized, diversified and premium products, which holds enormous potential. Second, policies to boost consumption continue to take effect. This year, we will thoroughly implement the special campaign to boost consumption and formulate and implement plans to increase urban and rural residents' incomes. The trade-in policy will continue in 2026 and is being continuously optimized. The first batch of 62.5 billion yuan in ultra-long-term special treasury bonds has been allocated in advance, and the removal of unreasonable restrictions in the consumption sector is being gradually advanced. These policies will support consumption growth. Third, the consumption environment is improving. The construction of a unified national market is helping to continuously optimize the consumption environment. Meanwhile, the application of new technologies and innovations will increase the supply of high-quality consumption. Immersive and experiential consumption scenarios are also being cultivated. Consumer rights protections are being continuously strengthened. All of these factors will help unleash greater consumption potential.

Thank you.

Beijing Youth Daily:

The current global economic situation is characterized by insufficient growth momentum intertwined with structural transformation. Under these circumstances, how should we view the trajectory of China's economy in 2026? Thank you.

Kang Yi:

Thank you for your question. The year 2026 marks the beginning of the 15th Five-Year Plan, and China's development has reached a new starting point. Despite the deepening impact of external changes and challenges to domestic stability and development, China's economy has a solid foundation, many advantages, strong resilience, and great potential. The long-term supportive conditions and fundamental trend of positive development remain unchanged. Overall, the opportunities outweigh the challenges, and favorable factors outnumber unfavorable ones. China's economy has both the conditions and support to achieve stable, positive growth in 2026.

In terms of development foundations, China achieved solid results in high-quality development during the 14th Five-Year Plan period. China's economic, scientific and technological strength, and overall national strength all reached new heights. Economic output grew by more than 36 trillion yuan over the past five years, and R&D investment intensity rose 0.44 percentage point. With stronger foundations and broader development space, China enters the 15th Five-Year Plan period with clear advantages and confidence. The long-term stable development of China's economy results from multiple factors working in synergy. These include institutional advantages, market strengths, a complete industrial system, and human resource advantages. This is both an overarching logic and a major underlying trend.

In terms of development momentum, steady economic progress in 2025 has created favorable conditions for further development. In 2025, China's economy forged ahead despite pressures, achieving 5.0% growth amid deepening adverse external influences, demonstrating its resilience and vitality. Since September, core CPI has risen more than 1% year on year for four consecutive months. In December, the manufacturing PMI returned to expansion territory. The flow of people, goods and information maintained relatively rapid growth. Moreover, positive factors driving steady, positive economic development are accumulating.

In terms of development momentum, the cultivation of new quality productive forces and the positive effects of reform continue to emerge. We are in a critical period of transitioning from old to new growth drivers. While the growth rate of some traditional industries and sectors is indeed slowing, emerging drivers are accumulating momentum, helping to offset downward pressure and boost upward momentum. For example, domestic large AI models are developing rapidly, AI technology is being widely applied, and the digital economy is driving rapid advancement in new quality productive forces. In 2025, the value added of digital product manufacturing enterprises above designated size increased 9.3% year on year. An average of 45,000 new energy vehicles rolled off production lines every day, and more than 500 million express parcels were delivered. Humanoid robots went from appearing on the Spring Festival Gala stage to showcasing at the World Humanoid Robot Games, and then to entering factories in an organized fashion. All of these developments are accumulating momentum. Meanwhile, China is advancing the construction of a unified national market, driving down logistics costs across society, and enacting the private sector promotion law. Many well-developed, concrete reform measures are being rolled out, which will further stimulate economic dynamism and vitality.

In terms of development support, more proactive and effective macroeconomic policies will safeguard stable economic operations. The fact that China's economy maintained steady growth in a complex environment in 2025 was largely due to the important role these policies played. The "two major" initiatives (major national strategies and the enhancement of security capacity in key areas) and "two new" initiatives (large-scale equipment renewals and trade-in of consumer goods) were expanded and strengthened. The Policies and Measures on Stabilizing Employment, Ensuring Stable Growth and Promoting High-quality Development were introduced, and comprehensive efforts were made to curb involution-style competition. These actions effectively expanded demand, optimized supply and stabilized the economy. In 2025, total retail sales of consumer goods grew 0.2 percentage point faster than the previous year, and industrial value added grew 0.3 percentage point faster. In 2025, the Central Economic Work Conference clearly stated that China should adhere to the principle of seeking progress while maintaining stability and improving quality and efficiency, give full play to the combined effect of existing and new policies, and strengthen counter-cyclical and cross-cyclical adjustments. The year 2026 marks the start of the 15th Five-Year Plan. All sectors will focus on key objectives and vigorously advance major projects, helping generate powerful momentum for development.

Recently, major international organizations have raised their forecasts for China's economic growth, indicating that the international community is optimistic about China's economic prospects. The Chinese economy is a vast ocean, not a small pond, capable of withstanding wind and waves, even violent storms. Looking back over the years, challenges facing the Chinese economy have never been absent, but opportunities have always accompanied them. We must strengthen our confidence and resolve, build consensus and improve our internal capabilities, enhance innovation-driven development, and deepen reform and opening-up. We must continuously strengthen the domestic economic cycle, promote effective qualitative improvement and reasonable quantitative growth, and strive to get the 15th Five-Year Plan off to a good start.

Thank you.

Elephant News:

We would like to ask about industrial production. How did industrial enterprises above designated size perform in 2025? What were the main characteristics? In addition, how do you assess the outlook for China's industrial production in 2026? Thank you.

Kang Yi:

I'd like to invite Mr. Fu Linghui to answer these questions.

Fu Linghui:

I'll answer your questions about industrial production. Industry is an important component of the real economy and a ballast for stable economic operations. In 2025, industrial production was characterized by rapid growth, structural optimization and new momentum, playing an important supporting role in stabilizing economic operations. The main characteristics are as follows:

First, industrial strength expanded. In 2025, China's industrial value added reached 41.7 trillion yuan, an increase of 5.8% over the previous year, with the growth rate accelerating by 0.3 percentage point. Its contribution to economic growth reached 35%, an increase of 1.8 percentage points over the previous year. As the mainstay of the industrial economy, manufacturing output continued to expand. In 2025, manufacturing value added reached 34.7 trillion yuan, an increase of 6.1% over the previous year, with its share of GDP remaining stable at around 25%. China's manufacturing sector is expected to have remained the world's largest for 16 consecutive years, with the advantages of a complete industrial system becoming more apparent.

Second, China's industrial structure was upgraded. The trend of high-end, intelligent and green development in the manufacturing industry became more pronounced. The value added of equipment manufacturing and high-tech manufacturing enterprises above designated size increased 9.2% and 9.4% respectively year on year, accounting for 36.8% and 17.1% of the total industrial value added of enterprises above designated size. Production of new products such as high-speed trains, industrial robots, and servers maintained rapid growth, and the green content of industry also increased. Production of new energy vehicles exceeded 16 million units, with production and sales volume remaining the world's largest for 11 consecutive years. Growth of green products such as wind turbine generators and bio-based chemical fibers also maintained a high level.

Third, industrial transformation and upgrading progressed. Relying on technological breakthroughs, digital empowerment and green transformation, traditional industries also cultivated new growth drivers. The value added of petroleum processing enterprises above designated size increased 6.7% year on year, with the biofuel processing sector up 16.8%. The chemical fiber industry increased 8.2%, with bio-based materials manufacturing up 27.9%. Industrial transformation continued to deepen, driving a gradual recovery in corporate profits. From January to November, in the building materials and chemical industries, profits of graphite and carbon product manufacturing enterprises above designated size increased 73.9% year on year, and biochemical pesticide and microbial pesticide manufacturing increased 48.3%.

Fourth, manufacturing enterprises' profitability improved. In the first 11 months, profits of manufacturing enterprises above designated size increased 5% year on year, compared with a decline of 4.6% in the same period last year. Profits of equipment manufacturing and high-tech manufacturing rose 7.7% and 10% year on year, respectively, providing strong support for improved profitability among industrial enterprises.

Overall, in 2025, industrial production maintained stable growth, the industrial structure was optimized, and the advantages of a complete industrial system became more prominent. At the same time, the impact of changes in the external environment gradually deepened, domestic transformation and upgrading faced growing pains, and some enterprises still encountered considerable difficulties in production and operations. Moving ahead, we must promote the deep integration of technological innovation and industrial innovation, continuously optimize the industrial structure, accelerate the cultivation of new quality productive forces, and promote the sound development of the industrial economy.

Thank you.

South China Morning Post:

The NBS recently announced that the CPI remained flat throughout last year, but rebounded to 0.8% year on year in December, a nearly three-year high. Does this mean downward price pressure has eased? What is your outlook for prices in 2026? Thank you.

Kang Yi:

Thank you for your questions. Price issues are of great concern to everyone. In recent years, China's price level has been generally low and has remained at a low level. In 2025, the CPI was  unchanged from the previous year, with slight fluctuations in the monthly year-on-year readings. When it comes to price issues, we must take a comprehensive and dialectical view, considering not only the overall picture but also the structure and policy developments.

First, the CPI exhibited distinct structural factors, with declines in food and energy prices having a significant impact on the headline figure. In terms of food prices, favorable climate conditions in China last year, coupled with ample hog production capacity, ensured a sufficient supply of meat, eggs, vegetables and other food items. As a result, food prices fell by 1.5% year on year, contributing approximately 0.27 percentage point to the CPI decline. In terms of energy prices, domestic energy prices declined due to downward fluctuations in international oil prices, which was also an important factor in the lower CPI. In 2025, energy prices fell by 3.3%, pulling down the CPI by approximately 0.25 percentage point. At the same time, it should be noted that the current low-level CPI is related to both complex changes in the domestic and international macroeconomic situation and to China's current stage of development. While the slowing momentum of certain traditional industries and external environmental shifts have pressured domestic prices, these factors are transitional.

Second, policies aimed at expanding domestic demand and related measures took effect, with the core CPI showing a moderate rebound. Driven by the consumer goods trade-in program, capacity management in some industries took effect, and supply-demand dynamics in some areas improved, leading to a recovery in prices of related products. In 2025, the core CPI, excluding food and energy prices, rose by 0.7% compared to the previous year, 0.2 percentage point higher than that in the first half of the year. December saw a 1.2% increase, marking the fourth consecutive month of growth above 1%. Specifically, in 2025, industrial consumer goods prices excluding energy rose 1.1%, with household appliances and communication equipment up 1.8% and 0.6%, respectively. Price declines for fuel-powered cars and new energy cars also narrowed significantly. Service prices maintained a moderate upward trend, rising 0.5% for the year.

Third, favorable factors driving a moderate rebound in the CPI are accumulating. Looking at the fundamentals, with the implementation of special initiatives to boost consumption, particularly incremental measures such as the coordinated fiscal and financial policy package to promote domestic demand, consumer demand is expected to gradually expand, laying a foundation for stable prices. In December, the CPI rose 0.8% year on year, the highest since March 2023. Food consumption increased during the New Year's Day holiday, while service consumption, such as dining out, visiting relatives and friends, and tourism, was relatively active. The nine-day Spring Festival holiday is also approaching, which will help drive a seasonal rebound in the CPI. Preliminary data for January shows prices for goods and services, such as fresh fruit, flight tickets and tourism, have generally remained stable with some increases. From a policy perspective, the effects of industry self-regulation and capacity management will continue to show. This year, capacity controls in key industries will be further strengthened, and product standards and quality will be improved, supporting price recovery.

Overall, promoting a reasonable rebound in prices benefits both businesses and residents by increasing incomes and stabilizing market expectations. We will continue to leverage the combined effects of macroeconomic policies, expand consumer spending, regulate market competition, and actively address supply-demand imbalances to promote a reasonable price recovery.

Thank you.

Shou Xiaoli:

Let's continue with the questions. We have many journalists waiting, but due to time constraints, we'll take the last two questions.

Zhonghongwang.com:

The 14th Five-Year Plan period was a crucial stage for China's transition toward high-quality development. What new progress and achievements have been made in economic and social development during this period? In addition, what is the outlook for the 15th Five-Year Plan period? Thank you.

Kang Yi:

Thank you for your questions. The 14th Five-Year Plan period has indeed been a truly remarkable and extraordinary part of China's development journey. We faced challenges head-on and forged ahead with determination, effectively responding to a series of major risks and challenges. We achieved new and significant accomplishments in economic and social development. Specifically, this was reflected in the following areas:

First, economic development achieved a new leap forward. During the 14th Five-Year Plan period, China's economy grew at an average annual rate of 5.4%, outperforming the world average. It continued to lead among the world's major economies and served as a major driver of global economic growth. As previously mentioned, total economic output crossed four thresholds, exceeding 140 trillion yuan. Converted at the average annual exchange rate, China's per capita GDP increased from $10,632 in 2020 to $13,953 in 2025, exceeding $13,000 for three consecutive years.

Second, innovative development achieved new breakthroughs. During the 14th Five-Year Plan period, R&D investment grew at an average annual rate of 10%, and the proportion of basic research expenditure reached 7.08% in 2025, a record high. China has topped the global rankings for three consecutive years in the number of top 100 sci-tech innovation clusters. The NBS also publishes an innovation index. In 2024, China's innovation index increased 25.5% compared to 2020, with the innovation environment and innovation output indices both rising 33.8%. Value added of the new industries, new formats, and new business models accounted for 18% of GDP, and value added of patent-intensive industries accounted for 13.38% of GDP. New-generation information technologies such as AI flourished, and the integration of digital technologies and the real economy continued to deepen. The proportion of computer, communication and other electronic input during production increased by about 1 percentage point, significantly higher than during the 13th Five-Year Plan period. In 2024, the value added of China's digital economy rose to 33.1% of GDP, with the core industries of the digital economy accounting for 10.5%.

Third, new strides were made in reform and opening up. During the 14th Five-Year Plan period, the construction of a unified national market was advanced, the business environment was continuously optimized, and the negative list for market access was reduced to 106 items. The third plenary session of the 20th CPC Central Committee rolled out more than 300 reform measures, and the fourth plenary session of the 20th CPC Central Committee also made arrangements for further deepening comprehensive reforms, pushing reform forward in both breadth and depth. China continued to expand high-standard opening up, with deeper and more substantive advances in Belt and Road cooperation and the accelerated construction of free trade zones. All restrictions on foreign investment access in the manufacturing sector were fully lifted, and the new Catalogue of Encouraged Industries for Foreign Investment was released, continuously enhancing the substance of institutional opening up. From 2021 to 2025, China's total goods import and export volume grew at an average annual rate of over 7%, with the share of imports and exports with Belt and Road countries rising to 51.9%.

Fourth, new progress was achieved in the green transition. During the 14th Five-Year Plan period, China built the world's largest and fastest-growing renewable energy system, with the share of non-fossil energy consumption increasing from 16% in 2020 to over 20% in 2025. Energy consumption per unit of GDP continued to decline, making China one of the countries with the fastest decline in energy intensity globally. The world's largest and most complete new energy industrial chain was established, with the output of green products such as solar cells and wind turbines growing at an average annual rate of 39.6% and 31.3%, respectively. Forest coverage exceeded 25%, making China the global leader in afforestation by both area and growth rate.

Fifth, new improvements were made in people's livelihoods. During the 14th Five-Year Plan period, the number of newly added urban jobs held steady at over 12 million per year, and the overall employment situation remained stable. Nationwide per capita disposable income grew at an average annual real rate of 5.4%, in line with economic growth. The achievements in poverty alleviation were consolidated and expanded, and the per capita disposable income of rural residents in counties lifted out of poverty continued to grow rapidly. The world’s largest education, health care and social security systems continued to strengthen, and education availability at all levels reached or exceeded the average of middle- and high-income countries. In 2025, the working-age population (aged 16-59) had an average of 11.3 years of education. Social programs in culture, tourism and sports have flourished, further enriching people's spiritual and cultural lives. In 2024, the value added of cultural and related industries accounted for 4.61% of GDP, while tourism and related industries accounted for 4.35%.

Sixth, new progress was made in safeguarding security. During the 14th Five-Year Plan period, the country's comprehensive grain production capacity steadily improved. China's total grain output increased from 1.37 trillion jin in 2021 to 1.43 trillion jin in 2025, ensuring that the country's food security remained firmly in its own hands. China established a diversified energy supply system, with total primary energy production growing at an average of 5% annually. The resilience and security of industrial and supply chains steadily improved. Manufacturing value added grew at an average annual rate of 5.5%. The domestic production rate of equipment manufacturing continued to rise, and domestically produced electrical machinery and transportation equipment each accounted for more than 95% of the total supply.

"What seems ordinary is often the most extraordinary, and what appears easy is actually incredibly difficult." During the 14th Five-Year Plan period, China achieved significant development achievements. These achievements came amid a complex international situation, the growing pains of economic restructuring, industrial upgrading and transformation of growth drivers, as well as various risks and challenges. They were hard-won. These achievements are fundamentally attributable to the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, and to the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. During the 15th Five-Year Plan period, China's development environment will face profound and complex changes, but the fundamental trend of the country's long-term economic growth will remain unchanged. The advantages of its system, market, industrial system and human resources have become more prominent, innovation-driven momentum has strengthened, and reform and opening-up have advanced further. These will support China in achieving new results in high-quality development. As long as we maintain strategic resolve, actively recognize, adapt to and embrace changes, and focus on doing our own work well, we will surely continue to create a new chapter for Chinese modernization.

Thank you.

Shou Xiaoli:

The last question, please.

National Business Daily:

In 2025, China implemented a series of more proactive and effective macroeconomic policies, including support for major national strategies, security capacity building in key areas, and consumer goods trade-in programs. How effective were these macroeconomic policies? What role did they play in promoting steady and healthy economic development? Thank you.

Kang Yi:

Thank you for your questions. In 2025, all regions and departments accelerated the implementation of more proactive and effective macroeconomic policies, effectively implemented existing policies, and vigorously introduced new ones. They made every effort to stabilize employment, enterprise operations, markets and expectations. These efforts effectively ensured stable and positive economic performance and provided solid support for achieving the year's main economic and social development goals and tasks. The achievements were reflected in the following areas:

First, stable economic operations were promoted. In 2025, China strengthened and improved macroeconomic regulation, introduced measures to stabilize employment, stabilize the economy and promote high-quality development, and made coordinated use of ultra-long-term special treasury bonds, local government special bonds and central budget investment. It intensified efforts to expand large-scale equipment upgrades and consumer goods trade-in programs, increased support for major national strategies and security capacity building in key areas, and leveraged the role of new policy-based financial instruments, effectively offsetting the downward pressure on the economy and ensuring the smooth achievement of the annual targets. Retail sales of six categories of goods related to trade-in programs increased 4.1% year on year, 2 percentage points faster than the previous year, contributing 0.6 percentage point to total retail sales growth. Investment in equipment and tools rose 11.8%, contributing 1.8 percentage points to investment growth.

Second, structural optimization and upgrading were promoted. While promoting stable economic growth, macroeconomic policies placed greater emphasis on fostering high-quality development. In 2025, nine government departments rolled out a package of measures to augment service consumption to further boost service consumption and unleash its potential. In 2025, service retail sales increased 5.5% year on year. Since September, cumulative service retail sales growth has rebounded for four consecutive months. Trade-in programs for consumer goods have driven more high-quality durable consumer goods into people's lives, with high-efficiency home appliances and smart home products proving popular among consumers. In the digital product replacement market, mid-to-high-end models accounted for a large share. By the end of 2025, the number of private cars owned per 100 households in the country reached 52.9, an increase of 1.7 from the previous year. Large-scale equipment upgrade policies accelerated the pace of industrial upgrading and drove rapid output growth in related industries. In 2025, the value added of equipment manufacturing enterprises above designated size increased 9.2% year on year, 1.5 percentage points faster than the previous year, and its share of the total rose to 36.8%.

Third, new development momentum was cultivated. Technological innovation and industrial innovation became deeply integrated, with intensified efforts in the "AI Plus" initiative. The pace of industrial innovation and the application of its achievements has accelerated, and emerging and future industries have been cultivated and strengthened, injecting vital momentum into stable economic growth. In 2025, the value added of intelligent unmanned aerial vehicle manufacturing and intelligent vehicle-mounted equipment manufacturing enterprises above designated size increased 57% and 26.2%, respectively. Meanwhile, the value added of integrated circuit manufacturing and optoelectronic device manufacturing enterprises increased 26.7% and 18.8%, respectively. More and more Chinese companies made their presence felt in emerging fields such as large AI models, quantum technology and embodied intelligence.

Fourth, economic circulation improved. The continued advancement of a unified national market and the optimization of market competition provided favorable conditions for a reasonable recovery in prices and improved corporate profits. In December, core CPI rose 1.2% year on year, the year-on-year decline in the producer price index narrowed, and the manufacturing PMI rose to 50.1%. In the first 11 months, profits of manufacturing enterprises above designated size increased 5.0%, compared with a decline of 4.6% in the same period last year.

Thank you.

Shou Xiaoli:

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

Translated and edited by Chen Xinyan, Liu Jianing, Liao Jiaxin, Yang Chuanli, Wang Mengru, Yan Xiaoqing, Xu Kailin, Yang Xi, Fan Junmei, Wang Yiming, Li Huiru, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

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Speakers:

Mr. Zou Lan, spokesperson and deputy governor of the People's Bank of China (PBC)

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

Mr. Xie Guangqi, director general of the Monetary Policy Department of the PBC

Mr. Yan Xiandong, spokesperson of the PBC and director general of the Statistics and Analysis Department of the PBC

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

Chairperson:

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

Date:

Jan. 15, 2026

Zhou Jianshe:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Zou Lan, spokesperson and deputy governor of the People's Bank of China (PBC), and Mr. Li Bin, spokesperson and deputy administrator of the State Administration of Foreign Exchange (SAFE), to introduce the effects of monetary and financial policies on high-quality development of the real economy and to answer your questions. Also present at today's press conference are: Mr. Xie Guangqi, director general of the Monetary Policy Department of the PBC; Mr. Yan Xiandong, spokesperson of the PBC and director general of the Statistics and Analysis Department of the PBC; and Mr. Xiao Sheng, director general of the Capital Account Management Department of the SAFE.

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

Zou Lan:

Good afternoon, friends from the media. Thank you all for your continued interest in and support for the work of the PBC. We just released the 2025 financial statistics on the website of the PBC. Today's press conference will focus on two main points: First, we will interpret the 2025 data; and second, we will announce a batch of monetary and financial policies that were reviewed and introduced earlier this year.

In 2025, the PBC implemented a moderately loose monetary policy. Against the backdrop of an already relatively loose monetary and financial environment and with existing policies continuing to take effect, the central bank announced a package of financial support measures in May to consolidate the positive momentum of economic recovery. Looking at the financial data for the whole year, the effect of monetary and financial policies in supporting the real economy is evident.

First, the total financial volume maintained relatively rapid growth. The PBC maintained ample liquidity by comprehensively utilizing a variety of monetary policy tools, guiding financial institutions to fully satisfy the effective financing needs of the real economy. As of the end of December 2025, the outstanding stock of social financing increased by 8.3% year on year. The broad money supply (M2) rose by 8.5% year on year, significantly outpacing the growth rate of nominal GDP. The outstanding balance of RMB loans was 272 trillion yuan ($39.11 trillion), registering a year-on-year increase of 6.4%. Excluding the impact of local government debt resolution, the growth rate was around 7%, indicating that the intensity of credit support remained robust.

Second, the overall cost of social financing was further reduced. Since the second half of 2018, the PBC has lowered policy interest rates 10 times. It has also strengthened the implementation and supervision of interest rate policies to better leverage existing policies and promote a steady decline in the overall cost of social financing. In December 2025, the weighted average interest rates for newly issued corporate loans and for newly issued personal housing loans both stood at around 3.1%, down by 2.5 percentage points and 2.6 percentage points, respectively, since the second half of 2018.

Third, the financial structure continued to improve. Adhering to the principle of "focusing on key priorities, keeping a reasonable and moderate scale, and advancing in some areas while withdrawing from others," the PBC has continuously refined the design and management of policy tools, increased support for key sectors to expand domestic demand, such as technological innovation and consumption promotion, and achieved full coverage in five major areas: technology finance, green finance, inclusive finance, pension finance and digital finance. Loans to key sectors such as technology, green development, inclusive finance, elderly care and the digital economy all maintained double-digit growths, significantly outpacing the overall loan growth rate and indicating a continuous optimization of the credit structure. At the same time, we have continued to deepen the development of the financial market and promoted an increase in the proportion of direct financing. In 2025, the share of financing methods other than loans, such as bonds, in the increment of social financing exceeded 50%, with the supply-side structural reform of the financial sector yielding remarkable results.

Fourth, the financial market operated in a stable manner. Comprehensive measures have been taken to maintain the stability of the foreign exchange market, strengthen expectation management, and ensure a basic balance between supply and demand in the foreign exchange market. In 2025, the RMB remained basically stable against a basket of currencies and appreciated by 4.4% against the U.S. dollar. The bond market has maintained steady and sound development, with the yield on the representative 10-year treasury bond remaining stable recently at around 1.8%-1.9%. Confidence in the capital market has been effectively boosted, with trading activity remaining robust.

The Central Economic Work Conference clearly stated that a moderately loose monetary policy will continue to be implemented in 2026. In accordance with the decisions and arrangements of the Central Committee of the Communist Party of China (CPC) and the State Council, the PBC will strengthen counter-cyclical and cross-cyclical adjustments to effectively support the successful launch and steady progress of the 15th Five-Year Plan (2026-2030).

In light of the needs arising from the current economic and financial situation, the PBC will take the lead in introducing policy measures in two areas. On the one hand, interest rates for various structural monetary policy tools will be lowered to boost banks' willingness to extend credit to key sectors. On the other hand, we will refine structural tools and expand support to further facilitate the transformation and optimization of the economic structure. Specifically, this includes the following measures:

First, interest rates on various structural monetary policy instruments will be lowered by 0.25 percentage point. The one-year interest rate for all types of relending facilities will be lowered from the current 1.5% to 1.25%, with interest rates for other maturities adjusted accordingly.

Second, the relending for agriculture and small businesses will be integrated with rediscounting, the quota will be increased, and a dedicated relending facility program for private enterprises will be established. The quotas for relending and rediscounting for agriculture and small businesses will be merged, increasing the quota for relending for agriculture and small businesses by 500 billion yuan. A separate relending facility quota of 1 trillion yuan will be set aside within the total quota for private enterprises, with a focus on supporting small and medium-sized private enterprises.

Third, the quota for relending in support of scientific and technological innovation and technological upgrading will be increased and its scope expanded. The quota will be increased by 400 billion yuan to 1.2 trillion yuan from 800 billion yuan, and support will be extended to include private small and medium-sized enterprises with relatively high R&D investment intensity.

Fourth, a risk-sharing instrument for science and technology innovation and private enterprise bonds will be established. The previously launched bond financing support tool for private enterprises and the bond risk-sharing tool for technological innovation will be consolidated under unified management, providing a combined relending quota of 200 billion yuan.

Fifth, the scope of the carbon emission reduction support facility will be expanded. More projects with carbon reduction effects, such as energy efficiency retrofits, green upgrading, and the transition to green and low-carbon energy, will be included, guiding banks to support a comprehensive green transition.

Sixth, the areas of support for service consumption and elderly care relending facilities will be expanded. In accordance with the standards for recognizing the health industry, the health industry should be included in the support areas of service consumption and elderly care relending facilities at an appropriate time.

Seventh, together with the State Financial Regulatory Commission (SFRC), the minimum down payment ratio for commercial property purchase loans will be lowered to 30% to promote the reduction of inventory in the commercial real estate market.

Eighth, financial institutions will be encouraged to enhance their foreign exchange risk-hedging services. A wider range of hedging products will be offered to provide enterprises with cost-effective, flexible and efficient tools for managing exchange rate risks.

The policy documents related to the above measures will be released soon. In accordance with the arrangements of the State Council executive meeting, implementation will be coordinated with fiscal policies such as interest subsidies, guarantees and risk cost-sharing mechanisms, in order to further amplify policy effects and jointly promote effective domestic demand. We will also continue to increase liquidity injection, flexibly combine various open market operation tools, maintain ample liquidity, and guide the overnight interest rate to operate around the policy interest rate. That's all for my introduction. Next, my colleagues and I are ready to take your questions.

Zhou Jianshe:

Thank you, Mr. Zou, for your introduction. Now, let's welcome Mr. Li to speak.

Li Bin:

At the beginning of the new year, I am very pleased to meet with friends from the media. Thank you for your interest in and support for foreign exchange administration. Just now, Mr. Zou gave a comprehensive overview of how monetary and financial policies are supporting high-quality economic development. Next, I will give a brief introduction to the relevant situation in the foreign exchange sector.

The year 2025, which just concluded, was very extraordinary. Facing a more severe and complex external environment, SAFE earnestly implemented the decisions and arrangements of the CPC Central Committee, coordinated domestic and international matters, balanced development and security, and mainly carried out work in three aspects. First, we took strong and effective measures to maintain the stable operation of the foreign exchange market. Second, we steadfastly advanced high-standard opening up in the foreign exchange field, focusing on better achieving the integration of promoting convenience and preventing risks through mechanism reform and technological empowerment, and better benefiting enterprises and the public. Third, we focused on enhancing our regulatory capabilities in an open environment, continuously cracking down on illegal and irregular foreign exchange activities, and maintaining a sound market order and healthy development.

Over the past year, the quality and efficiency of foreign exchange administration services to the real economy have significantly improved. We have successively introduced three package policies with a total of 28 measures, focusing on three key tasks: supporting the stable development of foreign trade, deepening cross-border investment and financing reforms, and supporting the construction of free trade zones. Since these policies began to be implemented in the fourth quarter of last year, the total value of facilitation services handled nationwide has exceeded $220 billion. We support entities engaged in new trade formats such as cross-border e-commerce to handle foreign exchange business online. In total, more than 1 billion transactions were processed, serving over 1.8 million small, medium, and micro businesses. We steadily advanced the reform of banks' foreign exchange business operations, better balancing efficiency and controlling risks. The number of banks participating in the reform has increased from 16 at the end of 2024 to 30 at present, which has basically covered the main banks handling cross-border business. Including business conducted under the operational reform framework, in 2025 a total of $2.3 trillion in cross-border receipts and payments were processed based on corporate instructions under the streamlined cross-border payments, representing a 33% increase from 2024. We extended the integrated RMB and foreign currency cash pooling policy for multinational corporations nationwide, improved the management of funds related to overseas listings by domestic enterprises, and supported enterprises in making better use of both domestic and international markets. We continued to strengthen the development and regulation of the foreign exchange market. In 2025, the trading volume in the foreign exchange market reached $42.6 trillion, and the corporate foreign exchange hedging ratio rose to 30%, both setting record highs. Throughout the year, more than 1,100 cases involving foreign exchange violations - such as underground banking and illicit cross-border capital transfers through fictitious transactions - were investigated and penalized, effectively safeguarding order in the foreign exchange market.

Over the past year, the supply and demand in the foreign exchange market were essentially balanced, expectations remained generally stable, and strong resilience and vitality were maintained. In 2025, the total cross-border income and expenditure of enterprises and individuals reached $15.6 trillion, an increase of nearly 10% compared with 2024. Cross-border funds shifted from a net outflow at the beginning of the year to a net inflow, with a total net inflow of $302.1 billion for the year, with a bank foreign exchange settlement and sales surplus of $196.6 billion. In December, the net inflow of cross-border funds and the bank foreign exchange settlement and sales surplus expanded, which was related to seasonal factors. From what we saw this January, it has already narrowed. In 2025, direct investment into China showed a net inflow, and domestic entities' outbound investment grew rapidly. At the end of September 2025, China's external assets and liabilities reached $11.5 trillion and $7.5 trillion respectively, both hitting record highs. Foreign exchange reserves remained stable, with a year-end balance of $3.3579 trillion. The yuan exchange rate has been generally stable at an adaptive and balanced level.

Next, the SAFE will thoroughly study and implement the guiding principles of the fourth plenary session of the 20th CPC Central Committee and the central economic work conference, deepen and expand reform and opening up in the foreign exchange sector, strive to create a foreign exchange policy environment that is both flexible and well-regulated, and contribute to a good start to the 15th Five-Year Plan period. That's all for my introduction. Thank you.

Zhou Jianshe:

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

National Business Daily:

In October 2025, the PBC announced that it would resume open-market treasury bond trading operations. Will there be an increase in treasury bond trading in 2026? Under what circumstances will the scale of such operations be increased? Thank you.

Zou Lan:

Thank you for your questions. Let me answer these questions. The central financial work conference called for enriching the monetary policy toolbox and gradually increasing treasury bond trading in the central bank's open-market operations. Open-market operations are an important means for the central bank to implement monetary policy regulation and liquidity management, including repos of various maturities, medium-term lending facilities, treasury bond trading, and other tools. Among these, outright repos are mainly carried out through buying and selling treasury bonds. To ensure ample market liquidity and stable short-term interest rates, in 2025, various open-market operations cumulatively injected a net 6 trillion yuan, including a net injection of 3.8 trillion yuan made through outright repos as well as a net purchase in treasury bonds of 120 billion yuan. At the same time, the PBC is also advancing reform measures. With the continuous enrichment of the monetary policy toolbox, it can better use various tools according to needs and market conditions, improve the mechanism for base money injection and pricing of operation tools, and strengthen information disclosure of monetary policy operations to enhance policy transparency.

Treasury bond trading operations also helps strengthen the coordination between monetary policy and fiscal policy. In recent years, China has implemented a proactive fiscal policy, with an increase in government bond issuance. In 2025, 16 trillion yuan of treasury bonds were issued, with a net increase of 6.6 trillion yuan for the year, and a year-end balance of about 40 trillion yuan. Of this, banks, non-bank financial institutions, and overseas institutions held 27 trillion yuan, 5 trillion yuan, and 2 trillion yuan respectively. Banks and other institutions in the market are the main holders of treasury bonds in order to improve asset allocation and strengthen liquidity management. On the premise of meeting the needs of these institutions for the allocation of treasury bond assets, the PBC can better ensure the smooth issuance of treasury bonds at a reasonable cost through buying and selling these bonds. In addition, in 2025, the balance of treasury bonds and local government bonds purchased by the PBC through outright repo operations was close to 7 trillion yuan, which has also played an important role in improving the market liquidity of government bonds.

Buying and selling of treasury bonds is also conducive to giving full play to the role of the treasury bond yield curve as a pricing benchmark, enriching macro-prudential management tools, and preventing the risk of sharp market fluctuations. At the beginning of 2025, the supply shortage in the bond market was relatively prominent and market risks had amounted to some extent, so we suspended bond purchases to avoid competing with the market for bonds; in the second half of the year, as market supply and demand reached balance, we resumed operations in the fourth quarter to ensure the smooth operation of the bond market.

Next, the PBC will consider factors such as the need for base money injection, the supply and demand in the bond market, and changes in the yield curve. It will also carry out treasury bond buying and selling operations, together with other liquidity tools, to maintain ample liquidity and create a conducive monetary and financial environment for the smooth issuance of government bonds. Thank you.

Cover News:

Supporting enterprises in managing exchange rate risks has been a key task of the SAFE in recent years. May I ask about the current situation of enterprises' exchange rate risk management? What policy approaches are there for further helping enterprises manage exchange rate risks? Thank you.

Li Bin:

Thank you for your questions. I'll take these. In recent years, with increased volatility in the international financial market, enterprises' demand for proactively identifying and managing exchange rate risks in cross-border trade and investment has risen. The SAFE has continuously improved its services for enterprises' exchange rate risk management, and has made efforts in the following aspects. First, it has promoted the risk neutral concept regarding exchange rates through various means. We have compiled and issued the guidelines for corporate exchange rate risk management and the case collection on exchange rate risk scenarios and foreign exchange derivatives, and opened a special column on corporate exchange rate risk management services on the SAFE website, actively promoting good experiences and practices in exchange rate risk management. Second, we have promoted the establishment and improvement of a long-term mechanism for exchange rate risk management services by financial institutions. Currently, more than 120 banks of various types have launched foreign exchange derivatives businesses, the online trading mechanism is constantly being improved, and the business development capabilities at the grassroots level have been continuously strengthened. Third, we have improved the service capabilities of foreign exchange market infrastructure, reduced the transaction and settlement costs of foreign exchange derivatives for micro, small and medium-sized enterprises, expanded the transaction and settlement periods of foreign exchange derivatives, and guided financial institutions to continuously optimize exchange rate hedging products and provide more convenient services.

We have observed that an increasing number of enterprises are incorporating exchange rate fluctuations into their day-to-day financial decision-making and managing exchange rate risks through various means, including foreign exchange derivatives, local-currency settlement, and operational natural hedging. Enterprises' awareness of and capacity for exchange rate risk management continue to improve. Looking at the data over the past five years, in 2025, the volume of foreign exchange derivatives used by companies to manage exchange rate risk exceeded $1.9 trillion, nearly doubling from 2020. As I mentioned earlier, the corporate foreign exchange hedging ratio stood at 30%, up 8 percentage points from 2020.

Going forward, we will work with relevant parties to further enhance exchange rate risk hedging services for enterprises, enabling them to better focus on their core business and guard against risks. First, we will continue to strengthen the promotion of the concept of exchange rate risk neutrality, so that enterprises with hedging needs are more willing to conduct hedging operations. Second, foreign exchange authorities, the foreign exchange market self-regulatory mechanism, and banks will continue to publish case studies. This gives enterprises useful references in identifying exchange rate risk exposures and formulating hedging strategies, helping them hedge more effectively. Third, we will guide financial institutions to establish and improve long-term mechanisms for providing exchange rate risk hedging services to enterprises. This includes expanding the range of hedging products to cover more currencies, developing simple and user-friendly exchange rate hedging instruments, and improving foreign exchange risk management services. These efforts will enhance enterprises' capacity to hedge. Just now, Mr. Zou also announced a number of measures to further support enterprise exchange rate hedging. Fourth, we will support compliant and trustworthy enterprises in conducting foreign exchange derivatives transactions more conveniently. We will streamline business procedures and enable enterprises to hedge more effectively. That is all for my response. Thank you.

Reuters:

What new measures will the central bank take next to support consumption, especially service consumption? In addition, I would also like to ask about monetary policy. What considerations will guide the next steps, and how much room remains for further interest rate cuts and reserve requirement ratio reductions? Thank you.

Zou Lan:

Thank you for your questions. You have, in fact, raised two issues. I will first address the question about monetary policy.

As I mentioned earlier, in 2026, the PBC will implement the decisions and arrangements of the Central Economic Work Conference and continue to pursue an appropriately accommodative monetary policy. We will leverage the combined effects of existing and new policy measures and step up counter- and cross-cyclical adjustments, creating an appropriate monetary and financial environment for stable economic growth and high-quality development. Specifically:

First, in light of domestic and international economic and financial conditions as well as developments in financial markets, we will take promoting stable economic growth and a reasonable rebound in prices as key considerations of monetary policy. We will flexibly and efficiently employ a range of policy tools, including reductions in the reserve requirement ratio and interest rate cuts, to maintain ample liquidity and relatively accommodative financing conditions. We will guide the reasonable growth of financial aggregates and the balanced extension of credit, ensuring that aggregate financing and money supply stay in step with the projected economic growth and CPI increase.

Second, we will fully leverage the role of monetary policies in adjusting both the monetary aggregate and structure, and accelerate the implementation of recently introduced structural monetary policy tools. We will guide financial institutions to step up support for key areas such as expanding domestic demand, sci-tech innovation, and micro, small- and medium-sized enterprises. We will encourage them to make solid progress in the five key areas of financial work. At the same time, we will strengthen coordination with fiscal policy to amplify policy incentives and effectiveness.

Third, we will better leverage the guiding role of policy interest rates and strengthen implementation and oversight of interest rate policies. We will give full play to the self-regulatory mechanism for market interest rate pricing, enhance banks' capacity for rational pricing, maintain an orderly competitive environment, and promote the overall financing costs to remain at a low level. At the same time, we will maintain exchange rate flexibility, keep the RMB exchange rate basically stable at a reasonable and balanced level, and guard against the risk of excessive exchange rate fluctuations.

Fourth, we will strengthen expectations management and continue to improve credible, regularized and institutionalized policy communication mechanisms. We will diversify channels for policy interpretation and information disclosure, and steadily enhance the transparency of monetary policy.

Regarding your question on further reductions in the reserve requirement ratio and interest rates, there remains some room this year. From the perspective of the statutory reserve requirement ratio, the current average ratio for financial institutions stands at 6.3%, indicating that there is still room for further reductions. From the perspective of policy interest rates, on the external front, the RMB exchange rate is relatively stable, and the U.S. dollar is on an interest rate easing path, meaning that exchange rate considerations do not pose a strong constraint overall. On the domestic front, banks' net interest margins have shown signs of stabilization since 2025, remaining at 1.42% for two consecutive quarters. In 2026, a relatively large volume of long-term deposits, including three-year and five-year deposits, will mature and be repriced. In addition, the PBC has lowered various relending rates. All these factors will help reduce banks' interest expenses, stabilize net interest margins, and create some room for interest rate cuts.

We will also continue to take comprehensive measures to keep the overall financing costs at a low level. For example, we will clearly disclose the overall financing costs of loans, organizing banks and enterprises to fill in a detailed form of expenses in interest and non-interest costs for enterprises to obtain loans. By doing so, we will lower appraisal and guarantee fees and other financing fees, reducing enterprise expenses and optimizing the financing environment. We will also strengthen the implementation and supervision of interest rate policies, leverage the interest rate self-regulatory mechanism, and improve the interest rate policy transmission. All of these help keep the overall financing costs at a low level.

As for your question about consumption, I'd like to invite Mr. Xie to answer it.

Xie Guangqi:

I'll answer the reporter's question about boosting consumption. In recent years, the PBC has implemented systematic measures to support for enhancing consumption capacity, increasing financial supply, and unleashing consumption potential, thereby meeting the diverse financing needs in the consumption sector. These measures include establishing a 500-billion-yuan relending facility for service consumption and elderly care, guiding financial institutions to innovate consumer financial products, and continuously facilitating payment services. Regarding service consumption and elderly care relending, as of the end of 2025, the PBC had received two batches of applications from financial institutions and provided relending funds of 118.4 billion yuan. In terms of bank loans, as of the end of November 2025, the outstanding balance of consumer loans (excluding individual housing loans) had reached 21.2 trillion yuan.

In the next stage, the PBC will continue to implement an appropriately accommodative monetary policy to create a favorable monetary and financial environment for boosting consumption and expanding domestic demand. On this basis, the central bank will further leverage the guiding role of structural monetary and credit policies and continuously improve the suitability and effectiveness of financial support for consumption.

First, we will enhance the efficacy of financial support for key areas of service consumption. As Mr. Zou mentioned in his opening remarks, the PBC will further expand the scope of support for service consumption and elderly care relending. After the criteria for accrediting the health care services are clearly defined by competent authorities, they will be included in the support scope for service consumption and elderly care relending in due course. By offering appropriately preferential interest rates for relending, financial institutions can be incentivized and guided to increase credit supply in the consumer sector in accordance with market-oriented and law-based principles. We will continue to guide financial institutions to innovate products and services in conjunction with consumption scenarios, with a focus on supporting industries that are highly relevant to people's livelihoods, such as accommodation and catering, culture, tourism, sports and entertainment, elderly care and child care, and housekeeping services.

Second, we will help increase people's spending power and support genuine financing needs for consumption. We will continue to implement the guarantee loan policy for business startups to support employment and entrepreneurship for key groups and to help eligible micro and small enterprises create jobs. We will support the healthy and stable development of China's capital market and expand investment channels for residents. We will regulate the development of consumer finance to meet people's diverse and personalized consumption needs. We will also strengthen the coordination of financial and fiscal policies to implement consumer loan interest subsidy programs and other policies, reducing financing costs in the consumer sector.

Third, we will optimize basic consumer finance services. We will continue to improve the diversified payment service system, enhance the payment experience in key consumption scenarios, effectively implement the one-time credit repair policy, and improve the consumer financial environment.

That's all for my answer. Thank you.

21st Century Business Herald:

Mr. Li just mentioned that the foreign exchange market maintained strong resilience and vitality in 2025. How do you expect the foreign exchange market to perform in 2026? Thank you.

Li Bin:

Thank you for your interest in the foreign exchange market. I will answer this question. China is a large open economy. Its foreign exchange market is usually affected by multiple internal and external factors. Taking this into account, China's foreign exchange market is expected to perform steadily in 2026, with cross-border capital flow remaining stable and orderly. The resilience of the foreign exchange market is increasingly robust. Let me give you some details.

First, China continues to improve the quality and efficiency of economic development, laying a more solid economic foundation. In recent years, China's economic output has crossed thresholds one after another. Meanwhile, new quality productive forces have continued to grow. In the first 11 months of 2025, the value added of high-tech enterprises above the designated size increased by 9.2% year on year, becoming an important new driver of economic growth. During the 15th Five-Year Plan period, China will move faster to foster a new pattern of development, promote full integration between technological and industrial innovation, vigorously boost consumption and expand effective investment, thereby maintaining steady and sound economic performance.

Second, China will expand high-standard opening up, with cross-border trade and two-way investment constantly expanding. In recent years, China's foreign-related economic output has continued to increase. In 2025, the total value of imported and exported goods exceeded $6.3 trillion. China has become the main trading partner of more than 150 countries and regions. At the end of September 2025, China's outward direct investment and the foreign direct investment stock in China reached $3.4 trillion and $3.7 trillion respectively, both ranking among the top in the world. In the future, China will continue to take the initiative to open wider, promote balanced development of imports and exports, create new advantages in attracting foreign investment, and effectively manage foreign investment. By doing so, China's foreign-related economy will continue to grow with a larger scale and a more balanced structure. Its cross-border capital flow will remain both stable and orderly.

Third, China continues to deepen the development of its foreign exchange market, with greater confidence in withstanding external risks. China's foreign exchange trading volume continues to reach record highs. Market participants now include major domestic financial institutions as well as overseas institutions. The diversity of trading entities and the expansion of market depth enable effective absorption of impacts from changes in the external environment. At the same time, the foreign exchange risk exposure of domestic entities has also been decreasing. In 2025, the corporate hedging ratio increased by 3 percentage points compared with the previous year, and the proportion of goods trade settled in yuan rose to nearly 30%. Enterprises, banks and other entities are now better equipped to respond to market changes. In addition, the market-based yuan exchange rate regime has continuously improved in recent years, playing a stabilizing role in balancing supply and demand. The macro-prudential toolkit for managing cross-border capital flows remains well-equipped, and experience in addressing external shocks continues to accumulate.

From an external perspective, the global economy is expected to grow moderately this year, and major developed economies may continue cutting interest rates, which should support the stable operation of China's foreign exchange market. Of course, many uncertainties and unpredictable factors remain in international financial markets and geopolitics. We will continue to strengthen monitoring of cross-border capital flows and enhance the resilience of the foreign exchange market. We will also improve macro-prudential and expectation management to maintain the sound operation of the foreign exchange market and keep the yuan exchange rate basically stable at a reasonable and balanced level. That is all from me. Thank you.

Market News International:

Firstly, China's CPI has remained below the target level, with current price levels still low. How does the PBC view the outlook for prices this year, and what measures will be taken to promote a moderate recovery in prices? And the second question is: how does the PBC view the outlook and possible performance of the yuan-U.S. dollar exchange rate this year? And what are the potential sources of volatility or disruption? Thank you.

Zou Lan:

Thank you. You asked two questions, and I'll answer them separately.

Regarding prices, China's price levels have shown positive changes recently. In December 2025, the CPI rose 0.8% year on year, reaching its highest level since March 2023. Core CPI, excluding food and energy, rose 1.2% year on year, remaining above 1% for four consecutive months. The PPI year-on-year decline also narrowed by 1.7 percentage points from its low point in July, and rose for three consecutive months on a month-on-month basis.

The structural breakdown of prices is also informative. Among the eight major categories of CPI indicators, food and transportation saw the largest declines. Since 2023, pork prices have fallen 30% cumulatively, while transportation prices have dropped 11.7%, mainly due to cyclical factors and supply-demand dynamics. At the same time, prices for education, culture and entertainment rose 3.6%, with tourism alone up 14.4%. This indicates that Chinese residents' consumption patterns are continuously being optimized and upgraded, and there remains considerable room for improvement in supply in these areas.

The synergistic effect of China's macroeconomic policies continues to strengthen. The unified national market is being advanced in depth, new growth drivers are developing and expanding, and targeted actions to boost consumption are being implemented. These efforts will continue to promote better alignment between supply and demand, facilitate the circulation of the real economy, further boost market confidence, and have a positive impact on prices.

The PBC has been closely monitoring price trends. In recent years, a supportive monetary policy stance has been maintained, ensuring ample liquidity. Growth in the overall financial sector has been significantly higher than nominal GDP growth over the same period, persisting for a relatively long time and resulting in a large cumulative increase. Moving forward, the PBC will earnestly implement the guiding principles of the Central Economic Work Conference, with promoting stable economic growth and a reasonable rebound in prices as important considerations of monetary policy. It will continue to implement a moderately loose monetary policy, leverage the combined effects of new and existing policies, and create a favorable monetary and financial environment to promote a reasonable recovery in prices.

Regarding exchange rates, China's exchange rate policy is clear and consistent: the market plays a decisive role in exchange rate formation, and the yuan exchange rate is kept basically stable at a reasonable and balanced level. China is a responsible major country and has neither the need nor the intention to gain a competitive advantage in international trade through currency devaluation.

Globally, developed economies have sharply raised interest rates in recent years before rapidly cutting them again. International trade barriers and frictions have also increased, leading to significantly greater volatility in global financial markets. The yuan exchange rate faced depreciation pressure, and the PBC and the SAFE strengthened expectation management to prevent the risk of exchange rate overshooting. Since 2020, the U.S. dollar index has risen about 1.9%, while over the same period, the CFETS yuan index, which measures the yuan exchange rate against a basket of currencies, has risen 7.2%. Overall, the yuan exchange rate has been stable.

The factors affecting exchange rates are diverse, including economic growth, monetary policy, financial markets, geopolitics and unforeseen shocks. At the end of 2025, driven by market forces, the yuan rose above 7 to the dollar. This was mainly because, since May 2025, China-U.S. economic and trade tensions have eased, the dollar has weakened, and the yuan has appreciated against the dollar. Looking ahead, China has a mega-sized market and a complete industrial chain. Technological innovation and industrial innovation are increasingly integrated, new growth drivers are thriving, domestic demand potential is continuously being released, the domestic-international dual circulation is becoming smoother. These improving long-term macroeconomic fundamentals support the basic stability of the yuan exchange rate.

It should also be noted that the external situation remains complex and challenging. The magnitude and pace of interest rate adjustments in major economies remain uncertain, and geopolitical shocks may persist, leading to volatility in exchange rates. The RMB exchange rate is expected to continue fluctuating in both directions while remaining flexible. Against this backdrop, the PBC has continued to improve policy arrangements for cross-border RMB use and supported financial institutions in enriching exchange rate risk hedging products. We have enhanced the capacity of foreign trade enterprises to manage exchange rate fluctuations and strengthened the resilience of the foreign exchange market. Foreign trade enterprises using RMB for cross-border trade settlement are largely unaffected by exchange rate fluctuations. This proportion currently stands at about 30%. For those settling in foreign currencies, the foreign exchange hedging ratio has also risen to around 30%. Enterprises can lock in exchange costs in advance, avoiding the impact of exchange rate fluctuations on production and operations. Overall, approximately 60% of import and export trade is relatively unaffected by exchange rate fluctuations. Moreover, as high-level institutional opening-up continues to deepen and financial services continue to improve, this proportion is expected to keep rising.

Regarding the resilience of the foreign exchange market and the availability of financial hedging tools, Mr. Li has already provided a detailed introduction in his earlier response, so I will not repeat it here. Regarding exchange rate policy, the PBC will continue to uphold the market's decisive role in exchange rate formation and maintain the flexibility of the RMB exchange rate. We will leverage the exchange rate's role as an automatic stabilizer for macroeconomic and balance of payments adjustment. We will strengthen expectation guidance, prevent the risk of exchange rate overshooting, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Thank you for your questions.

CCTV:

My question is about the PBC policies Mr. Zou just introduced for supporting private enterprises. What are the primary considerations behind these policies? How will these policies be implemented moving forward? Thank you.

Zou Lan:

Thank you. We'll have Mr. Xie answer your questions.

Xie Guangqi:

Thank you for your questions. Let me address them. Supporting the development of the private sector is a consistent policy of the CPC Central Committee. The recommendations for the 15th Five-Year Plan also call for developing and expanding the private sector. The private sector is an important driver of innovation, employment and improved livelihoods. We must remain committed to consolidating and developing the public sector while unswervingly encouraging, supporting and guiding the development of the non-public sector. We will fully implement the CPC Central Committee's policies for promoting the development of the private sector.

In recent years, the PBC has continuously strengthened financial support for private enterprises. The financing scale of private enterprises has steadily expanded, with a notable increase in financing efficiency and a steady decrease in financing costs. First, we have actively created a favorable policy environment. We have worked to implement the 25 measures for financial support to the private sector and to lower re-lending rates for agriculture and small business support while increasing the quota. Second, we have continuously improved the capability to provide financial services to private enterprises. We have guided financial institutions in implementing differentiated loan arrangements for small- and micro-sized private enterprises, including in areas such as internal fund transfer pricing, due diligence accountability exemptions and performance evaluation. Third, we have enhanced the financing experience for private enterprises through multiple channels. We have established a fast track for the registration and issuance of debt financing instruments by private enterprises and have supported private enterprises in conducting supply chain financing.

It should also be noted that large private enterprises currently have relatively strong financing capabilities, and there are also relatively abundant financing support policies for small- and micro-sized private enterprises. In comparison, medium-sized private enterprises face weaker access to financing. To this end, the PBC has decided to set up a 1 trillion yuan re-lending facility for private enterprises to further increase financial support for private micro-, small- and medium-sized enterprises. Given that the re-lending policy for the agriculture sector and small businesses already covers private enterprises and has played a positive incentive role, the new re-lending facility for private enterprises will be established under the re-lending facility for the agriculture sector and small businesses. While continuing to support small- and micro-sized private enterprises, the private enterprise re-lending facility will extend its coverage to include medium-sized private enterprises, encouraging and guiding locally incorporated financial institutions to issue loans to small- and micro-sized private enterprises. We have allocated 500 billion yuan from existing re-lending quotas for the agriculture sector and small businesses, plus an additional 500 billion yuan in new quotas. Together, these amount to 1 trillion yuan for the private enterprise re-lending facility. The interest rate, term and other aspects of the private enterprise re-lending facility are consistent with those of the re-lending facility for the agriculture sector and small businesses, while its quota will be managed separately.

Moving forward, the PBC will continue to leverage the incentive and guidance role of monetary and credit policies to constantly enhance financial service capacity and effectiveness for private enterprises. We will accelerate the implementation of measures such as the private enterprise re-lending facility to support private enterprise financing. We will urge financial institutions to further optimize internal policy arrangements and establish long-term mechanisms that encourage them to dare to lend, be willing to lend, be able to lend, and be skilled in lending. We will also improve the credit enhancement system for small- and medium-sized private enterprises. At the same time, we will strengthen policy coordination with fiscal, industrial and other related departments to jointly create a more favorable development environment for private enterprises.

That's all from me. Thank you.

Dazhong Daily:

The recommendations for the 15th Five-Year Plan have made important arrangements for financial and foreign exchange work over the next five years. This year marks the beginning of the 15th Five-Year Plan period. May I ask what the key areas of advancement in foreign exchange management work are? Thank you.

Li Bin:

Thank you for your question. I'll answer that. The CPC Central Committee's recommendations for the 15th Five-Year Plan have made important arrangements for advancing financial and foreign exchange work over the next five years. The year 2026 marks the beginning of the 15th Five-Year Plan period. The SAFE will better balance both development and security, while continuing to build a foreign exchange management system that is more convenient, open, secure and smart. Specifically, this can be summarized as focusing on three key areas of work and continuously improving two types of capabilities.

First, we will uphold the fundamental purpose of financial services supporting the real economy, continue to deepen foreign exchange facilitation reforms, and enhance the vitality and momentum of high-quality development. We will continue to optimize foreign exchange management for trade and expand pilot programs for high-level opening-up in cross-border trade and investment in an orderly manner. We will strengthen support for new forms of trade, such as cross-border e-commerce and market procurement trade, and support payment institutions and banks in automatically processing electronic transaction information in batches to facilitate related fund settlements. With a focus on supporting technological innovation and green development, we will continue to advance the five major areas of finance. We will advance the development of cross-border financial service platforms, expand new application scenarios, and provide enterprises with more intelligent, efficient, safe and convenient foreign exchange services. We will enhance foreign exchange services for individuals and further improve the convenience of foreign exchange use for foreign nationals coming to China and internationally-engaged employees of enterprises.

Second, we will continue to promote high-standard opening up, steadily expand opening up in the foreign exchange sector, and promote win-win cooperation. We will coordinate efforts to promote the internationalization of the RMB and the high-quality opening up of the capital account, and deepen forex management reforms in areas such as foreign direct investment, securities investment, and cross-border financing. Next, we will introduce policies on overseas lending and the management of domestic foreign exchange loan funds to better support enterprises in "going global" and the development of foreign trade. We will implement the policy of centralized cross-border operation and management of domestic and foreign currency funds for multinational companies nationwide, further improving capital turnover efficiency and reducing corporate financial costs. We will support the development of Shanghai and Hong Kong as international financial centers, and upgrade forex management policies for high-level opening platforms such as pilot free trade zones and the Hainan Free Trade Port. At the same time, we will continuously enhance the foreign exchange business capabilities of financial institutions, continue to deepen the reform of banks' foreign exchange business, steadily expand the coverage of reforms, ensure integration with facilitation policies under the current account and capital account and better integration of policies to provide more convenience for enterprises and banks. We will continue to improve the operation and management of foreign exchange reserves, and make every effort to ensure the safety, liquidity, and value preservation and appreciation of foreign exchange reserve assets.

Third, we will adhere to the principles of both "dynamic deregulation" and "effective regulation" to promote the development of the foreign exchange market, enhance open regulatory capabilities, and ensure sound operation of the foreign exchange market. We need to further improve exchange rate risk management, guide financial institutions to develop simple and easy-to-use exchange rate hedging products, reduce exchange rate hedging costs for micro, small, and medium enterprises, and continuously improve the services of foreign exchange market infrastructure. We will strengthen balanced macroeconomic governance and expectations when necessary, based on new development, support the financial safety net for the foreign exchange market, and effectively ensure sound operation of the foreign exchange market. At the same time, we will further improve foreign exchange regulation, deepen the development of off-site regulating capabilities, strengthen the analysis of abnormal channels and clues, and continuously crack down on illegal cross-border financial activities.

While carrying out the above work, we will continuously enhance two aspects of our capabilities. First, we will focus on ensuring the mechanism for transmission and implementation of foreign exchange policies, place greater emphasis on improving policy implementation, enhance dynamic evaluation of "foreign exchange policy performance" and "regional foreign exchange ecology," and strive to achieve a closed cycle of management from policy formulation to the "last mile" of policy delivery. This will make them accessible and tangible for enterprises and residents and truly benefit businesses and the public. Second, we will strengthen technological empowerment, steadily explore the development of "smart foreign exchange administration," continuously improve the digitalization and intelligence of forex administration and services, and enhance the effectiveness, as well as the experience and friendliness of foreign exchange services. That's all for your question. Thank you.

Financial Times:

Over the past year, the structure of monetary credit has been continuously optimized around the key areas of the five financial sectors. What are the characteristics of the total credit volume and structure in 2025? What is the financing situation in the areas of the five financial sectors? What are the expectations for credit growth in 2026? Thank you.

Zou Lan:

Thank you. I would like to invite Mr. Yan Xiandong to answer these questions.

Yan Xiandong:

Thank you for your questions. Since 2025, the PBC has implemented a moderately loose monetary policy, strengthened counter-cyclical adjustments, employed a mix of monetary policy tools, and supported the high-quality development of the real economy. In terms of results, monetary and credit performance in 2025 was characterized by "aggregate growth and structural optimization."

And the credit aggregate maintained steady growth. At the end of 2025, the outstanding balance of RMB loans from financial institutions was 271.91 trillion yuan, a year-on-year increase of 6.4%; if the impact of local government special bond swaps on loans is taken into account, the growth rate would be around 7%. New RMB loans totaled 16.27 trillion yuan for the year, indicating that the financial system maintained a high level of credit support for the real economy. Structurally, we can observe the following characteristics.

In terms of borrowers, loans to enterprises and public institutions constitutes the main driver of credit growth. In 2025, loans to enterprises and institutions increased by 15.47 trillion yuan, of which medium- and long-term loans increased by 8.82 trillion yuan, forming the principal component of the increase in loans to enterprises and institutions. This demonstrates that the financial system continues to provide stable funding sources for the real economy. Household loans increased by 441.7 billion yuan, and business loans increased by 938 billion yuan, reflecting the continued efforts of financial institutions to strengthen support for the production and operational activities of self-employed individuals and owners of small and micro enterprises.

In terms of sectors, the loan industry structure continues to be optimized. By the end of 2025, the outstanding balance of medium- and long-term loans to the manufacturing sector increased by 6.6% year-on-year, that to the infrastructure sector increased by 6.9% year-on-year, and the outstanding balance of medium- and long-term loans to the service sector (excluding real estate) increased by 9.4% year-on-year.

In the five major areas of finance, the "1+5" policy framework has been refined, incentives and constraints have been strengthened, and the system of structural monetary policy tools has been optimized, achieving full coverage across all areas of the five key areas of finance.

First, the total amount has grown rapidly. At the end of November 2025, the loan balance for the five major areas of the finance was 107.7 trillion yuan, an increase of 12.8% year-on-year. There is overlap among the subcategories of the five major areas of finance, for instance, an overlap of 16.5 trillion yuan between technology loans and green loans, and an overlap of 7.5 trillion yuan between technology loans and digital economy industry loans. The loan balance of the five major areas of the finance I am reporting here is an aggregated balance that excludes overlaps among subcategories, thereby accurately reflecting the effectiveness of the work on the five major areas of the finance. Among them, the technology loan balance, which is a focus of public attention, stood at 44.8 trillion yuan, an increase of 11.5% year-on-year. The green loan balance amounted to 44.2 trillion yuan, an increase of 23% year-on-year. The inclusive loan balance reached 39.8 trillion yuan, an increase of 10.3% year-on-year. The elderly care industry loan balance totaled 216.2 billion yuan, and the digital economy industry loan balance was 8.5 trillion yuan, with year-on-year growth rates of 60.2% and 14.6% respectively, both exceeding the growth rate of all loans.

Second, financing costs have declined noticeably. In November 2025, the interest rate for newly issued loans under the five major areas of the finance was 0.42 percentage point lower than the same period last year, among which the interest rate for newly issued technology loans was 2.81%, 0.32 percentage point lower than the same period last year, and the interest rate for newly issued digital economy industry loans was 2.7%, 0.51 percentage point lower than the same period last year.

Third, financing availability has further increased. By the end of November 2025, a total of 82.55 million enterprises and individuals had been served, an increase of 5.47 million from the same period last year.

In addition, bond and bill financing in the five major areas of finance has grown steadily. This is calculated quarterly. By the end of the third quarter of 2025, the balance of bonds under the five major areas was 6.7 trillion yuan, up 20.4% from the end of the previous year. The balance of bills under the five major areas, including acceptance bills and discounted bills, was 10.9 trillion yuan, up 7.2% from the end of the previous year.

In 2026, the PBC will continue to thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, focusing on advancing the goal of building a nation with a strong financial sector. We will deploy various monetary policy tools, enhance the financial market system and mechanisms, and channel financial resources more precisely and efficiently to key areas and weaker links in the economy.

That is all from me. Thank you.

Zhou Jianshe:

Due to time constraints, we'll take two final questions.

Elephant News:

In 2025, the two-way opening-up of China's financial market continued to advance. May I ask what new measures the SAFE will take to enhance capital account opening up and further expand investment and financing facilitation? Thank you.

Li Bin:

This question involves capital account opening up. I'd like to invite Mr. Xiao to answer.

Xiao Sheng:

I'll take your question. The recommendations for the 15th Five-Year Plan call for pursuing greater openness of RMB capital accounts. We will work toward this goal and advance high-standard institutional opening up regarding capital accounts in areas such as direct investment, securities investment and cross-border financing in an orderly manner. The main measures include the following four aspects.

First, we will advance the two-way opening up of the financial market in an orderly manner. Recently, the PBC and the SAFE jointly issued a policy on fund management for domestic enterprises listing overseas, unifying domestic and foreign currency fund management for overseas listings, and supporting enterprises in raising funds efficiently in overseas financial markets. Next, we will further study and optimize the cross-border capital policy for qualified foreign institutional investors (QFII), and continue to allocate qualified domestic institutional investors (QDII) investment quotas in an orderly manner. We will work with relevant departments to advance financial market interconnection mechanisms such as the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect, and Bond Connect, continuously enhancing the level of two-way opening-up of the financial market.

Second, we will continue to deepen foreign exchange management reform for cross-border investment and financing. We will further intensify efforts to advance foreign exchange management reform for foreign direct investment, simplify relevant foreign exchange registration procedures, facilitate the payment and use of foreign investment funds, and better support foreign investors in developing their businesses in China. We will revise and introduce measures for the integrated management of domestic and foreign currency for overseas loans granted by domestic enterprises. This will support and facilitate financing for enterprises going global, helping reduce costs and improve efficiency. We will also improve and introduce foreign exchange administration policies for domestic foreign exchange loans to better support enterprises' cross-border trade activities. At the same time, we will prepare a new package of policies and measures to facilitate cross-border investment and financing, further optimize foreign exchange management, and enhance digital services capabilities to better support the real economy's high-quality development.

Third, we will actively enhance our ability to effectively advance the five major areas of finance. In 2025, we upgraded and introduced more convenient cross-border financing policies for high-tech, specialized and innovative, and technology-based SMEs. We also launched a pilot program for green foreign debt financing to support green development and low-carbon transition projects. To date, these policies have helped companies secure nearly $10 billion in financing. Looking ahead, we will continue to focus on technology finance and green finance, further strengthen policy implementation, upgrade and expand pilot programs so that more enterprises can benefit from our policies, and support technological innovation and green, low-carbon development.

Fourth, we will promote and upgrade the policy on multinational corporations' RMB and foreign currency cash pools. In recent years, we have continuously upgraded multinational corporation cash pool policies and strengthened the integration of various types of cash pools. We have formed a multinational corporation cash pool policy framework with unified domestic and foreign currency management and nuanced versions of cash pools. To date, it has benefited more than 1,100 multinational corporations and 19,000 member companies, involving cross-border receipts and payments of $2.1 trillion. Recently, we have extended the integrated RMB and foreign currency cash pool policy for large and super-large multinational corporations nationwide. In 2026, we will extend the centralized cross-border fund operation and management policy to more medium-sized multinational companies nationwide. This will enable more multinationals to conduct cross-border fund operations agilely and efficiently, and support the development of the headquarters economy. Thank you.

Zhou Jianshe:

One last question, please.

Dingduan News:

According to recent data, M2 and total social financing have maintained steady growth. What were the key characteristics of social financing scale and M2 growth in 2025? Thank you.

Zou Lan:

Thank you. For this final question, I would like to invite Mr. Yan to respond.

Yan Xiandong:

Thank you for your question. Since the start of 2025, the PBC has implemented a moderately loose monetary policy, maintaining ample liquidity. Growth in aggregate financing to the real economy (AFRE) and in M2 have both remained relatively high. By the end of 2025, China's AFRE and M2 increased 8.3% and 8.5% year on year, respectively, with growth rates approximately 1.3 and 1.5 percentage points higher than the projected targets for economic growth and the CPI.

AFRE maintained reasonable growth, adequately meeting the funding needs of the real economy. In 2025, AFRE increased by 35.6 trillion yuan. First, in terms of composition, direct financing within the AFRE increment reached 16.7 trillion yuan, accounting for 46.9%. This was 7.8 percentage points higher than in 2020, the final year of the 13th Five-Year Plan period. Specifically, net government bond financing totaled 13.84 trillion yuan, up 2.54 trillion yuan from the previous year. Net non-financial corporate bond financing reached 2.39 trillion yuan, up 482.5 billion yuan from the previous year. This was achieved by leveraging financing support tools for private enterprise bonds and launching the "sci-tech board" in the bond market, an innovative initiative to enhance support for technological innovation and private enterprises. Additionally, through policies and measures to support the capital market and stabilize market expectations, non-financial corporate equity financing reached 476.3 billion yuan, up 186.3 billion yuan from the previous year. Second, yuan loans issued by financial institutions to the real economy maintained reasonable growth, increasing by 15.91 trillion yuan for the year. In addition, off-balance-sheet financing improved, with trust loans, entrusted loans, and undiscounted bankers' acceptance bills increasing by a total of 499.7 billion yuan for the year, up 489.1 billion yuan year on year.

M2 growth accelerated, continuing to create a favorable monetary and financial environment for economic recovery and improvement. At the end of 2025, M2 stood at 340.29 trillion yuan, up 8.5% year on year, 0.5 percentage point higher than the previous month and 1.2 percentage points higher than the same period last year.

Deposits are a major component of M2. Therefore, let me provide an overview of deposit growth at financial institutions. In 2025, yuan deposits increased by 26.4 trillion yuan. Structurally, deposits exhibited the following characteristics: First, household deposits maintained steady growth, increasing 14.6 trillion yuan throughout the year, up 381.2 billion yuan year on year. Second, non-financial corporate deposits grew rapidly, increasing 2.3 trillion yuan for the year, 2.6 trillion yuan more than the previous year. Of this, demand deposits rose 5.3 trillion yuan year on year. Third, non-bank financial institution deposits increased significantly, rising 6.4 trillion yuan for the year, 3.8 trillion yuan more than the previous year.

Additionally, asset management products also had a certain impact on deposit composition. By the end of 2025, total assets of asset management products reached 119.9 trillion yuan, up 13.1% year on year. This included 34.5 trillion yuan in bank wealth management products, 40.8 trillion yuan in public funds, 22.8 trillion yuan in asset management trusts, and 21.6 trillion yuan in asset management products from insurance companies, securities firms, funds, futures companies, and financial asset investment companies combined. On the one hand, in 2025, funds raised by asset management products from households and non-financial enterprises increased by 4 trillion yuan and 1 trillion yuan, respectively, up 337.9 billion yuan and 200 billion yuan from 2024. On the other hand, among the underlying assets of asset management products in 2025, deposits and certificates of deposit increased by 4.6 trillion yuan, accounting for 50% of total new underlying assets. This also contributed to the increase in deposits of non-bank financial institutions.

Next, in accordance with the arrangements of the Central Economic Work Conference, the PBC will continue to implement a moderately loose monetary policy, keeping growth in AFRE and M2 in line with projected economic growth and CPI levels, providing strong financial support for a solid start to the 15th Five-Year Plan period.

That's all I have to say. Thank you!

Zhou Jianshe:

That concludes today's press conference. Thank you to all our speakers and to all our journalist friends. Goodbye!

Translated and edited by Zhang Rui, Liu Jianing, Wang Yanfang, Liu Caiyi, Li Xiao, Li Congrong, Xu Kailin, Yan Bin, Zhang Yuxin, Liao Jiaxin, Wang Wei, Fan Junmei, Liu Sitong, Huang Shan, Zhang Junmian, Ma Yujia, Li Huiru, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

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

Date:

Jan. 14, 2026

Shou Xiaoli:

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 are very pleased to be joined by Mr. Wang Jun, vice minister of the General Administration of Customs of China (GACC), and Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC, who will brief you on China's import and export performance in 2025 and also take your questions.

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

Wang Jun:

Thank you, Ms. Shou. Good morning, everyone. It is nice to meet you here again in this new year. I will start by briefing you on the imports and exports of goods in 2025, and then my colleague and I will answer your questions.

In 2025, facing a complex and severe external environment, 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 advanced against pressures and continued high-quality development through innovative approaches. New progress was made in reform and opening up, and goods trade achieved rapid growth, demonstrating strong resilience and vitality. According to customs statistics, China's total import and export value for the year was 45.47 trillion yuan, an increase of 3.8%. Of this total, exports amounted to 26.99 trillion yuan, up 6.1%, while imports reached 18.48 trillion yuan, increasing by 0.5%. Specifically, it shows the following five features:

First, the scale reached a new high. The total value of imports and exports throughout the year exceeded 45 trillion yuan, setting a new record. China will continue to maintain its position as the world's largest trading nation in goods.

Second, the market became more diverse. Our country had trade relations with more than 240 countries and regions, and achieved growth in imports and exports with over 190 countries and regions. Specifically, imports and exports with Belt and Road partner countries amounted to 23.6 trillion yuan, an increase of 6.3%, accounting for 51.9% of total import and export value. Imports and exports with ASEAN, Latin America and Africa amounted to 7.55 trillion yuan, 3.93 trillion yuan and 2.49 trillion yuan, respectively, representing increases of 8%, 6.5% and 18.4%.

Third, exports showed innovative and high-quality features. Exports of high-tech products amounted to 5.25 trillion yuan, an increase of 13.2%. Exports of green products increased, with electric vehicles, lithium batteries and solar panels increasing by 27.1% and wind turbines increasing by 48.7%. Exports of private label products grew by 12.9%, with their share of total export value increasing by 1.4 percentage points.

Fourth, imports continued to grow. Against the backdrop of falling prices in international markets, China's imports continued to grow for three consecutive quarters starting from the second quarter. Imports of mechanical and electrical products for the whole year amounted to 7.41 trillion yuan, an increase of 5.7%, among which the import value of electronic components and computer parts increased by 9.7% and 20%, respectively. In terms of bulk commodities, the import volume of crude oil and metal ores increased by 4.4% and 5.2%, respectively. In terms of consumer goods, the import value of dried and fresh fruits and edible vegetable oil increased by 5.6% and 16.6%, respectively.

Fifth, enterprises exhibited greater vitality. China recorded more than 780,000 business entities engaging in imports and exports. Among them, private enterprises remained the main engine for foreign trade, with their imports and exports reaching 26.04 trillion yuan, an increase of 7.1%, and amounting to 57.3% of the total import and export value.

Against the complex backdrop of profound changes in the international environment and significant challenges to the global economic and trade order, achieving these foreign trade results for the year is truly remarkable and hard-won. The centralized and unified leadership of the CPC Central Committee is the source of our greatest confidence and strength in overcoming all difficulties. Enterprises across the country rose to challenges and worked hard, delivering a remarkable performance with numerous highlights to successfully achieve the 14th Five-Year Plan's foreign trade objectives. Customs authorities across the country, fulfilling their responsibilities to safeguard the nation's borders and promote development, have consistently launched special initiatives to facilitate cross-border trade. These efforts have helped create a market-oriented, law-based and internationalized business environment that supports two-way trade. Moreover, they have vigorously advanced reform and innovation in regulatory systems, strengthened technological empowerment, and improved regulatory efficiency and service quality. This has provided robust support for stabilizing foreign trade and upgrading its quality.

In 2026, external uncertainties will increase, and the pressure to stabilize foreign trade will remain considerable. At the same time, China's economy possesses a solid foundation, multiple advantages, strong resilience and vast potential. The supporting conditions and fundamental trend of long-term positive development remain unchanged, and the pace of trade innovation and development will grow even more robust. Customs authorities across the country will thoroughly implement the guiding principles of the 20th CPC National Congress and its subsequent plenary sessions of the 20th CPC Central Committee. In accordance with the directives of the Central Economic Work Conference, we will promote reform through openness, foster win-win outcomes through cooperation, and expand markets through facilitation. This will provide strong support for improving the quality and efficiency of foreign trade and ensure a strong start to the 15th Five-Year Plan. Thank you.

Shou Xiaoli:

Thanks, Mr. Wang, for your introduction. The floor is now open for questions. Please identify the media outlet you represent before asking your question. We will now take questions.

China Media Group:

In 2025, the global economic and trade situation was unstable and full of uncertainties. What do you think are the reasons behind the stable growth of China's foreign trade? In addition, what is your outlook for China's foreign trade in 2026? Thank you.

Wang Jun:

Thank you for your questions. Over the past year, global economic growth has slowed, unilateralism and protectionism have risen, and the international economic and trade order has been severely disrupted. Faced with a complex and changing international environment, China's imports and exports still grew at a relatively rapid 3.8%. This marked nine consecutive years of growth, and the longest continuous growth period since China's accession to the World Trade Organization. In December alone, import and export volumes reached 4.26 trillion yuan, marking a 4.9% year-on-year increase, setting a new record for the highest monthly volume. Last year's rapid growth in foreign trade was mainly due to the following factors:

First, policies to stabilize foreign trade played a strong driving role. Last year, the CPC Central Committee and the State Council assessed the situation in a timely manner and made a series of decisions and plans to stabilize foreign trade. Local governments and relevant departments introduced detailed policy measures to help enterprises secure orders, expand markets, and foster new momentum for foreign trade. Customs, together with relevant departments, has carried out special initiatives to facilitate cross-border trade and taken the lead in introducing 29 policy measures for trial implementation. These measures have been welcomed by local governments and enterprises and are now being replicated and rolled out nationwide. We will hold a special press conference tomorrow to provide more details. These practical and effective policies and measures have helped offset the impact of external shocks, boosted business confidence, and stabilized market expectations.

Second, China's vast domestic market continues to unleash its import potential. China has a population of more than 1.4 billion and a middle-income group of over 400 million, making it a vast, diverse and highly promising market. The domestic economy continues to recover and improve, with production and consumption demands being effectively released, offering countries broad market opportunities and room for cooperation. The latest international data shows that in the first three quarters of last year, China became the top export destination for 79 countries and regions worldwide, an increase of three compared to the whole of 2024. Last year, China imported a total of 18.48 trillion yuan in goods, maintaining its share of global imports at around 10%.

Third, China's complete industrial system continues to align with overseas demand. China has the world's most complete industrial system, with the widest range of industries and the most complete industrial chains. Scientific and technological innovation is deeply integrated with industrial innovation, enabling the country to keep pace with shifting international market demand and continuously provide high-quality goods. China's manufacturing product exports have maintained growth for nine consecutive years. Last year, exports of equipment manufacturing products reached 16.03 trillion yuan, an increase of 9.2%. This accounted for 59.4% of China's total export value, contributing 5.3 percentage points to overall export growth.

As for this year's foreign trade outlook, global trade lacks overall growth momentum, and the external environment for China's foreign trade development remains challenging and complex. Global trade growth is expected to weaken further in 2026, according to a United Nations Conference on Trade and Development report. Contributing factors include slowing global economic growth, geopolitical divisions, ongoing policy uncertainties, increased vulnerabilities and rising trade costs. The World Trade Organization's latest Global Trade Outlook and Statistics report has sharply lowered the 2026 global merchandise trade growth forecast to 0.5%.

At the same time, we should also recognize that China's advantages in institutions, market, industrial system and talent resources have become even more prominent. With a more diversified set of trading partners and significantly enhanced resilience against risks, the fundamentals of China's foreign trade remain solid. The fourth plenary session of the 20th CPC Central Committee has made important arrangements to promote trade innovation and development. This provides a stable outlook for the continued improvement of China's foreign trade and injects more certainty into global economic and trade development. Thank you.

Yicai:

We observed that in 2025, exports withstood external pressures and achieved stable growth. What do you consider to be the main growth drivers? Are there any particular features worth noting? Thank you.

Wang Jun:

Last year, despite headwinds and countercurrents, China's exports reached a scale of 26.99 trillion yuan, representing year-on-year growth of 6.1%. Reasonable growth in quantity stems from effective improvements in quality, prominently reflected in three aspects:

First, innovation has adapted to international market demand. High-tech product exports grew 13.2% year on year in 2025, contributing 2.4 percentage points to China's export growth. Among them, exports of special-purpose equipment increased 20.6%, high-end machine tools 21.5%, and industrial robots 48.7%. In particular, industrial robot exports exceeded imports last year, making China a net exporter of industrial robots. At the same time, traditional industries have been upgrading and transforming, continuously gaining new vitality. For example, ceramic companies have combined China's traditional craftsmanship with overseas culture, and their novelty ceramic trees have become a popular new choice for holiday decorations abroad. Home appliance companies have developed a "desert air conditioner" that can operate normally even when the outdoor temperature exceeds 60 degrees Celsius, with its export market continuing to expand.

Second, China's green initiatives have been boosting the global low-carbon transition. In green energy, lithium battery exports increased 26.2% and wind turbine exports 48.7% in 2025. In green transportation, electric motorcycle and bicycle exports rose 18.1%, while electric railway locomotive exports grew 27.1%. In green production, industrial gas purification equipment exports increased 17.3%, and electric forklift exports climbed 5.2%. High-quality green products offer a Chinese solution for the global green transition.

Third, China has promoted common development through cooperation. In 2025, China's intermediate goods trade grew rapidly, becoming the main driving force for exports and providing strong support for global industrial cooperation. China's export markets have become more diversified, with exports to Belt and Road partner countries growing 11.2%, contributing 5.4 percentage points to overall export growth. ASEAN has remained China's largest export market for three consecutive years. Exports to emerging markets such as Latin America, the Middle East, Central Asia and Africa have all outpaced the overall growth rate. China has continued to provide the world with high-quality, affordable, stable and reliable products, becoming a critical link in global industrial and supply chains.

Overall, China's export innovation has become more robust, its green development more prominent, and its cooperative development more vibrant. High-quality Chinese products are popular around the globe, playing an important role in ensuring the stability of global industrial and supply chains. They inject certainty and bring new opportunities to global economic and trade development. Thank you.

Lianhe Zaobao:

The U.S. government launched a trade war last year. What was the state of China-U.S. economic and trade relations in 2025, and how significantly were they affected? With the current tariff war on pause, how should we assess this year's trade trends? Thank you.

Wang Jun:

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

Lyu Daliang:

Thank you for your questions. According to China's customs statistics, China's import and export volume with the United States totaled 4.01 trillion yuan in 2025, accounting for 8.8% of China's total foreign trade value. According to U.S. statistics, in the first 10 months of 2025, U.S. imports and exports with China totaled $373.64 billion, accounting for 7.8% of total U.S. foreign trade.

Last year, the heads of state of China and the United States had multiple phone calls and held a successful meeting in Busan, South Korea, reaching a series of important consensus. Positive outcomes have been achieved after several rounds of economic and trade consultations, leading to a phased easing of tensions in China-U.S. economic and trade relations. According to the bilateral merchandise trade statistics, China is the third-largest export destination and the third-largest import source for the United States, while the United States is China's largest destination for merchandise exports and the third-largest import source.

What I want to say is that the essence of China-US economic and trade relations is mutual benefit and win-win outcomes. Maintaining stable, healthy, and sustainable development of China-US economic and trade relations is beneficial to both countries and to the world. The two sides should work together to implement the consensus reached by their heads of state, and continuously shorten the list of disagreements and lengthen the list of cooperation through dialogue and consultation, so that China-U.S. economic and trade relations can become the "ballast" and "catalyst" for the overall China-U.S. relationship. Thank you.

Red Star News:

We have noticed that in recent years, there has been a growing number of trading partners for China. What changes and highlights have there been in this regard compared to last year? Thank you.

Wang Jun:

Thank you for your question. Last year, faced with an increasing number of external challenges, China's foreign trade enterprises proactively responded to, and steered changes, by consolidating traditional markets and exploring emerging ones. At the same time, the vast potential of China's enormous market continued to be unleashed, providing more opportunities for countries around the world. The diversification of China's foreign trade has become even more evident. Let me give you some details.

First, China's trading partners are all over the world. Last year, there were 249 countries and regions globally that engaged in trade with China. Among them, 14 had trade volumes exceeding one trillion, 62 exceeded 100 billion, and 137 exceeded 10 billion. Compared to 2024, these figures increased by 2, 6, and 10 respectively. In terms of the five continents, China has achieved growth in imports and exports with at least 60% of the countries and regions on each continent. In terms of single economies, last year, China's top ten trading partners accounted for 47.7% of the total foreign trade value, a decrease of two percentage points compared to 2024, indicating a reduced concentration and a more balanced distribution.

Second, trade achievements have promoted mutual benefits and win-win outcomes in multiple areas.

The Version 3.0 China-ASEAN Free Trade Area has been implemented, advancing regional economic integration into broader fields and deeper levels. Last year, China's imports and exports with ASEAN exceeded one trillion U.S. dollars. Meanwhile, trade with Central Asian countries surpassed 100 billion U.S. dollars, with more high-quality agricultural products from Central Asia entering the Chinese market.

China has thoroughly implemented the "Ten Partnership Actions" with African countries. Last year, the trade volume with Africa approached 2.5 trillion yuan, among which the export of goods from overseas contracted engineering projects to Africa rose by more than 40% due to close cooperation in overseas engineering projects.

Mutual complementary advantages have been transformed into shared interests. Over 50% of cosmetics and nearly 60% of automobiles in China are imported from Europe, while pharmaceutical products and industrial robots exported to Europe have maintained growth rates of more than 20%.

China and Latin American countries have forged close links in areas such as manufacturing and agricultural cooperation. Exports of agricultural machinery and construction machinery have maintained double-digit growth, setting a practical example for further South-South cooperation.

China has strengthened cooperation with countries such as Australia and New Zealand under frameworks like the Regional Comprehensive Economic Partnership (RCEP), which led to a 37.2% increase in imports of edible aquatic products and an 18.6% increase in imports of dairy products from the Oceanic region.

Overall, China has continued to expand global partnerships based on equality, openness, and cooperation, while deepening its integration into the global trade and development landscape. Trade with various continents presents a vivid picture of "each thrives in its own strength, and all flourish together in mutual prosperity". Thank you.

Rudaw Media Network:

A relevant research report from the World Trade Organization indicates that AI has become a force for growth of global trade. What's the current situation of China's artificial intelligence going globally? Thank you.

Wang Jun:

Thank you for your questions. We have also noted the relevant report from the World Trade Organization. According to the report, global trade in AI-related products increased by about 20% in the first half of last year, accounting for one-sixth of the total trade and contributing to over 40% of global trade growth. Preliminary estimates based on the product scope of the report indicate that China's trade in AI-related products in 2025 was largely in line with the global trend, demonstrating a vigorous and dynamic development momentum.

First, in the field of intermediate products, the diverse application scenarios have provided a broad space for the implementation of China's artificial intelligence technology, driving the import of related products. For example, China's autonomous driving technology is developing rapidly, with laser radar imports increasing by more than 20%. The demand for AI computing power is strong, with computer component imports increasing by 20%. At the same time, Chinese enterprises have actively participated in global cooperation and division of labor in the artificial intelligence industry, with exports of optical transceiver modules used in high-end graphics card applications increasing by nearly 60%. We have effectively met the strong power demand of global data centers, with exports of electrical equipment such as large transformers and energy storage batteries increasing by 18.8%.

Second, in the field of end-user products, China's intelligent robots are not only capable of dancing, running marathons, and practicing taichi, but they have also become a synonym for highly efficient production. Transport robots equipped with vision systems and algorithms can intelligently avoid obstacles, while welding robots are able to automatically scan, build models and calculate optimal welding solutions. These two types of robots have performed strongly in major overseas infrastructure and transportation projects, with export growth exceeding 60% in 2025. In daily life, our smart wearable devices are connected to large AI models, providing real-time health advice, while smart toys feature diversified functions such as touch sensing and scenario-based dialogue, delivering novel, friendly, and emotionally engaging consumer experiences. In 2025, China's smartwatches and smart toys were sold in more than 170 countries and regions.

At present, a new wave of scientific and technological innovation is entering a period of rapid and concentrated growth. The Central Economic Work Conference has made arrangements to further expand the "AI+" initiative, and China's artificial intelligence sector is gaining strong momentum. Accordingly, the AI intensity of China's foreign trade will continue to rise steadily. The GACC will actively embrace the development of artificial intelligence, taking the development of smart customs as a key driver to optimize clearance procedures, enhance precise risk prevention and control, and further improve the business environment, to ensure effective regulation, greater facilitation and faster clearance. Modernization of customs will better serve and support Chinese modernization. Thank you.

Phoenix TV:

We would like to ask about the specific performance of trade between China and the European Union (EU) over the past year. We have also noted recent progress made by China and the EU regarding electric vehicle trade. What expectations and outlook does the GACC have for China-EU trade this year? Thank you.

Wang Jun:

I would like to invite Mr. Lyu Daliang to respond to the questions.

Lyu Daliang:

Thank you for your questions. China and the EU are each other's second-largest trading partners. According to China's customs statistics, in 2025 China's total imports and exports with the EU reached 5.93 trillion yuan, up 6%, accounting for 13% of China's total foreign trade and contributing 0.8 percentage point to its overall foreign trade growth. According to data from the EU, in the first 10 months of 2025, trade between the EU and China exceeded 700 billion U.S. dollars, accounting for 14.5% of the EU's total external trade and contributing more than 0.8 percentage point to its overall foreign trade growth. The economies of China and the EU are highly complementary, with deeply intertwined interests. This is reflected in three main aspects based on trade data:

First, the two sides were deeply connected in the field of consumer goods. The EU was China's largest source of consumer-good imports and its largest export market for such products, accounting for 26.8% of China's total imports and 16.2% of total exports in this category, respectively. Import from the EU of luggage, healthcare products, passenger vehicles, and cosmetics each accounted for more than 40% of China's imports of these respective products. Meanwhile, China's exports to the EU of electrical and electronic products, garments, and kitchenware grew by 3.4%, 3.7% and 3.6%, respectively, further enriching consumer choices on both sides.

Second, the two sides maintained close links in the high-technology sector. The EU was China's second-largest source of high-tech imports and its third-largest export market. More than one quarter of China-EU merchandise trade was concentrated in high-tech products. In 2025, China's exports of high-tech products to the EU grew by 7.5%, while such imports from the EU increased by 11.1%.

Third, the potential for cooperation in green development continued to be unleashed. Both China and the EU actively support low-carbon transition and green development, making green cooperation a defining feature of bilateral trade. In 2025, China's exports to the EU of wind power equipment surged by 65.9%, while exports of electrical equipment such as DC charging stations and energy-storage batteries rose by 25.4%. Imports from the EU of recyclable products increased by 18.9%. As China's green and low-carbon transition continues to accelerate, there remains broad space for cooperation between the two sides in this field.

At present, unilateralism and protectionism are on the rise, and the rules-based multilateral trading system faces severe challenges. China and the EU are both constructive forces that uphold multilateralism and advocate openness and cooperation. The two sides should move in the same direction, stay committed to dialogue and cooperation, properly manage differences, jointly uphold free trade and practice multilateralism, and promote the sound and stable development of China-EU economic and trade relations. Thank you.

ThePaper.cn:

Could you brief us on China's foreign trade with Belt and Road partner countries in 2025, and the new measures and progress made by the GACC in supporting high-quality Belt and Road cooperation? Thank you.

Wang Jun:

Mr. Lyu will answer your questions.

Lyu Daliang:

Thank you for your questions. High-quality joint development of the Belt and Road Initiative (BRI) has created new opportunities for mutually beneficial and win-win cooperation worldwide. In 2025, China's imports and exports with BRI partner countries reached 23.6 trillion yuan, an increase of 6.3%, which is 2.5 percentage points higher than the overall growth rate of China's foreign trade. In terms of share, trade with BRI partners accounted for 51.9% of China's total foreign trade in 2025, further rising after surpassing the 50% mark in 2024. Here, I would like to share two ways in which we have boosted the trade.

First, "hard connectivity" has facilitated smooth trade. With deeper coordination among the Silk Road maritime routes, cross-border highways and railways, and the Silk Road air routes, China's imports and exports with BRI partner countries through water, land, and air transport grew by 6.2%, 12.4%, and 8.2%, respectively in 2025. Tightly interconnected logistics networks have supported the smooth implementation of major landmark projects. China's exports to BRI partner countries through contracted projects reached 126.49 billion yuan, representing a year-on-year growth of 45.7%. Notable progress was also seen in green infrastructure construction, with exports of wind turbines rising by 73.9%.

Second, the trade that benefits people has further strengthened people-to-people bonds. In the medical sector, China's exports of medical devices to BRI partner countries increased by 10.4% in 2025, providing more high-quality options for their medical industries. At the same time, BRI partner countries are also China's main sources of imported traditional Chinese medicinal materials accounting for over 70% of China's total imported goods in this category. As the saying goes, food is the top priority for the people. In 2025, China's General Administration of Customs (GAC) and its counterparts in BRI countries signed more than 100 cooperation documents on market access for agricultural and food products. Trade in agricultural products between China and BRI partners reached a record high of 1.43 trillion yuan. The BRI customs cooperation information platform on food safety was officially launched, ensuring that consumers on both sides can enjoy a rich and safe diet.

Positioned at the hub of international and domestic circulation, customs serves as an important link in promoting connectivity. We have continued to deepen institutional cooperation with BRI partner countries in customs inspection and quarantine. Cooperation on smart customs with BRI partner countries has been steadily expanded. To date, customs authorities from 146 countries and regions have registered on the global smart customs cooperation platform, and a total of 82 best-practice cases in the field have been released. In 2025, we officially implemented mutual recognition of Authorized Economic Operator (AEO) with four BRI partner countries, and signed cooperation documents on "single window" clearance with customs authorities in five BRI partner countries, continuously facilitating customs clearance. We are advancing the expansion and renovation of border ports, promoting the pilot projects for smart port checkpoints, improving the "green channel" for fast-track customs clearance of agricultural products, and improving the flow of cross-border movements with BRI partner countries.

Moving forward, the customs authorities will work under the guidance of the eight major steps for high-quality Belt and Road cooperation, deepen collaboration with the customs authorities of BRI partner countries, enhance customs clearance efficiency, in order to achieve steady and long-term progress of high-quality Belt and Road cooperation.

National Business Daily:

According to the data released by the customs authorities, we have noted a continuous increase in the monthly imports since the second half of the year. How do you assess China's import performance throughout the year? What are your expectations for future imports? Thank you.

Wang Jun:

China's imports in 2025 reached a record high of 18.48 trillion yuan, making the country the world's second-largest import market for the 17th consecutive year. Last year, prices of some major commodities in international markets declined, with import prices of crude oil and iron ore dropping by about 10%, which dragged down the overall import growth rate by 1.4 percentage points. Against this backdrop, the growth of imports did not come easily. Throughout last year, China's import exhibited the following features:

First, the momentum of imports continues to strengthen. With the sustained economic recovery, stable production growth, and increasingly steady improvement of imports due to expanded consumer demand, starting from June, China's imports maintained year-on-year growth for seven consecutive months. The growth rate further accelerated to 4.4% in December.

Second, efforts to expand imports has delivered notable progress. China has proactively expanded imports and carried out a series of "Big Market for All: Export to China" activities. The eighth China International Import Expo (CIIE) was successfully held. With a record number of participating companies and intended deals exceeding $80 billion in last year's event, the CIIE has become a gateway for enterprises from around the world to access China's vast economy. China's customs authorities granted market access to an additional 190 categories of agricultural and food products from 65 countries and regions. Over the year, China imported nearly 1.5 trillion yuan worth of agricultural products. The number of overseas agricultural and food enterprises registered with Chinese customs authorities increased by 83,000, bringing the total to over half a million. Last year, China imported nearly 30 tonnes of bulk commodities, up 1.1% year-on-year. The value of imported mechanical and electrical products exceeded 7.4 trillion yuan, representing a year-on-year increase of 5.7%.

Third, imports recorded growth from a broader range of trading partners. Last year, China's imports increased from more than 130 countries and regions worldwide, seven more than in 2024. Imports from Asia, Latin America, and Africa rose by 3.9%, 4.9%, and 6%, respectively. China granted zero-tariff treatment on 100% of tariff lines for products from the least developed countries with which it has diplomatic relations, and imports from these countries increased by 9%.

It should be noted that some countries have politicized economic and trade issues, restricting high-tech product exports to China under various pretexts. Without these restrictions, China's imports in 2025 would have been even higher.

Looking ahead, China will open its doors wider to the world, offering ample room for import growth. China's huge market will continue to present a major opportunity for the global community. Customs authorities will, in accordance with the decisions and plans of the CPC Central Committee and the State Council, further innovate regulatory systems to provide enhanced customs clearance supervision and services, thereby facilitating import growth. Thank you.

Nanfang Daily, Nanfang Plus:

The year 2025 marked the final year for implementing the 14th Five-Year Plan (2021-2025). Given that China's foreign trade saw fairly rapid growth in 2025, could you give us an overview of China's foreign trade performance during the 14th Five-Year Plan period? Thank you.

Wang Jun:

Thank you. China's import and export performance in 2025 delivered a series of highlights, bringing the 14th Five-Year Plan to a successful conclusion. The 14th Five-Year Plan period was a truly remarkable five years. Under the strong leadership of the CPC Central Committee, China's foreign trade has withstood the test of a turbulent external environment. Cumulative imports and exports exceeded 200 trillion yuan, a 40% surge from the 13th Five-Year Plan period. Bolstered by its massive trade volume, continuous improvement in product quality, and strong resilience against economic and trade headwinds, China made solid progress in its development as a trader of quality.

First, in terms of volume, China has maintained its position as the world's largest goods trading nation. Over the past five years, China's total import and export value successively crossed the 40 trillion yuan and 45 trillion yuan thresholds, reaching 45.47 trillion yuan in 2025. This represented an increase of 41.1% compared to 2020, with an average annual growth rate of 7.1%. China's share of the global import market has remained at around 10%, with cumulative imports exceeding 90 trillion yuan over the past five years. Its share of the global export market has held steady at above 14%. China is expected to maintain its status as the world's largest goods trading nation in 2025.

Second, the quality of China's goods trade has been continuously optimized and upgraded. Foreign trade has become increasingly innovation-driven and environmentally sustainable. Over the past five years, imports and exports of high-tech products have grown at an average annual rate of 7.9%. In 2025, year-on-year growth reached 11.4%, accounting for nearly 60% of overall foreign trade growth. In 2025, the export value of the "new trio" products, namely electric vehicles, lithium-ion batteries and photovoltaic products, approached 1.3 trillion yuan, a 3.5-fold increase from 2020. New business forms and models are thriving. According to preliminary customs statistics, China's cross-border e-commerce imports and exports totaled 2.75 trillion yuan in 2025, up 69.7% from 2020.

Finally, in terms of resilience, China's capacity to withstand risks and shocks has significantly strengthened. China has firmly upheld the multilateral trading system, opposed unilateralism, and upheld international equity and justice. Over the past five years, China's foreign trade 'circle of partners' has kept expanding, while the path toward trade diversification has kept broadening. The latest international data shows that China has become a major trading partner of more than 160 countries and regions worldwide, an increase of over 20 from 2020. A vast number of foreign trade enterprises have adapted and responded proactively to changes, grown stronger through challenges, and fully demonstrated their indomitable spirit of perseverance and determination. Private enterprises have continued to play a leading role in stabilizing foreign trade, accounting for about 80% of the increase in foreign trade during the 14th Five-Year Plan period. Foreign-funded enterprises remain committed to deepening their presence in China with unwavering confidence. In 2025, the number of such enterprises engaged in imports and exports increased by more than 1,700 compared with 2020. The import and export volume of state-owned enterprises has maintained steady growth.

The fourth plenary session of the 20th CPC Central Committee has charted a grand blueprint for socioeconomic development over the next five years, laying out important plans for expanding high-level opening-up and creating a new landscape of win-win cooperation. A stable and highly open China will surely inject more stability and positive energy into global economic development. Thank you.

Beijing Youth Daily:

You just gave an overview of China's overall import and export situation. Could you tell us more specifically about the characteristics and highlights of foreign trade across different regions in 2025? Thank you.

Wang Jun:

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

Lyu Daliang:

Thank you for your question. In 2025, regions across China leveraged their unique geographical advantages and resource endowments to actively contribute to the steady growth of the nation's imports and exports. The following three points were particularly notable:

First, major foreign trade provinces played a leading role. In 2025, the combined import and export volume of seven provinces and municipalities — Guangdong, Jiangsu, Zhejiang, Shanghai, Shandong, Beijing and Fujian — reached 34.11 trillion yuan, up 2.7% year on year. These regions contributed more than half of the country's trade growth, effectively stabilizing the fundamentals of the foreign trade sector. Of this total, imports and exports of high-tech products rose 11.4%, driving the overall trade growth of these seven regions by 2.2 percentage points. Both imports and exports of electronic information goods and high-end equipment saw relatively fast growth.

Second, border regions reached new levels of development. With the continuous expansion of China's opening-up, border provinces and autonomous regions are gradually transforming into new frontiers of openness. In 2025, imports and exports in the nine border provinces and autonomous regions totaled 3.14 trillion yuan, an increase of 5.6%. This growth rate has outpaced the national average for four consecutive years. These border regions also serve as a window for China to deepen cooperation with neighboring countries and regions. Driven by open channels such as the China-Europe Railway Express, the new western land-sea corridor and the China-Laos Railway, imports and exports between border provinces and autonomous regions with neighboring countries reached 1.86 trillion yuan last year, up 6.3% year on year.

Third, key regions fueled further momentum. The high-quality development of the Xiongan New Area has achieved remarkable results, with imports and exports rising rapidly last year and exceeding 70 billion yuan. The Yangtze River Delta region's import and export volume increased 6.3%, raising the region's share of China's total foreign trade to 37.4%. Exports of ships and offshore engineering equipment from the region rose 11.4%, while biopharmaceutical exports increased 6.9%. Both categories accounted for more than half of the nation's total exports of such products. The foreign trade volume of the nine mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area expanded steadily in 2025, surpassing the 9 trillion yuan milestone to reach 9.15 trillion yuan, a 4.7% increase. These cities were responsible for exporting nearly half of China's tablet computers and over 80% of its 3D printers. The Hong Kong-Zhuhai-Macao Bridge has fully leveraged its role as a major regional logistics artery. Imports and exports via the bridge's port reached 325.84 billion yuan last year, up 40.1%. Thank you.

21st Century Business Herald:

You just mentioned that the number of business entities with import and export records in China reached 780,000 in 2025. Could you please share the specific characteristics and highlights regarding the trade performance of these various types of entities? Thank you.

Wang Jun:

Thank you for your question. In 2025, foreign trade entities rose to the challenge and forged ahead with determination. With their growing internal driving momentum and innovation potential, they jointly supported steady growth and higher quality in China's foreign trade.

Regarding private enterprises, the CPC Central Committee convened a symposium on private enterprises last year, and the Private Sector Promotion Law was officially implemented. These moves accelerated the release of various policy dividends, effectively stimulating the vitality of private enterprises. In 2025, private enterprises showed stronger innovative momentum and growing strength. Their share of China's total foreign trade rose 1.8 percentage points to 57.3%. Their exports of high-tech products increased 14.8%, with high-end equipment surging 26.9%, to account for nearly 60% of the national total. From offshore equipment to low-altitude aircraft, private enterprises are acting as pioneers across the board. They now account for more than 70% of the total trade value generated by China's "little giant" firms — companies recognized for their specialized and sophisticated technologies. In emerging business models, exports by private enterprises under the market procurement trade model rose 9.2%.

As for foreign enterprises, China remains an attractive and competitive destination for global businesses, offering an ideal, secure and promising environment for investment. A recent survey of multinational corporations conducted by relevant institutions shows that more than 90% of respondents plan to continue investing in China, indicating that foreign investor confidence in the Chinese market remains solid. In 2025, imports and exports by foreign-invested enterprises reached 13.27 trillion yuan, marking a 3.7% increase and maintaining growth for seven consecutive quarters. Foreign-invested enterprises saw their imports and exports grow 9.6% in computer, communication and other electronic equipment manufacturing; 6.1% in pharmaceutical manufacturing; and 9.5% in food manufacturing.

As for state-owned enterprises (SOEs), they have remained focused on their core responsibilities and overall development priorities, playing a key role in ensuring energy and resource supplies and strengthening industrial chain resilience. In 2025, SOEs posted a combined import-export value of 6.06 trillion yuan, accounting for 13.3% of China's total foreign trade. Among SOEs engaged in foreign trade, the average import-export volume per enterprise reached 940 million yuan, the highest of any enterprise type. SOEs play a particularly prominent role in imports, with import volume 2.1 times that of exports. They accounted for over 60% of China's energy imports and nearly 40% of metal ore imports.

Going forward, customs authorities will continue implementing policies and measures to stabilize foreign trade. They will leverage mechanisms such as the "customs heads delivering policies directly to companies" initiative, continue building the "zero-distance between customs and enterprises" service brand, strengthen corporate credit cultivation, and provide targeted support to help market entities of all types stabilize markets and secure orders. Thank you.

Shou Xiaoli:

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

TASS:

How has the Hainan Free Trade Port (FTP) performed in areas such as trade facilitation and duty-free shopping since it officially launched island-wide special customs operations? Thank you.

Wang Jun:

As you know, in a few days, it will be one month since the Hainan FTP officially launched island-wide special customs operations. Since the launch, related policies have been steadily implemented. Movements across the "first line" and "second line" have been smooth and efficient, and overall operations have remained stable and orderly. The results are mainly reflected in three aspects:

First, policy benefits have begun to deliver tangible results. From Dec. 18, 2025, to Jan. 10, 2026, customs authorities processed 18,000 metric tons of cargo at the "first line" in accordance with direct release measures. Zero-tariff imports reached 460 million yuan, with tariff exemptions totaling 62.128 million yuan. Local enterprises, hospitals and research institutions have gained access to zero-tariff materials and equipment. Meanwhile, enterprises in sectors such as tourism and transportation can benefit from zero-tariff aircraft, vessels, and vehicles for commercial use. During the same period, customs authorities processed 56.816 million yuan in goods sold to the mainland under the tax exemption policy for the processing value-added at the "second line," exempting 2.301 million yuan in import duties. This has encouraged Hainan enterprises to extend their industrial chains and boost value-added production.

Second, the appeal of opening-up policies has grown significantly. Attracted by the benefits of island-wide special customs operations in the Hainan FTP, a growing number of enterprises are choosing to do business in the province. From Dec. 18, 2025, to Jan. 10, 2026, 4,709 foreign trade enterprises filed for registration in Hainan. This 24-day figure matches the total for an entire quarter in 2024. The total number of registered foreign trade companies in Hainan now exceeds 100,000. The launch of island-wide special customs operations has driven rapid growth in Hainan's foreign trade. During the same period, the total value of goods imports and exports across the island reached 21.42 billion yuan, up 19.6% year on year. Among these, imports rose 13.3% and exports jumped 31.6%.

Third, offshore duty-free shopping continues to gain momentum. Following a round of policy adjustments, the number of duty-free product categories available to outbound shoppers in Hainan has expanded from 45 to 47, with new additions including digital photography equipment, micro drones and other electronic products. At the same time, eligibility has been expanded to include all travelers departing from Hainan Island. From Dec. 18, 2025, to Jan. 10, 2026, a total of 585,000 people made outbound duty-free purchases in Hainan, up 32.4% year on year. Total sales reached 3.89 billion yuan, a 49.6% increase. On average, about 24,000 people made duty-free purchases in Hainan every day, with daily sales averaging 160 million yuan, both higher than levels recorded before the launch of island-wide special customs operations.

The launch of island-wide special customs operations marks a major milestone in the development of the Hainan FTP. Customs authorities will continue to monitor and evaluate the implementations of these operations, further optimize regulatory services, and strike a proper balance between facilitation and effective oversight. These efforts aim to build the Hainan FTP into a special customs regulatory area that is internationally competitive and globally influential. Thank you.

Shou Xiaoli:

Thank you to our two speakers and to all our media friends for participating. That concludes today's briefing. Goodbye, everyone!

Translated and edited by Liu Sitong, Li Congrong, Wang Xingguang, Xu Kailin, Liu Caiyi, Zhu Bochen, Zhang Tingting, Xiang Bin, Cui Can, Li Huiru, Huang Shan, Li Xiao, Fan Junmei, Zhang Rui, Ma Yujia, Zhang Junmian, Zhou Jing, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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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:

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

Date: 

Nov. 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 are joined by Mr. Fu Linghui, spokesperson and chief economist of the National Bureau of Statistics (NBS) and director general of its Department of Comprehensive Statistics. Mr. Fu will brief you on China’s economic performance in October 2025 and then take your questions.

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

Fu Linghui:

Thank you, Mr. Zhou. As usual, I will start by briefing you on the main economic indicators for October 2025 and then take your questions.

In October, the national economy remained generally stable, with steady improvements.

In October, 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 plans made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, stepped up efforts to stabilize employment, enterprises, markets and expectations, made thorough efforts to develop a unified national market, and actively promoted unimpeded domestic and international economic flows. As a result, production and supply remained generally stable, employment was broadly steady, prices showed improvements, new growth drivers were cultivated and expanded, and the national economy maintained overall stability with steady progress.

First, industrial production continued to grow, with strong momentum in equipment manufacturing and high-tech manufacturing.

In October, the value added of industrial enterprises above designated size grew by 4.9% year on year, or 0.17% month on month. In terms of sectors, the value added of the mining industry increased by 4.5%, that of manufacturing was up by 4.9%, and that of the production and supply of electricity, thermal power, gas and water grew by 5.4% year on year. The value added of equipment manufacturing grew by 8.0%, and that of high-tech manufacturing increased by 7.2%, which were 3.1 percentage points and 2.3 percentage points faster than the total value added of industrial enterprises above designated size, respectively. In terms of ownership, the value added of state-holding enterprises increased by 6.7% year on year; that of share-holding enterprises rose by 5.2%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 4.0%; and that of private enterprises grew by 2.1%. In terms of products, the production of 3D printing devices, new-energy vehicles, and industrial robots increased by 30.8%, 19.3% and 17.9% year on year, respectively. From January to October, the total value added of industrial enterprises above designated size grew by 6.1% year on year. In October, the Manufacturing Purchasing Managers’ Index was 49.0%, and the Production and Operation Expectation Index was 52.8%. From January to September, industrial enterprises above designated size recorded total profits of 5,373.2 billion yuan, up by 3.2% year on year.

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

In October, the Index of Services Production increased by 4.6% year on year. In terms of sectors, that of information transmission, software and information technology services, leasing and business services, and financial intermediation rose by 13.0%, 8.2% and 5.6% year on year, respectively, which were 8.4 percentage points, 3.6 percentage points and 1.0 percentage point faster than that of the Index of Services Production. From January to October, the Index of Services Production increased by 5.7% year on year. From January to September, the business revenue of service enterprises above designated size grew by 7.6% year on year. In October, the Business Activity Index for Services was 50.2%, and the Business Activity Expectation Index for Services was 56.1%. Specifically, the Business Activity Index for railway transportation, air transportation, postal services, accommodation, and culture, sports and recreation stayed within the high expansion range of 60.0% or above.

Third, market sales expanded, and growth of service retails accelerated.

In October, the total retail sales of consumer goods reached 4,629.1 billion yuan, up by 2.9% year on year, or 0.16% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas were 4,002.1 billion yuan, up by 2.7% year on year, and that in rural areas reached 627.0 billion yuan, up by 4.1%. Grouped by consumption type, the retail sales of goods totaled 4,109.2 billion yuan, up by 2.8%, and the income of catering was 519.9 billion yuan, up by 3.8%. Basic living consumption and some upgraded consumption items grew relatively quickly. Retail sales of grain, oil and food, communication equipment, cultural and office supplies, and sports and recreational goods by enterprises above designated size increased by 9.1%, 23.2%, 13.5% and 10.1% year on year, respectively. From January to October, total retail sales of consumer goods reached 41,216.9 billion yuan, up by 4.3% year on year. Online retail sales reached 12,791.6 billion yuan, up by 9.6% year on year. Specifically, online retail sales of physical goods were 10,398.4 billion yuan, up by 6.3%, accounting for 25.2% of the total retail sales of consumer goods. From January to October, retail sales of services increased by 5.3% year on year, 0.1 percentage point faster than that in the first three quarters. Specifically, retail sales of culture, sports and leisure services, communication information services, tourism consultation and rental services, and transportation services grew relatively quickly.

Fourth, fixed-asset investment declined year on year, while investment in the manufacturing sector continued to grow.

From January to October, fixed-asset investment (excluding rural households) reached 40,891.4 billion yuan, down 1.7% year on year. Excluding real estate development investment, fixed-asset investment increased by 1.7%. Specifically, investment in infrastructure decreased by 0.1% year on year, manufacturing investment increased by 2.7%, and real estate development investment declined by 14.7%. The floor space of newly-built commercial buildings sold was 719.82 million square meters, down by 6.8% year on year, and the total sales of newly-built commercial buildings were 6,901.7 billion yuan, down by 9.6%. By industry, investment in the primary industry grew by 2.9% year on year, that in the secondary industry increased by 4.8%, and that in the tertiary industry declined by 5.3%. Private investment fell by 4.5% year on year, but increased by 0.2% with the investment in real estate development deducted. Among high-tech industries, investment in information services, aerospace vehicle and equipment manufacturing, and computer and office device manufacturing increased by 32.7%, 19.7% and 4.1% year on year, respectively. In October, fixed-asset investment (excluding rural households) decreased by 1.62% month on month.

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

In October, the total value of imports and exports of goods was 3,702.8 billion yuan, up by 0.1% year on year. Specifically, exports fell 0.8% to 2,171.6 billion yuan and imports rose by 1.4% to 1,531.1 billion yuan. From January to October, the total value of imports and exports of goods was 37,309 billion yuan, a year-on-year increase of 3.6%. Specifically, exports increased 6.2% to 22,114.6 billion yuan and imports reached 15,194.4 billion yuan, remaining unchanged year on year. From January to October, the imports and exports in general trade went up by 2.3%, accounting for 63.4% of the total value of imports and exports. Imports and exports with Belt and Road Initiative partner countries grew 5.9%. Imports and exports by private enterprises increased 7.2%, accounting for 57% of the total value of imports and exports, 1.9 percentage points higher than that of the same period last year. Exports of mechanical and electrical products went up 8.7%, accounting for 60.7% of total exports.

Sixth, employment remained generally stable and the surveyed urban unemployment rate declined.

From January to October, the average surveyed urban unemployment rate nationwide was 5.2%. In October, the national surveyed urban unemployment rate was 5.1%, which was 0.1 percentage point lower than that of the previous month. The surveyed unemployment rate of population with local household registration was 5.3%, while that of population with non-local household registration was 4.7%, among which, the rate of the population with non-local agricultural household registration was 4.5%. The surveyed urban unemployment rate in 31 major cities was 5.1%, which was 0.1 percentage point lower than that of September. The average weekly working hours for enterprise employees nationwide was 48.4 hours.

Seventh, consumer prices turned from a decline to an increase and the decline of producer prices for industrial products narrowed.

In October, the consumer price index (CPI) went up 0.2% month on month, compared to a decline of 0.3% in the previous month; it rose by 0.2% year on year. By category, prices for food, tobacco and alcohol decreased 1.6% year on year, clothing increased 1.7%, housing rose 0.1%, household goods and services grew 1.9%, and transportation and communication declined 1.5%. Prices for education, culture and recreation went up 0.9%, health care rose 1.4%, and other goods and services increased 12.8%. In terms of prices for food, tobacco and alcohol, the price of pork dropped 16.0%, fresh vegetables fell 7.3%, fresh fruit decreased 2.0%, and grain declined 0.7%. The core CPI, excluding the prices of food and energy, grew 1.2% year on year, 0.2 percentage point higher than that of September. From January to October, the national CPI went down by 0.1% year on year.

In October, the national producer price for industrial products fell 2.1% year on year, with the decline narrowing by 0.2 percentage point from the previous month, and rose 0.1% month on month. The national purchasing price for industrial producers dropped 2.7% year on year, with the decline narrowing by 0.4 percentage point, and rose by 0.1% month on month. In the first 10 months, the national producer price and purchasing price for industrial products decreased 2.7% and 3.2% year on year, respectively.

Overall, the national economy operated steadily in October, while transformation and upgrading were advanced solidly, and new growth drivers continued to grow. It should also be noted that due to instabilities and uncertainties in the external environment and significant pressure in domestic structural adjustment, the Chinese economy faces many challenges in terms of stable operation. In the next phase, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the guiding principles from the fourth plenary session of the 20th CPC Central Committee, and persist in the general principle of pursuing progress while ensuring stability to comprehensively expand domestic demand. We will focus on stabilizing employment, enterprise operations, markets and expectations, actively promote the continuous implementation and effectiveness of macro policies, comprehensively deepen reform and opening up, and further propel innovation-driven development, so as to both improve the quality of growth and appropriately increase output.

Thank you.

Zhou Jianshe:

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

National Business Daily:

Based on the data just released, how would you evaluate the economic performance in October? What were the highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your questions. In October, under the strong leadership of the CPC Central Committee, all regions and departments earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council. We focused on stabilizing employment, enterprise operations, markets and expectations, and boosted domestic and international economic flows while strengthening the domestic economy. By doing so, the national economy has maintained a development trend of steady progress, with production and demand growing steadily, employment and prices remaining generally stable, and transformation and upgrading proceeding. The main highlights are as follows.

First, production supply continued to grow. Agricultural production was in good shape. The area of autumn grain production remained stable with a slight increase, and the per-unit yield continued to rise. A bumper grain harvest for the whole year is in sight, with autumn and winter sowing proceeding smoothly. Industrial production was generally stable. In October, the added value of industries above designated size increased 4.9% year on year, maintaining an overall stable growth. The added value of equipment manufacturing rose 8%, significantly faster than the growth of industries above designated size, providing solid support for its growth. The service industries grew steadily. In October, the service production index increased 4.6% year on year. The growth rate fell slightly from the previous month mainly due to the elevated base in the same period last year. Based on the two-year average and cumulative growth rates, service sector continued to grow steadily. The overlap of the National Day and Mid-Autumn Festival holidays in October accelerated the growth of the service industry. The production index of the accommodation and catering sectors rose 3.9% year on year, 2.6 percentage points higher than the growth rate of September.

Second, market sales continued to expand. The special campaign to boost consumption gradually showed results, and the holiday economy became a significant driving force, leading a sustained growth in retail sales of goods and services. In October, the total retail sales of consumer goods went up 2.9% year on year, with rapid growth in sales of goods related to the trade-in program. In terms of commodities by enterprises above designated size, the retail sales of communication equipment and cultural and office supplies rose 23.2% and 13.5%, respectively. Fueled by increased resident holiday travel, service consumption such as tourism and cultural activities expanded. From January to October, retail sales by the service industry grew 5.3% year on year, which was faster than the growth rate of goods retail sales.

Third, the employment situation is generally stable. The surveyed urban unemployment rate has continued to fall, with the national surveyed urban unemployment rate standing at 5.1%, down 0.1 percentage point from the previous month, marking the second consecutive monthly decline. Of this, the urban surveyed unemployment rate for migrant workers with rural household registration was 4.5%, down 0.2 percentage point from the previous month, significantly lower than the national average. Despite deepening adverse external impacts and many challenges in economic operations, China's employment situation has remained generally stable, with continued improvement in employment for key groups, playing an important role in protecting livelihoods and promoting development.

Fourth, prices have shown positive momentum. The CPI shifted from a decline to an increase, rising 0.2% year on year in October, compared with a 0.3% decline last month. Of this, the core CPI, excluding food and energy, rose 1.2% year on year, with the increase expanding 0.2 percentage point from the previous month, marking six consecutive months of expanding growth. The decline in the PPI has continued to narrow. In October, the PPI fell 2.1% year on year, a decrease of 0.2 percentage point from the previous month, representing the third consecutive month of narrowing. Efforts to regulate market competition order are beginning to show results. In October, prices in industries such as lithium-ion battery manufacturing, photovoltaic equipment and component manufacturing rose 0.2% and 0.6% month on month, respectively.

Fifth, the momentum of transformation and upgrading continues. High-tech manufacturing has maintained solid growth. In October, the value added of high-tech manufacturing enterprises above designated size increased 7.2% year on year, continuing to outpace the growth of industrial enterprises above designated size. In terms of exports, the export value of high-tech products increased 7.3% over the first 10 months. The modern service industry has also developed well. In October, the Index of Services Production of information transmission, software and information technology services, as well as rental and business services, increased 13% and 8.2% year on year, respectively, continuing to maintain rapid growth. The integration of the digital and real economies has steadily advanced. In October, the value added of digital product manufacturing enterprises above designated size increased 6.7% year on year. From January to October, online retail sales of physical goods rose 6.3%. The green transformation has begun to take effect. In October, the output of green products such as new energy vehicles and lithium-ion power batteries for automobiles increased 19.3% and 30.4%, respectively.

However, it should also be noted that the international environment remains complex and severe, with many unstable and uncertain factors. Domestically, cyclical and structural issues are intertwined, and the economy still faces many challenges. Moving forward, we will thoroughly study and implement the guiding principles of the fourth plenary session of the 20th CPC Central Committee, and continue to accurately implement the decisions and plans of the CPC Central Committee. We will focus on stabilizing employment, enterprises, markets and expectations, consolidate economic fundamentals, intensify efforts to cultivate new quality productive forces, and promote sustained and healthy economic development. Thank you.

South China Morning Post:

I have two questions. In the first three quarters, fixed asset investment fell 0.5% year on year, and from January to October, it fell 1.7%. How does the NBS interpret and assess the future trend of investment looking ahead? Second, in October, China's exports fell 1.1% year on year while imports increased 1%, falling short of market expectations. What, according to your analysis, were the main reasons behind this? Additionally, what are your observations and assessments regarding China's import and export trends over the coming months? Thank you.

Fu Linghui:

Thank you for your questions. You've asked about two key issues: investment and the state of imports, exports, and foreign trade. Looking at the first 10 months, fixed-asset investment fell 1.7% year on year. However, when we exclude price factors, we see that fixed-asset investment maintained modest growth, and the physical volume of investment work continued to increase. I would also like to share a few views on the current changes in investment.

First, the slowdown in investment growth reflects the combined effect of multiple factors. From the perspective of investment entities, the external environment is complex and severe, domestic market competition is intense, and investment returns have declined. As a result, market operators have become increasingly cautious in their investment decisions. This is reflected in the weak enterprise profitability and a slowdown in private investment, both of which affect investment growth. From a structural perspective, real estate investment accounts for a relatively high proportion of total investment, and the adjustment in the real estate industry has significantly dampened investment growth. From January to October, real estate development investment fell 14.7% year on year. Excluding real estate development investment, project investment grew 1.7%, and the decline in real estate development investment dragged down total investment by 3 percentage points. In addition, insufficient investment growth momentum in some industries has also objectively impeded overall investment growth.

Second, although investment growth is slowing, the investment structure is being optimized. This is reflected in sustained growth in manufacturing investment. The transformation and upgrading of traditional manufacturing industries are advancing steadily, and emerging manufacturing industries are growing, supporting growth in manufacturing investment. From January to October, manufacturing investment grew 2.7% year on year, outpacing total investment and accounting for 25.6% of the total, up 1.1 percentage points from the same period last year. Investment in some high-end industries has increased, and the integrated development of technological and industrial innovation has driven rapid growth in high-tech industry investment. From January to October, investment in aerospace vehicle and equipment manufacturing increased 19.7% year on year, and investment in information services increased 32.7%. Investment in the green transformation has shown strong growth momentum. The green transformation of the energy sector has continued to advance, with clean energy investment maintaining rapid growth. From January to October, combined investment in solar, wind, nuclear and hydropower generation increased 10.4% year on year, maintaining strong growth momentum.

Third, China still possesses enormous potential and scope for investment. It is essential to take an objective and comprehensive view of changes in investment growth rates, rather than focusing solely on the present. A longer-term development outlook is necessary. As the world's largest developing country, China still has substantial room for investment expansion to reach the level of moderately developed countries in the future. From the perspective of industrial development, strengthening the foundation of the real economy, promoting the integrated development of technological and industrial innovation, accelerating the cultivation and growth of new quality productive forces, and promoting the transformation and upgrading of traditional industries all require continuous increases in investment. From the perspective of regional development, addressing the problems of unbalanced and inadequate development, promoting coordinated urban and rural development, advancing urban renewal and all-around rural revitalization also all require continuous increases in investment. From the perspective of ensuring people's well-being, investment in education, health care, housing and basic public services needs to be strengthened to address gaps and improve people's livelihoods.

Moving forward, we will remain focused on high-quality development, continue to optimize the investment structure and environment, and further stimulate the vitality of private investment. We will promote healthy investment development and better leverage the key role of investment in expanding domestic demand, optimizing supply and improving people's well-being.

Regarding the foreign trade situation you mentioned, I will elaborate on a few key points.

Overall, despite rising global trade protectionism and significant uncertainty in the trade environment, China's trade in goods has continued to expand, demonstrating strong resilience and vitality. In the first 10 months of this year, China's total imports and exports of goods increased 3.6% year on year, with goods exports growing 6.2%. This growth stems from China's unwavering commitment to expanding openness, actively promoting diversified foreign trade development, optimizing and upgrading industries, and enhancing market competitiveness. It is also the result of efforts to promote the integration of domestic and foreign trade and create a favorable environment for foreign trade enterprises. Looking at the situation in October, goods imports and exports showed the following characteristics:

First, overall goods imports and exports remained stable. In October, China's total imports and exports of goods increased 0.1% year on year. The growth rate slowed compared to the previous month, mainly due to the high base from the same period last year. In September last year, typhoon-related disruptions delayed some trade shipments until October, creating a relatively high base for that month. Looking at the combined data for September and October, imports and exports remained generally stable. In October specifically, despite a high comparison base from last year, goods imports still increased 1.4%, maintaining a growth trend for five consecutive months. This continued growth has helped boost global trade demand.

Second, foreign trade diversification has made steady progress. Despite the impact of high tariffs leading to a decline in trade with the United States, China has remained committed to expanding high-level openness. We have taken the initiative to open wider and advance unilateral opening-up in a well-ordered manner, promoting economic and trade exchanges with countries globally on the basis of mutual benefit and win-win cooperation. The accelerated growth of imports and exports with partners such as ASEAN and the EU has provided strong support for the continuous expansion of foreign trade. From January to October, China's total import and export volume with ASEAN and the EU increased 9.1% and 4.9%, respectively, outpacing the overall growth rate. Meanwhile, total goods trade with Belt and Road partner countries grew 5.9%, maintaining rapid growth.

Third, the vitality of foreign trade enterprises has continued to be unleashed. Since the beginning of this year, despite increasing external instability and uncertainty, all parties have actively supported the development of foreign trade enterprises. These enterprises have taken the initiative to consolidate and explore markets, providing strong support for foreign trade growth. In the first 10 months, imports and exports by private enterprises in China increased 7.2% year on year, well above the overall average. Imports and exports by foreign-invested enterprises grew 2.9%, sustaining their growth momentum.

Fourth, export momentum has shifted toward higher quality and greater innovation. As China's industries upgrade and develop, the technological content of products has improved. This has continuously strengthened the competitiveness of exports and optimized the export structure. Electromechanical products and high-tech products have increasingly become important growth drivers for exports. In the first 10 months, exports of electromechanical products increased 8.7% year on year, accounting for 60.7% of China's total export value. Among them, export values for integrated circuits and automobiles climbed 24.7% and 14.3%, respectively. High-tech product exports trended upward, rising 7.3% in the first 10 months and outpacing the overall export growth rate.

Overall, despite sluggish global economic growth, rising external challenges and risks, and difficulties faced by some foreign trade enterprises, China's commitment to high-level opening-up remains unchanged. Favorable conditions supporting foreign trade growth remain substantial, and the resilience of China's foreign trade will continue to be evident. Looking ahead, China will remain committed to expanding high-level opening-up and promoting trade with countries around the world on the basis of mutual benefit and win-win cooperation. We will stabilize the fundamentals of foreign trade, assist enterprises facing significant challenges, advance the integrated development of domestic and foreign trade, and ensure the sector's steady development. Thank you.

CCTV:

Accelerating the cultivation of new growth drivers and promoting the optimization and upgrading of the economic structure is conducive to promoting economic development. What achievements have been made this year in cultivating new growth drivers and optimizing the economic structure? Thank you.

Fu Linghui:

Thank you for your question. Structural adjustment and the cultivation of new growth drivers are important elements in the process of high-quality development. Since the 18th CPC National Congress, China's economy has shifted from a stage of high-speed growth to a stage of high-quality development, characterized by changes in the pace of growth, structural optimization, and the transformation of growth drivers. In recent years, we have remained steadfast in our commitment to high-quality development, advancing the transformation of growth models and economic restructuring. Amid slowing growth in traditional industries, demand in areas such as the digital economy and platform economy has continued to expand. The rapid development of emerging industries and the clear momentum of industrial upgrading have provided strong support for stable economic performance. Based on this year's performance, China has achieved positive results in economic restructuring and cultivating new growth drivers. This is primarily evident in the following areas:

First, market demand has recovered and improved, while new demand continues to expand. From the perspective of consumption, driven by technological progress and the transformation of consumption concepts, new business forms, models and scenarios have continuously expanded. The consumption of digital, green and intelligent products has grown rapidly, and service consumption has steadily expanded. From January to October, online retail sales of physical goods accounted for 25.2% of total retail sales, up 0.2 percentage point from the January-September period. Retail sales of energy-efficiency home appliances and new energy vehicles continued to grow rapidly. Demand for smart home appliances and systems has continued to expand. Retail sales of cultural, sports and recreational services, as well as tourism consulting and rental services, have maintained double-digit growth. On the investment front, effective investment has expanded by focusing on key areas and weak links. High-tech investment is growing rapidly, with continued expansion in fields such as new energy, new materials and artificial intelligence, signaling a steady improvement in the quality and efficiency of investment. From January to October, investment in the aircraft, aerospace vehicles and equipment manufacturing industries increased 19.7% year on year, while investment in the information service industry grew 32.7%. On the export front, as China's industrial and technological capabilities improve, exports of electromechanical products and high-tech products are expanding, playing a key role in bolstering foreign trade. From January to October, exports of China's electromechanical products accounted for 60.7% of China's total export value.

Second, industrial upgrading shows clear momentum, with advanced manufacturing and modern services making up a growing share of the economy. The manufacturing sector is steadily moving up the value chain, and equipment manufacturing has become a key pillar supporting industrial production. From January to October, the added value of equipment manufacturers above designated size increased by 9.5% year on year, accounting for 36.1% of the total added value of industrial enterprises above designated size, and contributing 58.7% to the growth of added value of industrial enterprises above designated size. As the service sector increasingly integrates with advanced manufacturing, modern services are demonstrating strong development momentum. In the first three quarters of this year, the combined added value of information transmission software and information technology services, leasing and business services accounted for 16.3% of the tertiary industry, 0.8 percentage point higher than the same period last year.

Third, emerging industries continue to grow and expand, playing an increasingly leading and supporting role. The digital economy is developing rapidly, and the green and low-carbon transition is continuously deepening. Artificial intelligence is empowering industrial development, and industries such as digital manufacturing and intelligent manufacturing are growing stronger. All of these are injecting new momentum into economic development. In the first 10 months, the added value of digital industry manufacturers above designated size increased by 9.5% year on year, while the added value of intelligent equipment manufacturing and electronic components and equipment manufacturing rose by 11.1% and 12.3%, respectively. It should also be noted that new energy, new materials, aerospace and the low-altitude economy have huge development potential, while quantum technology, bio-manufacturing and embodied intelligence have broad development prospects. These sectors are expected to become emerging pillar industries in the future, strongly supporting the development and growth of new momentum.

Overall, China's economic restructuring is steadily advancing, although there are growing pains in the transformation from old growth drivers into new ones. However, from the perspective of future development, new quality productive forces are emerging, new growth drivers are continuously growing and the trend of high-quality economic development is positive. In the next stage, we must adhere to high-quality development, further promote the integrated development of technological innovation and industrial innovation, continuously optimize the economic structure, cultivate and expand new quality productive forces, and promote effective qualitative improvements and reasonable quantitative growth. Thank you.

Market News International:

China's consumer price index (CPI) rose 0.2% year on year in October, slightly higher than expectations. How does the NBS interpret the recent trends in CPI data? And does this suggest that deflationary pressure on the economy is beginning to ease going forward? Thank you.

Fu Linghui:

Thank you for your questions. Price is an issue of wide concern. There were positive signs in consumer prices in October, mainly reflected in both month-on-month and year-on-year growth.

The CPI rose 0.2% in October from a year earlier, which was 0.1 percentage point higher than the previous month. This CPI increase was mainly driven by strong consumer demand and the increase of industrial consumer goods prices during the National Day and Mid-Autumn Festival holidays. First, strong holiday travel demand pushed up transportation and accommodation prices In October, service prices rose by 0.2% month on month, contributing 0.07 percentage point to the month-on-month increase in CPI. Among them, hotel accommodation, air tickets and tourism prices rose by 8.6%, 4.5% and 2.5% month on month, respectively. Second, growing demand for holiday dining led to a rise in food prices. In October, food prices rose by 0.3% month on month. Among them, prices of fresh vegetables, mutton, fresh fruit, shrimp and crabs, and beef increased between 0.5% and 4.3% month on month. Third, the prices of industrial consumer goods rose month on month. In October, the prices of industrial consumer goods excluding energy rose by 0.3% month on month, contributing 0.07 percentage point to the month-on-month CPI increase.

From a year-on-year perspective, the CPI in October went up by 0.2% year on year, while in the previous month it was down by 0.3%. The core CPI, excluding food and energy, rose by 1.2% year on year, 0.2 percentage point higher than the previous month, marking the sixth consecutive month of acceleration in the pace of growth. The year-on-year change in CPI shifted from a decline to an increase, primarily driven by improvements in the domestic market supply and demand relationship, as well as the recovery in service prices and industrial consumer goods prices. First, the rise in service prices has widened. The combined National Day and Mid-Autumn Festival holidays, along with increased spending on tourism, culture and sports, have driven up service prices. In October, service prices went up by 0.8% year on year, which was 0.2 percentage point higher than the previous month. Among these, the prices of air tickets and hotels rose significantly. Due to the upgrading trends of household consumption, and rising demand for high-quality social services, service prices have also climbed. In October, the prices of medical services and domestic services both maintained a slight upward trend. Second, the prices of industrial consumer goods increased steadily. China has effectively implemented special measures to boost consumption, and has regulated disorderly competition among enterprises in accordance with laws and regulations, which have driven up the prices of industrial consumer goods. In October, the prices of industrial consumer goods excluding energy rose by 2% year on year, marking six consecutive months of increases. Among them, the prices of household appliances, durable entertainment consumer goods and daily household sundries increased by between 2.4% and 5%, and the decline in the prices of fuel-powered cars narrowed to 2.3%. Third, the downward pressure on food and energy prices has decreased. China's sufficient grain supply and declining international energy prices have led to lower domestic food and energy prices this year, which has had a significant impact on the CPI. In October, the decline in food and energy prices both narrowed, reducing the downward pressure on the CPI. In October, food and energy prices fell by 2.9% and 2.4% year on year, respectively. These declines were 1.5 percentage points and 0.3 percentage point narrower than in the previous month, respectively. In addition, the rise in international gold prices was transmitted domestically, also contributing to the CPI rebound.

Overall, supported by measures to promote a reasonable price rebound, the CPI showed positive changes in October. However, market demand remains insufficient, keeping overall prices low. In the next stage, we will continue expanding domestic demand, further the construction of a unified national market, optimize the market competition environment, advance capacity management in key industries, improve supply-demand relations and promote a reasonable price recovery. Thank you.

Jiupai News:

We are now in the homestretch to achieve this year's economic and social development goals. Based on data from the first 10 months, can this year's economic development targets be smoothly reached? Thank you.

Fu Linghui:

Thank you for your question. Since the beginning of this year, amid complex changes in the international environment, growing external headwinds, a domestic market characterized by strong supply and weak demand, and persistently low price levels, various regions and departments, under the strong leadership of the CPC Central Committee, have accelerated the implementation of more proactive and effective macro policies, furthered the construction of a unified national market, advanced reform and opening up, and strengthened innovation-driven development. The national economy has withstood pressure and achieved overall stability while also ensuring progress. Looking forward to the next stage, although the economic performance still faces multiple risks and challenges, the core conditions supporting the long-term positive growth of China's economy remain firmly in place. With macro policies continuing to take effect, market space gradually expanding, and new quality productive forces being cultivated and strengthened, many of the conditions for achieving this year's targets are favorable.

First, the economy has maintained stable overall performance. As reflected in the four major macroeconomic indicators, the economy has maintained a stable trajectory, laying a solid foundation for achieving this year's targets. Economic growth has been relatively rapid. In the first three quarters, GDP grew by 5.2% year on year, ranking among the top of the world's major economies. From January to October, the added value of industrial enterprises above designated size and the service industry production index increased by 6.1% and 5.7% year on year, respectively, maintaining rapid growth. Employment and prices have remained generally stable. In October, the surveyed urban unemployment rate continued to decline, and the consumer price index turned from a year-on-year decrease to an increase, showing positive changes. A basic equilibrium was maintained in the balance of payments. From January to October, the total imports and exports of goods increased by 3.6% year on year, and foreign exchange reserves remained stable at over $3.3 trillion at the end of October.

Second, the potential of demand has continued to be unleashed. Supported by various measures in the dedicated campaign to boost consumer spending, market sales have steadily increased, with total retail sales of consumer goods in the first 10 months growing 4.3% year on year, outpacing the previous year. The tourism, cultural and sports sectors and online spending remained strong, injecting new momentum into spending expansion. China has also unswervingly expanded opening up and diversified its markets, demonstrating sustained foreign trade resilience. In the first 10 months, China's imports and exports with ASEAN, the EU and Belt and Road partner countries increased by 9.1%, 4.9% and 5.9%, respectively, all outpacing total goods trade growth. In the next stage, we will strengthen domestic economic circulation while promoting positive interplay between domestic and international economic flows, which will be conducive to expanding market space and further boosting market demand.

Third, new quality productive forces are being fostered and strengthened. The integration of technological innovation and industrial innovation has accelerated. New quality productive forces represented by AI, the digital economy and green economy are being developed at a faster pace, and new industries and new growth drivers are thriving, providing fresh impetus to high-quality economic development. Intelligent product manufacturing has shown strong growth momentum. In the first 10 months, the added value of intelligent unmanned aerial vehicle manufacturing and intelligent on-board equipment manufacturing increased by 54.7% and 25.5% year on year, respectively. Green material production has maintained rapid growth. In the first 10 months, the output of bio-based chemical fibers, and carbon fibers and composite materials rose by 18.9% and 12.8%, respectively.

Fourth, macro policies have continued to take effect. Since the beginning of this year, more proactive and effective macro policies have been implemented; efforts to implement major national strategies and enhance security capacity in key areas, along with large-scale equipment upgrades and consumer goods trade-in programs, have demonstrated tangible effects; and the construction of a unified national market has been further advanced. These efforts have boosted demand and production while improving economic flows, all of which have played an important role in stabilizing the economy. Recently, relevant departments have launched a 500-billion-yuan new-type policy-based financial instrument and activated unused local government debt quotas to enhance local fiscal capacity and expand effective investment. At the same time, measures have been introduced to further stimulate private investment. As existing and newly introduced policies take combined effect, they will fuel the upward momentum of the economy.

It should also be noted that recent positive changes in market supply and demand, gradual improvements in business performance, and the continued accumulation of favorable factors have all contributed to economic growth. In October, the decline in the PPI narrowed for the third consecutive month, and profits of industrial enterprises above designated size from January to September increased by 3.2% year on year, with the growth rate continuing to rise.

In summary, China's economy is underpinned by a solid foundation, multiple strengths, strong resilience and vast potential, with many factors supporting its positive development. In particular, the successful fourth plenary session of the 20th CPC Central Committee, which drew a blueprint for development in the next five years, has greatly boosted the confidence of people of all ethnic groups across the country and injected strong momentum into high-quality development. China's economy is therefore well-positioned to achieve overall stability while also ensuring progress. Thank you.

Shandian News:

How was the recovery of the consumer market in October? What were the growth patterns of spending on physical goods and services? How significant was the contribution of holiday spending to the overall data? Thank you.

Fu Linghui:

Thank you for your questions. Consumer spending is related to both economic development and people's well-being. Since the beginning of this year, various regions and departments have intensified efforts to boost consumer spending, expanded consumer goods trade-in programs, vigorously promoted spending in the digital and service sectors, and encouraged spending on culture and sports, all of which have helped unleash the potential of consumer spending. From January to October, total retail sales of consumer goods increased by 4.3% year on year, and service retail sales grew by 5.3%. In October, driven by the National Day and Mid-Autumn Festival holidays and policies to boost consumer spending, market sales remained generally stable, the spending structure continued to be optimized, and new forms of spending continued to expand. In terms of spending on goods, consumer spending upgrades and the consumer goods trade-in programs contributed to steady sales growth and structural optimization and upgrading.

First, retail sales of certain daily necessities grew quickly. As consumers' quality demands rise, they are paying greater attention to factors such as product quality, grade, and brand, which has driven rapid sales growth for certain essential goods. In October, retail sales of grain, oil and food as well as daily necessities increased by 9.1% and 7.4% year on year, respectively, faster than the growth rate of total retail sales of consumer goods.

Second, the retail sales of some upgraded goods grew rapidly. As the residential consumption pattern upgrades, the demand for cultural, sports and entertainment products has expanded, boosting the sales growth of related goods. In October, retail sales of sports and entertainment goods and cosmetics by units above designated size rose by 10.1% and 9.6% year on year, respectively.

Third, the sales of some trade-in products continued to grow. Consumer goods trade-in policy continued to deliver results, significantly driving sales of related goods. In October, the retail sales of communication equipment and cultural and office supplies by units above the designated size increased by 23.2% and 13.5% year on year, respectively, both significantly higher than the growth rate of retail sales of all goods.

In terms of spending on services, as residential consumption quickly transforms, growing spending on services increasingly becomes an important growth point. With the National Day and this year's Mid-Autumn Festival both falling in the month, spending on services continued to grow rapidly in October. From January to October, the growth rate of retail sales of services rose by 0.1 percentage point compared to the first nine months, and was 0.9 percentage point higher than the growth rate of retail sales of goods in the same 10-month period. In terms of the pattern of spending on services, firstly, cultural and tourism services maintained good momentum for growth, with various regions actively developing new business models. Sports events and the performance market were bustling, and spending on cultural tourism and recreation grew rapidly. From January to October, the retail sales of tourism consultation and rental services, transportation services, and cultural, sports and leisure services all maintained a rapid growth rate of over 10%. Secondly, information services grew rapidly. The demand for services such as digital audio-visual services and online entertainment continued to expand, and the sales of related industries showed a favorable growth trend. From January to October, the retail sales of communication and information services maintained double-digit growth. In addition, with more residents dining out during the holidays, the growth of catering revenue accelerated significantly in October.

From the perspective of new forms of consumption, digital consumption and green consumption continued to grow, strongly promoting the growth of consumption. From January to October, the online retail sales increased by 9.6% year on year, and the retail sales of physical goods increased by 6.3%, higher than the growth rate of total retail sales of consumer goods. And the transaction volume of instant retail and live-streaming e-commerce both maintained double-digit growth. From January to October, the retail sales of new energy vehicles continued to maintain rapid growth. In addition, China is in a critical stage of consumption pattern upgrading, with huge opportunities to explore in cultural tourism, medical health, and other areas. The rapid development of the silver economy and the debut economy also injects new momentum into the expansion of consumption.

Overall, the economy remained stable, pro-consumption policies continued to take effect, and market sales remained stable. However, it should also be noted that household consumption capacity and confidence still need to be improved, and the internal driving forces of boosting consumption still need to be strengthened. In the next stage, we need to follow the decisions and deployments of the CPC Central Committee and the State Council, implement various measures of the special action to boost consumption, actively stabilize employment, promote income growth, vigorously increase high-quality supplies of products and services, continuously optimize the consumption environment, effectively unleash consumption potential, and better promote development and improve people's livelihoods. Thank you.

Jinan Times APP:

Employment is an issue that everyone pays attention to. How was the employment situation in China in October? Thank you.

Fu Linghui:

Thank you for your question. Employment is crucial to people's wellbeing, and the CPC Central Committee attaches great importance to it. Since the beginning of this year, all regions and departments have earnestly implemented policies and measures to ensure high-quality and full employment, and strengthened support for businesses to create and stabilize jobs and help people find new jobs. They are focused on boosting employment among key groups. These efforts have helped maintain overall employment stability. In October, the national urban surveyed unemployment rate continued to decline, and employment for key groups such as rural migrant workers remained stable. The overall stability in employment has not changed, creating favorable conditions for improving people's livelihoods and promoting general stability.

First, the national urban surveyed unemployment rate continued to decline. In terms of monthly changes, due to the influx of graduates into the labor market, the national urban surveyed unemployment rate showed seasonal increases in July and August. As graduates gradually found jobs, the national urban surveyed unemployment rate in September stood at 5.2%, down 0.1 percentage point from the previous month, and continued to decline in October, further dropping to 5.1%.

Second, the unemployment rate among the core working-age population declined. The employment situation for the main labor force aged 30-59 was generally stable. The urban surveyed unemployment rate for the labor force aged 30-59 was 3.8% in October, down 0.1 percentage point from the previous month, and it has remained stable throughout the year.

Third, the unemployment rate of key groups such as rural migrant workers decreased. The urban surveyed unemployment rate for population with non-local agricultural household registration was 4.5% in October, down 0.2 percentage point from the previous month and lower than the national average. With the graduation season ending, youth employment has improved, and the surveyed unemployment rate has continuously declined.

Overcoming increasingly severe external pressures and economic headwinds, China's employment situation remained generally stable. This is the result of the combined effects of factors such as steady economic growth, increased employment in the service industry, and the implementation of employment stabilization policies, which is very difficult to achieve. In the next stage, we will be able to enjoy favorable conditions such as stable economic performance, stronger new quality productive forces, and the effectiveness of employment stabilization policies, however, certain industries and key groups will still face employment pressure and difficulty. We need to focus on promoting stable and healthy economic development, and step up efforts to transform and upgrade traditional industries while cultivating and expanding emerging industries. We should actively increase employment opportunities and ensure the implementation of various employment stabilization policies. We should also strengthen vocational skills training, optimize public employment services, better match the supply and demand in the labor market, and drive high-quality and sufficient employment, ensuring and improving people's livelihoods. Thank you.

ThePaper.cn:

I am particularly concerned about the industrial production. How do you evaluate the performance of industrial production in October, and what were some positive signals? Thank you.

Fu Linghui:

Thank you for your question. This year, despite a complex and challenging international environment and rising competitive pressure in the domestic market, more proactive and effective macro policies have been vigorously implemented to provide greater support for the real economy. Our industrial production has pressed ahead against headwinds, with overall scale continuing to expand and structural adjustment moving toward higher quality. Based on October data, industrial production was basically stable, and progress toward higher-end, more intelligent, and greener development remained steady.

First, industrial production was generally stable. In October, the value added of industrial enterprises above designated size increased by 4.9% year-on-year, maintaining rapid growth and serving as an important force for stabilizing and promoting the economy. Across various industries value added rose in 29 of the 41 major industry categories, accounting for 70.7%. 50.2% of 623 major products maintained output growth. Cumulatively, from January to October, the value added of industrial enterprises above designated size rose 6.1% year-on-year, remaining generally stable compared with the January-September period.

Second, equipment manufacturing provided strong support. In October, the value added of large equipment manufacturing enterprises rose 8% year-on-year, contributing 2.9 percentage points to that of large industrial enterprises as a whole. The cumulative value added of large equipment manufacturing enterprises accounted for 36.1% of that of all large industrial enterprises, showing a prominent supporting role for industrial production. Within equipment manufacturing, value added in the automobile manufacturing industry and the railway, ship, aerospace, and other transport equipment manufacturing industries increased by 16.8% and 15.2%, respectively. Product output of civil steel ships and power generator sets rose by 21.4% and 16.9%, respectively.

Third, digitalization and intelligent transformation progressed steadily. The real economy has been more deeply integrated with digital technologies, and the high-end digital development of industries continues to improve. In October, the value added of large high-tech manufacturing and digital product manufacturing enterprises increased by 7.2% and 6.7%, respectively. Robots are entering various industries.AI is empowering new lifestyles. In October, the value added of intelligent in-vehicle equipment manufacturing rose 28.4%, and the output of industrial robots and integrated circuits increased by 17.9% and 17.7%, respectively.

Fourth, the green transition maintained good momentum. The production of new-energy products continued to expand. In October, output of lithium-ion batteries for vehicles and of new-energy vehicles rose by 30.4% and 19.3%, respectively. The green transition has driven significant growth, with rapid growth in products related to clean energy and green materials. In October, the output of wind turbine generators and bio-based chemical fibers increased by 23.6% and 16.6% respectively.

Fifth, corporate profits improved. Macro policies have begun to take effect and the development of a unified national market has advanced to further, support a faster recovery in profits for industrial enterprises above designated size. From January to September, the profits of industrial enterprises above designated size increased by 3.2% year-on-year, 2.3 percentage points faster compared with the January to August period. Among them, the profits of equipment manufacturing and high-tech manufacturing enterprises above designated size increased by 9.4% and 8.7%, respectively. This played an important role in the recovery of profits of industrial enterprises above designated size.

Overall, with coordinated macro policy taking effect, industrial production maintained steady growth, with transformation and upgrading being steadily promoted. However, it should also be noted that the external environment is complex and challenging, market demand is still insufficient, and some enterprises are under production and operational pressure. In the next stage, we should foster greater synergy between various policies to further expand domestic demand, optimize industrial structure, cultivate new drivers of growth, promote the concurrent improvement of output and quality of the industrial sector, upgrade and revive growth drivers, whilst continuously consolidating the foundation of the real economy. Thank you.

Nanfang Daily, Nanfang Plus:

In October, the month-on-month PPI turned from flat last month to an increase of 0.1%, marking the first monthly rise this year, and the year-on-year decline in PPI being further narrowed. What factors contributed to this change, and what is the outlook for the PPI going forward? Thank you.

Fu Linghui:

Thank you for your questions. Recently, producer prices have shown some positive changes. This year, due to multiple factors, producer prices had generally been declining. As policies to boost domestic demand have taken effect, production capacity governance in key industries has progressed, and new growth drivers have gradually strengthened. Producer prices have shown improvement since August, with the year-on-year decline continuously narrowing. In October, the PPI continued to improve. The producer prices fell 2.1% year-on-year, a narrowing of 0.2 percentage points from the previous month, while month-on-month PPI rose 0.1%, the first monthly increase of the year. 

The month-on-month PPI increase in October was mainly the result of a combination of factors: regulation of market competition order, increased seasonal energy demand, and the pass-through effect of rising international non-ferrous metal prices. The narrowing of the year-on-year decline in October was primarily driven by several factors.

First, measures to stimulate consumption have shown results. This year, we have intensified trade-in programs for consumer goods, and expanded supply of higher-quality consumer products to meet upgrading demand, which has released potential for cultural, sporting, and premium consumption, and supported price increases. In October, prices for handicrafts and ceremonial goods manufacturing rose 18.4% year-on-year, prices for sports ball manufacturing rose 3.3%, and prices for nutritional food manufacturing rose 2.1%.

Second, new growth drivers are becoming stronger. With an accelerated green transition, the new energy industry has developed rapidly and demand for power batteries and energy storage facilities has expanded, driving up related raw material prices. In October, the prices of non-ferrous metal smelting and rolling processing industry increased by 6.8% year-on-year, and the prices of electronic special materials manufacturing increased by 2.3%. As China's industrial upgrading improves and information and communication industry develops well, the demand for transportation equipment such as ships and airplanes is expanding, driving up prices. In October, the prices of microwave communication equipment rose 1.8% year-on-year. The prices of ship and related device manufacturing increased by 0.9% and aircraft manufacturing by 0.5%.

Third, efforts to scale down over capacity in key industries have taken effect. The development of a unified national market has been advanced, the market competition order in key industries has been regulated, which have also driven price improvements in related industries. In October, the year-on-year price declines of photovoltaic equipment and components manufacturing industry, battery manufacturing industry and automobile manufacturing industry narrowed by 1.4, 1.3, and 0.7 percentage points respectively compared with the previous month.

On the whole, the PPI operation has shown positive changes, which is conducive to improving business operations and promoting economic circulation. In the next stage, we will continue to expand domestic demand, unleash consumption potential, increase effective investment, strengthen innovation-driven development, regulate market competition order, advance capacity governance in key industries, and promote a reasonable rebound in industrial product prices. Thank you.

Cover News:

Since the beginning of this year, various regions and departments have introduced a series of measures to stem the downturn and restore stability in the real estate market. What results have been achieved in implementing these policies? How does the spokesperson view the trend of the real estate market in the next phase? Thank you.

Fu Linghui:

Thank you for your questions. The real estate sector has consistently gathered public attention. Since the beginning of this year, various regions and departments have accelerated the introduction and implementation of various supportive policies, actively facilitating the release of demand for rigid and improved housing, which has contributed to halting the decline and promoting stabilization of the real estate market. Statistical data indicates that despite some fluctuations, the policy effects continue to emerge.

First, the decline in commercial housing sales has narrowed. From January to October, the sales area and sales volume of newly built commercial housing nationwide decreased by 6.8% and 9.6% year on year, respectively, with the decline narrowing by 9 and 11.3 percentage points compared to the same period last year, showing improvement compared to the whole of last year.

Second, the reduction of commercial housing inventory has continued to advance. As the real estate policy measures aimed at controlling new supplies and optimizing existing stock continue take effect, the reduction of real estate inventory has steadily advanced since the beginning of this year. By the end of October, the area of commercial housing for sale nationwide stood at 756.06 million square meters, a decrease of 3.22 million square meters from the end of September, marking the eighth consecutive month of decline this year.

Third, the funding situation of real estate developers has improved. Driven by positive factors such as the expansion and enhanced effectiveness of the "white list" projects, the decline in funds in place for real estate developers has narrowed. From January to October, the year-on-year decline in funds in place for real estate developers narrowed by 9.5 and 7.3 percentage points compared to the same period last year and the whole of last year, respectively.

It should be noted that the current real estate market is still in the period of transition between old and new models. This transformation and adjustment requires a certain amount of time. During this process, some indicators will fluctuate, and this should be viewed objectively. In the next stage, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we will implement the guiding principles of the Central Urban Work Conference, actively build a new development model for real estate, adhere to the principles of adopting short-term and long-term policies and addressing both symptoms and root causes, and continue to promote the high-quality development of the real estate market. Thank you.

Zhou Jianshe:

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

Red Star News:

What impact did the continuous rainy weather during the harvest period in some regions have on autumn grain production? What is the expected annual grain output?

Fu Linghui:

Thank you for your questions. Currently, autumn grain production has entered the final stage. Although some regions have been affected by natural disasters such as droughts and floods, the overall situation of autumn grain production in most agricultural areas is good, and a bumper harvest is expected nationwide this year.

First, the sown area has remained stable with a slight increase. This year, China has continued to improve the policy system supporting grain production, implementing a series of policies to strengthen agriculture, benefit farmers, and enrich rural areas, with the focus on protecting and boosting the enthusiasm of both local governments in prioritizing grain production and farmer in growing grains. The sown area for autumn grain has slightly increased on the basis of continuous growth over the years.

Second, the per-unit yield has continued to increase. During this year's autumn grain production period, most agricultural areas in China had well-matched conditions of sunlight, temperature, and rainfall, with overall favorable meteorological conditions. All regions have continued to promote actions to increase the large-scale yields of grain and oil crops per unit, effectively boosting the per-unit yield. Although the Huang-Huai-Hai region encountered continuous rainy weather during the harvest period, the overall impact on the yield remains manageable as the crops have reached their full potential.

Third, the autumn grain output is expected to rise. This year, the planting area for high-yield corn has increased significantly, driving up the autumn grain output. Regionally, most areas have maintained stable output with some growth. Particularly in the three northeastern provinces, as well as Inner Mongolia and Xinjiang, driven by factors such as adjustments in crop planting structure and generally favorable climate conditions, the autumn grain production shows good momentum.

Overall, this year, China's summer grain has achieved stable production and a good harvest; early rice has increased production; and autumn grain production is projected to rise, with another bumper harvest anticipated for the whole year. Thank you.

Zhou Jianshe:

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

Translated and edited by Liu Caiyi, Lin Liyao, Xu Kailin, You Jiaxin, Dong Qingpei, Zhang Jiaqi, Yan Xiaojing, Liu Jianing, Xu Kailin, Huang Shan, Li Huiru, Ma Yujia, Li Xiao, Zhou Jing, Zhang Rui, Liu Sitong, Wang Yanfang, David Ball, Jay Birbeck, and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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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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Speakers:

Mr. Lan Fo'an, minister of finance

Mr. Liao Min, vice minister of finance

Mr. Wang Dongwei, vice minister of finance

Ms. Guo Tingting, vice minister of finance

Chairperson:

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

Date:

Sept. 12, 2025

Shou Xiaoli:

Ladies and gentlemen, good afternoon. 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. Lan Fo'an, minister of finance, to brief you on fiscal reform and development achievements during the 14th Five-Year Plan period, and to answer your questions. Mr. Liao Min, Mr. Wang Dongwei and Ms. Guo Tingting, all vice ministers of finance, are also present today.

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

Lan Fo'an:

Thank you. Good afternoon. It is a great pleasure to speak with you today.

First of all, on behalf of the Ministry of Finance (MOF), I would like to extend my sincere gratitude to you for your long-term interest in and support for the finance work. Next, I will briefly introduce the major achievements in fiscal development during the 14th Five-Year Plan period.

During this period, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, the whole country worked together with determination and made significant achievements in economic and social development. The fiscal departments have resolutely implemented the decisions and arrangements of the CPC Central Committee, adhered to the principle of seeking progress while maintaining stability, and promoted reform and innovation. They withstood risks and challenges, expanded development space, continuously enhanced the national financial strength and improved efficiency. The role of finance as the foundation and an important pillar of national governance became more prominent, providing a solid guarantee for the steady and long-term development of the Party and the country, and strong support for meeting the people's aspirations for a better life. I will now introduce six key aspects of these efforts.

First, the nation's financial strength has been greatly enhanced, concentrating financial resources to accomplish many major tasks. On the one hand, China's income pie has grown significantly. During the 14th Five-Year Plan period, the national general public budget revenue is expected to reach 106 trillion yuan (around $14.89 trillion), an increase of 17 trillion yuan compared to the 13th Five-Year Plan period, with growth of around 19%. The financial strength of local governments has steadily increased. According to data from 2024, the fiscal revenue of 16 provinces has increased by more than 20% compared to 2020; and seven provinces have exceeded 500 billion yuan, while two of these provinces have exceeded 1 trillion yuan. On the other hand, the intensity of expenditure is unprecedented. The national general public budget expenditure is expected to exceed 136 trillion yuan during these five years, an increase of 26 trillion yuan compared to the 13th Five-Year Plan period, and growth of 24%. At the same time, the fiscal structure is continuously improving, with more concrete funding going toward key development projects and initiatives that directly improve people's lives.

Second, fiscal macro control is more proactive and effective, promoting qualitative and effective improvements and reasonable quantitative growth of the economy. During the 14th Five-Year Plan period, fiscal policy became better aligned with the evolving economic landscape — becoming even more proactive, adopting a more strategic and targeted approach, and serving as a key driver for stable and healthy economic growth. On the one hand, counter-cyclical adjustments have been strengthened to smooth out short-term fluctuations. For example, in the second and third quarters of last year, the downward pressure on China's economy increased significantly. The fiscal departments implemented the central government's arrangements and quickly introduced a package of incremental policies at the end of September, effectively promoting economic stabilization and recovery. On the other hand, cross-cyclical adjustments are being coordinated to enhance medium- and long-term development momentum. We are committed to supporting the expansion of domestic demand, assisting the development of new quality productive forces, and promoting the smooth flow of the economic cycle. In the past four years, China's economy has achieved an average growth rate of 5.5%, contributing to 30% of global economic growth.

Third, national finance is more weighted toward people's livelihoods, and the achievements of Chinese modernization are benefiting all people more fairly. In the national fiscal ledger, the heaviest and most substantial part has always been centered around people's livelihoods. During the 14th Five-Year Plan period, the national general public budget allocated 20.5 trillion yuan for education, 19.6 trillion yuan for social security and employment, 10.6 trillion yuan for health care and 4 trillion yuan for housing security. Including expenditures in other fields, fiscal investment in people's livelihoods was nearly 100 trillion yuan. This year, the national finance allocated 100 billion yuan for child care subsidies and 20 billion yuan to gradually implement free preschool education, actively responding to public concerns. It is fair to say that whether in bustling cities or remote villages, from toddlers just learning to speak to elderly people in their later years, people across the country are enjoying more extensive and higher-quality public services and social benefits.

Fourth, China has worked to prevent and defuse risks in key areas, promoting a positive interaction between high-quality development and high-level security. In terms of local government debt, we have strengthened regular supervision and established a "closed-loop" management system for legal debts. For implicit debt, we have orderly resolved existing debt and resolutely curbed the new debt, gradually narrowing the risks. In terms of grassroots financial operations, the central government has allocated nearly 50 trillion yuan in transfer payments to local governments over the past five years, maximizing the utilization of financial resources to ensure the three priorities: the well-being of the public, payment of salaries, and normal government functioning at the primary level. These efforts have ensured overall stability in local government finances. At the same time, we have coordinated efforts to halt the decline in prices and stabilize the real estate market, as well as promote reform and risk mitigation among small- and medium-sized financial institutions.

Fifth, fiscal and taxation reform and management have been advanced in depth to better serve the modernization of the national governance system and governance capacity. In terms of reform, there are three main focuses. First, we have focused on optimizing allocation and improving efficiency, deepening budget system reform, strengthening the coordination of funds, resources, and assets, and enhancing budget performance management to allocate funds effectively and save on unnecessary expenditures. Second, we have focused on efficiency and fairness, optimizing the tax system's structure, standardizing tax preferential policies, strengthening tax regulation, and continuously improving the tax system to ensure compatibility with the economic and social structure. Third, we have focused on mobilizing the enthusiasm of both the central and local governments, establishing an incentive and restraint mechanism for transfer payments to promote high-quality development. We have continuously optimized the division of fiscal powers and expenditure responsibilities between governments, further clarifying "who does what and who pays for it." In terms of management, we have focused on systematic, refined, standardized, and law-based approaches. Starting from the source of budget preparation, we have leveraged the supporting roles of expenditure standards and information technology to integrate fiscal management throughout the entire chain of fund usage, horizontally covering all departments and units, and vertically extending to grassroots levels in cities and counties.

Sixth, we have deepened and expanded international financial cooperation to better serve major-country diplomacy with Chinese characteristics. International financial cooperation is an important part of major-country diplomacy. The MOF is responsible for 26 multilateral and bilateral financial dialogue mechanisms and also serves as a window for 18 international organizations. We have actively practiced the concept of a community with a shared future for humanity, deeply promoted the reform of global economic governance, strengthened dialogue and coordination on macroeconomic policies, promoted the high-quality development of the Belt and Road Initiative, and supported the sound operation of institutions such as the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB). For example, AIIB has been in operation for 10 years, with 110 members and a total financing scale exceeding $60 billion, serving as a model for promoting inclusive development globally. At the same time, we have expanded high-level opening-up, further reducing the overall tariff level to 7.3%. Through deepening pragmatic cooperation in the international financial field, our circle of friends for win-win cooperation has become larger and more stable. This has given developing countries a stronger voice and greater say in global affairs, garnering broad appreciation from the international community, especially from countries in the Global South.

These accomplishments exemplify China's high-quality economic and social development throughout the 14th Five-Year Plan period. They fully reflect the continuous enhancement of national strength and governance capabilities, and are a vivid practice of the Party's innovative theories in the field of finance. We deeply appreciate that the underlying logic sustaining these achievements has remained consistently clear: an unwavering commitment to and strengthening of the Party's overall leadership, a steadfast adherence to putting people first, and a consistent reliance on reform to solve problems.

Looking ahead to the 15th Five-Year Plan period, the MOF will focus on the goal of building China into a great modern socialist country in all respects. It will enhance fiscal macroeconomic control with greater efficiency, deepen fiscal and tax system reforms with greater intensity, and promote fiscal management more scientifically, thus contributing new fiscal strength to the advancement of Chinese modernization.

Next, my colleagues and I would be happy to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Lan. The floor is now open for questions. Please identify the media outlet you represent before asking your questions. Please raise your hand to ask questions.

CCTV:

Mr. Lan just introduced the many new breakthroughs China's fiscal macroeconomic regulation system has achieved during the 14th Five-Year Plan period. Could you provide more details on what new characteristics fiscal macroeconomic regulation has demonstrated in recent years, and what considerations are there moving forward? Thank you.

Lan Fo'an:

Thank you for your questions.

Fiscal policy, as the primary means of macroeconomic regulation, offers the dual advantages of expanding aggregate demand and facilitating targeted structural adjustments. Since the start of the 14th Five-Year Plan, China's fiscal policy has maintained a consistently proactive orientation. It has actively responded to short-term economic fluctuations and strengthened countercyclical adjustments, while keeping anchored to the central task of advancing Chinese modernization and enhancing medium- and long-term development momentum. It has maintained policy continuity and stability while making timely adjustments based on changing macroeconomic conditions, carefully calibrating the strength and pace of interventions, and has become an important force in promoting steady and healthy economic development. It can be generally summarized into the following four characteristics:

First, the intensity has been significantly enhanced. Since the beginning of the 14th Five-Year Plan period, the deficit ratio has increased from 2.7% to 3.8%, and this year it has further risen to 4%. An additional 19.4 trillion yuan has been allocated for local government special bonds. The amount of new tax cuts, fee reductions, tax refunds, and deferred tax payments has exceeded 10 trillion yuan, further expanding the fiscal policy space.

Second, our toolkit has become more diversified. We have comprehensively employed tools such as government bonds, taxes, fiscal subsidies, and special funds to strengthen coordination with other macroeconomic policies and amplify the policy multiplier effect. For example, we have issued and utilized ultra-long-term special treasury bonds for implementing major national strategies, strengthening security capacity in key areas, and supporting large-scale equipment renewals and trade-in programs for old consumer goods. These efforts have supported the comprehensive expansion of domestic demand.

Third, our efforts have become more targeted. We have focused on addressing the bottlenecks and difficulties in economic development, taking measures with far-reaching implications to smooth the economic cycle. For example, we raised the debt ceiling of local governments by 6 trillion yuan to replace existing implicit debts, significantly reducing the debt repayment pressure on local governments. This freed up financial resources for livelihood improvement and development promotion, accomplishing several objectives simultaneously.

Fourth, our timing has become more flexible. We always seize the window of opportunity and implement policies as early as possible. Once we are certain of a policy, we decisively act with ample force to ensure swift execution and early results.

In this process, our understanding of the patterns and principles governing fiscal macroeconomic regulation has gradually deepened. For example, fiscal macroeconomic regulation should maintain overall stability, but when conditions change significantly, we must also adjust promptly and enhance targeted flexibility. For instance, we have placed greater emphasis on promoting microeconomic circulation by supporting local governments in refinancing existing implicit debts, and issuing special bonds to support land reserves and purchase existing commercial housing for conversion into affordable housing. These efforts have smoothed financing channels for local governments and enterprises and removed bottlenecks in economic circulation. Additionally, we have strengthened the coordination of fiscal and monetary policies to achieve policy synergy. This year, a dedicated issuance of 500 billion yuan in special treasury bonds was made to inject capital into large commercial banks, which can be leveraged to add about 6 trillion yuan in credit issuance.

Regarding the second question you raised, I would like to say that our fiscal policies balance risk prevention and development promotion, leaving room for maneuver, so that we will be able to roll out effective fiscal policies in the future. First, the long-term positive trajectory of China's economy remains unchanged, ensuring that the fundamental basis of fiscal operations stays firm and secure. Second, we have gained growing experience in macroeconomic regulation over the years, continuously enriched our policy toolkit, and significantly strengthened our capacity for counter-cyclical and cross-cyclical adjustment. Third, with the further improvement of the institutional mechanism for risk prevention in key areas and the gradual defusion of existing risks, the fiscal response to future challenges will be more firmly grounded and composed. These are the sources of both our confidence and our strengths in conducting fiscal work effectively.

Moving forward, fiscal departments will maintain policy continuity and stability, enhance flexibility and foresight, strengthen forward-looking assessments of economic conditions, prepare policy reserves, take proactive actions, and contribute fiscal strength to high-quality socioeconomic development.

Thank you.

South China Morning Post:

What progress has been made regarding fiscal and tax reforms during the 14th Five-Year Plan period? Looking ahead, how will you strike a balance between the needs of economic development and the goal of stabilizing tax revenue sources during the 15th Five-Year Plan period? And how will the fiscal relationship between the central and local governments be improved? Thank you.

Lan Fo'an:

I'd like to invite Mr. Liao to answer your questions.

Liao Min:

Thank you for your questions. Deepening fiscal and tax system reform is not only an important part of comprehensively deepening reform but also a necessary requirement to ensure the smooth progress of reforms in other areas. During the 14th Five-Year Plan period, fiscal departments have adhered to deepening fiscal and tax system reform as a core work priority, energetically and steadily implementing various reform tasks in an orderly manner. This has accelerated the formation of a more favorable system where budget management is better conceived, the tax system is more refined, and the fiscal system is better-rounded, providing institutional support for Chinese modernization and high-quality development. Next, I will address these three aspects in brief.

First, we have identified revenue, expenditure and management as the three focuses, generating benefits through budget system reform. In terms of revenue, the main focus is on strengthening the overall planning of fiscal resources. Over the past four years, central government transfers from government fund budget and state-owned capital operation budget into the general public budget have reached a level more than 10 times that of the 13th Five-Year Plan period. This has strengthened the central government's fiscal regulation to support socioeconomic development. We have established a nationwide coordination system for pension insurance, with interprovincial transfers reaching 253.3 billion yuan in 2024, ensuring timely and full disbursement of pension payments. On the expenditure side, the main focus has been on optimizing the expenditure structure. We have leveraged zero-based budgeting reform as a key tool, allocating resources where they are needed most according to actual needs and priorities, and ensuring that Party and government agencies practise austerity. Many central departments and provincial governments are actively exploring this approach. Through zero-based budgeting reform, they are dismantling entrenched spending patterns, consolidating special-purpose funds, pooling fragmented funds into unified allocations, and strengthening financial support for major strategic initiatives. In terms of management, the primary focus has been on enhancing the efficiency of fund utilization. We have strengthened dynamic monitoring of the entire chain of fund usage, reinforced budget reviews and performance evaluations, and ensured that spending is effective, with ineffective spending held accountable.

Second, we have focused on three core functions of promoting high-quality development, ensuring social equity and strengthening market unity, adding vitality to the economy and society through tax system reform. For example, in terms of high-quality development, we have fully implemented pilot reforms to convert water resource fees to taxes and advanced the inclusion of volatile organic compounds within the scope of environmental protection tax collection. These efforts have strongly promoted the green transformation of the economy and society. Regarding social equity, we have improved the personal income tax system. In 2022, we introduced a special deduction for child care expenses for children under 3 years old. In 2023, we substantially increased the deduction standards for three items supporting older people and children, benefiting a cumulative total of over 67 million people. Additionally, in terms of market unity, we have standardized tax and fee preferential policies, expedited tax legislation, and established a fair and unified tax environment. Of China's 18 existing tax categories, 14 have already been formally codified through legislation.

Third is regarding fiscal system reform, an area that is also of great concern to the market. We have anchored our efforts around three key goals — clearly defining fiscal powers and responsibilities, improving coordination of financial resources, and promoting balanced regional development — so as to generate new momentum through fiscal reform. We have better leveraged the initiative of both central and local governments, appropriately increased the central government's fiscal powers and expenditure responsibilities, and improved the system for shared fiscal powers to clarify powers and responsibilities. We have accelerated reform of the fiscal system below the provincial level, promoted the downward shift of financial resources, continuously strengthened fiscal capacity at the primary level, and improved the coordination of financial resources. We have also optimized the transfer payment system by establishing and improving mechanisms such as the incentive and constraint mechanisms for transfer payments that promote high quality development, and cross-regional ecological compensation mechanisms. As a result, the management of transfer payments has become more scientific, standardized and effective, significantly promoting the regional balance. Since the 14th Five-Year Plan period (2021-2025), central government's transfer payments to local governments have reached nearly 50 trillion yuan, helping local authorities better implement the decisions and arrangements of the CPC Central Committee.

The Third Plenary Session of the 20th CPC Central Committee made clear arrangements for deepening reform of the fiscal and tax systems. We have formulated an implementation plan and annual work schedules, and are making solid progress in advancing the reform. Going forward, we will introduce each reform measure as soon as conditions are ripe and circumstances allow. Thank you.

Yicai:

During the 14th Five-Year Plan period, finance departments have introduced a series of fiscal and tax policies to expand domestic demand. How has the progress been so far? And what are your considerations for the next stage? Thank you.

Lan Fo'an:

Thank you for your questions.

Strengths unique to large economies are domestic demand-driven growth and capacity for internal circulation. During the 14th Five-Year Plan period, we have earnestly implemented the strategy of expanding domestic demand, taking coordinated actions from both the supply and demand sides and introducing a package of policy measures to promote positive interaction between consumption and investment. These efforts have helped domestic demand play a stronger role as the main driving force and stabilizing anchor of the economy, thereby enhancing the internal momentum for high-quality development. I will now introduce four key aspects of these efforts.

First, strengthening the foundation by expanding consumption demand through ensuring and improving people's livelihoods. We have focused on boosting incomes through employment to enhance consumption capacity. We have implemented a series of policies, including wage subsidies for job retention and employment subsidies. During the 14th Five-Year Plan period, the central government allocated 318.6 billion yuan in employment subsidy funds, an increase of 29% compared with the 13th Five-Year Plan period, and urban areas have seen a cumulative net increase of more than 50 million jobs. We have improved the social security system enhance the support for pension, health care and social assistance, alleviating people's worries and booting their confidence in spending.

Second, tapping into potential by offering substantial financial support to boost consumption. We have strongly supported product trade-ins, and by the end of August this year, the central government had allocated approximately 420 billion yuan, driving sales of various goods to more than 2.9 trillion yuan. Special funds have been arranged to support county-level commercial development and release of rural consumption potential. Since the 14th Five-Year Plan period, retail sales of consumer goods in rural areas have increased by 24%. We have introduced direct subsidies, including child care subsidies and elderly care service subsidies, and provided interest subsidies for personal consumer loans in key areas as well as loans to businesses in related industries, ensuring an efficient allocation of resources to boost consumer spending. Policies on duty-free shops has been improved to encourage more domestic products and trendy brands to expand into global market. Tax-refund policies have been optimized by further lowering the minimum threshold for refunds and increasing the amount of cash refunds, thereby promoting expanded inbound consumption.

Third, addressing bottlenecks by guiding high-quality demand with high-quality supply. We have leveraged special funds to accelerate breakthroughs in core technologies and facilitate the transformation and upgrading of key industries. During the 14th Five-Year Plan period, we supported the market application of more than 30,000 sets of major technical equipment and 190 types of innovative material products. We have stepped up efforts to advance the pilot program for building a modern commercial circulation system, supporting the build of national comprehensive freight hubs in 37 cities. This has boosted resilience and security of logistics supply chains. We have also supported new forms, models and scenarios of consumption to improve convenience for consumers.

Fourth, boosting momentum through multiple measures to expand effective investment. Over the past two years, we have allocated 1.5 trillion yuan in ultra-long-term special treasury bonds to advance major national strategies and building up of security capacity in key areas. Over the past five years, 19.4 trillion yuan of special-purpose bonds for local governments was issued, which supported 150,000 projects. And 3.33 trillion yuan was allocated from the central government budget for investment, which supported the development of infrastructure such as water conservancy and transportation. Government investment has effectively leveraged social investment, helping to improve weak links and enhance the momentum for future development.

China is the world's fastest-growing mega-sized market. The promotion of new industrialization is being accelerated and urbanization is steadily advancing, generating substantial investment demand, while domestic demand holds enormous potential for growth.

Going forward, we will follow the decisions and arrangements of the CPC Central Committee and the State Council, and make full use of fiscal and tax policy tools to stimulate potential consumption, expand productive investment, tap into the enormous potential of domestic demand, and leverage its driving force to fuel high-quality development with renewed impetus and vitality.

Thank you.

Economic Daily:

In the past two years, Chinese technology has been very popular, and a series of technological achievements have attracted attention. Can you introduce what measures the Ministry of Finance has taken in the past few years to support greater self-reliance and strength in science and technology, and to better transform technological achievements into productivity? Thank you.

Lan Fo'an:

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

Wang Dongwei:

Thank you for your question. Chinese modernization relies on the support of technological modernization, and achieving high-quality development depends on fostering new drivers through sci-tech innovation. The national finance coordinates the use of various policy instruments to vigorously promote greater self-reliance and strength in science and technology, and to promote the integrated development of sci-tech innovation and industrial innovation.

First, we "added fuel to the fire" in terms of funding input. During the 14th Five-Year Plan period, national fiscal expenditure on science and technology is projected to reach 5.5 trillion yuan, an increase of 34% over the 13th Five-Year Plan period. Funds are primarily directed towards basic research, applied basic research and national strategic science and technology tasks. Among them, cumulative investment in basic research will reach 730 billion yuan, with an average annual growth of 12.3%. Fiscal investment has driven rapid growth in R&D investment across society, with investment intensity increasing from 2.41% at the end of the 13th Five-Year Plan period to 2.68% in 2024. The scale of R&D investment remains the second largest in the world.

Second, we delegated power and loosened restrictions in the use of funds. In recent years, we have been exploring the management model of science and technology funding. The general direction is to adapt to the general laws of scientific and technological innovation, granting scientists a greater say in deciding on technology roadmaps, funding allocation, and resource deployment. For example, in basic research projects, we implemented a "contract system" where the project leader decides on the use of funds. At the same time, we have been continuously improving supervision methods, conducting performance evaluations, and enhancing the efficiency of science and technology funding expenditures.

Third, we built platforms and bridges for the transformation of technological achievements. The role of scientific and technological innovation and the value of scientific research achievements are ultimately reflected in real-world productivity. During the 14th Five-Year Plan period, we have continuously adjusted and improved relevant policies, granting researchers ownership or long-term use rights over their scientific and technological output to fully share the benefits of the transformation of scientific and technological achievements. We have innovated the government procurement system, using government-initiated demand to guide and support product innovation and promotion. We have also implemented the first (set) and the first batch of insurance compensation policies to promote the iteration and upgrading of innovative products. The implementation of these policies has greatly supported the faster transition of innovations from the laboratory, turning samples into products and forming industries.

Fourth, we empowered enterprises and reduced their burdens to strengthen their role as the main body of innovation. Whether it is the original innovation "from 0 to 1" or the industrial implementation "from 1 to 100," enterprises play an irreplaceable role. We have introduced a series of fiscal and tax policies to help enterprises reduce costs, expand applications and upgrade and transform. For example, since the 14th Five-Year Plan period, we have implemented fiscal reward and subsidy policies for innovative SMEs that use special and sophisticated technologies to produce novel and unique products, supporting the cultivation of 14,600 "little giant" enterprises. New tax and fee reductions for technological innovation and advanced manufacturing have cumulatively reached 3.6 trillion yuan. Government financing guarantees have cumulatively supported over 300,000 innovative SMEs in obtaining approximately 800 billion yuan in loans, with the average guarantee fee rate for guaranteed enterprises falling below 1%.

Next, we will continue to increase fiscal support, focus on improving the efficiency of technological investment, better implement the innovation-driven development strategy and accelerate the building of a scientifically and technologically nation. Thank you.

Dazhong Daily:

In recent years, the finance department has introduced many policies to support education, and recently made key strides in promoting free preschool education. What progress has been made in supporting high-quality educational development? Thank you.

Lan Fo'an:

I would like to invite Ms. Guo to answer this question.

Guo Tingting:

Thank you for your question.

During the 14th Five-Year Plan period, national fiscal investment has continued to increase, supporting the establishment of the world's largest education system and driving high-quality development of the sector. The main achievements are as follows:

First, the scale of investment has steadily increased and the level of education for all people has continuously improved. As of the end of 2024, the proportion of national fiscal education expenditure to GDP has remained above 4% for more than 10 consecutive years. During the 14th Five-Year Plan period, national fiscal education expenditure is expected to exceed 25 trillion yuan, an increase of about 38% compared to the 13th Five-Year Plan period. The accessibility of education in China at all levels now either matches or surpasses the standards of middle and high-income countries. By 2024, the consolidation rate of compulsory education reached 95.9%, and the gross enrollment rate of higher education exceeded 60%. The average years of education for the working-age population reached 11.21 years, an increase of 0.41 years compared to the end of the 13th Five-Year Plan.

Second, the expenditure structure has been further optimized and key areas of education have been consolidated and improved. It is mainly embodied in three priorities. The first priority is to guarantee compulsory education. During the 14th Five-Year Plan period, the central government has arranged 1.1 trillion yuan in transfer payments. This has driven local governments to continuously increase investment in compulsory education. More than half of the budgetary spending on education are used for compulsory education, effectively ensuring the high-quality and balanced development of compulsory education. The second priority is to tilt towards the central and western regions. More than 80% of the central budget's transfer payments for education are allocated to the central and western regions. This has supported these regions to significantly improve teaching conditions and quality. The third priority is to support the development of a high-quality professional teaching team, increase funding guarantees and implement national-level training programs, as well as teacher quality improvement initiatives for vocational colleges and the targeted teacher training plan. In 2024, 86% of full-time teachers in compulsory education have a bachelor's degree or above, an increase of about 12 percentage points compared with the end of the 13th Five-Year Plan period.

Third, the policy for subsidizing students with financial difficulties has been adjusted and improved. The equity and accessibility of education have been further enhanced. During the 14th Five-Year Plan period, the central government allocates about 130 billion yuan each year to provide government scholarships and grants to students at all stages, benefiting about 150 million students. For four consecutive years, the policy of waiving interest and deferring principal repayment for government-subsidized student loans has been implemented. Last year, we significantly increased the standards and quotas of government scholarships and grants, and raised the cap and reduced the interest rates of government-subsidized student loans. This is the most intensive and extensive adjustment in recent years, benefiting 34 million students, allowing them to study without worry.

Fourth, the quality and efficiency of investment have been significantly enhanced, and the potential of education has been fully unlocked. Fiscal investment takes into account both "hardware" and "software" investments, and promotes the improvement of school-running conditions and the enhancement of education quality in a coordinated manner. In terms of improving school-running conditions, we have coordinated various funding resources to support the construction and expansion of necessary school buildings, updated teaching, research and training equipment and increased IT application in education. Currently, the campus network access rate across the country has reached 100%. In terms of improving teaching quality, we have carried out first-class discipline cultivation, supported the establishment of 14 national high-level talent training centers in mathematics, physics, chemistry, and biology, accelerated efforts to develop world-class universities and leading disciplines with Chinese features, and improved the training of homegrown talent. Every year, the number of college graduates in science, technology, engineering, and mathematics (STEM) majors in China exceeds 5 million, ranking first in the world. At the same time, we have promoted the development of high-level vocational colleges and majors with Chinese characteristics, explored the establishment of a differentiated per-student funding system for vocational education based on broad professional categories, and determined funding standards by category and grade considering factors such as the school-running costs of each professional category and the needs of economic and social development, so as to promote the close alignment of professional programs with industrial structure. Currently, in sectors such as modern manufacturing, over 70% of new frontline workers come from vocational schools.

The report to the 20th National Congress of the CPC proposed that by 2035, China will become a leading country in education. The ministry will continue to strengthen investment in education, further ensuring basic needs, addressing shortcomings, promoting fairness, and improving quality, to better meet the people's expectations from "having access to education" to "receiving high-quality education."

Thank you.

Reuters:

I would like to ask, during the 14th Five-Year Plan period, how did fiscal policy supports economic growth while controlling government debt levels? Additionally, after the policy of allocating 10 trillion yuan to replace local government hidden debt was launched last year, what is the current situation of local government hidden debt? Also, what is the progress of the rectification of local financing platforms? Finally, given the current downward pressure on the economy, how will fiscal policies ensure the achievement of this year's growth targets? Thank you.

Lan Fo'an:

You have asked a question that is of great concern to all parties. In the fourth quarter of last year, following the decisions and deployments of the CPC Central Committee and the State Council, we launched a package of measures to tackle debt risks. Overall, the various measures have taken effect as planned and continue to deliver results. As of the end of August this year, the one-time increase of 6 trillion yuan in special debt quota has seen a cumulative allocation of 4 trillion yuan. After the debt swap in various regions, the average interest cost of debt has been reduced by more than 2.5 percentage points, saving over 450 billion yuan in interest expenses. Since the beginning of this year, 2.78 trillion yuan of new local government special bonds have been issued nationwide, of which 800 billion yuan has been allocated to supplement government fund financial resources, specifically for local government debt reduction.

These series of measures, combined with various policy measures adopted earlier, have driven the gradual reduction of local government debt risks. By the end of 2024,China's total government debts stood at 92.6 trillion yuan, including 34.6 trillion yuan in central government debts, 47.5 trillion yuan in statutory local government debts, and 10.5 trillion yuan in hidden local government debts. The government debt ratio stood at 68.7%. According to the report released by the IMF in April this year, the average government debt ratio of G20 countries is 118.2%, and that of G7 countries is 123.2%. At the same time, our government debt is backed by a substantial amount of high-quality assets. Overall, China's government debt ratio is within a reasonable range, and risks are manageable and under control.

Debt resolution is the means; development is the goal. We have adopted a two-pronged approach to debt resolution and development, effectively promoting a virtuous cycle of economic growth and sound debt management. First, we have strengthened local development momentum. Debt resolution has unblocked funding channels, allowing local governments to free up more financial resources, time, energy and policy space to tackle bottlenecks and obstacles in economic development. Second, we have accelerated the phasing out of local financing platforms. By the end of June 2025, more than 60% of local government financing platforms had completed their exit, meaning the implicit debt associated with over 60% of these platforms has been cleared. The transformation of these platforms is accelerating. Third, we have improved the financial environment. The asset quality of financial institutions has improved, with risks significantly reduced. At the same time, both their willingness and ability to extend credit to the real economy have been significantly enhanced.

During the 15th Five-Year Plan period, we will continue to coordinate development and security, accelerate the establishment of a government debt management mechanism suited to high-quality development, resolve debt issues through development, and promote development through debt resolution. These efforts will provide strong support for steady, long-term economic growth.

First, we will focus on reducing existing debt. We will continue to implement a package of debt resolution measures, issue part of the 2026 local government debt quota in advance, make early use of debt resolution allocations, and take multiple steps to address existing hidden debts.

Second, we will focus on strengthening management. We will strictly manage local government debt ceilings to ensure debt is well‑used, repayable, and sustainable. We will strengthen full lifecycle management of special bonds, covering borrowing, use, oversight and repayment. Additionally, we will promote the integrated management of both implicit and statutory debts and establish a unified long-term regulatory system. We will increase debt information disclosure in accordance with the law to enhance transparency in management.

Third, we will boost efficiency exponentially. We will scientifically arrange the scale and structure of bond issuance, reasonably manage the timing and pace of issuance, ensure funding for major projects and key areas, improve the performance of bond fund utilization, and better leverage the catalytic and multiplier effects of government bonds.

Fourth, we will focus on risk mitigation. We will strengthen risk monitoring and early warning, shifting the focus from post-hoc remediation to proactive prevention. We will improve the management of special bond repayment reserve funds to guard against redemption risks. We will maintain zero tolerance through rigorous oversight and strict accountability at every level. We will strictly enforce lifelong accountability for debt issuance and retroactive investigations of debt problems, and resolutely curb new implicit debt.

Regarding your question on how to ensure this year's economic growth target is met, I have already addressed this in outlining the next steps for fiscal policy, so I won't repeat those details here. Thank you.

The Poster News APP:

The 14th Five-Year Plan period has been a key transition for aligning the consolidation and expansion of poverty alleviation achievements with the promotion of rural revitalization, and it is now drawing to a close. Could you please outline the results of fiscal support in consolidating poverty alleviation gains and advancing rural revitalization during this transition? Thank you.

Lan Fo'an:

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

Wang Dongwei:

Thank you for your question.

Since the 18th CPC National Congress in 2012, the CPC Central Committee with Comrade Xi Jinping at its core mobilized the strength of the entire Party and society in the fight against poverty, and by the end of 2020, achieved a comprehensive victory. This historic achievement resolved the problem of absolute poverty that had plagued China for thousands of years, set a model for global poverty reduction, and won wide acclaim from the international community.

After the victory, the CPC Central Committee established a five-year transition period to link the consolidation and expansion of poverty alleviation gains with rural revitalization, providing continued support to areas and populations lifted out of poverty. The MOF has resolutely implemented the following measures: First, we have maintained consistent and robust policy support throughout the transition period, ensured funding through multiple channels, and effectively prevented any large-scale relapse into poverty. Second, we have focused on stimulating the internal momentum of areas that have shaken off poverty, not only by providing assistance but also by equipping them with the skills needed for self-reliance, thereby supporting sustainable development. Third, we have worked to improve development conditions in areas that have emerged from poverty, adopting a range of measures to advance all-around rural revitalization. Overall, achievements have been made in three key areas.

First, stronger measures have been taken to prevent any relapse into poverty and to solidify the achievements of poverty alleviation. A central government-funded subsidy was established to align with and promote rural revitalization, with allocations increasing from 156.5 billion yuan in 2021 to 177 billion yuan in 2025, totaling 850.5 billion yuan over these five years. This represents an increase of 320 billion yuan compared to the 13th Five-Year Plan period, up 60%. Monitoring and assistance mechanisms have been established and refined to prevent people from lapsing or relapsing into poverty, ensuring risks are steadily mitigated. Formerly impoverished regions have withstood multiple tests, including economic slowdowns and frequent disasters in certain areas, without experiencing large-scale returns to poverty.

Second, the internal driving force for development has grown stronger, and the income of people lifted out of poverty has become more stable. Distinctive and competitive local industries in rural areas have continued to grow. Almost every formerly impoverished county has developed industries with clear characteristics, notable strengths and strong capacities to drive local development. For example, black fungus in Zhashui county, Shaanxi province, daylilies in Yunzhou district, Datong city, Shanxi province, and potatoes in Anding district, Dingxi city, Gansu province, have all become signature products with remarkable success. These industries have established close mechanisms that link the interests of formerly impoverished households, enabling farmers to find employment and increase their incomes, helping rural communities attract and retain talent, and ensuring sustainable development following poverty alleviation. To ensure higher incomes for farmers and greater agricultural output, fiscal support has been provided to expand the coverage and raise the protection levels of agricultural insurance. Full coverage has now been achieved nationwide for insurance programs covering total production costs and incomes for the three major grain crops: rice, wheat and corn. Since the start of the 14th Five-Year Plan period, rural residents' per capita disposable income in formerly impoverished areas has increased by nearly 40%, reaching 17,522 yuan in 2024. For four consecutive years, its annual growth rate has exceeded the national average for per capita disposable income.

Third, public well-being has been further secured, and the foundation for rural revitalization has become stronger. Since the start of the transition period, rural roads in formerly impoverished areas have been gradually improved. The quality and service capacity of the construction, management, maintenance and operation of roads in rural areas has been continuously enhanced. All key counties receiving assistance for rural revitalization now have 5G coverage in every township, opening up major channels for economic development. The burden of medical expenses and other costs has continued to ease, and the livelihood security of people who have been lifted out of poverty has been further reinforced. Renovation of dilapidated rural houses and efforts to ensure safe drinking water have progressed further, and rural infrastructure construction has made significant headway.

Going forward, we will leverage public finance to its fullest potential, provide robust support for completing the transition tasks, and carefully plan ongoing assistance work for the post-transition period. These efforts will ensure that no one is left behind on the journey toward common prosperity. Thank you.

China Securities Journal:

Facing an international landscape marked by intertwined complexities and challenges, deepening international engagement and cooperation in the fiscal and financial fields is an important means for advancing China's high-quality development and high-standard opening up. What achievements has the MOF made in international fiscal and financial cooperation during the 14th Five-Year Plan period? Thank you.

Lan Fo'an:

I'd like to invite Mr. Liao to take this question.

Liao Min:

Thank you for your question. Looking back over the past few years, the MOF has actively engaged in international fiscal and financial cooperation and has fully supported head-of-state diplomacy. Through substantive accomplishments in the fiscal and financial fields, it has effectively opened up new international avenues for China's high-quality development and is playing an increasingly significant role in advancing global sustainable and inclusive growth. I'll outline three areas of progress for you.

First, we have continued to promote reform in global economic governance. We have firmly upheld the international system with the United Nations at its core, promoted governance reforms in multilateral institutions such as the World Bank, and enhanced the voice and representation of developing countries. Working in collaboration with the international community, we have actively contributed to the formulation of G20 rules on sovereign debt management for developing countries. We have actively participated in consultations on the two-pillar approach to international tax rules. We have also supported the improvement of rules on environmental information disclosure, green bond standards and related areas.

Second, we have focused on coordinating international macroeconomic policies. In response to global economic growth and development challenges, we have actively worked to enhance the coordination of international macroeconomic policies through multilateral anchoring mechanisms and bilateral bridge-building initiatives. On the multilateral anchoring front, we have fully leveraged the role of multilateral fiscal and financial dialogue platforms to build greater consensus. We have made substantive headway in advancing the establishment of the Shanghai Cooperation Organization Development Bank. In 2025, as joint chair of the ASEAN+3 financial cooperation mechanism, we led discussions on key fiscal policy issues for the first time. We have made full use of the G20 Finance Ministers and Central Bank Governors Meeting mechanism to safeguard global economic and financial stability. Next year, China will host the Asia-Pacific Economic Cooperation (APEC) forum, and we will work with all members to advance the organization's role in fiscal and financial matters. On the bilateral bridge-building front, we have expanded China's circle of friends and explored new spaces for international cooperation. We have actively engaged in China-U.S. economic and trade consultations and dialogues to manage differences and help stabilize bilateral economic and trade relations. We have leveraged the role of MOF offices for China-U.K., China-Germany, China-France vice prime minister dialogue mechanisms to consolidate and deepen China-Europe economic, fiscal and financial cooperation. Through bilateral fiscal and financial dialogue mechanisms with Russia, Saudi Arabia, Brazil, and others, we have strengthened communication and coordination with developing countries on major international fiscal and financial issues.

Third, we have worked to effectively promote shared development worldwide. We have continuously improved the Belt and Road investment and financing system, optimized infrastructure construction standards, supported the advancement of a number of landmark projects, and incubated many "small and beautiful" livelihood projects. We have also promoted the stable operation of new multilateral development institutions such as the AIIB and the NDB. Take the AIIB as an example: since its establishment in 2015, it has approved and implemented 322 projects, benefiting 38 members both within and outside the region. These projects have resulted in the construction and upgrading of over 51,000 kilometers of transportation infrastructure, improving travel convenience for 41 million people.

Looking ahead, we will remain committed to genuine multilateralism and uphold a global governance approach that emphasizes extensive consultation, joint contributions and shared benefits. We will continue to follow the three principles of mutual respect, peaceful coexistence and win-win cooperation, promoting the development of an open global economy and writing new chapters of mutual benefit and win-win results, and achieving common prosperity. Thank you.

Shou Xiaoli:

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

National Business Daily:

In recent years, financial and accounting supervision has become a key term. Can you tell us what progress has been made in financial and accounting supervision during the 14th Five-Year Plan period? Thank you.

Lan Fo'an:

I'd like to invite Ms. Guo to answer this question.

Guo Tingting:

Thank you for your question. Financial and accounting oversight is an important part of the Party and state supervision system. Since the General Office of the CPC Central Committee and the General Office of the State Council issued the Opinions on Further Strengthening Financial and Accounting Supervision in 2023, all sectors of society have paid closer attention to this work. As the main responsible department, our responsibilities have also grown heavier. In recent years, we have continuously strengthened the systems and mechanisms for financial and accounting oversight, intensified supervision and achieved positive results. This is mainly reflected in the following areas:

First, we have carried out special campaigns to enforce financial and economic discipline, ensuring the effective implementation of the decisions and plans of the CPC Central Committee. This is the most important task of financial and accounting supervision. In recent years, we have focused on implementing proactive fiscal policies, with special attention to the use of additional treasury bonds, local government debt management and tighter oversight of illegal tax rebate incentives. We have strictly investigated and addressed problems as they arise, ensuring that all policies designed to benefit enterprises and the public fully deliver their intended impact.

Second, we are determined to crack down on financial fraud to maintain a healthy, fair and orderly market economy. Financial and accounting information is the universal business language. Its authenticity and quality directly affect the stability of the capital market, the development of business entities, and the vital interests of investors. We have continuously strengthened supervision of the accounting and asset evaluation industries. Over the past two years, we have conducted quality inspections of more than 4,600 accounting firms and nearly 1,500 asset evaluation institutions, strictly investigating and handling financial fraud and accounting deceit. At the same time, we have actively promoted improvements to laws and regulations such as the Accounting Law and the Certified Public Accountants Law, creating a market environment that respects the law, upholds integrity and encourages trustworthy business practices.

Third, we have strengthened regular budget execution oversight to ensure fiscal funds are used in a more standardized, efficient and secure manner. We have improved the integrated budget management system, establishing comprehensive oversight for central departments' budgets and transfer payments. At the same time, we have actively leveraged the local supervision strengths of the MOF's regional offices to continuously tighten budget discipline, strengthen execution, and ensure funds are used in compliance and for maximum effectiveness.

Fourth, we have strengthened coordination and integration between fiscal and accounting oversight and other forms of supervision to build a unified and effective monitoring system. We have systematically advanced fiscal and accounting oversight within the Party and state supervision systems, actively coordinated with disciplinary and inspection agencies, and improved the effectiveness of fiscal and accounting supervision through information sharing and joint action.

Looking ahead, the MOF will fulfill its primary responsibility for fiscal and accounting supervision and further strengthen its authority and effectiveness. We will enhance deterrence and risk prevention and ensure all parties strictly comply with financial and economic discipline. We will work more vigorously to implement the decisions and plans of the CPC Central Committee and more effectively safeguard market order, providing strong support for high-quality socioeconomic development. Thank you.

Shou Xiaoli:

One last question, please.

Beijing Daily:

Mr. Lan just mentioned that the most significant and substantial part of the national financial ledger has always been people's livelihoods. The 14th Five-Year Plan period marked the first five years since China achieved the goal of building a moderately prosperous society in all respects. During this period, people's expectations for a better life have continued to rise. What has the MOF done to ensure and improve people's livelihoods? Thank you.

Lan Fo'an:

Thank you for your questions. The public's well-being is of paramount importance. Enabling people to live happy lives is our top priority. Since the 14th Five-Year Plan period, we have prioritized ensuring and improving people's livelihoods alongside high-quality development. Financial investment in people's livelihoods accounts for more than 70% of the national general public budget expenditure, with more resources flowing directly to our people. In recent years, we have strived to achieve four priorities.

First, we have prioritized greater fairness by strengthening the social safety net, continuously expanding coverage and raising benefit levels. Currently, over 1.07 billion people are enrolled in basic pension insurance, while 1.327 billion participate in basic health insurance. Additionally, more than 45 million people receive basic living assistance. China has established the world's largest and most comprehensive social security system. Not only is the scope of protection expanding, but the level of protection is also improving. During the 14th Five-Year Plan period, the financial subsidy standard for residents' medical insurance rose from 580 yuan per person per year to 700 yuan, while minimum living standards rose approximately 20% in both rural and urban areas. Meanwhile, we have established an innovative rapid allocation mechanism for disaster relief funds. During the 14th Five-Year Plan period, a total of 2.59 trillion yuan was allocated to support disaster relief and facilitate the recovery of production and livelihoods.

Second, we have emphasized greater balance in basic public services between urban and rural areas, as well as across different regions. Policy and resource support for underdeveloped areas has been strengthened. During the 14th Five-Year Plan period, the scale of transfer payments for ensuring equal access to basic public services increased from 1.9 trillion yuan in 2021 to 2.7 trillion yuan in 2025, representing an average annual growth rate of 9.6%. Efforts to shore up weak links in basic public services are accelerating. To date, all of China's more than 500,000 administrative villages have been connected to paved roads. Express delivery coverage has exceeded 95%, tap water accessibility has reached 94%, and the rate of household waste collection and disposal has surpassed 90%. Urban basic public services are continuously improving. For example, we have supported the financing and creation of approximately 7.8 million units of various types of affordable housing and the renovation of 160,000 old residential communities, ensuring urban disadvantaged residents' access to housing.

Third, we have prioritized inclusiveness by promoting the accessibility of public resources such as education and health care. All urban and rural students receiving compulsory education are exempt from tuition and miscellaneous fees and receive free textbooks. Approximately 20 million students from financially disadvantaged families receive living subsidies, while around 13 million students from migrant worker families have had their compulsory education subsidies transferred to their urban schools. With the fall semester just underway, tuition and education fees for the final year of kindergarten have also been waived, a policy expected to benefit 12 million children. More than 80 billion yuan has been allocated to support the development of key clinical specialties and regional medical capabilities. This funding also strengthens the cultivation of multi-tiered health professionals, significantly enhancing the service capacity of medical institutions at all levels. These beneficial policies from the Party have truly delivered tangible benefits to millions of households.

Fourth, we are prioritizing accessibility by creating "circles of happiness," designed to better satisfy diverse livelihood needs right at people's doorsteps. Since the start of the 14th Five-Year Plan period, we have actively advanced the direct settlement of cross-province medical expenses, benefiting 560 million patient visits and saving the public 590 billion yuan in upfront payments. We also aim to explore service models such as home-based elderly care and custodial care services, and support the implementation of child-friendly and elderly-friendly renovations in aging residential communities. We have also supported nearly 50,000 public libraries and museums in offering free access to the public, many of which have become popular photo spots and leisure destinations.

Ensuring people's well-being is an ongoing journey that requires continuous effort for long-term success. During the 15th Five-Year Plan period, we will adopt a people-centered approach by safeguarding and improving livelihoods. Financial resources will be directed toward areas that matter most to the public's aspirations for a better life, while fiscal policies will be concentrated on meeting people's most urgent needs. Thank you.

Shou Xiaoli:

I'd like to thank Mr. Lan, thank all our speakers and thank all the journalists for being here today. This concludes today's press conference. Goodbye, everyone!

Translated and edited by Guo Yiming, Yang Xi, Wang Xingguang, Liu Caiyi, Zhang Yuxin, Yang Chuanli, Xu Kailin, Zhu Bochen, Chen Xinyan, Wang Qian, Zhang Junmian, Liu Sitong, Gong Yingchun, Li Huiru, Huang Shan, Liu Qiang, Zhang Rui, Zhou Jing, David Ball, Jay Birbeck and Tudor Finneran. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Ms. Sun Meijun, minister of the General Administration of Customs (GAC)

Mr. Zhao Zenglian, vice minister of the GAC

Mr. Wang Jun, vice minister of the GAC

Mr. Zhang Baofeng, member of the Party Committee and director general of the General Office of the GAC

Chairperson:

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

Date:

Aug. 25, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today's briefing is part of the series on "high-quality achievements during the 14th Five-Year Plan period." We are delighted to have invited Ms. Sun Meijun, minister of the General Administration of Customs (GAC), to introduce the achievements of customs in safeguarding national security and promoting high-quality development during the 14th Five-Year Plan period and to answer your questions. Also attending today's press conference are: Mr. Zhao Zenglian and Mr. Wang Jun, vice ministers of the GAC; and Mr. Zhang Baofeng, member of the Party Committee and director general of the General Office of the GAC.

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

Sun Meijun:

Hello, Ms. Shou. Hello, members of the media. First, thank you all for your concern, attention, understanding and support for the work related to customs. I'm delighted to speak with you about the work of customs in safeguarding national security and promoting high-quality development during the 14th Five-Year Plan period.

Since the launch of the 14th Five-Year Plan, changes unseen in a century have accelerated, and uncertainties in the external environment have significantly increased. Under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China has achieved major new accomplishments in economic and social development. Customs authorities nationwide have earnestly implemented General Secretary Xi Jinping's important reply to all customs officers stationed at the Khunjerab Pass, faithfully fulfilling the mission of safeguarding the nation's borders and promoting development, carrying forward the spirit of struggle, reforming and innovating, tackling difficulties, focusing on improving regulatory efficiency and service levels, and making significant progress in customs modernization, providing strong support for high-quality development and high-level opening up. The main achievements are as follows:

First, new achievements have been made in safeguarding national border security. We have unswervingly implemented a holistic approach to national security, established an integrated risk prevention and control system covering all aspects, and further consolidated security at the national border. Since the start of the 14th Five-Year Plan, customs have annually supervised 5.2 billion metric tons of imported and exported goods, with a value of 41.5 trillion yuan. Boasting the world's largest volume of supervised goods, the customs supervision work has maintained overall safety and stability. A total of 5.15 million prohibited items related to harmful political content, firearms and explosives have been seized, more than 180,000 cases of over 70 types of infectious diseases have been detected, and more than 200,000 batches of substandard goods have been disposed of, resolutely preventing security risks from entering the nation's borders. We have implemented comprehensive tax administration and levied customs duties in accordance with the law, with total customs tax revenue reaching 9.7 trillion yuan. We have maintained a tough stance against smuggling, investigating and handling a total of 23,000 smuggling criminal cases. Smuggling activities involving key sectors, regions and commodities have been effectively curbed. From the border ports on the Pamir Plateau to the container terminals on the East China Sea coast, all customs officers have faithfully guarded the nation's security and the interests of the people.

Second, new breakthroughs have been made in customs clearance facilitation. Adhering to institutional innovation and technological empowerment, we have comprehensively advanced the development of a smart customs system, and fully realized nationwide integrated customs clearance. The China International Trade Single Window has become a "digital portal" connecting China to global trade. The number of services available via "one-stop online processing" has reached 964 items in 25 categories, basically covering the entire chain and all aspects of cross-border trade. Online and mobile customs clearance services have become the norm. The supervision model for multimodal transport involving road, rail, sea and air transport has enabled "one-time declaration" and "single-document handling" for the entire logistics process. Smart passenger inspection services have been deployed at 80% of aviation ports, allowing passengers to complete customs clearance in a seamless and efficient manner. We have continued to carry out special campaigns to facilitate cross-border trade, significantly improving the business environment at ports.

Third, the construction of open channels and platforms has reached a new level. Since the start of the 14th Five-Year Plan period, China has added and expanded 40 open ports, bringing the total number to 311. This has essentially created a multidimensional, comprehensive network of open ports that connects land, sea and air transportation across the eastern, central and western regions. With "customs connected to the world and goods reaching all directions," economic and cultural exchanges have become broader and closer. China-Europe freight train assembly centers have upgraded from a "point-to-point" model to a "hub-to-hub" network. Comprehensive bonded zones and other special customs supervision areas have emerged as new highlands for opening-up across various regions, accounting for one-fifth of the country's total import and export value while occupying less than 1/20,000 of the country's land area. We are making every effort to complete all preparatory work for the operation of the Hainan Free Trade Port. We have introduced customs supervision measures, completed the acceptance of "second-line ports," launched the smart supervision platform, and will soon release three institutional documents, including the "second-line port" customs declaration specifications, to ensure the official launch on Dec. 18.

Fourth, new progress has been made in promoting high-quality development. We have developed innovative regulatory models for emerging business forms such as cross-border e-commerce, overseas warehouses, and "bonded plus," promoting regional coordinated development, accelerating the growth of new drivers of foreign trade, and making production and supply chains more secure and stable. Exports of the "new three" products accounted for a higher proportion of total trade in 2024, increasing 2.6 times compared to 2020. The sources of imports broadened, with 271 new agricultural and food products from 81 countries and regions gaining access during the 14th Five-Year Plan period. Imports of bulk commodities, advanced equipment and key components have been diversified. The regional import-export structure is better, with the eastern region maintaining stable volume and improving quality, while the central and western regions have gained momentum with an average annual import-export growth of 7.9%. In 2024, the total value of China's goods trade reached 43.8 trillion yuan, ranking first in the world for the eighth consecutive year. From January to July this year, imports and exports grew 3.5% year on year, with exports rising 7.3%, highlighting the strong resilience and vitality of China's foreign trade.

Fifth, international win-win cooperation is creating new opportunities. We firmly uphold the multilateral trading system, oppose unilateralism and counter coercive bullying. Our circle of friends continues to expand, and the path of trade diversification is getting wider and wider. Since the 14th Five-Year Plan period, we have signed 519 cooperation documents with other countries. To serve the high-quality joint construction of the Belt and Road Initiative, we have significantly improved trade security and facilitation. In 2024, China's imports and exports with partner countries reached 22 trillion yuan, accounting for more than half of total trade. Annual growth in imports and exports with emerging markets such as ASEAN, Latin America, Africa and Central Asia exceeded 10%. China has become one of the top three trading partners for 157 countries and regions worldwide. The new advantages of international win-win cooperation have become increasingly prominent, further demonstrating China's responsibility as a major country.

Next, customs offices across the country will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, actively planning a new chapter of high-quality development during the 15th Five-Year Plan period. We will make new contributions to Chinese modernization through improved supervision, enhanced security, greater convenience and stricter anti-smuggling efforts. We will strive to be the border guardians that the Party trusts and that people are satisfied with.

That concludes my introduction. My colleagues and I will now be happy to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Ms. Sun. Now, we will open the floor for questions. Please identify the media outlet you represent before asking your questions.

China Media Group:

We have noticed that in recent years, the GAC has led special actions to promote cross-border trade facilitation for several consecutive years. Could you please introduce the achievements of these special actions? Moreover, in what aspects has the GAC further enhanced the sense of gain for foreign trade enterprises? Thank you.

Sun Meijun:

Thank you for your question. It is an excellent one, and I addressed this point in my previous remarks. Cross-border trade facilitation is an essential requirement for high-level opening-up, a key means to optimize the business environment and respond effectively to external shocks, and an objective requirement to fulfill WTO commitments and uphold the multilateral trading system. During the 14th Five-Year Plan period, the GAC, in collaboration with more than 20 national ministries and commissions, has led annual special actions to facilitate cross-border trade. These initiatives have expanded to 25 cities in 17 provinces. A total of 108 reform and innovation measures have been introduced, aiming to create a more convenient, secure and predictable trade environment. These efforts have yielded remarkable achievements and have been widely welcomed by enterprises. According to a World Bank survey released in April this year, China received the highest rating for customs and trade regulation perceptions among the 53 economies surveyed. Our main tasks focus on several key areas:

First, we have simplified customs clearance procedures and enhanced market competitiveness. We have reduced approvals and streamlined procedures in accordance with the law, implementing 24/7 appointment-based customs clearance. For example, for LCL export cargo, we adopt the principle of pre-shipment inspection, significantly reducing repeated loading and unloading, helping enterprises move quickly and capture market opportunities.

Second, we have optimized the supervision model to speed up cross-border logistics. For example, in the Guangdong-Hong Kong-Macao Greater Bay Area, we introduced the one-stop clearance supervision model, cutting port transfer times from five to seven days to two to three days. A green channel for agricultural product imports has been set up at ports, allowing fresh fruits from neighboring countries such as Thailand and Vietnam to reach Guangzhou in as little as seven hours and Beijing in 30 hours.

Third, connectivity has been strengthened, making economic and trade exchanges more convenient. In terms of hard connectivity, China has advanced the development of major international logistics corridors and improved capacity and quality at key hub ports. In terms of soft connectivity, the national single window for international trade has been linked with the business systems of 30 departments and agencies, offering 964 online services and enabling one-stop processing across all stages of cross-border trade. The platform now has 11 million registered users and processes an average of 26 million declarations per day. China has also expanded international cooperation under the single window framework, achieving interconnectivity with 15 countries and regions, meeting the targets set in the 14th Five-Year Plan on schedule, and conducting information exchanges with multiple countries.

Fourth, institutional innovation has been advanced to support the development of new forms of foreign trade. For example, to meet the needs of industrial transformation and upgrading, China has expanded the catalog of products eligible for bonded maintenance in comprehensive bonded zones. From January to July, the total import and export value of the bonded maintenance sector nationwide increased 8.7% year on year. We have also eliminated the filing requirement for overseas warehouses in cross-border e-commerce and implemented a tax rebate policy under which export tax refunds are processed upon the goods' departure, with final settlement after sales. Cross-border e-commerce continues to grow steadily. Customs authorities and platform enterprises are working together to promote the healthy and well-regulated development of new business models in cross-border e-commerce.

Fifth, services for enterprises have been further refined to help them reduce costs and improve efficiency. We have strengthened joint incentive measures for Authorized Economic Operator (AEO) enterprises with high credit ratings. More than 3,000 AEO enterprises have benefited from preferential and convenient measures such as bank financing guarantees, credit facilities and export credit insurance. China has also achieved AEO mutual recognition with 57 countries and regions, enabling enterprises to enjoy the same level of customs clearance facilitation in those countries.

There is always room for improvement in the business environment. Customs will continue to work with relevant departments to continue building a first-rate business environment at the port that is market-oriented, law-based, and internationalized. We will pursue openness to gain new advantages, promote facilitation to expand markets, and rely on the rule of law to provide strong support for high-quality development and high-standard opening-up.

Thank you.

The Paper.cn:

We have learned that since the opening of the China-Laos Railway, some ports in Yunnan and other regions have leveraged the advantages of combined rail and road connectivity, with annual cargo throughput reaching nearly 10 million tons. We would like to learn more about the development of port infrastructure nationwide during the 14th Five-Year Plan period. Could you please share more details? Thank you.

Sun Meijun:

Thank you for your question. I would like to invite my colleague, Mr. Zhang, to respond.

Zhang Baofeng:

Ports serve as the gateways through which China opens up to the outside world. The government has consistently attached great importance to port construction and development. As part of the 102 major national projects in the 14th Five-Year Plan, specific projects were dedicated to expanding capacity and enhancing quality at border ports. As the leading authority for port operations, the GAC works with other ministries and local governments to coordinate development and security, continuously promoting high-quality port development. The main features of port development during the 14th Five-Year Plan period can be summarized as follows.

First, the port layout has continued to be optimized. As Ms. Sun just mentioned, during the 14th Five-Year Plan period, in line with the country's regional strategies and the needs of opening-up, we have added and expanded 40 ports of entry. As of now, there are 311 ports of entry across the country, including coastal, inland and border ports. For example, there are now 125 water transport ports, handling more than 90% of the nation's port freight volume. There are also 85 air transport ports, distributed across the country, forming an aviation network that quickly connects different regions to the world. There are also 101 land ports, which serve as important channels for connectivity with neighboring countries. With the peak summer travel season underway, many self-driving tourists are choosing border ports such as Horgos or Erenhot to travel abroad. Currently, 28 border ports are able to provide self-driving travel services. Overall, China's port system — characterized by coordinated development across the eastern, central and western regions and the integration of sea, land and air transport — has been steadily improving. This is the first key feature.

Second, smart port construction has accelerated. We have launched smart port development pilot programs at 63 ports nationwide, with encouraging initial results. For example, at Ganqimaodu Port in Inner Mongolia, an unmanned cross-border transport channel has been established, enabling automated supervision throughout the entire customs clearance process. At Xiamen Airport, a digital coordinated system for customs clearance and logistics has been implemented. At Qingdao Seaport, container inspections are now conducted through cloud-based procedures. As you just mentioned, at the China-Laos Railway port in Yunnan, smart devices have been deployed to achieve cross-border data interconnectivity. An increasing number of ports have adopted intelligent and automated operations, which are now seamlessly integrated with smart customs, smart border inspection and smart maritime systems. This integration has made joint risk prevention and control at ports more precise and effective, while customs clearance has become smoother and more seamless, bringing a stronger sense of convenience for businesses and travelers alike.

Third, the handling capacity of ports has continued to improve. In 2024, total import and export cargo throughput at China's sea and river ports exceeded 4.3 billion tons, representing a 10% increase compared with the end of the 13th Five-Year Plan period. Throughput at airports grew by over 17%, and at land ports by more than 19%. These efficient and well-connected port channels have enabled more "Made-in-China" products to reach global markets faster, while allowing a greater variety of high-quality goods from around the world to enter the Chinese market more swiftly, better serving the needs of people.

Thank you.

Jiupai News:

With increasing international travel and personnel exchanges, the risk of imported epidemics cannot be overlooked. How does customs ensure the health quarantine work at ports? Thank you.

Sun Meijun:

You have raised a very good question, and I will ask my colleague Zhao Zenglian to answer this question.

Zhao Zenglian:

Port health quarantine work is an important part of national public health security and the first line of defense against the import of epidemics at ports.

During the 14th Five-Year Plan period, customs has adhered to the principle of putting people and life first, resolutely strengthening the quarantine work at the border, and mainly carried out the following work:

Epidemic and disease monitoring has become more efficient. A 24/7 epidemic monitoring network has been established, covering more than 220 countries (regions) worldwide. During the 14th Five-Year Plan period, customs has issued 150 warning notices and epidemic announcements, involving 46 infectious diseases, acting as an early warning system for epidemic prevention at ports.

Furthermore, the quarantine work at ports has been carried out more thoroughly. We have developed a precise prevention and control system with targeted measures designed for specific countries, diseases and ports, strengthening joint prevention and control efforts with health, disease control, and other departments. This has created a closed-loop chain extending from overseas locations to points of entry and then onto domestic destinations. Ms. Sun also mentioned earlier that during the 14th Five-Year Plan period, customs has detected 180,000 cases of infectious diseases at ports. Here, I will provide some additional data; We have quarantined over 600 million inbound personnel, conducted health quarantine on 300 million inbound transportation vehicles, and intercepted 5.25 million vectors, preventing the introduction of more than 30 insect-borne infectious diseases.

Third, port prevention and control capabilities have been significantly enhanced. During the 14th Five-Year Plan period, more than 2,100 rapid testing, gene sequencing, and other facilities and equipment have been newly installed at ports nationwide, and more than 80 standards have been newly established, preventing multiple diseases at the same time through comprehensive examination. Advanced techniques such as electronic declaration, intelligent temperature measurement and remote epidemiological investigation have been widely applied. Thirty ports have been evaluated by the World Health Organization (WHO) as International Health Ports, and our port prevention and control capabilities have been comprehensively improved.

Fourth, quarantine related laws and regulations have been improved. A number of important domestic and international laws and regulations, such as China's Frontier Health and Quarantine Law, the WHO International Health Regulations, and the WHO Pandemic Agreement, have been revised and introduced. We have carried out 14,000 legal education activities for priority groups, covering more than 9 million participants. In accordance with the law, we have strictly punished illegal acts such as concealing the epidemic, evading quarantine and forging quarantine documents, with more than 1,300 cases filed for punishment.

Taking this opportunity, we also remind the public through the media that port health quarantine serves as both a strict checkpoint and a vital safeguard for people's health. If any passenger shows symptoms of infectious diseases such as fever at ports, please contact the customs. We have a dedicated green channel through which one can directly reach designated hospitals for timely treatment. So please do not hesitate and cooperate with us. Together, we will build a Healthy China!

Thank you.

Dazhong Daily:

In recent years, we have often seen customs release typical cases of cracking down on smuggling. Everyone detests smuggling crimes that disrupt the normal order of the market economy. May I ask, as the competent authority responsible for combating smuggling, how does the customs maintain a high-pressure stance against this type of crime? Thank you.

Sun Meijun:

Thank you for your question. Smuggling endangers national security and public interest. It disrupts the economy and market order. It is a criminal act that must be eradicated. During the 14th Five-Year Plan period, customs, in collaboration with public security and other relevant departments, has launched special operations, deepened international law enforcement cooperation, and vigorously cracked down on smuggling crimes, effectively safeguarding the border. We investigated 23,000 smuggling crimes with a total value of nearly 480 billion yuan, involving taxes of over 60 billion yuan. Smuggling of key commodities such as foreign waste, endangered species, drugs, and controlled items has been effectively curbed. At the same time, customs has coordinated with the national anti-smuggling office, jointly advancing related work with relevant departments and local governments. We have encouraged wide public participation and built a governance system encompassing crackdown, prevention, regulation and control, achieving significant results in comprehensive anti-smuggling efforts. China Customs has been awarded the Asia Environmental Enforcement Award twice by the United Nations Environment Programme. Next, I will share with you some major campaigns and the results achieved.

First is the "Mission" operation. This is a special operation to crack down on drug smuggling. One gram of drugs is enough to destroy a family, and it is our mission to prevent this from happening. During the 14th Five-Year Plan period, we have filed and investigated 3,032 criminal cases involving the smuggling of drugs into the country, seizing 15.7 tons of various drugs such as methamphetamine and cocaine, resolutely preventing the smuggling of such items into the country.

Another operation is the "Blue Sky", which targets the smuggling of foreign garbage. Some of the containers we seized were filled with waste plastic, used clothes and waste slag, which contained a large amount of germs and harmful substances, affecting people's health and the ecological environment. Through continuous high-pressure crackdowns, the smuggling of foreign garbage has been greatly reduced. The weight of verified solid waste in 2024 decreased by 96% compared with 2020.

Third is "Operation Escort," a joint special operation carried out by the GAC and the Ministry of Public Security to combat the smuggling of duty-free goods from Hainan. As many of you may know, this practice involves unlawfully using duty-free privileges and quotas to purchase duty-free goods and then resell them for profit. Since the launch of the 14th Five-Year Plan, we have carried out special crackdown actions and implemented comprehensive measures, handling related cases with a total value of 5.9 billion yuan. This has created a strong deterrent against these illegal activities, effectively safeguarding the development of the Hainan Free Trade Port.

Fourth is "Operation Mekong Dragon," a joint international law enforcement operation in the Asia-Pacific region initiated by China Customs and Vietnam Customs, focusing on combating drugs and endangered wildlife trafficking. Since the launch of the 14th Five-Year Plan, five consecutive phases of this operation have been conducted, and the number of participating countries and regions has expanded to more than 20. According to reports from participating parties, more than 60 metric tons of various drugs and precursor chemicals and 479 metric tons of endangered wildlife products have been seized. This operation has become a flagship project for international law enforcement cooperation in the Asia-Pacific region.

Fifth is "Operation Demeter," a joint international operation initiated by China Customs under the framework of the World Customs Organization (WCO) to crack down on the smuggling of solid waste. Since the launch of the 14th Five-Year Plan, five consecutive phases of this operation have been conducted. Participating countries and regions have reported the seizure of 35,000 metric tons of smuggled waste. This operation has become a public good for global customs law enforcement cooperation in the field of ecological environment, enhancing global synergy in combating solid waste smuggling.

Just now, journalist friends noticed many typical cases released by the customs. In the future, we will continue to publish typical cases of crackdowns both to explain the law and serve as a warning to others. We will further strengthen targeted crackdowns, deepen comprehensive management of anti-smuggling efforts, consolidate and improve international law enforcement cooperation mechanisms, and resolutely safeguard national security and the interests of the people through more rigorous anti-smuggling measures.

Thank you.

Dingduan News:

In recent years, merchandise from games and movies such as "Black Myth: Wukong" and "Nezha 2," and cultural and creative products represented by Labubu, have been gaining popularity among global consumers. At the same time, some counterfeit and infringing products have also appeared. How has customs strengthened the protection of intellectual property rights (IPR)? Thank you.

Sun Meijun:

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

Wang Jun:

Your question is regarding a topic that has received a lot of attention. As we all know, innovation is the primary driving force behind development and protecting IPR is equal to protecting innovation, and customs' protection of IPR is protecting innovation in the field of opening up. Just now, Ms. Sun mentioned that the "innovation content" of China's exports has become more substantial, which is closely related to customs' role in safeguarding innovation and creativity at entry and exit ports. During the 14th Five-Year Plan period, focusing on IPR protection, customs has mainly carried out the following work:

First, we have cracked down hard on counterfeit products. We focused on areas with frequent infringements, continuously carried out special actions such as the "Longteng Action" for IPR protection, the "Blue Net Action" for postal and express delivery channels, and the "Clean Net Action" for transshipment goods. These special actions have maintained a high-pressure stance against infringements. Cumulatively, 260,000 batches of suspected infringing goods, involving nearly 400 million items, have been seized, effectively curbing the momentum of infringement in the import and export process.

Second, we have offered efficient service. Through enterprise assistance service measures, such as policy outreach by customs chiefs and dedicated enterprise coordinators, we accurately matched the needs of rights holders. By leveraging information technology, rights holders can now handle record filing and apply for confirmation without leaving their homes, greatly enhancing the convenience of rights protection. During the 14th Five-Year Plan period, registrations by new rights holders reached nearly 20,000, and intellectual property records reached almost 100,000, with more and more rights holders benefiting from customs IPR protection.

Third, we have carried out collaborative governance. We have strengthened cooperation with relevant domestic departments, achieving effective coordination between administrative protection and criminal justice. We have deeply engaged in global IPR governance and cooperated with customs from the EU, Russia and other countries. By actively participating in international joint law enforcement actions, we have continuously improved the effectiveness of law enforcement with regard to IPR protection.

Here, I would like to particularly emphasize that the IPR protection by Chinese customs not only serves the cause of building a strong country but also reflects our sense of responsibility as a major country. We have maintained a level playing field for domestic and foreign rights holders alike, protecting both domestic intellectual property rights and the legitimate rights and interests of foreign enterprises in China. We have worked to prevent infringing products from abroad from entering the domestic market, while also combating the exports of such products from within China. For example, regarding Labubu, which you just mentioned and has recently gained global popularity, since the beginning of this year, customs authorities across China have intercepted 1.83 million suspected infringing products, effectively maintaining a fair and healthy market for international trade.

Finally, I would like to take this opportunity to inform all enterprises that by visiting the GAC's official website and clicking on the "Internet + Customs" portal, you can complete registration and filing online. You can also call the 12360 customs hotline for consultation at any time. China Customs will wholeheartedly provide you with efficient and high-quality intellectual property protection services for all cross-border activities.

Thank you.

Shangyou News:

Currently, the concept of green development enjoys popular support. What work has customs done during the 14th Five-Year Plan period to strictly prevent the introduction of infectious animal and plant diseases as well as invasive species, therefore strengthening biosecurity at the national border? Thank you.

Sun Meijun:

Thank you for your question. This is a very good question. I would like to invite Mr. Zhao to answer.

Zhao Zenglian:

This year marks the 20th anniversary of the introduction of the important concept of "lucid waters and lush mountains are invaluable assets." We have resolutely implemented Xi Jinping Thought on Ecological Civilization, earnestly carried out relevant decisions and plans of the CPC Central Committee and the State Council, and firmly safeguarded national biosecurity and ecological security. Since the launch of the 14th Five-Year Plan, relevant work has been further strengthened, which can be summarized in the several aspects:

First, monitoring and early warning for pests and diseases have become more responsive. We have continuously optimized the three-dimensional monitoring network to promptly detect pest and disease risks, ensuring early detection, early warning and early response. In response to major animal and plant diseases and insect pests, such as African swine fever and desert locusts, 140 risk warnings and ban notices were issued in accordance with the law to firmly prevent the introduction of overseas diseases and pests through ports.

Second, quarantine and inspection at ports has become more precise. We have standardized the capacity for animal and plant quarantine at ports. With more than 10,000 advanced facilities and equipment equipped, and 147 front-line rapid testing laboratories put into use, port prevention and control capabilities have been comprehensively enhanced. We have launched a special action to strictly prevent the introduction of invasive species. Intelligent inspection equipment has been installed at the sites to enable the detection of exotic pets such as spiders and beetles without the need for unpacking. During the 14th Five-Year Plan period, more than 64,000 exotic pets have been seized, and 278,000 instances of quarantine pests have been intercepted. Here, I would also like to issue a reminder that keeping exotic pets comes with risks and should not be undertaken lightly.

Furthermore, the prevention and control of zoonotic diseases has been strengthened. We have actively practiced the concept of "One World, One Health," adhered to the principle of preventing animal-to-human diseases through proactive veterinary measures, and front-loaded prevention and control efforts to cut the transmission routes of zoonotic diseases at the source. Since the launch of the 14th Five-Year Plan, customs have detected 11,000 cases of animal diseases in inbound goods, seized more than 1.1 million metric tons of smuggled frozen products, and intercepted nearly 5,000 batches of illegally imported biological products, all of which were returned or destroyed in accordance with the law.

Additionally, cooperation and joint governance has become more efficient. Since the launch of the 14th Five-Year Plan, we have established cooperation mechanisms with 27 countries and regions to jointly prevent the cross-border spread of animal and plant diseases and pests. On the domestic front, we have enhanced communication and cooperation with relevant departments such as agriculture and rural affairs, and forestry and grassland, to jointly safeguard biosecurity and ecological security. We have cracked down hard on quarantine evasion activities. The nation's first criminal case involving the illegal introduction of invasive alien species and the nation's first criminal case involving illegal disposal of imported grain compromising animal and plant quarantine were successfully adjudicated. Over 3,000 activities have been conducted to improve public awareness on national biosecurity, reaching more than 400 million people and continuously promoting public participation.

Here, I would also like to stress that border security is for the benefit of everyone and relies on everyone. I earnestly request that friends from the media join forces in continuing to guide the public to firmly resist the illegal purchase and introduction of alien species and exotic pets, and jointly protect our beautiful homeland.

Thank you.

Elephant News:

Ms. Sun mentioned earlier that special customs supervision areas, as new highlands of opening up, contributed nearly one-fifth of the country's total import and export volume. Could you introduce the efforts by customs in promoting the construction of special supervision areas? Thank you.

Sun Meijun:

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

Wang Jun:

Thank you for your interest in special customs supervision areas. Special customs supervision areas are designated zones approved by the State Council and subject to enclosed management. The customs supervision model can be summarized as "freer access at the first line, regulated access at the second line, and free flow within the areas." There are two reasons why they are "special." First, the policies are favorable. Imports into the areas can enjoy bonded and duty-free treatment with relatively relaxed license and permit requirements, while exports into the areas can enjoy tax rebates. The combined effect of multiple policy dividends has created a powerful catalyst for the development of enterprises. Second, they have comprehensive functions. Within the areas, bonded processing, bonded logistics, bonded testing and bonded maintenance can be carried out. The aggregation of diverse business forms has created a strong engine for the growth of foreign trade. During the 14th Five-Year Plan period, 19 new special customs supervision areas were established, bringing the total to 174. At the same time, the layout has been further optimized, achieving full coverage across all provinces, autonomous regions and municipalities nationwide. Through our commitment to innovative supervision and optimized services, we have steadily developed the special customs supervision areas into a key growth driver for China's opening up. The trade value in 2024 increased by more than 30% compared to 2020. The main achievements can be summarized as the following "four major platforms":

The first is a platform for receiving cross-border industries. The special areas have attracted a large number of international manufacturing giants with advanced technology and high added value, simultaneously driving domestic investment, boosting the surrounding economies and promoting the rapid development of supporting industries. For example, leveraging its special customs supervision areas, Chongqing has built the world's largest laptop manufacturing base. This ecosystem is spearheaded by six internationally renowned brands and supported by a network of more than 2,300 local upstream and downstream enterprises. One out of every three laptops in the world is made in Chongqing.

The second is a key platform for open development. For central and western provinces and municipalities such as Henan, Sichuan and Chongqing, which are neither coastal nor border areas, foreign trade has grown notably in recent years by leveraging their special customs supervision areas. The import and export value of special areas accounts for more than half of their local foreign trade. It can be said that the special customs supervision areas have strongly promoted the formation of a new pattern of opening up featuring links running eastward and westward, across land and over sea.

The third is a platform for cultivating emerging business models. In recent years, new models of business such as testing and maintenance, financial leasing, and futures delivery have thrived in special areas. This has facilitated deep integration between the manufacturing sector and producer services, continuously extended the value chains and industrial chains to the high end, and enhanced the momentum for innovation-driven development.

Fourth, the special customs supervision areas serve as pilot platforms for institutional innovation. Of the 68 customs reform measures from the free trade zone pilot programs promoted by the State Council, 18 originated in special customs supervision areas, highlighting their role as testing grounds for institutional innovation.

The promotion of transformation and upgrading of special customs supervision areas towards diversified functions, high-end industries, trade facilitation, and coordinated management will continue and further contribute to and serve China's high-standard opening up and high-quality development.

Thank you.

21st Century Business Herald:

The quality and safety of import and export commodities are closely related to people's lives. Could you share the specific measures the GAC has taken to ensure the quality and safety of import and export commodities during the 14th Five-Year Plan period? What progress has been achieved so far? Thank you.

Sun Meijun:

Thank you for your questions. Ensuring the quality and safety of import and export commodities is a core responsibility of customs authorities. I'd like to invite Mr. Zhao to answer the questions.

Zhao Zenglian:

Indeed, as you mentioned, the quality and safety of import and export commodities is an issue of great concern to consumers. When goods enter or leave the country, customs authorities strictly control the quality and safety, mainly by focusing on innovating mechanisms, strengthening supervision, ensuring safety and optimizing services. 

First, we have made risk prevention and control more efficient through institutional innovation. We have established a risk prevention, control and monitoring system to ensure the quality and safety of import and export commodities. Acting like an early warning radar, the system continuously tracks risk information related to domestic and foreign commodity quality and safety, and it responds to and consequently disposes of risks the moment they are detected. We have established a commodity quality and safety information sharing mechanism with 35 countries and regions, including the United States, Russia, and the European Union. Domestically, we have set up a collaborative mechanism for handling imported and exported defective products with departments such as market supervision, industry and information technology, and commerce, so as to strengthen the cooperative management of the quality and safety of import and export commodities. 

Second, we have strengthened oversight to ensure greater security at the borders. Since the start of the 14th Five-Year Plan period, the customs has inspected more than 9 million batches of import and export goods and returned over 10,000 batches of substandard mineral products and recycled metals. Illegal foreign garbage was banned from entering China, more than 4,000 batches of solid waste were returned, and 589 criminal cases of smuggling waste were filed and investigated. Comprehensive management and control of dangerous goods has been carried out at ports, with more than 9,000 cases of false reporting or concealment detected and more than 130,000 batches of unqualified dangerous goods identified, effectively safeguarding security at borders. 

Third, we have made people feel more reassured through safe and reliable practices. We closely monitored clothing, home appliances, and baby and children products that are highly relevant to people's life, and detected 12,000 batches of substandard products and 68,000 non-conforming cars, resolutely preventing substandard and unsafe products from entering households.

Fourth, we have optimized services to let foreign trade enterprises enjoy benefits and convenience. We continuously enhanced the capacity and level of policy supply to reduce costs and enhance efficiency for enterprises. By innovating regulatory models, the customs clearance time for imported mineral products and exported lithium batteries has been shortened by more than 80%. Intelligent inspection of imported bulk commodities helped enterprises increase profits by 1.8 billion yuan. We have detected and uncovered 39,000 batches of imported goods with short weight, helping enterprises recover nearly 10 billion yuan in economic losses.

We also carried out campaigns to promote the quality and safety of export products jointly with relevant departments, making sure our exports are high-quality and innovative, thus further boosting the reputation of Made in China products while providing China-chic products with good quality and fine design worldwide.

Thank you.

Shou Xiaoli:

Two more journalists have raised their hands. These will be the last two questions.

Hong Kong Bauhinia Magazine:

Customs have adopted new technologies and equipment in their regulatory work, and we have seen robotic dogs and drones utilized by customs authorities at certain ports. Could you please elaborate on the new technologies applied in customs work? Thank you.

Sun Meijun:

Thank you for your question and your interest in customs work. The robotic dogs and drones you just mentioned are applications as part of our smart customs initiative. In the first year of the 14th Five-Year Plan period, General Secretary Xi Jinping put forward the important concept of "Smart Customs, Smart Borders and Smart Connectivity," pointing out the direction for the modernization of customs work. We have since adhered to the "dual-engine drive" of institutional innovation and technological empowerment to accelerate smart customs development. And now a new form of customs supervision services is taking shape and features networked interconnection, digital perception, intelligent analysis, and automated operations. This has substantially enhanced supervision efficiency and service standards, putting us among the global leaders. As I mentioned earlier, we have launched the online cooperation platform Smart Customs Community Portal, with 142 registered countries and regions, contributing China's solutions to global customs governance. The main characteristics of this aspect are as follows:

First, we have used more intelligent equipment and facilities. Inspection robots and non-intrusive inspection equipment are widely used. Take imported iron ore as an example. We have installed near-infrared spectrometers, high-speed image recognition systems, and automatic sampling robots at the unloading lanes, allowing checks for solid waste and other stuff mixed in while unloading, thus shortening customs clearance time by more than 15 hours on average. You may have also noticed that we deployed H986 container inspection systems and CT inspection equipment for luggage and postal items at ports. Through intelligent image review, false declarations, undeclared goods and prohibited items can be quickly identified.

Second, digital empowerment has become more in-depth. Big data and artificial intelligence have been deeply integrated into all links of customs supervision. For example, in the field of cross-border e-commerce supervision, we have opened up data channels between customs, platform enterprises and payment institutions, realizing intelligent comparison of three key documents—electronic orders, payment records, and logistics manifests. Compliant goods are examined and cleared within seconds, with a maximum speed of processing 85,000 customs declarations per minute, meeting the demand for efficient and optimized customs clearance. Earlier, we also launched a one-stop platform for handling inbound and outbound mails, offering free and convenient online services that have been well-received by users.

Third, risk prevention and control are targeted. We have developed a big data intelligent risk control model that conducts real-time risk identification for each customs declaration across more than 100 dimensions. The system automatically intercepts high-risk declarations, increasing the detection rate by 16 percentage points compared to random inspections. Relevant cases have been included in the World Customs Organization's Revised Kyoto Convention Guidelines.

Fourth, customs clearance services are more efficient. We focus on the needs of enterprises and the expectations of the public, using technology to provide better services. For example, we have introduced a remote video inspection model enabling enterprises to undergo inspections via remote video links as soon as declarations are submitted. This approach has reduced customs clearance waiting times by over 80%,helping enterprises reduce costs and improve efficiency. Additionally, we have implemented electronic declaration, connected temperature monitoring, and image recognition technologies, allowing passengers to undergo seamless and expedited clearance during entry and exit procedures. I believe many travelers have experienced this firsthand.

Throughout the development of smart customs, we have gained a clear understanding of how the deep integration of China's scientific and technological innovation with industrial innovation has provided robust support for this initiative. The extensive scope, long chains, broad coverage, and diverse nature of China's customs supervision operations create a rich array of real-world scenarios ideally suited for the application of smart technologies. During the 15th Five-Year Plan period, we will further strengthen the guiding and supporting role of technology, accelerate the integrated development of smart customs, carry out systematic restructuring of business models, and fully advance the modernization of customs operations. We also hope that our friends from the media will continue to pay attention to customs work, and actively contribute insights and suggestions for the modernization of customs during the 15th Five-Year Plan period.

Thank you.

China News Service:

Since the 14th Five-Year Plan period, facing the complex and fast-changing international economic and trade environment, what work has the customs done in deepening international cooperation and participating in global customs governance? What progress has been made? Thank you.

Sun Meijun:

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

Zhang Baofeng:

As you just mentioned, during the 14th Five-Year Plan period, the global economy and trade situation was both complex and volatile. In relation to this China has continued to widen its door to the outside world., The concept of building a community with a shared future for humanity has resonated in people's hearts. As the frontier of the country's opening up, the customs authorities have prioritized the joint construction of the BRI, actively expanded international cooperation and strived to create a good external environment. Efforts mainly focused on the following aspects:

First, we have further expanded the "circle of friends." We have established 85 new customs cooperation mechanisms with countries participating in the BRI, reaching a total of 138. We have established a customs inspection and quarantine cooperation platform with African and Central and Eastern European countries, helping high-quality products such as African citrus, coffee beans, wild aquatic products, as well as honey, wine, and cosmetics from Central and Eastern Europe enter the Chinese market. We have conducted 204 foreign aid training sessions, involving nearly 7,000 people from 120 countries and regions, sharing China's experience and promoting friendly exchanges in customs regulations, technology, standards, and culture.

Second, we have promoted the "connectivity". We have leveraged the driving role of the meeting mechanisms with the heads of customs of Central Asia countries and ASEAN. This has promoted joint prevention and control of cross-border security risks with neighboring countries, and the rapid clearance of compliant products. We have promoted the alignment of customs rules and standards with major trading partners. The number of mutually recognized high-credit enterprises ranks first in the world. These certified enterprises enjoy benefits such as low inspection rates and expedited customs clearance, achieving "one certification, global recognition".

Third, we have contributed "Chinese solutions." We have jointly established the global smart customs online cooperation platform with the World Customs Organization. Through this platform, customs authorities from the Global South engage in exchanges and mutual learning to promote common development. We have also established the BRICS Smart Customs Center of Excellence. This shares our experience in port epidemic prevention and control. We have actively participated in the revision of the WHO's International Health Regulations and the Pandemic Agreement. Through this we have provided the international community with Chinese wisdom and solutions.

The World Customs Organization has a famous saying, "Borders divide, Customs connect". The more complex and fast changing the international economic and trade situations become, the stronger and deeper the international cooperation and exchange of customs should be. Next, China Customs will further implement the Global Development Initiative, Global Security Initiative, and Global Civilization Initiative proposed by President Xi Jinping. Through this China will participate in the reform of global customs governance, and make more contributions to building a community with a shared future for humanity.

Thank you.

Shou Xiaoli:

Thank you, Ms. Sun Meijun, and thank you to all the speakers and reporters for participating. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Yang Chuanli, Yang Xi, Liu Caiyi, Liu Sitong, Xu Kailin, Zhang Tingting, You Jiaxin, Wang Qian, Gong Yingchun, Huang Shan, Fan Junmei, Ma Jiayu, 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:

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.