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Speakers:

Mr. Li Zhong, vice minister of human resources and social security

Mr. Lu Aihong, spokesperson of the Ministry of Human Resources and Social Security (MOHRSS) and director general of the Policy Research Department of the MOHRSS

Mr. Song Xin, deputy director general of the Employment Promotion Department of the MOHRSS

Chairperson:

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

Date:

Sept. 24, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Li Zhong, vice minister of human resources and social security, to brief you on relevant developments and to take your questions. Also present today are Mr. Lu Aihong, spokesperson of the Ministry of Human Resources and Social Security (MOHRSS) and director general of the Policy Research Department of the MOHRSS; and Mr. Song Xin, deputy director general of the Employment Promotion Department of the MOHRSS.

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

Li Zhong:

Friends from the media, ladies and gentlemen, good afternoon. I am very pleased to attend this press conference. I would like to take this opportunity to extend my gratitude for your continued interest in and support for the developments in the human resources and social security sector.

In advancing Chinese modernization, we prioritize people's wellbeing. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to ensuring and improving people's wellbeing, responding to people's new expectations for a better life, and arranging and promoting a series of major targeted and high value-added reforms to ensure a more complete and lasting sense of fulfillment, happiness and security for our people. In terms of employment, we continue to insist that employment is the most basic component of the people's wellbeing, advocate the employment-first strategy, enrich and develop a proactive employment policy, and improve relevant systems. The average annual number of newly-added urban jobs in China is 13 million, and the number of employed individuals from poverty-stricken backgrounds remains stable at over 30 million, maintaining overall stability in the employment sector. In terms of social security, we have brought the development of the social security system onto a fast track and successfully built the world's largest social security network. We have strengthened the top-level design, and continuously improved the basic old-age insurance, unemployment insurance and work-related injury insurance. We work to see that everyone has access to social security, and the number of insured people has continued to rise. We have steadily increased various social security benefits, continued to expand the scale of fund surplus, and continuously optimized management services. All these have laid a solid foundation for improving the people's wellbeing, economic development and social harmony.

The third plenary session of the 20th CPC Central Committee made systematic plans for further deepening reform comprehensively, improving the people's quality of life, and emphasizing that ensuring and enhancing the people's wellbeing in the course of development is one of the major tasks of Chinese modernization. Focusing on ensuring and improving the people's wellbeing, it clarified a series of major reforms such as improving the employment-first policy and social security system, and gradually raising the statutory retirement age. The MOHRSS will adhere to the people-centered reforms, develop sound mechanisms for promoting high-quality and full employment, and improve the multi-tiered social security system that covers the entire population in urban and rural areas and see that it is fair, unified, reliable, well-regulated, and sustainable. We will ensure the implementation of reforms with relentless perseverance, and make positive contributions to high-quality development.

That is all for my introduction. Now, my colleagues and I are ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Li. The floor is now open for questions. Please state the name of the news organization you represent before asking your question.

China News Service:

Stabilizing and promoting employment has always been a major issue of public concern. What are our current considerations for promoting high-quality and full employment? Thank you.

Li Zhong:

Thank you for your question. Employment is the most basic component to people's well-being. The CPC Central Committee has attached great importance to this matter of wide public concern. The third plenary session of the 20th CPC Central Committee has explicitly prioritized the development of sound mechanisms to promote high-quality and full employment as one of the major reform tasks. We will remain committed to promoting high-quality and full employment, making it a new position and mission for ensuring employment in the new era and new journey. We will implement a principle of promoting self-reliant employment, market-regulated employment, government-backed employment and entrepreneurship, adopting an employment-first strategy and strengthening an employment-first policy. By deepening the reform to the employment mechanism and institution, we are aiming to effectively improve the quality of employment and promote its growth within a reasonable range. To be more specific, our priorities are as follows: 

First, strengthen an employment-first approach. We'll make promoting high-quality and full employment a top priority in economic and social development. To achieve this, we will actively coordinate employment policies with macroeconomic policies, such as fiscal and monetary policies, to better leverage the role of development in boosting employment. While striving to modernize the industrial system, we'll prioritize support to industries and enterprises which are able to create more jobs, and create new employment opportunities in the process of replacing old growth drivers. We'll also step up efforts with creating more job opportunities by adopting key policies, launching major projects and optimizing the allocation of major productive forces.

Second, tackle structural unemployment. In response to the new wave of technological revolution and industrial transformation, we'll establish a mechanism to forecast demand for human resources and enhance surveys on employment posts in order to release catalogs of in-demand occupations and those with labor shortages in a timely manner. By doing so, we'll enhance the farsightedness of the development of human resources. Moreover, we'll strengthen the workforce's capabilities by focusing on education, training and employment in a coordinated manner. To this end, we'll improve the system of lifelong vocational training and further implement an action plan to foster more skilled workers, launching the program to enhance workforce skills for enterprises. 

Third, improving the policy support system for key groups. We'll always prioritize the employment of college graduates and young people, and strengthen fiscal support, tax policy support and financial support. We'll intensify efforts to create more jobs and provide opportunities for young people to work at primary level to cultivate talents, and will enhance the alignment of services on and off campus, thus ensuring the overall stability of youth employment. We'll encourage people to seek jobs both in other places and close to their homes as well as foster labor-service brands and improve the service system for migrant workers, stabilizing the employment of migrant workers from rural areas, especially those being lifted out of poverty. We will smooth the channels for unemployed people and those facing difficulties with employment so they can seek assistance, thus improving mechanisms that offer them support.

Fourth, encourage employment and entrepreneurship. On the one hand, we will improve the public service system for employment and ensure a unified and regulated market system for human resources. By doing so, we're aiming to ensure employment services become more accessible, equitable and specialized. On the other hand, we will improve the system for creating jobs by encouraging business startups, optimizing the support system for business startups that covers training programs, business incubators and other relevant activities. We will optimize a comprehensive package of measures, including policy support, provision of workspaces and resource matching, to enhance the quality of entrepreneurship.

Fifth, create a fair environment for employment. We'll improve labor laws and regulations, enhance labor relation consultations and mediation, and improve social security system, so as to protect the legitimate rights and interests of workers. We will intensify market supervision and regulation, as well as strengthen oversight and enforcement of labor protection laws, in order to address such issues as employment discrimination, wage arrears, lack of employment insurance and illegal layoffs. In this way, we'll ensure channels of social mobility. Thank you. 

Nanfang Daily, Nanfang Plus:

There's concern about employment of college graduates and young people. What measures will be adopted to boost youth employment? Thank you. 

Li Zhong:

It's important to promote youth employment, and I'd like to invite Mr. Song to share more information about the specific measures in this regard. 

Song Xin:

Thank you for your question. The employment of college graduates and other young people is a top priority in promoting employment. This year, the MOHRSS has worked with relevant departments to release a new package of employment policies to develop job opportunities, provide employment services and offer assistance for those facing employment difficulties. Going forward, we'll focus on efforts that offer employment services to unemployed college graduates, and intensify our endeavors to implement policies, facilitate job matching as well as improve abilities, so as to boost youth employment and entrepreneurship.

First, we will establish a real-name work ledger system. This initiative will focus on unemployed new college graduates, registered unemployed youth, and others to comprehensively gather personal information, job-seeking needs, and employment status. Simultaneously, the MOHRSS's website and other platforms have launched job-seeking registration mini-programs. Unemployed graduates can register through these programs and be incorporated into the real-name ledger.

Second, we will implement the "1131" concentrated service initiative. For unemployed youth in the real-name ledger, we will provide at least one policy briefing, one career guidance session, three job recommendations, and one skill training or internship opportunity to promote their swift employment.

Third, we will implement one-on-one assistance for those facing difficulties. For graduates from families living on subsistence allowances and poverty-alleviated households, disabled graduates, and young people facing prolonged unemployment, we will organize paired assistance. We will implement a "one person, one policy" approach, prioritizing guidance services, job recommendations, and training and internships for these individuals.

Fourth, we will conduct a series of targeted recruitment activities. Recently, we launched a special joint recruitment initiative for college graduates in large- and medium-sized cities. Following the National Day holiday, we plan to organize additional services, including the Golden Autumn Recruitment Month. Furthermore, local authorities will carry out a number of specialized, industry-specific, and regional recruitment drives. These efforts are aimed at promoting employment opportunities for college graduates and other young job seekers. Thank you!

CCTV:

At present, the public has many new expectations regarding social security. Could you please explain how reforms in the social security sector will be further deepened? Thank you.

Li Zhong:

Thank you for your question. Let me address this. Social security serves as both a safety net for people's lives and a stabilizer for society. It's a major issue for national governance and stability. Since the 18th CPC National Congress, the construction of China's social security system has accelerated, achieving historic achievements and undergoing historic changes. First, the system has become sounder. We've achieved unified national management of basic old-age insurance funds for enterprise employees and implemented a unified old-age insurance system for urban and rural residents. We've essentially established a multi-tiered social security system. Second, coverage has continued to expand. Enrollment in basic old-age, unemployment, and work-related injury insurance has reached 1.074 billion, 245 million, and 301 million people, respectively. Third, we have steadily improved the level of security and gradually established and refined benefit determination and adjustment mechanisms. Fourth, we have continuously strengthened our security capacity, achieving steady growth in fund revenue, expenditure, and balance. Fifth, we have optimized service quality. We have largely established a five-tier urban-rural management and service network, issued social security cards to 98% of the population, and consistently improved public satisfaction with our services.

Through unremitting efforts, China has accomplished in a few decades what took many countries over a century. We've built the world's largest social security system, which is comprehensive and has distinct Chinese characteristics, laying a solid foundation for improving people's quality of life.

The third plenary session of the 20th CPC Central Committee made important arrangements for improving the social security system. We will continue to deepen reforms, adhering to principles of systematic integration, coordination, and efficiency. Our goal is to promote high-quality, sustainable development of the social security system, providing more comprehensive, reliable, and equitable social security for the public. We will focus on the following five key areas:

First, we will enhance sustainability and strengthen the institutional foundation for stable operation. We will further improve the unified national management of basic old-age insurance funds for enterprise employees and study policy measures to expand the annuity system coverage. Additionally, we will roll out the private pension system nationwide, increase the scale of market-oriented investment and operation of funds, and improve the system for maintaining and increasing the value of social security funds.

Second, we will enhance accessibility and continuously expand social insurance coverage. We will improve social insurance systems for flexible workers, migrant workers, and those in new forms of employment. We'll expand pilot projects on occupational injury insurance for workers in new employment forms, implement policies to remove household registration restrictions for flexible workers' insurance participation, and bring more people under security coverage.

Second, we will enhance security and improve the fund security supervision system. We will further ensure that the principal responsibilities for fund safety risk prevention and control and supervision duties are assumed. We will optimize the prevention and control system, which covers four aspects: policies, services, information and supervision. We will enhance the whole-chain supervision on fund operation, improve abilities in risk prevention and control, and continue to safeguard people's money for elderly care and emergency use.

Fourth, we will increase convenience and continue to optimize the management and service system. We will improve the nationally unified public platform for social insurance services and the one-stop government service working mechanism. We will comprehensively enhance service channels and promote the handling of resident services through a single social security card. 

Fifth, we will strengthen standards and enhance law-based governance. We will improve and revise relevant laws and regulations on social security at the proper time, ensuring the system's unified standards and mandatory limits. We will ensure the implementation of existing laws and regulations, and improve supporting policies and detailed rules for implementation. Thank you. 

Xinhua News Agency:

On Sept. 13, the Standing Committee of the National People's Congress (NPC) released a decision on gradually raising the statutory retirement age, which received widespread attention. What measures will be taken for implementing the decision starting Jan. 1, 2025? Thank you. 

Li Zhong:

On Sept. 13, the 11th session of the 14th NPC Standing Committee adopted the decision on gradually raising the statutory retirement age, specifying the goal, principles, main tasks and guarantee measures for the reform. On Sept. 19, the State Council held a video meeting on mobilizing efforts on gradually raising statutory retirement age, making deployments in this regard. Over the next three months, from now until Jan. 1 of next year, we will work with relevant departments, and earnestly implement the decisions and deployments of the CPC Central Committee and the State Council, adopt a systematic approach, focus on the reform's key points, and work in various aspects to prepare for implementing the reform in a prudent and orderly manner. We will deliver in the following aspects:

First, we will accelerate the process of formulating and improving supporting policies and measures. Based on suggestions from various parties, we have earnestly researched necessary supporting policies and measures, such as those on promoting employment, safeguarding workers' rights and interests, and the retirement of workers in high-altitude areas. We will work with relevant departments to accelerate the formulation of relevant policies and supporting measures. At the same time, we will adhere to the principle of voluntary participation and appropriate flexibility, and work out specific plans, specifying procedures on applying for flexible retirement. 

Second, we will enhance explanation and promotion of reform policies. Through various channels, such as social security service windows and the 12333 hotline, we will provide policy consultation services for workers, explain our considerations behind the policies, and interpret guarantee measures and service procedures, helping workers to better understand the policies. 

Third, we will prepare for various aspects of application processing services. According to the principles and requirements for one-stop government services, we will adjust and improve social security service procedures, enhance information sharing among departments, and streamline and optimize procedures, to facilitate entities and employees to apply for relevant services. 

Thank you. 

China Daily:

The Chinese delegation again achieved outstanding results at the recently concluded 47th WorldSkills Competition. Could you introduce the details? Thank you. 

Li Zhong: 

At the recent 47th WorldSkills Competition, the Chinese delegation achieved outstanding results. For further details, I would like to invite Mr. Lu to brief you. 

Lu Aihong: 

Thank you for your question. The WorldSkills Competition is the most influential global vocational skills event, often called the "Skills Olympics." From Sept. 10 to 15, the 47th WorldSkills Competition took place in Lyon, France, with participants from more than 70 countries and regions. The Chinese delegation sent 68 contestants to compete in all 59 events. This marks China's seventh participation in the competition and its largest delegation to date, participating in the largest number of events. After intense competition, the Chinese delegation won 36 gold medals, nine silver medals, four bronze medals and eight excellence awards, again ranking first in the gold medal tally, total medals and overall team score. Our young skilled workers engaged in exchanges and skill-sharing with contestants from various countries, showcasing exceptional skills and positive spirit, earning widespread acclaim.

The Chinese delegation won awards in 57 events across six categories at the competition. They excelled in their traditional strengths: the team clinched its fifth consecutive win in computer numerical control milling, while also claiming a fourth consecutive title in both masonry and fashion technology. The team also secured third consecutive wins in body repair, electrical installations, electronics and mobile robotics. Breakthroughs were also made in emerging industry events. Notably, in the Industry 4.0 category, the Chinese delegation won gold for the first time and received the Albert Vidal Award for achieving the highest score across all events.

Since joining WorldSkills in 2010, 283 Chinese contestants have participated in the WorldSkills Competition, winning 93 gold medals, 41 silver medals, 28 bronze medals and 71 excellence awards. These contestants have not only brought honor to the country but have also opened up broader growth and development opportunities for themselves. Many of them have dedicated themselves to passing on their skills and becoming role models for young people. They positively guide young workers toward skill-based employment, professional development, and using their talents to serve the country.

The 48th WorldSkills Competition will be held in Shanghai in 2026. We will earnestly implement the decisions and plans of the CPC Central Committee and the State Council, working closely with the Shanghai municipal government and relevant parties to ensure a well-organized event that is innovative and widely impactful. We hope that the media will continue to pay attention to and support this initiative. Thank you.

Farmers' Daily: 

China has nearly 300 million off-farm workers. What measures will be taken to promote their employment? Thank you.

Li Zhong: 

Off-farm workers are a key focus in employment. I'll let Mr. Song answer this question.

Song Xin: 

Thank you for your question. Promoting employment and income for off-farm workers is crucial. In recent years, the human resources and social security authorities have emphasized both out-of-town work and local employment to stabilize employment for off-farm workers and those who have escaped poverty. Currently, there are about 300 million off-farm workers nationwide, including 190 million working outside their hometowns and over 30 million formerly impoverished individuals. Moving forward, we'll actively promote coordinated urban-rural employment and further improve the support system for off-farm worker employment, focusing on four areas:

First, we'll enhance the mechanism for out-of-town work to ensure workers can relocate and maintain stable jobs. We'll improve labor cooperation mechanisms to provide comprehensive services, including job collection, precise matching and efficient placement. We'll also enhance job stabilization services by leveraging off-farm worker service stations in destination areas to achieve stable local employment. Additionally, we're cultivating more distinctive skilled labor brands to help more off-farm workers achieve skill-based employment. Currently, nearly 500 unique skilled labor brands have formed nationwide, with some brands facilitating employment and entrepreneurship for over 1 million people.

Second, we will expand local employment channels to ensure job opportunities and income growth. Currently, finding jobs close to home has become a new choice for an increasing number of migrant workers. We will explore new employment opportunities amid the country's efforts to support the implementation of major national strategies, build up security capacity in key areas, drive large-scale equipment upgrades and promote trade-in programs for consumer goods. In addition, while advancing new urbanization and comprehensive rural revitalization, we will make efforts to enhance employment capacity at the county level. At the same time, we will give full play to the role of employment service stations and gig markets, so as to create more service platforms where enterprises can hire workers nearby and people can find jobs close to home.

Third, we will encourage people to return to their hometowns to start businesses and increase their incomes, so as to boost motivation and vitality. For migrant workers interested in returning to their hometowns to start businesses, we will provide entrepreneurial services and follow up the implementation of supportive policies. Currently, we are conducting a campaign to promote entrepreneurship, with efforts focused on offering policy implementation, information exchange, and resource matchmaking services to those who are returning or moving to the countryside to start businesses.

Fourth, we will enhance efforts to prioritize employment support, helping those most in need and preventing risks. We will always prioritize employment assistance for those lifted out of poverty, and continue to implement actions to prevent them from returning to poverty. This involves the "four priorities," namely: prioritizing outbound employment, prioritizing enterprise recruitment, prioritizing job stability, and prioritizing efforts to help those most in need. Thank you.

CNR:

We know that with the continuous development of the new economy and new forms of business, more and more new occupations are emerging. What are the considerations in actively cultivating and exploring new occupational categories? Thank you.

Li Zhong:

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

Lu Aihong:

Thank you for your question. New occupations, in terms of the Occupational Classification Code of the People's Republic of China, refer to occupations not yet included in the official classification. New occupations have two basic characteristics. First, a significant number of people are already engaged in these roles to support social and economic development; and second, they require relatively independent and mature professional skills.

In 1999, China issued the Occupational Classification Code of the People's Republic of China, which serves as a crucial framework for job classification in the country. It plays a fundamental and guiding role in labor demand forecasting and planning, employment population structure and trends analysis, as well as in vocational education and employment guidance. The classification has been revised twice. The latest edition, published in 2022, categorizes existing occupations into eight groups, including 1,639 occupations.

Due to economic and social development, technological progress, and the adjustment and upgrading of industrial structures, new industries, new forms of business and new models are rapidly developing. As such, new occupations are emerging and continually evolving, and need to be promptly identified and announced. Collecting and publishing new occupations in a timely manner is of great significance. First, it helps promote employment and entrepreneurship. Gathering, regulating and publishing information on new occupations helps to enhance their social recognition and expand employment options for workers. Second, it is conducive to promoting the alignment of talent cultivation with market demand. By announcing new occupations and developing new standards, we provide a basis and reference for vocational education, including majors setting, curriculum design and textbook development, which will enhance the relevance and applicability of skills training. Third, it supports the healthy growth of new business forms. By establishing relevant standards and norms, we will guide the healthy development of new occupations, so as to promote the development of new forms of business in a more standardized and professional way.

We will closely follow new trends in economic and social development, fully mobilize various resources, and actively explore and cultivate new occupational categories. Our focus will be on three areas:

First, we will continue to collect and publish information on new occupations. Our ministry has established a system for releasing information on new occupations. This year, we have published 19 new occupations, including biological engineering technician, oral health technician, industrial internet operation and maintenance personnel, exhibition organizer, cultural and creative product planning and operations conductor, and intelligent manufacturing system operation and maintenance personnel. We will focus on developing new quality productive forces, serving the transformation and upgrading of traditional industries, nurturing and growing emerging industries, and planning the layout of future industries. We will continuously and dynamically adjust the occupational classification system and collect and publish a batch of new occupations each year.

Second, we will accelerate the development of standards and foundational training resources for new occupations. We will fully leverage the role of market entities and rely on leading enterprises, industry organizations and educational institutions to develop standards or evaluation norms for new occupations. At the same time, we will enhance the development of basic training packages and training materials for new occupations.

Third, we will vigorously enhance the capabilities of personnel engaged in new occupations. We will stick to the market and employment orientation and widely carry out training for personnel in new occupations. We will organize the collection and selection of evaluation agencies for new occupations, and systematically carry out self-evaluation by employers and social evaluation. In various vocational skills competitions at all levels, we will actively set up categories for new occupations. Thank you.

The Beijing News: 

Public employment services have always played an important role in employer recruitment and the job-seeking process. What are the plans and measures for optimizing public employment services? Thank you.

Li Zhong: 

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

Song Xin: 

Thank you for your question. Public employment services are an important part of China's basic public services and a key means of stabilizing and expanding employment. Currently, there are more than 4,400 public employment and talent service agencies across the country, serving an average of 110 million people annually. There are over 6,900 odd-jobs markets, serving an average of nearly 300,000 people every day.

The third plenary session of the 20th CPC Central Committee proposed improving the public employment service system. We will continue to strengthen and enhance comprehensive public employment services that cover everyone, span the entire process, radiate across all areas, and are convenient and efficient, providing support for high-quality and full employment.

First, we will improve the system and promote equal access to services. We will eliminate restrictions based on household registration, region and identity, supporting urban and rural workers to enjoy employment services at their place of employment or job hunting. We will improve the service guarantee system for enterprises, providing equal recruitment and employment services to state-owned enterprises, private enterprises and individual business organizations.

Second, we will perfect the system to enhance service accessibility. We will continuously refine public employment service functions and provide targeted career guidance, job placement and other services to various recipients. We will establish convenient employment service stations and odd-jobs markets close to people's homes, create "15-minute service circles," and promote a service model of "big data plus in-person assistance" to push service resources down to the grassroots level.

Third, we will enhance capabilities and promote professional services. We will implement a capacity-building plan for public employment service personnel and build a high-quality team of service personnel with an appropriate structure. At the same time, we will further leverage the role of market-oriented human resource service agencies to expand the supply of specialized services and facilitate effective human resource connections.

Fourth, we will achieve smart services through digital capabilities. We will promote the continuous improvement of integrated provincial-level employment information resource databases and employment information platforms in various regions, make policies and services available online, and improve service efficiency. We will build and utilize a unified national public employment service information platform, promote information networking and data sharing, and support workers in enjoying employment services across various regions. Thank you.

Jinan Daily APP:

In recent years, there has been strong demand for skilled workers in the labor market. What measures will be taken to boost the development of skilled workers? Thank you.

Li Zhong:

Thank you for your question. Skilled workers are a significant force supporting China's manufacturing and innovation. To advance high-quality development and build a modernized industrial system, cultivating a large-scale, well-structured, and high-quality force of skilled workers is of the utmost urgency. In terms of the development of skilled workers, we will prioritize work in the following aspects: 

First, we will give priority to improving skills and build a system of lifelong vocational skills training. We will establish a vocational skills training system centered around enterprises, with vocational schools as the foundation, and combining government promotion with social support. We will focus on key areas such as the digital economy and green economy, as well as key industries such as health care and elderly care, pay close attention to shortages of skilled workers in new growth drivers and new vocations, and guide workers to actively participate in vocational skills training.

Second, we will give priority to the principal role of enterprises and boost the development of enterprises by strengthening the skills of workers. We will foster an enterprise skill ecological chain integrating production, education and evaluation by encouraging leading enterprises to take the lead, industrial chain enterprises to work together, and technical schools to provide training resources. We will promote a new type of apprentice system for enterprises with Chinese characteristics. We will enhance the construction of bases for training highly-skilled personnel and studios for skilled masters, and enhance the basic capabilities of enterprises to cultivate highly-skilled personnel.

Third, we will give priority to the integration of industry and vocational education, and promote the high-quality development of specialized technical education. We will promote a skilled personnel training model integrating industry and vocational education, deepen school-enterprise cooperation, accelerate the development of regional, industrial and other types of technical education alliances and groups, and improve the quality of education. We will dynamically adjust and optimize the provision of specialties to promote the in-depth integration of talent training and industrial development.

Fourth, we will give priority to innovation in mechanisms, and ensure that development channels for skilled personnel are unimpeded. We will thoroughly implement the new eight-level vocational skill rating system, support enterprises to carry out assessments of special-grade senior technicians and chief technicians, and make explorations on promoting the expansion of integrated areas for the career development of highly-skilled personnel and professionals. A wide range of skills competitions will be held.

Fifth, we will give priority to incentives and guarantees, and make skilled employment more attractive. We will dynamically release information on the salaries of skilled personnel, make explorations on establishing category-based guidelines for minimum wages for skilled professionals, guide enterprises to gradually improve the pay and benefits of skilled personnel, and enhance the attractiveness of skilled positions. We will strengthen the commendations and incentives for highly-skilled workers, select and set role models, and create a favorable atmosphere for skilled employment.

Thank you.

Shou Xiaoli:

One last question, please.

National Business Daily:

At present, flexible employment and new forms of employment have become an important method of employment and income growth for workers in China. What measures will be taken to protect the rights and interests of workers in flexible employment and new forms of employment? Thank you.

Li Zhong:

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

Lu Aihong:

Thank you for your question. Flexible employment and new forms of employment are important sources of employment. Strengthening the protection of the rights and interests of workers in flexible employment and new forms of employment is conducive to promoting decent work and high-quality and full employment for workers. In recent years, we have worked with relevant departments to improve systems and mechanisms, promote the implementation of policies, optimize public services, take diverse measures to resolve disputes, and advance the protection of the rights and interests of workers in flexible employment and new forms of employment. Next, we will continue to actively explore ways to improve policies and measures and continuously advance our work in this regard, which mainly includes the following four aspects:

First, we will continue to enhance the quality of employment services. We will implement policies and measures supporting flexible employment through multiple channels, strengthen the regulation of the odd-jobs market, improve services, boost the accessibility of job information for people in flexible employment, and support workers to find employment through multiple channels both online and offline. At the same time, we will improve training measures to support workers in finding employment and enhance their vocational skills. We will take steady steps to strengthen the provision of public services and improve the working and living conditions of workers.

Second, we will strengthen the employment guidance for enterprises. We will strengthen the publicity of laws and policies, as well as administrative guidance and supervision of employment, and continue to promote the implementation of relevant policies and measures. We will promote a series of guidelines for new forms of employment, guide platform enterprises and partner enterprises to sign labor contracts and written agreements with workers in accordance with the law, rationally determine labor remuneration, reasonably arrange working hours, and fairly formulate platform labor rules, so as to continuously enhance enterprise employment in accordance with laws and regulations.

Third, we will optimize and refine the social security system. At present, we have launched trials of occupational injury insurance for people in new forms of employment in seven leading platform enterprises in seven provinces and cities, covering a total of more than 9 million people. On the basis of our summary of these experiences, we will continue to improve relevant policies and expand the scope of the pilot scheme. At the same time, we will take active steps to ensure a smooth channel for people in flexible employment to access old-age insurance in the places where they work, and improve relevant measures, so as to facilitate access to insurance and benefits.

Fourth, we will ensure a smooth channel for labor dispute mediation. We will strengthen coordination with people's mediation and judicial mediation, and carry out one-stop joint mediation services for labor disputes in new forms of employment concerning work remuneration, rest and occupational injuries. At present, over 1,500 mediation organizations have been established nationwide. At the same time, we will also strengthen the joint supervision and inspection of departments, accept reports and complaints from workers in a timely manner, coordinate the handling of relevant conflicts and disputes, investigate and punish illegal activities that infringe upon the rights and interests of workers in accordance with the law, and effectively safeguard the legitimate rights and interests of workers.

Thank you.

Shou Xiaoli:

Thank you Mr. Li, all the speakers and friends from the media. Today's briefing is hereby concluded. 

Translated and edited by Yan Bin, Huang Shan, Gong Yingchun, Liu Sitong, Yang Chuanli, Yuan Fang, Liu Jianing, Wang Yanfang, Xiang Bin, Wang Wei, Yan Xiaoqing, Mi Xingang, Yuan Fang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Pan Gongsheng, governor of the People's Bank of China (PBC)

Mr. Li Yunze, minister of the National Financial Regulatory Administration (NFRA)

Mr. Wu Qing, chairman of the China Securities Regulatory Commission (CSRC)

Chairperson:

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

Date:

Sept. 24, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are glad to have invited Mr. Pan Gongsheng, governor of the People's Bank of China (PBC); Mr. Li Yunze, minister of the National Financial Regulatory Administration (NFRA); and Mr. Wu Qing, chairman of the China Securities Regulatory Commission (CSRC). They will brief you on financial support for high-quality economic development and answer your questions. Now, I'll give the floor to Mr. Pan for his introduction. 

Pan Gongsheng:

Thank you, Ms. Shou. Good morning everyone. It's a pleasure to meet with you all again. I would like to sincerely thank you all for your continued interest in and support for the reforms and developments in the financial sector, as well as the work of the PBC.

This year, the PBC has remained committed to the fundamental goal of serving the real economy through financial services, while maintaining a supportive monetary policy stance. We made several major adjustments to monetary policy in February, May and July.

In terms of overall monetary policy, we have utilized a range of tools, including lowering the reserve requirement ratio (RRR), reducing policy interest rates, and guiding the decline of the loan prime rate (LPR), to foster a favorable monetary and financial environment.

In terms of monetary policy structure, we have focused on key areas of high-quality development, introducing re-lending programs for technological innovation and technical upgrading, while increasing financial support for technological innovation and equipment renewal. We have also reduced the down payment ratio and mortgage rates for home loans, lowered the housing provident fund loan rates, and established a re-lending program for affordable housing, using market-oriented methods to accelerate the reduction of inventory in the commercial housing market.

Regarding monetary policy transmission, we have reformed the way we calculate the quarterly value-added of the financial sector. The previous calculation method, which primarily relied on the growth rates of loans and deposits, has been replaced by an income-based approach. This reform aims to rectify and standardize practices such as manual interest adjustments and idle funds, thereby unlocking the potential of existing but inefficient financial resources, enhancing the effectiveness of fund utilization, and improving the efficiency of monetary policy transmission.

On the exchange rate front, we have upheld the market's decisive role in exchange rate formation, maintained flexibility, guided expectations, and kept the RMB exchange rate stable at a reasonable and balanced level.

The effects of our monetary policy have become increasingly evident. By the end of August, total social financing had grown by 8.1% year on year, and RMB loans had increased by 8.5%, outpacing nominal GDP growth by around 4 percentage points. Meanwhile, financing costs remain at a historic low.

In line with the central government's directives, the PBC will continue to uphold a supportive monetary policy stance, strengthen monetary policy regulation, and enhance precision in its execution to foster a monetary and financial environment conducive to stable economic growth and high-quality development.

I would like to take the opportunity of today's press conference to announce several new policies:

First, we will lower the RRR and policy interest rates, which will drive down market benchmark rates. Second, we will lower mortgage rates on existing home loans and standardize the minimum down payment ratio for mortgages. Third, we will introduce new monetary policy tools to support the stable development of the stock market.

First, lowering the RRR and policy interest rates. We will cut the RRR by 0.5 percentage point in the near term, providing approximately 1 trillion yuan in long-term liquidity to the financial market. Depending on liquidity conditions, we may further reduce the RRR by 0.25 to 0.5 percentage point this year. Additionally, we will lower the central bank's policy interest rate, reducing the seven-day reverse repo rate by 0.2 percentage point — from 1.7% to 1.5%. In addition, we will guide LPR and deposit rates downward in tandem, ensuring the stability of commercial banks' net interest margins.

Second, lowering mortgage rates on existing home loans and standardizing the minimum down payment ratio for mortgages. We will guide commercial banks to reduce interest rates on existing mortgages to a level similar to those of newly issued housing loans, with an expected average reduction of around 0.5 percentage point. The minimum down payment ratio for both first and second homes will be unified, with the nationwide minimum down payment ratio for second homes to be reduced from 25% to 15%. We will increase support for the 300-billion-yuan special refinancing program for affordable housing, launched in May, raising the central bank's funding support ratio from 60% to 100%, strengthening incentives for commercial banks and homebuyers. Additionally, in coordination with the NFRA, we will extend the expiration of two key policy documents — on operational property loans and the 16-point policy plan proposed in 2022 — from the end of this year to the end of 2026.

Third, introducing new monetary policy tools to support the stable development of the stock market. The first is creating a swap facility for securities, funds and insurance companies, enabling eligible ones to obtain liquidity from the central bank through asset pledges. This will significantly enhance their capacity to access funds and increase their stock holdings. The second is creating special re-lending for stock repurchases and shareholding increases, guiding banks to provide loans to listed companies and major shareholders to support these activities.

We will release the relevant policy documents or announcements on the PBC's website in the near future.

That concludes my introduction. Later, I will join Mr. Li and Mr. Wu to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Pan. Now, I'll give the floor to Mr. Li for his introduction.

Li Yunze:

Thank you, and good morning everyone. It's a pleasure to meet you all. First, on behalf of the NFRA, I would like to extend my sincere gratitude to the media for your long-standing support and assistance in our financial regulatory work.

This year, the NFRA has firmly implemented the major decisions of the Central Committee of the Communist Party of China (CPC) and the State Council. We have taken proactive actions, faced difficulties head-on, and coordinated the promotion of three key tasks: preventing risks, strengthening regulation and promoting development. Solid progress has been made in all areas.

On risk prevention, we have concentrated on key areas and steadily advanced risk mitigation efforts, aiming to create a secure and stable financial environment for economic development. In line with the directives of the Central Financial Work Conference, we have actively promoted reforms and risk mitigation for small- and medium-sized financial institutions, preventing risks from spilling over or spreading. Currently, regions with a high concentration of high-risk institutions have formulated concrete reform and risk mitigation plans, which are being implemented prudently under a "one province, one policy" approach. At the same time, we have guided banks and insurance institutions to actively assist in resolving risks related to the real estate sector and local government debt. Currently, China's financial sector, particularly large financial institutions, is operating in a stable and sound manner, with risks under control. As risks associated with the real estate sector, local government debt, and small- and medium-sized financial institutions are gradually being resolved and alleviated, financial risks are steadily receding. We are committed to firmly maintaining the bottom line of preventing systemic financial risks.

In terms of strengthening regulation, we have focused on addressing both the symptoms and root causes of issues. By driving reform, we have tackled tough challenges and fostered compliance through regulatory frameworks, continually enhancing the sector's sustainability. We have guided the banking and insurance sectors to return to their core functions, refocusing on their primary business to achieve differentiated development and complementary strengths. We have advanced the introduction of a new 10-point guideline for the insurance industry, made timely improvements to asset management regulations, and continuously strengthened governance over non-banking institutions. Additionally, we have optimized and reinforced the foundational management of credit, aiming to resolve deep-seated issues that hinder the sustainable and healthy development of the industry. Financial institutions have been encouraged to streamline their operations, strengthen their core competencies, and actively respond to challenges such as narrowing net interest margins and losses from interest rate spreads. By concentrating on preventing substantive risks, we have effectively implemented the due diligence exemption system, while rigorously investigating and penalizing major illegal and non-compliant activities, creating a fair and just market order.

In terms of promoting development, we have focused on eliminating blockages and bottlenecks, improving the adaptability of the economy and finance and increasing financial services for key fields and weak links. We have strengthened financing guarantees for large-scale equipment upgrades and trade-ins of consumer goods and for implementing major national strategies and building security capacity in key areas, and vigorously supported the development of new quality productive forces in accordance with local conditions. As of the end of this August, loans to high-tech sectors as well as medium- and long-term loans to the manufacturing sector have increased by 13.2% and 15.9% year on year, respectively. We have scaled up micro and small loans, and increased support for private enterprises on an equal footing. Inclusive loans to small and micro enterprises and loans to private enterprises have increased by 16.1% and 9.1% year on year, respectively. We have guided insurance institutions to do their best to provide claims services for major accidents and natural disasters such as torrential rain and typhoons, helping people and business entities that are impacted overcome difficulties. In the first eight months of this year, the insurance industry has paid out a total of 1.55 trillion yuan in compensation, a year-on-year increase of 26.1%.

Next, the NFRA will actively strengthen communication with the market and our friends from the media, as well as respond to social concerns in a timely manner. Previously, Mr. Pan has shared with you relevant policy adjustments. I will have a more detailed briefing on the optimization and improvement of relevant regulatory policies in the Q&A session. We will strive to create a stable, transparent and predictable regulatory policy environment, continue effort and support to improve the quality and efficiency of serving the real economy and contribute more financial strength to high-quality development. Thank you.

Shou Xiaoli:

Thank you, Mr. Li. Now, let's give the floor to Mr. Wu for his briefing.

Wu Qing:

Ladies and gentlemen, friends from the media, good morning. First of all, I would like to thank you for your long-term concern and support for the capital market as well as the work done by the CSRC. To implement the guiding principles from the central financial work conference, the State Council in April of this year issued new guidelines for strengthening regulation, forestalling risks and promoting the high-quality development of the capital market. We have conscientiously implemented these policies, jointly formulated a series of supporting documents in coordination with relevant departments as well as have formulated and revised more than 50 institutions and rules, establishing a "1+N" policy system together with the new guidelines. An array of key measures are also under implementation, and initial progress has been achieved in strengthening regulation, forestalling risks and promoting high-quality development of the capital market.

First, the market ecology has been further improved. We have adhered to the principle that oversight must have "teeth and thorns" and be sharp-pointed. The General Office of the State Council has forwarded a guideline issued by the CSRC and five other central departments and ministries on how to further improve the comprehensive punishment and prevention of financial fraud in the capital market. By the end of August, 577 illegal cases in the field of securities and futures have been investigated and handled, especially some major cases such as the ones involving Evergrande Real Estate Group and CNNC Hua Yuan Titanium Dioxide. Working with the Ministry of Finance, we have strictly investigated and penalized the Evergrande Real Estate Group's auditing agency PwC, forming a strong deterrent.

Second, the underlying systems of the capital market are being improved at a faster pace. Institutions and rules for issuance, listing, dividends, reduction of holdings and trading have been optimized. The dividends of listed companies in 2023 reached 2.2 trillion yuan, hitting a record high. We have strengthened the regulation of program trading, further tightened the regulation rules for program trading and have suspended the securities relending business. We have deepened the reform of lowering fee rates for the public offering fund sector and have encouraged financial institutions to put functional construction first.

Third, market functions have been basically maintained. We have conquered many difficulties and have maintained the appropriate rhythm for IPOs and refinancing. The quality and efficiency of the filing-based management of overseas listing have continuously improved. The function of the bond and futures markets have been steadily exerted. In the first eight months of this year, the exchange bond market issued 8.9 trillion yuan of various bonds, maintaining steady growth.

Fourth, the reform and innovation of the capital market have been firmly promoted. We have focused on doing a good job in five areas of finance. A number of policy catalysts such as the sixteen measures for the capital market to serve the high-level development of technology enterprises and the eight new measures for the Science and Technology Innovation Board (STAR) have been issued and implemented. Relevant work to support the development of venture capital investment has been done well. We have made mergers, acquisitions and restructuring play better roles. Nearly 50 major restructuring cases have been disclosed in the market since May of this year, and the market response has been relatively positive.

The third plenary session of the 20th CPC Central Committee made strategic arrangements for further deepening the capital market's reform. The CSRC will adhere to strengthening the foundation, strict regulation and management of the capital market, as well as will promote development and stability through reform, continuously improving the capital market's functions of investment and financing to better serve Chinese modernization. We will focus on three areas: First, we will give more prominence to the enhancement of the inherent stability of the capital market. We will establish a clear orientation of rewarding investors and improve the quality and investment value of listed companies. We will accelerate the reform of the investment side and promote the construction of a policy system for long-term investments. We will issue guidance for promoting the entry of medium and long-term funds into the capital market. We will also further improve the policy toolkit and ensure no systemic risks arise. Second, we will prioritize supporting the recovery and growth of the real economy and the high-quality development of the economy. We will focus on serving key areas such as new quality productive forces, make good use of various capital market tools, such as stocks, bonds and futures, and take multiple measures to activate the merger and acquisition market. We will also issue six measures to promote mergers and acquisitions. At the same time, we will work with all relevant parties to ensure the smooth flow of all sectors including raising funds, investing, managing and withdrawing of private equity and venture capital funds. Third, we will highlight the protection of small and medium-sized investors' legitimate rights and interests. We will resolutely crack down on illegal and irregular activities, such as financial fraud and market manipulation, and at the same time strive to establish more model cases in representative litigation and compensation in advance.

That is all for my introduction. I will continue the discussion with you later. Thank you.

Shou Xiaoli:

Thank you, Mr. Wu. Now, the floor is open for questions. Please state the news organization you represent before asking your question. You may now raise your hands to be called upon.

CCTV:

We know that the PBC has implemented three major monetary policy adjustments this year. As Mr. Pan mentioned in the introduction, the PBC will continue to lower the reserve requirement ratio and policy interest rates in the coming stage. These policies on aggregates will play an important role in stabilizing growth, which people pay great attention to. Could you please give us more details in this regard? Thank you.

Pan Gongsheng:

Aggregates in monetary policy are also attracting great attention from all sectors of society and the market. I have said many times on different occasions that the PBC adheres to an accommodative monetary policy stance, intensifies the strength of monetary policy regulation and enhances the precision of monetary policy regulation. We have employed a combination of various monetary policy tools to support the stable growth of the real economy. In the process of designing monetary policy tool adjustments, the PBC has several important considerations: the first is to support the stable growth of China's economy; the second is about the price, which is also an important consideration in designing monetary policy tools--we must promote a moderate rebound in prices; the third is that we must take into account both support for the growth of the real economy and the health of the banking industry itself--there must be a good balance between the two parties; the fourth is the exchange rate--we must maintain the general stability of the RMB exchange rate at an adaptive, balanced level. Another point is that we pay attention to the coordination between monetary policies and fiscal policies, and support the proactive fiscal policy to work better and achieve results.

In my opening remarks, I mentioned several specific adjustments to macroeconomic policies and monetary aggregate policies. Now I will introduce them in detail.

First, we will lower the reserve requirement ratio (RRR). In February of this year, we cut the RRR by 0.5 percentage points. This time, the RRR is planned to be cut by another 0.5 percentage points, which can provide about 1 trillion yuan of long-term liquidity to the financial market. At present, the weighted average RRR for financial institutions is 7%. Among this, the current RRR for large banks is 8.5%, which will be reduced from 8.5% to 8% after this adjustment. The current RRR for medium-sized banks is 6.5%, which will be reduced from 6.5% to 6% after this adjustment. Rural financial institutions have been implementing a RRR of 5% for a few years now, and this time it will remain the same. After the implementation of the RRR reduction policy, the average RRR of the banking sector is about 6.6%. Compared with the central banks of major economies around the world, we still have room. In terms of the RRR tool, we may further lower it by 0.25-0.5 percentage points within the year, depending on the liquidity situation. 

Second, concerning lowering the policy rate, the interest rate on seven-day reverse repo operations is the major policy rate of the central bank at present. In July, we lowered the seven-day reverse repos rate from 1.8% to 1.7%. This time, it was trimmed by 20 basis points from 1.7% to 1.5%. Under the market-oriented adjustment mechanism on interest rates, the adjustment of the policy interest rate will lead to the adjustment of various market benchmark interest rates. It is expected that after the adjustment of the policy rate, the medium-term lending facility (MLF) interest rate is expected to drop by approximately 0.3 percentage points, and the loan prime rate (LPR) and deposit rate may decrease by 0.2 to 0.25 percentage points.

The adjustment of the interest rate has generally had a neutral impact on banks' net interest margins. Lowering mortgage rates for existing homes will reduce interest income for banks, but it will also reduce the mortgage prepayments of customers. The central bank's cutting of the RRR is equivalent to directly providing low-cost and long-term capital for banks' operation. The MLF and open market operations are the major ways for the central bank to offer short- and medium-term capital to commercial banks. Decreasing interest rates will also lower banks' funding costs. In addition, as mentioned earlier, it is expected that the LPR and deposit rates will have symmetrical reduction. Previously, we guided deposit rates downward several times through the interest rate self-regulatory mechanism, and the repricing effect will be cumulatively revealed. The repricing of deposit rates is slower than that of loan interest rates. Therefore, as deposit rates have been guided downward, the effect of repricing will be cumulatively revealed over time. As a result, in the design of the policy adjustment plan, the PBC's technical team has carried out several rounds of careful quantitative analysis and evaluation. The interest rate adjustment this time has had a neutral impact on banks' income and the net interest margin will remain basically stable. Thank you.

China Securities Journal:

The third plenary session of the 20th CPC Central Committee proposed improving the functions of the capital market to give balanced weight to investment and financing, and to facilitate the entry of long-term capital into the market. Relevant authorities have also been calling for and promoting long-term investment and value investment. What will be done next to better advance the entry of long-term capital into the market to promote balance between investment and financing? 

Wu Qing:

Let me answer this question. Long-term capital is indeed extremely important. Medium and long-term capital investment operations have a high degree of specialization and strong stability, which is of great significance for overcoming short-term market fluctuations and playing the role of "stabilizer" and "ballast" in the capital market. In recent years, the CSRC has vigorously advanced the development of public equity funds and has worked with relevant parties to promote the entry of medium- and long-term funds into the market, achieving some phased results. By the end of this August, the total A-share market capitalization held by professional institutional investors such as equity public funds, insurance funds and various pensions was nearly 15 trillion yuan, more than double that at the beginning of 2019, and the proportion of which in the A-share market increased from 17% to 22.2%. Among these, the National Social Security Fund is very prominent. Since its establishment, the average annualized rate of return of the National Social Security Fund has exceeded 10% in the domestic stock market, becoming an exemplar of long-term investment and value investment in the A-share market. 

At the same time, we also see that there are still prominent problems in the capital market. These include insufficient medium- and long-term funds, sub-optimal structure, the leading role has not been given full play, and the institutional environment for "long-term investment of long-term capital" has not yet been fully established. In order to implement the guiding principles of the third plenary session of the 20th CPC Central Committee and further remove the barriers that affecting the entry of the medium- and long-term capital into the market, with the strong support of relevant ministries and ministerial-level commissions, the CSRC and other relevant departments have formulated guidelines to promote medium- and long-term capital into the market, which will be issued in the near future. The guidelines include a series of arrangements to support the entry of medium- and long-term capital into the market, and it is believed that the institutional environment will continue to be optimized. In general, it focuses on the goal of "more long-term capital with longer terms and better returns" and further promotes the entry of medium- and long-term funds into the market. The soon-to-be-published guidelines give priorities to measures in three aspects:

First, we will strive to develop public equity funds. We will give priority to urging fund companies to further adopt the right approach to growing businesses, adhere to the orientation of investment return, improve investment research and service capabilities, create more products that meet the needs of the people, and strive to create long-term returns for investors. Recently, you may have also noticed that 10 new CSI A500 exchange-traded funds (ETFs) were approved, which have been very popular with the market and soon reached the limit for fundraising. Next, we will further optimize the registration of equity fund products, vigorously promote the innovation of index products such as broad-based ETFs, and launch more small- and mid-cap ETF fund products, including ChiNext and STAR Market in a timely manner, to better serve investors, the national strategy and the development of new quality productive forces. In addition, we will promote the steady reduction of the general rate of the public equity fund sector, which is also an issue that has been discussed a lot recently. We have now taken two steps, and there is still one step remaining. By steadily lowering the general rate, we can better benefit and reward investors.

Second, we will improve the institutional environment for "long-term investment of long-term capital." We will give priority to improving the inclusiveness of supervision over medium- and long-term capital equity investment, and fully implement long-term assessments of three-years and above. We will remove the institutional barriers to long-term investment of insurance funds and propel insurance institutions to be firm value investors, to provide stable long-term investment for the capital market. At the same time, we will guide the sound interaction between multilevel and multi-pillar aged-care social protection system and the capital market, improve the investment policy system for national social security funds and basic old-age insurance funds, and encourage annuity funds to explore different types of differentiated investment according to the different ages and risk preferences of holders.

Third, we will continue to improve the ecology of the capital market. We will give priority to taking multiple measures to enhance the quality and investment value of listed companies and improve the supporting institutional arrangements for institutional investors to participate in the governance of listed companies. At the same time, we will crack down on all kinds of violations of laws and regulations and foster a sound market ecology in which medium- and long-term capitals are "willing to come and stay and can develop well."

Next, we will work with relevant ministries and ministerial-level commissions as well as relevant units to step up efforts to ensure the implementation of all measures. Thank you. 

21st Century Business Herald:

Large commercial banks play a crucial role in the financial system. What measures will the financial regulatory authorities take in the near future to promote the prudent operation of large banks? In June, the State Council issued the "Several Policy Measures for Promoting the High-Quality Development of Venture Capital," which proposed expanding the scope of trials for equity investment of financial asset investment companies under large banks. What implementation measures have been adopted?

Li Yunze:

Thank you for your question. I will answer this one. As you just mentioned, large commercial banks are the mainstay of serving the real economy in the financial system and the ballast for maintaining financial stability. At present, the operation and development of large commercial banks is making steady progress, the quality of assets is stable, and major regulatory indicators are within a healthy range.

As you all know, capital is the basis for the operation of financial institutions and it is also the foundation for improving the capability to serve the real economy and the barrier to resist risks. In recent years, large commercial banks have mainly relied on their own profit retention to increase capital, but with the continuous increase in bank fee reductions and interest concessions, net interest margins have narrowed, and profit growth has gradually slowed. Therefore, it is necessary to coordinate internal and external channels to replenish capital.

In order to consolidate and enhance the ability of large commercial banks to steadily operate and develop, and give better play to their role as the mainstay in serving the real economy, after research, China has planned to increase the tier-1 capital of the six large commercial banks. This will be implemented in an orderly manner, utilizing an approach of "coordinated advancement, in tranches and batches, and one policy for one bank." We will also continue to urge large commercial banks to improve their refined management level and strengthen their capabilities to pursue high-quality development under capital constraints.

At present, indirect financing still occupies a dominant position in China's aggregate private financing, which means we need to embark on a development path for technology finance with Chinese characteristics, especially sci-tech innovation investment. In the early stages, financial asset investment companies under the large commercial banks have launched pilot projects for equity investment in Shanghai, exploring the path, gaining experience and training teams. The conditions for carrying out the pilot project on a larger scale have already been put in place. According to the relevant arrangements of the State Council, in order to give full play to the leading and driving role of the pilot projects and encourage the development of venture capital, we plan to take the following measures in three aspects: First, we will carry out pilot projects in more cities. We will work with relevant departments to expand the scope of the pilot projects from Shanghai to 18 large and medium-sized cities with vibrant sci-tech innovation activities such as Beijing. Second, we will relax restrictions. We will appropriately relax the restrictions on the amount and proportion of equity investment, increasing the proportion of on-balance sheet investment from the original 4% to 10%, and raise the proportion of investment in single private equity funds from the original 20% to 30%. Third, we will optimize the assessments. We will guide relevant institutions to implement the requirements that no one who has fulfilled their duties is held liable and establish and improve long-term and differentiated performance evaluations. Next, we will summarize our experience in a timely manner and continue to carry out pilot projects in more cities. At the same time, we will continue to optimize supporting policies and actively advance the implementation of more projects as soon as possible.

That is all from me. Thank you.

Reuters: 

Home prices are falling every month, and declines in home prices are in double digits in many Chinese cities, despite all the measures taken to attract new home buyers and to lighten the mortgage burdens of home owners. So, my question is: Have financial regulatory authorities reached the limits of monetary policy? Thank you.  

Pan Gongsheng: 

Thank you for your question. It's a very good question and one that is of widespread concern. Based on our responsibilities, we mainly support risk mitigation and the healthy development of the real estate market from a financial perspective. In recent years, the PBC has continuously improved macroprudential policies in real estate finance, taking comprehensive measures on both the supply and demand sides. This includes multiple reductions in the minimum down payment ratio for personal housing loans, lowering loan interest rates, removing the lower bound on interest rates, and establishing a relending policy to support the acquisition of completed commercial housing for affordable housing. In order to implement the central government's decisions and arrangements on promoting the stable and sound development of the real estate market, the PBC, along with the NFRA, has introduced five new financial policies for real estate.

The first policy is to guide banks to reduce interest rates on existing mortgages. Last August, the PBC encouraged commercial banks to orderly reduce interest rates on existing mortgages, and the results were fairly good. After the floor for mortgage rates was lifted nationwide on May 17 of this year, we removed the lower bound, which used to involve adjustments based on loan prime rate (LPR), and expanded the room for rate reductions on newly issued loans, leading to a significant drop in interest rates. This widened the interest rate gap between old and new mortgages once again, especially in large cities like Beijing, Shanghai, Shenzhen and Guangzhou. The original rates were relatively high. After the adjustments, the difference between the interest rates on newly issued and existing mortgages became even larger. In response, the PBC plans to guide banks to make bulk adjustments to interest rates on existing mortgages, lowering them to be closer to rates on new loans. We expect the average reduction to be around 0.5 percentage points. Since loans were issued at different times and rates vary across regions and banks, this is an estimated average reduction. Lowering the rates on existing mortgages will help reduce the interest burden on borrowers, benefiting estimated 50 million households or about 150 million people. This is expected to reduce the total annual interest payments by around 150 billion yuan for households, which will help boost consumption and investment, reduce early repayment behaviors and limit opportunities for the illegal replacement of existing housing loans. Thus, protecting the legal rights of financial consumers and supporting the stable and sound development of the real estate market.

We will officially release this policy document soon. Since it involves many borrowers, banks will need some time to make the necessary technical preparations, so it is expected that banks may not handle this immediately. I would advise people not to rush to the banks this afternoon. Moving forward, we are also considering guiding commercial banks to improve their mortgage pricing mechanisms, allowing banks and customers to negotiate dynamic adjustments in a market-based way.

The second policy is to unify the minimum down payment ratio for both first and second homes at 15%. To better support the essential need of urban and rural residents for a home to live in and their diverse demands for better housing, the minimum down payment ratio for personal housing nationwide will no longer differentiate between first and second homes, and will be uniformly set at 15%. After May 17, the minimum down payment ratio for first homes has already been 15%, while for second homes it was 25%. This time, we unify the down payment ratio for both first and second homes to be 15%. I would like to clarify two points here: Local governments can implement policies based on their own conditions, independently determine whether to adopt differentiated policies and set the minimum down payment ratio within their jurisdictions. Given the vast differences in real estate markets across cities and regions in such a large country, local governments can make differentiated arrangements on the minimum down payment ratio within the national baseline. The other point is commercial banks may negotiate with clients to determine the specific down payment ratio, based on an assessment of clients' risks and their own willingness. The 15% is just a minimum; banks may require a higher down payment based on their risk assessment, and some clients may choose to make larger down payments, such as 30%. Thus, this would be a market-based negotiation between the bank and the individual.

The third policy is to extend the deadlines for two real estate finance policy documents. Previously, the PBC and the NFRA issued two policies: the 16 financial measures and the operating property loan policy. Both of these have played a positive role in promoting the stable and sound development of the real estate market and resolving risks. The time-limited policy of extending existing financing for real estate companies and the operating property loan policy were originally set to expire on December 31, 2024. This time, we have decided to extend these two policies until December 31, 2026.

The fourth policy is to optimize the relending policy for government-subsidized housing. On May 17, the PBC announced the establishment of a 300-billion -yuan relending facility for government-subsidized housing. The facility guides financial institutions, in accordance with market-oriented and law-based principles, to support local state-owned enterprises in purchasing unsold completed commercial housing at reasonable prices for use as government-subsidized housing for sale or rent. This is an important measure to reduce real estate inventory. To further enhance market incentives for banks and purchasing entities, we are increasing the PBC's funding share in the relending program from 60% to 100%. Previously, for every 10-billion-yuan loan issued by commercial banks, the PBC provided six billion yuan in funding. Now, for every 10-billion-yuan loan, the PBC will provide 10 billion yuan in low-cost funding, accelerating the destocking process for commercial housing inventory.

The fifth policy is to support the acquisition of real estate companies' land reserves. In addition to allowing local governments to use part of their special bonds for land reserves, we are researching the possibility of allowing policy banks and commercial banks to provide loans to qualified enterprises for the market-based acquisition of land from real estate companies. It can help put idle land to better use and alleviate financial pressures placed on real estate companies. If necessary, the PBC can also provide relending support. We are currently working on this policy with the NFRA.

Thank you!

Beijing Youth Daily: 

Concerning small and micro enterprises, we have noticed that recently many support policies have been introduced for the financing of small and micro enterprises, and financial institutions have enhanced their efforts in providing services. The financing for small and micro enterprises has seen an increase in volume, an expansion of coverage and stable pricing. However, some of them have reported that they still face obstacles. Could you please share if the NFRA has any targeted measures in this regard? Thank you.

Li Yunze: 

Thank you for your question. Small and micro enterprises are connected to numerous households and are an important force in stabilizing the economy, promoting employment and improving people's livelihoods. In recent years, we have worked with the PBC to continuously strengthen policy guidance as well as coordinate efforts from diverse parties to improve the financial services for small and micro enterprises. By the end of August this year, the balance of inclusive small and micro enterprise loans nationwide had reached 31.9 trillion yuan, a fourfold increase compared to the end of 2017, with the average interest rate decreasing by 3.5 percentage points. To further address the financial obstacles faced by small and micro enterprises, the NFRA will take two main measures.

First, we will collaborate with the National Development and Reform Commission to establish a coordination mechanism for supporting small and micro enterprises in obtaining financing. This mechanism draws on the experience from the earlier coordination mechanism for real estate financing by setting up dedicated working groups at district and county levels. These groups will work on two fronts: On one hand, they will engage with companies, conducting extensive visits to thoroughly understand the operational status and actual difficulties of small and micro enterprises, focusing on comprehensively assessing their financing needs. On the other hand, they will work with banks, recommending small and micro enterprises that comply with laws and regulations, have genuine financing needs and maintain good credit records. Banks should respond promptly and, in principle, complete credit approvals within one month to ensure that loan funds directly reach small and micro enterprises, truly bridging the "last mile" in delivering financial support.

Second, we will optimize the policy for loan renewals without repayment of principal. In 2014, the former China Banking Regulatory Commission issued a loan renewal policy for small and micro enterprises, commonly known as "Document No. 36." This policy stipulates that eligible small and micro enterprises with ongoing financing needs can apply for loan renewals when their loans mature. This means they can secure continued financing without repaying the principal upon loan maturity, a service known as "loan renewals without principal repayment." This policy has been well-received by small and micro enterprises and has played a positive role in facilitating their financing. We will further optimize the policy in three aspects.

First, we will expand the scope of the renewal policy from a limited number of small and micro enterprises to include all such businesses. Any eligible small or micro enterprise with genuine financing needs and facing financial difficulties after loan maturity can apply for loan renewal support.

Second, we will temporarily extend the renewal policy to medium-sized enterprises for a three-year period. Specifically, working capital loans for medium-sized enterprises maturing before Sept. 30, 2027, can follow the renewal policy applicable to small and micro enterprises.

Third, we will adjust risk classification standards. Loans renewed for companies that operate legally, maintain continuous operations and have good credit records will not be downgraded in risk classification solely due to renewal.

To ensure effective implementation of credit support policies for small, micro and medium-sized enterprises, especially to address concerns among grassroots loan officers about granting loans to these businesses, the NFRA recently introduced a due diligence liability exemption system for inclusive financing. This system specifies situations where loan officers can be exempt from liability if they have performed due diligence, aiming to fully encourage their enthusiasm and initiative and establish a long-term mechanism where officers are confident, willing, able and proficient in providing loans.

That's all I have for now. Thank you.

Yicai:

At the beginning of this year, we saw the establishment of a new coordination mechanism for urban real estate financing. Could you provide an update on its latest progress and outcomes? What are the next steps and new measures being considered? Thank you.

Li Yunze:

Thank you for your question. Mr. Pan has already provided a comprehensive answer regarding this year's financial policies related to the real estate sector. The stable and healthy development of the real estate market is crucial for overall economic and financial performance, as well as the immediate interests of the people. In recent years, significant changes have occurred in the supply and demand dynamics of our real estate market. The continued slowdown in sales has led to tight liquidity for property companies, making it difficult for some sold, under-construction projects to be delivered on schedule. To address this issue, the NFRA has collaborated with the Ministry of Housing and Urban-Rural Development to establish a coordination mechanism for urban real estate financing. The key feature of this mechanism is its "city-focused and project-centric" approach, distinguishing risks associated with real estate company groups from those of individual projects. By leveraging the coordinating role of local governments, it places compliant, under-construction, sold projects on a "white list," guiding financial institutions to meet reasonable financing needs of these projects. This facilitates project completion and delivery, effectively safeguarding homebuyers' lawful rights and interests.

With joint efforts from all parties, the coordination mechanism has achieved positive results. To date, commercial banks have approved over 5,700 projects on the "white list," with approved financing reaching 1.43 trillion yuan, supporting the timely delivery of more than 4 million housing units. Driven by this mechanism, financial institutions are continuously expanding their support for the real estate industry. As of late August, we've seen positive growth in real estate development loans compared to the year's start, reversing the downward trend. Loans for real estate mergers and acquisitions and housing rental loans have increased by 14% and 18%, respectively, providing strong financial support for stable and healthy real estate market development.

Additionally, to actively support essential housing needs and demand for better housing, as Mr. Pan mentioned, we've worked with the PBC to guide local governments and financial institutions in adjusting relevant real estate financial policies based on local conditions. Moving forward, we'll collaborate with the PBC to promote a gradual reduction in existing housing loan interest rates, further decreasing residents' mortgage payments and enhancing their sense of financial well-being.

Next, we will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council on real estate work. We'll further promote the effective implementation of the coordination mechanism for urban real estate financing to ensure we whitelist all eligible projects, grant all eligible loans, and fund all eligible companies. We are determined to overcome obstacles in housing delivery and promote the stable and healthy development of the real estate market.

Thank you.

Red Star News:

Currently, the market is closely watching mergers and acquisitions (M&A) and restructuring of listed companies. You mentioned the need for multiple measures to invigorate the M&A and restructuring market. Regulatory authorities have been promoting market-oriented reform of M&A and restructuring in recent years. What specific measures will the CSRC implement next to better stimulate efficiency and vitality in the capital market's M&A and restructuring? Thank you.

Wu Qing:

Thank you for your question. M&A and restructuring are indeed significant in the capital market. Supporting corporate M&A and restructuring to further promote effective resource allocation is a crucial function of the capital market. Particularly in the context of accelerating global industrial transformation and our country's economic structural upgrading, it's imperative to leverage the key role of corporate M&A and restructuring to aid industrial integration and enhance quality and efficiency. The new "Nine Measures" make important arrangements to invigorate the M&A and restructuring market. To further stimulate market vitality, the CSRC has formulated the Opinions on Deepening the Reform of the M&A and Restructuring Market for Listed Companies, based on extensive research and input from various parties. We adhere to market-oriented approaches to better utilize the capital market as a primary channel in M&A and restructuring. The main contents of the Opinions include:

First, we will strongly support listed companies in their transformation and upgrading towards new quality productive forces. The CSRC will actively support listed companies in conducting M&A and restructuring centered on strategic emerging industries and future industries. This includes cross-industry M&A aimed at transformation and upgrading, as well as acquisitions of unprofitable assets that help strengthen industrial and supply chains and enhance core technologies in key fields. These efforts aim to guide more resources and production factors towards new quality productive forces.

Second, we will actively encourage listed companies to strengthen industrial integration. China is the only country globally with a complete range of industrial sectors. However, we also see that some industries are large but not strong, and numerous but not of high quality. While supporting emerging industries, the capital market will continue to help traditional industries improve industrial concentration and resource allocation efficiency through restructuring. We will support the integration needs of listed companies by significantly streamlining the review process. Additionally, we will encourage private investment funds to actively engage in M&A and restructuring through mechanisms such as "reverse linkage" of lock-up periods.

Third, we will further enhance regulatory tolerance, a topic of ongoing market interest. While adhering to rules, the CSRC will respect market, economic, and innovation dynamics. We will increase our tolerance for matters such as restructuring valuations, performance commitments, horizontal competition, and related-party transactions based on actual circumstances to better optimize resource allocation through market mechanisms.

Fourth, we will make significant efforts to enhance transaction efficiency in the restructuring market. Currently, payment instruments available for restructuring are quite diverse, including cash, shares, and convertible bonds. Moving forward, the CSRC will support listed companies in using payment instruments such as installment issuance of shares and convertible bonds, staged payment of transaction prices, and phased supporting financing based on specific transaction needs. This will further improve transaction flexibility and fund use efficiency. Simultaneously, we will establish a simplified review procedure for restructuring, significantly streamlining the process, shortening review timeframes, and improving efficiency for eligible listed companies.

In addition, the role of intermediary agencies is crucial in driving mergers and acquisitions (M&As) and corporate restructuring. The CSRC will guide securities firms and other intermediary agencies to further enhance their service capabilities and fully leverage their expertise in trade matchmaking and professional services to help listed companies implement high-quality M&As and restructuring. The CSRC will also properly fulfill its supervisory duty in accordance with the law, cracking down on all violations of laws and regulations, effectively safeguarding market order in enterprise restructuring and ensuring orderly restructuring processes to protect the lawful rights and interests of small- and medium-sized investors.

This concludes my response. Thank you.

Market News International: 

The Federal Reserve cut rates by 50 basis points this month. Does this create room for further easing in China's monetary policy, and how will the People's Bank of China assess the impact of the Fed rate reduction on China's foreign exchange market?

Pan Gongsheng:

Thank you for your questions. Recently, major economies have adjusted their monetary policies. As we see, the depreciation pressures on the RMB have notably eased, and the currency has started to appreciate. On Sept. 18, the U.S. Fed cut interest rates by 50 basis points, marking the first rate reduction amid its interest rate hike cycle over the past few years. Meanwhile, central banks of several other countries have also cut their interest rates. For example, the European Central Bank (ECB) has reduced its interest rate twice since June, by a total of 50 basis points; the Bank of England (BoE) lowered rates by 25 basis points in August; and the central banks of Canada and Sweden also cut their interest rates. The monetary policies of major economies, except for Japan's central bank, have all shifted to a rate-cutting cycle, weakening the U.S. dollar's appreciation momentum. The dollar index has generally declined, decreasing by 3% since August and currently fluctuating at around 101. As the periodical divergence in monetary policies between China and foreign countries narrows, external pressures affecting the general stability of the RMB exchange rate have significantly eased. On Sept. 23, the RMB-to-U.S. dollar exchange rate reached approximately 7.05, reflecting a 2.4% appreciation since August.

The exchange rate reflects the comparative value of currencies and can be affected by multiple factors, including economic growth, monetary policy, financial markets, geopolitics and emergencies. All these elements can impact the exchange rate.

From an external perspective, uncertainties in the global environment and the U.S. dollar's trajectory persist. These are influenced by factors such as diverging economic growth among countries, geopolitical shifts, including the U.S. presidential election, and fluctuations in global financial markets.

Considering China's domestic situation, we believe the RMB exchange rate maintains a relatively stable foundation.

First, from a macroeconomic perspective, China's economic recovery and steady growth momentum are expected to further consolidate and strengthen. The strong monetary policy introduced by the PBC will support the real economy, boost consumption and enhance market confidence.

Second, China has maintained a basic equilibrium in its balance of payments. In the first half of the year, the ratio of the country's current account surplus to its GDP reached 1.1%, which is considered to be within a relatively appropriate range.

Third, the PBC and the State Administration of Foreign Exchange (SAFE) have placed great importance on the development of the foreign exchange market. This market has seen increasingly mature participants, more rational trading behaviors and significantly greater resilience. In the first half of the year, the proportion of import and export enterprises engaging in hedging reached 27%, while 30% of foreign trade in goods used RMB for cross-border settlements. These two figures don't overlap. Combined, they suggest that about 50% of Chinese enterprises involved in foreign trade and exports are relatively insulated from exchange rate risks. As the PBC has repeatedly stated, with the RMB exchange rate floating more freely, market participants should view rate fluctuations rationally. They should strengthen their "risk-neutral" philosophy and avoid speculation on exchange rate trends and unilateral movements. Enterprises should focus on their core business, while financial institutions should continue to provide sound services that support the real economy.

The PBC's stance on exchange rate policy is clear and transparent, with several key points: First, we uphold the market's decisive role in determining exchange rates while maintaining their flexibility. Second, we are strengthening efforts to guide market expectations. This includes preventing the foreign exchange market expectations from becoming unanimously one-sided and self-fulfilling. We also work to prevent exchange rate overshooting risks, maintaining the RMB's general stability within an appropriate and balanced range.

Thank you.

CNBC:

Analysts say that the reason why the Chinese government bond yield has declined is because of expectations that the economy will slow further and that monetary policy will ease. What is the People's Bank of China's view on this, and what measures do you plan to take? Thank you.

Pan Gongsheng:

The debate surrounding this issue has subsided recently. Previously, there was extensive discussion, and the PBC communicated frequently with the market in appropriate ways. The decline in the yield of China's government bonds was attributed to various reasons. For instance, the PBC used policy interest rates to guide the market toward lowering its rates; the issuance and supply of treasury bonds slowed; and some small- and medium-sized financial institutions in the market lacked risk awareness and swarmed to the market, creating the effect of herd flock and exacerbating the situation. Currently, China's long-term treasury bonds have a yield rate of around 2.1%. This is the result of market-oriented development, and the PBC respects the market's role. At the same time, this has undoubtedly created a conducive monetary environment for implementing proactive fiscal policies.

However, we must also recognize that interest rate risk is a crucial aspect of financial institutions' risk management. The case of Silicon Valley Bank (SVB) is particularly instructive. As everyone is aware, this risk event reminds us that central banks need to observe and assess market risks from a macroprudential management perspective and take appropriate measures to mitigate and prevent risk accumulation. This is an essential responsibility of central banks.

Currently, as a key price indicator, the yield curves of government bonds still face problems such as insufficient long-end pricing and lack of stability. The central bank has issued risk warnings on the yields of long-term government bonds and strengthened communication with the market. These measures aim to prevent potential systemic risks of a one-sided decline in long-term government bond yields incurred by the effect of herd flock.

It is the central bank's responsibility to maintain a sound trading order in the bond market. Recently, the PBC identified several violations in the bond market such as price manipulation, account lending, and improper interest transfers. We will intensify investigations and penalties for violations of laws and regulations in the interbank bond market, disclosing findings to the public when appropriate. The National Association of Financial Market Institutional Investors (NAFMII) has already publicly released several cases. Ongoing investigations continue, and we will announce the results once they are completed.

In recent years, as China's financial market develop rapidly, the bond market has gradually improved in size and depth. Conditions have become increasingly suitable for the central bank to purchase and sell government bonds and issue base currency through the secondary market. I elaborated on our plans regarding this matter at the Lujiazui Forum on June 19. The PBC has already incorporated government bond purchases and sales into its monetary policy toolkit and has begun trial operations. The specific measures in this regard are fully transparent and have been published publicly on the PBC's website. We are also collaborating with the Ministry of Finance (MOF), jointly working on measures to optimize the issuance pace, maturity structure, and custody system of government bonds. The PBC's process of purchasing and selling government bonds in the secondary market will be progressive.

Thank you.

Phoenix TV:

We've noticed that the new "National Nine Articles" for capital market regulation published this year outlined specific requirements for listed companies to improve their investment value and strengthen market capitalization management. What measures will the CSRC take next to further these efforts? Thank you.

Wu Qing:

Thank you for your questions. Listed companies are the foundation of the market. The capital market will only prosper and thrive when listed companies create value for investors and continuously provide returns. The CSRC proactively supports listed companies in improving their operation efficiency and enhancing profitability. The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) also follows an approach of offering specific policies tailored to individual enterprises and intensifying oversight of the market capitalization management of listed central state-owned enterprises (SOEs). Listed companies must improve the transparency of information disclosure, enhance standards of corporate governance, strengthen investor communication, and reward investors via various measures such as dividend distribution and share buybacks. Since the beginning of the year, more than 95% of listed companies have held performance briefings. A total of 663 announcements on mid-term dividends have been made by these listed companies, with the expected dividend payout reaching 533.7 billion yuan. Over 1,500 companies carried out share buybacks, with an aggregated value exceeding 100 billion yuan.

To improve the quality of listed companies and enhance investment value, listed companies must take their responsibilities seriously. We've worked with relevant departments to formulate guidelines for market value management of listed companies, mandating compliance in accordance with the law. First, boards of directors must prioritize investor protection and returns, strengthening the foundation of market value management through improved operations, management, profitability, and core competitiveness. Second, listed companies are required to actively use market value management tools like mergers and acquisitions, equity incentives, and major shareholder share purchase to enhance investment value. Third, listed companies must establish regular buyback mechanisms, and qualified companies are encouraged to plan and reserve capital in advance. Fourth, persistently undervalued companies must develop and publicly disclose value enhancement plans with implementation assessments, creating market constraints. Fifth, major index constituent companies must take responsibility by establishing market value management systems, clarifying responsibilities and response measures, and regularly disclosing implementation actions. It's crucial to emphasize that while strengthening market value management, listed companies and relevant parties must improve compliance awareness and avoid market manipulation, insider trading, or other illegal and irregular activities under the guise of market value management.

We'll soon seek public input on the draft guidelines for market value management. At the same time, we're collaborating with relevant ministries to establish market-based incentives and restraint mechanisms for share buybacks by listed companies. This aims to stimulate intrinsic motivation among major shareholders, senior executives and other key stakeholders, further enhancing the investment value of listed companies. Thank you.

Cover News:

Insurance companies are important institutional investors in the capital market. Recently, the State Council issued opinions on strengthening supervision to prevent risks and promote high-quality development in the insurance industry, proposing to leverage the long-term investment advantages of insurance funds. What new measures has the NFRA taken to advance the pilot reform of long-term insurance fund investment and support participation in capital market development? Thank you.

Li Yunze:

Thank you for your question. The State Council has unveiled the "Ten Guidelines" to enhance the regulation and high-quality development of the insurance sector, providing a comprehensive and systematic strategy for the industry's advancement. China's insurance industry is ushering in a rare historic opportunity. It's likely that China's insurance market will continue to expand in the future, and the density and depth of insurance will continue to improve. Insurance capital, with its large scale, long-term nature, and stable source, naturally possesses the attribute of patient capital and will become an important value investor supporting the healthy and sustainable development of the capital market.

The capital market undoubtedly plays an important role in both financial stability and economic development. The NFRA has always attached great importance to the capital market and actively guided banks, insurance and asset management institutions to maintain its stability. Earlier, with the State Council's consent, we encouraged China Life Insurance and New China Life Insurance to carry out pilot projects, jointly establishing private equity investment funds and raising insurance funds to invest in the capital market. With a registered capital of 50 billion yuan, the fund has commenced operations and is progressing smoothly.

Going forward, we'll continue to support the sustained and sound development of the capital market. First, we'll expand the pilot reform of long-term investment of insurance funds, support other eligible insurance institutions to set up private securities investment funds, and further increase investment in the capital market. Second, we'll urge and guide insurance companies to optimize their assessment mechanisms and encourage long-term equity investments. Third, we'll encourage asset management companies and trust companies to strengthen their equity investment capacity, issue more long-term equity products, actively participate in the capital market, and cultivate and grow patient capital through multiple channels. Thank you.

Economic Daily:

Recently, Central Huijin Investment Ltd. has significantly increased its holdings of ETFs. What does the CSRC think about this? Thank you.

Wu Qing:

Thank you for your question. The capital market is highly transparent. As we've all seen, Central Huijin Investment Ltd. has been steadily increasing its holdings of ETFs, fully reflecting state investment institutions' strong confidence in the investment value of the A-share market. This has played an important role in stabilizing the market and boosting confidence. We've noticed that many domestic and foreign investment institutions and research firms also believe that the A-share market is currently undervalued, highlighting its investment value. The CSRC will work with relevant parties to further support Central Huijin Investment Ltd.'s efforts to increase its holdings and expand its investment scope, promoting investment in the stock market by various medium- and long-term funds, including Central Huijin. Just now, Mr. Li also talked about the relevant arrangements to support the entry of insurance companies into the market. We will also actively support all types of funds, including insurance funds, to increase their market participation and provide a better policy environment. We'll further strengthen our strategic reserves and work together to promote the steady, healthy development of the capital market. Thank you.

Shou Xiaoli:

The press conference has been going on for an hour and a half. Due to time constraints, this will be the last question.

Financial News:

What are the main considerations for establishing securities, funds, insurance swap facilities, and special reloans to support listed companies' buybacks and increase the stock holdings of major shareholders? How will the central bank carry out these operations? Thank you.

Pan Gongsheng:

Thank you for your questions. To maintain the stability of China's capital market and bolster investor confidence, the PBC, in consultation with the CSRC and the NFRA, has pioneered two structural monetary policy tools to support the stable development of the capital market. This was done drawing on international experience and the PBC's own past practices. This marks the first time the PBC has innovated structural monetary policy tools to support the capital market.

The first tool is a swap facility for securities, funds and insurance companies. This supports qualified securities, funds and insurance companies, which will be determined by the CSRC and the NFRA based on specific criteria. These institutions can use their holdings of bonds, stock ETFs, CSI 300 constituent stocks and other assets as collateral to exchange for highly liquid assets such as government bonds and central bank bills from the central bank. Government bonds and central bank bills differ significantly in credit rating and liquidity compared to other assets held by market institutions. Many institutions have assets on hand, but liquidity is relatively poor under current circumstances. By exchanging with the central bank, they can obtain high-quality, highly liquid assets, greatly enhancing their ability to obtain funds and increase stock holdings. We plan the initial scale of swap facility operations to be 500 billion yuan, with potential for future expansion depending on the situation. As I discussed with Mr. Wu, if this goes well, we can consider additional rounds of 500 billion yuan or even a third 500 billion yuan. I think all these options are possible and open for consideration. The funds obtained through this instrument can only be used to invest in the stock market.

The second tool is a reloan program to support stock buyback and increased holding. This tool guides commercial banks in providing loans to listed companies and major shareholders for buying back and increasing holdings of listed companies' shares. In fact, share repurchases or increases by shareholders and listed companies are very common transactions in international capital markets. The central bank will issue reloans to commercial banks, providing 100% funding support at a 1.75% reloan interest rate. Commercial banks will lend to customers at about 2.25%, adding 0.5 percentage point, which is still very low. The initial quota is 300 billion yuan, and if this tool is used well, as I told Mr. Wu, we can add another 300 billion yuan or even a third 300 billion yuan. All of this is possible. However, we'll need to assess the market situation later. This tool applies to listed companies of different ownership structures, including state-owned, private and mixed-ownership enterprises. We don't distinguish between ownership structures. The PBC will work closely with the CSRC and the NFRA. We will also need market institutions' cooperation to implement this effectively.

Thank you all.

Shou Xiaoli:

Thank you to our three speakers, and thank you to all the journalists for your participation. This concludes today's press conference.

Translated and edited by Wang Yiming, Yan Bin, Yuan Fang, Xu Kailin, Ma Yujia, Mi Xingang, Wang Yanfang, Zhang Jiaqi, Wang Qian, Zhu Baichen, Huang Shan, Yang Xi, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Lu Zhiyuan, minister of civil affairs

Mr. Tang Chengpei, vice minister of civil affairs

Mr. Liu Xitang, spokesperson of the Ministry of Civil Affairs (MCA) and director general of the General Office of the MCA

Mr. Wang Jinhua, director general of the Social Affairs Department of the MCA

Mr. Guo Yuqiang, director general of the Child Welfare Department of the MCA

Chairperson:

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

Date:

Sept. 23, 2024 

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO) as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Lu Zhiyuan, minister of civil affairs, to brief you on relevant developments and to take your questions. Also attending today's press conference are: Mr. Tang Chengpei, vice minister of civil affairs; Mr. Liu Xitang, spokesperson of the Ministry of Civil Affairs (MCA) and director general of the General Office of the MCA; Mr. Wang Jinhua, director general of the Social Affairs Department of the MCA; and Mr. Guo Yuqiang, director general of the Child Welfare Department of the MCA.

Now, I'll give the floor to Mr. Lu for his briefing. 

Lu Zhiyuan:

Ladies and gentlemen, friends from the media, good afternoon. I am so pleased to meet with you to discuss civil affairs work. First, on behalf of the MCA, I would like to express my heartfelt gratitude for your long-term concern and support for civil affairs.

Civil affairs work relates to people's livelihoods and connects with people's hearts. In recent years, civil affairs departments at all levels have thoroughly studied and implemented General Secretary Xi Jinping's important discourses on civil affairs work. Focused on better fulfilling our duties to safeguard basic livelihood, grassroots social governance and basic social services, we have adhered to a people-centered approach, prioritizing the protection of basic rights and interests of civil affairs service recipients, especially the most vulnerable groups. We regard public concerns as a barometer of our work and public satisfaction as a benchmark, striving to meet people's basic needs, provide a cushion for those most in need, prevent risks and promote development, thus driving new progress and achievements in various civil affairs tasks. These are reflected in the following aspects:

First, we have strengthened support to ensure people's basic livelihood and effectively guaranteed basic living essentials for various vulnerable groups who face difficulties. We have established a tiered and categorized social assistance system, using big data and other means to enhance dynamic monitoring of low-income populations and providing early warning and assistance in a timely manner. We have included migrant children in the national care and protection scope, providing rights and interests protection, daily care and support services for urban migrant children and rural left-behind children. We have also provided a slew of services to safeguard the upbringing, education and medical rehabilitation of orphans and uncared-for children. We have established a system of living subsidies for disabled individuals in difficulty and nursing subsidies for severely disabled individuals, providing timely assistance to those temporarily in difficulty. Our efforts aim to strengthen the safety net for ensuring the basic needs of vulnerable groups and make them feel the warmth of the Communist Party of China (CPC) and the government as well as experience the superiority of the socialist system.

Second, we have developed basic social services and accelerated the improvement of our management levels in elderly care, work regarding administrative divisions, and marriage registration services. We have rapidly enhanced the elderly care service system. In response to the fundamental needs of the elderly, we have established a basic elderly care service system. We have stepped up efforts to increase nursing-type beds, promoting the integrated development of "elderly care services plus medical resources" to meet different medical and health care needs and actively develop rural elderly care services. We have fulfilled the coordination responsibilities for work related to aging, pushing for the improvement of social security, elderly care services and health support systems. Simultaneously, we have carried out a rural geographic naming campaign, advancing the mapping of rural place names and the online promotion of agricultural products and contributing our efforts to comprehensive rural revitalization. We are optimizing marriage registration services and have launched a pilot program to provide inter-provincial marriage registration services in 21 provincial-level regions nationwide, offering greater convenience to the public.

Third, we have taken innovative means to improve grassroots social governance, actively leveraging the roles of both social organizations and charitable forces. We support the establishment of technology and service-oriented social organizations, optimizing the structure of social organizations. The total number of various social organizations nationwide has reached 883,000. We guide social organizations to offer pairing-up assistance for 160 key counties included in a national rural revitalization plan. We guide industry associations and chambers of commerce to serve high-quality development. We implement the Charity Law, guiding charitable forces to actively participate in supporting the weak and needy, aiding the elderly and orphans as well as providing relief to the sick and disabled. This year, various charitable organizations have donated nearly 3 billion yuan ($424.52 million) in funds and goods to key disaster-stricken provinces, strongly supporting disaster relief, recovery and rebuilding efforts.

On the new journey, we will use Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guidance, thoroughly study and implement the guiding principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee, comprehensively deepen reforms in the field of civil affairs, and focus on effectively solving the issues of "availability" while making significant efforts to address the questions of "quality" and "excellence." We strive to write a new chapter in the high-quality development of civil affairs, better serving and advancing Chinese modernization. 

That's all I want to introduce. Now, my colleagues and I will answer your questions. Thank you!

Shou Xiaoli:

Thank you, Mr. Lu, for your briefing. We will now proceed to the Q&A session. Please identify your news organization before posing your questions.

Hongxing News:

People with disabilities are a particularly vulnerable group that requires special care and attention. The third plenary session of the 20th CPC Central Committee explicitly proposed improving the social security and service systems for people with disabilities. Could you please specify what reform measures the MCA will take to ensure support for the vulnerable under this new arrangement and new instruction? Thank you.

Lu Zhiyuan:

I would like to invite Mr. Wang Jinhua from our social affairs department to answer this question.

Wang Jinhua:

Thank you for your question. As you said, people with disabilities are a unique group that requires special attention and care. China is home to 85 million people with disabilities, over 38 million of whom have certified disabilities. Since the 18th CPC National Congress, continuous efforts have improved the living conditions and quality of life for people with disabilities. On the new journey, facing expectations for a better life that encompass both basic needs and development, spanning material and spiritual needs, we must implement the requirement set by the third plenary session of the 20th CPC Central Committee to improve the "social security and service systems for people with disabilities." We'll take this as a key task to address shortcomings, strengthen weak points and enhance quality and efficiency, providing more stable and higher-level support for their well-being and public services. Based on civil affairs authorities' duties, we'll focus our efforts on four areas:

First, we'll continue to implement and improve the subsidy system for living expenses of people with disabilities in need and nursing costs for those with severe disabilities. This key welfare program is a pillar of China's social welfare system. As of August, it has benefited 11.91 million people with disabilities facing economic hardship and 16.07 million with severe disabilities. Next, we'll guide local authorities to refine the mechanism for adjusting subsidy standards, gradually increasing amounts to ease the burden on those in need, those with severe disabilities and their families. We'll streamline the application process through services like inter-provincial handling, complete online processing and proactive assistance, making it more accessible and efficient. We'll also strengthen supervision of subsidy issuance to ensure timely, full and error-free payments, ensuring every cent is used effectively.

Second, we'll strengthen the mental health welfare service system. Mental health issues significantly affect social stability and people's well-being. People with mental illnesses and their families often face considerable challenges due to these conditions' unique nature. In recent years, the Ministry of Civil Affairs has advanced the construction of mental health welfare institutions. Now, 141 such institutions operate nationwide, providing over 70,000 beds and greatly improving treatment, assistance and care for people with mental illnesses facing extreme difficulty. We're focusing on addressing gaps in these institutions in prefecture-level cities and high-demand counties, refining management and service standards, and enhancing service quality. Additionally, we're advancing an initiative to help people with mental health conditions integrate into society. The ministry has made arrangements to provide more equitable, accessible and continuous community rehabilitation services, facilitating their reintegration into society.

Third, we'll boost the rehabilitation assistive devices industry. This industry is foundational and service-oriented, essential for ensuring and improving the livelihood and well-being of people with disabilities. Our country has immense demand for rehabilitation assistive services and significant potential for industry growth. Moving forward, we will seize development opportunities, strengthen guidance for industry development, formulate development plans, step up industry promotion and application, and improve the construction of the service system. We'll refine networks for displaying, renting, cleaning, configuring and selling rehabilitation assistive devices. We'll also bolster the industry's capacity for independent innovation and enhance the technological and intelligent aspects of these devices to meet the diverse rehabilitation needs of people with disabilities.

Finally, we'll accelerate the improvement of relevant laws and regulations. We'll work to formulate policies for providing care to people with severe disabilities, focusing on addressing challenges faced by families relying on elderly individuals to care for disabled persons, those with elderly disabled individuals and households with multiple disabled members. We'll implement the Civil Code requirements to formulate guidelines on civil affairs authorities fulfilling guardianship duties for disabled adults, effectively safeguarding the rights of people with mental and intellectual disabilities. Thank you.

CCTV:

The third plenary session of the 20th CPC Central Committee has made specific arrangements for deepening reforms in the civil affairs sector. What reform tasks have the civil affairs authorities undertaken? How will these be advanced going forward? Thank you.

Lu Zhiyuan:

Thank you for your questions. The third plenary session of the 20th CPC Central Committee has made specific arrangements for comprehensively deepening reforms in the civil affairs sector. These focus mainly on social assistance, children's rights protection, services for people with disabilities, addressing population aging, elderly care services, social organization management and charitable initiative development. We'll adhere to a people-centered approach, strengthen institutional building as our main task, focus more on problem-solving, and emphasize institutions and mechanisms, striving to improve four key systems.

First, we will refine our policies and systems. We will accelerate the formulation of policy documents to deepen the reform and development of elderly care services, promote the high-quality development of charitable initiatives, strengthen and improve the management of funeral services, and step up efforts to ensure welfare for children facing adversity. We will refine the top-level design in these areas and expedite legislation in fields including social assistance, elderly care services, and funeral services.

Second, we'll refine service-ensuring systems. We'll focus on providing inclusive services, meeting essential needs and cushioning those most in need. For service beneficiaries, we'll adapt to people's aspirations for a better life and strive to gradually expand support from special groups to a broader range of those in need within our means. Regarding service content, we'll shift from primarily providing financial and material support for groups with special difficulties to a balanced emphasis on both funding and services, as well as material and spiritual assistance. Simultaneously, we'll work on formulating the civil affairs development section of the 15th Five-Year Plan, address gaps in civil affairs service facilities, utilize idle resources effectively, and optimize service resource allocation.

Third, we will refine supervision and management systems. We'll expedite the formulation of policies, regulations, norms and standards in areas such as social organization management, charity development and elderly care services. We will also promote the establishment of a comprehensive interagency regulatory mechanism, using new tools like credit-based regulation and the "internet plus supervision" model. We'll intensify oversight of law enforcement, focusing equally on development and regulation to foster healthy growth in relevant sectors.

Fourth, we will refine social participation systems. We'll gradually shift from an approach that primarily relies on government resources to one that is government-led and actively leverages market forces and various social actors. We'll innovate our working methods, transitioning from traditional services to more law-based, standardized and digitally intelligent approaches, promoting high-quality development in civil affairs work.

Next, we will formulate and fully implement targeted policies and measures to achieve new progress and achievements in civil affairs reform. Thank you.

China Financial and Economic News:

In recent years, as China's urbanization has accelerated and large-scale population movements have occurred, a significant number of migrant and left-behind children have emerged. What has the MCA done to care for and protect these children? What further steps will be taken to better support their healthy growth? Thank you.

Lu Zhiyuan:

I would like to invite Mr. Guo to answer these questions.

Guo Yuqiang:

Thank you for your questions. Mr. Lu has already introduced the work done by civil affairs departments in the field of child welfare. Regarding the protection of rights and provision of care services for migrant and left-behind children, civil affairs departments have thoroughly implemented the decisions and plans of the CPC Central Committee, continuously creating a favorable environment for children's healthy growth. Our efforts have focused on four aspects:

First, we've refined our policy framework. We've collaborated with relevant departments to issue a series of policy documents, including guidelines for labor-intensive enterprises to strengthen care for rural left-behind children, opinions on leveraging expertise of social workers, guidelines on improving the care service system for left-behind children, and an action plan to enhance care and protection for migrant children. These documents provide a policy basis for ensuring care and protection for migrant and left-behind children.

Second, we've improved working mechanisms. With the approval from the State Council, we established a working group under the National Working Committee on Children and Women (NWCCW) to safeguard the rights of migrant and left-behind children. The group held plenary sessions to define departmental responsibilities clearly. We also convened a national conference on protecting the rights of migrant and left-behind children, outlining plans and arrangements for this work.

Third, we've launched two special initiatives. The first is a three-year campaign to improve care and services for rural left-behind children and children in difficult circumstances, aiming to enhance the overall quality of our work. The second is a campaign to enhance care and protection for migrant children, focusing on ensuring they have equal access to basic public services, family education guidance, and integration support in their places of residence.

Fourth, we've strengthened grassroots foundations. Civil affairs departments have guided child welfare supervisors and directors in conducting home visits, verifying information, and providing care services. We've also supported local authorities to improve facilities for assisting and protecting minors, enhancing their role in providing guardianship for children in need, training local staff, and encouraging social participation. These efforts have yielded significant results.

Next, we'll leverage the NWCCW's working group to safeguard the rights of migrant and left-behind children. We'll collaborate with relevant departments to mobilize various resources, establish systems, conduct solid work, and continuously improve care and services for these children. Thank you.

China Society News:

By the end of 2023, China's population aged 60 and above reached 297 million. What has the MCA done to actively respond to population aging and promote the development of elderly care programs? What are your plans for future work in this area? Thank you.

Lu Zhiyuan:

Thank you for your question. Actively addressing population aging is crucial to China's overall development and the well-being of millions. In recent years, the MCA has earnestly implemented a proactive national strategy in response to population aging, focusing on people's demands for elderly care services and accelerating the development of the elderly care service system. We've initially established an institutional framework for elderly care services, bringing four shifts in this area. First, we have shifted from providing services only for elderly people with special difficulties to services for the entire elderly population. Second, we have shifted from a model with the government mainly responsible for the supply of elderly care services to a new model with diverse participation from the government, market, and society. Third, we have shifted from providing mainly institution-based elderly care services to coordinating home, community, and institutional care. Fourth, we have shifted from meeting people's basic living needs and providing daily care services to providing quality services that integrate both medical and health care.

Population aging is a reality China must face squarely on its path to modernization. While challenges exist, this demographic shift also presents opportunities. Moving forward, we'll follow the decisions and plans of the CPC Central Committee, earnestly implementing a proactive national strategy to address population aging. We'll integrate concepts of positive aging and healthy aging into all stages of economic and social development, enhance elderly care efforts, and promote high-quality development of elderly care services.

In the area of work on aging, we will meticulously carry out the functions of the Office of the National Working Commission on Aging in terms of comprehensive coordination, supervision and organization, so that we can enhance overall work coordination in response to the aging of the population. We will improve the mechanism for implementing the national strategy for addressing population aging, compile and execute plans on the development of aging programs, continuously refine the social security system, elderly care services and health support, building an elderly-friendly society. We will ensure funds, services and institutions to safeguard support, care and fulfillment for the elderly. Focusing on pressing difficulties and problems that concern the elder jointly with relevant departments, we will concentrate efforts to bring about concrete welfare to the elderly in terms of preferential policies, entertainment, law support, volunteer services, technological facilities and financial benefits. In terms of elderly care services, we will mainly focus on four aspects:

First, we will improve the elderly care service network. Just as there are schools for education and hospitals for health care, corresponding institutional facilities and networks are also necessary for elderly care services. We will prioritize the construction of integrated elderly care service platforms in counties and districts, regional elderly care service centers in towns, townships and urban sub-districts as well as elderly care stations in villages and communities, so as to build a three-tiered elderly care service network that spans counties (districts), towns and townships (urban sub-districts), and villages (communities). In other words, we will comprehensively establish an overall network for elderly care services. 

Second, we will optimize the service supply layout. In response to the habits and preferences of the majority of the elderly who prefer to live at home, we will establish good community elderly care services. We will provide home-based services assisting the elderly living at home with meals, bathing, cleaning, mobility, medical care and emergency, thereby consolidating the foundational status of home-based elderly care services. Focusing on the needs of the elderly and leveraging the supporting role of community elder care, we will develop service projects such as daytime care, senior dining rooms and rehabilitation nursing, so that the elderly can enjoy their retirement right at their doorsteps. We will also harness the professional supporting role of elder care institutions, leveraging their functions in innovative demonstration, service skills training and equipment promotion and application, as well as enhance care services for disabled and incapacitated elderly people. This will create a coordinated and aligned supply structure for elderly care services covering the levels of home, community and institutions.

Third, we will promote the coordinated development of the elderly care service programs and industries. We will fully harness the roles of a capable government, an effective market and a compassionate society to form a virtuous cycle where programs drive the industries and the industries support the development of the programs. We will support and cultivate specialized, branded and chained market entities in elderly care services, expand consumption on elderly care services, and develop and strengthen the silver economy.

Fourth, we will strengthen comprehensive supervision on elder care services. We will strengthen supervision over the quality and safety of elderly care services and improve regulatory systems and rules for emerging areas such as home-based and community-based services, integrated medical and elderly care services, assisted catering services and retirement communities. We will enhance the development of elderly care service standards, promote openness and transparency in elderly car service projects, processes and pricing, and assure the elderly with quality services.

Through the concerted efforts of society as a whole and the effective implementation of the national strategy for addressing population aging, by 2035 China's elderly care service system with Chinese characteristics will be mature and well-established. The majority of elderly people will enjoy basic elderly care services, share the benefits of economic and social development and live a happy life in their twilight years. Thank you!

China News Service:

The establishment of senior dining rooms in residential areas has addressed the dining difficulties of many elderly people, especially those who are advanced in age and live alone. Could you please provide an overview of the progress and achievements in the deployment of assisted catering services for the elderly since its inception, and share your plans for further advancement? Thank you.

Lu Zhiyuan:

I'll leave this question to Mr. Tang Chengpei.

Tang Chengpei:

Thank you for the question from China News Service. As you mentioned earlier, assisted catering services are among the top needs of the elderly. Some elderly people, especially those who are advanced in age, empty-nesters, live alone or are incapacitated, face difficulties in cooking and dining. This is a concern for the elderly themselves, their families and society at large. As Mr. Lu Zhiyuan mentioned earlier, the CPC Central Committee attaches great importance to assisted catering services for the elderly. Last October, the executive meeting of the State Council reviewed and approved an action plan to promote the development of meal services for the elderly, which this year has been included in the National Working Commission on Aging's list of elderly-oriented livelihood initiatives. Civil affairs departments at all levels have organized and implemented these initiatives, and positive results have been achieved in assisted catering services for the elderly.

First, supportive policies have been accelerated. This year, the central government has allocated 300 million yuan in guidance funds to support the development of assisted catering services for the elderly. Based on their own financial capacity and actual conditions, various regions have provided preferential measures for assisted catering services for the elderly and supportive policies for service enterprises and operating entities. At the same time, they have encouraged public welfare and charitable organizations, as well as philanthropic enterprises and individuals, to actively participate by providing support through government subsidies, corporate discounts and social donations.

Second, the service network has been continuously expanded. Based on local conditions, various regions have issued assisted catering services work plans and supporting measures. By expanding the functions of elderly care service institutions, integrating and utilizing idle community resources and renovating existing facilities, new dining rooms for the elderly have been established, and the assisted catering service network for the elderly has been expanded. In some places, a 15-minute assisted catering service circle for the elderly has been formed, allowing the elderly to enjoy convenient assisted catering services right at their doorsteps.

Third, the model of assisted catering services for the elderly has been increasingly enriched. In the practice of providing services for the elderly, different places have developed the model of "elderly care institutions plus assisted catering services" in accordance with local conditions. In the past, the catering service offered by elderly care institutions only served the elderly within these institutions. Now through the expansion of functions, these institutions can provide assisted catering services to the elderly living in society, making better use of existing resources. There are also the models of "social catering plus entrusted services," "community canteens plus dining tables for the elderly," "central kitchen plus professional delivery," "online platform ordering plus offline delivery," "dining tables plus desks" and other models. In some elderly canteens, tables are used for meals during dining times and then become desks where elderly people can learn about health and elderly care. All these have offered a wide variety of options for elderly people.

Fourth, quality and safety have continued to be strengthened. All localities have made efforts to promote the development of standardized, procedure-based assisted catering services for the elderly as well as advance the application of information technology within these services. A coordinated mechanism for supervision has been established where the Ministry of Civil Affairs takes the leading role, multiple departments participate and local governments take on jurisdictional responsibilities. Supervision and inspection have been strengthened. To ensure the safety of assisted meals, food safety must first be safeguarded. It is necessary to ensure that every bite of food is safe for the elderly.

Overall, positive results have been made in developing assisted catering services, which are popular among older people. Next, we will conscientiously implement the decisions and plans of the Party Central Committee and the State Council by increasing the coverage and improving the quality and effectiveness of assisted catering services for the elderly in an orderly manner.

First, we will further improve policies and measures. We will adhere to a combination of attributes from public welfare and market mechanism, as well as will prioritize the function of assistance and work with relevant departments to improve and implement supportive policies, focusing on serving the catering needs of those advanced in age, empty nesters, those living alone, those incapacitated and those facing other special difficulties in order to help market entities reduce costs and increase efficiency, so as to achieve sustainable development.

Second, we will further strengthen category-based guidance. Based on the needs of the elderly and respecting their wishes, we will follow a fact-based approach to set goals and implementation procedures that are in accordance with local conditions, steadily expand the service network and improve service capacity.

Third, we will further promote experience and models. We will guide all localities to make good use of the central government's guiding funds, strive to set up a batch of high-quality venues offering assisted catering services and service brands, cultivate a batch of specialized, chained and large-scale institutions, create more perceptible, accessible and sustainable models, and do more practical work to develop assisted catering services, so as to deliver benefits to the elderly. Thank you!

Cover News:

In recent years, many social organizations have become active in social governance at the primary level, playing an important role. What work has been done by the Ministry of Civil Affairs with promoting the role of social organizations in contributing to high-quality development? What achievements have been made? Thank you.

Lu Zhiyuan:

We will have Mr. Liu Xitang, director general of the General Office of the MCA, answer these questions.

Liu Xitang:

Thanks to this reporter for their questions. Social organizations are an important force for the advancement of socialist modernization. In recent years, the Ministry of Civil Affairs has given top priority to the key task of advancing high-quality development, has taken solid steps to carry out registration and management of social organizations and has guided and encouraged social organizations to take on responsibility, exceling in their work. I can summarize the contributions in four aspects:

The first contribution is to scientific and technological innovation. In response to major national strategies, we actively cultivate and develop scientific and technological social organizations in order to form a dynamic force for building a strong scientific and technologically advanced country. At present, there are about 24,000 social organizations actively participating in the key fields of science, technology and research, of which 530 are registered in the Ministry of Civil Affairs such as the China Association of Agricultural Science Societies and the Chinese Pharmaceutical Association. These are all scientific and technological social organizations that have relatively long histories and play prominent roles. We have conscientiously conducted annual inspections, evaluations and trainings to promote the internal governance of scientific and technological social organizations, improve service capabilities and to gather strength for the achievement of greater self-reliance and strength in science and technology.

The second contribution is to economic development. Modern economic and social development depends on industry associations and chambers of commerce. We have made plans for and carried out special actions for industry associations and chambers of commerce to provide high-quality development, propelling over 100,000 industry associations and chambers of commerce nationwide to be good assistants to the government, good helpers to enterprises and good promoters for the industry, thus contributing to China's economic development with practical actions. According to incomplete statistics, since 2023 industry associations and chambers of commerce at all levels have put forward nearly 65,000 policy recommendations to relevant government departments, provided about 1.7 million consulting services, held about 71,000 exhibitions, expositions and fairs, and have helped enterprises to match up about 33,000 investment attraction projects.

The third contribution is to rural revitalization. Just as Mr. Lu mentioned, we have worked with relevant departments to carry out special campaigns for social organizations to contribute to rural revitalization, mobilizing and guiding willing and capable social organizations to pair up with 160 key counties designated to receive assistance with pursuing rural revitalization. Up to now, we have guided social organizations of various types and at all levels nationwide to participate in the implementation of nearly 30,000 rural revitalization projects, with an investment of more than 35 billion yuan. We have also carried out projects for the central government to support the participation of social organizations in social services for 10 consecutive years. With a continuous investment of 1.7 billion yuan, we have supported social organizations to launch over 3,800 social service projects focusing on underdeveloped regions since 2012.

The fourth contribution is to international cooperation. We have encouraged the establishment of a large number of international science and technology organizations in China, such as the International Panel of Mesoscience (IPM), support international science and technology organizations to expand international science and technology exchange and cooperation, and have engaged in global science and technology governance. For example, work done by the Global Energy Internet Development Cooperation Organization has covered 142 countries and regions, with nearly 60 international cooperation agreements already signed and more than 50 international conferences held. The Belt and Road Initiative International Green Development Coalition has supported the implementation of projects such as the Green Silk Road Envoy Program and, in 2023, provided training to over 3,000 people in more than 120 developing countries.

Next, we will work with relevant departments and continue our efforts with the cultivation and guidance of social organizations as well as their regulation and management, so as to enable social organizations to better serve the country, society, the public and the industry. Thank you.  

China Daily:

Recently, we've noticed that the Ministry of Civil Affairs has been carrying out a rural geographic naming campaign , which enables many small streets, alleys and small shops located in the countryside to be searchable on mobile phones' map services. Can you talk about this in detail? Thank you.

Lu Zhiyuan:

We will have Mr. Tang Chengpei answer this question.

Tang Chengpei:

Thanks to the reporter from China Daily for your question. Names of places in rural areas are a "data base" for rural governance and basic information for urban-rural exchange, carrying local citizens' beautiful nostalgia and inheriting local histories and cultures. With the in-depth implementation of a rural revitalization strategy, the production, livelihood and ecological space of rural areas have been continuously optimized, which has put forward higher requirements for quantity density, standardization and cultural inheritance of rural places' names. The Ministry of Civil Affairs has thoroughly implemented strategic plans made by the Party Central Committee with advancing all-round rural revitalization; has focused on the problem of insufficient construction for rural geographical names; has learned from and applied experiences gained from the Green Rural Revival Program in Zhejiang province; and has launched the rural geographic naming campaign. Just now, Mr. Lu also mentioned this work. 

The place-naming campaign encompasses both the tasks of naming places and setting up signs, as well as the goal of helping previously less-known places gain fame. It leverages the collecting and mapping of place names to drive advancements in place naming, installing place name signs, cultural preservation, information services and application empowerment. We actively utilize the inherent value and historical significance of place names to foster high-quality rural development. Since its inception last year, this initiative has been rolled out nationwide, producing substantial outcomes.

In terms of modernizing rural governance, the network of rural place names has expanded significantly. As of August, 430,000 rural place names had been standardized nationwide, with 330,000 rural place name signs installed and 14.42 million building and door plaques affixed. Issues such as places without names and multiple names for a single place in rural areas have been continuously addressed. Some areas have promoted creating maps for villages, so that visitors can look up directions on maps instead of asking around. Some areas have implemented QR code signs, which enable bill payments and administrative services online, making rural life more convenient and modern.

Regarding the cultivation of good social civility, the cultural value of good place names continues to be highlighted. Thanks to geographic names, we can find our way home, so they are not to be forgotten. They also offer a means for our cultural heritage to be passed down through generations, and this carrier of cultural inheritance shouldn't be interrupted. We fully leverage the unique advantages of place names in preserving historical culture and local customs and pay attention to the cultural connotations of newly created rural place names. Many regions have created place names that reflect cultural heritage, national spirit, and contemporary style. These names reflect the era's charm. We also prioritize protecting old place names. Twenty-three provinces have established systems for place name protection inventories, with over 30,000 traditional rural place names now under protection, safeguarding our collective spiritual heritage. 

Place names continue to play a key role in boosting industrial revitalization. We've guided internet map platforms to present correct and consistent names of over 9 million rural places and mobilized the public to discover more than 800,000 points of interest based on map place names, such as agritourism sites and picking gardens. Related navigation services have been used for more than 10 billion times. Rural residents now enjoy convenient transportation navigation. The use of these maps also facilitates backpacking, self-driving tours, and the delivery of both parcels into villages and rural goods to urban areas, serving the two-way flow of urban-rural resources. Various regions have explored the brand value of geographic names, creating agricultural products branded with local names. Place names are now deeply integrated with rural e-commerce, platform economies and agritourism development.

In supporting ecological conservation, the foundational role of place names continues to strengthen. In provincial border regions and western areas, the names of natural geographic features are a key focus of the rural place-naming campaign, addressing the issue of many places left unnamed and a lack of standardized place names in ecologically fragile areas. We have intensified efforts to name mountains, rivers, forests, fields, lakes, grasslands, and sands. By establishing inter-departmental data co-construction and sharing mechanisms, we're providing fundamental support for environmental protection.

Moving forward, we will further implement the spirit of the third plenary session of the 20th CPC Central Committee. We'll focus on strengthening the foundation for place-naming, innovating ways of using the names, building up reputations of places by showing their distinctive features, and shaping famous brands. This will fully demonstrate and spread the value of rural place names, and let people know that our beautiful villages are worthy of their good names, thus promoting rural revitalization. Thank you.

Shou Xiaoli: 

Please continue with your questions.

N Video from Nanfang Metropolis Daily:

In recent years, public interest, discussion and participation in philanthropy and charity have been rising. The third plenary session of the 20th CPC Central Committee emphasized supporting the "development of public interest activities and charities." What measures will the MCA take to promote charitable development? Thank you.

Lu Zhiyuan: 

I would like Mr. Liu to answer this question.

Liu Xitang: 

Thank you for your question. As you mentioned, public interest in philanthropy and charity is growing. To date, over 15,000 charitable organizations have been registered nationwide, playing a significant role in rural revitalization, education, culture, healthcare, ecological conservation and emergency response. Looking ahead, we'll focus on implementing the Charity Law and maintaining a balanced approach to promotion and regulation. We aim to enhance the high-quality development of philanthropy and charity through three main strategies.

The first strategy involves strengthening our institutional framework. As you know, the revised Charity Law took effect on Sept. 5 this year. The MCA is developing complementary policies. We've already implemented three key regulations: Measures for the Management of Personal Assistance Online Service Platforms, Measures for the Administration of Charitable Organizations' Fundraising from the Public, and Measures for the Accreditation of Charitable Organizations. The first measures were newly established, providing clear guidelines for related platforms for the first time. The other two measures contain revisions to optimize the requirements for applying for public fundraising qualifications, standardize public fundraising activities, and refine the criteria for accreditation of charitable organizations. We plan to formulate or revise eight regulatory policies related to the management of charitable organizations, charitable trusts, management of public fundraising platforms, and information disclosure. Additionally, we will develop policy documents to advance the high-quality development of philanthropy in the new era. Mr. Lu has also mentioned initiatives such as the proposed amendments to the Regulation on Foundation Administration. Through these comprehensive efforts, we aim to establish a solid regulatory framework for philanthropic activities.

Second, we will enhance supervision of charitable activities. Transparency and credibility are the cornerstones for the development of charity. Recently, the Ministry of Civil Affairs (MCA) has conducted two main tasks: First, we have advanced a sunshine-themed project to offer guidance and supervision for all kinds of charitable organizations to disclose information thoroughly and faithfully in accordance with related laws and regulations. Second, we have planned and carried out a special action to fully identify and remedy management loopholes and hidden risks of charitable organizations, further regulating their behaviors and improving ethics within the charity field. In addition, we will work with relevant departments to quickly establish a comprehensive supervision mechanism to promote the healthy development of the charity industry. 

Third, we will improve the mechanism for guidance and support. We will fully leverage means such as the Charity Day of China commendations in order to promote Chinese traditional moral values and disseminate modern concepts regarding charity. Especially, we will work with relevant departments to implement favorable tax policies and measures providing incentives and support, constantly innovating and broadening channels for charity engagement. We will vigorously develop community charity to meet the requirements of the newly revised Charity Law. We will explore ways to develop charitable trusts and regulate the development of online charity, among others. We will guide and support willing and capable enterprises, social organizations and individuals to actively take part in charitable work, thus creating an environment of full public participation. 

The ninth Charity Day of China was marked on Sept. 5 of this year. Under the theme of "upholding moral values and conducting and developing charitable work lawfully," we held colorful promotional activities nationwide, with many media outlets providing in-depths coverage. For this, please accept my gratitude. Thank you! 

Shou Xiaoli:

One last question. 

Hong Kong Bauhinia Magazine: 

Social assistance forms an important part of the social security system. Please update us on the work done to improve the social assistance system and ensure basic living for people in difficulty. Also, what will future work focus on? Thank you. 

Lu Zhiyuan:

Thank you for your questions. I will answer them. People pay much attention to social assistance, because it is an important part of the duty of civil affairs departments to secure citizens' basic living. It is also an important institutional arrangement for solving problems for those in difficulty, improving well-being and boosting social harmony. In recent years, the MCA has implemented the decisions and arrangements of the CPC Central Committee and the State Council, focusing on the goal of improving the urban-rural coordinated, multi-tiered and categorized support system. We have continued to improve the institutions, innovate the mechanisms and ensure the implementation of all work, providing a safety net for ensuring the basic needs of the people in difficulty. We mainly have made efforts in the following aspects to ensure social assistance.

First, we have focused on ensuring basic living, creating a multi-tiered assistance framework to enable fuller coverage. We are expediting the building of a dynamic monitoring platform for the country's low-income population, improving the system of indicators for monitoring and early warning as well as gathering changing information regarding low-income individuals. Besides determining who is eligible for subsistence allowances and who live in extreme difficulty, we also have made thorough efforts to identify families on the verge of needing subsistence allowances and families facing difficulties due to necessary and unavoidable expenses, thus establishing a framework that offers multi-tiered assistance according to the level of difficulty encountered. 

Second, we have focused on making precise efforts and offering targeted assistance. We are enhancing information sharing with relevant departments. By comparing data, especially by integrating big data and field visits to gather information, we strive to pinpoint people eligible for policy support, supplementing the traditional approach where people apply for policy support. We are improving the mechanism for checking family economic situations and working to connect information checking systems across the country. We are guiding local governments to address weaknesses and implement special assistance in the fields of medical care, education, housing and employment, accurately matching supply and demand of assistance to effectively deliver assistance and support. Meanwhile, we are piloting service-oriented social assistance, improving the mechanism for aligning government assistance and charitable support to better meet the multi-tiered, differentiated needs for assistance. 

Third, we have focused on delivering solid results, fully leveraging the advantages of our systems to achieve synergy and efficiency. We have let the coordination mechanism of the joint conference on social assistance fully play its role and have effectively coordinated assistance resources between departments, pooling efforts to provide assistance. We have guided local governments to establish and improve a working mechanism where different departments offer categorized assistance and support to eligible people recognized by civil affairs departments. For example, human resources and social security departments provide employment related assistance. Education departments provide education assistance, and healthcare security departments provide assistance related to medical care. We have set up a working mechanism for helping low-income individuals, enabling unified information documentation, dynamic monitoring, tiered management, targeted policy and resources delivery as well as categorized support and results feedback. We have created separate assistance chains for each household or person, making assistance lists and boosting the well-being of people in need through support from different channels. 

We will continue to deepen reforms in social assistance, advance related legislation and establish and improve a social assistance system with Chinese characteristics that features full coverage, tiered and categorized support, resources coordination, comprehensiveness and high efficiency. We will enhance the dynamic monitoring and risk warning of low-income groups and set up a regular assistance and support mechanism, providing fuller and better support for people in difficulty through social assistance. Thank you. 

Shou Xiaoli:

Thank you, Mr. Lu and all other speakers. Thanks to the reporters for participating. Today's press conference is hereby concluded. See you all. 

Translated and edited by Zhang Rui, Wang Wei, Zhang Jiaqi, Wang Qian, Li Xiao, Li Huiru, Wang Ziteng, Huang Shan, Xu Kailin, Ma Yujia, Liao Jiaxin, Liu Sitong, Yuan Fang, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Rao Lixin, deputy commissioner of the State Taxation Administration (STA)

Mr. Huang Yun, spokesperson of the STA and director general of the General Office of the STA

Mr. Dai Shiyou, director general of the Tax Policy and Legislation Department of the STA

Mr. Shen Xinguo, director general of the Taxpayer Service Department of the STA

Chairperson:

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

Date:

Sept. 20, 2024 

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO) as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Rao Lixin, deputy commissioner of the State Taxation Administration (STA), to brief you on relevant developments and to take your questions. Also present today are Mr. Huang Yun, spokesperson of the STA and director general of the General Office of the STA; Mr. Dai Shiyou, director general of the Tax Policy and Legislation Department of the STA; and Mr. Shen Xinguo, director general of the Taxpayer Service Department of the STA. 

Now, I'll give the floor to Mr. Rao for his briefing. 

Rao Lixin:

Thank you, Ms. Shou. Ladies and gentlemen, friends from the media, good afternoon. First of all, I would like to sincerely extend my gratitude to the taxpayers, fee payers and all sectors of society for their long-term concern, understanding and support for taxation work. Today, my colleagues and I will discuss with you all the subject of promoting high-quality development through taxation.

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, the national tax system has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council. It has conscientiously fulfilled the responsibilities of tax departments, comprehensively deepened the rule of law in taxation, promoted digital and intelligent upgrades in tax management as well as enforced strict tax regulation. Efforts have been made to create efficient tax services, solidly advance the practice of modern taxation with Chinese characteristics and actively serve high-quality development. This is mainly reflected in four areas:

We are committed to helping enterprises develop by effectively implementing preferential tax and fee policies. Since the beginning of this year, the tax authorities have adhered to collecting tax and fee revenues according to laws and regulations, continuously deepening the "policy to person" approach. Relying on big tax data, they intelligently match preferential policies with applicable individuals and entities as well as carry out targeted policy pushes at specific times to 360 million entities and individuals, sending out 540 million pieces of various preferential tax and fee policy information and ensuring that structural tax and fee reduction policies are solidly implemented. Especially following last year's Central Economic Work Conference, this year's annual sessions of China's National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPPCC), which emphasized focusing on supporting scientific and technological innovation as well as the development of the manufacturing industry, efforts have been intensified to implement relevant tax and fee support policies. From January to August of this year, the main policies supporting scientific and technological innovation and the development of the manufacturing industry have resulted in tax and fee reductions as well as tax refunds exceeding 1.8 trillion yuan, adding momentum for accelerating the development of new quality productive forces.

We adhere to the principle of putting the people first and continuously strive to enhance the level of tax and fee services. Focusing on "efficiently accomplishing one task," we have continuously implemented the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs." In 2024, we integrated and launched a series of service measures benefiting the public and enterprises. The new electronic tax bureau, with unified standards, has been launched nationwide, reducing the time for tax handling by 20% compared to the past and making tax and fee payments more convenient. We are steadily promoting the comprehensive digitalization of electronic invoices to further enhance taxpayer convenience with using invoices. Additionally, we are vigorously promoting innovative measures such as "reverse invoicing" from recycling enterprises to sellers of scrapped products, actively aiding in large-scale equipment upgrades and the renewal of consumer goods.

We uphold fairness and justice, vigorously maintaining economic and tax order. We continuously establish and improve a dynamic "credit + risk"-based regulatory mechanism, always adhering to law enforcement that is strict, well-regulated, fair and civilized. We avoid disturbing law-abiding businesses while cracking down on tax-related crimes based on laws to effectively maintain economic order and national tax security. Simultaneously, the STA conducts in-depth research and has launched a series of measures to assist in attracting investment to pursue high-quality development, resolutely upholding the integrity of the unified national market.

We practice opening up and sharing, deepening international tax exchange and cooperation. We have expanded China's tax treaty network to 114 countries and regions, strengthened the building of the "TaxExpress" cross-border service brand, and promoted information, policy and service connectivity for cross-border investments. Simultaneously, we are deeply integrated into international tax governance, serving high-level opening up and high-quality joint development of the Belt and Road Initiative. On this occasion, I would also like to announce that the fifth Belt and Road Initiative Tax Administration Cooperation Forum (BRITACOF) will be held in Hong Kong from Sept. 24 to 26. Thank you for your attention.

This year marks the 75th anniversary of the founding of the People's Republic of China and is a crucial year for achieving the goals and tasks of the 14th Five-Year Plan. The third plenary session of the 20th CPC Central Committee made important arrangements to further deepen reform comprehensively and to advance Chinese modernization. Next, we will intently study and implement the guiding principles of the session, focusing on the implementation of various tax-related reform tasks with relentless perseverance. We strive to make new progress in tax affairs, enhance our capacities and levels to serve high-quality development better, and make greater contributions to building a great country and advancing national rejuvenation on all fronts through Chinese modernization. Thank you. 

Shou Xiaoli:

Thank you, Mr. Rao, for your introduction. We'll now move on to the Q&A session. Please raise your hand if you have a question.

CCTV:

We know that the third plenary session of the CPC Central Committee has outlined plans for deepening fiscal and tax system reforms, garnering widespread attention. Could you please explain how the tax department will implement the principles of the third plenary session of the CPC Central Committee and further advance reforms in the tax sector? Thank you.

Rao Lixin:

Thank you for your question. The resolution adopted at the third plenary session of the CPC Central Committee lays out strategic, systematic and forward-looking arrangements for further deepening reform comprehensively and advancing Chinese modernization. It positions tax reform as a crucial component of improving the macroeconomic governance system. The resolution incorporates tax reform into major national strategies, including building a high-level socialist market economic system, promoting high-quality economic development, cultivating new quality productive forces, and supporting comprehensive innovation. This underscores the important responsibilities and mission of reforms in the tax sector.

The resolution of the third plenary session of the CPC Central Committee outlines nearly 30 reform tasks directly related to the tax department. It sets overall requirements for improving the tax system and optimizing tax structure to be "conducive to high-quality development, social fairness, and market unification." It also makes specific requirements for the reform of multiple tax types, including value-added tax, consumption tax, and individual income tax. The resolution calls for the full implementation of the principle of legality of taxation and proposes several social insurance premium reform tasks related to the tax department. It covers both tax system reforms and reform of the tax collection and administration system. While making specific arrangements for deepening tax reforms, it also outlines the tax department's role in reforms related to science and technology, the rule of law, people's livelihoods, and ecology. These tax-related reform arrangements are ambitious, comprehensive, responsibility-laden, and practical, providing a clear roadmap for deepening tax reforms over the next five years and beyond.

The national tax system continues to study and thoroughly implement the principles of the third plenary session of the CPC Central Committee. We are aligning our work with the resolution's requirements, considering the realities of tax work, and carefully formulating implementation plans for tax-field reforms. We're establishing a working mechanism where the principal leader of the Party and government takes overall responsibility for implementing reforms, refining the division of responsibilities, and clarifying the roadmap and timetable for each reform item. Moving forward, we will continue to strengthen communication and cooperation with departments such as finance and the development and reform commissions at all levels. We'll listen closely to suggestions from all parties on deepening tax reforms and integrate the implementation of the resolution's tax-related reform plans with ongoing tax work. Through these reforms, we aim to increase efficiency and strengthen capabilities, promoting high-quality tax practices for Chinese modernization in a sound and sustainable manner. This will help achieve the reform goals set by the third plenary session of the CPC Central Committee at a high level. Thank you.

Economic Daily:

Tax data is an important economic indicator that can directly reflect the state of economic operations. From the perspective of tax data for the first eight months, what are the highlights of China's high-quality development?

Rao Lixin:

Mr. Huang will answer the question.

Huang Yun:

Thank you for your question. High-quality development is our primary task in building a modern socialist country in all respects. Since the beginning of this year, all regions and departments have continued to apply the new development philosophy in full, in the right way, and in all fields of endeavor and move faster to create a new pattern of development, and focus on promoting high-quality development, achieving new results. From the perspective of tax data, this is mainly reflected in six aspects.

First, innovative industries continue to expand. Value-added tax invoice data shows that from January to August this year, the sales revenues of China's high-tech industries and intellectual property (patent)-intensive industries increased by 11.6% and 8% year on year, respectively.

Second, the proportion of high-end manufacturing has increased. Value-added tax invoice data shows that from January to August this year, the sales revenues of China's equipment manufacturing industry grew by 5.5% year on year, which was 0.9 percentage point higher than the average growth rate of the manufacturing industry. Meanwhile, the proportion of equipment manufacturing sales revenue in the total sales revenue of the entire manufacturing industry reached 44.3%, up 0.4 percentage point compared to the same period last year.

Third, the integration of digital and real economies is deepening. Value-added tax invoice data shows that from January to August this year, the sales revenues of China's core digital economy industries grew by 8.2% year on year. The amount spent by enterprises on digital technologies increased by 8.6% year on year, reflecting improvements in both digital industrialization and industrial digitization.

Fourth, market circulation is becoming more fluid. Value-added tax invoice data indicates that from January to August this year, inter-provincial trade among enterprises nationwide increased by 3% year on year, accounting for 40.7% of total sales volume. This is 0.5 percentage point higher than the same period last year. Additionally, the sales revenue of the transportation and logistics industry increased by 9.9% year on year. These figures reflect steady progress in the development of a unified national market.

Fifth, green and low-carbon development has accelerated. Value-added tax invoice data shows that during the January-August period, sales revenue for green technology services in new energy, energy conservation, and environmental protection grew 24%, 19.9% and 5.8% year on year, respectively; sales revenue for clean energy power generation increased 12.4% year on year; and sales revenue for new energy vehicle manufacturing rose 33.6% year on year.

Sixth, the level of openness continues to improve. Tax data shows that during the first eight months, enterprises received 10.1% more direct export rebates compared to the same period last year, demonstrating the resilience and rapid growth of China's exports. Meanwhile, tax refunds to overseas shoppers leaving China increased by 150% year on year, indicating a rising interest in visiting China among foreign tourists. Thank you.

Changjiang Daily:

Individual income tax affects millions of households. The government has increased the standards for special additional deductions, including those for children's education and elderly care. What's the current progress on this? Thank you.

Shen Xinguo:

Thank you for your question. I believe most attendees here today can feel the tangible benefits this policy brings. To further reduce family expenses on childbirth, childcare, and elderly care, the State Council decided that from Jan. 1, 2023, the standards for special additional deductions would be increased for the care of children under 3 years old, children's education, and elderly care. Specifically, the deduction amounts for the care of children under 3 and for children's education have both increased from 1,000 yuan to 2,000 yuan per month per child. The deduction amount for elderly care has increased from 2,000 yuan to 3,000 yuan per month.

After the policy's release, tax authorities swiftly implemented it. We promptly adjusted and upgraded information systems to facilitate taxpayers' applications for deductions under the new policy. We also compiled explanatory materials and enhanced targeted publicity to ensure taxpayers could benefit as soon as possible. These efforts have yielded good results. Data from the individual income tax final settlement, which concluded at the end of June, shows that about 67 million people benefited from this policy in 2023. The total tax cuts surpassed 70 billion yuan, with an average reduction of over 1,000 yuan per person. Specifically, tax cuts for children's education, elderly care, and care for children under 3 years old were about 36 billion yuan, 29 billion yuan, and 5 billion yuan, respectively. The policy's coverage, total tax reduction, and intensity of tax cuts were substantial, providing timely benefits to taxpayers caring for both elderly parents and young children.

Looking ahead, we will continue to focus on issues affecting people's living standards. We will implement practical measures to fully release the benefits of tax policies, and strive to make greater efforts and contributions to improving people's livelihoods and well-being. Thank you.

National Business Daily:

The third plenary session of the 20th CPC Central Committee further emphasized the importance of building a unified national market. What measures has the tax department taken to support this goal? Thank you.

Rao Lixin:

Thank you for the question. The third plenary session proposed building a unified national market, facilitating the smooth flow of production factors, efficient allocation of all types of resources, and full realization of market potential. In recent years, tax authorities have deeply implemented the decisions and arrangements of the CPC Central Committee and the State Council on accelerating the building of a unified national market. We have performed our duties and played our roles. Our focus has been on creating a conducive environment supported by favorable tax policies, effective enforcement, and enhanced services regarding taxes and fees.

We have enhanced fair competition review on new policies and documents, and made efforts to eliminate policies and measures that impede a unified market and fair competition, as well as tax-related laws, regulations and policies that treat enterprises unequally. We have improved the multi-channel mechanism and set up direct contact points for reporting problems so that we can quickly respond to issues reported by people working at the primary level as well as tax and fee payers and improve the fairness and certainty of policies. Since 2023, we have published 168 related policy Q&As and jointly or independently updated, compiled, and published 13 guides on favorable tax policies to facilitate sci-tech innovation, manufacturing development, and coordinated development.

We have revised and refined the code of conduct for tax collection and administration, further boosting national-level standardization in this field. Meanwhile, we have offered guidance for tax authorities in various regions to launch unified discretion standards for tax administrative penalties. These regions include the Yangtze River Delta region and the northeastern, northern, northwestern, southwestern, and central southern parts of the country. As a result, the unity and standardization of tax enforcement have been strengthened.

We have further facilitated cross-regional relocation for enterprises by launching a series of measures to optimize advance notifications, expedite ongoing processes, and improve post-relocation services. At present, eligible taxpayers can complete cross-regional relocation procedures as quickly as within one day. At the same time, we have continued to expand cross-regional tax and fee services. In March, we launched a pilot program for "remote virtual windows" in local tax service centers, which has since processed 164,000 cross-regional tax and fee transactions for taxpayers and payers.

In accordance with the arrangements of the CPC Central Committee and the State Council, we have actively collaborated with relevant departments to firmly oppose any investment attraction practices that violate regulations and undermine national market unity and fairness. The STA and provincial-level tax bureaus have set up leading groups to regulate tax-related issues stemming from irregular investment attraction practices. We have implemented a regular monitoring index system to promptly identify, warn about, and investigate suspicious activities. Working with relevant departments, we have also publicized typical cases of tax-related irregularities in investment attraction to promote regulation through case studies.

Looking ahead, the tax authorities will act upon the arrangements made by the third plenary session of the 20th CPC Central Committee. We will further elevate our political awareness, redouble our efforts, and enhance tax collection and administration services. We remain committed to contributing to the development of a unified national market through our tax-related initiatives. Thank you!

21st Century Business Herald:

The manufacturing industry forms the foundation of the real economy. Could you use tax revenue data to illustrate the current state of manufacturing development? Additionally, what role have structural tax and fee reduction policies played in supporting the development of the manufacturing sector? Thank you.

Dai Shiyou:

Thank you for your questions. The manufacturing industry is the foundation of a nation and the base of its strength. According to value-added tax (VAT) invoice data, from January to August this year, China's manufacturing industry sales revenue grew by 4.6% year on year, showing steady improvement. Three main characteristics are evident:

First, the manufacturing industry's role as an economic stabilizer continues to strengthen. VAT invoice data shows that from January to August, the sales revenue of China's manufacturing industry accounted for 29.7% of total sales revenue, up 0.8 percentage point over the same period last year.

Second, the manufacturing industry is gradually moving up the value chain towards medium and high-end production. VAT invoice data shows that from January to August, the sales revenue of China's high-end equipment manufacturing and high-tech manufacturing sectors represented 16.5% and 15.6% of total manufacturing sales revenue, respectively. These figures represent an increase of 0.5 percentage point and 0.6 percentage point over the same period last year, respectively.

Third, the pace of intelligent and green development has accelerated. VAT invoice data reveals that from January to August, China's manufacturing industry increased its digital technology purchases by 10.7% year on year. This boost drove sales revenue in the intelligent equipment manufacturing sector up by 11.5% compared to the same period last year. Additionally, industrial enterprises above designated size increased their procurement of energy conservation and environmental protection services by 19.1% year on year, reflecting intensified efforts by businesses to save energy and control pollution.

For a long time, tax departments have conscientiously implemented the decisions and arrangements of the CPC Central Committee and the State Council, accurately and efficiently implementing preferential tax and fee policies to support the development of the manufacturing industry. This has helped the manufacturing sector relieve operational pressures, encourage innovation, and stimulate development potential. We have eased tax and fee burdens on the manufacturing industry. From 2018 to 2023, newly implemented tax and fee cuts and deferrals for China's manufacturing industry totaled over 4 trillion yuan, representing over 30% of total tax and fee incentives — the highest among all industries. Additionally, we have contributed to the upgrading and transformation of the manufacturing industry. A series of tax-and-fee policies promoting scientific and technological innovation, energy conservation and environmental protection have effectively advanced the transformation and upgrading of manufacturing enterprises towards high-end, intelligent, and green development. Taking the additional deductions for R&D expenses as an example, in 2023, 333,000 manufacturing enterprises enjoyed an additional deduction of 2.03 trillion yuan for R&D expenses, with both the number of enterprises benefiting from these policies and the amount of additional deductions accounting for over 50% of the total, reaching 52.9% and 58.8% respectively.

Moving forward, we will conscientiously implement the guiding principles from the third plenary session of the 20th CPC Central Committee. We will prioritize support for the development of the manufacturing industry, advance the effective implementation of policies, and bring more tangible benefits to enterprises. These efforts aim to better contribute to the high-quality development of the manufacturing sector.

Cover News:

What key initiatives have the tax authorities undertaken to promote efficient one-stop government services? This year marks the 11th consecutive year of the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs" campaign. Could you please update us on its progress? Thank you.

Rao Lixin:

We will have Mr. Shen answer this question.

Shen Xinguo:

Thank you for your questions. The State Council has formulated a list of major tasks for one-stop government services. Seven out of 21 major tasks are tax-related matters. These items are not only a wish list for enterprises and citizens but also a responsibility checklist for tax departments. Since the beginning of this year, we have thoroughly implemented the Guidelines on Further Optimizing Government Services to Improve Government Performance and Promoting One-Stop Government Services, leveraging our functions to enhance the overall efficiency of online and offline government services.

First, we have simplified procedures. For example, we've implemented declaration methods such as "data collection + intelligent pre-filling" and "coordinated tax management + information supplementation," enabling most taxpayers to complete their declarations with just one-click confirmation or minimal information correction. Second, we have promoted business integration. For instance, in the new E-tax China platform, we've created multiple comprehensive tax payment scenarios, integrating matters involving multiple taxes and fees that previously required multiple steps into one-stop services, effectively meeting taxpayers' needs and expectations. Third, we have expanded data sharing. For example, we've deepened cooperation with the General Administration of Customs and other departments to share data and information promptly, improving service efficiency for matters such as export tax rebates for enterprises. Fourth, we have strengthened interdepartmental cooperation. We've actively cooperated with market regulation departments, promoting "one-stop processing" for enterprise information changes and "one-stop online processing" for enterprise deregistration. This helps efficiently complete "one-stop" legal compliance information verification for enterprise listings and enterprise bankruptcy information verification.

While implementing key tasks for one-stop government services, tax departments have conducted the Spring Breeze Action to facilitate tax services for 11 consecutive years. Our efforts have been focused on improving efficiency to serve the public. Being committed to providing one-stop services for taxpayers and fee payers, we have offered innovative services and expanded our service scope to enhance convenience and efficiency.

To improve communication and guidance, we have optimized targeted notifications of preferential tax and fee policies, increasing precision and coverage in reaching targeted groups. We've launched "first lesson" campaigns for new taxpayers, allowing them to access relevant courses while handling services online. Additionally, tax authorities across regions have conducted over 1,500 online video Q&A sessions, effectively disseminating tax and fee policies and addressing common concerns through various methods.

To enhance tax and fee payment convenience, we've expanded payment channels, streamlined required documentation, and further reduced burdens on taxpayers and fee payers. We've deepened cross-regional processing, enabling taxpayers and fee payers to handle nationwide tax and fee matters at any comprehensive tax service hall.

In expanding taxpayer credit services, we've improved credit evaluation methods, helping new taxpayers enhance their credit. By August's end, 26,000 newly established taxpayers achieved credit upgrades. In collaboration with financial supervision departments and commercial banks, we have standardized and improved alignment between banks and tax departments. In the first half year, micro and small enterprises across China obtained 1.56-trillion-yuan bank loans through the "Bank and Tax Interaction" mechanism, representing a 7.6% year-on-year increase. These efforts have helped micro and small enterprises gain better access to credit support. 

Going forward, we will establish regular face-to-face communication mechanisms between tax authorities and businesses to advance comprehensive collection and efficient resolution of tax and fee-related requests, continuously improving the effectiveness of our tax and fee services. Thank you.

Phoenix TV:

We noted that last year, to mark the 10th anniversary of the Belt and Road Initiative (BRI), the STA introduced the cross-border service brand TaxExpress. Could you share the current implementation results? Additionally, what progress has been made on building the Belt and Road Initiative Tax Administration Cooperation Mechanism (BRITACOM )? Thank you.

Rao Lixin:

Thank you for your questions. I'll address them. Since the launch of the TaxExpress cross-border service brand last year, tax departments have actively supported the entire process and lifecycle of cross-border investment. We've focused on developing a cross-border tax and fee service system, providing robust support for companies engaging in cross-border investment.

We have created a cross-border investment tax service ecosystem. The SAT has fully leveraged interdepartmental collaboration, enhancing data sharing and coordination with the National Development and Reform Commission, the Ministry of Commerce, and China Customs. Concurrently, we've guided local tax authorities to strengthen departmental synergy, integrating tax service resources to support companies' cross-border investments. 

We have enriched our cross-border investment tax service system. To date, we've updated and released 105 country- and region-specific investment and taxation guides, including guidelines for 99 overseas taxation items, 26 overseas tax cases, and 50 FAQs for cross-border taxpayers. This year, we also introduced new resources such as the Export Tax Refund (Exemption) Operation Guidelines for Overseas Warehouses of Cross-Border E-Commerce Businesses, the "Going Global" Individual Tax Guidelines, and global tax information updates. These provide references for cross-border investors to stay informed about overseas tax policy dynamics and mitigate cross-border investment tax risks.

We have expanded rapid communication channels for cross-border investment tax issues. We've established regular communication mechanisms with foreign chambers and associations, addressing 155 cross-border tax challenges this year. We've invited foreign tax authorities, overseas Chinese enterprise associations, and Chinese embassies to explain cross-border investment policies to companies both online and offline. So far, we've held five country-specific events in this regard, including Austria, the Republic of Korea and Mexico. We've continuously provided cross-border tax advisory services through the national 12366 hotline. This year, we've provided 110,000 bilingual (Chinese and English) tax consultations for both outbound Chinese enterprises and inbound foreign companies.

This year marks the sixth year of the establishment of the BRITACOM. Since its inception in 2019, BRITACOM forums have been successfully hosted four times in China, Kazakhstan, Algeria, and Georgia, yielding 20 key outcomes and fostering an international tax environment conducive to growth. Five Belt and Road Schools of Taxation have been established in Yangzhou, Beijing, Macao, Astana and Riyadh. Recently, another School of Taxation was added in Macao (Hengqin Campus), creating a multilingual, multinational tax training network covering English, Portuguese, Russian and Arabic-speaking regions. Focusing on themes such as "tax administration and digitization," many workshops and seminars for tax personnel from BRI partner countries have been held, attracting over 1,500 participants. The official website of BRITACOM has attracted visitors from 175 countries and regions, facilitating exchanges and mutual learning among all parties.

As I mentioned at the outset, the fifth Belt and Road Initiative Tax Administration Cooperation Forum will be held in Hong Kong from Sept. 24 to 26. About 400 representatives from over 60 countries, regions and international organizations will gather to discuss the theme of "Deepening Tax Administration Cooperation for High-Quality Belt and Road Development." They will explore ways to deepen tax cooperation within the BRI. Once again, I invite all media representatives to actively follow and report on this event. Thank you.

Beijing Youth Daily:

The large-scale equipment upgrades and consumer goods trade-in programs implemented this year are important measures driving high-quality development. These measures are conducive to both investment and consumption. I'd like to ask, according to tax data, how have these two measures progressed? Thank you.

Rao Lixin:

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

Dai Shiyou:

Thank you for your question. The large-scale equipment upgrades and consumer goods trade-ins were initiated by the CPC Central Committee and the State Council as a major move to drive China's overall high-quality development. In March, the State Council issued an action plan for promoting large-scale equipment renewal and consumer goods trade-ins, and relevant departments and local governments subsequently rolled out supporting measures to ensure their effective execution.

Driven by these policies, enterprises significantly accelerated their equipment renewal. VAT invoice data show that from April to August this year, the value of machinery equipment purchased by enterprises nationwide increased by 5.6% year on year, with a growth rate 7.6 percentage points higher than in March, before the introduction of the action plan. The effect is especially noticeable in three key areas. Industrial enterprises have accelerated equipment renewal, with purchase increasing by 4.4% year on year from April to August, 5.5 percentage points higher than in March. Information and technology industry upgrades also accelerated. From April to August, machinery equipment purchases by the information technology service industry and the scientific research and technology service industry surged by 17.7% and 20% year on year, respectively, up 16 and 10.6 percentage points from March. Transportation and rental business service equipment updates accelerated. From April to August, machinery equipment procurement by the transportation industry and rental business service equipment industry increased by 0.4% and 16.1% year on year, respectively, 15 and 19.2 percentage points higher than in March.

Driven by factors such as national incentives, local support, and enterprise concessions, VAT invoice data shows that consumer demand for automobiles, home appliances, and furnishings has gradually increased. New energy vehicle (NEV) sales increased significantly, and second-hand car sales accelerated. From April to August, NEV sales jumped by 38.4% year on year, 10.9 percentage points higher than in March. Meanwhile, second-hand vehicle sales rose by 6.2% year on year, 10.8 percentage points higher than in March. Home appliance sales improved. From April to August, sales of household appliances like refrigerators and household audio-visual equipment such as televisions increased by 2.4% and 5% year on year, respectively, 2.8 and 11.6 percentage points higher than in March. Furniture and sanitary ware products were selling well. From April to August, retail sales revenue of furniture and sanitary ware grew by 8.9% and 12% year on year, respectively, 8.3 and 22.6 percentage points higher than in March.

Next, the tax department will continue to implement various tax and fee support policies in accordance with the deployment and requirements of the CPC Central Committee and the State Council. This will better facilitate and enhance the efficiency of large-scale equipment upgrades and consumer goods' trade-ins. Thank you.

Shou Xiaoli:

The last question, please.

Xinhua:

China has introduced many preferential tax policies to support innovation, among which a policy for additional deduction to R&D expenses has attracted wide attention. Could you brief us on this?

Rao Lixin:

Mr. Huang will answer this question.

Huang Yun:

Thank you for your question. In recent years, China has introduced a series of preferential tax policies to support scientific and technological innovation, such as the additional deduction for R&D expenses and preferential income tax policies for high-tech enterprises. Among them, the R&D expense deduction offers broad coverages, significant impact and high value, effectively enhancing enterprises' role as the main drivers of innovation. To make this easier to understand, let me give a simple example. If a company engages in R&D activities and incurs eligible R&D expenses of one million yuan, and if the 100% additional deduction policy applies, the company can deduct two million yuan in R&D costs before calculating its income tax. Simply put, for every one yuan spent, the company can deduct two yuan in costs. This approach significantly reduces the company's taxable income and, consequently, the tax payable. By reinvesting the tax savings into R&D, companies create a positive cycle that promotes innovation.

In order to further advance innovation-driven development and encourage enterprises to increase their investment in R&D, the policy for additional R&D expense deductions has been continuously strengthened in recent years. This has boosted companies' confidence, enhanced their determination and injected fresh momentum into technological innovation. It is mainly reflected in three aspects:

First, the additional deduction rate has been continuously raised. Starting in 2017, the R&D expense deduction was raised from 50% to 75% in phases across various industries. It was then further increased to 100%, with a 120% deduction now available for R&D expenses in key areas, such as integrated circuits and industrial mother machines.

Second, the timing for benefiting from the policy has been advanced several times. Initially, the additional deduction could only be claimed during the annual corporate income tax settlement. This was extended to the October prepayment declaration and then the July prepayment period. This allows enterprises to access policy benefits earlier, providing greater cash flow to increase their R&D investments.

Third, efforts have been made to continually improve the precision of policy implementation. Tax departments have carefully conducted policy promotion and guidance, providing targeted information. The Implementation Guidelines for the Policy of Additional Deduction of Research and Development Expenses was compiled and published, with timely updates and improvements. They have also issued case studies to address challenging issues in identifying R&D activities and policy application, further clarifying and standardizing implementation standards. These efforts help enterprises benefit from the policy more accurately and promptly.

According to data from the 2023 annual corporate income tax settlement that concluded in the first half of this year, a total of 629,000 enterprises across the country benefited from additional R&D expense deductions amounting to 3.45 trillion yuan. This policy has injected new momentum into accelerating the development of new quality productive forces. On the one hand, it has strongly supported the innovative development of high-tech enterprises. In 2023, 405,000 high-tech enterprises received additional deductions totaling 2.83 trillion yuan, a year-on-year increase of 15.1%. The average deduction per company is 2.5 times that of enterprises that are not classified as high-tech. On the other hand, it has significantly supported the innovation and development of private enterprises. In 2023, private enterprises received additional deductions totaling 2.59 trillion yuan, a year-on-year increase of 12.5%, accounting for 75% of all additional deductions across enterprises.

Next, the tax department will thoroughly implement the spirit of the third plenary session of the 20th CPC Central Committee. We will further enforce tax policies, such as the additional deduction for R&D expense, to support technological innovation. Our goal is to fully support the innovation and development of various enterprises and to better nurture and expand new quality productive forces. Thank you.

Shou Xiaoli:

Thank you, Mr. Rao, and all our speakers. Thanks to all journalists for joining us. That's all for today's briefing. Goodbye, everyone.

Translated and edited by Zhang Rui, Zhou Jing, Yang Chuanli, Ma Yujia, Liu Sitong, Wang Wei, Xu Kailin, Liu Jianing, Zhang Tingting, Li Huiru, Yan Xiaoqing, Liu Qiang, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Liu Guohong, vice minister of natural resources and deputy chief inspector of national natural resources

Mr. Yan Zhen, vice administrator of the National Forestry and Grassland Administration (National Park Administration)

Mr. Wu Haiyang, chief planner of the Ministry of Natural Resources (MNR)

Mr. He Guangshun, chief engineer of the MNR

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, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO) as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Liu Guohong, vice minister of natural resources and deputy chief inspector of national natural resources; Mr. Yan Zhen, vice administrator of the National Forestry and Grassland Administration (National Park Administration); Mr. Wu Haiyang, chief planner of the Ministry of Natural Resources (MNR); and Mr. He Guangshun, chief engineer of the MNR. They will provide briefings on relevant developments and take your questions. 

Now, I'll give the floor to Mr. Liu for his briefing. 

Liu Guohong: 

Ladies and gentlemen, friends from the media, good morning! Thank you for your long-term support and attention to the work of natural resources!

Since the 20th National Congress of the Communist Party of China (CPC), the MNR has deeply studied and implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We have integrated development and security, prioritized ecological protection, conserved resources and used them efficiently, and pursued green and low-carbon development, with a view to promoting high-quality development.

First, we have firmly defended the bottom line of resource security. We have prioritized arable land, the cornerstone of food production, by reforming and improving the system for offsetting cultivated land that has been put to other uses. We have promoted the implementation of a responsibility system for arable land protection and food security, and established an economic reward and punishment mechanism. Since 2021, the total amount of arable land nationwide has increased by 17.58 million mu (1.17 million hectares), achieving a net increase for three consecutive years and reversing the long-standing trend of decline. Notably, southern provinces last year saw a net increase of 7.39 million mu, changing the previous pattern of “decrease in the south, increase in the north.” We have also focused on ensuring the supply of key energy and mineral resources, launching a new phase of the resource exploration strategy and advancing reforms in mineral resource management. Since 2021, investment in resource exploration has grown for three consecutive years, leading to a significant boost in reserves and production. Major discoveries include a large oil field with reserves exceeding 100 million tons in Hongde, Gansu province; China’s first deep coalbed methane field with over 100 billion cubic meters of proven reserves at the eastern edge of the Ordos Basin; a super-large lithium deposit in Yajiang county, Sichuan province; and Asia’s largest phosphate mine in Zhenxiong county, Yunnan province.

Second, we have optimized the spatial layout of territorial space. We have further advanced the reform to unify multiple plans into one cohesive national territorial spatial planning system, which at this point has been largely established. General plans for 30 provinces (autonomous regions, municipalities) and the Xinjiang Production and Construction Corps, as well as 83% of city-level and 84% of county-level plans, have been approved and implemented. Territorial spatial plans for regions, such as the Yangtze River Economic Belt, have been approved. Plans for the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Yellow River Basin and the Chengdu-Chongqing Economic Circle are in active development. We have continuously optimized plans for territorial space as well as land-use policies, supporting three major projects: government-subsidized housing, urban village renovation and dual-use public infrastructure that can accommodate emergency needs. Additionally, we have promoted the redevelopment of inefficient urban land to serve new urbanization efforts. Applying the experience gained from the Green Rural Revival Program in Zhejiang Province, we have tailored village plans based on local conditions and have promoted comprehensive land management, supporting rural revitalization. In our efforts to build a strong maritime country, China's gross ocean product reached 9.9 trillion yuan in 2023, a year-on-year increase of 6.0%. We have continued to advance ocean and polar scientific expeditions, with China’s newly built Qinling Station in Antarctica now operational. Significant breakthroughs have been achieved by the polar icebreakers Xuelong and Xuelong 2. China's polar research has spanned 40 years, yielding remarkable accomplishments.

Third, we have promoted green and low-carbon development. We have implemented a comprehensive conservation strategy, strictly controlling the size and standards for construction land use, which since 2012 has led to a cumulative reduction of 45% in land use per unit of GDP. We have promoted green exploration and development, ensuring that all active mines meet the minimum standards for mining recovery, dressing recovery and comprehensive utilization rates —referred to as the "three rates" in the mining sector—for the 125 types of mineral resources involved. We have explored layered and three-dimensional development of marine areas and have strictly controlled new coastal reclamation projects. We have strengthened the supply of natural resource elements, ensuring that major infrastructure and livelihood projects receive necessary land and sea resources. Since the 20th CPC National Congress, China has approved 11.53 million mu of agricultural land conversion and land requisition, as well as the use of 7.39 million mu of sea area. These approvals involved 4,238 transportation projects, 281 water conservancy projects and 4,588 energy projects. We have also completed the construction of 3D real-scene data for approximately three-quarters of China’s land and key islands, providing geospatial data for economic and social development. Furthermore, we have supported the construction of large wind and photovoltaic power bases in deserts, the Gobi and barren areas, guiding the regulated use of marine areas for photovoltaic projects to promote new energy development. We have strengthened ecological protection and restoration by conducting nationwide surveys on the desertification of forests, grasslands and wetlands. We have completed the delineation of ecological protection redlines and have laid out plans for the world’s largest national park system. We have completed the unified property rights registration for 256 important ecological spaces, including the Northeast China Tiger and Leopard National Park, and have carried out integrated protection and systematic governance of mountains, rivers, forests, farmlands, lakes, grasslands and deserts. China's Shan-Shui initiative has been recognized as one of the UN's first ten World Restoration Flagships. 

Fourth, we have safeguarded the rights and interests of resource and assets. We have explored the path of transforming lucid waters and lush mountains into invaluable assets, launched pilot mechanisms to realize the market value of ecosystem goods and services, deepened the reform for collective forest tenure, advanced trials for market-based transfers of rural collective land designated for business construction, and have increased property incomes of rural collective economic entities and rural people. We have given priority to enhancing the facilitation for the registration of immovable property, with single-window inter-agency services for registration, transactions and tax payments being provided in all cities and counties across the country. General registration and mortgage registration can be completed within five working days. We have strengthened the rule of law, advanced the formulation of the national park law, the law on farmland protection and quality improvement and the law on territorial space plans, strictly carried out natural resource inspections and law enforcement, and have safeguarded the order of development and utilization of natural resources as well as the legitimate rights and interests of the people.

Next, we will continue to thoroughly implement the guiding principles from the 20th CPC National Congress and the third plenary session of the 20th CPC Central Committee, promote the preservation and appropriate development of natural resources, so as to better support high-quality development. 

Next, my colleagues and I will take your questions. Thank you!

Shou Xiaoli:

Thanks for the introduction from Mr. Liu. Now the floor is open to questions.

CCTV:

The third plenary session of the 20th CPC Central Committee has proposed to promote integrated urban-rural development and has made systematic arrangements for deepening reform of the land system. What implementation measures will be taken by the MNR? 

Liu Guohong:

Thanks to the reporter from CCTV for your attention to this question.

Integrated urban and rural development is essential to Chinese modernization, and urban and rural development depends on the guarantee of land element. In accordance with the arrangements made by the third plenary session, we will focus on implementing the strategies of new industrialization, new urbanization and rural revitalization. On the premise of keeping the public ownership of land unchanged, not crossing the red line of arable land and not damaging the interests of farmers, we will deepen the reform of the land system in three ways, so as to better optimize the allocation and make efficient use of urban and rural land resources, promoting shared prosperity and development in urban and rural areas.

First, based on ensuring that the red line for protecting farmland is not crossed, we have reformed and refined the system for offsetting arable land that has been put to other uses. In view of the new situation with arable land protection in recent years, all types of farmland used for other purposes must be placed under the system’s management in a unified manner. The principle must be upheld that the farmland occupied for other purposes must be offset equally with newly opened-up farmland. We will strengthen the management and control of dynamic equilibrium for the total of arable land. We will improve both incentive and constraint mechanisms, take the balance between the occupation and replenishment of farmland as an important part of the assessment of provincial Party committees and governments’ responsibility system for arable land protection and food security, and implement the economic reward and punishment mechanism for arable land protection, so as to ensure that regions protecting arable land will not suffer losses and farmers protecting arable land will receive benefits.

Second, based on efficient alignment with macro policies and the needs of regional development, we will refine construction land management systems. Focusing on the implementation of a coordinated regional development strategy, major regional strategies and the functional zoning strategy. In accordance with the resource endowments and functions of different regions, we will ensure more precise guarantee ability of land elements, creating greater development space for regions with a competitive edge. At the same time, we will focus on advancing a new type of urbanization that should be people-centered, and establish a coordination mechanism to link increases in urban construction land quotas for cities with the growth of permanent residents.

Third, based on advancing more economical, intensive and efficient use of land, we will improve the policy system for putting idle and inefficiently used land to better use. We will speed up developing a unified market for urban and rural land that is designated for construction, promote orderly reforms for market-based transfers of rural collective land that is designated for business construction, make better use of idle land in rural areas, and ensure the land-use needs in pursuing all-around rural revitalization. We will improve trading rules and transaction service platforms for the secondary market of construction land as well as will promote the trading of idle land’s use rights. In addition, we will improve the policy system for putting idle land into better use. We will better coordinate strategies and plans, guiding the idle and inefficiently used land to be better used in an orderly manner. We will refine the land acquisition and storage mechanism as well as give better play to the role of reserves for development and regulation of supply. We will increase policy incentives, advance mixed development and composite use of land and explore changes in land usage when appropriate, with the aim of continuously enhancing efficiency in land use.

China Financial and Economic News:

We know that the implementation and construction of projects depend on land. What will the MNR do to optimize land management and meet the demand for project land usage? What are the considerations for follow-up work? Thank you.

Liu Guohong:

We will have Mr. Wu answer these questions.

Wu Haiyang:

Thanks to this reporter for your questions. In recent years, the MNR has safeguarded redlines and bottom lines, promoted conservation and efficient use of resources, and has protected the rights and interests of farmers. On that basis, we have continued to improve policies for land use, optimize land management and provide service and support for the implementation of a series of major strategies and projects arranged by the Party Central Committee, effectively supporting high-quality development.

First, we have reformed the planning and management system for land use and have ensured land quotas in a category-based and targeted manner. We have adhered to the principle that “projects are developed and implemented in accordance with the plans and production factors stay with projects that they are allocated to” and have ensured the land use for major projects, with the quotas of planned land use directly allocated by the country. In terms of the land use for other projects, we have carried out mechanisms for coordinating the good use of idle land and the arrangements for planned quotas, which are the mechanisms we often mention that link the increase and deposit of land, pressuring enterprises and localities to make economical and intensive use of land. At the same time, we have arranged basic planned quotas for each province (or autonomous region or municipality) ensuring the land usage needs for major strategies, major industrial projects and important projects for the people’s wellbeing of provincial Party committees and governments. We have continued to arrange special plan quotas for counties lifted out of poverty and separate plan quotas for the construction of farmers’ housing to support the all-round rural revitalization. In a word, as long as it is an effective investment project that conforms to planning, national industrial policies and land usage policies, the reasonable needs for land use can be ensured by related plans.

Second, we've optimized the land use approval system to support timely project implementation. We've intensified efforts to promote interdepartmental coordination and made good preparations for projects. We've also streamlined pre-approval procedures for project land use and expedited major project approvals. We've adopted a series of policy measures, including pre-approved land use, temporary land use, and phase-oriented and segment-based approval for land use, to ensure that major projects regarding energy, transportation, water conservancy and defense can be implemented as soon as possible. Moreover, we've urged local governments to revise and release new compensation standards for land expropriation in accordance with the law. We've ensured that their practices adhere to the standard land expropriation process and that they must provide compensation for land expropriation and resettlement. By doing so, we aim to safeguard farmers' legitimate rights and interests.

Third, we've reduced the number of items requiring approval to improve the business environment. By leveraging the advantages of the "unified regulation system," we've advanced reforms to streamline administrative approval procedures and integrate business certifications and licenses into one consolidated license, such as merging land use pre-approval with site selection planning, land use permits with construction land planning permits, and land use verification with planning verification. We've also standardized planning permits for construction land, project construction, and rural construction while promoting electronic planning permit certificates. We've accelerated the implementation of "full online processing" for real estate registration, aiming to achieve "land transfer with immediate certificate issuance" and "completion with immediate certificate issuance."

Looking ahead, we will continue to enhance land management and strengthen support for leading industries and major projects. We will steadily improve the precision and efficiency of land resource allocation to ensure various sectors' reasonable land use needs are met.

That's all for my introduction. Thank you. 

Guangming Daily:

We've noticed that the draft National Park Law was recently submitted to the Standing Committee of the National People's Congress for deliberation. Could you please share the latest progress in national park development and outline the key focus areas for future work? Thank you.

Liu Guohong:

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

Yan Zhen:

Thank you for your question and continued support and concern for the national park initiative. As we all know, national parks are of crucial importance to our nation, representing a significant achievement in China's ecological civilization development. The CPC Central Committee has made a series of major decisions and arrangements regarding the establishment of the national park system. Over the past three years since the establishment of the first batch of national parks, the National Forestry and Grassland Administration has worked with relevant departments to accelerate the legislative process for the National Park Law to turn these major decisions and arrangements into institutional regulations. The draft of the National Park Law is now open for public comment, and we encourage everyone to share their thoughts and ideas.

In the legislative process, we entrusted the Chinese Academy of Sciences as a third party to conduct an evaluation. According to the evaluation results, since the establishment of national parks, populations of flagship species such as the giant panda, Siberian tiger, Amur leopard, and Tibetan antelope have seen sustained increases, while the ecological quality of these parks has seen steady improvement. As such, it's clear that ecological conservation efforts have yielded significant results. Thanks to joint efforts by governments and departments at all levels, new achievements have been made in the following four aspects this year:

First, resource protection and management have been further strengthened. We've intensified efforts to survey and mark protected area boundaries, completing the confirmation and registration of natural resource rights for Giant Panda National Park, Northeast China Tiger and Leopard National Park (NCTLNP), Hainan Tropical Rainforest National Park, and Wuyi Mountain National Park, all of which have been formally recorded on the register. Moreover, local governments and departments have been gradually tackling longstanding problems by adopting innovative solutions, including land swaps and conservation easement agreements. While maintaining strict protection measures, we have adopted flexible management strategies for major national strategic projects, facilities serving park residents, and ecological restoration initiatives.

Second, our monitoring and management capabilities have been greatly enhanced. We have introduced an independently developed high-tech monitoring system in the national parks. In the NCTLNP, a comprehensive ground-to-air monitoring system has been established. Monitoring data shows that populations of sika deer, roe deer, and other wild animals in the park have more than doubled since the park's pilot phase in 2017, strengthening the food chain for increasing numbers of wild Siberian tigers and Amur leopards. To safeguard public safety and property, the NCTLNP has also established a three-tier early warning system and installed physical barriers in key areas. Moving forward, we will further enhance the application of new technologies and equipment in the monitoring and management of national parks, such as satellite remote sensing, airships and drones.

Third, national parks have been delivering more benefits to local residents. More than 50,000 local farmers and herders have been employed as ecological protectors in national parks, dedicating themselves to conserving the ecosystems of their homeland. Moreover, stepped-up efforts have been made to increase local residents' income, including through ecological tourism, differentiated compensation mechanisms for eco-environmental conservation, and the development of communities located at or near national park entrances.

Fourth, our scientific and technological support capacity has been further enhanced. We have established a national giant panda conservation and research center by integrating existing resources, and are advancing efforts to set up national conservation and research centers dedicated to protecting Siberian tigers and Amur leopards, as well as Hainan black-crested gibbons. Additionally, in collaboration with the Chinese Academy of Sciences and Tsinghua University, we have jointly established the Institute of National Parks,  setting up a national park art and design center within it. We've also brought in academicians and experts to participate in our conservation and research efforts, creating a high-level, open and shared platform.

Moving forward, we will thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee and fully advance the creation of a nature reserve system with national parks as the mainstay. We will adhere to the principle of putting ecological protection first, implement tailored strategies for each park, and support high-quality development with a high-quality ecological environment.

Thank you.

China Natural Resources News:

The recently released domestic game "Black Myth: Wukong" features realistic environments created with real-scene 3D mapping technology. Could you elaborate on the development and applications of this technology? We've also learned that the MNR is spearheading the Real-Scene 3D China project. Could you please share more information on that as well? Thank you.

Liu Guohong:

Thank you for your professional questions. I'll try to answer in simple terms. Real-scene 3D technology utilizes modern mapping and geographic information techniques to create 3D, accurate, and time-sequenced representations of real-world environments. In recent years, as we advance the Real-Scene 3D China project, we've categorized it into three levels based on detail: terrain-level, city-level, and component-level. Terrain-level 3D captures topography and geographic features, primarily serving large-scale applications. For instance, when planning high-speed rail or expressways, this technology significantly reduces field survey work while enhancing planning accuracy. City-level 3D offers detailed 3D building shapes, supporting smart city management — often referred to as the "city brain." It facilitates low-altitude economic planning through airspace planning, route design, 3D navigation, and monitoring. Component-level 3D specializes in high-detail applications, creating precise "3D archives" of historical buildings and cultural relics. The game "Black Myth: Wukong" you mentioned employs this level of technology, providing players with an immersive experience.

The Real-Scene 3D China project is a national strategic data resource and a new type of infrastructure. Its value is becoming increasingly evident in the digital age. First, it promotes the development of the digital economy. By integrating various types of big data with real-scene 3D models, we can connect digital and physical spaces, supporting development of the digital economy including the low-altitude economy, autonomous driving, smart ports, intelligent agriculture, and digital cultural tourism. Second, it enhances quality of life. Through spatial analysis and high-precision navigation services based on real-scene 3D technology, everyday activities like socializing, transportation, travel, dining, and shopping have become more efficient, convenient and eco-friendly. Third, it supports smart governance. By integrating and overlaying economic, social, and natural resource data based on real-scene 3D technology, we can more accurately align resources in time and space, enabling more refined governance and efficient services. In short, real-scene 3D and spatial geographic data are all around us, though we often use them without realizing it.

Looking ahead, to better support economic and social development, we aim to complete the initial phase of the Real-Scene 3D China project by 2025. Subsequently, we will continually enhance its coverage, precision, timeliness, and depth. This project will be instrumental in supporting the development of digital China and contributing to improved quality of life for our citizens. Thank you once again for your questions.

The New Times:

In recent years, we've seen an intensification in global climate change and a rise in extreme weather events. How have these factors affected the occurrence and patterns of geological and marine disasters? What strategies are being considered to address these challenges in the future? Thank you.

Liu Guohong:

We'll ask Mr. He to answer your questions.

He Guangshun:

Thank you for your questions. Global climate change has led to more frequent extreme rainfall events in recent years. Consequently, China has experienced an intensification of geological disasters and a rise in the frequency of marine disasters. Facing this situation, the MNR has adhered to the principle of "putting people and their lives first," proactively implementing preventive and responsive measures to address these challenges.

In terms of geological disaster prevention, we've enhanced monitoring and early warning systems using both human and technological approaches, steadily improving our community-level capacity for disaster prevention and mitigation. To build a people-based risk prevention system, we've guided local authorities to enhance training and drills for grassroots officials, over 260,000 community monitoring and prevention personnel, and professional teams. These individuals conduct dynamic inspections of hidden dangers and risk areas, using gongs, whistles and warning broadcasts to help alert and evacuate people once danger is detected. For example, on July 16 this year, a mudslide risk was identified in Jiuzhaigou county, Sichuan province, and more than 400 people were evacuated in time, preventing potential casualties. To create a technology-based risk prevention system, we've implemented a four-tier warning system for weather-induced geological disasters across national, provincial, city and county levels, deploying automated equipment like Beidou movement monitors at more than 66,000 high-risk locations. For example, during the July 19 landslide disaster in Xishan township of Mangshi city, Yunnan province, our monitoring system issued a warning one hour in advance, allowing for timely evacuation of over 30 people and averting potential casualties. Since the beginning of this year, we've successfully predicted over 550 geological disasters nationwide, facilitating the advance evacuation of more than 6,700 people. Over the past decade, we've seen a 74% reduction in deaths and missing persons due to geological disasters compared to the previous 10-year period.

In terms of marine disaster prevention, especially for marine dynamic disasters, we've conducted investigations and risk assessments for storm surges, waves, tsunamis and rising sea levels, delimiting key marine disaster prevention areas. China's homegrown "Mazu" series of marine forecasting models have been deployed, markedly enhancing the precision and speed of disaster predictions during our response to this year's 11th and 13th typhoons, Yagi and Bebinca. To prevent marine ecological disasters, we've implemented cross-regional joint measures to control Enteromorpha green tide in the Yellow Sea, tackling the issue at its source and removing algae early on. As a result, this year's disaster has had the least impact on the coastal regions in Shandong province in recent years. Compared to the previous decade, direct economic losses and the number of deaths and missing people caused by marine disasters have decreased by 62% and 85%, respectively, in the past 10 years.

Next, we will further enhance disaster monitoring methods and increase the accuracy and timeliness of disaster forecasting and early warnings. We'll also strengthen capacity building and personnel training at the community level, while continuously conducting inspections and rectifications of hidden dangers and risk areas. These efforts aim to enhance our capability to prevent and respond to geological and marine disasters. Thank you.

21st Century Business Herald:

High-quality development can't be achieved without the support of mineral resources. What measures have been taken in recent years to enhance mineral resource security and promote green exploration and development in this sector?

Liu Guohong:

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

Wu Haiyang:

Thank you for your question. In recent years, the MNR has prioritized strengthening our ability to ensure a secure supply of energy and resources. We've intensified efforts in mineral resource exploration and development while simultaneously advancing the sector's green transformation.

On the one hand, we've taken solid steps to promote a new round of strategic mineral exploration, continuously enhancing domestic resource security. We've further strengthened basic geological work, providing enterprises with more target areas for prospecting. We've also expanded the granting of exploration rights to more enterprises, incentivizing them to discover higher-quality mines with larger reserves. In 2023, a total of 459 entities nationwide were granted exploration rights, a year-on-year increase of 26.8%. In the first eight months of this year, 868 entities were granted exploration rights, a year-on-year increase of 194.1%. Among them, 528 were granted exploration rights for strategic mineral resources, a year-on-year increase of 254.4%. We've effectively utilized government funding to steer and encourage private-sector investment in mineral exploration. The share of nongovernmental investment in mineral exploration has steadily grown. Meanwhile, in collaboration with the Ministry of Finance, the MNR has revised the method of collecting mining rights transfer proceeds, moving from a one-time fee to annual payments based on mineral production revenue. This change incentivizes enterprises to increase their investments in mineral exploration. We've intensified deep and comprehensive exploration of scarce strategic mineral resources, yielding a series of positive results. Mr. Liu just gave an introduction in this regard. In 2023, four 100-million-ton oil fields and four 100-billion-cubic-meter gas fields were discovered nationwide. We've further consolidated our leading position in minerals like tungsten, molybdenum, antimony, crystalline graphite and apatite. Significant breakthroughs were achieved in the exploration of minerals such as lithium, cobalt and nickel. These efforts have bolstered the resource security essential for the development of strategic emerging industries.

On the other hand, we are making every effort to promote green exploration and development, integrating environmental protection into all aspects of mineral resource exploration, development and ecological restoration. We will fully implement green exploration in the new round of strategic actions for mineral exploration breakthroughs. Stricter requirements for green exploration will be introduced within the ecological conservation redline s, with a focus on minimizing the disruption of exploration activities to the environment. We will establish and improve the standard system for green mine construction, ensure that enterprises take on their principal responsibilities, promote the construction of new mines fully in line with green mine standards, and gradually transform mines currently in operation to meet these standards. At present, more than 1,000 national-level and over 3,100 provincial-level green mines have been established across the country.

Next, we will further enhance the overall planning and connection system for the exploration, mining, supply, storage and sales of strategic mineral resources. We will continue to further promote the new round of strategic actions for mineral exploration breakthroughs, and promote increases in reserves and production of important energy and mineral resources, thereby contributing to the construction of a modern industrial system.

That is all from me. Thank you.

Nanfang Daily, Nafang Plus:

The report to the 20th CPC National Congress stressed the need to develop the marine economy, protect the marine ecological environment, and move faster to build a strong maritime country. What achievements have been made in turning China into a strong maritime nation in recent years? And what measures will be taken going forward? Thank you.

Liu Guohong: 

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

He Guangshun: 

Thank you for your question. The 20th CPC National Congress and the third plenary session of the 20th CPC Central Committee have made strategic arrangements for accelerating the building of a strong maritime nation. In recent years, the MNR, together with relevant departments and coastal regions, has been thoroughly implementing the decisions and arrangements of the Party Central Committee and the State Council and promoting the building of a strong maritime nation. We have made remarkable progress in the following aspects:

First, new characteristics have emerged in the development of the marine economy. We have strengthened efforts to guarantee maritime elements, promoted industries such as aquaculture and offshore wind power to shift from near-shore to deep-sea and far off-shore areas, and promoted the transformation of sea-use patterns from two-dimensional to three-dimensional and multi-purpose utilization. In 2023, the number and area of newly-approved sea-use projects nationwide increased by 47% and 26.6%, respectively, compared with 2022. The gross marine product value in 2023 was 9.9 trillion yuan, and in the first half of this year, it reached 4.9 trillion yuan, with year-on-year growth of 5.6%.  

Second, new progress has been made in the conservation and restoration of marine ecology. We have organized and implemented a series of major projects for marine ecological conservation and restoration, such as the "Blue Bay" environmental improvement initiative, the comprehensive treatment of the Bohai Sea region's water environment, the coastal belts protection and restoration project, and a special action for mangrove protection and restoration. 

Third, new breakthroughs have been made in marine scientific and technological innovation. We have promoted the establishment of the Laoshan Laboratory and developed four national-level marine comprehensive test sites according to the layout of "shallow sea + deep and far sea." We have promoted multiple breakthroughs in key and core technologies in the marine field. The Mengxiang drilling ship has successfully completed its first trial voyage, and the Jiaolong submersible has carried out joint scientific expeditions with multiple countries, sharing its results.

Fourth, new areas have been expanded in marine cooperation and governance. The "Ocean Decade" China Committee has been established. A series of major international cooperation activities in the marine field, such as the World Coastal Forum, have been held. The China Marine Economy Expo has become an internationally influential communication platform. We have continuously organized expeditions to the North and South poles. The Qinling Station, which was completed and put into use this year, is China's fifth Antarctic research station, and also the first facing the Pacific Ocean. We have actively participated in consultations on the regulations for the development of mineral resources in the international seabed areas, and signed the Agreement on Marine Biodiversity of Areas Beyond National Jurisdiction, also known as the BBNJ Agreement.

Next, we will earnestly implement the arrangements of the third plenary session of the 20th CPC Central Committee, improve the systems and mechanisms for promoting the development of the marine economy, improve the systems for the development and conservation of marine resources, optimize the marine spatial layout, promote marine ecological conservation and restoration and marine early-warning and monitoring, enhance the protection and utilization of the deep-sea and polar regions, and deeply participate in global marine governance, making new contributions to the building of a strong maritime nation. Thank you.

China Daily:

We know that the Three-North Shelterbelt Forest Program is a major national strategy that has significantly contributed to economic development, environmental protection and the improvement of people's livelihoods. How are the forestry and grassland departments advancing the high-quality development of this program in the new era? Thank you.

Yan Zhen: 

Thank you for your question. As you may be aware, the Three-North Shelterbelt Forest Program represents the largest ecological project in the world to date. Decades of relentless effort have not only created a "Green Great Wall" across our northern regions but also cultivated the "Three-North Spirit." It is fair to say that this project serves as a global model for ecological governance.

On June 6 last year, General Secretary Xi Jinping made a clarion call to the entire Party to intensify efforts on the program. In response, our department, in collaboration with other relevant departments — particularly with robust support from the National Development and Reform Commission and the Ministry of Finance, and with the active involvement of local governments and communities in desert areas — has strengthened overall planning and vigorously engaged in advancing the high-quality development of the project.

Adopting a systematic approach and focusing on seven major wind erosion zones, 34 sandstorm-prone areas, and three primary dust storm paths in the "three-north " region, we have promoted integrated protection and systematic management of mountains, rivers, forests, farmlands, lakes, grasslands and deserts. We emphasize scientific principles, ensuring greenery based on water availability, and combining trees, shrubs and grasses. We are making great efforts to optimize land use, water allocation and seedling resources, as Mr. Liu mentioned in his introduction. Additionally, we have increased the promotion of practical technologies and the application of mechanical equipment. We are also fostering institutional innovation, scientifically and orderly advancing the photovoltaic industry in desert areas, rationally developing feed and economic forest industries, while implementing work-relief programs to enable local residents to participate in the "three-north" program on their doorstep. We have fully launched three landmark campaigns under the "three-north" program since August last year. The campaign for the "U-shaped bend " of the Yellow River focuses on addressing ecological issues such as water disasters, sand hazards and salinization, and reducing the sediment load in the Yellow River. We have initiated 95 key projects in the Mu Us Desert, Kubuqi Desert, Ulan Buh Desert and their edges, aiming to restore a lush and beautiful landscape. Ordos has adopted the "new energy plus" model, planning and laying out a "100-mile photovoltaic belt" along the northern edge of the Kubuqi Desert and the southern area of the Yellow River. The campaign against desertification in the Horqin and Hunshandake sandy lands focuses on addressing the source of sandstorms that affect the Beijing-Tianjin region. We have launched 41 key projects to manage desertified land, restore degraded grasslands, and protect and restore rivers and wetlands, thus building an ecological barrier for the Beijing-Tianjin-Hebei region. Liaoning and Inner Mongolia are working together to establish a "1,000-mile sand prevention belt" along the southern edge of the Horqin sandy land. In the Hexi Corridor and the edge of the Taklamakan Desert, 71 key projects have been initiated in major sandstorm-prone areas, areas of drifting sand invasion, and oasis protection gaps to ensure the ecological security of oases. For example, Qinghai province has established 12 barrier points to prevent sand at the desert edges and sources in the Qaidam Basin, Gonghe Basin and Qinghai Lake Basin. In the Aksu region of Xinjiang, the development of forest and grass industries, including walnut, apple and jujube cultivation, has increased the per capita income of local residents by more than 1,000 yuan. With efforts from various parties, the "three-north" program has completed comprehensive management tasks across more than 40 million mu (2.67 million hectares) of land since last year.

Next, we will fully implement the principles of the third plenary session of the 20th CPC Central Committee, making solid efforts to promote the high-quality development of the "three-north" program. In the new era, we particularly aim to optimize our policies and work together to address the pressing issues and challenges raised at the grassroots level. Furthermore, we will guide various entities to participate extensively in the "three-north" program and strive to win this critical battle. We also welcome the journalists present to visit and see the "three-north" region for yourselves. Thank you.

Shou Xiaoli:

I see there are two journalists whose hands are raised. 

Hongxing News: 

We have noticed that the third plenary session of the 20th CPC Central Committee proposed the requirement to improve the urban planning system. What are the MNR's considerations in implementing this? Thank you.

Liu Guohong:

Thank you. I would like to invite Mr. Wu to answer this question. 

Wu Haiyang: 

Thank you for your question. Let me take this question. Earlier, Mr. Liu introduced the achievements of the "multi-plan integration" reform since the third plenary session of the 18th CPC Central Committee. After years of effort, and particularly since the institutional reforms in 2018, the territorial spatial planning system proposed by the third plenary session of the 18th CPC Central Committee has largely taken shape. The third plenary session of the 20th CPC Central Committee has now set forth new requirements for improving the urban planning system. The MNR will remain committed to the "multi-plan integration" reform, fully utilizing the fundamental role of territorial spatial planning in promoting coordinated regional development, guiding the coordinated development of cities of different sizes and small towns, and encouraging efficient and closely knit layouts. We will focus our work on the following areas:

First, we will focus on the development of territorial spatial planning for city clusters and metropolitan areas, in order to promote the implementation of major regional strategies. We will accelerate the formulation and implementation of territorial spatial plans for regions such as the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Chengdu-Chongqing economic zone, and the Yellow River Basin. We will work to better leverage the influence of city clusters and metropolitan areas, strengthen spatial coordination in aspects such as regional population, resources, the environment, public services, infrastructure, urban development, and industrial and supply chains, thus creating a spatial layout featuring regional coordination and complementary functions.

Second, we will strengthen the guiding and binding role of territorial spatial planning on various specialized plans, leading urban areas toward efficient and closely knit layouts. A coordinated management system for specialized plans related to territorial space will be established to balance the spatial needs of sectors such as transportation, energy, water resources, and municipal services within a single territorial spatial planning framework. This will help resolve spatial conflicts and contradictions, and guide the formation of a spatial structure that conserves resources and protects the environment.

Third, we will promote reforms with detailed plans to create new driving forces and advantages for organic urban renewal. To adapt to the requirements of optimizing existing resources, we will explore approaches to compiling and implementing various types of specific plans, tapping into the unique features and potential of existing resources and assets. In coordination with community living circle development and the advancement of three major projects (government-subsidized housing, redevelopment of urban villages, and development of dual-use public infrastructure that can accommodate emergency needs), we will optimize existing spatial structures, enhance urban service functions, and stimulate urban development vitality, fostering new growth areas for regional development.

Additionally, we will step up efforts in establishing sound, united, well-aligned systems for regulating the use of territorial space of all types across the country and for approving territorial space plans, advance the supervision system for implementing territorial space plans, and create an efficient, unified digital governance system for territorial space. These efforts aim to transform planning blueprints into reality, supporting the construction of beautiful cities.

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

Shou Xiaoli:

Please continue with the last question.

Phoenix TV:

The Xiamen Approach has provided invaluable experience for the ecological governance of bay-type cities. We've noticed that this approach has been applied in many inland areas. Could you please elaborate on the relevant progress? Thank you.

Liu Guohong:

Thank you for your interest in the Xiamen Approach and for your question. I'd like to express my gratitude to the media for their in-depth reporting and extensive coverage of the Xiamen Approach since last year. Now, I'll provide more information.

The Xiamen Approach represents an approach to urban water management and ecological construction that General Secretary Xi Jinping personally initiated during his work in Xiamen. Starting with the comprehensive management of Yundang Lake, the approach has contributed to the ecological preservation and restoration both inside and outside of the island, with the coverage expanding from the sea area and watersheds to the whole area, coordinating land and sea, as well as rivers and lakes. It has optimized the urban spatial layout, built a beautiful living environment, and enhanced the resilience and vitality of the coastal area, setting a fine example in practically promoting harmony between humanity and nature and building a Beautiful China.

The experience of the Xiamen Approach has expanded from Xiamen to entire Fujian, then to Zhejiang, and now nationwide. Like a spark igniting a prairie fire, it has inspired numerous practices across China for integrated protection and systematic governance of mountain, water, forest, farmland, grassland, and desert ecosystems. Let me share two examples. The first one is Dongtou district in Wenzhou, Zhenjiang province. By implementing the Blue Bay Remediation Project, the district has improved its marine and island eco-environment, enabling residents to benefit from the sea in new ways. This green development path highlights the sea’s charm and preserves nostalgia. The once small fishing village is now a popular tourist destination. Another example is Beihai in Guangxi Zhuang autonomous region. Some of you may have visited Fengjiajiang River in Beihai, especially the Jinhaiwan Mangrove Wetlands, for birdwatching or seaside views. You may not know that over 10 years ago, Fengjiajiang River was a heavily polluted urban river. Over the years, the local government has coordinatively promoted pollution prevention and control, beach restoration, and mangrove conservation. These efforts have resulted in the construction of a "green ribbon," extending from the urban area of Beihai to the Jinhaiwan Mangrove Wetlands, which has become a great place for residents to relax and for tourists to sightsee. There are many such examples across our country, which together paint a vivid picture of harmony between humanity and nature.

To deeply study and apply the Xiamen Approach, the MNR has continued to carry out various promotional activities since the beginning of this year. During this year's World Oceans Day on Jun. 8, 12 cities, including Beijing, jointly launched a Xiamen Initiative to promote ecological progress. Recently, the MNR, together with relevant departments, jointly issued a policy document on studying and applying the Xiamen Approach. We plan to advance ecological protection and restoration comprehensively across all regions throughout the entire process, considering all elements.

Moving forward, we will deeply study and faithfully implement the Xiamen Approach, promoting the integrated protection and systematic governance of mountain, water, forest, farmland, grassland, and desert ecosystems. We aim to build a comprehensive protection and governance framework that extends from mountaintops to the ocean, striving to open new horizons in the construction of a Beautiful China.

That's all for my answer. Thank you again!

Shou Xiaoli:

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

Translated and edited by Wang Yiming, Yuan Fang, Xu Kailin, Wang Yanfang, Gong Yingchun, Zhou Jing, Mi Xingang, Wang Wei, Li Xiao, Wang Qian, Liao Jiaxin, Zhang Junmian, Li Huiru, Zhang Lulu, Ma Yujia, Wang Ziteng, Liu Sitong, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Zhou Jinqiang, vice minister of the General Administration of Sport of China (GASC)

Mr. Ding Dong, director general of the Sport for All Department of the GASC

Mr. Zhang Xin, director general of the Competitive Sports Department of the GASC

Ms. Yang Xuedong, director general of the Sports Economy Department of the GASC

Chairperson:

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

Date:

Sept. 18, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Zhou Jinqiang, vice minister of the General Administration of Sport of China (GASC), to brief you on relevant developments and to take your questions. Also present today are Mr. Ding Dong, director general of the Sport for All Department of the GASC; Mr. Zhang Xin, director general of the Competitive Sports Department of the GASC; and Ms. Yang Xuedong, director general of the Sports Economy Department of the GASC.

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

Zhou Jinqiang:

Thank you. Ladies and gentlemen, friends from the media, good morning. I am very pleased to attend today's press conference with my three colleagues. First, on behalf of the GASC, I would like to extend my heartfelt gratitude and sincere respect to the journalists who have long supported the development of our sports industry.

Since the 18th National Congress of the Communist Party of China (CPC), we have earnestly studied Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, along with General Secretary Xi Jinping's important remarks on sports, and a series of key directives. We have diligently implemented the decisions and plans of the CPC Central Committee and the State Council, actively applied the new development philosophy, and coordinated efforts to advance the high-quality development of sports. Fitness has now flourished nationwide, competitive sports have achieved remarkable success, youth sports are vibrant, and the sports industry is growing rapidly. These efforts have ushered in a new phase in building China into a leading sports nation.

First, services for national fitness are meeting the new demands of the people. We adhere to the principle of putting people first and have made great efforts to address the public's fitness challenges. The national fitness system and the policy framework have been gradually improved, alleviating the issue of "where to exercise" to some extent. Nationwide, fitness activities have been widely promoted, the fitness network has been increasingly refined, and fitness facilities have been rapidly improved. A wave of enthusiasm for national fitness has swept across the country, playing a significant role in meeting the people's growing desire for a better life. The proportion of Chinese people who regularly engage in physical exercise has reached 37.2%. By the end of 2023, the per capita area of sports facilities reached 2.89 square meters, surpassing the standard of 2.6 square meters set in the 14th Five-Year Plan (2021-25) ahead of schedule.

Second, the achievements in competitive sports highlight our new image as a great country. We have aligned with the requirements for building a sports powerhouse, worked to refine the national system for competitive sports, and continuously enhanced our capacity to bring glory to the country. The overall strength and international influence of our competitive sports have been steadily growing. From 2012 to 2023, Chinese athletes won a total of 1,244 world championships and broke 161 world records. At the recently concluded Paris Olympics, our athletes secured 40 gold medals, 27 silver medals and 24 bronze medals, marking China's best performance in an overseas competition since our participation in the Summer Olympics in 1984. This accomplishment firmly places us among the world's leading sports powerhouses and strongest Olympic nations. Our athletes have reached new heights on the international sports stage and in global competitions, fostering patriotism and uplifting national spirit through the power of sports. They have presented a refreshed image of China in the new era and showcased the tremendous achievements of our socialist modernization to the world.

Third, youth sports have injected new vitality into talent development. We have fully leveraged the critical role of sports in promoting holistic human development, actively deepened the integration of sports and education, and stimulated the motivation and dynamism of youth sports development, striving to improve the health of young people. We have promoted the integrated development of sports schools, regular schools and youth clubs, leading to an increasingly diverse range of youth sports events. Both the youth event and youth training systems are continuously being improved, providing a more solid foundation for cultivating the talent reserve. Through activities such as the "Happy Run, Passionate Youth" National Youth Sunshine Sports Conference, we aim to set a leading example, encouraging more children to run, jump and be active. With a focus on common physical issues among young people, such as obesity, poor eyesight and scoliosis, we have widely implemented initiatives for promoting science-based fitness and health interventions among them.

Fourth, new driving forces have been forged as the sports industry develops. We have insisted on expanding consumption and continued to promote the rapid development of the sports industry, consistently releasing market potential and significantly improving its position and function in the national economy. Since the 18th CPC National Congress, China's sports industry has significantly expanded in scale and added value. Its growth has outpaced the country's overall GDP growth rate for the same period, accounting for an increasing share of annual GDP. From 2012 to 2022, the annual average growth of the sports industry's added value reached 15.4%, with its proportion of annual GDP increasing from 0.6% to 1.08%. In 2023, China's imports and exports of the main sports service trade reached 52.89 billion yuan, up 178% from the previous year. Currently, China has established a sports industry system led by competitive events, performances, leisure and fitness and complemented by sports venue services, athletic training, and sports-related manufacturing and media.

China's sports sector has achieved significant progress, but it's still at a critical juncture, transforming scale into strength while facing many challenges. Weaknesses remain in public fitness service capacity and the development of football, basketball and volleyball. The third plenary session of the 20th CPC Central Committee made clear arrangements for deepening all-round reform in the sports sector, providing direction and momentum for enhancing national athletic prowess. Recently, General Secretary Xi Jinping met with the Chinese delegation to the 33rd Summer Olympic Games, praising the athletes' achievements and spirit while calling for humility, prudence and persistent efforts to build on the country's sporting prowess. We will continue to empower high-quality sports development through reform and innovation, fulfilling new responsibilities and making new efforts to deepen all-round sports reform, aiming to build China into a sports powerhouse.

That's all for now. My colleagues and I are now ready to take your questions.

Shou Xiaoli:

The floor is now open for questions.

Xinhua News Agency:

The Chinese sports delegation's remarkable performance at the Paris Olympics electrified and inspired the nation. Now, expectations are high for further reforms to boost the country's overall competitive sports prowess. The third plenary session of the 20th CPC Central Committee decided to reform and improve the management systems and operating mechanisms for competitive sports. What are the direction and objectives of this reform? How will you implement this strategy?

Zhou Jinqiang:

Thank you for your questions. The Chinese sports delegation achieved remarkable results at the Paris Olympics, making breakthroughs in various aspects. This marked a solid step forward in our journey to become a sports powerhouse. This success has boosted our confidence in accelerating the development of China as a strong sporting nation and strengthened our resolve to deepen reforms in competitive sports.

The third plenary session of the 20th CPC Central Committee set clear requirements for reforming competitive sport management systems and operating mechanisms, charting the course for deeper reforms in the field. Our general reform approach is to uphold openness and cooperation to boost competitive sports. We will deepen the combination of the system for mobilizing nationwide resources and market mechanisms, paying more attention to leveraging the role of the market mechanisms. Our aim is to quickly form management systems and operating mechanisms for competitive sports that engage the government, society, the market and individuals, achieving openness, common benefits and full vitality.

The concrete measures involve three aspects: First, setting high standards. We will focus more on leveraging the comprehensive value and unique functions of competitive sports, emulating world sports powerhouses. While strengthening advantageous sports, we will emphasize improving basic major sports (track and field, swimming and water sports) as well as football, basketball and volleyball. The high-quality development and excellent achievements of competitive sports are expected to boost the rapid development of public sports, youth sports and the sports industry. Second, implementing high-level leadership. We will study and formulate plans for achieving Olympic glory in the new era, further enhance top-level design, establish a more systematic and refined policy system to better facilitate the high-quality development of competitive sports, and elevate governance capabilities and standards in the field. Third, maintaining highly efficient coordination. We will coordinate efforts across summer and winter sports, balance focus between advantageous and disadvantageous sports, and harmonize strategies for the eastern and western regions. We will implement category-based management according to the distinctive features of different sports. Suitable sports will be professionalized. Social forces will be mobilized to promote emerging sports. We will further optimize resource allocation, sports structure, distribution and regional development patterns to encourage coordinated and balanced development in competitive sports nationwide. Thank you.

Nanfang Daily:

Sports related to popular competitive events have seen surging interest, with sports venues in many areas fully booked and tennis courts nearly impossible to reserve. What steps will you take to meet the public's growing demand for sports spending? Thank you.

Zhou Jinqiang:

Thank you for your question. I'll ask Ms. Yang from the Sports Economy Department to respond.

Yang Xuedong:

Thank you for your question. As the economy and society have developed in recent years, particularly since Fitness-for-All became a national strategy, public enthusiasm for sports participation and spending has soared. Sports consumption loyalty has strengthened, with more people engaging in various activities. We've made significant efforts to meet people's aspirations for a better life, and Mr. Zhou has just briefed you on the achievements in promoting public sports participation. However, imbalances and inadequacies persist, as evidenced by the difficulty in booking tennis courts, which you mentioned, reflecting the mismatch between supply and demand. Looking ahead, we will focus on improving supply in three areas to meet consumer demand.

First, we will enhance the supply of venues and facilities. On one hand, we will fully leverage the leading, motivational and demonstrative role of central government budget investments, while widely mobilizing social resources to increase sports facility construction. We will also expand free or low-cost access to public sports venues to facilitate public participation. On the other hand, we will promote smart upgrades of sports venues, encourage off-peak usage among the public, and fully utilize new technologies to increase facility utilization rates.

Second, we will increase the supply of sports products. In manufacturing, we'll accelerate the application of new technologies and materials in sports goods, promote industry transformation and upgrades, develop smart equipment and intelligent venues, and integrate more smart technologies into products and consumer scenarios. In services, we'll increase sports event offerings and provide multi-level, diverse, and personalized sports services to better meet public needs.

Finally, we will roll out more policy measures. We'll further strengthen communication and coordination with the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Commerce, and Ministry of Culture and Tourism. We'll formulate and implement policies for upgrading sports products and developing high-quality outdoor sports destinations. We'll continue to address policy bottlenecks and challenges to optimize the development environment and stimulate market vitality. Thank you.

The Poster News APP:

In recent years, issues like myopia, obesity, and poor posture among Chinese youth have drawn ongoing social attention. How can we leverage sports to improve their health? Thank you.

Zhou Jinqiang:

I'll invite Mr. Zhang from the Competitive Sports Department to answer this question.

Zhang Xin:

Thank you for your question. The healthy growth of young people is crucial to national development and our future. In recent years, the General Administration of Sport has earnestly implemented the important instructions of General Secretary Xi Jinping, consistently upholding the "health first" education principle and intensifying efforts to harness sports' unique role in promoting youth well-being.

On the one hand, we've promoted youth sports activities through themed, demonstrative events. Since 2021, the General Administration of Sport has collaborated with multiple departments to implement the "Run, Youth" themed fitness activity. This initiative engages all youth in sports competitions, sports culture education, health assessments, and skill demonstrations. With over 120 million young participants, it has made a wide-reaching societal impact. In August this year, we held a national youth sports event in Nanchang, Jiangxi province, where over 2,000 young people from across the country participated in activities like football, basketball, volleyball, martial arts, roller skating, jump rope, and rock climbing. Olympic champion Pan Zhanle and other athletes encouraged youth to build their bodies and challenge themselves through physical exercise in sports venues and outdoors, sparking renewed passion for sports among teenagers. In summary, we're making multifaceted efforts to help young people understand, learn, love and enjoy sports, using sports' power to safeguard their health and well-being.

In addition, following the principle of promoting scientifically-backed physical exercises, the GASC has intensified efforts to improve the physical well-being of young people. Addressing issues such as myopia, obesity, scoliosis and mental health among youth, the GASC has sought public input and enlisted experts to develop exercise guidelines and intervention strategies. A series of books has been compiled to promote fitness knowledge, along with exercises designed to prevent myopia and improve spinal health. The GASC has also created sports games and curricula on physical activity and health, continuing to offer scientifically supported exercise programs for youth. Meanwhile, the GASC has established an online platform to disseminate health-related information among youngsters and regularly launched related animated video broadcasts and expert livestreaming events, which have attracted over 345 million views to date.

That covers everything for now. Thank you.

China Daily:

Chinese athletes excelled at the recently concluded 2024 Paris Olympics. Similarly, many ordinary Chinese fitness enthusiasts also look forward to having platforms to showcase their abilities. What plans does the GASC have for launching and promoting more local sporting competitions that are accessible to the public? What progress has been made so far? Thank you.

Zhou Jinqiang:

Thank you. Mr. Ding will answer your questions.

Ding Dong:

Thank you for your questions. Competitions and sporting events serve as catalysts to promote public fitness. In recent years, the GASC has implemented comprehensive policies and taken multiple measures. The main efforts are as follows:

First, mass sports events at the National Games, the National Fitness Competition, and community-based athletic contests are spearheading efforts to provide public fitness programs. In accordance with the goal of promoting widespread participation in the National Games and ensuring their benefits reach all, the 15th National Games in 2025 will feature 23 categories and 166 events in mass sports. Currently, qualifying events are being held nationwide, allowing fitness enthusiasts to showcase their progress. This year, embracing the concept of providing a national competitive platform for the public and making competitions accessible to all, the GASC took an innovative approach by launching the inaugural National Fitness Competition. The event comprises seven competition zones and aims to create a nationwide public fitness contest that people can choose, join, organize and benefit from. Our goal is to promote a growing sense of fulfillment and well-being among participants.

Second, the GASC is launching themed public fitness programs throughout the year in chronological order while enhancing brand building. These programs have included New Year's Day mountain climbing activities, a Spring Festival-themed public fitness initiative, and a Grand Canal-themed brisk walking program in May. In June, public fitness initiatives commemorated Chairman Mao Zedong's slogan, "Promoting physical culture and sports; strengthening the people's physique," followed by National Fitness Day in August and the Chinese Farmers' Harvest Festival in September. The year will conclude with a Chongyang Festival-themed fitness program for aged people in October and the National Public Ice and Snow Season in December. Notably, during this year's inaugural nationwide Spring Festival-themed public fitness initiative, cities across the country incorporated public fitness activities into their overall festive celebrations. Incomplete statistics show that more than 7,200 public competitions were held during the Spring Festival holiday this year, with more than 10 million people participating directly.

Third, the GASC is intensifying efforts to promote and popularize football, basketball, volleyball and ice and snow sports activities nationwide. The GASC has enhanced its support, promotion and development of popular mass sports programs, such as the Village Super League, the Village Basketball League, and the Village Volleyball League. It has further consolidated and expanded the achievement of engaging 300 million people in winter sports, leveraged the leading and demonstrative role of themed events such as the National Public Ice and Snow Season, and helped the public to learn and master winter sports. Additionally, the GASC has enhanced collaboration between online and in-person initiatives. The online public fitness games, already successfully held twice, launched its third edition this year. In 2023, 22.6 million people participated directly in this online event, with over 17 million participation certificates issued.

Moving forward, the GASC will continue to motivate and mobilize the support of Party committees and governments at all levels. It aims to further diversify mass sports offerings, improve related systemic arrangements, enhance event safety and regulation, and continuously boost public enthusiasm for participation.

This concludes my response. Thank you.

Cover News:

In recent years, an increasing number of people are engaging in fitness and workout activities. What measures has the GASC taken to meet the growing demand for fitness? Thank you.

Zhou Jinqiang:

Mr. Ding will also address this question.

Ding Dong:

Thank you for your question. As you mentioned, there has been a growing awareness of physical fitness in recent years. Simultaneously, people are increasingly concerned about the quality of fitness activities, focusing on factors such as convenient venues, friendly environment, the scientific basis of training methods and progress tracking. We believe that people's primary concerns in this field revolve around whether they can exercise, whether they understand how to exercise and how they can exercise properly. The GASC has proactively collaborated with governments at all levels and relevant departments to implement various measures to address people's concerns.

First, fitness-for-all venues and facilities have been built to ensure people have somewhere they can exercise. We introduced a series of policies and standards to accelerate the construction of sports parks, public fitness centers, fitness walking paths, public football pitches, public skating rinks, and other public fitness facilities. During the 14th Five-Year-Plan period, the GASC worked with relevant departments, and supported local governments to carry out 17,000 fitness facility projects with a total of 2.3 billion yuan. Sports venues are encouraged to open to the public for free or at a low fee. By the end of 2023, the area of sports fields per capita reached 2.89 square meters, and the total length of fitness walking paths nationwide exceeded 371,000 kilometers, which has effectively facilitated the public to participate in physical exercise.

Second, fitness-for-all information has been offered to guide people in how to exercise correctly. In recent years, a range of fitness guidance campaigns have been initiated across the country, such as grassroots fitness instructions, fitness lectures and national physical fitness tests. Fitness knowledge and directions have been brought into schools, rural areas, communities and enterprises. We actively researched popular fitness methods, produced simple and easy fitness short videos and programs, and released science popularization works on sports safety to the public. We have also carried out fitness-for-all volunteer service activities for three years, and selected 313 excellent cases throughout the country. As more volunteers and organizations have taken part in the fitness-for-all services, the overall capability of fitness-for-all volunteer services have been improved significantly.

Third, fitness-for-all competitions and activities have been organized to ensure people can exercise well. At present, mass events of the National Games, the national fitness-for-all competition, and community games have become very popular, and eight nationwide fitness-for-all activities have been held annually, including New Year's climbing events and Fitness-for-All Day. In addition, a number of mass sports events sponsored by various social sports organizations on football, basketball, volleyball and winter sports have been widely promoted to provide more platforms for the public to showcase their fitness achievements. Thank you.

Science and Technology Daily:

A large amount of advanced sports equipment created in China shone at the recently concluded Paris 2024 Olympic Games. Could you briefly introduce this topic? Thank you.

Zhou Jinqiang:

Thank you. I would like to invite Ms. Yang to answer your question.

Yang Xuedong:

Thank you for your question. As an important part of the sports industry, the sporting goods and equipment sector accounts for half of the entire industry. In recent years, we have vigorously boosted the transformation and upgrading of the sporting goods and equipment sector, and advanced the innovation capabilities of sporting goods manufacturing enterprises. Two batches of specialized and sophisticated enterprises that produce new and unique products as well as single-product specialists in the manufacturing industry have been released for the sports industry. So far, the number of these two kinds of enterprises has reached 80 and 15, respectively. The quality and influence of Chinese sports products has constantly been advanced.

At the just concluded Paris 2024 Olympic Games, Chinese athletes achieved successes in both sports competition and sportsmanship, realizing the goal of achieving the best possible athletic results at the event. Innovative products made by Chinese enterprises also stood out at the Games. For example, the colored table tennis tables and the Chinese-made barbells impressed the global audiences. In terms of new technology applications, the "bullet time" multi-camera replay system, deployed at the beach volleyball, tennis, judo and other venues, provided viewers with cinematic effects like freeze-frame views for the first time in a summer Olympics. In terms of new material utilization, the Chinese team's bicycles used in the track cycling events were made from T1100 carbon fiber. The weight of each bicycle frame was only 1,150 grams, which is among the lightest for similar products anywhere in the world. In terms of new concept implementation, the floors in the 3x3 basketball and table tennis venues were made from recyclable rubber, demonstrating an environmentally friendly approach featuring green and low-carbon development. The appearance of these products in the international arena has further enhanced the image of Chinese sports enterprises, showcasing the country's sci-tech innovation and manufacturing capabilities, and reflecting China's determination to drive the industrial chain development toward medium and high-end.

Our next steps will be to focus on both the government and the market. On the government side, we will continue to improve policies. We will work with the Ministry of Industry and Information Technology (MIIT) to formulate and issue policy documents to promote the high-quality development of the sporting goods manufacturing sector and optimize the business environment. On the market side, we will continue building brands, creating a number of high-end "intelligent manufacturing in China" brands in the sports sector, cultivating more world-class sports companies, accelerating the transformation and upgrading of sporting goods manufacturing, and further increasing international competitiveness.

This is all that I have to share with you. Thank you.

CCTV:

The 2024 Paris Olympics led to increased interest in physical fitness and exercise across the country, also promoting a surge in sports-related consumer spending. In light of the relevant measures introduced to capitalize on this sports economy, could you brief us on the relevant progress and specific developments? Thank you.

Zhou Jinqiang:

I will take this question. Sports events have a huge driving effect on the sports economy. In accordance with the unified directives of the CPC Central Committee and the State Council, we have partnered with the Ministry of Commerce (MOFCOM) and the Ministry of Culture and Tourism (MCT) on two initiatives: "bringing sports events into scenic spots, neighborhoods, and business districts" and "traveling with sports events." These two initiatives have generated widespread enthusiasm across society and the tourism market, achieving positive social outcomes. Now is the middle of the year, and the overall figures have not yet been counted, but I can share two examples. First, the Olympic Qualifier Series Shanghai held in May this year attracted 45,000 domestic and international spectators, generating 643 million yuan in direct economic returns and 1.402 billion yuan in indirect benefits. Second, from January to August, Fujian province hosted 542 similar events, with 2.48 million participants, driving 3.685 billion yuan in various types of consumption, a 21% year-on-year increase. In July, to better implement these two initiatives, we worked with the MCT to release a 2024 summer national outdoor sports event catalog for the "traveling with sports events" initiative. This combines summer leisure activities with the excitement of the 2024 Paris Olympics, continuously unlocking consumption potential.

The driving effect of the 2024 Paris Olympics on the sports industry is also  significant, which can be summarized as the three "mores." First, niche sports have become more popular. Sports like BMX, street dance, rock climbing, breakdancing, and tennis have attracted considerable attention. According to statistics, in July, tennis-related group purchases on the e-commerce platform Meituan increased by 172%. Second, the ways people watch sports have become more innovative. In addition to traditional TV and new media outlets, people are now watching live events in cinemas, creating a more immersive atmosphere and more engagement. During the Paris Olympics, we received much feedback about this trend, suggesting it could be a promising development trend in the future. Finally, the economic impact has been more pronounced. Data from platforms like Douyin and Kuaishou show that during the Olympics this year, sales of viewing-related items, such as alcoholic beverages, food and digital home appliances, more than doubled compared to the previous year. This is a brief overview of the recent developments.

Looking ahead, we will focus on three areas. First, we will fully leverage policy measures. We will introduce more policies to maximize benefits, develop regulations related to sports events, address bottlenecks, and further enrich the scenarios for sports event consumption. Second, we will make good use of sports initiatives. We will continue to work with relevant departments to promote the "traveling with sports events" and "bringing sports events into scenic spots, neighborhoods, and business districts" initiatives, as mentioned just now, to enhance their impact. Third, we will strengthen publicity efforts. We will summarize and promote successful experiences and practices from various places in developing the sports event economy and boosting sports consumption. We've already issued the first batch of practical cases for the sports event economy, and a second batch is in preparation to further guide its development. Thank you.

National Business Daily:

We've noticed a rapid growth in demand for youth sport training. How do you plan to further guide and regulate services in this sector? Thank you.

Zhou Jinqiang:

Thank you. I will invite Mr. Zhang to answer this question.

Zhang Xin:

Thank you for your question. Youth sports training institutions are vital platforms for teenagers to participate in physical exercise, learn sports skills and improve their competitive abilities. In recent years, these institutions have developed rapidly, growing in number and offering diverse, innovative content to meet the growing demand for sports training among teenagers. Statistics show that there are now over 30,000 youth sports training institutions in China. Managing and effectively utilizing these institutions is a significant challenge for us.

To address this, the GASC has issued documents such as the "Code of Conduct for Extracurricular Sports Training" and "Opinions on Further Standardizing and Developing Sports Training," establishing an initial regulatory policy framework. We've guided local sports administrations to introduce standards for sports training institutions, implement regulatory responsibilities at various levels, and establish working mechanisms. At present, some localities have developed effective practices in providing guidance and services, standardizing personnel qualifications, and improving regulatory mechanisms. These include creating databases of training institutions and "white lists" of employees, conducting training credit evaluations and unified personnel training, developing a regulatory information database and implementing a dynamic management system for training institutions. By continually regulating the youth sports training industry, we aim to foster a healthy and orderly environment, ensuring parents can enroll their children with confidence and children can learn with enjoyment. Thank you all.

Jinan Times app:

Convenient access to physical exercise is an issue of great concern to the public. Many regions now have numerous well-equipped sports facilities. Given this, how is the GASC working to ensure these public sports venues are accessible to the community at large? Thank you.

Zhou Jinqiang:

I'll invite Mr. Ding to answer this question.

Ding Dong:

Thank you for your question. Public sports venues are crucial for national fitness activities, and their accessibility greatly impacts the public's ability to engage in physical exercise. The GASC places high importance on maximizing public access to these facilities. We actively work with relevant departments to improve the utilization rate and service quality of public sports venues.

Specifically, we have refined the allocation of central government funds and expanded the scope of support for public sports venues. The subsidy criteria now consider factors such as the number of eligible venues in each region, the open area for fitness activities, and annual visitor numbers, rather than just seating capacity. The subsidy now includes popular, eligible small- and medium-sized venues and national fitness centers, not just large venues. Funds can be used for hosting non-profit sports events, sports training, daily maintenance, equipment upgrades, and improving venue information technology services.

Concerning venue services, we've formulated supporting policies and documents relating to basic public service standards for public sports venues and guidelines for evaluating free or low-cost open services. These policies outline specific requirements for venue accessibility and service content, stipulating that low-fee pricing should generally not exceed 70% of local market rates. More preferential services are mandated for the elderly, disabled individuals, students, military personnel, and firefighters, as well as for non-profit community sports events. The standard fees for these groups are typically required to be no more than half the market price.

To enhance supervision and evaluation, we've guided localities to strengthen supervision and evaluation in areas such as hosting sports events and training programs, supporting school sports programs, and providing facilities for non-profit sports organizations. We require annual  publication of venue usage data on the National Fitness Information Service Platform for public scrutiny. At the same time, we commission third-party agencies to conduct annual inspections and evaluations of venue operations across the country.

Since the start of the 14th Five-Year Plan period, we have allocated about 1 billion yuan annually to support public sports venues opening to the public for free or at reduced prices. The number of subsidized venues has increased from over 1,000 per year to more than 3,000 now. According to statistics, 3,050 eligible public sports venues are open to the public for free or at low cost in 2024, covering nearly 1,600 county-level administrative areas. The core areas of these venues that are free or low-cost cover over 25 million square meters. We estimate that more than 500 million people will benefit from this initiative.

That's all from me. Thank you.

The Beijing News:

With the conclusion of the Paris Olympics, a new Olympic cycle has begun. What's the outlook for China's participation in the Los Angeles Olympics? What are your expectations for China's performance? Thank you.

Zhou Jinqiang:

We will have Mr. Zhang answer this question.

Zhang Xin:

Thank you for your question. The 34th Summer Olympic Games will be held in Los Angeles, United States, in 2028. After the Paris Olympics, we face a series of new challenges based on the analysis of global competitive sports in the new cycle and changes in the Los Angeles Olympics' program.

Competitive sports always face challenges, and China's competitive sports boldly meet these head-on. We will thoroughly study and implement the spirit of General Secretary Xi Jinping's important speech when meeting with China's Olympic delegation for the Paris Games. We'll improve scientific training methods, build on our strengths while addressing weaknesses, accelerate talent development, and make high-quality preparations for the Los Angeles Olympics. On the one hand, we'll firmly consolidate our country's strong performance in advantageous sports to compete for gold and medals. On the other hand, we'll make great efforts to tap potential in basic events like track and field and swimming, as well as emerging and combat sports. Simultaneously, we'll speed up the revitalization of basketball, volleyball, and soccer, continuously improving China's competitiveness and influence on the world competitive sports stage.

We are convinced that with the care and attention of the CPC Central Committee and the State Council, as well as the strong support of the Chinese people, as long as we make strenuous efforts, carry forward China's sporting spirit, unite and work hard, and courageously strive for the best while continuing to scale new heights, we are sure to continue to demonstrate the demeanor of Chinese athletes at the Los Angeles Olympic Games. Thank you.

Shou Xiaoli:

One last question, please.

China Financial and Economic News:

In recent years, the outdoor sports industry has attracted wide attention. What measures will be taken in the next step to further develop this industry? Thank you.

Zhou Jinqiang:

Thank you for your questions. We will have Ms. Yang to answer this question.

Yang Xuedong:

Thank you for your question. The outdoor sports industry is a green industry and an effective way to practice General Secretary Xi Jinping's concepts that "lucid waters and lush mountains are invaluable assets" and "ice and snow are also invaluable assets." The third plenary session of the 20th Party Central Committee proposed accelerating the improvement of the institutions and mechanisms for applying the principle that lucid waters and lush mountains are invaluable assets. Last month, the Party Central Committee and State Council issued opinions on ramping up the green transition in all areas of economic and social development, providing systematic plans. These have created rare opportunities for the outdoor sports industry's development. Next, we will seize these opportunities and focus on three main aspects to further promote high-quality development in the outdoor sports industry.

Regarding government services optimization, we'll continue improving policies for the outdoor sports industry. We'll work with the National Development and Reform Commission and other departments to implement the Development Plan for the Outdoor Sports Industry (2022-2025) and the Action Plan for Advancing Infrastructure Construction and Service Improvement for Outdoor Sports (2023-2025). We'll accelerate research on measures to further promote the industry's development, such as policies to use winter sports to drive the ice-and-snow economy, and develop high-quality outdoor sports destinations. We'll continuously optimize the development environment to advance high-quality growth in the outdoor sports industry.

In terms of strengthening market supply, we'll continue to enhance the construction of outdoor sports venues and facilities. We'll fully mobilize social forces, coordinate various funding channels, encourage social capital investment, and advance the construction of outdoor venues and facilities such as mountain camps, aviation flight camps, road trip sports camps, sports boat docks and ski resorts. This will further consolidate the foundation for outdoor sports development.

To promote social demand, we'll continue to diversify the supply of outdoor sports products and services. Last October, we held the first China Outdoor Sports Industry Conference in Dali, Yunnan Province, leading new trends in outdoor sports. Last week, we held the launch ceremony for the 2024 China Outdoor Sports Industry Conference. We'll gather industry resources, improve supply-demand matching platforms, and further diversify outdoor sports products and services. We hope you'll pay more attention to and support these efforts.

That's all from me. Thank you.

Shou Xiaoli:

Thanks to Mr. Zhou and all the speakers. Thanks for the participation of friends from the media. Today's briefing is hereby concluded. See you.

Translated and edited by Liu Caiyi, Wang Wei, Liu Sitong, Zhang Rui, Zhang Jiaqi, Ma Yujia, Zhu Bochen, Lin Liyao, Wang Qian, Yan Bin, Liu Qiang, Zhang Tingting, Li Huiru, Xu Kailin, Yuan Fang, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speaker:

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

Date:

Sept. 14, 2024

Xing Huina:

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 Ms. Liu Aihua, spokesperson and chief economist of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS. Ms. Liu will brief you on China's national economic performance in August 2024 and then take your questions.

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

Liu Aihua:

Now, I'll brief you on the economic performance in August this year.

The national economy was generally stable in August this year. 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 strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council. All regions and departments adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, strengthened macro-regulation, and strove to promote high-quality development. As a result, production and demand sustained a recovery, employment and prices were basically stable, and high-quality development continued to move ahead. The national economy maintained stability in general while making steady progress.

First, the industrial production increased steadily with fast growth in equipment manufacturing and high-tech manufacturing.

In August, the total value added of industrial enterprises above designated size grew by 4.5% year on year, or up by 0.32% month on month. In terms of sectors, the value added of mining went up by 3.7% year on year, manufacturing up by 4.3%, and the production and supply of electricity, thermal power, gas and water up by 6.8%. The value added of equipment manufacturing increased by 6.4% year on year, and that of high-tech manufacturing increased by 8.6%, 1.9 percentage points and 4.1 percentage points faster than that of the total value added by industrial enterprises above designated size. An analysis by types of ownership showed that the value added of state-holding enterprises was up by 3.6% year on year; that of share-holding enterprises was up by 5.0%; 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 4.5%. In terms of products, the production of new-energy vehicles, service robots and integrated circuits grew by 30.5%, 20.1% and 17.8% year on year, respectively. In the first eight months, the total value added of industrial enterprises above designated size went up by 5.8% year on year. In August, the Manufacturing Purchasing Managers' Index stood at 49.1%, and the Production and Operation Expectation Index was 52.0%. In the first seven months, the total profits made by industrial enterprises above designated size were 4,099.2 billion yuan, up by 3.6% year on year.

Second, the service sector continued to recover and the modern services sector developed well. 

In August, the Index of Services Production grew by 4.6% year on year. Specifically, that of information transmission, software and information technology services, leasing and business services, financial intermediation, transport, storage and postal services grew by 12.1%, 9.4%, 5.7% and 5.2% year on year, respectively, which was 7.5 percentage points, 4.8 percentage points, 1.1 percentage points and 0.6 percentage point faster than that of the Index of Services Production. In the first eight months, the Index of Services Production increased by 4.9% 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 50.2% and the Business Activity Expectation Index for Services was 55.4%. Specifically, the Business Activity Index for railway transportation, air transportation, postal services, telecommunication, broadcast, television and satellite transmission services, and culture, sports and recreation stayed within the high expansion range of 55.0% and above. 

Third, the market sales kept increasing and online retail sales grew rapidly. 

In August, the total retail sales of consumer goods reached 3,872.6 billion yuan, up by 2.1% year on year, or down by 0.01% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3,357.5 billion yuan, up by 1.8% year on year; and that in rural areas reached 515.1 billion yuan, up by 3.9%. Grouped by types of consumption, the retail sales of goods were 3,437.5 billion yuan, up by 1.9%; the income of catering was 435.1 billion yuan, up by 3.3%. Certain basic living goods and upgraded goods sold well. The retail sales of grain, oil, and food and that of traditional Chinese and western medicines by enterprises above designated size went up by 10.1% and 4.3% respectively; the retail sales of telecommunication equipment and that of household appliances and audio-video equipment went up by 14.8% and 3.4% respectively. In the first eight months, the total retail sales of consumer goods reached 31,245.2 billion yuan, up by 3.4% year on year. The online retail sales were 9,635.2 billion yuan, up by 8.9% year on year. Specifically, the online retail sales of physical goods were 8,014.3 billion yuan, up by 8.1%, accounting for 25.6% of the total retail sales of consumer goods. In the first eight months, the retail sales of services grew by 6.9% year on year. 

Fourth, the investment in fixed assets scaled up and investment in high-tech industries grew quickly.

In the first eight months, the investment in fixed assets (excluding rural households) reached 32,938.5 billion yuan, up by 3.4% year on year; the investment in fixed assets was up by 7.7% with the investment in real estate development deducted. Specifically, the investment in infrastructure grew by 4.4% year on year, that in manufacturing grew by 9.1%, and that in real estate development declined by 10.2%. The floor space of new commercial buildings sold was 606.02 million square meters, down by 18.0% year on year; the total sales of new commercial buildings were 5,972.3 billion yuan, down by 23.6%. By industry, the investment in the primary industry went up by 2.9% year on year, that in the secondary industry up by 12.1%, and that in the tertiary industry down by 0.8%. The private investment declined by 0.2% year on year, and increased by 6.3% with the investment in real estate development deducted. The investment in high-tech industries grew by 10.2% year on year, of which the investment in high-tech manufacturing and high-tech services grew by 9.6% and 11.7%, respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicle and equipment and in manufacturing of electronic and communication equipment grew by 34.4% and 10.0%, respectively. In terms of high-tech services, the investment in professional technical services and in e-commerce services grew by 27.7% and 16.8%, respectively. In August, the investment in fixed assets (excluding rural households) increased by 0.16% month on month.

Fifth, imports and exports of goods grew quickly and trade structure continued to optimize.

In August, the total value of imports and exports of goods was 3,752.3 billion yuan, up by 4.8% year on year. The value of exports was 2,200.8 billion yuan, up by 8.4%, and the value of imports was 1,551.5 billion yuan, maintaining the same level year on year. The trade balance was 649.3 billion yuan in surplus. In the first eight months, the total value of imports and exports of goods was 28,583.8 billion yuan, up by 6.0%. The total value of exports was 16,455.2 billion yuan, up by 6.9%. The total value of imports was 12,128.6 billion yuan, up by 4.7%. In the first eight months, the imports and exports of general trade went up by 4.6%, accounting for 64.6% of the total value of imports and exports. The imports and exports by private enterprises went up by 10.5%, accounting for 55.1% of the total value of imports and exports, 2.3 percentage points higher than that of the same period last year. The exports of mechanical and electrical products went up by 8.8%, accounting for 59.1% of the total value of exports.

Sixth, employment was generally stable and urban surveyed unemployment rate increased slightly.

In the first eight months, the urban surveyed unemployment rate averaged 5.2%, 0.1 percentage point lower than that of the same period last year. In August, the urban surveyed 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 4.9%, among which, the rate of the population with non-local agricultural household registration was 4.6%. The urban surveyed unemployment rate in 31 major cities was 5.4%. The employees of enterprises worked 48.7 hours per week on average.

Seventh, increase of consumer prices expanded and producer prices for industrial products declined.

In August, the consumer price index (CPI) went up by 0.6% year on year, 0.1 percentage point faster than that in July, or up by 0.4% month on month. Grouped by commodity categories, prices for food, tobacco and alcohol were up by 2.1% year on year; clothing up by 1.4%; housing maintaining the same level year on year; articles and services for daily use up by 0.2%; transportation and communication down by 2.7%; education, culture, and entertainment up by 1.3%; medical services and health care up by 1.3%; and other articles and services up by 3.4%. Among the prices for food, tobacco and alcohol, the price for grain went down by 0.1%, fresh fruits up by 4.1%, pork up by 16.1%, and fresh vegetables up by 21.8%. The core CPI excluding the prices of food and energy went up by 0.3% year on year. In the first eight months, the CPI went up by 0.2% year on year.

In August, the producer prices for industrial products went down by 1.8% year on year, or down by 0.7% month on month. The purchasing prices for industrial producers went down by 0.8% year on year, or down by 0.6% month on month. In the first eight months, the producer prices and the purchasing prices for industrial products dropped by 1.9% and 2.1% year on year, respectively.

Generally speaking, the national economy was generally stable in August with steady progress in pursuing high-quality development. However, we should be aware that adverse impacts arising from the changes in the external environment are increasing, effective demand remains insufficient at home, and the sustained economic recovery is still facing multiple difficulties and challenges. At the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee, adhere to the principle of pursuing progress while ensuring stability, and fully and faithfully apply the new development philosophy on all fronts. We must accelerate efforts to create a new pattern of development, take reform as the driving force in promoting steady growth, making structural adjustments and guarding against risks, strive to promote high-quality development, and speed up the implementation of the reform tasks and policy measures so as to consolidate the foundation for sustained economic recovery and growth.

That is all for my introduction for the national economic performance in August this year.

Xing Huina:

Please raise your hand if you have a question. Before asking, please state the name of your media organization.

CMG:

China's economy has performed steadily this year, maintaining a positive trend. How would you evaluate the economic indicators for August? Thank you.

Liu Aihua:

Thank you for your question. In August, domestic and international conditions became more complex and severe. High temperatures, heavy rain and floods continued to impact economic activities. Facing these challenges, various regions and departments thoroughly implemented decisions from the CPC Central Committee and the State Council. The effects of macroeconomic policies continued to emerge. The economy remained generally stable based on four key indicators we use to assess the macroeconomy — growth, employment, prices and balance of international payments. Meanwhile, transformation and upgrading proceeded steadily, high-quality development achieved new progress, and the economy continued its trend of steady improvement.

First, production remained generally stable, with continued upgrading trends. In agriculture, early rice production held steady this year. Local governments strengthened field management, and most agricultural areas saw favorable conditions. Autumn crops are currently growing normally. Hog farming efficiency improved, with increases in both inventory and slaughter numbers. The added value of industrial enterprises above designated size increased 4.5% year on year in August. Equipment manufacturing continued to play a stabilizing role, with industrial upgrading and the shift to new growth drivers becoming increasingly evident. In August, equipment manufacturing's added value rose 6.4% year on year, contributing 47.9% to the total added value of all industrial enterprises above designated size. The electronics industry maintained double-digit growth, while high-tech manufacturing increased 8.6%. The production of smart, green products such as virtual reality devices, smartwatches, and new energy vehicles has continued to grow rapidly. The service sector production index increased 4.6% year on year in August. Accommodation and catering saw faster growth than the previous month, boosted by summer tourism. Modern service industries performed well, with information transmission, software and IT services growing 12.1% and leasing and business services growing 9.4% in terms of production index.

Second, domestic demand continued to expand with ongoing structural optimization. In terms of consumption, total retail sales of consumer goods rose 2.1% year on year in August, with restaurant revenue growing 3.3%, 0.3 percentage point faster than the previous month. Green and digital consumption showed lively activity, while service consumption potential continued to grow. Online-offline retail integration expanded the scope of consumption and improved consumer experiences. According to the China Automobile Dealers Association, sales of new energy vehicles in August increased 43.2% year on year. From January to August, online sales of physical goods increased 8.1% year on year, significantly faster than the overall growth rate of total retail sales of consumer goods. Service retail sales increased 6.9%, 3.9 percentage points faster than retail sales of goods in the same period. In terms of investment, fixed asset investment rose 3.4% year on year from January to August, with high-tech industry investment growing 10.2%, maintaining double-digit growth for six consecutive months, providing strong support for nurturing and developing new growth drivers.

Third, employment remained stable overall, and consumer prices increased slightly. The national surveyed urban unemployment rate was 5.3% in August, up 0.1 percentage point from July, mainly due to college graduates entering the job market. The employment situation for migrant workers was relatively good, with the surveyed unemployment rate of the population with non-local agricultural household registration dropping by 0.3 percentage point to 4.6% in August compared to the previous month. Consumer prices increased due to high temperatures and rainy weather. The consumer price index (CPI) rose 0.4% month on month in August, the second consecutive monthly increase. Year on year, the CPI rose 0.6%, an increase of 0.1 percentage point compared to the previous month, continuing a moderate upward trend.

Fourth, foreign trade showed growth, and foreign exchange reserves continued to grow. Despite the slowing global economic recovery and weakened manufacturing activity worldwide, China's total imports and exports in August rose 4.8% year on year, reaching a record high for the month. Exports grew 8.4%, up 1.9 percentage points compared to the previous month. The trade structure continued to improve, with the cumulative growth rate of machinery and electronics products exports accelerating by half a percentage point, accounting for nearly 60% of total exports. Products such as automobiles and integrated circuits continued to show strength, with their export values maintaining rapid growth. The Belt and Road Initiative continued to show results, with China's imports and exports to partner nations increasing 7% year on year from January to August, outpacing overall import-export growth. At the end of August, foreign exchange reserves increased $31.8 billion from July, remaining above $3.2 trillion for the year. The yuan showed a trend of steady appreciation.

Looking at the overall performance for the first eight months of the year, the scale of major indicators continued to expand steadily, with growth rates remaining largely stable. From January to August, retail sales of consumer goods and fixed asset investment hit 31.2 trillion yuan and 32.9 trillion yuan, respectively, highlighting the potential of China's super-large market. China's total value of imports and exports reached 28.6 trillion yuan, maintaining its global market share. The added value of industrial enterprises above designated size, the service production index, retail sales of consumer goods and fixed asset investment grew by 5.8%, 4.9%, 3.4%, and 3.4%, respectively, all remaining consistent with the January-July period. These figures indicate that China's macroeconomy remains stable overall, and the trend of steady economic operation continues.

In summary, China's economy remained generally stable in August, with continued progress in high-quality development. However, we must recognize that the international environment has become more complex and severe, with increasing instability and uncertainty. Domestic issues such as insufficient demand persist, the transition between old and new growth drivers involves some difficulties, and certain industries and enterprises still face operational challenges. In the next phase, we must continue to thoroughly implement the decisions of the third plenary session of the 20th CPC Central Committee and meetings of the CPC Central Committee Political Bureau. We must strengthen macroeconomic regulation, deepen innovation-driven development, fully tap domestic demand potential, enhance market vitality, stabilize market expectations, and promote both qualitative and quantitative economic growth. Thank you.

Zhinews of Shenzhen Satellite TV:

How would you evaluate the highlights of August's industrial data? And what is the current overall situation of industrial production within China? Thank you.

Liu Aihua:

In August, due to a higher comparison base from the same period last year, the year-on-year growth rate of the added value of industrial enterprises above designated size decreased compared to the previous month. Excluding seasonal factors, the added value of industrial enterprises above designated size saw a month-on-month increase of 0.32%, maintaining a growth trend. Cumulatively, in the January–August period, its growth was 5.8%, maintaining overall stability. Most industries, regions and products achieved growth, with significant trends toward the development of high-end, intelligent and green industries. The high-quality development of the industrial sector continued to advance. The sector is characterized by four features:

First, over 80% of regions, nearly 80% of industries and more than 50% of products achieved growth. In August, out of the 31 provincial-level regions nationwide, 25 saw growth in added value, with the proportion hitting 80.6%. Among the 41 major industries in the industrial sector, 32 industries saw year-on-year growth in added value, with the proportion close to 80%. Among the 619 industrial products surveyed, 339 products saw year-on-year growth in output, with the proportion reaching 54.8%.

Second, the equipment manufacturing industry continued to take a prominent role as an "anchor" of industrial growth. In August, the added value of equipment manufacturing enterprises above designated size increased by 6.4% year on year, maintaining fast growth and contributing 47.9% to the growth of the total added value of industrial enterprises above designated size, close to half. From January to August, the added value of the equipment manufacturing industry accounted for 33.5% of industrial enterprises above designated size; and the proportion continued to rise from the January-July period and has remained above 30% for 18 consecutive months. Profits for the equipment manufacturing industry maintained stable growth. In the first seven months, the equipment manufacturing industry's profits increased by 6.1% year on year, 2.5 percentage points higher than the total profits of industrial enterprises above designated size; and they accounted for 35.1% of the total profits of industrial enterprises above designated size, an increase of 0.8 percentage point compared to the same period last year.

Third, new drivers for manufacturing development continued to grow. With the continuous application of technological and innovative achievements as well as digital technology, process updates, digital empowerment and green and low-carbon initiatives will help to drive industrial upgrading and new drivers will continue to grow. In August, the added value of high-tech manufacturing enterprises above designated size increased by 8.6% year on year, with electronic and communication equipment manufacturing growing by 11.4% and maintaining double-digit growth for 10 consecutive months. The added value of intelligent unmanned aerial vehicle manufacturing increased by 54% year on year. Navigation, surveying, mapping, meteorological and marine special instrument manufacturing grew by 65.1%, while electronic measuring instrument manufacturing increased by 12.6%. All these maintained a rather fast growth momentum. The new energy industry also saw solid growth. In August, the output of new energy vehicles and charging piles increased by 30.5% and 97% year on year, respectively, both registering quite a rapid growth. The output of polysilicon and solar ultra-clear glass — both green materials within the new energy industrial chain — increased by 20.3% and 49%, respectively.

Fourth, the export of industrial products continued to be a driving force. In August, the export delivery value of industrial enterprises above designated size increased by 6.4% year on year, unchanged from the previous month and maintaining relatively fast growth. From January to August, its cumulative growth rate was 4.1%, and the rate accelerated month by month this year. Among the 39 major export industries, 32 industries saw export growth, with the proportion reaching 82.1%. The export delivery value of the computer, communication and electronic equipment manufacturing industry, which accounts for nearly 40% of the main export industries, grew by 3.4% year on year, 0.9 percentage point higher than the previous month. The export delivery value of automobile manufacturing grew by 15.9%, 2.9 percentage points higher than the previous month and maintaining double-digit growth for nine consecutive months. The export delivery values for general equipment, special equipment, metal products as well as railway, ship and aerospace industries all achieved double-digit growth.

In the next stage, the effects of macro policies, such as implementing major national strategies, building up security capacity in key areas as well as promoting large-scale equipment renewals and trade-ins of consumer goods, will take hold. As new fields and arenas, such as artificial intelligence, continues to expand, and the domestic large-scale market and rich scenario application technologies grow, all these will be conducive for boosting domestic demand and extending space for development. Overall, the industrial sector is expected to maintain a stable development trend.

That concludes my response.

Phoenix TV:

In August, the year-on-year CPI increase expanded, reaching its highest level in the past six months. What are the underlying factors behind this? What is your outlook for future trends? Thank you.

Liu Aihua:

Influenced by factors such as high temperatures and heavy rainfall, the national CPI showed a seasonal month-on-month increase in August, and its year-on-year growth was larger than that of the previous month.

First, looking at the month-on-month change, the CPI increased by 0.4%, a decrease of 0.1 percentage point compared to the previous month. Specifically, food prices increased by 3.4%, contributing approximately 0.6 percentage point to the month-on-month increase in the CPI. Non-food prices decreased by 0.3%, contributing approximately 0.24 percentage point to the month-on-month decrease in the CPI. In the food category, mainly influenced by high summer temperatures and localized heavy rainfalls, the prices of fresh vegetables, fresh mushrooms, fresh fruits and eggs increased, collectively contributing 0.49 percentage point to the month-on-month increase in the CPI. Pork prices increased by 7.3%, contributing 0.1 percentage point to the month-on-month increase in the CPI. In the non-food category, mainly influenced by fluctuations in international oil prices, domestic gasoline prices decreased by 3%. With the school season coming, due to a decline in demand for travel, airplane ticket prices and travel prices decreased by 5.1% and 0.7%, respectively.

Looking at the year-on-year change, the CPI increased by 0.6%, an increase of 0.1 percentage point compared to the previous month. Food prices, which saw a flat rate in the previous month, rose by 2.8%, contributing approximately 0.51 percentage point to the year-on-year increase in the CPI. Non-food prices increased by 0.2%, contributing approximately 0.13 percentage point to the year-on-year increase in the CPI. In the food category, the prices of fresh vegetables, fresh fruits and pork increased by 21.8%, 4.1% and 16.1%, respectively, while the prices of eggs, edible oils, beef, mutton and tubers decreased within a range of 4% to 14.5%. In the non-food category, service prices rose by 0.5%, a decline of 0.1 percentage point. Specifically, medical service prices increased by 1.9%, education service prices increased by 1.7% and family service prices increased by 1.6%. At the same time, airplane ticket prices decreased by 11.9% and hotel accommodation prices decreased by 3.6%. In the non-food category, the prices of industrial consumer goods decreased by 0.4%, among which gasoline prices decreased by 2.7%, the prices of fuel-powered compact cars decreased by 6.4%, and the prices of daily household necessities, indoor decorations and traditional Chinese medicines increased within a range of 1.1% to 6.9%. These are the main reasons for the month-on-month and year-on-year changes of the CPI in August.

Looking ahead, with cooler temperatures and the end of China's major flood season, reduced rainfall will provide favorable conditions for vegetable cultivation, transportation and storage. Moreover, considering increased consumer demand during the Mid-Autumn Festival and National Day holidays, overall vegetable prices might experience a modest decrease. Given the reduced hog production and the impending traditional peak season for consumption, pork prices are likely to increase further. Overall, food prices are expected to remain stable. Regarding industrial consumer goods, energy prices are facing increasing downward pressure due to international factors. Meanwhile, the supply of other industrial consumer goods is ample, therefore, their prices are expected to remain stable. Service prices are expected to experience a slight increase due to the impact of the Mid-Autumn Festival and National Day holidays. Given all the factors mentioned above, the CPI is expected to gradually increase in the coming period.

CNBC: 

The data for July and August indicated a slowdown in the growth of value-added industrial output and fixed-asset investment. What are the differences between August and July? And what factors might have contributed to this? Thank you.

Liu Aihua:

Thank you for your questions. Regarding the changes in industrial production and investment in July and August, I would say, industrial production in July and August was hindered by a combination of factors, including adverse weather conditions like heatwaves, torrential rain and floods. Meanwhile, some industries were also affected by weak market demand. Given all this, the year-on-year growth of value-added industrial output slowed in July and August. Both months experienced relatively fast month-on-month growth. Therefore, the cumulative growth remained stable. Notably, the transformation and upgrading of industries has been advancing, as mentioned previously, with the added value of high-tech manufacturing and equipment manufacturing experiencing robust growth. Investment activities were also affected by extreme weather conditions, with some regions reporting a decline in construction due to persistent high temperatures and extreme weather. Nevertheless, investment continued to expand in scale and improve in structure. Fixed asset investment grew by 3.4% year on year between January and August, and maintained positive growth in August from the previous month. Structural data has revealed several significant features of the current investment situation:

First, investment in the manufacturing sector has been a major driving force for overall investment growth. Investment in the manufacturing industry experienced a 9.1% year-on-year growth in the first eight months, outpacing overall investment by 5.7 percentage points. It contributed 2.2 percentage points to the growth of total investment, making up more than 60% of the total investment growth. Notably, investment in the sectors of equipment manufacturing, consumer goods manufacturing and raw materials manufacturing all saw robust growth, expanding by 10%, 14.9% and 9% year on year, respectively.

Second, investment in high-tech industries has been active. In recent years, China has made concerted efforts to cultivate new quality productive forces, and steadily foster new growth drivers and new strengths. It has stepped up efforts to support sci-tech innovation, witnessing a rapid growth in the investment in high-tech industries. From January to August, investment in high-tech industries expanded by 10.2% year on year, outpacing overall investment growth by 6.8 percentage points. Notably, investment in the electronic and telecommunication equipment manufacturing sector, aerospace and equipment manufacturing sector, as well as information service sector, and services for commercialization of technology breakthroughs surged by 10%, 34.4%, 9.9% and 15.9% year on year, respectively. These all significantly outpaced overall investment growth.

Third, large-scale projects have been a key driver of investment growth. From January to August, investment completed in projects with planned total expenditures of 100 million yuan and above grew by 7% year on year, contributing 3.8 percentage points to overall investment growth. As such, they have played their role as a "cornerstone" in maintaining the momentum of investment growth. 

Fourth, equipment upgrades have yielded significant results. Driven by the policies to promote large-scale equipment upgrades, investment in machinery and equipment has grown rapidly, significantly contributing to overall investment growth. From January to August, investments in purchasing new machines and equipment increased by 16.8% year on year, 13.4 percentage points higher than overall investment growth.

Despite a moderate decrease in the cumulative growth rate of investment, which is due to the impact of extreme weather, investment is currently increasing in terms of both volume and quality. Looking ahead, the issuance and utilization of ultra-long treasury bonds and special government bonds will accelerate, and the policies to promote a new round of large-scale equipment upgrades and trade-in of consumer goods will play a bigger role. Moreover, increased efforts will be made to advance major national strategies and build up security capacity in key areas. As a result, financial support and support for project implementation are expected to be improved, thereby maintaining steady growth of investment. Meanwhile, China still has great potential for progress in cultivating new quality productive forces, transforming and upgrading industries, transitioning toward green and low-carbon economy, and shoring up weaknesses in improving people's livelihoods. These areas offer significant investment opportunities for both the government and enterprises. Investment in such areas will play a greater role in stabilizing growth, adjusting structure, improving supply and benefiting the people. Thank you. 

National Business Daily:

Given the August employment data, how would you assess the performance of China's job market at present? What policy measures or suggestions do you have to further promote high-quality employment? Thank you.

Liu Aihua:

Since the beginning of the year, all regions and departments have intensified efforts to implement the employment-first strategy, strengthening the policy of giving priority to employment, and improving the mechanism to ensure employment. As a result, the overall job market has remained stable. From January to August, the average of surveyed urban unemployment rate in China stood at 5.2%, 0.1 percentage point lower than that last year. The surveyed urban jobless rate was 5.3% in August, rising by 0.1 percentage point from the previous month, primarily due to the impact of graduation season.

The surveyed unemployment rate for migrant workers decreased. In August, this rate was 4.9%, down 0.2 percentage point from the previous month. The surveyed unemployment rate for rural migrant workers was 4.6%, a decrease of 0.3 percentage point from July. This decline is primarily attributed to increased summer travel activities, which have boosted employment in related industries.

The urban surveyed unemployment rate in major cities saw a slight increase. In August, this rate in 31 major cities was 5.4%, up 0.1 percentage point from the previous month. The slight uptick in both the national urban surveyed unemployment rate and that of the 31 major cities is primarily due to the influx of recent college graduates entering the labor market during graduation season.

It's also important to recognize that, with a large labor force and ongoing economic restructuring, China faces both pressures on overall job creation and significant structural employment challenges. More efforts are needed to stabilize employment. In the next stage, we must continue to follow the plans outlined at the third plenary session of the 20th CPC Central Committee, developing sound mechanisms for promoting high-quality, full employment and refining the related public services system. We must also improve employment support for key groups, such as college graduates, rural migrant workers and veterans, to maintain the current stable employment situation. Thank you.

Cover News:

Since the start of this year, the State Council has released an action plan to initiate large-scale equipment upgrades and consumer goods trade-ins. Relevant departments have also rolled out an array of supportive policies. What results have been achieved in implementing these policies? Have these results met your expectations? Thank you.

Liu Aihua:

Thank you for your question. The Central Economic Work Conference held at the end of last year proposed promoting large-scale equipment upgrades and consumer goods trade-ins to pursue higher standards for technology, energy consumption and emissions. In March, the State Council released an action plan to make comprehensive arrangements in this regard. At the end of July, relevant departments issued measures to support these initiatives more. Many regions have also issued supportive policies. As the policy scope expands and intensifies, its effects continue to be felt.

First, regarding industrial production, equipment manufacturing and consumer goods industries grew rapidly, driven by policy incentives. In August, due to equipment upgrades and other factors, the added value increased across several sectors: ship and related equipment manufacturing rose by 23%, urban rail transit equipment by 17.1%, textile, garment and leather processing specialized equipment by 10.5%, and communication equipment by 10.3%. All these sectors achieved double-digit growth. Product-wise, food manufacturing machinery output rose by 66% year on year, textile specialized equipment 15.7%, and packaging specialized equipment 13.5%, all faster than the previous month. Stimulated by factors like trade-ins, consumer goods manufacturing added value grew 4.2% year on year, slightly faster than in July. Of the 13 consumer goods industries, 10 achieved year-on-year growth. In terms of specific products, those covered by relevant policies showed significant growth: household washing machine production increased by7%, smart TV production rose by6.7%, and household refrigerator production grew by 4.7%.

In terms of investment, driven by large-scale equipment upgrade policies, investment in equipment, tools and instruments grew rapidly, significantly boosting overall investment growth. From January to August, the contribution of investment in purchasing equipment, tools and instruments to overall investment growth reached 64.2%, up 3.5 percentage points from the January-July period.

In terms of consumption, driven by consumer goods trade-in policies, retail sales of household appliances and audio-visual equipment shifted from a 2.4% year-on-year decline in July to a 3.4% increase in August. High-efficiency appliances achieved double-digit growth in retail sales. New energy vehicle (NEV) sales grew even faster. According to the China Automobile Dealers Association, the August retail volume of NEVs increased by43.2% year on year, up 6.3 percentage points from July. The penetration rate of NEVs reached 53.9%, exceeding 50% for two consecutive months.

As policies for large-scale equipment upgrades and consumer goods trade-ins are further implemented in detail, their scope and public awareness will expand, likely enhancing their effectiveness. These policies are expected to boost domestic demand and promote the development of new growth drivers. Thank you.

Hongxing News:

How do you view the current trends in the real estate industry, and how effective have the various local real estate support measures been? The next phase includes the traditional "Golden September and Silver October" period for the property market. What's your perspective on the trends for this upcoming phase? Thank you.

Liu Aihua:

Your question concerns the real estate sector. Some key indicators show a narrowing of declines due to a series of policies and measures. From January to August, real estate development investment fell by 10.2%, the same rate of decline as in the first seven months of the year. The sales area of commercial housing decreased by 18%, with the decline narrowing by 0.6 percentage point. The sales value of commercial housing dropped by 23.6%, with the decline narrowing by 0.7 percentage point. The area of new housing construction decreased by 22.5%, with the decline narrowing by 0.7 percentage point.

These changes indicate the real estate market is still undergoing adjustments. Looking ahead, China's ongoing urbanization and the accelerating development of a new real estate model suggest the market still has a significant potential. We must continue implementing city-specific policies and accelerate policy implementation to gradually promote steady, healthy real estate market development and better meet people's housing needs. Thank you.

ThePaper.cn:

How would you assess August's consumer spending data? Many local governments have issued ultra-long special treasury bonds this year to support consumer goods trade-in initiatives. What's your outlook for consumer spending in the coming period? Thank you.

Liu Aihua:

Thank you for your questions. Since the third quarter, the central government has intensified efforts to support large-scale equipment upgrades and encourage consumer goods trade-ins. Local authorities have successively introduced implementation measures. As these policies gradually take effect, we are seeing a continued expansion in sales volume, maintaining an overall trajectory of recovery. From January to August, total retail sales of consumer goods increased by 3.4% year on year, essentially unchanged from the January to July period. The consumer market exhibited the following characteristics:

First, consumption of services maintained rapid growth, and the growth rate of catering revenue picked up. From January to August, retail sales of services grew by 6.9% year on year, 3.9 percentage points higher than the retail sales of goods during the same period. All categories of retail services achieved positive growth, with retail sales of transportation services, communication and information services, as well as financial and insurance services reaching or approaching double-digit growth. In particular, summer travel was active with robust demand for cultural tourism, reflecting the development potential of service consumption. Data from China State Railway Group shows that railways nationwide transported 887 million passengers in July and August, up 6.7% year on year, setting a new record for the summer travel period. Driven by increased travel and other factors, catering revenue rose 3.3% in August, a 0.3 percentage point increase from the previous month.

Second, new types of consumption remained relatively active. With the improvement of residents' living standards and changes in consumer attitudes, digital, green and health consumption have increasingly become new trends and hot spots, with some upgraded products showing positive growth. In August, the retail sales of communication equipment by enterprises above designated size increased by 14.8% year on year, 2.1 percentage points higher than in July. Sales of high energy-efficiency appliances and smart home appliances grew rapidly.

Third, online consumption grew rapidly, with some brick-and-mortar businesses and new models showing strong performance. New consumption models and business formats, such as livestream shopping, short video sales, and instant retail, have developed quickly, driving the continuous expansion of online consumption. From January to August, online retail sales of physical goods increased by 8.1% year on year, outpacing total retail sales of consumer goods by 4.7 percentage points, accounting for 25.6% of the total retail sales, the same as observed from January to July.

Fourth, policies aimed at stimulating consumption continued to show effectiveness. Currently, policies supporting consumer goods trade-ins are driving recovery of certain categories of bulk consumption. Data from the Ministry of Commerce shows that as of Aug. 31, more than 800,000 applications for automobile scrapping and renewal subsidies were received. In August, retail sales of household appliances and audio-visual equipment by units above the designated threshold ceased to decline and started to grow, indicating that policies continued to take effect.

At the same time, we should recognize that the sustained recovery of consumption faces certain constraints, and residents' confidence and willingness to consume still need strengthening. The central government has repeatedly emphasized the importance of boosting domestic demand, with a particular focus on promoting consumption. Relevant policies are being intensified, and more localities are actively implementing consumer goods trade-in programs. Through a series of policies aimed at expanding domestic demand and boosting consumption, we are seeing continuous improvements in the quality and level of goods and services. Consumption policies are being refined, and new types of consumption and service consumption are growing faster. These factors are conducive to rapidly unleashing consumer demand potential, further consolidating the foundation for consumption recovery. Thank you.

Yicai:

We have noted that the manufacturing Purchasing Managers' Index (PMI) registered 49.1% in August. How do you view this figure, and what is the expected trend in the coming period? Thank you.

Liu Aihua:

In August, the manufacturing PMI fell slightly due to seasonal factors, while the non-manufacturing industry, particularly the service sector business activity index, accelerated mildly. The overall level of economic prosperity remained stable. Affected by high temperatures, heavy rainfall and off-season production in some industries, the manufacturing PMI was 49.1%, down 0.3 percentage point from the previous month. Meanwhile, driven by summer travel consumption, the services business activity index stood at 50.2%, up 0.2 percentage point. The composite PMI output index posted 50.1%, continuing to stay within the expansion zone.

In the manufacturing sector, high-tech and equipment manufacturing returned to expansion, with PMI readings of 51.7% and 51.2%, respectively, up 2.3 and 1.7 percentage points, respectively, from the previous month. By industry, the production and new order indices for food, beverages and refined tea, railway, ship and aerospace equipment, and electrical machinery all exceeded 54%. Energy-intensive industries registered 46.4%, down 2.2 percentage points from the previous month, primarily causing the manufacturing PMI decline. Manufacturing enterprises' production expectations remained expansionary, with the business activity expectation index at 52% in August, indicating that most manufacturing enterprises were relatively optimistic about recent market developments. Structural changes in the manufacturing PMI show that the transformation and upgrading of the manufacturing sector are accelerating, continually injecting new momentum into economic development.

Summer consumption played a significant role in driving growth in the service sector. The business activity indices for railway transportation, air transportation, postal services, telecommunications, radio and television, satellite transmission services, and culture, sports and entertainment industries all remained above 55%, indicating a high level of prosperity. Regarding market expectations, the business activity expectation index for the service sector stood at 55.4%, maintaining a relatively high prosperity level. Among these, the business expectation indices for postal services, telecommunications, radio and television, satellite transmission services, and monetary and financial services all posted above 60%, reflecting a highly prosperous outlook. Overall, businesses remain optimistic about the development of these related industries.

Looking ahead, as various policies and measures continue to take effect and the "golden September and silver October" peak production season arrives, we anticipate a gradual recovery in both the overall PMI and the service sector's business activity index. Thank you.

Securities Times:

The Statistics Law will strengthen the statistics-based oversight, ratchet up legal liabilities for illegal acts, and strive to solve prominent problems such as statistical fraud. What are the implications?

Liu Aihua:

Thank you for your interest in the statistical work. On Sept. 13, the 11th session of the 14th NPC Standing Committee approved the Decision of the Standing Committee of the National People's Congress on Revising the Statistics Law of People's Republic of China, with the decision going into effect as of the date of promulgation. This marks the third revision of the Statistics Law since its promulgation in 1983, following revisions in 1996 and 2009. This latest revision represents another important milestone in advancing China’s statistical endeavors and legal framework.

In terms of this revision of the Statistics Law, we have followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles from the Party's 20th National Congress and the third plenary session of the 20th Party Central Committee, and thoroughly implemented guiding principles of General Secretary Xi Jinping's important speeches and instructions on statistical work as well as the decisions and plans of the Party Central Committee on the reform of statistics. We have maintained the institutional framework of the current Statistics Law and amended relevant systems focusing on strengthening the Party's leadership, giving full play to the role of statistics-based oversight, solving prominent problems such as statistical fraud, and improving the scientific and modern level of statistics. These mainly include the following four aspects:

First, the revision has adhered to the Party's leadership over statistical work. Since the 18th CPC National Congress, the Party Central Committee with Comrade Xi Jinping at its core has attached great importance to statistical work, taken into account the overall development of the Party and state, and made a series of major arrangements and requirements about statistical work. The revision of the Statistics Law this time has transformed major decisions and plans of the Party Central Committee into legal systems through proper legal procedures and has written "statistical work upholds the CPC leadership" into the Statistics Law, ensuring that statistical work always moves forward in the right direction under the Party's strong leadership.

Second, the revision has further strengthened statistics-based oversight. In order to demonstrate the emphasis of the Party Central Committee on strengthening statistics-based oversight, "strengthening statistics-based oversight" has been written in as the legislative purpose and the provisions on statistics-based oversight have been refined. The implementation of major national economic and social policies and measures by all regions and departments, as well as their performance of statutory statistical duties, have been included in the content of statistics-based oversight. The statutory connotation of statistics-based oversight and its functions has been further clarified, providing a legal basis for statistics-based oversight to play a more effective role within the Party and state oversight system.

Third, the revision has further strengthened measures to prevent and punish statistical fraud. First, it has added regulations and relevant legal liabilities, so that relevant persons in charge shall not explicitly state or imply that lower-level units and their personnel or the subjects of statistical surveys shall submit false statistical data. Second, the revision mandates that the system of accountability for preventing and controlling statistical fraud shall be established and improved. Local governments at all levels and all relevant departments have been required to include the prevention and punishment of statistical fraud and operations involving falsification in the scope of administration and performance of duties in accordance with the law and the assessment and management of the statistical work of leading officials shall be strengthened. Third, it stipulates that China shall implement a unified national economy measurement system and the NBS shall organize and implement the measurement of GPR in a unified manner. Fourth, the revision imposes legal liability on officials who neglect serious inaccuracies in statistical data, and includes catch-all provisions. These revisions have transformed the effective practices of the Party Central Committee's decisions and arrangements as well as practices into legal provisions, which can effectively strengthen leading officials' sense of responsibility and enable them to take proactive steps to prevent and control statistical fraud.

Fourth, the revision has improved the scientific and modern level of statistical work. To align with the requirements of the new development philosophy, it stipulates that in accordance with the new situation of economic and social development, scientific and rational statistical standards and the statistical indicator system shall be improved, and new forms of economy and new sectors shall be included in the statistical surveys. In order to give play to the driving role of information technology in the modernization of statistics, it stipulates that the state shall promote the in-depth integration of modern information technology and statistical work. In order to obtain more authentic and accurate source data, it stipulates that full use should be made of social big data, and the digitalization and standardization of statistical ledgers shall be advanced. These regulations have effectively enhanced the production capacity, data quality and service level of China's government statistics, providing a solid statistical guarantee for Chinese modernization.

To conclude, the amendments to the Statistics Law hold profound significance for refining statistical systems, strengthening statistics-based oversight, preventing and controlling statistical fraud, ensuring authenticity and credibility of statistical data, and better serving Chinese modernization. Thank you.

Xing Huina:

One last question, please.

Economic Daily:

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

Liu Aihua:

According to the economic performance over the past eight months, despite facing complex and volatile situations at home and abroad, China's economy has overall performed stably and high-quality development has continued to advance under the influence of factors such as the effective macro policies, accelerated development of new growth drivers, and the sustained growth of external demand. From January to August, the growth rates of industry, service industry, investment and consumption remained relatively stable, while the growth rate of exports has accelerated. The general principle of pursuing stable economic development has remained unchanged. Looking forward, these positive factors supporting steady and healthy economic development will continue to exist and new favorable conditions will also come into play. This year, the development trend of ensuring stability while making progress is expected to continue. Specifically, there are three supporting factors:

First, new growth drivers are rapidly emerging. China is at a crucial stage of transformation and upgrading. The leading and driving role of innovation has continued to be strengthened. The accelerated cultivation of new quality productive forces and strong potential and vitality of new forms of business and new models have gradually become new economic growth drivers. For instance, from January to August, the value added of high-tech manufacturing industry rose 8.9% year on year. The production of new energy vehicles and service robots grew by 31.3% and 25.4%, respectively. New forms and models of consumer spending such as instant retail have developed rapidly, driving the online retail sales of physical goods to maintain relatively fast growth. As emerging sectors continue to unlock their potential and foster new strengths, economic development prospects will be further extended and expanded.

Second, domestic demand is poised for sustained growth. Investment has been expanding steadily this year, with manufacturing investment growing significantly faster than the total investment. The investment in high-tech fields has demonstrated a sound momentum of growth. From January to August, investment in high-tech manufacturing and high-tech services industries increased by 9.6% and 11.7%, respectively. At the same time, driven by the policy for large-scale equipment renewal, investment in purchases of equipment and instruments contributed over 60% to the total investment growth, for the growth of investment, providing important support for investment growth. Since the beginning of the third quarter, the central government has provided stronger support for large-scale equipment renewal and has expedited the process for the issuance and use of special treasury bonds and local government special bonds. With the gradual allocation of these funds to specific projects and the formation of physical workload, as well as the weakening of the impact of high temperatures on project construction, the volume of investment will continue to expand. Consumption has continued to recover since the beginning of this year. Development- oriented and leisure-based consumption, such as services and upgraded products, have grown quickly. Holiday travel has played a significant role in driving consumption and cultural and tourism consumption has been active. Meanwhile, the effects of trading-in consumer goods have continued to manifest. Looking forward, with the arrival of the Mid-Autumn Festival and National Day holidays, residents' consumption demand for travel is expected to be further stimulated, coupled with the further effectiveness of the trade-in policy of consumer goods, and the continuous implementation of policies to stabilize employment and promote income increases, consumption is poised to expand and upgrade.

Third, macro policies will continue to be strengthened. Since the beginning of this year, all regions and departments have been fully implementing the decisions and plans of the Party Central Committee and the State Council and taken effective measures to implement macro policies, providing strong support for promoting stable economic growth. The Political Bureau of the CPC Central Committee has made systematic arrangements for the follow-up economic work and all regions and departments are currently working harder to advance and implement these. For example, many regions recently introduced policies for expanding domestic demand and promoting consumption. These policies are expected to further optimize the consumption environment, create new consumption scenarios, and unleash the full potential of policies, thereby fostering synergy for advancing economic development, and promoting development of the real economy. At the same time, a series of reform measures outlined at the third plenary session of the 20th Party Central Committee are gradually being implemented, which is conducive to boosting confidence, building consensus and stimulating impetus for development. 

In general, despite a complex and severe external environment and persistent challenges of inadequate domestic demand, China's economy has maintained overall stability. Factors of production underpinning high-quality development have continued to accumulate and increase, providing strong support for us to deal with all kinds of risks and challenges. Economic performance is expected to sustain the development trend of ensuring progress while maintaining stability. Thank you.

Xing Huina:

That concludes our press conference today. Thank you to Ms. Liu and all our media friends for your participation. Goodbye.

Translated and edited by Yan Bin, Wang Qian, Zhang Lulu, Zhang Junmian, Yang Chuanli, Wang Wei, Gong Yingchun, Yuan Fang, Li Xiao, Ma Yujia, Zhang Tingting, Liu Sitong, Xu Kailin, Li Huiru, Zhang Rui, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Pei Jinjia, minister of the Ministry of Veteran Affairs (MVA)

Mr. Ma Feixiong, vice minister of the MVA

Mr. Wang Zhongcheng, director general of the Department of Support and Preferential Treatment of the MVA

Mr. Gao Haibin, deputy director general of the Department of Ideology and Rights Protection of the MVA

Chairperson:

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

Date:

Sept. 13, 2024

Xing Huina:

Ladies and gentlemen, good afternoon! Welcome to this press conference hosted by the State Council Information Office (SCIO). Today's event is part of the "Promoting High-Quality Development" series. We have invited Mr. Pei Jinjia, minister of the Ministry of Veteran Affairs (MVA), to brief you on relevant developments and to answer your questions. Also present today are Mr. Ma Feixiong, vice minister of the MVA; Mr. Wang Zhongcheng, director general of the Department of Support and Preferential Treatment of the MVA; and Mr. Gao Haibin, deputy director general of the Department of Ideology and Rights Protection of the MVA.

Now, I'll give the floor to Mr. Pei for his briefing.

Pei Jinjia:

Thank you, Ms. Xing. Ladies and gentlemen, friends from the media, hello everyone! I am delighted to meet you all. On behalf of the Ministry of Veterans Affairs, I would like to express my heartfelt thanks for your continued attention and support for veterans' affairs.

General Secretary Xi Jinping highly values the work related to veterans' affairs, making a series of important discourses. On the eve of this year's national conference on work related to veterans' affairs, the general secretary issued important instructions, emphasizing that veterans are a precious asset to the Party and the nation, and an important force in advancing Chinese modernization. The work related to veterans' affairs is crucial to reform, development and stability, as well as the goals of building a strong military. We have earnestly studied and implemented General Secretary Xi Jinping's important discourses, have thoroughly implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC) and the second and third plenary sessions of the 20th CPC Central Committee. Our focus is on contributing to economic and social development and supporting national defense and military development. Our aim is to make military service a profession that is respected by society and ensure that veterans are honored by all. We continue to promote reform and innovation, driving high-quality development in veterans' affairs.

First, we have strengthened ideological and political leadership and guidance. Adhering to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we have educated and led veterans to firmly support the establishment of Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole, as well as the establishment of the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We have also upheld Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and upheld the Central Committee's authority and its centralized, unified leadership. We have carried out national commendations for model veterans and other exemplary figures, along with activities such as "Veterans Always Follow the Party," encouraging veterans to remain true to their revolutionary military nature, strengthen their convictions, exhibit patriotic dedication, and strive for more achievements. We have solemnly welcomed home and laid to rest the remains of the martyrs of the Chinese People's Volunteers from South Korea, and have strengthened the construction, management and protection of memorial facilities for martyrs both domestically and abroad. This has fostered admiration for heroism, promoted the spirit of the martyrs and cultivated a sense of patriotism and national pride among the public.

Second, we have deepened the reforms of institutions and mechanisms. We have advanced the standardization and normalization of the service guarantee system and launched pilot projects for the new profession of veterans' affairs specialists. Synergy mechanisms, such as departmental consultations and the "dual list" system of mutual support between the military and local governments, have been improved to continuously shape a work pattern of military-local coordination, inter-departmental cooperation, top-down linkage, and joint efforts. We have deepened policy and system research, pushed forward the formulation of a set of regulations on the settlement of veterans, and revised the regulations on pensions and preferential treatment for servicemen, as well as the regulations on commending martyrs, improving various laws and policies. These efforts have comprehensively strengthened and advanced the organizational management system, operational work system, and policy and institutional frameworks.

Third, we have vigorously served the goal of building a strong country with a strong military. We have aligned ourselves with major national strategies, introduced measures to encourage and support veterans, boosted the brand of volunteer services, and guided veterans to actively participate in tasks such as rural revitalization, ecological protection, border stabilization and development, and emergency rescue and disaster relief. Keeping pace with national defense and military reforms, we have actively supported the armed forces' combat readiness, optimized the emergency and war response mechanisms for promoting mutual support between the military and civilians, and strengthened frontline support capacities, including special care hospitals, halls of honor, and military supply stations. We have facilitated the smooth transition of veterans and military personnel with injuries, illnesses, or disabilities, continuously carried out activities to promote mutual support between the military and civilians, and helped alleviate concerns for military officers, personnel, and their families.

Fourth, we have focused on optimizing service guarantees. Emphasizing fairness and justice, we have adopted various methods such as exams, assessments, and direct settlements to properly place veterans. We have innovated and optimized education and training, broaden employment channels, and improved entrepreneurial support policies such as tax and financial incentives, striving to build a broad stage for veterans to use their talents and to assist in the transformation of military human resources. We have strengthened the construction of service centers (stations), focusing on the urgent needs of veterans and striving to clear the "last mile" in service delivery. We continue to raise the standards for pensions and subsidies, enrich preferential treatment scenarios, and promote new models of smart elderly care as well as the integration of medical and elderly care to provide better guarantees and higher-quality services. We have improved mechanisms to assist those in difficulty, launched the "Warmth for Veterans" initiative, and strived to do more meaningful work for veterans, like providing timely help when it is most needed, ensuring that the benefits of development are shared more equitably.

Ladies and gentlemen, friends from the media, our veterans have made significant contributions to national defense and military development. Even after retiring, they remain dedicated, carrying forward their mission as they take on new roles and pursuing their dreams. We will always use Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to cultivate unity and bolster morale. We will also fully implement the guiding principles of the 20th CPC Central Committee's third plenary session, further deepening reforms comprehensively to advance Chinese modernization. We will take on new responsibilities and demonstrate greater initiative in supporting a strong nation and military, enhancing service guarantees, and strengthening education and management. We aim to lead our veterans to actively engage in modernization efforts, creating new prospects for the high-quality development of veterans' affairs.

As the Mid-Autumn Festival approaches, on behalf of the MVA, I sincerely wish all veterans and their families happiness, peace, good health, and success in their endeavors. I also wish our media friends a joyful Mid-Autumn Festival. Thank you all.

Xing Huina:

You may now raise your hands to ask questions. Please state your news organization before asking.

People's Daily:

The third plenary session of the 20th CPC Central Committee has outlined plans for further deepening reform comprehensively. How will the MVA implement the guiding principles of this meeting and focus on deepening reform? Thank you.

Pei Jinjia:

Thank you for your important question. During this period, we have been carefully considering how to implement the guiding principles of the third plenary session. The theme of the session is to further deepen reform comprehensively and promote Chinese modernization. The MVA was born from reform, and veterans' affairs have progressed as a result of reform. In further deepening reform, the veterans affairs system must deepen its understanding, strengthen its implementation, and enhance its execution. We will make comprehensive and systematic plans to deepen reform in accordance with the goals set by the third plenary session of the 20th CPC Central Committee, adhering to problem-oriented and goal-oriented approaches. This involves three main aspects:

First, we will deepen reforms by addressing major issues of concern to the CPC Central Committee. Veterans are crucial in advancing Chinese modernization. We'll enhance policies and create platforms to encourage veterans' active participation in economic development, rural revitalization, border stability and growth, and volunteer services, fostering their engagement in socio-economic progress. We'll also focus on the military strengthening efforts prioritized by the CPC Central Committee, supporting the military's combat readiness. In particular, we will further improve veteran resettlement measures and address practical issues such as the placement of military families and their children's education. We'll bolster the development of military supply stations, veteran care hospitals, and honor homes to further support the military's combat readiness.

Second, we will deepen reforms by focusing on deep-seated issues that constrain development. We acknowledge existing challenges and will focus on strengthening and reforming key areas to promote problem-solving. First, we'll improve work implementation mechanisms by bolstering service centers (stations), easing grassroots burdens, promoting certificate reduction and service optimization, and ensuring that regulations and policies are effectively implemented to overcome the "last mile" of service support. Second, we'll improve the handling of petitions by refining channels for veterans to express concerns, coordinate interests, and protect rights. We'll implement quality checks for petition responses and address common issues altogether through effectively solving one similar case. It is necessary to improve the working mechanism of mutual support between civilian sectors and the military, deepen the publicity of their mutual support, improve the system of mutual assistance between the military and local communities, and foster an atmosphere of mutual appreciation between the military and civilians.

Third, we need to focus on deepening reforms to address the pressing issues faced by veterans. They encounter numerous challenges, with employment being their primary concern, as it is a fundamental aspect of well-being. Veterans have made significant contributions and sacrifices for national defense and military development. After leaving service, veterans face a crucial life transition in securing employment. We will further explore ways to enhance veterans' skills and capabilities, improve job information platforms, expand employment opportunities, and refine employment policies to promote high-quality, sufficient employment for veterans. The second major concern is the support mechanism. Some veterans face significant challenges like serious illnesses or family crises, encountering substantial difficulties that require urgent assistance. We will enhance the financial support system and further encourage societal participation in building a support network to effectively address veterans' urgent, difficult, and pressing issues, offering timely aid. The third aspect is to foster a culture of respect, improve the effectiveness of preferential treatment certificates, and deepen the services of "priority assistance, treatment, and benefits" for veterans to further increase their sense of happiness, fulfillment and honor.

We will develop annual reform plans and ensure that they are effectively implemented. At the same time, we'll encourage local-level reforms, innovations, and careful exploration to generate valuable experiences. We will promptly synthesize these insights and promote them nationwide, driving high-quality development in veterans' affairs through reform and innovation.

That's all from me. Thank you.

China Veterans:

Consolidating and developing unity between the military and the government, as well as between the military and civilians, is a strategic arrangement made by the 20th CPC National Congress. What measures has the MVA taken to leverage the unique advantages of civilian-military mutual support in helping build a strong military? Thank you.

Pei Jinjia:

I will invite Mr. Wang to answer this question.

Wang Zhongcheng:

Thank you to our journalist friend. Unity between the military, government, and civilians is key to success. The MVA places great importance on leveraging the unique advantages of civilian-military mutual support to strengthen the military and serve combat preparedness efforts.

We strengthen public awareness of "double support," which means local governments and civilians should support the army and give preferential treatment to the families of service members, while soldiers should support the government and care for the people. We organize the army and public to earnestly study and implement General Secretary Xi Jinping's important discourses on the double support work, strengthen political guidance, and foster a stronger sense of mission. Public awareness campaigns and national defense education are thoroughly implemented to cultivate love for family and country among troops and civilians. We  vigorously cultivate and promote exemplary models of the double support, enrich related culture, promote related themes, and tell stories of the new era to create a strong social atmosphere of harmony between the people and the military.

We make every effort to address the worries of officers and soldiers. Together with relevant military-civilian departments, we have improved regulations, policies and institutional mechanisms for protecting the legal rights and interests of service personnel and their families. Addressing the concerns of officers and soldiers has quickly become a key criterion in building model cities of the double support. We have diligently implemented the "double list" system for providing lists of practical assistance, organized and carried out special campaigns for protecting the legal rights and interests of service personnel and their families, enriched and expanded social support for the military, and taken multiple measures to solve the pressing difficulties and problems that concern officers and soldiers most.

We focus on serving the armed forces and supporting combat readiness. We have improved the response mechanism for the double support work, and supported military modernization, training and combat readiness. We have advanced campaigns that support the military and the front line. We have clearly defined topics for front line support, developed plans, strengthened capability building, and promoted relevant preparations.

Looking ahead, we will earnestly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. We will improve the mechanisms for the double support work, make thorough preparations to support the military and the front lines, and better assist in strengthening the armed forces and serving their combat readiness efforts.

N Videos at Southern Metropolis Daily:

The management and protection of memorial facilities for martyrs has always attracted much attention. Could you please provide some specific information in this regard? Additionally, what arrangements have been made for the search, identification, and protection of martyrs' remains, as well as the search for their relatives? What progress has been made so far? Thank you.

Pei Jinjia:

Let's invite Mr. Ma to answer your questions.

Ma Feixiong:

Thank you for your questions. Your concerns reflect the common sentiment of the public. We feel a great sense of responsibility in this regard.

Memorial facilities for martyrs are important repositories of revolutionary traditions for the Party and the country. Their proper protection, management and utilization are crucial for inheriting the revolutionary spirit and ensuring the eternal stability of our socialist country. The MVA has always worked diligently to protect these revolutionary sites and strived to improve their management and protection.

First, we have continued to promote construction and improvement. For martyr memorial facilities at or above the municipal level, we have focused on implementing quality upgrades and renovations. For martyr memorial facilities at or below the county level, we have conducted concentrated repair and protection efforts. For scattered martyrs' memorial facilities, we have focused on relocation, management and protection. So far, we have repaired more than 250,000 martyr tombs and other memorial facilities and relocated more than 77,000 scattered martyr tombs to martyr cemeteries, improving the overall standard of martyr memorial facilities.

Second, we have strengthened protection and management. We have implemented graded protection, consolidated work responsibilities, strictly regulated management, and promoted digital development. Currently, about 150,000 martyr memorial facilities and more than 730,000 martyr tombs across the country have been recorded in the information system. Together with relevant military-civilian departments, we established a joint coordination mechanism for the protection of heroes and martyrs and carried out special actions for management and protection.

Third, we have fully leveraged the role of education. We have organized memorial ceremonies, collected artifacts, collated historical materials, held boutique exhibitions, and cultivated teams of interpreters to promote education on the revolutionary spirit. We vividly spread the "red" culture and guide the public, especially young people, to cultivate their love for the Party, the country, and socialism. We strive to transform reverence for martyrs into practical actions of patriotic dedication and professional commitment, using the heroic spirit to inspire and unite, ensuring the revolutionary spirit passes from generation to generation.

In addition, we also promoted the completion of renovation and protection projects for 18 martyr memorial facilities in 12 countries, including the Democratic People's Republic of Korea and Laos, to further carry forward traditional friendships, serve the overall diplomatic situation of the Party and the country, and demonstrate the image of a responsible major country.

The search for and excavation of martyrs' remains, along with their identification, protection, and effort to find martyrs' relatives, honors a small number of heroes but educates hundreds of millions in subsequent generations. This work responds to the public's emotions and embodies national responsibility. Although this work is very difficult to carry out, we must resolutely pursue it no matter how challenging, and we must do our best. Based on this understanding, we have established the Center of Martyr Memorial Facility Protection and the National Martyrs' Remains DNA Identification Lab, set up a national martyr remains search team, issued relevant policy documents to carry out this work, organized the collection and protection of Red Army martyrs' remains from the Xiangjiang Campaign, and launched a public service platform for finding martyrs' relatives. We have so far successfully found the families of more than 6,000 martyrs.

Going forward, we will further standardize this work by revising regulations on honoring martyrs, strengthening the application of information technology, and carrying out relevant work on a regular basis. We will focus on sharing stories about the search for relatives, comforting martyrs' families, promoting the spirit of heroes and martyrs, and enhancing the country's image. Our aim is to further create a positive atmosphere throughout society that honors heroes and cares for martyrs' families. Thank you!

Hong Kong Bauhinia Magazine:

The third plenary session of the 20th CPC Central Committee proposed improving the system of employment support for ex-service members and the system for lifelong vocational skills training. What progress has been made in promoting ex-service members employment in recent years? What new measures will be introduced to further enhance their competitiveness and help them achieve high-quality employment? Thank you.

Pei Jinjia:

Thank you for your question. Ex-service members' employment is a fundamental issue of people's wellbeing, and is also a matter of great concern to ex-service members. We have always regarded the issue of ex-service members' employment as a priority.

First, we focus on elevating their educational qualifications and vocational skills, which means improving their employment capacity and competence. Last year, we supported 195,000 ex-service members who sought employment on their own to return to school, going on to higher education or pursuing postgraduate studies. Of these ex-service members, 131,000 benefited from tuition reduction policies. At the same time, based on market demand and personal preferences, we organized vocational skills training. Last year, 111,000 ex-service members participated in various vocational training programs.

Second, we have established employment information platforms. After improving their capacities, it is crucial for ex-service members to access employment information. We have primarily focused on two areas: First, supporting local veterans affairs departments in building employment information systems to publish job information in a timely manner. Second, supporting different localities in holding job fairs. Since last year, 11,000 job fairs have been held nationwide and 390,000 veterans have reached employment agreements.

Third, we have expanded employment channels. Veterans gain valuable experience during their time in the military, and many have high educational qualifications. Last year, over 70% of new recruits were college graduates. After military service, they develop many outstanding qualities. How do we broaden their employment channels? On one hand, veterans are specifically recruited for positions such as firefighters and civilian personnel in the military. In addition, special training programs have been developed to help veterans qualify for work in village Party committees and village committees, or become village Party secretaries or teachers. On the other hand, we have signed employment cooperation agreements with more than 20,000 companies across the country, and added 264,000 new job opportunities for veterans this year, significantly expanding their employment channels.

Fourth, we have enhanced employment policies. In recent years, we have introduced a series of policies to support veterans' employment, covering areas such as educational advancement, vocational skills training and entrepreneurship. For example, companies that hire veterans seeking employment on their own can enjoy tax incentives, and veterans seeking employment on their own can also receive certain tax breaks for their businesses. Through these efforts, we have gradually formed a policy system to support veterans' employment.

The third plenary session of the 20th CPC Central Committee made overall arrangements for implementing an employment-first policy and improving the system of employment support for key groups, including ex-service members. Going forward, we will fully implement the decisions and arrangements of the CPC Central Committee, focusing on several key areas:

First, we will continue to improve veterans' capacity and competence. We will support their pursuit of higher education and implement preferential policies during their studies. At the same time, we will further strengthen vocational skills training, particularly by making it more targeted and effective. Based on industrial development needs and personal preferences, we will expand training into new fields, such as drone operation, ensuring that the courses are designed to meet their needs and improve their competitiveness in the job market.

Second, we will further strengthen the development of employment information platforms. We will establish a national veterans employment information platform, connecting it with local governments and relevant departments like the Ministry of Human Resources and Social Security as well as expanding the amount of available job information. This will allow veterans to access employment information on a larger platform and connect with more employment opportunities. Additionally, we will continue to enhance offline recruitment services with face-to-face recruitment events offering veterans and employers a chance for mutual selection, which remains one of the most important channels for veterans' employment, and we will increase our efforts in this area.

Third, we will continue to expand employment channels. We will build on the experiences gained from programs like "Veteran Teachers," "Veteran Village Party Secretaries" and the targeted recruitment of firefighters. At the same time, we will further explore new industries and sectors for employment cooperation, particularly by signing agreements with large employers to create more job opportunities targeting veterans, further broadening their employment channels.

Fourth, we will further improve employment policies. As mentioned earlier, we have policies related to education, vocational skills training and preferential taxation. These policies will be further refined.

Here, I also want to call on more employers to consider hiring veterans. As I mentioned earlier, the proportion of veterans with college degrees has surpassed 70% and their time in the military has instilled many excellent qualities in them, such as a strong sense of discipline, teamwork and perseverance. We believe that veterans can play exemplary roles in all kinds of positions.

At the same time, I also hope that veterans can first address their employment needs and then gradually choose their careers based on their aspirations. As long as they maintain the essence of a soldier and carry forward the excellent qualities of military personnel, I am confident that they can excel and contribute in any field or industry. I also believe they can play a significant role in China's modernization efforts. Thank you.

Jinan Times App:

This year, the general offices of the CPC Central Committee and the State Council jointly released a set of guidelines on improving the country's voluntary service system, which emphasized the vigorous development of veteran volunteers. Could you please elaborate on the measures being taken to improve the volunteer service capabilities of veterans? What measures are in place to ensure their concerns are addressed? Thank you.

Pei Jinjia:

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

Gao Haibin:

Thank you for your question. Volunteer service is a crucial marker of social progress and civilization. Over the years, we have proactively developed the team of veteran volunteers, encouraging them to promote social progress through tangible actions. Our veterans are politically aware, disciplined and of high caliber. While excelling in their primary duties, they actively give back to society and engage in volunteer services. Millions of veteran volunteers are active in various fields such as revolutionary history education, grassroots governance, emergency rescue and environmental protection. Facing natural disasters such as earthquakes, mudslides and heavy rainfall, they bravely assume responsibilities without fear of difficulties. Recently, when the powerful Typhoon Yagi struck, veteran volunteers in Guangdong, Guangxi and Hainan remained on the front lines, safeguarding the lives and property of the people and helping to rebuild their homes, further enhancing the "Chinese Veteran Volunteer Services" brand.

Going forward, we will adhere to the directives of the Party Central Committee and focus on the following key areas:

First, we will concentrate on mobilization, leveraging the centers and stations for veterans at all levels to build robust volunteer service teams. We will lead the way to incorporate more veterans into these efforts, continuously expanding the volunteer service force. Second, we will focus on capacity building, conducting regular knowledge training and practical exercises in different levels and categories, organizing exchanges and discussions, showcasing projects, and strengthening the cultivation of professional backbone teams to acquire knowledge and skills, thereby enhancing levels of service. Third, we will focus on spiritual cultivation, guiding veterans to integrate the values of "the people's army" who are willing to sacrifice and contribute with the spirit of volunteerism, shaping and passing on the spirit of Chinese veteran volunteer services that embodies the military spirit, social contribution, courage, solidarity and honor. Fourth, we will focus on support and security, exploring the establishment of a management and security mechanism for veteran volunteer services, guiding social funds to participate and offer support, encouraging multiple channels to provide necessary insurance, subsidies, equipment and other material guarantees for volunteers. We will gradually establish an incentive mechanism primarily based on spiritual rewards, selecting typical models of Lei Feng-style volunteer services, and making volunteer services an important reference for related commendations and awards, continuously enhancing the sense of honor and pride among volunteers.

Veterans protect the country in uniform and contribute to their hometowns after leaving the military. Here, we earnestly request the support of all sectors of society to join us in promoting the vigorous development of veteran volunteer services, allowing the public to truly feel the presence of the remarkable veterans around them. Thank you.

The Poster News:

The preferential treatment card is a symbol of honor for veterans. Could you please elaborate on the current benefits that can be enjoyed with the card? What future considerations are there for enhancing the honor and sense of achievement for veterans through preferential treatment? Thank you.

Pei Jinjia:

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

Wang Zhongcheng:

Thank you for your question. The preferential treatment card is a symbol of honor for veterans and other recipients of preferential care, serving as a certificate for enjoying benefits, and it has garnered significant attention. Departments at all levels have attached great importance to the work of the preferential treatment card, focusing on enhancing efficiency and convenience, and have done a lot of work in this regard. Many enthusiastic enterprises and social organizations that support and care for veterans have actively responded to government calls, doing their best to provide benefits to cardholders.

Currently, the nationwide unified benefits cover a variety of aspects such as finance, telecommunications, express delivery, fuel, and air travel, and will continue to be expanded and standardized in the future. Local governments, based on their actual conditions, are actively enriching the scope of benefits and usage scenarios, widely mobilizing social forces to participate, and gradually extending benefits to areas such as culture and tourism, accommodation, shopping and health care. Various units, enterprises and social organizations that are enthusiastic about supporting and caring for veterans now exceed 100,000, and the atmosphere of respect and esteem is increasing. Of course, due to the uneven economic and social development across regions, there are differences in the scope and intensity of benefits. We hope people can understand these disparities.

Going forward, we will earnestly study and implement the guiding principles of the third plenary session of the 20th CPC National Congress and perform our duties. We will place equal emphasis on mental and physical benefits, actively address the concerns of those involved, further improve preferential treatment policies and institutional systems, and effectively safeguard legitimate rights and interests. Based on local conditions, we will make every effort according to our abilities, gradually enrich preferential treatments and application scenarios to make preferential treatment cards more useful, in order to increase veterans' senses of honor and gain. We will adhere to a holistic view and problem-oriented approach, and accelerate a supervision, governance and effective operation mechanism on preferential treatment work, ensuring high-quality and steady advancement of relevant work. Key tasks to be completed by the year's end include signing cooperation agreements on preferential treatment for military personnel with over 110 enterprises to expand the range of national unified preferential treatment programs; and introducing electronic preferential treatment cards to promote digital and information technology development. We believe that through the concerted efforts of all levels of government, departments, veterans and others, the preferential treatment work will be improved, and preferential treatment cards will meet more practical needs. Thank you.

CCTV:

Veteran resettlement is a key matter of concern for all military personnel when retiring. Could you elaborate on the measures taken in aligning military and civilian reforms, and streamlining the transfer and resettlement of veterans? And what further measures will the MVA take in the future? Thank you. 

Pei Jinjia:

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

Ma Feixiong:

Thank you for your question. This issue is of the utmost concern to both serving and former military personnel and their families. It is also a crucial task of the veteran affairs system that requires substantial efforts.

The transfer and resettlement of veterans is a crucial link between the military and local governments, and relates to overall reform, development and stability, the construction of a national defense army, and veterans' rights and interests. It is incumbent on local governments and relevant departments at all levels to receive and settle veterans, serve and provide security for them, conduct education and training for them, unleash their potential, and safeguard their rights and interests. Since the 20th CPC National Congress, we have implemented General Secretary Xi Jinping's important instructions on veteran affairs, focused on new trends of aligning policies in military-civilian reforms, promoted the introduction of regulations on veterans' settlement, and formulated a series of documents on settlement policies, so as to standardize the work. In response to the increased frequency of military retirements and changes in the scale and structure of veteran populations, we have established mechanisms for phased transfer and categorized resettlement. To better facilitate the transition from military talent into civilian talent, we have continuously improved the open, fair and transparent settlement approach, and innovated direct settlement to match veterans with suitable jobs. To respond to veterans' hopes for a better life, we have worked to tap into settlement potential, expand settlement channels, improve their treatment and security, and boost service measures, striving to increase veterans' sense of gain.

Going forward, we will resolutely implement the decisions and arrangements of the CPC Central Committee, focus on needs for deepening reforms and pursuing development, meet veterans' expectations, improve mechanisms and systems, and take concrete measures. We will concentrate on three aspects.

First, we will continue to optimize settlement policies. With the implementation of the regulations for the settlement of veterans as the driving force, we will further specify measures such as standardizing transfer procedures, optimizing settlement destinations, improving employment quality, and enhancing settlement guarantees. We will enhance legal framework for settlement so that veterans enjoy more policy benefits more quickly and comprehensively.

Second, we will continue to improve the incentive mechanism. We will vitalize veterans and resettlement resources, put more emphasis on personnel working in remote and challenging areas and on special posts, as well as role models and those who make contributions. We will improve various methods such as exams and evaluations, point-based job selection, two-way selection, and express resettlement channels. Through these measures and mechanisms, we will strive to enhance their overall capabilities and ensure that our most beloved people also become our most useful people. Veterans are always eager to make contributions, and we should have confidence in them.

Third, we will continue to improve the efficiency and quality of services. We will enhance services through the entire transition process, from military retirement to civilian employment. We will improve policy communication and training, and help veterans navigate identity and career transitions. We will improve settlement work processes, and optimize one-stop services, utilize information technology, and save veterans' time and unnecessary trips. At the same time, we will improve the follow-up system for settlement to ensure that benefits are fully delivered and veterans are more satisfied. Thank you.

Xing Huina:

Due to time constraints, we will take two final questions.

National Business Daily:

We understand that a system of veterans service centers and stations covering six levels from the state to the villages and communities has been established nationwide. What measures have been taken to enhance the effectiveness of these service centers and stations? What new plans and initiatives are in place for the service support system moving forward? Additionally, how do you ensure that services reach every veteran, especially those in remote areas and veterans facing difficulties? Thank you.

Gao Haibin:

Thank you for your questions. Service centers and stations for veterans at all levels are bridges to directly connect with veterans, platforms for providing specific services, and crucial fronts for implementing policies at the community level. In recent years, we've focused on enhancing their role by strengthening and optimizing the service and support system. We have improved policies and systems by issuing guiding documents, incorporating service center and station construction into the Veterans Support Law, guiding local governments to refine supporting measures, and promoting standardized operations. We've consolidated the foundation at the community level by adopting the Fengqiao model for promoting community-level governance in the new era, shifting the work priority to the community level, providing proactive services, strengthening community-level platforms, and publishing service lists. We have improved service capacity, achieving "four respects, five cares, and six must-visits" for new recruits, retirees returning home, and daily care. We have worked faster to advance career development for veterans' affairs personnel, strengthening regular training, facilitating exchanges and learning, and continuously improving staff capabilities in policy understanding, public engagement, and dispute resolution. Moving forward, we'll further identify priorities for deepening reform and take practical measures to better serve and support our vast veteran community.

First, we will consolidate the achievements of comprehensive service center coverage. In combination with institutional reform, we'll guide local governments to optimize service station construction and service window settings, coordinate resources from all parties, explore new service models, and encourage nongovernmental actors to participate in the supply of veteran services.

Second, we will extend the reach of service and support. Recognizing that many veterans live and work across different regions, we will explore the establishment of a coordination mechanism for cross-regional services and management. This will help us dynamically track where veterans are, what they're doing, and what they need, allowing timely follow-up on services and support. We'll encourage and support universities, enterprises, and business districts with the resources to voluntarily set up service stations, expanding our service scope and strengthening the service network.

Third, we'll implement "Internet Plus" services. We will promote the application of information technology, optimize service processes, vigorously advance one-stop services, promote a "single-visit" model for in-person requirements, and support mobile app-based services. This will allow veterans to access services with just a few taps on their smartphones, providing them with higher-quality, more convenient services.

Fourth, we will enhance service quality and efficiency. We'll focus on  pressing difficulties and problems that concern veterans most, maintaining regular contact, coordinating with civil affairs, human resources and social security departments to implement social assistance and employment support policies, and integrating resources to provide tangible, accessible services for veterans in remote areas through home visits, paired assistance, volunteer services and remote online consultations. In this way, we'll ensure veterans feel that services are readily available. Thank you.

Xing Huina:

One last question, please.

China News Service:

Inheriting revolutionary traditions and carrying forward the spirit of heroes and martyrs is of great significance in strengthening our original aspiration and mission, reinforcing patriotism, and fostering a Chinese ethos. What work has the MVA done in this regard in recent years? Thank you.

Pei Jinjia:

Thank you. This is an excellent question. General Secretary Xi Jinping has stated that a promising nation cannot go without heroes or pioneers. In recent years, the MVA has focused on the Party's and country's central work, promoting the deeds and spirit of heroes and martyrs. We've actively guided the public to honor martyrs' legacies, inherit the revolutionary traditions and gather momentum for advancing in the new era. We've mainly focused on the following tasks:

First, we have deeply honored our fallen heroes and martyrs. We've organized a series of activities focusing on celebrating the centenary of the CPC, the 75th anniversary of the founding of the People's Republic of China, and commemorating the 70th anniversary of the Chinese People's Volunteers (CPV) entering the Democratic People's Republic of Korea to fight in the War to Resist U.S. Aggression and Aid Korea, honoring our martyrs. At the same time, we have solemnly welcomed back the remains of CPV martyrs buried in South Korea, with a total of 369 remains returned over six consecutive years. We have also set up a national search team for the remains of martyrs and a national laboratory for DNA identification of martyrs' remains. Meanwhile, we have increased financial input for many consecutive years and raised the subsidies and benefits for the families of martyrs, which fully reflects the Party's and state's memory of and high respect for the martyrs. We have actively guided the people to be keenly aware of the hard-earned establishment of the CPC's political power, the People's Republic of China, and our current happy lives.

Second, we have organized initiatives to learn from heroes and martyrs. We have carried out activities such as "Centennial Heroes and Martyrs" and "Veterans Always Follow the Party: Education Events by Veterans." We've also launched distinctive and influential revolutionary literary and artworks. At the same time, we have guided all localities and units to organize themed party day and youth league day activities, as well as recitation activities themed "Inheriting Revolutionary Traditions." We have advocated the social value of paying tribute to heroes and martyrs and learning from them. We aim to guide people in emulating heroes' and martyrs' firm ideals and beliefs, selfless dedication, and strong sense of responsibility.

Third, we have carried forward revolutionary traditions. We have conducted publicity events such as "Paying Respect to Heroes and Martyrs at Qingming Festival" and activities in September for several consecutive years. Focusing on strengthening the education of young people, we have jointly issued opinions on making good use of revolutionary resources to enhance patriotic education. At the same time, we have organized ideological and political theory courses related to revolutionary heritage on campuses and carried out activities such as "red scarf guides" and "junior military academies." Through these efforts, we have guided people to never forget the sacrifice and dedication of the martyrs, draw strength from them, and take their job requirements as a starting point to work hard, maintain a strong will, and forge ahead in the great journey of advancing Chinese modernization. We have encouraged young people to establish lofty ideals, carry forward our revolutionary heritage, and write a vivid chapter of youth.

The Chinese nation is a nation of heroes, and the new era is an era that makes heroes. We will take the revision of the Regulations on Honoring Martyrs as an opportunity to further strengthen the study and publicity of heroes' and martyrs' deeds, improve the system and mechanism for honoring them, continue to carry out activities to pay tribute to heroes and martyrs and care for martyrs' families, and use their deeds and spirits to educate and guide people to strengthen their original aspiration and mission. This is an effort to create a social atmosphere in which people look up to heroes, learn from them, and strive to become pioneers. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to all the speakers and friends from the media. See you next time.

Translated and edited by Zhang Rui, Liu Qiang, Yan Xiaoqing, Zhou Jing, Yang Xi, Mi Xingang, Zhang Junmian, Liao Jiaxin, Wang Qian, Liu Jianing, Li Huiru, Xu Kailin, Huang Shan, Rochelle Beiersdorfer, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers: 

Mr. Li Li, commissioner of the National Medical Products Administration (NMPA)

Mr. Zhao Junning, deputy commissioner of the NMPA

Mr. Huang Guo, deputy commissioner of the NMPA

Mr. Lei Ping, deputy commissioner of the NMPA

Chairperson:

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

Date:

Sept. 13, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Li Li, commissioner of the National Medical Products Administration (NMPA), to provide a briefing and take your questions. Also present at today's press conference are the NMPA's deputy commissioners Mr. Zhao Junning, Mr. Huang Guo and Mr. Lei Ping.

Now, I'll give the floor to Mr. Li for his briefing.

Li Li:

Ladies and gentlemen, friends from the media, good morning! First, I'd like to extend my heartfelt thanks for your continued attention and support for the work in drug regulation.

Medicines are special commodities that cure diseases and save lives. Ensuring the safety and efficacy of drugs is critical to the health and well-being of the public as well as to economic and social development. General Secretary Xi Jinping has placed great emphasis on this, repeatedly underscoring the need to implement the highest standards, the strictest oversight, the most severe penalties and the most serious accountability. Following these four stringent principles, drug regulatory authorities have worked hard to balance safety with development, efficiency with fairness, and regulation with service. This approach has effectively ensured overall drug safety while driving high-quality development in the pharmaceutical industry. Now, I'd like to give a brief overview of the reforms and progress with drug regulation.

First, we have maintained strict oversight to ensure continuous compliance in drug production and management. Strong regulation fosters a strong industry. We have reinforced dynamic, life-cycle supervision of drugs, centering on three key areas: risk prevention, case investigation and capacity building. Through comprehensive efforts to safeguard and enhance drug safety, we have reinforced the foundation for drug safety in all respects. We have fully supported the national centralized procurement of drugs and medical devices, and ensured 100% coverage in both the inspection of selected manufacturers and the random testing of selected products, guaranteeing that price reductions do not lead to a drop in quality. The evaluation of consistency in quality and efficacy of generic drugs has also made steady progress, with these products now accounting for two-thirds of commonly used chemical drugs in clinical practice. From January to August of this year, 20,696 batches of drugs were inspected nationwide with a compliance rate of 99.43%, reflecting an overall stability in drug safety.

Second, we have deepened reform to support the development and market entry of innovative drugs and medical devices. High-quality development is the foundation for high-level safety. Ensuring public access to safe medicines and improving drug quality rely on the high-quality development of the pharmaceutical industry. To expedite the market entry of innovative drugs and medical devices, we have deepened reform of the review and approval process. This reform is characterized by early involvement, tailored policies for individual companies and a collaborative approach between research and review. Since the establishment of the NMPA in 2018, we have issued 357 technical review guidelines for drugs and 494 for medical devices — more than the total over previous decades — providing strong support for pharmaceutical R&D and technical evaluations. In recent years, China's pharmaceutical innovations have shown remarkable momentum, with new product launches picking up the pace. From January to August of this year, the NMPA approved 31 innovative drugs and 46 innovative medical devices, representing year-on-year increases of 19.23% and 12.16%, respectively. Innovative drugs concerning small-molecule targeted therapies, immunotherapies and cell therapies have made significant progress when entering global markets, with international recognition for Chinese innovative drugs increasing. High-end medical devices, including surgical robots, artificial hearts and carbon ion therapy systems, have also been launched, with some products achieving global leadership.

Third, we have upheld the rule of law by improving the legal and regulatory framework for drug management. The rule of law is the strongest defense for drug safety and ensures the best business environment for the pharmaceutical industry. We are fast-tracking improvements to the legal framework for drug regulation, thus adhering to law-based administration and oversight to ensure that all regulatory work operates within a sound legal structure. In recent years, we have formulated and revised the Drug Administration Law, the Vaccine Administration Law, the Regulations for the Supervision and Administration of Medical Devices and the Regulations on Supervision and Administration of Cosmetics, along with 14 core rules supporting these two laws and two regulations, thus creating an upgraded legal framework for drug regulation in the new era.

Fourth, we have upheld the fundamental task of capacity building and achieved concrete progress in modernizing medical product regulation. The supervision of medical products demands specialized technical knowledge, necessitating robust regulatory capabilities as a foundation. Highlighting the fundamental and strategic importance of modernizing medical products regulation, the NMPA has strived to strengthen its foundation, shore up weak links and remove development bottlenecks. The NMPA has highlighted the pivotal role of digitalization in advancing medical product regulation. It has developed and enhanced an information-based system for vaccine and drug traceability. Currently, every vaccine dose in China can be traced from origin to destination, ensuring accountability throughout the process. The NMPA has established a nationwide smart supervision platform for medical products. This platform has digitized the entire registration and application process, allowing all NMPA government services to be accessed online. In addition, the NMPA has earnestly implemented the country's action plan on scientific drug administration. It has made steady progress in establishing key national labs for scientific oversight of medical products and continued developing new tools, standards and measures for medical products supervision. The NMPA has strengthened efforts to train personnel for medical product regulatory authorities. It has adjusted plans to establish national inspection centers for vaccines and special medical products. Four subcenters for review and inspection have been set up in the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area. Finally, the NMPA has cultivated skilled professionals for medical product inspection at national and provincial levels, establishing a robust talent pool to support the modernization of medical product oversight.

Moving forward, the NMPA will further enhance its highly effective regulatory measures, maintain stringent safety standards and drive high-quality growth. These initiatives aim to protect and improve public health while advancing China's transition from a major pharmaceutical manufacturer to a global pharmaceutical powerhouse.

That concludes my remarks. My colleagues and I will now be happy to answer your questions. Thank you!

Xing Huina:

The floor is now open for questions. Please raise your hand and state the news outlet you represent before asking your questions.

CCTV:

The third plenary session of the 20th Central Committee of the Communist Party of China (CPC) has outlined reforms to boost industries like biomedicine and medical equipment. What specific plans does the NMPA have to implement these reform directives from the CPC Central Committee?

Li Li:

Thank you. I will answer your question. The resolution adopted at the third plenary session of the 20th CPC Central Committee outlines the need to improve the policy and governance systems for promoting the development of strategic industries such as biomedicine. It also stresses efforts to improve the institutions and mechanisms for bolstering key industrial chains such as medical equipment, as well as improve the mechanisms for supporting the development of innovative drugs and medical equipment. Following these guidelines, regulatory authorities for medical products are crafting a wide-ranging policy package to intensify reforms in medical product oversight. Our goals are to create a globally competitive ecosystem for pharmaceutical innovation, expedite innovative drug development, facilitate faster market access for new medical devices, and improve the overall quality and effectiveness of the pharmaceutical industry. These reform initiatives will be wide-ranging, tackling various stages of the process and addressing fundamental challenges. Let me briefly outline a few key areas:

First, the NMPA will bolster support for drug development and innovation. Focusing on key innovative drugs and medical devices that receive national support, the NMPA will enhance its services and guidance in the reviewing, approval, testing and verification process. It will provide guidance for enterprises, ensuring their R&D strategy is driven by clinical value and centered on patient needs. The NMPA will also enhance policy communication and technical counseling concerning product registration and application. It will incorporate the technical expertise of medical product regulatory authorities at both national and provincial levels, establish multi-layered and multifaceted communication methods, and utilize online platforms to host virtual lectures on the review and approval of drugs and medical devices. In addition, the NMPA will work to improve the accessibility of drugs and medical devices. It will implement the CPC Central Committee's decision and arrangements on deepening the coordinated development and governance of health care, medical insurance and pharmaceuticals and proactively support the introduction of innovative drugs and medical devices into hospitals and their inclusion in the medical insurance program.     

Second, the NMPA will improve the efficiency of product review and approval processes. The NMPA will speed up the review and approval of urgently needed clinical products, giving priority to certain eligible products. It will reduce the duration of various phases, including technical evaluation and registration-related verification and testing procedures, to expedite the overall approval timeline. It will also reduce the time needed for implied approval of clinical trials, and launch pilot programs in cities like Beijing and Shanghai to cut the review and approval period for innovative drugs' clinical trials from 60 working days to 30. Moreover, the NMPA will optimize the evaluation and approval process for supplementary applications of medical products. It will launch pilot programs in provinces with adequate resources. These programs will offer preliminary services for post-market registration verification and testing changes, aiming to substantially reduce the timeframe for supplementary applications.

Third, the NMPA will support opening up and cooperation in the pharmaceutical sector. The NMPA will enhance the adoption and application of internationally accepted regulatory standards in China. It will also support the initiation of global multi-center clinical trials and promote simultaneous R&D, application, review, and marketing of international medical products in China and worldwide. The NMPA will explore the divided contract production of biological products, and launch pilot programs in select regions for the production of innovative and urgently needed bioproducts. Moreover, the NMPA will bolster support for the import and export of pharmaceuticals, accelerate the administrative approval process of new drugs that have already been introduced to overseas markets, and encourage multinationals to relocate their production line for originator medicines and chemicals, bioproducts and high-end medical devices to China. Furthermore, the NMPA will refine policies concerning export and sales certification for pharmaceuticals. We will encourage more Chinese pharmaceutical companies to participate in global trade, enabling Chinese pharmaceuticals to benefit people all over the world. Thank you!

Jinan Daily APP:

As we know, traditional Chinese medicine (TCM) is an essential component of our country's conventional pharmacology and a treasure of the Chinese nation. What efforts have medical regulatory departments made to promote the preservation and innovative development of TCM? Thank you. 

Li Li:

Thank you for your question. TCM is the material foundation for the inheritance and innovative development of Chinese medicine. The NMPA is continuously improving its regulatory system to align with the unique characteristics of TCM. I will invite Mr. Zhao Junning to answer this question.

Zhao Junning:

I'll answer this question. The NMPA has diligently implemented the policy decisions and plans of the CPC Central Committee and the State Council. We've upheld fundamental principles while breaking new ground, taking multiple steps to promote the preservation and innovative development of TCM.

First, we're improving regulatory frameworks to guide the development of TCM. We are advancing revisions to the Regulations for Implementation of the Drug Administration Law and the Regulations on the Protection of Traditional Chinese Medicines. We have successively issued the Special Provisions for Traditional Chinese Medicines Registration, and the Special Provisions on the Administration of Traditional Chinese Medicine Standards, and are currently studying and formulating special provisions for the supervision and administration of TCM production. Previously, we have published Good Agricultural Practice (GAP) for Chinese Crude Drugs. All of this has actively strengthened our regulatory framework. We have also issued measures for further strengthening the scientific supervision of TCM to promote its inheritance and innovative development, introducing 35 measures in total. These measures follow TCM's unique regulatory characteristics, comprehensively promoting the preservation and innovative development of TCM across the entire chain.

Second, we're reforming the review and approval process to drive the development of TCM. Fully respecting the laws governing the development of Chinese medicine, we have innovatively established an evidence system for TCM registration and review that integrates TCM theories, human use experience, and clinical trials. This "three-in-one" evidence approach allows us to clearly articulate the logic behind TCM's safety, efficacy and quality control, supporting the market launch of new TCM drugs. In recent years, enthusiasm for the research and development of new TCM drugs has surged. The number of clinical trials, market authorization applications, and approvals for new TCM drugs have increased in tandem, all reaching double digits in each of the past two years. In 2023, 10 new TCM drugs were approved for market launch. This year, eight new drugs were launched, offering new options to meet clinical needs.

Third, we're establishing a regulatory system to safeguard the development of TCM. We adhere to a problem-oriented and risk management approach, continuously conducting annual special inspections of TCM production, for-cause inspections, random inspections, exploratory research, and quality monitoring of Chinese medicinal materials. We're deepening efforts to consolidate and improve drug safety, strengthening oversight of online drug sales, and optimizing the distribution and management of Chinese medicinal materials. We're exploring ways to standardize the processing of Chinese medicinal materials at their source and guide the orderly development of Chinese medicinal materials production, improving quality from the outset. The overall passing rate for TCM decoction pieces has risen from 88% in 2018 to around 97% currently. The overall pass rate for TCM drugs has remained stable at over 99% for a long time, effectively ensuring that TCM plays a vital role in clinical practice. The demonstration and promotion of GAP for Chinese crude drugs are showing initial results, effectively stimulating the internal drive of TCM production enterprises.

That's all for this question. Thank you!

Cnr.cn:

My question is about medications for rare diseases. We know that in recent years, the issue of medication for patients with rare diseases has attracted widespread attention from society, and I am also very concerned about it. What measures has the NMPA taken to encourage innovation, R&D and introduction of medicines for rare diseases? Thank you.

Huang Guo:

Thank you for your question. Medications for rare diseases indeed require the attention of the entire society. To meet the medication needs of patients with rare diseases, the NMPA has continuously introduced a series of incentive policies and promoted R&D and marketing of medicines for rare diseases through multiple channels. In summary, there are mainly three channels:

First, we're encouraging independent innovation. By promoting the R&D of new medicines in China, we aim to address the lack of available treatments for certain rare diseases. As you may know, we have established accelerated pathways for rare disease drug applications, including breakthrough therapy and medicine designations, conditional approvals, and priority review and approval procedures. Technically, we're enhancing the efficiency of R&D and market launch for rare disease drugs through several methods. These efforts include strengthening communication and guidance during the R&D process, allowing rolling submissions of data, reasonably determining alternative clinical endpoint s, and shortening review timelines. In other words, our goal is speed.

Second, we're expediting the import process to accelerate the entry of rare disease drugs being researched or produced overseas into the Chinese market. On the one hand, we're supporting multinational pharmaceutical companies in conducting simultaneous R&D, application, and market launch in China. To this end, we've implemented a series of measures, such as establishing an implied license system for clinical trials and accepting overseas clinical trial data. On the other hand, we're encouraging the import of rare disease medicines already marketed abroad. Currently, we're soliciting the public's opinions on the Announcement on Issues Pertaining to the Review and Approval of Overseas New Drugs Urgently Needed in Clinical Settings. For drugs that meet the requirements, we're implementing measures to encourage import applications, including waiving clinical trials, granting priority review and approval, shortening inspection timelines, and reducing the number of inspection batches and samples.

Third, a temporary import channel to try and ensure the availability of urgently needed clinical drugs under special circumstances. In 2022, we collaborated with the National Health Commission to develop and release the Work Plan for the Temporary Import of Urgently Needed Clinical Medications. Over the past two years, this channel has ensured the supply of urgently needed medications like clobazam and sapropterin hydrochloride for rare diseases.

In addition, we have strengthened collaboration with relevant local authorities and departments to create more channels for the clinical use of drugs for rare diseases. Our measures include supporting medical institutions within Hainan's Boao Lecheng International Medical Tourism Pilot Zone and the Guangdong-Hong Kong-Macao Greater Bay Area with importing urgently needed clinical medications, as well as supporting the establishment of a pilot zone in the Beijing Tianzhu Comprehensive Bonded Zone to ensure the supply of rare disease medications.

Altogether, these measures have led to a significant increase in both the number and speed of rare disease medications entering the market in recent years. Since 2018, over 130 rare disease drugs have been approved for the market, with as many as 37 being approved from January to August 2024.

In the next step, we will continue to make sustained efforts to build and develop these important channels for ensuring the availability of rare disease medications. We will closely collaborate with health, healthcare security and other departments to increase policy support and encourage companies to innovate and conduct research and development, so that more drugs for rare diseases can become available. Thank you!

Poster News:

I noticed that the resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) has outlined plans to refine the food and drug safety responsibility system. Which aspects primarily touch upon the drug safety responsibility system? What specific ideas and measures does the medical products administration have in this regard? Thank you.

Li Li:

Thank you for your questions. I will address them. The implementation of responsibilities is the basis and premise for ensuring drug safety. It can be said that the reforms outlined by the third plenary session of the 20th CPC Central Committee regarding the refinement of the drug safety responsibility system capture the key to ensuring drug safety. This system involves a wide range of elements. We need to coordinate the implementation of supervisory responsibilities of government departments, the primary responsibilities of companies and the jurisdictional responsibilities of local Party committees and local governments, so that responsibilities are shared and efforts are united.

First, the drug regulatory authorities must fulfill their supervisory responsibilities. The supervision of drugs is a duty assigned to the drug regulatory authorities by law, and we are duty-bound. Drug regulatory authorities at all levels must strictly implement supervisory powers and enhance collaboration across regions and levels. The responsibilities and the imperative of fulfilling them must be communicated to specific officials in specific positions. We need to continuously improve the risk consultation mechanism for drug safety and help establish a regular and sustainable approach to identifying, assessing and addressing drug risks within key links, such as clinical trial management, contract drug manufacturing and online drug sales, as well as with key products like vaccines and drugs and medical devices chosen through centralized procurement, and also in key areas, such as rural and suburban areas. In the meantime, we need to strengthen collaboration with public security, health and healthcare security departments to improve systems, such as coordination between administrative law enforcement and criminal justice and joint disciplinary actions, and intensify law enforcement efforts to effectively deter illegal and criminal activities in the field of drug safety.

Second, pharmaceutical companies must fulfill their primary responsibilities. Drug safety depends not only on supervision, but also on production. As those who conduct drug research and development, production, and distribution, pharmaceutical companies hold primary responsibility for drug safety, so they must assume legal obligations for ensuring drug quality and safety. Drug regulatory authorities need to enforce effective supervision, provide more legal and cautionary education to companies, and encourage them to establish robust quality management systems tailored to their specific circumstances and products, so that every participant in the drug production and distribution chain meets their responsibilities, and drug quality and safety are ensured as a result.

Third, local Party committees and local governments must fulfill their jurisdictional responsibilities. General Secretary Xi Jinping has said that "it is a bounden responsibility for Party committees and governments at all levels to ensure drug safety. " According to the requirement for Party committees and governments to share these responsibilities, all localities should make it clear that Party committees and governments take overall responsibility for drug safety within their jurisdictions, with their primary leaders serving as the chief individual responsible for drug safety. Drug regulatory authorities will improve the mechanism for admonition regarding drug safety responsibilities. Localities will be encouraged to integrate drug safety into their economic and social development plans, to regularly assess and analyze their local drug safety conditions, to strengthen technical support capabilities for drug review, inspection, testing, etc., and to support supervisory authorities in fulfilling their legal responsibilities to ensure drug safety for their own regions.

At the same time, we should engage society more effectively in joint efforts for drug safety. Given that drug safety is crucial for people's health and lives, we must supervise drug safety for the people and with their support. We should actively develop teams to assist with supervision through collecting and communicating drug safety information as well as engaging in volunteer activities, and fully leverage the role of professionals, such as pharmaceutical company employees and licensed pharmacists. Through these efforts, we will promote public participation in joint efforts for drug safety. Thank you.

China News Service: 

We noticed that the NMPA publicly solicited opinions in August on the draft Medical Devices Management Law. Could you explain the initial motivation and significance behind the formulation of this specific law? Thank you.

Lei Ping: 

Thank you for your question, and for your interest in and support for the NMPA's legal development efforts. In recent years, the NMPA has made rapid progress in its legal framework. We have fully revised the Drug Administration Law, enacted the world's first comprehensive Vaccine Administration Law, and revised the Regulations on the Supervision and Administration of Medical Devices and the Regulations on the Supervision and Administration of Cosmetics, thereby completing the key pillars of China's pharmaceutical regulatory system.

In order to ensure the safety and efficiency of medical devices and to promote high-quality industry development to better meet the public's demand for high-quality medical devices, the 14th NPC Standing Committee has included the Medical Devices Management Law in its legislative plan.

Elevating the management of medical devices from administrative regulations to a law not only raises the legal status, but also enhances the content. There were three main considerations in drafting the Medical Devices Management Law. First, it meets the practical need to promote the high-quality development of the medical devices industry. In recent years, China's medical devices industry has shown strong growth, with a compound annual growth rate exceeding 10% for many years. A specialized law is necessary to elevate the industry to a national strategic level, providing comprehensive and systematic regulations from technology investment, financial support, capacity building, industry standards and academia-industry collaboration, to industry-wide coordination. Second, it is crucial for establishing a comprehensive and systematic regulatory framework. This specialized law will provide a more complete and authoritative legal foundation for governing the medical devices industry. Third, it aligns with the requirements of China's participation in international exchanges and cooperation. A dedicated law will help synchronize with international medical device management laws and better leverage China's role and position in relevant international organizations.

The draft Medical Devices Management Law is currently open for public consultation, and we encourage everyone to offer valuable suggestions to help shape this new law. Together, we can ensure the safety of medical devices for the public. Thank you.

Jimu News: 

The quality of pharmaceuticals is directly related to public health and safety. We noticed that the NMPA is implementing a drug safety consolidation and enhancement campaign. Could you provide an update on its progress and effectiveness? And how does the NMPA plan to further strengthen pharmaceutical quality and safety supervision? Thank you.

Li Li: 

Thank you for your interest in the drug safety consolidation and enhancement campaign. I would like to invite Mr. Zhao to provide more details.

Zhao Junning: 

I will answer this question. The NMPA places great emphasis on drug safety, consistently working to purify the pharmaceutical market and maintain a stable and improving drug safety landscape. Since June 2023, the NMPA has been implementing a one-and-a-half-year drug safety consolidation and enhancement campaign, aimed at solidifying the foundation of drug safety and protecting public health.

First, we are focused on key issues and are actively resolving risks and hidden dangers. By targeting key products, key processes, key regions and key enterprises, we have conducted special inspections of pharmaceutical operations and uses, special inspections of special medicines, special checks on delegated manufacturing for medical device registrants, supervisory spot checks of clinical trials for medical devices, and special inspections of hair dye cosmetics. We aim to identify and resolve risks and hidden dangers through multiple channels and dimensions, utilizing our capabilities for risk warning, identification and resolution, and taking effective measures to address potential drug safety risks promptly.

Second, we are cracking down on major cases and strictly punishing illegal activities. We are using means such as exposing typical cases and publishing lists of those committing serious violations of law and trust. We ensure that penalties are enforced against individuals responsible for illegal acts, implement joint punishments, ban individuals from the industry, and prohibit certain practices, all in a concerted effort to ensure the stability of drug safety. 

Third, we will improve institutional mechanisms and comprehensively enhance regulatory capabilities. We are advancing the implementation of local management responsibilities, strengthening departmental regulatory responsibilities, and reinforcing corporate principal responsibilities to ensure comprehensive drug safety safety. The NMPA, in conjunction with the State Administration for Market Regulation (SAMR), has issued the Guidance on Strengthening Cross-Regional and Multi-Level Drug Regulatory Collaboration, which enhances the coordination among national, provincial, city and county-level drug regulatory departments throughout the entire lifecycle of drugs. In collaboration with the Ministry of Public Security, the NMPA has jointly issued the Guidelines for the Inspection and Determination of Suspected Criminal Cases in the Pharmaceutical Field to promote effective integration of administrative and criminal enforcement efforts. A total of 142 city and county-level drug regulatory departments have been designated as grassroots contact points, achieving a demonstrative and leading effect. Local drug regulatory departments are actively developing teams of township pharmaceutical safety co-managers and rural pharmaceutical safety information officers, extending drug regulatory oversight to townships and rural areas, and enhancing comprehensive governance capabilities at the primary level.

Next, the NMPA will continue to focus on key tasks of the drug safety consolidation and enhancement campaign. We will intensify our efforts, focus on investigating a number of major cases, and strictly punish illegal and non-compliant behaviors. We will also strengthen the investigation and resolution of risks and hidden dangers to solidify the foundation of drug safety. Thank you.

People's Daily Health App:

In recent years, the NMPA has strongly encouraged the R&D as well as innovation of medical devices. What progress has been made in the review and approval of innovative medical devices? Thank you.

Li Li:

Thank you for your question. Innovative medical devices are a crucial track in the innovation and R&D of pharmaceuticals. I would like to invite Mr. Lei to answer this question.

Lei Ping:

I will answer this question. The NMPA is fully committed to promoting the R&D and innovation of medical devices, rapidly transforming scientific research achievements into innovative products.

We have collaborated by integrating resources and strengthening inter-ministry cooperation. In partnership with the Ministry of Industry and Information Technology (MIIT), we have organized and implemented a leading project system in the field of innovation. We have selected 48 artificial intelligence (AI) projects and 40 high-end medical device projects in the field of biomaterials, providing them with key support during the application process. We have established three innovation cooperation platforms for AI medical devices, biomaterials and high-end medical equipment, bringing together the strengths of industries, universities, research institutes, hospitals and regulatory authorities.

We have advanced regulatory science research, exploring the application of real-world data, evaluation methods for next-generation gene sequencing products, and other new technological areas. This has led to several new tools, standards and methods, which are now being applied in regulatory work.

We have comprehensively innovated the review mechanism, shifting the focus of medical device technical evaluations to the earlier stages of product R&D. This has accelerated the tackling of key core technologies, helping China achieve significant breakthroughs in high-end medical devices. We have established two medical device evaluation and inspection sub-centers in the Yangtze River Delta and the Greater Bay Area. For provinces with large medical device industries, we have set up service mechanisms to ensure that innovative medical device companies can receive timely professional guidance.

We have identified four key areas for support: AI, novel medical biomaterials, high-end medical imaging, and medical robots. We are working to eliminate bottlenecks and challenges hindering the development of these industries.

We regularly organize regulatory consultations to oversee the nation's first-in-class medical devices and those with complex manufacturing processes. We actively guide and urge enterprises to fully uphold their primary responsibility for quality and safety, ensuring the quality and safety of products.

To date, the NMPA has approved 296 innovative medical devices for market entry, primarily in high-end fields such as implantable interventional devices, advanced imaging, and AI-powered medical devices. Some of these products have reached a leading international position. Examples include: third-generation non-contact ventricular assist devices, which provide effective life support for patients with advanced refractory left-sided heart failure awaiting heart transplants; carbon ion therapy system with independent intellectual property rights in China, which offers a more effective treatment option for certain malignant tumors, having successfully treated over 1,400 patients; advanced deep brain stimulation devices, which have been clinically applied in over 480 hospitals, implanted in 27,000 patients and reached clinical application in eight countries; and innovative PET-CT products, which can image the entire human body with a single scan, offering high resolution scans at low radiation doses. These innovative medical devices not only fill domestic gaps but also significantly reduce the costs of diagnosis and treatment, directly benefiting the public.

Going forward, the NMPA will continue to adhere to a people-centered approach, constantly summarizing experiences and optimizing procedures to launch more high-quality, high-end innovative medical devices. This will ensure that the public truly feels the tangible benefits. Thank you.

21st Century Business Herald：

As regulatory capabilities continue to improve, the informatization level at the NMPA has also seen continuous enhancements. Could you briefly introduce the NMPA's approach, initiatives and achievements in intelligent supervision? Thank you.

Li Li:

Thank you for your question. Informatization serves as a multiplier of drug regulatory effectiveness and is the driving force behind the modernization of drug regulation. For more specific details on this matter, I'll defer to Deputy Director Mr. Huang for his response.

Huang Guo:

The NMPA places great importance on the development of information technology. It has explicitly stated its intention to use information technology as a guiding force for the modernization of drug regulation and has continuously implemented a smart regulation action plan to enhance supervision through new standards, technologies and tools. At the same time, we hope to leverage regulatory informatization to drive the digital transformation and upgrading of the pharmaceutical industry.

Let me provide a few examples. For instance, we have focused on facilitating businesses and the public by both optimizing and upgrading government services. Given the highly technical and complex nature of drug evaluation and approval, we have developed and improved an integrated system for the registration, filing and approval of drugs, medical devices and cosmetics. This system meets the requirements to efficiently complete a task, enabling full integration and coordination of the entire process from acceptance and evaluation to approval and certification.

As Director Li Li mentioned earlier, the NMPA has now realized 100% online processing for administrative services. Furthermore, all business-related licenses at the bureau level are fully digitalized, with over 170,000 electronic certificates issued to date. Businesses now only need to visit a unified online platform or a single service portal to handle all of their affairs.

For instance, we focus on risk prevention and control by continuously strengthening the supervision of drugs circulation. We are enhancing the use of big data in drug regulation, advancing production line coding and full-process traceability for key products. We have also started phasing in a unique identification system for medical devices, establishing a unique identification database and promoting a "one code manages the entire process" approach. Additionally, in light of the rapid growth of online sales of drugs, medical devices and cosmetics, we are continuously developing an online sales monitoring platform, using an "internet-based management" approach to strengthen problem detection and resolution.

Here is a set of data: currently, over 27,000 websites are under routine monitoring, with an average of more than 10 million product pages monitored each month. A cross-level collaborative mechanism has been established for network monitoring, risk warning, risk identification, verification and resolution as well as risk elimination. This mechanism effectively and continuously works to purify the online sales environment.

Additionally, we have focused on the industry development scenario by steadily advancing the digital regulation of drug production. While continuously innovating smart regulation methods and approaches, we strive to promote and integrate smart regulation with intelligent manufacturing in China's pharmaceutical industry. For key products such as vaccines, blood products and special drugs, we have developed digital technology guidelines for production and inspection to support the digital transformation and upgrading of relevant manufacturing enterprises.

Currently, all vaccine manufacturers in China have implemented electronic recordkeeping and management for production and inspection data, significantly enhancing the level of quality and safety assurance. This year, the NMPA revised the appendix on blood products in the Good Manufacturing Practice for Drugs. Additionally, the Three-Year Action Plan for Intelligent Supervision of Blood Product Production and the Technical Guidelines for Electronic Records of Blood Product Production Inspection have been introduced to address challenges in the quality management of blood products through informatization, promoting the overall transformation and upgrading of blood product production.

Going forward, we will continue to accelerate the development of smart regulation, with a focus on the development and application of new technologies such as artificial intelligence. We will leverage digitalization and smart technologies to enhance the efficient governance of drug safety.

That concludes my explanation. Thank you!

Xing Huina:

Next question, please. I notice two journalists both have their hands raised.

Red Star News：

In recent years, the cosmetics market has experienced rapid growth, and the use of cosmetics has become part of people's everyday life. Could you please share what measures the NMPA has taken to regulate the development of the cosmetics industry? What are the future plans and considerations in this regard? Thank you.

Li Li:

Thank you for your questions. Cosmetics are products made for beauty, embodying people's aspirations for a better life. I will now invite Mr. Lei to respond to these questions.

Lei Ping：

I will answer these questions. The Regulations on Supervision and Administration of Cosmetics was implemented in 2021. With the enactment of these Regulations, the regulatory framework for cosmetics has gradually developed into a comprehensive and cohesive system. This marks a new chapter in the regulation and development of the cosmetics industry, resulting in continuous improvements within the industry environment.

First, the construction of the regulatory framework has entered a new era. We have organized the formulation and issuance of three departmental rules: the Provisions for Registration and Filing of Cosmetics, the Provision for Supervision and Administration of Manufacturing and Marketing of Cosmetics, and the Provisions for Toothpaste Regulation. More than 20 normative documents and over 40 technical guidelines have been issued, covering cosmetics registration and filing data management, label management, production quality management, online operation management, and supervision of children's cosmetics. This has essentially formed a well-structured regulatory system covering the entire cosmetics industry chain.

Second, new breakthroughs have been made in reforming the review and approval system and developing the safety evaluation system. The provisions have established a system for cosmetics registrants and filing applicants. We have implemented categorized management based on risk levels. We have also formulated safety and efficacy evaluation standards tailored to cosmetics characteristics. Meanwhile, we have strengthened the development of information platforms, improving smart supervision capabilities. Here are some statistics: As of the end of July 2024, there were 20,152 cosmetics registrants and filing applicants nationwide, 3,145 domestic responsible persons for cosmetics, and 5,846 cosmetics manufacturers. There were 1.791 million general cosmetics (1.735 million made in China and 56,000 imported) and 28,326 special cosmetics (23,775 made in China and 4,551 imported).

Third, new progress has been made in post-marketing supervision. A consultation mechanism for cosmetics safety risks has been established to regularly assess and address risks and hidden dangers in the cosmetics sector. We've established and continually improved the monitoring platform for online cosmetics sales, conducting nationwide monitoring of cosmetics sold online. We have strengthened the daily supervision of cosmetics. Over the past three years, more than 20,000 batches of cosmetic products have been sampled annually for national examination, and over 5,000 batches have been sampled annually for national safety risk monitoring. We have also published 22 typical cases of cracking down on illegal and criminal activities concerning cosmetics.

Fourth, we've entered a new phase in developing a system of standards. We established the NMPA Standardization Technical Committee for Cosmetics, further enhancing the management of cosmetics standards. We have continued to advance the formulation and revision of the Cosmetics Safety Technical Standards and actively promoted the revision of relevant mandatory national standards. Since 2021, we have formulated and revised 96 cosmetics standards.

Next, the NMPA will continue to deepen reforms, encourage innovation, strengthen oversight, and crack down on illegal activities. These efforts aim to further contribute to the high-quality development of the "beauty economy." Thank you.

Xing Huina:

One last question, please.

China Daily:

The issue of pediatric medication has received wide attention and has also been one of the NMPA's priorities in recent years. What progress has been made? What follow-up work will be done by the NMPA? Thank you.

Li Li:

Children are the future of our country and represent our greatest hope. Thanks to the reporter for your interest in pediatric medication. I'll now turn to Mr. Huang to answer this question.

Huang Guo:

Pediatric medication is a common global challenge and a complex issue. Due to the difficulties in research and development, some diseases still lack appropriate treatments. For other conditions, medications exist, but questions remain about their use in children: whether they can be used, how they should be used, and unclear labeling information. In response to these issues, the NMPA has implemented multiple measures to encourage R&D and innovation in pediatric medications, standardize information on pediatric use in drug labels, and meet the clinical needs of young patients.

First, we have implemented a priority review and approval policy to accelerate the marketing of pediatric medications. We have worked with relevant departments to formulate a list of pediatric medications to encourage R&D and applications, achieving good results over the past three years. In 2021, 47 pediatric medications were approved, increasing to 66 in 2022 and 92 in 2023. From January to August this year, we have already approved 49 medications. These figures show a strong momentum of rapid growth in pediatric drug development. For example, we recently expedited the approval of Selumetinib Hydrogen Sulfate Capsules, currently the world's only specialized medication for treating neurofibroma in children. This medication was developed using a global synchronous R&D strategy. Based on international multicenter clinical trial evidence, it received simultaneous global marketing approval through our priority assessment and approval procedure, which will benefit many children.

Second, we have improved medication package inserts and added information on pediatric use. The NMPA has issued the Work Procedures for Adding Pediatric Medication Information to the Package Inserts of Marketed Drugs (for Trial Implementation). This initiative focuses on urgently needed pediatric clinical drugs, encouraging companies to strengthen scientific research while regulatory authorities conduct rigorous evaluations. As a result, information on pediatric use is being added to drug labels, enhancing the safety and efficacy of medications in pediatric clinical practice.

To date, we have issued revision announcements for 49 product specifications across 15 drug varieties in three batches. The newly added pediatric use information covers antineoplastic drugs, such as those for childhood leukemia, which is of particular concern, as well as medications for severe mental disorders in children, including autism, depression, schizophrenia and other serious conditions.

Additionally, we have accelerated improvements to R&D technical requirements, aligning them with international standards. We've issued 21 standards and guidelines for pediatric drug development, comparable to those of regulatory agencies in developed countries. Among these, the Guidance on Real-World Studies to Support Pediatric Drug Development and Regulatory Evaluation of and the Guidance for the Design and Evaluation of Pediatric Drug Palatability are world firsts, placing us at the forefront of global regulatory practices in this field.

Moving forward, the NMPA will continue to prioritize the safety and accessibility of pediatric medications. With the attention and support of society at large, we will further strengthen our support for the R&D and production of pediatric drugs, enhance the supply of medications for children, and provide greater reassurance to parents. Thank you.

Xing Huina:

This concludes today's press conference. Thank you to our speakers and to all members of the media for attending. Goodbye.

Translated and edited by Wang Yiming, Wang Wei, Zhu Bochen, Wang Qian, Wang Ziteng, Huang Shan, Zhang Jiaqi, Zhou Jing, Xiang Bin, Yuan Fang, Yang Chuanli, Li Huiru, Liu Caiyi, Liu Qiang, Xu Kailin, Wang Yanfang, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Lei Haichao, minister of the National Health Commission (NHC)

Mr. Wang Hesheng, vice minister of the NHC and administrator of the National Disease Control and Prevention Administration

Mr. Yu Xuejun, vice minister of the NHC

Ms. Yu Yanhong, a member of the leading Party members group of the NHC and commissioner of the National Administration of Traditional Chinese Medicine

Chairperson:

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

Date:

Sept. 12, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference hosted by the State Council Information Office (SCIO) as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Lei Haichao, minister of the National Health Commission (NHC), to brief you on relevant developments and to answer your questions. Also present today are Mr. Wang Hesheng, vice minister of the NHC and administrator of the National Disease Control and Prevention Administration; Mr. Yu Xuejun, vice minister of the NHC; and Ms. Yu Yanhong, a member of the Leading Party Members Group of the NHC and commissioner of the National Administration of Traditional Chinese Medicine.

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

Lei Haichao:

Dear journalists, ladies and gentlemen, good morning. I am pleased to attend this press conference on high-quality development hosted by the SCIO. Today, major officials from the NHC, the National Administration of Traditional Chinese Medicine and the National Disease Control and Prevention Administration are all present. We are willing to discuss and share information about current work concerning health care, disease prevention and control, and traditional Chinese medicine, as well as to answer questions that you may find of interest. First, let me provide an overview of the basic situation and relevant circumstances in health care development.

Since the 18th National Congress of the Communist Party of China (CPC), the national health care system has adhered to the Party's guidelines for health care work in the new era, implemented the decisions and arrangements of the CPC Central Committee and the State Council, and promoted the high-quality development of health care. We have achieved a series of important accomplishments and positive progress.

First, we have adhered to prevention as the main priority, protecting the health of the people from the source. We have implemented the Healthy China Action Plan and patriotic health campaigns, and carried out a series of health knowledge promotional activities. Especially in recent years, the public's demand for health-related knowledge has been very urgent and diversified. The NHC has consistently and frequently released health-related knowledge, disseminating health information to promote good lifestyles and habits among residents and the public. In this regard, we have had positive interactions with the general public. Since this year, we have launched activities related to the 24 solar terms, specifically the "Seasons, Solar Terms and Health" thematic knowledge release, which has attracted significant public attention. This type of dissemination is also a way to promote brilliant traditional Chinese culture. Combining the changes in the solar terms, we explain to the public health-related knowledge according to time and location that they should pay attention to. That has been well received by the public. At the same time, we have vigorously carried out patriotic health campaigns. Here, I would like to share some data. We have now established 1,052 national healthy cities, counties and districts, and 2,637 national healthy towns. Thanks to the program implemented nationwide to promote equal access to basic public health services, the per-capita allowance for basic public health services has been increased from 15 yuan in 2009 to 94 yuan ($13.41) in 2024, with public finance playing an active driving role to ensure that. Meanwhile, through our monitoring, the health literacy of the population is gradually improving and some major risk factors for cardiovascular and cerebrovascular diseases, among other chronic diseases, have been further controlled.

Second, we have focused on the grassroots level to provide residents with convenient and accessible medical care services. Focusing on the grassroots is a requirement of the Party's health guidelines in the new era. The NHC resolutely implements the work guideline focusing on the grassroots, treating the immediate concerns of the people as a top priority to be implemented. Here, I would also like to share more with you. Over the years, through relentless efforts, we have promoted the expansion and decentralization of high-quality medical resources. We have now established national medical centers in 13 categories, which are not located in Beijing but are planned across the country. Additionally, we have established 125 national regional medical centers and promoted the construction of provincial regional medical centers, making the distribution and layout of medical resources more balanced and closer to the people. Moreover, we have organized and encouraged tertiary and secondary hospitals to provide assistance and support at the grassroots level. Yesterday afternoon, the NHC organized a national medical tour team to carry out this new form of service. This year, all 44 hospitals under the jurisdiction of the NHC will participate in the national medical tour, bringing high-quality and efficient services to the people in the central and western regions, especially those living in counties. At the same time, our national medical tour team will also help local areas improve their technical and management levels, extending the capabilities of our national team to the county level. According to our monitoring, 92% of county-level hospitals have now reached both the service capacity and the level of secondary hospitals or above. Additionally, our county-level medical institutions also vigorously assist and support township and countryside grassroots, such as township health centers and community health service centers, forming a virtuous interaction where higher-level medical institutions help lower-level.

Third, we have been committed to public welfare, deepening the coordinated reform and governance of health care, health insurance and pharmaceuticals. General Secretary Xi Jinping has made it clear that public welfare is the prominent feature of the health care industry. In collaboration with relevant departments, the NHC has been advancing and deepening medical reforms. Over the past decade, especially since the 18th CPC National Congress, we have historically eliminated the old operating mechanism of charging more for medicines and medical consumables to make up for low prices for medical services and have preliminarily established a new operating mechanism dominated by medical services. Public medical institutions' income has shifted from the original three channels to two: government financial subsidies and medical service fees. The old mechanism of relying on medicines and consumables to compensate for medical services no longer exists. Public welfare has been further strengthened, which has also greatly enhanced the role of public hospitals. In the process of advancing medical reforms, Sanming city in Fujian province has created many fresh experiences, which have been studied and promoted in many places across the country. Some practices from Sanming, Fujian, have also been elevated to national policies, ensuring good implementation and execution, as well as re-creation and re-innovation within health work.

Fourth, we have been committed to adjusting and improving the childbirth policy to promote balanced population growth in the long run. Based on the size, structure and trends of the population, we have worked to improve and adjust the childbirth policy from the perspective of promoting high-quality economic and social development. Since the 18th CPC National Congress, we have successively introduced adjustments to the childbirth policy, including the two-child policy for couples of which one partner is an only child, the universal two-child policy and the three-child policy, which have been welcomed by the public and also respond to the general environment and situation of the country's rapidly aging population. Additionally, we persist in optimizing and enhancing maternal and child health care services as well as improving the level of childbirth services. Currently, our indicators related to maternal and child health are among the leading in upper-middle-income countries.

Fifth, we remain committed to advancing the integration of science, technology, education and talent while nurturing and developing new quality productive forces. By the end of last year, China accounted for over 20% of new drugs under development globally. This marked a significant breakthrough, placing China second worldwide in new drug development. As of late last year, over 80,000 rural medical students, trained through government-funded programs, had graduated and gone on to work in township health centers and village clinics, ensuring a steady flow of skilled health care professionals to rural areas. Additionally, more than 500,000 medical graduates with bachelor's degrees or higher enter the workforce annually. This influx of new professionals provides strong momentum for the development of our health care system. I'd also like to share that, as of the end of 2023, China's health care system employed 15.23 million staff, including 12.48 million professional technical personnel, making our health care service the world's largest. This accomplishment reflects the positive results of 75 years of continuous effort since the founding of the People's Republic of China. Over the years, we've transitioned from merely following others to keeping pace and even leading in fields like artificial intelligence, surgical robots, medical imaging equipment, and life monitoring and emergency medical devices, achieving internationally advanced or leading standards.

Sixth, by upholding the principle of putting people and their lives first, we have achieved decisive victories in both health programs for poverty alleviation and the fight against COVID-19. We have remedied the shortfall in medical workers and institutions at the village and township level. This achievement has contributed significantly to our goal of building a moderately prosperous society in all respects. We have successfully ensured basic health care for all. As we continue with rural revitalization, we must maintain these standards and closely watch rural residents' health and medical needs. In response to the sudden outbreak of the COVID-19 pandemic, thanks to nationwide efforts, we managed to achieve what can only be described as a historic miracle — successfully navigating a pandemic in a country with such a large population. Remarkably, during the past few years of the pandemic, our life expectancy has continued to rise. According to the latest statistics, in 2023, China's average life expectancy reached 78.6 years, more than three years higher than in 2012. This growth rate is impressive, not only among developing countries but also when compared to high-income nations.

The third plenary session of the 20th CPC Central Committee outlined significant reforms in the health sector and proposed implementing a health-first strategy, elevating the importance of health care to a new level within the Party's overall framework. We must now actively make detailed plans to ensure its full implementation. Additionally, we remain committed to the ambitious goal of building a healthy China by 2035. This Healthy China Initiative aims to strengthen the foundation of public health, underpinning China's modernization and providing a powerful boost to the nation's development amid efforts to strengthen China's science and technology, education, and public health. Of course, many challenges and issues still need to be addressed, particularly the imbalances and inadequacies in health care development. These remain key areas of focus and goals for our future efforts.

That's all for my introduction. Next, my colleagues and I are ready 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.

Health News:

How has public health in China changed since the launch of the Healthy China Initiative? Moreover, the third plenary session of the 20th CPC Central Committee proposed a health-first development strategy. How does this relate to the Healthy China Initiative? Thank you.

Lei Haichao:

Thank you for your questions. I'll take them. Health is a crucial form of human capital and the cornerstone of development. Without it, development is impossible. That's why health is integral to China's high-quality economic and social development. The CPC Central Committee and the State Council have made health a top priority. Through efforts like the Healthy China Initiative, patriotic health campaigns, and basic public health services, we've achieved significant improvements in public health awareness and literacy. Let me highlight a few key points.

First, personal health awareness has significantly improved. We've consistently promoted health education, addressing challenges like an aging population, declining birth rates and changing lifestyles. It's crucial to teach people how to avoid health risks in daily life, work, and their environment, as well as to encourage them to adopt healthy habits. One key message we emphasize is that everyone is the first person responsible for their health. To support this, the NHC, collaborating with local health authorities, disease control centers and traditional Chinese medicine agencies, has implemented frequent health education campaigns. I'm pleased to report that health literacy in China has increased from 17% in 2018 to 29.7% in 2023, an increase of nearly 13 percentage points in five years. This is a significant achievement.

Second, the overall health of the population has significantly improved. Through the Healthy China Initiative, we've enhanced medical services, especially by bringing health care closer to people's homes, making it more accessible. We've also targeted key groups with specific health concerns. For example, we've tackled issues like myopia, obesity and malnutrition in schoolchildren, as well as high cholesterol, blood sugar and blood pressure among middle-aged and older people, through lifestyle interventions and health education. The myopia rate among children and teenagers decreased to 51.9% in 2022, down 1.7 percentage points from 2018. Thanks to joint efforts from the education, health care, and media sectors, we've halted the worsening trend of myopia rates among youth and continue to build on this success. Additionally, we've improved workplace health by addressing occupational diseases. This includes enhancing work environments to reduce conditions like occupational hearing loss and respiratory illnesses. In 2023, newly reported cases of occupational diseases dropped by 48.6% compared to 2018. For the elderly, we've promoted health education, improved nutrition and enhanced dental care. Through the combined efforts of maternal and child health workers and society at large, the under-5 mortality rate fell to 6.2 per 1,000 in 2023, and the maternal mortality rate dropped to 15.1 per 100,000. These are the best figures we've ever recorded in China, matching the levels of advanced middle- to high-income countries globally.

Third, the impact of the environment and major diseases on public health has been steadily reduced and controlled. In recent years, through efforts to promote ecological progress and address environmental pollution, key environmental indicators such as air, water and soil quality have significantly improved, leading to a higher quality of life for the public. Additionally, we have strengthened early diagnosis and treatment for cardiovascular and cerebrovascular diseases, cancer, chronic respiratory diseases, and diabetes. As a result, the premature mortality rate from major chronic diseases dropped from 17.36% in 2018 to 15% in 2023.

The third plenary session of the 20th CPC Central Committee advanced the proposal to implement a health-first development strategy. Moving forward, we will diligently carry out the decisions and arrangements of the central authorities, thoroughly studying the strategic priorities, specific policies, and implementation measures of the health-first strategy. In particular, we will focus on refining governance policies and regulations in areas such as development planning, government investment, and social governance to achieve the goals of the health-first strategy. Moreover, we will make ensuring and improving public health a key objective and metric of socioeconomic development, and we will work to establish a health impact assessment system through legislation. In addition, we will continue to push forward the Healthy China Initiative, patriotic health campaigns, and the creation of healthy villages while promoting stronger collaboration and integration between hospitals and disease prevention and control institutions as well as public participation. The conducive policies and decisions laid out at the third plenary session of the 20th CPC Central Committee will be effectively implemented in our practical work. Thank you.

Cover News:

Demographic development is a crucial matter concerning the great rejuvenation of the Chinese nation. In recent years, China's demographic trends have been characterized by low birth rates, an aging population, and regional disparities in population growth. Faced with these new circumstances, what's your strategy to promote high-quality population development? Thank you. 

Yu Xuejun:

Thank you for your question. The demographic changes you mentioned are the result of socioeconomic development and align with the general trends of global demographic transition and modernization. In response to this new demographic situation, General Secretary Xi Jinping made an important proposal and related requirements for supporting Chinese modernization through high-quality population development at the first meeting of the Commission for Financial and Economic Affairs under the 20th CPC Central Committee on May 5, 2023. The third plenary session of the 20th CPC Central Committee also explicitly called for improving the system of fertility support policies and incentive mechanisms, fostering a birth-friendly society, and promoting high-quality population development. Demography matters to all countries. Demographic development is a high-stakes issue affecting the national economy and people's well-being. We must follow the unified arrangements of the CPC Central Committee and ensure coordinated efforts across localities and departments, making sustained efforts over the long term.

We will fulfill our duties by doing work in the following aspects. First, we will thoroughly implement the health-first development strategy, establishing a population service system that covers all people throughout their entire lives. This includes enhancing the management of major chronic diseases, increasing the average life expectancy, and steadily improving the overall health of the population. Second, in collaboration with relevant departments, we will accelerate the creation and improvement of a policy system to support childbirth, develop an inclusive childcare service system, reduce the burden of childbirth, childcare, and education on families, maintain an appropriate birth rate and population size, and promote long-term balanced population development. Third, we will strongly advocate for marriage and childbirth at an appropriate age, promote healthy childbirth and parenting, encourage shared childcare responsibilities between spouses, and respect the societal value of childbirth. We will also guide young people to consider marriage, childbirth and family from a more positive perspective, cultivating a new culture around these concepts and creating a birth-friendly society. 

Next, the NHC will thoroughly implement the central government's decisions and plans, integrating high-quality population development with improving people's quality of life. We will accelerate the execution of various tasks and address the urgent and pressing issues related to childbirth, childcare and education that concern the public. These efforts will drive high-quality population development. Thank you.

Jinan Times APP:

In recent years, traditional Chinese medicine (TCM) has attracted increasing attention thanks to its unique advantages in the prevention and treatment of diseases. What results have been achieved regarding high-quality TCM development since the beginning of the 14th Five-Year Plan period? Thank you.

Lei Haichao:

Thank you. Ms. Yu will answer this question. 

Yu Yanhong:

Thank you for the question. General Secretary Xi Jinping has made multiple important instructions on promoting the high-quality development of TCM and related industries, and we have conscientiously implemented his important directives on TCM-related work and the decisions and arrangements of the CPC Central Committee. We have carried forward the fine elements of TCM, innovating while upholding principles. Focusing on the implementation of the TCM development plan for the 14th Five-Year Plan period and major projects for rejuvenating TCM, we have facilitated the rapid and high-quality development of TCM in the new era. According to evaluations, three out of the 15 major development targets outlined in the 14th Five-Year Plan have already been achieved ahead of schedule, and progress on the remaining targets is proceeding as planned. The main results are as follows:

TCM service capabilities have improved significantly. We have focused on enhancing strengths, addressing weaknesses, building TCM hubs, and strengthening grassroots infrastructure. On the one hand, we have relied on top-tier TCM hospitals to promote the construction of national TCM research centers. So far, we have established 27 TCM programs at regional medical centers, mapped out 35 national TCM epidemic prevention and control bases, and selected 1,158 national TCM specialty departments. These efforts have expanded premium medical resources in lower-level institutions and improved the regional distribution of these resources. On the other hand, we have supported 130 prefecture-level TCM hospitals in developing key TCM specialties and over 1,000 county-level TCM hospitals in establishing at least two specialty departments and one center for promoting suitable TCM techniques countywide. We have achieved full coverage of TCM facilities in community health service centers and township health centers. Overall, we have built a high-quality, efficient TCM service system. To illustrate, in 2023, there were 93,000 TCM medical institutions nationwide, providing 1.54 billion patient consultations, representing a 29.2% increase in the number of institutions and a 67.4% increase in consultations compared to 2020.

The integrated development of TCM education, technology and talent cultivation has yielded new results. In education, we have deepened collaboration between hospitals and educational institutions by establishing a joint TCM graduate school and developing 321 high-level TCM departments for academic research. These efforts have driven reform and high-quality development in education and teaching. In terms of sci-tech innovation, we have focused on better clarifying and demonstrating the curative effects of TCM. This effort has resulted in the establishment of new platforms, systems and mechanisms for sci-tech innovation. We undertook the special task of TCM modernization under the national key research and development program, built seven national key laboratories and two national clinical research centers for TCM, and mapped out 46 national TCM inheritance and innovation centers. Notably, the International Traditional Medicine Clinical Trial Registry, operated by the China Center for Evidence Based Traditional Chinese Medicine, has been recognized as a WHO Primary Registry and has released numerous TCM treatments for key diseases, appropriate TCM technologies, and uniquely effective TCM medicines. In terms of talent development, we implemented a project to cultivate TCM specialists, building a tiered, high-caliber talent pool consisting of leaders, outstanding figures, and key professionals. In the TCM community, this project is warmly referred to as the "Qihuang Project" (named after the two founders of TCM, Qibo and Huangdi). Since the start of the 14th Five-Year Plan period, five TCM experts have been inducted into the Chinese Academy of Sciences and the Chinese Academy of Engineering. We also selected and honored the fourth cohort of 30 TCM Masters, along with 101 nationally famous TCM practitioners. As of the end of last year, the number of TCM practitioners nationwide (including assistant physicians) had reached 868,000.

The recognition and influence of TCM have continued to increase. The show "China Traditional Chinese Medicine Conference" garnered national attention after its debut on CCTV. Meanwhile, TCM cultural night markets have become immensely popular, and TCM health practices have gained a significant following among young people. TCM is increasingly becoming ingrained in the cultural mindset as a means of promoting public health. TCM has taken a more proactive role in serving China's major-country diplomacy with Chinese characteristics. Thirty high-quality TCM overseas centers have been built. TCM has been included in the list of outcomes from the China-Central Asia Summit and the results of mutual visits by the top leaders of China and Vietnam. The Shanghai Cooperation Organization Forum on Traditional Medicine continues to be held annually. The Chinese medical team providing TCM aid to Cambodia has become a bond connecting the people of both countries. TCM continues to play a greater role in building a global community of health for all.

Next, we will focus on enhancing the mechanisms for preserving and innovatively developing TCM. We will further deepen comprehensive reforms in TCM to better serve the development of a healthy China and contribute to economic and social progress. Thank you.

21st Century Business Herald:

In recent years, there's been growing recognition of early detection's crucial role in preventing and controlling infectious diseases. Could you highlight some new features and initiatives in China's current infectious disease monitoring and early warning system? Thank you.

Wang Hesheng:

Thank you for your question. Strengthening monitoring and early warning systems to ensure that risks are identified as soon as they emerge is the first step to effectively prevent and defuse the risk of epidemics. General Secretary Xi Jinping emphasized that enhancing early monitoring and warning capabilities is an urgent priority in improving the public health system. The National Disease Control and Prevention Administration is committed to top-level design, a problem-oriented approach and clear priorities. We have made establishing and improving the infectious disease monitoring and early warning system our primary task.

In recent years, with support from the Ministry of Finance, NHC, Customs and other departments, we've established 10 infectious disease monitoring systems. These include sentinel hospitals, virus mutation tracking and urban sewage analysis, which have successfully supported early warning and prediction of infectious disease outbreaks. Responding to concurrent epidemics of respiratory infections like influenza, respiratory syncytial virus and mycoplasma pneumonia, we've implemented comprehensive monitoring of 15 common respiratory pathogens. This allows for "multi-disease monitoring and multi-testing from a single sample," enabling timely tracking of epidemic trends and pathogen composition. This approach has significantly bolstered clinical treatment and epidemic prevention efforts. Furthermore, we're accelerating the development of an information platform for infectious disease monitoring, early warning and emergency command. Building on pilot projects in Tianjin, Hubei and Anhui, we're deploying intelligent monitoring and early warning software to all secondary and higher-level medical institutions nationwide. This initiative aims to enhance effective information sharing between medical institutions and disease prevention and control institutions.

Recently, with the approval of the State Council, the National Disease Control and Prevention Administration, NHC and seven other departments jointly issued the "Guidance on Establishing and Improving an Intelligent Multi-Point Triggering System for Infectious Disease Monitoring and Early Warning." This guidance outlines plans to build a multi-point triggering, rapid-responding, and efficient infectious disease monitoring and early warning system by 2030. The goal is to achieve internationally advanced capabilities in early detection, scientific assessment and timely warning of epidemics. Moving forward, we will focus on implementing this guidance, emphasizing three key aspects: diversification of data sources, intelligent systems and standardized procedures. These efforts aim to enhance our capacity for infectious disease monitoring and early warning.

First, we will focus on multi-channel monitoring to enhance early detection and identification capabilities. While optimizing the direct online reporting system for infectious diseases, we'll primarily strengthen three active monitoring and early warning networks: sentinel hospitals, monitoring sites and network laboratories. We'll develop multi-source channels, including interdepartmental coordination, social perception and global epidemic monitoring. This approach will interconnect and cross-validate data from human, animal and environmental domains, enabling multi-point triggering and early warning.

Second, we will focus on leveraging new technologies to enhance intelligent systems. We'll employ big data, cloud computing, artificial intelligence and other information technologies to build multi-dimensional monitoring and early warning indicators, databases and model repositories. This will enable automatic triggering, capture and early warning of abnormal signals. We aim to create a unified "dashboard" for monitoring and early warning, improving our capacity for data-driven decision-making.

Third, we will focus on standardized management to improve the timeliness of assessment and early warning. We'll enhance systems for infectious disease monitoring, risk assessment, early warning management and information disclosure. This will refine mechanisms for interdepartmental information sharing and consultation, enhance collaboration between hospitals and disease control institutions, and ensure a smooth transition from normal to emergency states. We'll promptly issue health risk alerts, warning bulletins and early warning recommendations in accordance with the law. By strengthening coordination between epidemic prevention, control and emergency response, we aim to effectively prevent and mitigate epidemic risks. Thank you.

Farmers' Daily:

In recent years, the NHC has prioritized the development of closely integrated medical and health consortia at the county level. This approach aims to integrate and connect various medical and health institutions across multiple levels within counties. What tangible benefits does this bring to residents? How exactly are these medical and health institutions being integrated and connected? Thank you.

Lei Haichao:

Thank you for your questions. I will answer them. The comprehensive advancement of closely integrated county-level medical consortia is a decision and arrangement by the CPC Central Committee and State Council. We have also carried out pilot programs in this area for several years. The purpose of promoting tightly knit county-level medical consortia is to build connections between medical and health institutions at different levels, ensuring the free flow of information and personnel. Additionally, we aim to create an organically integrated management structure. This allows resources and management expertise from higher-level health institutions to support and promote the development of medical and health institutions at the grassroots level. Ultimately, our goal is to enable people to conveniently access higher-quality medical and health services in their local communities.

In 2019, we launched a pilot program for building closely integrated medical and health consortia, accumulating several years of experience. After careful analysis and assessment, we decided to promote this initiative, which benefits people's livelihoods, into a unified national action. Consequently, at the end of last year, 10 departments, including the NHC, jointly issued a document to comprehensively advance the construction of these consortia. The work has also been highly valued by local governments and has been advanced at a fast pace. I'm pleased to report that by the end of August this year, the number of closely integrated medical and health consortia reached 2,171. This progress aligns with our expectations, and we anticipate achieving our projected target ahead of schedule, providing more convenience to the public. We've also prioritized the application of information technology in promoting these consortia. During our investigations and research, we found many areas have adopted a system where examinations are conducted at the grassroots level, and diagnoses are made at higher-level facilities, with results mutually recognized. This approach improves and better guarantees diagnosis at the grassroots level. We will continue to advance this popular initiative.

Here, I want to share with you that 90.9% of counties have achieved full coverage in dispatching medical personnel from county-level hospitals to township-level health centers. This means nearly 91% of counties have sent staff from county-level units to townships for extended stays. According to our requirements, medical personnel dispatched to township-level health centers should stay for at least six months and rotate regularly. This ensures township-level health centers have sufficient capable professionals to serve the public. Additionally, methods such as touring medical services and telemedicine, which I mentioned earlier, are widely used at the county level and are popular among residents. Our monitoring shows that the "examination at the grassroots level, diagnosis at a higher level" approach is now applied in two-thirds of township-level health centers. After several years of exploration, we've developed an effective path and implementation measures in this field. According to our work plan, by the end of next year, more than 90% of counties will establish medical and health consortia at the county level, with improved integration. This means better coordination between higher-level and lower-level institutions, more integrated information systems, and more frequent personnel exchanges, continuously improving service capacity and quality at the grassroots level.

That's all from me. Thank you.

Hong Kong Bauhinia Magazine:  

The complementary and coordinated development of TCM and Western medicine is a notable advantage in China's health care system. What achievements have been made in promoting their coordinated development to better serve public health? Thank you.

Yu Yanhong:

Thank you for this excellent question. Both TCM and Western medicine have their unique strengths. When facing challenging diseases affecting public health, both serve as powerful tools for treatment and prevention. The integration of TCM and Western medicine during the COVID-19 pandemic has deepened our understanding of their combined potential. The NHC and the National Administration of Traditional Chinese Medicine consistently emphasize the importance of both approaches. We focus on continuously highlighting and amplifying the significant advantage of the complementary and coordinated development of TCM and Western medicine in advancing the Healthy China Initiative.. We've implemented a project to promote their coordination, launching a series of initiatives in areas such as mechanism development, model innovation, and talent support. These combined efforts have yielded significant results.

On the one hand, we've continuously strengthened the coordination system and mechanisms between TCM and Western medicine. As part of institutional reforms, the NATCM established a dedicated department for integrating TCM, Western medicine and ethnic minority medicine, coordinating these efforts at the national level. Together with the NHC, we have made special arrangements for TCM in general hospitals, launching actions to enhance the collaborative development of Chinese and Western medicine in these facilities. This initiative encourages general hospitals, specialized hospitals, and maternal and child health institutions to develop an integration model characterized by established mechanisms, dedicated teams, effective measures and tangible outcomes. Currently, many general hospitals have established mechanisms for the coordinated development of traditional Chinese and Western medicine and multidisciplinary diagnosis and treatment systems. Focusing on key diseases such as cancer, cardiovascular and cerebrovascular diseases, infectious diseases, and pediatric diseases, Chinese and Western medical practitioners conduct joint rounds and consultations, collaboratively formulating diagnosis and treatment plans. This approach has significantly improved clinical efficacy.

On the other hand, the collaborative service capabilities of TCM and Western medicine continue to improve. More than 90% of public general hospitals at Grade II and above have established TCM clinical departments. For the first time nationwide, 62 "flagship" hospitals and 559 "flagship" departments for TCM and Western medicine collaboration have been selected, creating model examples of this integration. Many well-known hospitals, such as Peking Union Medical College Hospital, West China Hospital of Sichuan University, and Peking University First Hospital, are leading and promoting this work. Focusing on major and difficult diseases that seriously affect people's health, such as severe pancreatitis, chronic stable coronary heart disease, and cancer, efforts have been made to tackle these issues through collaboration between TCM and Western medicine. The combined treatment of TCM and Western medicine has significantly improved clinical efficacy. To date, we have promoted the release of the first batch of 52 clinical diagnosis and treatment plans integrating TCM and Western medicine, and over 150 new clinical cooperation projects focusing on major and difficult diseases have been selected. We are actively exploring new ideas, methods, and models that integrate TCM and Western medicine for disease prevention and treatment. This allows us to offer the public more effective treatment plans that combine the advantages of both approaches.

At the same time, we're strengthening the role of professionals trained in both TCM and Western medicine. In collaboration with the Ministry of Education, we're piloting a nine-year integrated TCM and Western medicine education program and introducing mandatory TCM courses in undergraduate clinical medicine curricula. We're actively promoting TCM education for Western medicine practitioners. At the national level, we've launched high-level training initiatives, including the New Era Advanced Talent Program for Western medicine practitioners learning TCM. At the provincial level, we are also conducting specialized TCM training programs for Western medicine practitioners. To date, over 220,000 individuals have participated in these programs, significantly expanding our pool of integrated medicine talent. A notable example is Tu Youyou, the 2015 Nobel Laureate in Physiology or Medicine, who was an outstanding representative of China's first class of Western-trained doctors studying TCM.

CCTV:

Deepening the reform of public hospitals with a focus on public welfare is a top priority among the various tasks of health care reform. How should we interpret the concept of public welfare in this context? How can we ensure public welfare while also motivating medical staff? Thank you.

Lei Haichao:

Thank you for your question. I'll address this. Public medical institutions form the backbone of China's health care system. They handle over 80% of the country's annual outpatient and emergency visits. Their role is even more prominent in inpatient services. As a result, the public trusts and prefers these institutions for medical treatment. Therefore, ensuring and enhancing the public welfare aspect of these institutions is a matter of concern for the whole society and a key task of medical reform. The third plenary session of the 20th CPC Central Committee has provided clear directives on safeguarding and improving the public welfare role of these institutions. We can understand and implement these directives from four perspectives.

First, the third plenary session of the 20th CPC Central Committee emphasized adhering to a public welfare orientation. As the primary providers of health care services, public medical institutions must always prioritize public welfare. This focus on public welfare should be prominent in hospital management, development strategies, macro-level planning, and government investment.

Second, the third plenary session of the 20th CPC Central Committee explicitly called for establishing a dynamic adjustment mechanism for public hospital staffing. This involves adjusting the size of public medical institutions and ensuring adequate staffing based on changes in local population demographics, public health care needs, and available financial resources. We will formulate corresponding dynamic adjustment standards. Local governments should implement these standards to adjust public hospital staffing accordingly. This approach aims to ensure that qualified, capable, and ethically sound medical professionals receive job security, allowing them to focus on providing health care services to the public with peace of mind.

Third, the third plenary session of the 20th CPC Central Committee clearly proposed establishing a fee mechanism led by medical services. Reforming medical service pricing is a crucial part of public hospital reform. Currently, the main tasks of price reform include incorporating clinically proven and professionally recognized services and technologies into the scope of price management and medical insurance coverage. This should be done in a timely manner and in accordance with changes in medical insurance fund contributions, cost savings from centralized procurement of drugs and medical consumables, and new trends in medical technology. Additionally, necessary adjustments should be made to medical service prices that have long been undervalued, within the limits of what medical insurance funds and the public can afford. At the same time, the reform aims to establish and improve a diversified payment system within medical insurance that supports technological development while controlling unreasonable cost increases.

The fourth aspect involves improving the remuneration system in public hospitals, which is also a reform task designated at the third plenary session of the 20th CPC Central Committee. A reform to the remuneration system can be briefly summarized in two sentences. The first sentence is to implement the "two allowances" policy. The second is to adequately adjust "three structures." "Two allowances" refers to the policy that relevant departments, when verifying the performance-based wages of personnel in public medical institutions, should approve the total amount and make dynamic adjustments to synchronize the performance-based wages of medical staff with economic and social development as well as changes in price levels, reflecting the labor value of doctors and encouraging high rewards for excellent work as well as more pay for more work. To adequately adjust "three structures" refers to the following: first, public medical institutions should regard serving the public interest as their ultimate objective, gradually narrowing the gap in performance-based wages between public medical institutions of different levels. Second, adhering to the requirement of serving the public interest, they should gradually narrow the gap in pay packages among different specialties and departments within medical institutions, so as to improve the income of medical professionals in relatively weak specialties such as pediatrics, pathology, mental health, anesthesia, general practice and obstetrics. Last, in accordance with the requirement of serving the public interest, the proportion of fixed income in the performance-based wages of medical staff should be gradually increased, while the proportion of flexible income bonuses should be appropriately regulated, so as to better align with the positioning of serving the public interest as well as to encourage medical and health professionals to improve skills and provide better services, rather than simply linking personal income with revenue-generating capabilities.

Finally, I would like to emphasize that to ensure that public hospitals better serve the public interest it is also necessary to strengthen comprehensive supervision and strictly control the unreasonable growth of medical expenses, so as to ensure that the people have payment capabilities and that medical insurance funds are more stable, secure and sustainable. The NHC has established systems such as hospital inspections, prescription evaluations, and syndrome differentiation and treatment with traditional Chinese medicine. In addition, we must strengthen the application of information technology to monitor and analyze whether the diagnosis and treatment services comply with relevant standards and norms, guiding medical services to be more quality-oriented, efficient and resource- and cost-saving.

The above measures are the working ideas and initial considerations formed in accordance with the decisions and deployments of the third plenary session of the 20th CPC Central Committee. We will further explore, improve and promote these measures with our future work, so as to ensure that public hospitals better serve the public interest, motivate and maintain the dedication of personnel as well as advance a virtuous cycle and interaction with economic and social development. Thank you.

China Youth Daily:

Chronic diseases have become one of the major issues affecting national health, and their management is a long-term and complex process. Could you please elaborate on the key work that the NHC has carried out in terms of comprehensive prevention and control of chronic diseases? Thank you.

Lei Haichao:

I'll invite Mr. Yu Xuejun to answer this question.

Yu Xuejun:

Thank you for your question and your concern about chronic diseases. Chronic diseases, abbreviated as non-communicable diseases, are in contrast to infectious diseases. First and foremost, I would like to stress that both chronic and infectious diseases are of great importance and pose long-term public health challenges for us. Therefore, while focusing on infectious disease prevention and control, we must also attach importance to the prevention and control of chronic diseases without any letup. As our country's population ages and lifestyles change, the incidence of chronic diseases such as cardiovascular and cerebrovascular diseases and cancers are generally on the rise. Chronic diseases account for over 80% of total deaths. Due to their high incidence, long duration, low effective control rate and heavy economic burden, they have become major issues that threaten people's health and impact economic and social development, necessitating the need for comprehensive prevention and control measures.

The NHC gives priority to prevention, strengthens the integration of medical care and prevention, and promotes the establishment of a comprehensive health management service system for chronic diseases that covers the entire population, the whole lifecycle and the whole process. We have included the prevention and treatment of cardiovascular and cerebrovascular diseases, cancers, chronic respiratory diseases as well as diabetes in the overall plan of the Healthy China Initiative as major special projects. Together with more than 10 departments, we have issued implementation plans to promote the implementation of the Medium- to Long-Term Plan on the Prevention and Treatment of Chronic Diseases (2017-2025), as well as have established a comprehensive prevention and control system for chronic diseases that encompasses multiple diseases under joint prevention and management. Over 97% of counties and districts have launched healthy lifestyle initiatives centered on "reducing salt, oil and sugar intake, promoting oral health, maintaining a healthy weight and ensuring strong bones." As of 2023, a total of 485 national comprehensive prevention and control demonstration zones for chronic diseases have been established nationwide, covering 17% of counties and districts. At the same time, we are focusing on early screening and intervention for major chronic diseases, gradually establishing a comprehensive management service model that covers prevention, screening, diagnosis, treatment, and rehabilitation. Therefore, the prevention and treatment of chronic diseases have been initiated at earlier stages. Currently, the premature death rate from major chronic diseases in our country has decreased from 18.5% in 2015 to 15% in 2023.

That's all I have to say, thank you.

Red Star News:

At the end of last year, the General Office of the State Council issued guidelines to promote the high-quality development of disease prevention and control. What progress has been made in the past six months? Going forward, what plans and considerations does the National Disease Control and Prevention Administration (NDCPA) have for promoting high-quality development of disease prevention and control? Thank you.

Lei Haichao:

I'll invite Mr. Wang Hesheng to answer this question.

Wang Hesheng:

Thank you for the question. The CPC Central Committee and the State Council attach great importance to disease prevention and control, and have made major strategic plans to reform and improve the disease control system. The NDCPA has resolutely implemented these plans and, together with relevant departments, has guided and promoted the implementation of the guidelines in various regions, achieving positive outcomes, particularly in the three aspects of system reshaping, mechanism innovation and capacity enhancement.

First, initial success has been achieved in system reshaping. Disease control and prevention bureaus have been established at all levels, and national and provincial centers for disease control and prevention have incorporated the Academy of Preventive Medicine. Two national key laboratories and nine key laboratories of the commission have been restructured and established, and 15 national regional public health centers have been designed and constructed, basically forming a fully functional disease control system with effective coordination at different levels. The strength of the professional team has also been significantly boosted. By the end of 2023, the number of professionals in disease control and supervision nationwide reached 305,000, an increase of 14% from 2019. The proportion of personnel with bachelor's degrees or above in the disease control professional team reached 61.7%, an increase of 15.6 percentage points from 2019. The proportion of senior professional and technical positions at the Chinese Center for Disease Control and Prevention (China CDC) increased to 55%, with the proportion at the 24 provincial centers reaching more than 40%.

Second, working mechanisms have been constantly improved through innovation. We have optimized the joint epidemic prevention and control mechanism, applied the joint mechanism previously used during the COVID-19 pandemic to the prevention and control of emerging and major infectious diseases, and continuously adjusted and improved the organizational structure and operational mode of the mechanism. Recently, we signed a cooperation agreement with the Hong Kong and Macao special administrative regions on the public health emergency response mechanism for infectious diseases. We have also developed new mechanisms for enhancing coordination between disease prevention and control agencies and hospitals, and formulated a list of 33 responsibilities for medical institutions in infectious disease prevention and control, ensuring that they fully shoulder their share of responsibilities in this regard. The pilot program for the disease control supervisor system in medical institutions has been expanded to all provinces. We have carried out a series of pilot schemes that focus on the coordination between disease prevention and control agencies and hospitals, the integration between disease prevention and control agencies and hospitals, as well as the prescription rights of public health physicians. Our efforts aim to guide all localities to take the initiative in advancing further collaboration between disease prevention and control agencies and hospitals so that they form synergy. We have also intensified the mechanism for talent cultivation. We have implemented support programs to nurture high-end public health professionals, selecting a group of leading experts at the national level every year. The chief expert system has been implemented in the China CDC and 15 provincial CDCs, with individuals appointed to lead various public health fields. We have also worked with the Ministry of Education to set up high-level public health schools at 18 universities across the country.

Third, core capacity has been continuously enhanced. This year, we carried out a campaign in the medical and healthcare sector to enhance professional core capabilities. In terms of monitoring and early warning, we have applied a national intelligent monitoring and early warning software for infectious diseases in all secondary and tertiary public medical institutions, in a bid to facilitate information communication between disease prevention and control agencies and hospitals. In terms of epidemiological investigation, more than 4,000 on-site epidemiological investigation professionals have been trained with the funds from the central budget. We organized a national vocational skills competition for on-site epidemiological investigation, attracting more than 30,000 participants. In terms of testing and inspection, we have established an advanced pathogen detection system, which can confirm more than 300 known pathogens within 24 hours and effectively identify emerging pathogens within 60 hours. At present, biosafety level 3 laboratories have been built in 23 provinces, and all the provincial-level and 90% of municipal-level CDCs are able to detect and isolate viruses. In terms of emergency response, the number of national prevention and control teams for sudden and acute infectious diseases is expected to reach 25, and grassroots emergency response groups have been set up in all cities and counties across the country.

For the next step, we will earnestly implement the deployments outlined at the 20th CPC National Congress and the third plenary session of the 20th CPC Central Committee, assess our work done during the 14th Five-Year Plan period (2021-25), and prepare to set the goals and tasks for the 15th Five-Year Plan (2026-30). We will continuously optimize strategies and measures for infectious disease prevention and control, and step up efforts to improve the scientific research system for infectious disease prevention and control and public health care, which applies to both regular cases and emergency responses. We will constantly strengthen core capabilities and advance the modernization of disease prevention and control work through high-quality development, in a bid to safeguard public health as well as economic and social development. Thank you.

Xing Huina:

One last question, please.

China Daily:

In China, there are not only big cities with abundant medical resources but also remote and mountainous areas. How do you guide and support the flow of medical resources to grassroots and remote areas so as to accelerate the regional balance and homogenization of medical services? Thank you.

Lei Haichao:

Thanks for your question. I will take this one. Shortage and uneven distribution of high-quality medical resources are common problems faced by all countries. The Chinese government has paid high attention to these issues. Since the 18th CPC National Congress, we have implemented a series of effective measures that are mainly focused on the following three aspects.

First, we have increased the scale and volume of high-quality medical resources. In recent years, we have expanded their volume in terms of national medical centers, regional medical centers, and medical centers. We have set up 13 national medical centers specializing in different fields of medicine, 125 national-level regional medical centers and 114 provincial-level regional medical centers in the country. As these medical centers are put into use, China's medical resources and service capacity have achieved leapfrog development and become more balanced among eastern, central and western regions.

Second, we have reallocated more high-quality medical resources to grassroots areas. We have made a forward-looking layout for national medical resources so as to better support grassroots hospitals and improve their technological services and management through joint efforts. In the past 20 years, pairing-off assistance has been carried out between tertiary hospitals and county-level hospitals, and thousands of doctors have been encouraged to participate in rural health projects. By doing so, high-quality medical resources have been gradually brought to rural residents. We have sent teams of medical personnel to provide assistance to seriously impoverished counties, significantly improving the local medical service capacity. We have also organized nationwide medical-aid tours. On Sept. 11, all 44 hospitals managed by the NHC began this year's medical-aid tours, marking the first full participation of hospitals managed by the commission. In addition, we have required national medical centers and national-level regional medical centers to make medical-aid tours in the future. In recent years, we have also been inclined to establish national key clinical specialties in cities that are not provincial capitals. According to statistics, 40% of newly-built projects with key clinical specialties in the country have been located in non-provincial-capital cities, which also showcases our favorable policies for more balanced medical services.

Third, we have leveraged information technology to support our work. With 5G technology and other advanced information networks, medical services can be delivered across areas. For example, we have beefed up our efforts to establish internet hospitals. At present, 3,340 such hospitals across the country can provide more than 100 million online diagnoses and treatments each year, effectively complementing current medical services. We have also put emphasis on private hospitals, guiding their development in accordance with the requirements proposed by the 20th CPC National Congress and the third plenary session of the 20th CPC Central Committee. We aim to regulate the medical services of private hospitals so that they will become an effective supplement to public hospitals.

Looking forward, we will focus on institutional and mechanism reform and propel more diverse and tiered medical services in line with the decisions and deployments made by the third plenary session of the 20th CPC Central Committee. Journalists might have learned a few days ago that China plans to allow the establishment of wholly foreign-owned hospitals in nine cities and regions. By doing so, the business environment in these nine pilot areas will be improved and local residents will have more options for medical treatment. Thanks to these combined measures, the diversified and multiple medical service needs of residents can be well met and satisfied. Thank you.

Xing Huina:

That's all for today's briefing. Thanks to all the speakers and journalists. Goodbye, everyone.

Translated and edited by Zhang Rui, Wang Wei, Guo Yiming, Zhou Jing, Liu Sitong, Wang Qian, Xu Kailin, Li Huiru, Yan Xiaoqing, Ma Yujia, Wang Ziteng, Huang Shan, Lin Liyao, Rochelle Beiersdorfer, 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. Zhang Ke, commissioner of the National Healthcare Security Administration (NHSA)

Ms. Li Tao, deputy commissioner of the NHSA

Mr. Yan Qinghui, deputy commissioner of the NHSA

Chairperson:

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

Date:

Sept. 10, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO) as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Zhang Ke, commissioner of the National Healthcare Security Administration (NHSA), to brief you on relevant developments and answer your questions. Ms. Li Tao and Mr. Yan Qinghui, both deputy commissioners of the NHSA, are also present today.

Now, I'll invite Mr. Zhang to give his introduction.

Zhang Ke:

Ladies and gentlemen, friends from the media, good morning. First, I would like to thank you all for your long-standing interest in, understanding and support for the development of the health care sector.

General Secretary Xi Jinping profoundly stated that the fundamental goal of establishing China's basic medical insurance system is to relieve people of worries about diseases and health care services. Since the 20th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has adhered to a people-centered development philosophy. It has attached great importance to ensuring and improving people's livelihoods, continuously strengthened overall leadership and planning of medical security work, and established the world's largest medical security network. The NHSA has resolutely implemented the major decisions and plans of the CPC Central Committee. We have vigorously promoted the experience of medical reform in the city of Sanming, strengthened the top-level design of the medical insurance system, and promoted the coordinated development and governance of medical services, medical insurance, and pharmaceuticals. We have expanded medical insurance coverage, raised its protection standards, improved our management and services, so as to continuously enhance people's sense of gain.

We remain committed to institutional development, as well as regulating and improving the medical insurance system. We have established a robust three-tiered basic medical security system encompassing basic medical insurance, major disease insurance, and medical assistance. We've formulated a list of medical insurance benefits, unified the national medical insurance drug catalog, and promoted standardized medical insurance system, policies and coverage nationwide. We've steadily enhanced the capacity for financing basic medical insurance, improved long-term mechanisms for medical insurance coverage, with coverage of basic medical insurance reaching 95% of the population, maintaining a stable scale of fund revenue and expenditure. We have done everything within our capacity to scientifically determine the coverage and standards of medical insurance schemes. The reimbursement rates for hospitalization expenses covered by related policies remain at around 80% for urban employees' medical insurance and 70% for rural and non-working urban residents' medical insurance.

We continue to prioritize people's needs by improving the quality of health care protections. We have consolidated and improved inpatient coverage, ensured outpatient care for chronic and special diseases. Outpatient expenditures are covered by funds under unified management in the basic medical insurance system for urban employees. A mechanism has been established to guarantee outpatient medicines for treating high blood pressure and diabetes for rural and non-working urban residents. We've aligned basic medical insurance schemes for rural residents and non-working urban residents, integrated maternity insurance and basic medical insurance for urban employees, enhanced the general support capacity of unified accounts, and improved the level of benefits and security for insured groups. We have sped up the completion of the medical insurance and medical assistance system against fatal and serious diseases, and establishedlong-term mechanisms to prevent people from falling back into poverty due to illness. To address the aging population, we've steadily advanced pilot programs on long-term care insurance, which cover 49 cities and 180 million people. We have also implemented measures to boost the birth rate. Already, 20 provinces and the Xinjiang Production and Construction Corps have included assisted reproductive technologies (ART), such as in vitro fertilization (IVF), in medical insurance coverage.

We remain committed to deepening reforms to enhance public health and welfare. We have institutionalized and regularized bulk government procurement of medicines and medical consumables. We have organized nine rounds of national centralized procurement of medicines and four rounds of national centralized procurement for high-value medical consumables. At the same time, we have guided and promoted centralized procurement at the local government level for drugs not included in national centralized procurement. We have deepened medical service reforms, and established a dynamic adjustment mechanism to better reflect medical workers' contributions. We have innovated catalog access negotiations, resulting in 3,088 medicines now listed. This encompasses commonly used drugs and those for special and rare diseases. We continue to include newly developed and effective drugs that were previously unaffordable in the catalog. We have deepened reform on medical insurance payment models, encouraging medical institutions to optimize their revenue structures and regulate diagnosis and treatment practices.

We're committed to leveraging digital and intelligent technologies to enhance operational management. We have built a unified national medical insurance information platform to achieve the standardized management of medical insurance data. We have carried out regulation of drug prices listed for public reviews, intensified the monitoring and handling of pharmaceutical price risks, and promoted the monitoring and comparison of drug prices in designated pharmacies. As a result, drug prices have become more transparent, making it more convenient for the public to make choices. We have intensified the supervision of medical insurance funds through ongoing unannounced inspections and targeted actions. We've stepped up the application of intelligent monitoring and big data, promoted the use of drug traceability codes, and established and improved whistleblowing reward mechanisms. We publicly exposed representative cases involving legal violations, standardized the use of medical insurance funds, and protected the money that people rely on to pay their medical bills.

We adhere to a service-oriented approach to optimize medical insurance public services. We have improved the management and service system, included eligible village clinics in the medical insurance settlement network, and provided people with convenient access to medical insurance services. We have developed an online medical insurance service network and mobile app, promoted medical insurance codes and mobile payments, and facilitated online and mobile filing. We've strengthened the direct settlement of medical expenses incurred outside of a patient's home province, enabling cross-provincial direct settlement at the county level for general outpatient expenses and five outpatient chronic and special diseases such as hypertension and diabetes. We are gradually expanding the scope of diseases eligible for cross-provincial direct settlement. We have bolstered one-stop government services in relation to medical insurance and optimized the procedures for medical insurance access, transfer and renewal, benefit claims, and settlement of medical expenses. These improvements make it easier for people seeking medical treatment and purchasing medications.

On the new journey in the new era, the NHSA will thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. We will unswervingly implement the important instructions and directives of General Secretary Xi Jinping regarding the health care sector, striving to promote the high-quality development of medical insurance. These efforts aim to contribute to building a great country and achieving national rejuvenation.

That's all for my introduction. Thank you.

Xing Huina:

Thank you, Mr. Zhang. The floor is now open for questions. Please raise your hand if you have a question. Please identify the media outlet you represent before raising your question.

Economic Daily:

We know that the third plenary session of the 20th CPC Central Committee proposed improving the social security system. The public is keenly interested in the development of the medical security system. We have noticed that the NHSA recently proposed to improve the "1+3+N" multi-level medical security system. Could you brief us on the relevant work arrangements? Thank you.

Zhang Ke:

I will answer the question. Health care coverage is a crucial aspect of social security for the people, and they have high expectations for its continuous improvement and development. Our basic medical security system primarily covers three aspects. First is urban employee medical insurance and resident medical insurance that we are all very familiar with, which is included in basic medical insurance. Second, we have medical assistance for people in challenging circumstances. In 2023, we provided assistance to 80.2 million people facing difficulties. People are concerned about how those who have severe diseases but are extremely poor or have no income can apply for medical insurance. You can rest assured that our country cares much about their insurance coverage, providing either full or partial subsidies to help them enroll in medical insurance. Third, we have major disease insurance, a less familiar term. Many friends have asked me whether they should purchase major disease insurance and where to purchase it? Actually, people covered by resident medical insurance do not need to buy major disease insurance, which is included in the basic medical insurance framework. By enrolling in medical insurance for rural and non-working urban residents, one automatically gains access to major disease insurance. The reason people sometimes don't notice it is because we now have a one-stop settlement system. Once the personal expenditure exceeds a certain amount during medical treatment, especially hospitalization, the major disease insurance will be triggered to save more out-of-pocket costs. If we examine hospital discharge settlement slips, we will find the specific amount covered by major disease insurance. These are the three layers of protection within our basic medical security system.

However, the three layers of protection still fall short of meeting the people's growing health care needs, manifesting in three key aspects. First, due to funding constraints, many expensive drugs are difficult to cover under basic medical insurance. This limitation conflicts with the unlimited nature of people's needs. Second, the basic medical insurance system is relatively uniform. This uniformity is in conflict with the varying levels of economic and social development across the country, as well as differences in disease patterns across different regions. Third, the rules and catalog of basic insurance are quite fixed and are not able to be adjusted frequently. It's difficult to include every new drug or technology as soon as it's developed. This also conflicts with fast development and changes in pharmaceuticals, medical devices and technologies. 

How to solve these contradictions? According to the deployment of the CPC Central Committee and the State Council, we have been tasked with building a multi-level medical security system, which in recent years has been clearly required by the CPC Central Committee. In addition to basic medical insurance, what else does this multi-level system include? Primarily, it includes the following aspects: Huiminbao, an insurance with government support; other commercial health insurances, charities, mutual aid through trade unions as well as other funds. The participation of these forces not only meets people's diverse and changing health care security needs but also complements the basic medical insurance system. This composes the relationship of "3" and "N," which means three-tiered protection of basic medical security system and various supplementary sources. 

The "1" in the system refers to the NHSA's promotion of digital and intelligent technologies to provide a basic information platform, ensuring the effective operation of a multi-level medical security system. The platform features the following aspects: "one person, one file," meaning that everyone has a personal health record; "one drug, one code," meaning that every medicine box will have a tracking code, enabling future traceability of each medicine box to ensure that the public has access to safe drugs. It also contains "one claim, one settlement" and "one invoice, one verification." Commercial insurance companies and philanthropic institutions are concerned about whether they can find right recipients and get authentic invoices. The NHSA through big data tech services can provide these necessary conditions for participating organizations in this multi-level medical scheme. On the basis of digitalization, we can cooperate and strive to effectively meet people's increasing needs for health care security. 

That's all for my response to the question about building a multi-level medical security system based on "1" and coordinated by "3+N."

Farmers' Daily:

At the beginning of this year, the NHSA released major tasks concerning the one-stop government services in medical insurance. Can you tell us about the current progress made with these tasks? Thank you. 

Zhang Ke:

Let us invite Mr. Yan to answer the question. 

Yan Qinghui:

Thank you for your question. Since this year, the NHSA has implemented guiding principles from the State Council's relevant documents and has emphasized the integration of one-stop government services principle in all aspects of health care security work, effectively handling every matter to provide heartwarming services for enterprises and residents. Currently, the time for handling major tasks has been shortened with streamlined procedures and flexible forms. The insured population, pharmaceutical companies and medical institutions are all experiencing an enhanced sense of fulfillment from medical insurance services.

On the one hand, insured residents are experiencing improved services. Newborns can now be enrolled in medical insurance immediately upon birth, rather than waiting for household registration. Previously, newborns' households had to be registered before newborns could be enrolled in medical insurance, and medical expenses had to be paid out-of-pocket and then reimbursed at medical insurance windows later. Now, through data sharing, local medical departments can enroll newborns in the medical insurance system with just a birth certificate. The average time needed for enrollment and payment has been reduced to 6.4 working days from 28.7 working days at the beginning of the year. Medical expenses can now be directly reimbursed upon newborns' discharge from the hospital. Individual medical insurance accounts for urban employees have changed from individual ownership to family sharing. Through an online application, employees can add their parents, children, spouses and other close relatives to their accounts for shared use of their personal account funds. Currently, local governments are advancing work in this regard. From January to July of this year, the amount of individual medical insurance accounts shared among family members reached 22.7 billion yuan. It is projected that by the end of this year, individual accounts will be able to be shared among family members within the provincial-level administrative area where insurance is registered, and efforts will be made next year to promote cross-provincial practice. Particularly, on-the-spot settlement of cross-provincial medical expenses of outpatient services now covers 10 kinds of chronic and special diseases from the previous five. Taking varying diseases across different regions into consideration and to better meet people's needs for convenient cross-region medical services, we have included five diseases, namely chronic obstructive pulmonary disease, viral hepatitis, coronary heart disease, rheumatoid arthritis and ankylosing spondylitis, on top of the previous five kinds of diseases. By the end of this year, every district and county across China is planned to have at least one medical institution capable of cross-provincial on-the-spot settlement of medical expenses for these new types of diseases. In addition, we have shortened the average claim period for employee maternity benefits to be within 10 working days.

Second, we have taken more solid measures in medical security to facilitate the development of the pharmaceutical industry. In order to effectively address the concerns of pharmaceutical companies on some time-consuming procedures, such as coding medicines and publishing online notifications of centrally procured drugs, we have canceled the public notification procedure during the medicine coding process, while accepting complaints and appeals on a regular basis, so as to reduce the turnaround time for coding medicines covered by medical insurance from one month to one week. We have guided localities to unify the tendering and procurement information systems as well as product information standards, formulating a standardized service directory. We have also streamlined the operational procedures for centrally procured medical products to go through online public notification, reducing the turnaround time for such applications to fewer than 15 working days. In order to relieve the financial burden on medical institutions, we have taken timely settlement of eligible medical expenses as a prerequisite while streamlining the whole process. As a result, more than 90% of regions under unified management nationwide have realized monthly settlement of medical bills. We have also continued to implement the pre-payment mechanism. Medical insurance funds are prepaid to designated medical institutions at the beginning of each year to facilitate their development, with appropriate preference given to institutions that ensure better implementation of medical insurance policies.

That is all from me. Thank you.

National Business Daily:

The third plenary session of the 20th CPC Central Committee proposed supporting coordinated development and management of medical services, medical insurance and pharmaceuticals, as well as further reform of medical insurance payment models. We noticed that the NHSA recently released a new version of the DRG/DIP classification plan. What measures will the administration take to implement these requirements and further enhance its capabilities for pursuing high-quality development? Thank you.

Zhang Ke:

Thank you. I would like to invite Ms. Li to answer this question.

Li Tao:

Thank you for your question. The NHSA has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, and continued to reform medical insurance payment models. In recent years, in terms of hospitalization expenses, we have accelerated the promotion of the DRG/DIP payment methods, which are diversified, compound medical insurance payment models featuring predominantly bundled payments based on disease types and diagnosis-related groups. By the end of 2023, the program had already covered all regions under unified management nationwide, generally bringing changes in four aspects. First, the medical insurance payment model has been switched from treatment-based to ones that are based on disease types and diagnosis-related groups. Second, medical insurance settlement has been switched from post-paid to pre-paid. Third, audit approach has been switched from manual audit to one that is based on the application of big data. Fourth, the provision of medical services has been switched from extensive management to precise management. We have fully implemented management mechanisms such as global budget, evaluation and oversight, as well as allowing medical institutions to keep the surplus of allocated funds and share the overspend. By doing so, we have standardized hospitals' diagnosis and treatment, ensured rational drug use, improved efficiency, and controlled costs, thereby alleviating the overall burden of medical treatment for insured patients, reducing time spent, as well as supporting coordinated development and management of medical services, medical insurance and pharmaceuticals.

Meanwhile, the reform of medical insurance payment models is a phased process in which progress is continuously being made. Recently, we have focused on problems reflected by both medical institutions and the public concerning imprecise classification plans and limited length of hospitalization. We released version 2.0 of the classification plan to further improve the technical standards and supporting policies for medical insurance payments based on disease types and diagnosis-related groups, with priorities on establishing new mechanisms concerning separate discussion for special cases, pre-payment, opinion soliciting and feedback, consultation and negotiation, as well as data working groups. Take separate discussion for special cases as an example. For special cases that involve extended hospitalization, high medical expenses and frequent use of new medicines, medical consumables and technologies, as well as complex, severe and critical symptoms, we have ensured that medical institutions can decide for themselves whether to apply for separate discussions. The medical insurance departments will then review those cases, and consult with medical institutions to adjust the charging standards, so as to better satisfy the demands of clinic treatment and medicine use, as well as relieve the burden of high medical expenses on patients.

Next, the NHSA will be more conscious of pressing concerns of the people, and continue to reform medical insurance payment models. First, we will establish a dynamic adjustment mechanism of DRG/DIP payment, which pays hospitalization expenses based on disease types and diagnosis-related groups. By doing so, we will better satisfy patients and clinical needs, as well as improve payment efficiency of medical insurance funds in a more scientific and precise manner. Second, we will improve the diversified, compound payment system, and explore payment models in line with the characteristics of medical services such as outpatient care and close-knit medical communities. Third, we will strengthen coordination and interplay with the National Health Commission and other relevant departments, as well as support coordinated governance of medical services, medical insurance and pharmaceuticals, so as to effectively protect the people's right to health. Thank you.

China Review News:

Recently, the NHSA has exposed many cases involving medical insurance fraud. How will health care security departments tighten oversight of medical insurance funds and protect the medical insurance coffers? Thank you.

Yan Qinghui:

Thank you for your question. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the supervision of medical insurance funds, and issued a series of decisions and plans. The third plenary session of the 20th CPC Central Committee also proposed tightening oversight of medical insurance funds. Since the start of this year, the NHSA has focused its efforts in three areas:

First, we have carried out strict inspections and severe crackdowns. We have stepped up efforts in conducting checks, including regular annual checks that are publicly announced, as well as special checks that start without prior notice or announcement, forgo any form of work report, escort or official hospitality, and go directly to the site at the community level. So far, we have inspected 432 designated medical institutions in 30 provinces. By the end of this year, the number is expected to exceed the total of the previous five years, greatly expanding inspection coverage. Localities have intensified efforts in cracking down on medical insurance fraud. A number of institutions suspected of wrongdoing were forced to terminate contracts and were transferred to the public security department. Compared with previous years, we have paid more attention this year to the role of big data technology. So far, we have identified and recovered nearly 60 million yuan of medical insurance funds through big-data screening involving "glycated hemoglobin." Another nearly 14 million yuan has been recovered through big data screening involving "diagnosis, treatments, examinations and drug use restricted to one gender." Through these efforts, we have realized a targeted crackdown based on the integration of on-site inspections and big data technology.

Second, we stay committed to maintaining a balance between leniency and strictness. We've effectively utilized self-examination and self-correction. Before the NHSA's unannounced inspections began, we organized designated medical institutions nationwide to conduct self-examinations and corrections based on a checklist of issues. This has encouraged medical institutions to more consciously regulate their services. To date, designated medical institutions at various levels have returned approximately 3 billion yuan in medical insurance funds. We've also effectively used guidance interviews, meeting with non-compliant pharmacies to urge rectification, and publicly reported these issues so that designated pharmacies could better regulate their practices. Additionally, we've leveraged public exposure. The NHSA's official WeChat account has exposed fraudulent practices by some medical institutions, including illegal and irregular activities such as excessive glycated hemoglobin testing and confusion of gender-specific examinations. This approach has strengthened the deterrent effect.

Third, we stay committed to addressing both symptoms and root causes. We're exploring a management system for medical insurance payment qualifications, using a points deduction system similar to that for driving licenses to hold responsible parties accountable. This aims to warn and educate medical personnel to consciously follow treatment norms and self-regulate their prescribing practices. We're improving the social supervision mechanism for medical insurance funds to better engage all sectors in fund supervision. Guidelines for this are currently open for public comment. We've also improved the whistleblower reward mechanism. Since 2022, a total of 2,422 rewards have been issued nationwide, totaling 3.68 million yuan, including rewards of over 100,000 yuan for three individuals and rewards of 50,000 to 100,000 yuan for eight individuals. We hope the media present here can help promote and guide society-wide participation in this reporting and reward system.

Moving forward, we will earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, and resolutely shoulder the political responsibility of safeguarding the security of medical insurance funds. We will never allow the public's money for medical treatment or life-saving care to become easy targets for exploitation. Thank you.

The Poster News APP:

Sanming city's medical reform program has emerged as an important model for national medical reform, providing valuable insights for further improvements. Could you please outline the main approaches and results of implementing Sanming's medical reform model in the medical insurance sector? Thank you.

Zhang Ke: 

Thank you for your question. I'll answer it. The NHSA has consistently implemented the CPC Central Committee and the State Council's decisions and plans on promoting Sanming's medical reform experience. We've vigorously advanced its institutional achievements, incorporating its pioneering, innovative and locally adaptive spirit into all aspects of medical insurance work. First, I'd like to report that the NHSA's establishment itself reflects the implementation of Sanming's reform experience. Previously, we didn't have an independent medical insurance bureau. It was due to Sanming's successful model that the CPC Central Committee decided to establish dedicated health care security administrations at all levels nationwide. We are now stepping up efforts to advance the following reforms.

First, we're conducting centralized bulk procurement for drugs and medical supplies in a solid way. Drawing on Sanming's approach to cutting off improper interests in the pharmaceutical supply chain, the NHSA has actively promoted reforms in drug bidding and procurement systems. We've established a routine, standardized process for centralized bulk procurement. Nationally, we've organized nine batches of drug procurement and four batches of high-value medical supplies procurement. Provinces are also conducting centralized procurement either independently or in alliances. This has significantly reduced prices of commonly used drugs and medical supplies, creating favorable conditions for supply-side reform in medical services.

Second, we're gradually improving the medical service pricing mechanism. Driven by centralized procurement, we've achieved a more profound and higher-quality structural reform of medical services. The savings from centralized procurement are first used to deliver reform benefits to the public. They also create space for new drugs and diagnostic procedures that reflect new quality productive forces to enter clinical application, and create conditions for adjusting medical service prices. Since 2021, we've guided provinces to dynamically adjust medical service prices, conducted pilot reforms, and explored new pricing mechanisms that align with economic and social development, better reflect the government's role, ensure full participation of medical institutions, and reasonably represent the value of technical services. Since the reform, prices for technical procedures like surgeries and traditional Chinese medicine have increased in an orderly manner, while prices for exams and tests like CT scans have decreased reasonably. The pace of price adjustments matches economic and social development.

Third, we're continuously promoting efficient payment mechanisms. We've implemented a three-year action plan for payment reform, fostering a multi-component payment system primarily based on diagnosis-related groups (DRG). By the end of 2023, over 90% of coordinated areas nationwide had adopted DRG/DIP payment reforms. Results from the 2022 national performance evaluations of tertiary public hospitals showed a 0.7 percentage point increase in the proportion of revenue from medical services compared to the previous year.

To further implement General Secretary Xi Jinping's important instructions on Sanming's medical reform model and to further promote these experiences in the national medical insurance sector, the NHSA issued a notice in May of this year to further promote Sanming's medical reform experience and continuously advance innovation in medical insurance work. It requires local authorities to deeply understand the essence of Sanming's reforms and calls for exploring original and differentiated reform measures suited to local conditions and deepening the establishment of a multi-tiered medical security system. Following the document's release, local authorities have actively implemented these requirements. Some provinces have further detailed their own implementation plans based on the national document. For example, Guangxi Zhuang autonomous region has specifically developed task lists, measure lists, and responsibility lists for promoting Sanming's medical reform experience and advancing innovation in medical insurance work.

Next, the NHSA will guide the health care security departments at all levels to resolutely apply the important instructions of General Secretary Xi Jinping, take actions in line with local conditions, deepen the health care insurance reform, continuously enhance policies, management and services, foster greater synergy between the medical insurance system, medical treatment and medications, and deepen their reform and development while continuously improving health care insurance management services, so as to give our people a growing sense of fulfillment, happiness and security. Thank you.

CCTV: 

As we know, China's unified national health care insurance platform has been built and put into use. How do the health care insurance departments use this platform to provide people with more convenient and efficient services? Thank you.

Zhang Ke:

I'd like to invite Ms. Li to answer this question.

Li Tao:

Thank you for your question. Health care insurance settlement has become more convenient thanks to the use of this platform, which has seen daily volume exceeding 28 million settlements and the average response time of the hospitalization expenses settlement system being only 0.8 second, effectively reducing the time people spend waiting in line at hospitals. The application of medical insurance code has also become more popular. A total of 1.17 billion people in China have activated the code, ushering in a "code era" for medical insurance services. People can use their cellphones or other electronic devices to activate medical insurance codes for medical services as well as reimbursement of medical costs without carrying physical cards.

The unified national health care insurance platform has made services even more optimized. We have continued to improve the NHSA's website and app and set up family accounts, providing the public with convenient health care insurance services online or in short distances. At present, the real-name users of the NHSA's website and app have exceeded 400 million, with the number of users of family accounts exceeding 158 million, greatly improving the efficiency of health care insurance transactions. We have started to provide inter-provincial health care insurance services, enabling people to register online for receiving medical services outside of home jurisdiction, sometimes even in different provinces, and realizing on-the-spot settlements of related medical bills. Other medical insurance services such as information changes, inquiries, and account transfers and continuations are also available across provinces.

The unified national health care insurance platform has provided stronger guarantees. The platform can unify and sort different policies in various regions and each coordination area, and meet the needs of medical insurance settlement and reimbursement in each coordination area. It can carry out intelligent approval of funds, using big data monitoring and analysis to conduct fund approval and reimbursement, and timely identify abnormal situations, so as to accurately crack down on fraudulent practices and insurance swindle. It can also promote the standardized coding of medicines and medical consumables, realize "bidding, procurement and settlement with one code," and enable mutual recognition, circulation and sharing of health care insurance data nationwide, so that information on national medical insurance settlements and prices of medicines and medical consumables can be interconnected and more transparent.

The unified national health care insurance platform has also brought our services closer to the public. We promoted the digitalization of the entire process of medical insurance handling services, saved people's legwork through data sharing, made more medical insurance related administrative services available online, built 15-minute health care insurance service circles, and enabled the public to enjoy high frequency services, such as health care insurance information inquiries and registration for receiving medical services outside of home jurisdiction, nearby in their towns (sub-districts), villages and communities. Thank you. 

Cover News:

The third plenary session of the 20th CPC Central Committee proposed improving the mechanism to support the development of innovative drugs and medical devices. How is the NHSA promoting the clinical application of new technologies, equipment and consumables? Thank you.

Yan Qinghui:

Thank you for your question. The NHSA has always supported the innovation of medical technology and promoted the high-quality development of health care services by improving its pricing policies. The NHSA has organized experts to speed up the compilation of national standards for medical service price items. In accordance with the principle of successively releasing in batches once each is mature, it has currently issued nine batches of approval guidelines for obstetrics, nursing and other areas, and standardized the medical service price items of related disciplines, highlighting a medical service-oriented approach. 

In view of the feedback from medical institutions and related enterprises hoping to speed up the price approvals of new technology, equipment and consumables, the NHSA has guided all provinces to further smooth channels for increasing medical service price items. Green channels have been opened and approvals have been accelerated for major innovation projects that optimize diagnostic and treatment plans for major diseases or fill gaps in the treatment of them. For improvement-oriented innovation projects, we refined the existing price items and met the reasonable charging demands in a balanced manner. Concerning other new price items, we accelerated the approval procedures, and fully met the reasonable charging needs of new technologies, equipment and consumables at different innovation levels. Since 2022, more than 1,000 new price items have been added each year in each province, and a number of high-quality innovative technologies, equipment and consumables have been put into clinical application, allowing innovative medical technologies to better benefit the people.

Next, the NHSA will earnestly implement the spirit of the third plenary session of the 20th CPC Central Committee, accelerate the compilation of national standards for medical service price items, continue to guide all provincial health care insurance departments to enhance the management of new items based on clinical value and innovation quality, speed up the handling of applications for adding items if they involve major innovative technologies such as medical equipment that gain priority review and approval by the National Medical Products Administration, as well as promote the development of new quality productive forces in the medical field. At the same time, we will also strengthen the quality control of innovation to prevent low-quality and fake innovation from disrupting the market environment or squeezing the medical insurance funds. We also hope that relevant enterprises will effectively improve their innovation quality, ensure proper disclosure of information on the prices of high-value medical consumables involved in new price items, and accept public supervision and peer review. Thank you.

The Paper:

In recent years, China's medical insurance system has expanded coverage to include more drugs for chronic and rare diseases. Notably, the inclusion of some extremely expensive drugs has significantly reduced the financial burden on patients. This process has also led to widely publicized negotiations for lower drug prices. Could you talk about the current state of the national medical insurance drug catalog? What are the plans for future developments in this area? Thank you.

Zhang Ke:

Thank you for your questions. Ms. Li will answer this question.

Li Tao:

Thank you for your question. The medical insurance drug catalog defines the range of medications eligible for reimbursement through medical insurance funds. It primarily includes Western medicines, Chinese patent medicines and prepared ready-for-use traditional Chinese medicines. Since its establishment, the NHSA has adhered to the principle of doing everything within our means and has continuously advanced reforms and improved management of the medical insurance drug catalog.

First, we've maintained dynamic adjustments, updating the catalog annually and promptly adding eligible new and improved drugs. This has significantly enhanced both the quantity and quality of medicines in the catalog. Over the past six years, we added 744 new medicines to the catalog. The number of Western medicines and Chinese patent medicines has increased from 2,535 in 2017 to 3,088 today. Simultaneously, the quality of medicines in the catalog has markedly improved. Many drugs based on new therapeutic mechanisms and new targeted drugs have been included, particularly in areas such as treatment of cancer, rare diseases and chronic conditions like hypertension and diabetes. This has achieved a closer match between the drugs covered by the national medical insurance system and clinical demand. 

We have also leveraged the advantages of group purchasing through the medical insurance system to guide new drug prices toward reasonable levels. By implementing strategic purchases based on the integrated drug needs of more than 1.3 billion insured individuals, we've improved the mechanism for medical insurance access negotiations. As a result, many previously expensive drugs have become more affordable, significantly reducing the medical burden on the public. In the six years since the establishment of the NHSA, negotiated drug prices have benefited 720 million insured patients. Factoring in price reductions from negotiations and reimbursements from the national medical insurance system, the financial burden on the public has been eased by over 700 billion yuan.

At the same time, we have also strengthened incentives and guidance to drive innovative development in the pharmaceutical industry. While maintaining a focus on basic needs, we have developed preferential policies for innovative drugs that cover the entire process from enterprise declaration to review, calculation and negotiation. In recent years, many innovative drugs have been included in the catalog the same year they received approval. This rapid inclusion in the medical insurance system, coupled with swift market launches and clinical applications, has enabled enterprises to obtain reasonable returns on innovation. This has created a virtuous cycle of reinvestment and further research and development. The medical insurance system has played an important role in driving the development of new quality productive forces in the pharmaceutical sector.

Moving forward, we will further improve the mechanism for adjusting the national medical insurance drug catalog. While adhering to the principle of meeting people's basic needs, we'll strive to include more, better and newer medicines in the catalog. At the same time, we will also focus on studying and refining the multi-tiered medical security system with Chinese characteristics. This includes broadening payment channels for innovative drugs, aiming to continually meet people's expectations for a better life.

That's all from me. Thank you.

Xing Huina:

You may continue to raise your hands for questions. We have time for two more reporters.

Chengdu.cn:

In recent years, centralized procurement of medicines and medical equipment has gradually gained recognition and acceptance. What achievements have been made in this area? Looking ahead, what adjustments are planned for centralized procurement to both lower medical costs for people and promote development in the biomedical industry? Thank you.

Yan Qinghui:

Thank you for your questions. The achievements of centralized procurement can be understood from three aspects.

First, it has lowered medical costs for people and improved the accessibility and quality of medicines. For example, the annual cost of antiviral medicines for hepatitis B, such as Entecavir and Tenofovir, was as high as 4,000 to 5,000 yuan before centralized procurement. After centralized procurement, the annual cost dropped to about 100 to 200 yuan. Clinical studies by medical institutions have shown that the rate of antiviral treatment and standard treatment for hepatitis B patients have increased significantly. Another example is insulin. Since the implementation of centralized procurement, its price has been greatly reduced. Consequently, the use of third-generation insulin, which has better clinical performance, has increased from 58% before centralized procurement to over 70% now.

Second, it has advanced the healthy and high-quality development of the pharmaceutical industry. Centralized procurement has reshaped the ecology of China's pharmaceutical industry and changed its development approach. Before centralized procurement, pharmaceutical enterprises focused on sales channel competition, paying less attention to quality and research and development. Centralized procurement provides a platform for fair and transparent competition, allowing good products to quickly enter the market. Public inquiries into price regulation of thoracic aortic stents and other medical consumables show that price cuts for some pharmaceutical products mainly came from compressing circulation costs, with minimal impact on the actual revenue of production and R&D enterprises. Meanwhile, the expenses saved can be redirected toward innovation, encouraging more enterprises to shift their focus to quality improvement, large-scale production and innovation.

Third, it has contributed to ensuring that public hospitals and medical institutions truly serve the public interest. Centralized procurement has eliminated hidden kickbacks in the distribution of medicines and consumables, leading to more standardized prescribing practices among medical staff. For example, the antibacterial use density (AUD), a key indicator measuring antibiotic consumption in areas prone to drug abuse, has declined from 37.8 in 2018 to 33.8 in 2022. Supporting policies for centralized procurement also focus on increasing legitimate and transparent income for medical institutions and staff. The policies require that medical insurance funds saved through centralized procurement are partially retained by medical institutions after assessment, with a considerable portion funding staff salary reforms. Some regions have also launched pilot projects for pharmaceutical service fees, recognizing the value of technical services provided by physicians and pharmacists. These measures have created conditions for high-quality development in medical institutions, enabling them to truly serve the public interest.

Next, the health care security authorities will vigorously expand the scope and improve the quality of centralized medicine procurement. We will continue to broaden the scope of centralized procurement, including launching new batches of national-organized drug and high-value medical consumables procurement. High-value medical consumables such as cochlear implants will be included in the procurement program. We will strengthen regional coordination, with a focus on guiding localities to advance centralized procurement for traditional Chinese medicines, TCM decoction pieces, and in vitro diagnostic reagents through alliances. We will proceed smoothly with follow-up procurement, enhance the refined management of procurement execution, and collaborate with relevant departments to reinforce management measures for the use, supply and monitoring of selected products. We will ensure that the selected products are promptly delivered to hospitals and prioritized for use. Additionally, we will take measures to hold selected enterprises accountable for ensuring product quality and supply. Thank you.

Xing Huina:

One last question, please.

Tide News:

The third plenary session of the 20th CPC Central Committee outlined the need to improve the fertility support policy system and incentive mechanisms, and to promote the development of a fertility-friendly society. Could you please share some of the successful experiences and practices of the health care security system in building a fertility-friendly society? And what new policies can we expect in the future? Thank you.

Zhang Ke:

Thank you for your questions. The population issue is crucial for the sustainable development of the Chinese nation. The NHSA is committed to implementing the strategic decisions and deployments of the CPC Central Committee and the State Council. We are focusing on effectively managing basic medical insurance and maternity insurance, actively exploring ways to improve policies and measures for maternity insurance, and aligning these efforts with relevant economic and social policies to jointly build a supportive policy system for childbearing.

On the one hand, we continue to leverage the protection function of maternity insurance. While maternity insurance is a separate insurance program, it is now implemented in conjunction with basic medical insurance for employees. This helps reduce the burden of maternity medical expenses for insured female employees, balance the labor costs of employers, and promote fair employment opportunities for women. Maternity insurance covers both employers and employees, ensuring coverage for maternity medical expenses and maternity allowance during the mandated maternity leave period. In recent years, the protective function of maternity insurance has continued to be fully utilized. In 2023, 249 million people were covered by maternity insurance nationwide, with the expenditure of the maternity insurance fund reaching 117.7 billion yuan. The average maternity allowance for insured female employees was 26,000 yuan. To clarify, the maternity allowance is essentially the wage during maternity leave. We often hear discussions about whether maternity leave wages should be paid by the husband's employer or the wife's employer. In fact, neither is correct, because maternity leave wages are paid by medical insurance, specifically maternity insurance. Currently, there are two methods for distributing maternity leave wages, or maternity allowances. One method is to pay it directly to the female employee, and the other is to pay it to the employee's company, which then distributes it to the employee. Recently, we have also consulted with the All-China Women's Federation (ACWF) to gather their input. Going forward, we will explore ways to distribute maternity allowances (maternity leave wages) more directly to female employees. Of course, we acknowledge that some regions have local regulations that require allowances to be paid to the company first, which then pays the employee. We will encourage relevant regions to conduct careful research on this matter.

On the other hand, in response to the national population strategy and requirements, we are implementing multiple measures to improve and enforce proactive fertility support policies. This primarily involves expanding and consolidating maternity insurance coverage. We support certain regions in exploring flexible approaches, allowing self-employed individuals to participate in maternity insurance alongside employee medical insurance. We have already guided provinces such as Jiangxi, Zhejiang and Guizhou as well as Tianjin to carry out these explorations across their regions, and the results have been very positive. At the same time, we are standardizing and regulating the pricing of assisted reproductive medical services and promoting the inclusion of assisted reproductive technology projects in medical insurance coverage. We are guiding provinces to consider factors such as the capacity of medical insurance funds and the regulations on assisted reproductive technologies, gradually including suitable assisted reproductive technology projects in the scope of medical insurance fund payments through proper procedures. This aims to help resolve the issues faced by families who wish to have children but are unable or unwilling to do so. Currently, 20 provinces, autonomous regions and municipalities, including Beijing, Guangxi, Inner Mongolia and Gansu, as well as the Xinjiang Production and Construction Corps, have included assisted reproductive medical services in medical insurance reimbursement. By the end of this year, more provinces are expected to include these services in medical insurance reimbursement. Recognizing that childbirth can be a significant physical and emotional experience, we have expanded our offerings to include pain management options, doula delivery and family companionship during labor. These services aim to meet the diverse needs of mothers and improve the childbirth experience. Additionally, we continue to enhance the administrative services for maternity insurance, requiring localities to implement the standards for minimum application materials, simplest procedures, shortest processing time and highest service quality. We have streamlined the process and clarified that enjoying maternity insurance benefits no longer requires providing unnecessary additional documents such as a birth permit, maternity service certificate or marriage certificate, to facilitate access to benefits for the insured.

Building on Mr. Yan's introduction, new mothers often have a significant concern right after childbirth. Some babies may need to be placed in an incubator or undergo surgery immediately after birth, while the mother has not yet left her hospital bed. How can we ensure that the newborns receive timely and effective treatment? We have implemented a seamless newborn enrollment process, which allows parents to use a cellphone from the bedside to enroll the baby in insurance and obtain reimbursement immediately. This ensures better coverage and protection for the baby's medical expenses and treatment. These measures create more favorable conditions and more convenient services for proactive fertility policies.

Next, we will continue to guide various regions in effectively managing maternity insurance and basic medical insurance. We will continue to improve and refine the maternity insurance system, enhance its protective functions, expand its coverage and steadily increase the level of coverage for insured individuals' maternity medical expenses. At the same time, we will strengthen coordination between departments, promote the establishment of a policy system for fertility support, and work together to foster long-term balanced population development. Thank you.

Xing Huina:

Due to time constraints, today's press conference is hereby concluded. Thank you to the three speakers and friends from the media. Goodbye.

Translated and edited by Yan Bin, Huang Shan, Liu Jianing, Li Xiao, Wang Qian, Mi Xingang, Wang Wei, Zhang Tingting, Liu Sitong, Xu Kailin, Wang Yanfang, Liu Caiyi, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Zhenjiang, vice minister of justice

Mr. Yang Xiangbin, director general of the Bureau of Public Legal Services Administration of the Ministry of Justice (MOJ)

Mr. Kong Xiangquan, deputy director general of the Administrative Law Enforcement Coordination and Supervision Bureau of the MOJ  

Mr. Jiang Shan, deputy director general of the Second Bureau of Legislation of the MOJ

Chairperson:

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

Date:

Sept. 6, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we are very pleased to have invited Mr. Wang Zhenjiang, vice minister of justice, to brief you on relevant developments and answer your questions. Also present today are Mr. Yang Xiangbin, director general of the Bureau of Public Legal Services Administration of the Ministry of Justice (MOJ); Mr. Kong Xiangquan, deputy director general of the Administrative Law Enforcement Coordination and Supervision Bureau of the MOJ; and Mr. Jiang Shan, deputy director general of the Second Bureau of Legislation of the MOJ.

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

Wang Zhenjiang:

Ladies and gentlemen, friends from the media, good morning. I am very pleased to attend today's press conference with my three colleagues and introduce the judicial administration work in promoting high-quality development.

First, I would like to express my heartfelt thanks for your long-term interest in, and support and assistance for the work of judicial administration.

High-quality development is the primary task of building a modern socialist country as well as our top priority in the new era. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the MOJ has thoroughly implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC) and the second and third plenary sessions of the 20th CPC Central Committee, practiced Xi Jinping Thought on the Rule of Law, and focused on promoting high-quality development. We have fully and faithfully applied the new development philosophy on all fronts and earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, in a bid to create a vibrant yet stable and orderly legal environment for high-quality development. Next, I will introduce five key aspects:

First, based on the new stage of development, we are striving to promote high-quality development through high-quality legislation. Since last year, focusing on promoting high-quality development, the MOJ has prioritized key areas and urgent needs, and formulated and revised administrative regulations such as the Regulations on Fair Competition Review and the Provisions of the State Council on the Declaration Standards for Concentration of Business Operators, in a bid to create a favorable environment for various business entities to fairly participate in market competition. We reviewed and amended draft laws such as the Accounting Law, the Statistics Law, the Value-Added Tax Law, and the Tariff Law, promoting the improvement of the macroeconomic governance system. We issued the Provisional Regulations on the Flight Management of Unmanned Civilian Aircraft and the Regulations on the Replenishment of Supplies for International Cruises at Ports of the People's Republic of China, promoting the development of emerging industries. We formulated and revised administrative regulations, such as the Ecological Protection Compensation Regulations, the Interim Regulations on the Management of Carbon Emission Trading, and the Regulations on Administration of Ozone Depleting Substances, improving the system and mechanisms that embody the concept that "lucid waters and lush mountains are invaluable assets."

These are some of the legislative items. In general, in 2023, the MOJ completed the review of 51 legislative initiatives, representing a 96.2% increase year on year. So far this year, we have reviewed 39 various legislative initiatives. Going forward, we will fully perform our duties in reviewing government legislation, continuously strengthen legislation in key areas, emerging fields and foreign-related fields, and provide stronger legal support for the development of the Party and the nation.

Second, we are cleaning up regulations and practices that hinder the construction of a unified national market and fair competition, striving to build a unified national market. According to the State Council's arrangements, the MOJ has completed a focused cleanup of all the 600-plus currently effective administrative regulations, and organized the amendment and repeal of some administrative regulations. This effort focuses on eliminating regulations and items that do not meet the requirements of high-quality development, are not conducive to optimizing the business environment and building a unified national market, or violate fair competition. At the same time, following the arrangements of the CPC Central Committee and the State Council, we are leading a comprehensive cleanup of laws, regulations and policies that involve unequal treatment of enterprises, with the aim of eliminating hidden barriers and reducing institutional transaction costs for enterprises.

Third, we are striving to better leverage the guiding, regulating and safeguarding roles of the rule of law, with the aim of advancing the development of a law-based and world-class business environment. As you know, the rule of law provides the best business environment. The MOJ has always prioritized building a law-based and world-class business environment as a crucial task. Last year, we reported to the State Council for the launch of a three-year action plan to improve the quality of administrative law enforcement, aiming to address issues such as inaction, misconduct, rough law enforcement and non-standard law enforcement practices, with a particular focus on strengthening the supervision of administrative law enforcement involving enterprises and standardizing administrative inspections of enterprises. Additionally, we reported to the State Council for the cancellation or adjustment of 33 penalty items across nine areas. We drafted and submitted the Guidelines on Further Regulating and Overseeing the Setting and Enforcement of Fines to the State Council for issuance and implementation, aiming to solve prominent problems such as arbitrary fines that have drawn significant complaints from enterprises and the public.

Fourth, the MOJ has focused on providing high-quality legal services tailored to the needs and expectations of business entities. We have launched initiatives aimed at businesses to enhance legal knowledge, promote the rule of law and the spirit of contract, and strive to foster a business environment featuring integrity and fidelity. We also continue to streamline notarization procedures to offer greater convenience to the public. A list of 81 standard certifications across 33 categories have been published, while 116 unnecessary certifications and documents have been removed, which effectively avoids repeated and redundant paperwork for certification. In addition, we have been strengthening the efforts to resolve disputes in emerging fields such as finance, intellectual property and the internet. We support and encourage industrial associations and chambers in these sectors to established their own public dispute settlement organizations, the number of which currently exceeds 3,600. These dispute settlement efforts are playing an increasingly important role in advancing high-quality development and maintaining social harmony and stability.

Fifth, the MOJ has advanced the rule of law in foreign-related affairs, contributing to and ensuring high-quality opening-up. We have expedited the development of a sound system of laws and regulations in foreign-related affairs. We have also collaborated with related government bodies when it comes to research, drafting, review and revision of key laws and regulations, such as the Law on Foreign Relations and the Law on Foreign State Immunity. Furthermore, rapid progress has been made in improving legal services related to foreign affairs. We support the establishment of international commercial arbitration centers in cities such as Beijing, Shanghai, Guangdong and Hainan. We also encourage the strengthening of foreign-related legal services including support for lawyers, notarization services and commercial dispute settlements. To date, Chinese law firms have established a total of 207 branches in 37 countries and regions around the world, with over 12,000 foreign-related lawyers in service. An integrated certification system combining foreign-related notarization and consular legalization have been promoted, which has effectively enabled Chinese citizens and businesses to "go global."

On the new journey ahead, justice and administrative bodies at all levels will acquire a deep understanding of the decisive significance of establishing Comrade Xi Jinping's core position on the Party 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 must be more conscious of the need to maintain political integrity, think in big-picture terms, follow the leadership core and keep in alignment with the central Party leadership. We must stay confident in the path, theory, system and culture of socialism with Chinese characteristics. We must uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership. We will take a realistic and pragmatic approach, shoulder our appointed responsibilities and make greater contributions to the endeavor of building a great country, moving toward national rejuvenation on all fronts through Chinese modernization. 

This concludes my introduction. Next, my colleagues and I will take your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang. The floor is now open for questions. Please raise your hand and state the news outlet you represent before asking your questions.

CCTV:

The third plenary session of the 20th CPC Central Committee has made comprehensive arrangements in areas such as building a high-standard socialist market economy, promoting high-quality economic development and improving macroeconomic governance. What specific laws will be introduced in these areas? Thank you.

Wang Zhenjiang:

Mr. Jiang will take this question.

Jiang Shan:

Thank you for your question. The third plenary session of the 20th CPC Central Committee has made comprehensive arrangements in building a high-standard market economy, promoting high-quality economic development and improving macroeconomic governance. Moving forward, the MOJ will strengthen legislation in key sectors across the following fields.

In terms of building a unified national market and improving the business environment, the MOJ is working with related government bodies to expedite the revision of the Anti-Unfair Competition Law  in a bid to create a sound institutional environment for all business operators to compete fairly within the market. We are also improving laws and regulations concerning the clearance of overdue payments owed to enterprises as well as revising regulations on ensuring payments to small and medium-sized enterprises (SMEs).

In terms of fending off and defusing risks in the financial sector and promoting the sound and stable development of the capital market, the MOJ will accelerate efforts to revise laws and regulations in the financial sector, such as the law on the regulation of and supervision over the banking industry, in order to further improve the financial regulatory system. We will also enact provisions by the State Council to regulate intermediaries' services for companies' public offerings, so as to help improve the quality of listed companies and protect investors' lawful rights and interests. In addition, related government bodies are moving faster to study and work on the drafting of the financial law, in which the MOJ is also participating. 

In terms of deepening the reform for the energy management system and enhancing the resilience and security of industrial and supply chains, the MJO is promoting the independent operation of natural monopoly businesses in sectors such as energy and advance market-oriented reforms in competitive areas of these sectors. We are also refining the overall planning and linkage systems for the exploration, production, supply, storage and sales of strategic mineral resources. We have collaborated with related government bodies and have formulated a draft for the Energy Law and a revision draft for the Mineral Resources Law. Currently, both of these documents have been submitted to the Standing Committee of the National People's Congress (NPC) for deliberation, and the MOJ will work with related NPC bodies to advance the legislation process.

In terms of building new institutions for a higher standard within the open economy and creating policies to support efforts to develop China into a strong trading nation, the MOJ is working with related government bodies to study and revise the Foreign Trade Law and the Customs Law. By doing so, we aim to proactively align with international high-standard economic and trade rules, take the initiative to enhance the country's openness to the world as well as actively respond to digital and eco-friendly trends within trade. We are also innovating mechanisms for supervision and fostering an institutional environment which is conducive to the growth of new business forms and models. Thank you.

Cnr.cn: 

Could you elaborate on the new requirements outlined in the resolution that was adopted at the third plenary session of the 20th CPC Central Committee regarding law-based governance on all fronts? What measures will the MOJ take next to fulfill these new requirements? Thank you.

Wang Zhenjiang:

I'll answer this question. Thank you for your inquiry. The MOJ's leading Party members group considers studying and implementing the guiding principles of the plenary session to be a major political task at present and for some time to come. The group immediately held meetings for Party leaders as well as for all members of the Party, organized group study sessions for senior officials, communicated and studied the guiding principles of General Secretary Xi Jinping's important remarks and the plenary session, and took concrete steps to implement various legal reform tasks.

The third plenary session of the 20th CPC Central Committee made a series of major theoretical innovations in law-based governance on all fronts, deployed significant reform measures, further enriched and developed Xi Jinping Thought on the Rule of Law, and expanded the scope of building a socialist country under the rule of law. This is mainly reflected in the following aspects: 

First, it was stated that "the rule of law provides an important guarantee for Chinese modernization," and "we must deepen reform and advance Chinese modernization under the rule of law." This profoundly illustrates the important status and role of the rule of law in Chinese modernization.

Second, "refining the system of socialist rule of law with Chinese characteristics" and "moving to a higher stage in building a socialist country under the rule of law" have been incorporated into the overall objectives of further deepening reform comprehensively. This ensures coordination between the general goal of comprehensively promoting law-based governance and the strategic plans for deepening reform comprehensively. 

Third, staying committed to law-based governance on all fronts has been established as one of the six guiding principles for further deepening reform comprehensively. This highlights the unity of reform and the rule of law, ensuring that all major reforms have a solid legal basis. It further demonstrates a clear direction of deepening reforms per the rule of law.

Fourth, each section of the resolution addresses the advancement of the rule of law, integrating it into institutional reforms across all areas. It further refines and solidifies the decisions and plans of the 20th CPC National Congress to see that all the state's work is carried out under the rule of law. 

Fifth, it includes a dedicated section on promoting socialist rule of law with Chinese characteristics, proposing major reform measures in five areas. This aims to remove institutional barriers that restrict and affect comprehensive law-based governance.

For the MOJ, the reform tasks in the field of the rule of law outlined by the plenary session are both important assignments and significant missions. We will focus on promoting high-quality development, more consciously planning for and advancing judicial administration in the broader context of Chinese modernization and ensuring implementation with unwavering determination. In particular, we will do an excellent job in performing the duties of the Office of the Commission for Overall Law-Based Governance of the CPC Central Committee, which is set up within the MOJ. We'll coordinate reforms across legislation, law enforcement, administration of justice, observance of the law and rule of law in foreign-related affairs. This will achieve systematic integration and efficient coordination of reforms in the field of the rule of law.

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

Cover News:

Administrative reconsideration is an important means of resolving administrative disputes and ensuring equal legal protection for citizens, legal persons, and other entities. Could you please outline how the MOJ has promoted administrative reconsideration to support high-quality development? Thank you. 

Wang Zhenjiang:

Let's invite Mr. Kong to answer your question. 

Kong Xiangquan:

Thanks for your question. Administrative reconsideration is a supervisory system for government self-correction and a remedy for resolving administrative disputes. It's an important channel for safeguarding the legitimate rights and interests of the public and businesses. The MOJ has been diligently implementing the decisions and deployments of the CPC Central Committee and the State Council. We've diligently performed our duties as the State Council administrative reconsideration agency, comprehensively strengthened administrative reconsideration efforts, and fully utilized administrative reconsideration as the primary means for resolving administrative disputes. These efforts act as a shield for high-quality development. 

First, we've made tangible achievements in substantively resolving administrative disputes. We've promoted revisions to the Law on Administrative Reconsideration, further expanding the scope of administrative reconsideration and bringing more administrative disputes into this process. In the first half of this year, judicial administrative organs at all levels received 292,000 new administrative reconsideration cases and concluded 225,000 cases. The number of new cases increased by 150% year on year, a substantial increase. Following administrative review, 202,000 cases didn't proceed to administrative proceedings. The settlement rate of administrative reconsideration cases reached 89.4%, an increase of 12.6 percentage points compared to 2023. 

Second, we've overseen and promoted strict, standardized, impartial, and civilized law enforcement. We have guided judicial administrative organs at all levels to actively implement the oversight mechanism stipulated in the newly revised Law on Administrative Reconsideration. We've also earnestly strengthened error correction in individual administrative reconsideration cases and the standardization of similar cases. In the first half of this year, 24,000 illegal or improper administrative actions were corrected, with an error correction rate of 13.7%. This effectively addressed several problems, such as administrative inaction, procedural violations and arbitrary fines. In response to common problems in administrative law enforcement, we issued 2,734 administrative reconsideration opinions and suggestions. Additionally, we conducted ancillary reviews of 357 administrative normative documents. 

Third, we've worked to optimize the law-based business environment. Judicial administrative organs at all levels have actively strengthened administrative reconsideration work involving business entities. They handled 2,328 new types of administrative reconsideration cases related to enterprises, including administrative agreements, compensation and competition restrictions. In the first half of this year, we received 31,000 new administrative reconsideration cases filed by various types of business entities and concluded 23,000 of them. This saved 10.17 billion yuan in economic losses for involved businesses, effectively safeguarding their legitimate rights and interests. The MOJ, together with the National Development and Reform Commission and the All-China Federation of Industry and Commerce, launched a nationwide special campaign to support high-quality business development through administrative reconsideration. We proposed 18 specific measures across five areas to comprehensively improve the quality and efficiency of administrative reconsideration work involving businesses. Thank you. 

People's Daily:

The third plenary session of the 20th CPC Central Committee proposed improvements to the public legal services system that covers both urban and rural populations. How does the MOJ plan to advance this initiative? Thank you. 

Yang Xiangbin:

Thank you for your question and for everyone's interest in public legal services. Actually, public legal services are closely related to our daily lives and work. For example, many of the journalists here today have had experiences such as hiring a lawyer or obtaining notarization. In this sense, public legal services are actually a fundamental, service-oriented and supportive aspect of exercising law-based governance on all fronts, playing a vital role in ensuring and improving people's livelihoods. The initiative to build a system for public legal services that covers both urban and rural populations was first proposed during the fourth plenary session of the 18th CPC Central Committee. After ten years of planning, developing and improving, China has basically established a convenient, efficient and inclusive system for public legal services that is equitably accessible to both urban and rural populations. So far, there are 754,000 legal service agencies of various kinds nationwide, with 3.997 million legal professionals. A total of 590,000 physical platforms have been built to provide public legal services, with over 600,000 villages and communities now equipped with legal advisors. Additionally, the public legal service hotline and the Legal Services of China website have been fully launched and are operating smoothly. Our legal service workers handle over 40 million various cases annually. Public legal services have played a crucial role in supporting economic and social development, safeguarding fairness and justice, and promoting social harmony and stability.

As mentioned earlier, the third plenary session of the 20th CPC Central Committee emphasized the need to improve the system for public legal services that covers both urban and rural populations. In line with this instruction, we will focus on several aspects. First, we will strengthen coordination and planning, especially by formulating the 15th Five-Year Plan (2026-2030) for the public legal service system. This plan will coordinate and arrange various tasks to refine the system during the 15th Five-Year Plan period. Second, we will promote balanced development between urban and rural areas and different regions. Given China's vast landscape and the imbalance between the eastern and western regions, concrete and effective measures will be taken to address the uneven distribution of resources for public legal services. This primarily includes establishing and improving a mechanism for lawful cross-regional flow of resources for legal services as well as deepening paired assistance between legal professions in the eastern, central and western regions. Additionally, we will work to initiate a program that provides legal aid to the western region while continuing ongoing efforts such as the "Lawyer Service Team to support legal services in Xizang," "Legal Services for the Elderly" and "Legal Services by Your Side for People with Disabilities. " These initiatives aim to continuously make public legal services more balanced and accessible. Third, we will encourage and guide the participation of nongovernmental actors, recognizing that the provision of pro bono legal services is a shared responsibility across all sectors of society. To this end, we will establish and improve mechanisms for volunteers to provide legal services and foster a number of professional public-interest legal service organizations, thereby diversifying service providers. Fourth, we will improve legal service quality and credibility. This primarily involves refining the supervisory and management system for public legal services, creating a coordinated regulatory framework that integrates administrative regulation, self-discipline of legal industry and associations, autonomy of legal institutions as well as public supervision to achieve joint management and participation. Our overarching goal is to better meet people's needs for high-quality public legal services and continuously enhance the public's sense of gain and satisfaction in the legal field. Thank you.

Nanfang Daily, Nanfang Plus:

In recent years, issues such as arbitrary, unmannerly law enforcement and excessive punishment for minor infractions have occasionally occurred in some areas, infringing on the legitimate rights and interests of citizens and businesses. What measures has the MOJ taken, and will take, to address these problems? Thank you.

Wang Zhenjiang:

Your question is very timely and pertinent. I'll invite Mr. Kong Xiangquan to respond.

Kong Xiangquan:

Thank you for your question. To address the issues you mentioned, the MOJ has implemented a series of practical measures since last year to refine the system of standards on administrative discretion as well as intensify coordination and supervision of administrative law enforcement, improving the administrative law enforcement of all localities and government departments. Looking ahead, we plan to take the following steps:

First, we will launch special campaigns to tackle prominent issues regarding administrative law enforcement. In response to particular public concerns, such as one-size-fits-all law enforcement and rough law enforcement, we will organize related local departments to compile lists of prominent law enforcement issues across different sectors, so as to conduct concentrated rectification and special oversight. Additionally, we will strengthen information sharing between administrative law enforcement oversight and other supervisory channel such as the "12345" government service hotline, fully utilizing the platform to provide supervision, critical feedback and suggestions concerning administrative law enforcement, thus effectively safeguarding people's legitimate rights and interests.

Second, we will further refine the system of standards on administrative discretion. We will urge and guide relevant local authorities to establish and improve this system for matters such as administrative penalties. This will help unify standards in law enforcement and regularize the exercise of discretionary powers, thus effectively resolving acute issues such as inconsistent punishment for similar administrative penalty cases.

Third, we will standardize the setting and imposition of fines. The MOJ urges local authorities and departments to proactively implement the relevant requirements of the State Council. It also guides and supervises relevant departments to reasonably set fines by comprehensively considering factors such as the level of socioeconomic development and industry characteristics. When implementing fines, authorities should holistically consider the subjective culpability and gains of the parties involved. The principle of appropriate fines for faults must be applied to avoid imposing penalties that are disproportionate to the severity of violations. 

Fourth, we will enhance the capabilities and professional qualities of administrative law enforcement personnel. We will fully implement the professional qualification management and certificate system for recruitment. We will improve law enforcement personnel's accession and withdrawal mechanism to eliminate issues such as inaction and misconduct in law enforcement as much as possible. We will fully implement the administrative enforcement responsibility system and improve the regular training mechanism for related personnel. These efforts will constantly enhance their political literacy, professional competence and sense of integrity. Thank you. 

Jinan Times App:

We recognize that lush mountains and lucid waters are invaluable assets. What legislative measures have been taken in recent years to improve the systems for advancing ecological progress and to promote modernization while maintaining harmonious coexistence between humans and nature? Thank you. 

Wang Zhenjiang:

Thank you for the question. Mr. Jiang will provide the answer to this. 

Jiang Shan:

Thank you for the question. In recent years, public expectations for eco-environment quality have grown increasingly high. Moreover, high-quality development relies on the harmonious coexistence between humans and nature. Clearly, improving the rule of law in this field is crucial. As Mr. Wang just said, the MOJ has fulfilled its responsibilities by focusing on enhancing the systems and mechanisms that support the philosophy that lush mountains and lucid waters are invaluable assets. We have strengthened legislation to support the coordination of carbon reduction, pollution control, green development and economic growth. Specifically, our efforts have focused on the following aspects: 

First, we have thoroughly implemented the arrangements and requirements set forth at the third plenary session of the 20th CPC Central Committee regarding the improvement of basic systems for advancing ecological progress. We have collaborated with relevant parties to draft laws on national parks and farmland protection and quality improvement. These efforts aim to facilitate the development of a nature preserve system centered around national parks and to promote the development of high-standard farmland. 

Second, we have focused on establishing and improving the ecological protection compensation mechanism. In collaboration with the National Development and Reform Commission and other relevant departments, we formulated and promulgated regulations on ecological protection compensation. These regulations implement the related decisions and arrangements of the CPC Central Committee and the State Council. By translating effective practices from various localities and departments into comprehensive and fundamental administrative regulations, we have cemented and expanded these practices. Consequently, we have established basic systems and rules for ecological protection compensation. 

Third, we have implemented the requirements for vigorously and properly pursuing peak carbon emissions and carbon neutrality. In collaboration with the Ministry of Ecology and Environment, we formulated and issued interim regulations on the management of carbon emissions trading. These regulations specify the regulation system for national carbon emissions trading and related activities, thereby creating a basic institutional framework for such trading. 

Fourth, we have implemented requirements for environmental risk management and control. For example, we revised and issued regulations on the management of ozone-depleting substances, further improving related regulatory measures. 

That's all I have to share. Thank you, everyone.

Hong Kong Bauhinia Magazine: 

Arbitration is the internationally recognized standard approach for resolving commercial disputes. What concrete measures have you taken to improve the international commercial arbitration system and cultivate arbitral institutions? Thank you.

Wang Zhenjiang:

Mr. Yang will answer this question.

Yang Xiangbin:

Thank you for the question. As you noted, arbitration is indeed the internationally recognized standard approach for resolving commercial disputes. It plays a crucial role in facilitating investment, trade and economic growth across different countries and regions. The resolution adopted at the third plenary session of the 20th CPC Central Committee mentioned arbitration multiple times, outlining clear requirements. These included deepening reform of the arbitration system, improving international commercial arbitration and mediation systems, cultivating world-class arbitration institutions, and promoting innovation in maritime arbitration systems and rules. These emphases demonstrate the great importance attached to arbitration and its development by the CPC Central Committee. To implement the arrangements and requirements set forth at the third plenary session, we will focus on promoting arbitration-related reforms and concentrate our efforts on three key aspects:

First, we are quickly improving arbitration-related laws, systems and rules. Currently, we are promoting the revision of the arbitration law. A draft revision has been deliberated and approved at an executive meeting of the State Council. This revision is comprehensive, coming 30 years after the promulgation of the original arbitration law. It primarily focuses on addressing prominent issues in the current arbitration system and related practices, aligning with advanced international rules, and enriching and improving foreign-related arbitration systems. The aim is to improve arbitration laws and systems with Chinese characteristics that are compatible with international norms. This will enhance the international influence of China's arbitration system and better enable it to serve socioeconomic development and expand openness. 

Second, we are concretely improving arbitration credibility. With China's rapid socioeconomic development, the arbitration field has also evolved swiftly. Currently, there are 282 arbitration institutions with more than 80,000 arbitrators and staff members in the country. Over 5 million cases have been handled, involving assets worth more than 8 trillion yuan and parties from more than 100 countries and regions. In 2023 alone, arbitration institutions nationwide handled 607,000 cases, up 27.8% year on year. These cases involved assets worth 1.16 trillion yuan, an increase of 17.7% from the previous year. This development has been rapid, and the results have been fruitful. Moving forward, we will focus on enhancing arbitration credibility, recognizing its vital importance. We will further improve the mechanisms for developing and operating arbitration institutions and fully enhance the supervision and management of arbitration institutions and arbitrators. Our goal is to provide higher-quality and more efficient arbitration services for the public. 

Third, we have taken practical steps to enhance the international competitiveness of the arbitration sector. As Mr. Wang just mentioned, we are now actively advancing the construction of international commercial arbitration centers. In 2023, the eight arbitration institutions in pilot areas handled a total of 79,000 cases involving objects worth 600 billion yuan, accounting for 52% of the national total. The number of foreign-related cases concluded accounted for 72% of the national total and the worth of the objects involved was 69% of the national total. Since its launch in 2022, the construction of international commercial arbitration centers has progressed rapidly and achieved positive results.

Next, we will advance the construction of international commercial arbitration centers. Acting upon the arrangements and requirements of the third plenary session of the 20th Party Central Committee, we will give priority to cultivating a batch of world-class arbitration organizations, launch projects for this purpose, and build world-class brands of arbitration organizations, so as to give better play to the role of arbitration in serving high-quality development and high-standard opening up. Thank you.

Xinhua News Agency:

To advance high-quality development, we should ensure that state administrative bodies at all levels function in accordance with the law. The MOJ shoulders the responsibility for coordinating the building of a rule of law government. Going forward, what work will be done to advance law-based government administration? Thank you.

Wang Zhenjiang:

Thank you for your question, I will answer this one. Building a law-based government is a key task and major part of comprehensively advancing law-based governance. The third plenary session of the 20th Party Central Committee has made systematic arrangements for deepening law-based government administration. The MOJ has always placed importance on this, and will focus on advancing the work in the following four aspects:

First, we will keep working to establish a sound legal footing for government institutions, functions, powers, procedures and responsibilities. To advance law-based government administration, we must set rules and draw boundaries for administrative powers with the rule of law. We will speed up advancing legislative items such as regulations on the supervision of administrative law enforcement and regulations on the procedures of formulating administrative normative documents, with the aim to further improve government behaviors through the rule of law. At the same time, we will strictly implement the interim regulations on major administrative decision-making procedures and improve the legality review mechanism for major decisions and normative documents, so as to enhance the binding force of legality reviews.

Second, we will strengthen reviews of the legislative work of the government. The third plenary session of the 20th Party Central Committee has for the first time made a proposal regarding this. As the legal affairs organ of the State Council, the MOJ will further improve the system and mechanism and develop new ways and means for reviews of government legislation, enhancing the quality and efficiency of such reviews across the board to continuously improve those of legislation. In this work, we specifically should adapt to new situations, new requirements and new tasks, take a problem-oriented approach, and work to make the system and measures more targeted, effective and practicable.

Third, we will strengthen administrative law enforcement coordination and supervision. Administrative law enforcement connects government and people, and directly affects people's trust in the Party and government and their confidence in the rule of law. This year, the General Office of the CPC Central Committee and the State Council issued opinions on strengthening the development of working systems for administrative law enforcement coordination and supervision. In accordance with the arrangements of the Party Central Committee and the State Council, the MOJ will basically establish a working system for the supervision of administrative law enforcement covering the provincial, municipal, county and township levels by the end of this year. At the same time, we will improve the supervision system, adopt new oversight methods, strengthen comprehensive coordination, and accelerate steps to achieve all-round, full-process and long-term supervision of administrative law enforcement on a regular basis. 

Fourth, we will improve the institutions and mechanisms for administrative review. We have attached great importance to giving play to the institutional strengths of administrative review as it is impartial, efficient and convenient and works in the interest of the people and giving play to its role as a major channel for resolving administrative disputes. In particular, we strengthened administrative reviews regarding business entities. Last year, administrative review agencies at various levels nationwide accepted 385,000 cases, up 42.7% year on year. Among these, 352,000 cases were concluded. The number of administrative review cases has exceeded that of administrative litigation cases for the first time. The cases handled included 17,000 cases relating to land management, 2,899 cases relating to intellectual property rights, and 2,764 cases relating to ecology and environment. A total of 39,800 administrative review cases filed by business entities were handled in 2023, helping recover economic losses amounting to 10.39 billion yuan, playing a crucial role in supporting high-quality development. Thank you. 

Nanfang Metropolis Daily:

In recent years, the overall quality of administrative normative documents has improved, but there are still problems such as lack of discretion and uneven quality in some places. What measures will be taken to address these problems? Thank you.

Wang Zhenjiang:

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

Kong Xiangquan:

Thank you for your question. Formulating administrative normative documents is an important way for local governments to perform their economic and social management function in accordance with the law. The third plenary session of the 20th Party Central Committee has made specific arrangements for improving the legality review mechanism for normative documents, which is of great significance for strengthening the formulation and management of normative documents, and effectively curbing the random issuance of documents and the introduction of senseless policy documents. Based on our duties, the MOJ will work on the following aspects.

First, we will strengthen the development of regulations and standards. Regulations on the procedures for formulating administrative normative documents have been included in this year's legislative work plan of the State Council. We will take proactive steps to advance the study and drafting of the regulations, and further clarify through legislation the concepts, scope and document-making bodies, procedures and responsibilities related to administrative normative documents, so as to enhance the rule of law in administrative normative documents formulation and management. 

Second, we will enhance review teams' capacity building. We will strengthen operational guidance to various regions and departments, promote training and rotation of personnel responsible for reviewing administrative normative documents, and comprehensively improve the political and professional capabilities of legal review teams. We will organize the selection of exemplary cases in the legal review of administrative normative documents, summarize and promote best practices, and provide guidance for review personnel in their work.

Third, we will establish a data and information platform. We'll promote the establishment of management information platforms for legal reviews of administrative normative documents across regions and departments. Through interconnection and data sharing, we'll enhance statistical analysis, achieve dynamic and refined management of administrative normative documents, and effectively improve review quality and efficiency.

Fourth, we will promote regional integration of the legal review mechanism. We'll summarize the experience of integrating the legal review mechanism for administrative normative documents in the Yangtze River Delta region. We'll increase support for establishing and improving communication and coordination mechanisms for review standards of administrative normative documents in regions such as Beijing-Tianjin-Hebei, the Greater Bay Area, and Chengdu-Chongqing. This aims to enhance unity in policy formulation, consistency in rules, and synergy in implementation. Thank you.

Legal Daily:

High-level opening up requires high-level legal services. Could you please elaborate on the measures the MOJ has taken to fully leverage the role of lawyers in foreign-related legal services and the achievements that have been made? Thank you.

Wang Zhenjiang:

This falls under public legal services. I would like to invite Mr. Yang to answer your question.

Yang Xiangbin:

Thank you for your question. As you mentioned, high-level opening up cannot be achieved without high-level legal services. Promoting high-quality, high-level legal services has been a key part of our foreign-related rule of law efforts in recent years. The MOJ has actively developed foreign-related legal services, especially those provided by lawyers, who are crucial to our legal service system. We've strived to support high-level opening up through high-quality foreign-related legal services. Our measures have been robust, and the results are quite evident. This is mainly reflected in the following aspects:

First, we're actively cultivating world-class law firms. We are supporting and guiding a group of strong foreign-related law firms to accelerate their entry into the ranks of top international firms. Working with relevant departments, we've improved policy support measures to encourage Chinese lawyers to "go global." Compared to 2018, the number of overseas branches of Chinese law firms has increased by 69.67%. These firms play a positive role in strengthening the legal security chain that protects China's overseas interests.

Second, we're continuously strengthening the cultivation of foreign-related legal talent. The MOJ has organized three advanced training sessions for foreign-related legal talent and 10 training sessions on foreign-related legal services for public and corporate lawyers. We've guided the All-China Lawyers Association in holding foreign-related legal service training sessions for lawyers, training more than 1,400 lawyers in total. In collaboration with the Ministry of Education, we've implemented a master's degree program in foreign-related law, with a cumulative enrollment of nearly 1,500 students.

Third, we emphasize the role of Hong Kong and Macao lawyers in foreign-related legal services. The MOJ has led the establishment of a consultation mechanism for legal services in the Greater Bay Area, promoting talent cultivation and exchange among Guangdong, Hong Kong and Macao. We've actively promoted the pilot program for lawyers practicing in the Greater Bay Area, organizing the first qualification examination for lawyers in the region this year after extending the pilot period. So far, the MOJ has successfully held four exams, with over 1,800 Hong Kong and Macao lawyers participating and 482 obtaining Greater Bay Area lawyer practice certificates. The pilot program has brought experienced Hong Kong and Macao lawyers with rich cross-border legal service expertise into mainland legal teams, significantly enhancing the capabilities and levels of foreign-related legal and lawyer services. It has played a positive role in ensuring high-quality development and high-level opening up. Thank you.

Shou Xiaoli:

The last two questions.

The Poster News APP:

Education, science, technology and talent are fundamental and strategic pillars of China's modernization. What has the MOJ done to improve and refine the legal system for education, science, technology and talent development? Thank you.

Wang Zhenjiang:

Mr. Jiang will answer this question.

Jiang Shan:

Thank you for your question. The third plenary session of the 20th CPC Central Committee has set new, higher standards for education, science, technology and talent development. The MOJ is committed to deeply implementing strategies to enhance the nation through science and education, strengthen the country with talent, and drive development through innovation. To improve legal systems for education, science, technology and talent, we've focused on the following tasks:

First, to deepen reform of the science and technology system and enhance the quality of science and technology awards, we've amended the Regulations on National Science and Technology Awards. This further strengthens the centralized and unified leadership of the CPC Central Committee over the work of science and technology awards, better leverages the advantages of the new national system, encourages scientific and technological innovation, and promotes the transformation of scientific and technological achievements. 

Second, we will focus on strengthening IP rights protection, and promoting innovative development, amend the Detailed Rules for the Implementation of the Patent Law of the People's Republic of China, and further improve the patent application and examination systems. We will enhance patent protection and services, and add content such as the Special Provisions on International Applications for Design, and align with international rules such as the Patent Cooperation Treaty and the Hague Agreement Concerning the International Registrations of Industrial Designs. The newly revised detailed rules will help foster patent innovation, protection and application, support all-round innovation, and better meet the needs for innovation-driven development and high-level opening up. 

Third, centering on strengthening academic degree management efforts and refining the high-level talent cultivation mechanism, we will work with relevant departments to draft the academic degree law to further enhance the academic degree management mechanism. The law will detail and clarify the conditions and procedures for conferring degrees, better protect the legitimate rights of degree applicants, ensure degree quality and help cultivate talent committed to national rejuvenation in the new era. 

At present, the MOJ is working with relevant departments to accelerate the revision of laws and administrative regulations such as the Law on Popularization of Science and Technology, and the Regulations on the National Natural Science Fund. Going forward, the ministry will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee, focus on making coordinated efforts to promote integrated reform of institutions and mechanisms pertaining to education, science and technology, and talent, and boosting the overall performance of our country's innovation system. The ministry will actively promote legislation in related fields, providing strong institutional support for building a system that fosters all-round innovation. Thank you. 

Shou Xiaoli:

Last question, please. 

Red Star News:

Currently, China is becoming more closely connected with the rest of the world. The number of our citizens and enterprises "going global" continues to grow. What measures will be taken to strengthen the rule of law in foreign-related affairs and safeguard the legitimate rights of Chinese citizens and companies overseas? Thank you. 

Wang Zhenjiang:

Thank you for your question. This is an excellent and very important issue. As China opens wider to the world, the number of its citizens and enterprises going global continues to rise, and they are encountering various legal issues and security risks. From this perspective, we must enhance abilities to safeguard their security overseas, and protect the legitimate rights and interests of our citizens and legal entities abroad. We will leverage the role of the Office of the Commission for Overall Law-Based Governance of the CPC Central Committee, which has been set up in the MOJ, to coordinate efforts and gradually establish a mechanism integrating legislation, law enforcement, judiciary, legal compliance, legal services and legal talent cultivation in foreign-related affairs. In protecting the legitimate rights and interests of our citizens and companies abroad, we will deliver in the following aspects: 

First, we will improve the system of foreign-related laws and regulations. China currently has over 50 laws that specifically address foreign-related issues and over 150 laws with foreign-related provisions, which have played a crucial role in protecting the legitimate rights and interests of our citizens and enterprises overseas. However, there are still gaps and weaknesses in the legal framework governing foreign-related affairs. Next, the MOJ will work with relevant departments to accelerate the formulation and revision of relevant laws and regulations, and ensure that necessary laws are enacted, amended, repealed and interpreted, so as to provide stronger institutional support for safeguarding the overseas rights of our citizens and businesses.

Second, we will provide high-quality and efficient legal services for citizens and enterprises going global. Since last year, we have advanced efforts to establish the first batch of over 150 demonstration institutions for foreign-related legal services, supported Chinese law firms to set up service outlets in countries involved in the Belt and Road Initiative (BRI), and selected 295 notary institutions to conduct remote video notarization services in collaboration with overseas embassies and consulates, thereby continuing to increase foreign-related legal service abilities. Next, we will accelerate the fostering of a number of world-class arbitration institutions and law firms, build a comprehensive legal service platform for the BRI, and improve mechanisms for verifying foreign laws, effectively protecting the legitimate rights of our citizens and businesses abroad. 

Third, we will deepen international judicial and law-enforcement cooperation. Currently, China has signed bilateral judicial assistance treaties with 88 countries and treaties on the transfer of sentenced persons with 18 countries, and handled over 300 requests for international criminal judicial assistance and over 3,000 requests for civil and commercial judicial assistance each year on average. Next, we will promote the signing of bilateral judicial assistance treaties and treaties on the transfer of sentenced persons with more countries, and further expand the scope of law-enforcement and judicial cooperation. 

Fourth, we will accelerate fostering high-caliber legal talent. We will work with relevant parties to accelerate the construction of foreign-related legal research bases at the national level, strengthen the training of lawyers in foreign-related issues, cultivate a number of high-level legal talent dealing with practical foreign-related issues, and establish a foreign-related arbitration talent pool, striving to provide legal talent support for our citizens and businesses abroad. Thank you. 

Shou Xiaoli:

Thank you, Mr. Wang. Thank you to all the speakers and friends from the media. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Zhang Rui, Zhu Bochen, Yang Xi, Xu Xiaoxuan, Liu Sitong, Xu Kailin, Yang Chuanli, Liu Jianing, Wang Wei, Ma Yujia, Wang Yanfang, Li Huiru, Zhang Junmian, Wang Qian, Huang Shan, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers: 

Mr. Lu Lei, deputy governor of the People's Bank of China (PBC)

Ms. Li Hongyan, deputy administrator of State Administration of Foreign Exchange (SAFE)

Mr. Zou Lan, director general of the Monetary Policy Department of the PBC

Mr. Peng Lifeng, director general of the Credit Market Department of the PBC

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

Chairperson:

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

Date:

Sept. 5, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Lu Lei, deputy governor of the People's Bank of China (PBC), and Ms. Li Hongyan, deputy administrator of State Administration of Foreign Exchange (SAFE), to brief you on relevant work and to take your questions. Also present today are Mr. Zou Lan, director general of the Monetary Policy Department of the PBC, Mr. Peng Lifeng, director general of the Credit Market Department of the PBC, and Mr. Xiao Sheng, director general of the Capital Account Management Department of SAFE.

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

Lu Lei:

Thank you. Good afternoon, everyone. I'm delighted to be here for this face-to-face exchange. I, alongside my colleagues, will give you a briefing on the financial work being done to promote high-quality development.

First of all, I would like to express my heartfelt gratitude for your long-term interest in and reporting on the reform and development of the financial sector, including the work of the PBC.

The Party Central Committee with Comrade Xi Jinping at its core attaches great importance to financial work. The third plenary session of the 20th Central Committee of the Communist Party of China (CPC) has made comprehensive arrangements to deepen the reform of the financial system, charting the course and setting the goals for optimizing financial services and promoting high-quality development. The PBC has thoroughly implemented the decisions and deployments of the Party Central Committee and the State Council, adhered to the fundamental principle of providing financial services to the real economy, and comprehensively balanced the relationship between short term and long term, steady growth and risk prevention as well as internal and external factors, effectively promoting the construction of a high-quality development pattern featuring mutual reinforcements for the real economy and the financial system. Since the beginning of this year, we have focused on the following aspects, which I would like to share with you:

First, in accordance with the requirements of a prudent monetary policy that is flexible, moderate, precise and effective, we made three significant monetary policy adjustments in February, May and July, adopting comprehensive measures in terms of aggregate, price, structure and transmission to maintain reasonable and sufficient liquidity and to promote steady declines in social financing costs. We have given guidance on optimizing the credit structure, improved the efficiency of fund utilization and effectively supported economic recovery and growth. The RMB exchange rate has remained generally stable at an adaptive, balanced level.

Second, we have fully devoted ourselves to the five major areas — technology finance, green finance, inclusive finance, pension finance and digital finance — and enhanced financial support for major strategies, key areas and weak links. At the macro-policy level, we have emphasized top-level design and systematic planning, formulated and issued policy documents, and strengthened statistical monitoring and evaluation of effects. At the working mechanism level, we are committed to improving the incentive compatible mechanism. We have guided financial institutions to make full use of various structural monetary policy instruments and continuously enhance their financial service capabilities. At the financing channel level, we have supported enterprises in financing through the bond market; and we have cooperated with relevant departments to facilitate fundraising, investment, capital management and exit in the venture capital industry, with special attention given to supporting the development of startups.

Third, we have continuously improved the risk prevention and disposal mechanism and ensured that no systemic financial risks arose. To ensure both development and security, we have worked with relevant departments to effectively address and resolve financial risks in key areas, and continuously strengthen the capacity building in financial risk monitoring, early warning and assessment, with a particular focus on the construction of an early correction mechanism with hard constraints, risk prevention and control of small and medium-sized financial institutions as well as risk prevention through reform. By establishing a financial risk disposal mechanism featuring equal rights and responsibilities and incentive-constraint compatibility, we have strengthened the resource guarantee for risk disposal and woven a tight and solid net for financial safety. Currently, the number of high-risk small and medium-sized banks has decreased by nearly half from its peak.

Fourth, we have continuously promoted high-standard opening up of the financial sector and actively participated in international financial governance and cooperation. By the end of July, overseas investors held 4.5 trillion yuan ($637.68 billion) of Chinese bonds, a record high. The RMB accounted for 6% of global trade financing, ranking second. We will continue to strengthen communication and cooperation with international financial organizations and monetary authorities of major economies, actively participate in international financial governance, and enhance our capacity for opening up through expanded international cooperation.

In summary, the monetary policy and the five major areas of finance are the footholds for the PBC to promote high-quality economic and social development through financial services, while risk prevention and control and financial openness are inherent requirements for promoting the high-quality development of the financial industry itself. We are about to celebrate the 75th anniversary of the People's Republic of China this year. The PBC will thoroughly implement the guiding principles from the third plenary session of the 20th CPC Central Committee, unwaveringly follow the path of financial development with Chinese characteristics and promote high-quality development of the economic and financial sector.

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

Xing Huina:

Thank you, Mr. Lu. I will give the floor to Ms. Li Hongyan for introduction.

Li Hongyan:

Good afternoon, everyone. First of all, I would like to express my heartfelt gratitude for your consistent interest in and support for the administration of foreign exchange. Since the 20th CPC National Congress, SAFE has resolutely implemented the decisions and arrangements made by the Party Central Committee with Comrade Xi Jinping at its core. We have thoroughly exercised a political, people-oriented approach to financial work and continuously promoted reforms and opening up in the foreign exchange sector, providing strong support for high-quality economic development. This is mainly manifested in the following five aspects:

First, the level of cross-border trade facilitation has been further improved. We have continuously optimized the management of trade-related foreign exchange receipts and payments and canceled the administrative licensing for the registration of foreign trade businesses, which is expected to benefit more than 100,000 business entities this year. We have supported the development of new forms of trade, encouraging banks and payment institutions to handle cross-border e-commerce trade settlements based on electronic information. In the first seven months of this year, more than 500 million transactions of this kind were processed, benefiting over 1.2 million micro and small businesses. Additionally, we have enhanced payment convenience for foreigners coming to China, achieving full coverage of foreign currency exchange services in key airports, hotels, scenic areas for cultural tourism and other major venues.

Second, high-quality opening up of capital accounts has been steadily advanced. We have supported the innovative development of science and technology enterprises and extended the policy that facilitates cross-border financing for enterprises from 17 provinces and cities to the entire country. We have optimized and upgraded management policies for cross-border capital centralized operations among multinational corporations, improving their capital allocation efficiency. We have expanded the high-standard institutional opening up of financial markets and revised the Regulations on the Domestic Securities and Futures Investment Capital of Foreign Institutional Investors, further facilitating international investment in the domestic capital market.

Third, the foreign exchange market has seen further advancements in its depth and scope. Currently, China's foreign exchange market offers trading in over 40 currencies, covering all major international foreign exchange products. I'd like to share some data: in the first seven months of this year, the total transaction volume in China's foreign exchange market surged to almost $23 trillion, an increase of 8.7% year on year. In the same period, more than 20,000 businesses engaged in exchange rate hedging for the first time, which enabled more companies to manage exchange rate risks with foreign exchange derivatives.

Fourth, the governance system and governance capacity for foreign exchange have been continuously improved. We have strengthened macroprudential management and have guided market expectations, so as to maintain foreign exchange trading at a rational and orderly manner. We have collaborated with relevant authorities to severely crackdown on illegal and irregular foreign exchange activities to maintain a healthy market environment. Moreover, we have advanced reforms with banks' foreign exchange business in a prudent manner, encouraging banks to reengineer the process for foreign exchange business, so as to set up a comprehensive business framework that includes performing due diligence before the business process, differentiating in-process reviews and post-monitoring reports. By doing this, we are aiming to foster a more open and secure foreign exchange management system.

Fifth, the management of foreign exchange reserves with Chinese characteristics has been further strengthened. China has maintained its foreign exchange reserves above $3 trillion in recent years, making it the world's largest for 19 consecutive years. This has made a positive contribution to stabilizing market confidence and supporting the real economy. 

Going forward, SAFE will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee and will further deepen the reform and high-level opening up of the foreign exchange field. We are committed to the path of financial development with Chinese characteristics and will promote the high-quality development of foreign exchange management, so as to help advance Chinese modernization. 

Xing Huina:

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

CCTV:

China's central bank, as mentioned previously, has conducted a series of supportive monetary policies this year. What results have these policies yielded so far? In what ways will monetary policy continue to support high-quality economic development?

Lu Lei:

Thank you for your questions. We appreciate your interest in monetary policy, including its implementation, outcomes and future course. I've shared some information about our monetary policy previously, so I'd like to offer more specific information in response to your questions.

The PBC has been firmly committed to the decisions and arrangements of the CPC Central Committee and the State Council, implementing a sound monetary policy in a flexible, appropriate, targeted and effective manner. Notably, we've strengthened counter-cyclical adjustments, effectively boosting the recovery trend for the economy and high-quality development. I'd like to provide a detailed breakdown in three areas. 

The first area is about policy implementation. On the one hand, aggregate monetary policy continues to take effect. At the beginning of the year, monetary policy was front-loaded, playing its role in keeping expectations stable and boosting confidence. We have cut the reserve requirement ratio by 0.5 percentage points as well as have lowered relending and rediscounting rates for the agriculture sector and small businesses by 0.25 percentage points, which have helped to reduce banks' funding costs. As a result, the over-five-year loan prime rate (LPR) was reduced by 0.25 percentage points, providing strong support for a good start to the development of macroeconomy. After the third plenary session of the 20th CPC Central Committee, the PBC has swiftly implemented reform arrangements, incorporating reforms into macro control and improving the mechanism for market-based interest rate adjustment. We explicitly stated and further lowered the policy interest rate as well as have reduced the open market operation rate for seven-day reverse repurchase agreements by 0.1 percentage points. This has led to a 0.1 percentage points decrease in both the one-year LPR and over-five-year LPR. These measures have been effective in stimulating demand, helping to consolidate and strengthen the momentum of economic recovery. Furthermore, we also directed major banks to reduce deposit interest rates, so as to maintain their capacity to provide services to the real economy in a sustainable manner.

The second area is concerned with the effectiveness of policy implementation. I would say structural policies play a crucial role in this regard. This year, there has been a substantial demand for structural policies. In order to promote the development of sci-tech finance, we have launched a 500-billion-yuan relending program to support technological innovation and upgrades, which has significantly boosted effective investment. We have introduced a comprehensive package of supportive financial policies for the real estate sector, aiming to foster a stable and healthy property market. Recently, we have provided an additional 100 billion yuan in loans to agricultural and small businesses, as well as for disaster relief efforts in the 12 regions that were severely affected by floods, so as to help them resume production and business operations. These measures have yielded positive outcomes. Furthermore, we have stepped up our efforts to foster a favorable monetary and financial environment to sustain economic recovery. Data shows that the growth rate of total social financing remains within a reasonable range. As of the end of July, there has been an 8.2% year-on-year increase in the stock of aggregate financing and an 8.7% year-on-year increase in the balance of yuan-dominated loans, with both of them outpacing nominal economic growth. Social financing costs have also dropped steadily. In July, the weighted average interest rate on newly issued corporate loans stood at 3.65% and the interest rate on newly issued housing loans was 3.4%, representing a year-on-year decrease of 22 basis points and 68 basis points, respectively. Furthermore, the loan structure has continued to improve. As of the end of July, inclusive loans for micro and small enterprises have increased by 17% year on year. Medium- and long-term lending to the manufacturing sector grew by 16.9% year on year, or almost hitting 17%. Loans for enterprises that use special and sophisticated technologies to produce novel and unique products increased by 15% year on year. All three figures have exceeded the 8.7% year-on-year growth rate in total outstanding loans that I mentioned previously.

The third area is about future policy orientation. The PBC will continue to maintain a supportive monetary policy, and make stepped-up efforts to ensure the implementation of existing policy measures, so as to provide stronger support for high-quality economic development. We will continue to focus on the overall quantity, interest rates and structure. In terms of overall quantity, we will make use of various monetary policy tools in a comprehensive manner to keep liquidity conditions ample, and guide banks to achieve stable and sustainable loan growth. We will ensure that the scale of social financing and money supply align with the expected targets for economic growth and price levels. When it comes to interest rates, we will leverage the recent reduction in policy interest rates and loan prime rates to further drive down enterprises' financing costs and households' credit costs. In terms of structure, we will step up efforts to implement existing policy tools and introduce new measures aiming at improving capital use efficiency, providing more and better financial services to support major strategic initiatives, key areas and weak links.

Our policy priorities in the next phase will center around three dimensions: overall quantity, price levels and structure. I'll keep my remarks brief for now. Zou Lan is director general of the Monetary Policy Department and he is available to answer any questions you may have regarding monetary policy. Please feel free to engage with him for more in-depth discussions in this area. Thank you.

Cover News:

The third plenary session of the 20th CPC Central Committee proposed pursuing high-standard opening up. What measures will SAFE take to implement this? Thank you.

Li Hongyan:

Thank you for your question. Studying and implementing the spirit of the third plenary session of the 20th CPC Central Committee is a major political task for both the current and upcoming periods. The resolution adopted at the session made specific arrangements for opening up and sent a clear signal about expanding high-level opening up. We will fully implement the session's decisions and plans, focusing on three main areas:

First, supporting the real economy and enhancing foreign exchange facilitation. Following principles of market liberalization with effective regulation, we'll strengthen credit risk assessment and improve classified management, making operations easier for honest, compliant enterprises. We'll build an open, diverse, full-functioned and competitive foreign exchange market to better leverage market mechanisms. Focusing on fostering new quality productive forces, we will mainly serve tech innovation enterprises as well as micro, small and medium enterprises, integrating efforts across five key financial areas: technology finance, green finance, inclusive finance, pension finance, and digital finance. We'll extend foreign exchange facilitation policies to more high-quality enterprises, stimulating internal motivation and innovation. We'll promote foreign exchange regulatory innovations to adapt to digital and green trade trends, supporting new models like cross-border e-commerce and overseas warehouses. We'll also improve foreign exchange services for foreigners in China, optimize corporate exchange rate risk management, and expand cross-border financial service platforms to enhance service quality and effectiveness.

Second, promoting reform through opening up and pursuing high-level institutional opening in foreign exchange. We'll focus on improving capital account opening quality, advancing foreign direct investment forex management reforms in an orderly manner, attracting more foreign investment, upgrading and expanding multinational corporate capital pool pilots, and optimizing the qualified foreign investor system. We will further expand high-level opening up pilot programs for cross-border trade and investment, implementing forex management innovation policies first in key areas like free trade zones, Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area. We support the development of international financial centers in Shanghai and Hong Kong and high-quality cooperation under the Belt and Road Initiative.

Third, promoting positive interaction between high-quality development and high-level security, maintaining forex market stability and ensuring national economic and financial security. We will strengthen "macro-prudential + micro-regulatory" management of the forex market, improve monitoring, early warning and response mechanisms for cross-border capital flows, ensure comprehensive regulatory coverage, continue strict crackdowns on illegal activities, and safeguard financial security amid opening up. We'll improve the operation and management of foreign exchange reserves with Chinese characteristics to ensure the safety, liquidity and value preservation and appreciation of reserve assets.

SAFE will implement the session's decisions with a persistent "nail-driving" spirit. We'll enhance reform planning and promotion, strengthen evaluation and follow-up, and support the development of new systems for a higher-level open economy through systemic opening in the foreign exchange sector. Thank you.

Bloomberg:

My question is about interest rate policy. You spoke earlier about the reserve requirement ratio (RRR) cut the PBC made at the start of the year. How much space does the PBC have to cut interest rates further and also to reduce the RRR further this year? And do you see the necessity for that with the economy the way it is now? Thank you.

Lu Lei:

Thank you for your questions. As mentioned earlier, Zou Lan, director general of the Monetary Policy Department of PBC, is here with us. I'll ask Mr. Zou to answer these questions.

Zou Lan:

Thank you for your questions. Adjustments to reserve requirement ratios and interest rates need to be evaluated based on economic trends. Among these, the RRR is a tool for providing long-term liquidity, while 7-day reverse repos and medium-term lending facilities address medium- and short-term liquidity fluctuations. This year, we've also added government bond trading tools. By using these tools comprehensively, our goal is to maintain reasonable and ample liquidity in the banking system. The effects of the RRR cut at the beginning of the year continue to emerge. Currently, the average RRR for financial institutions is about 7%, leaving some room for adjustments.

Regarding interest rates, as Mr. Lu mentioned, the PBC has continued to steadily reduce overall financing costs. Since the beginning of this year, one-year and five-year-plus loan prime rates have decreased by 0.1 percentage point and 0.35 percentage point, respectively, driving a continuous decline in average loan rates. However, factors like the speed of bank deposit shifts to asset management products and narrowing bank net interest margins constrain further reductions in deposit and loan rates. The central bank will closely monitor policy effects and adjust the intensity and pace of monetary policy based on economic recovery, goal achievement and specific macroeconomic issues.

Thank you!

21st Century Business Herald:

I am particularly interested in issues related to inclusive finance. Could you provide an update on the current situation and progress of inclusive finance in China? Moving forward, how will it support high-quality development?

Lu Lei:

I'll answer your questions. Thank you for your interest in inclusive finance. We consider inclusive finance an important part of China's unique financial service system. China, especially in digital inclusive finance, maintains a leading global position. For years, the PBC has taken multiple measures to strongly support inclusive finance development, aiding private, micro, small and medium enterprises, contributing to poverty alleviation and rural revitalization, and better serving social needs. From our observations, the accessibility, coverage and satisfaction of financial services have continuously improved. The benefits of financial reform and development are reaching more and more people.

In supporting private, micro, small and medium enterprises, financial service quality and effectiveness have significantly improved. The PBC has played a key role in policy guidance and incentives, establishing support tools for inclusive loans to micro and small businesses. It has guided financial institutions to enhance their service capabilities for micro, small and medium enterprises and encouraged more credit issuance to meet the needs of private, micro, small and medium enterprises. As of late July, the balance of inclusive loans to micro and small businesses reached 32.1 trillion yuan, up 17% year on year, with 62.39 million credit accounts covering over one-third of business entities.

In supporting comprehensive rural revitalization, we've consolidated poverty alleviation achievements and continued efforts persistently. Recently, the PBC, collaborating with relevant departments, introduced new policies, including five major campaigns focusing on rural industry development, construction and governance. These aim to increase financial support for rural revitalization. As of late July, the national balance of agricultural loans reached 50.47 trillion yuan, up 11.6% year on year.

In addressing critical aspects of people's well-being, the PBC, in collaboration with relevant departments, has refined policies related to the guaranteeing of loans for business startups by increasing loan limits and including veterans and disabled individuals among the beneficiaries, thereby supporting their pursuits in employment and entrepreneurship. Specifically for economically disadvantaged students, the PBC has improved government-subsidized student loans by initiating an interest-free loan policy in 2024, enabling students to finish their education. By the end of the second quarter of this year, the balance of guaranteed loans for startups reached 293.3 billion yuan and student loans were at 208.5 billion yuan.

Our review identifies policy orientation and financial institution services as the twin pillars essential for developing inclusive finance. Effective policymaking and the robust services offered by financial institutions are both indispensable. Moving forward, the PBC will balance expansion with commercial sustainability, speeding up the development of a stable, incentive-compatible mechanism for inclusive finance. 

At the policy level, our strategies highlight development priorities, directing more financial resources towards key areas and populations to promote balanced and coordinated development between urban and rural areas as well as reinforce social equity and equal opportunities. Additionally, a sound management system along with implementation supervision are crucial for guiding financial institutions to make better and fuller use of monetary policy tools, instruments supporting debt financing and other financial instruments.

Regarding financial institutions, first, it is vital to utilize the comparative advantages of diverse financial entities and improve the durable mechanism that encourages financial institutions to be confident, willing and capable to grant loans. Second, we will embrace technological empowerment. As I just said, our nation leads in digital inclusive finance. Through sci-tech empowerment and application of data technologies, we aim to facilitate deeper integration of fin-tech and inclusive finance. This engagement will drive transformative shifts in how inclusive finance is developed and managed, thus enhancing the accessibility and convenience of these financial services.

Moreover, we plan to utilize platforms such as the Group of 20 and the Belt and Road Initiative for enhanced international dialogue and collaboration, deeply engaging in the global governance of inclusive finance. Thank you for your attention.

The Poster News APP：

In the past five years, our country has seen significant overperformance in the annual growth rates of inclusive small and micro-business loans, green loans, medium and long-term loans for high-tech manufacturing industries as well as loans to technology-driven small and medium-sized enterprises (SMEs) compared to the overall annual loan growth rates. Moving forward, how can financial supports be boosted to achieve a high level of technological independence and strength? Thank you.

Lu Lei:

Thank you for your question. As you might be aware, the PBC established a dedicated department, namely the Credit Market Department, in the first half of this year, to better implement the five major strategies for the development of the financial sector. Today, we also have with us Mr. Peng, Director of the Credit Market Department. I will pass your question to Mr. Peng.

Peng Lifeng:

Thank you for your question. The Central Financial Work Conference highlighted the significance to effectively implement the five major strategies regarding finance: technology finance, green finance, inclusive finance, pension finance and digital finance, with technology finance being listed first. Its significance shouldn't be understated. In recent years, the PBC has worked closely with the Ministry of Science and Technology and other relevant departments to continuously enhance financial support for scientific research and technological development as well as for the commercialization of results throughout the entire financial service chain, achieving noteworthy positive outcomes. For example, we made an action plan to enhance support for financing of tech-centric businesses, facilitated the establishment of pilot zones for financial reforms targeting sci-tech innovation, as well as established a policy framework for technology finance with coordination among various departments and between the central and local authorities. We have also prioritized technological innovation within our strategy to enhance the structure of capital supply, establishing a total of 700 billion yuan in special re-loans to encourage tech innovation and executing targeted actions to advance financial service capabilities in technological fields. Over the past five years, lending to technology enterprises in our country has grown at an annual rate of 20%, nearly double the overall loan growth rate. Detailed data shows even more encouraging trends: loans to tech-oriented SMEs have grown at an annual rate of 25%, higher than the growth rate of loans to all sci-tech enterprises, and loans to "specialized, sophisticated, distinctive and innovative" enterprises have risen by 18% annually, both well above the general lending growth. Furthermore, the issuance of tech notes—bonds specifically issued by tech enterprises—has totaled 860 billion yuan.

Looking ahead, our focus remains firmly on establishing China as a leader in science and technology by developing a financial system that resonates with and bolsters technological innovation. We aim to channel financial capital to invest in projects at the early stages, in small enterprises, over long time horizons, and in advanced and core technologies.

In our strategic approach, we are committed to a comprehensive methodology that integrates various elements. We are dedicated to enhancing financing services for major national scientific and technological projects, establishing a coordination mechanism between financial policies and scientific and technological industrial policies, expanding the array of policy tools and measures for boosting financial support, refining the risk mitigation mechanisms for significant technological research as well as encouraging financial institutions to offer long-term, cost-effective financing support. Furthermore, we are determined to provide robust financial services throughout the entire lifecycle of tech enterprises. We know that these enterprises transition through distinct stages: seed, startup, growth and maturity. With varying financial needs at each stage, we focus particularly on fortifying support for the startup and growth phases of sci-tech SMEs, identified as the more vulnerable segments within our national framework of scientific and technological financial services. To deepen the financial sector's supply-side structural reform, we aim to elevate three key ratios. First, we will increase the share of direct financing within social financing, further diversify capital market financing products and introduce specialized financial bonds dedicated to scientific and technological innovation. These differ from the science and technology innovation notes issued by tech enterprises in that these special financial bonds are issued by financial institutions specifically to strengthen tech enterprises and to broaden the fund resources for financial institutions. Simultaneously, we will enhance incentives and transformations within the financial system to cultivate patient capital. Second, we intend to amplify the proportion of investment at early stages and in small businesses in equity financing, implement policies and measures for the high-quality development of venture capital, optimize the complete cycle of venture capital covering fundraising, investment, management and exit, as well as improve the convenience for foreign investors undertaking equity and venture investment in China. Lastly, we seek to boost the fraction of loans allocated for scientific and technological innovation within the total loan portfolio, effectively utilize reloans designated for technological upgrades and innovations, set up an evaluation mechanism for tech-financial services, guide financial institutions to improve their risk assessment capabilities for tech enterprises, and develop more financial products tailored to the unique requirements of the high-tech sector.

South China Morning Post：

In a recent interview, as the governor of the PBC, Pan Gongsheng indicated that there are plans to implement new incremental policies. Could you provide more details on what these measures might entail? Will the expected interest rate reductions in the United States hasten the adoption of these policies? Thank you.

Lu Lei:

Thank you for your questions. Since they concern specific aspects of monetary policy, I would like to ask Mr. Zou to address these questions.

Zou Lan:

Thank you for your concern about monetary policy. As Mr. Lu just mentioned, since the beginning of this year, the PBC has implemented three significant monetary policy adjustments which have effectively supported economic recovery. At the beginning of the year, proactive and early measures were taken in terms of total amount, with an unexpected substantial cut in the reserve requirement ratio of 0.5 percentage points, helping the economy achieve a good start. In the second quarter, we focused on key aspects of high-quality development, established relending programs for technological innovation and transformation as well as launched a combination of policies targeting the real estate market. Since the third quarter, reforms have intensified in response to the arrangements of the third plenary session of the 20th CPC Central Committee. In late July, a series of monetary policy measures were introduced, including lowering policy interest rates and improving the interest rate adjustment mechanism. This reflects both short-term adjustments and medium- and long-term reform strategies.

Overall, a prudent monetary policy has created a favorable monetary and financial environment for economic recovery and development. In terms of total volume, there has been a reasonable growth in money supply and credit, with the growth rate of social financing and RMB loans exceeding that of nominal GDP. Structurally, support for key areas and weak links has been strengthened, and the credit structure has been continuously optimized. In terms of pricing, the cost of corporate financing and household loans have both decreased. Mr. Lu has already provided detailed data on this.

We will continue to closely monitor monetary policy adjustments of major developed economies. At the same time, China's monetary policy will continue to prioritize domestic needs, with a focus on supporting the domestic economic development. First, in terms of total amount, we will enhance counter-cyclical adjustments, flexibly use various monetary policy tools, maintain reasonable growth in money supply and credit as well as will work to steadily reduce comprehensive social financing costs to support and strengthen the positive momentum of economic recovery. Second, in terms of structure, we will focus on several key areas such as the five major tasks of promoting science and technology finance, green finance, inclusive finance, old-age finance, and digital finance ; the national strategy of issuing and making good use of ultra-long special treasury bonds to support the implementation of major national strategies and build up security capacity in key areas ; and the action plan to promote large-scale equipment renewals and trade-ins of consumer goods. We will continue to guide financial institutions to increase credit support for key areas and weak links, and, more specifically, focus on meeting reasonable consumer financing needs. Thanks.

Phoenix TV:

At present, cross-border capital flows are becoming increasingly frequent. Could you provide details on the reform measures worthy of attention in the next step of high-level opening-up for the capital account? Thank you.

Li Hongyan:

Thank you for your question. Mr. Xiao Sheng will answer this question.

Xiao Sheng:

Thank you for your attention to the issue of the capital account's opening-up. As Ms. Li Hongyan just mentioned, in recent years SAFE has been continuously advancing reforms in the management of foreign exchange for the capital account to better facilitate cross-border capital operations for cross-border entities. Next, SAFE will continue to implement the guiding principles of the third plenary session of the 20th CPC Central Committee, adhere to the principle of seeking progress while maintaining stability, promote stability through progress and further deepen the reforms of foreign exchange management for the capital account, thus continuously improving the quality of the capital account's opening-up. We will focus on the following four areas:

First, we will scientifically manage the timing and efficiency of the capital account's opening-up. We will strategically coordinate and orderly advance foreign exchange management reforms in areas such as direct investment, cross-border financing and cross-border security investment. At the same time, we will focus on the systematic integration of reforms and continue to promote integrated pilot policies to facilitate cross-border investment and financing. In the first eight months of this year, pilot projects for high-level opening-up of cross-border investment and financing have benefited more than 1,400 enterprises, supporting high-quality development of the real economy.

Second, we will lead the overall progress through key points to intensify the reform for foreign exchange management of the capital account. We will promote and improve integrated management of overseas lending in both foreign and domestic currencies and support enterprises in both "going global" and "bringing in" investments in an orderly manner. We will steadily advance the upgrading and expansion for the capital pool business of multinational companies, further improve the operational efficiency for the cross-border funds of multinational companies and support the development of headquarters economy. By the end of August this year, over 1,000 multinational corporate groups have participated in capital pool business, covering 18,000 member enterprises. At the same time, we will work with relevant departments to steadily expand the opening-up of financial markets, improve the management of funds for domestic enterprises' overseas direct listings, optimize the Qualified Foreign Institutional Investor (QFII) system and orderly advance the Qualified Domestic Institutional Investor (QDII) program. In the first half of this year, a total of $2.27 billion QDII quotas have been issued. 

Third, we will support the opening-up and development of key regions. We will provide institutional opening-up to serve national and regional development strategies, such as supporting multinational companies in establishing global or regional treasury centers in Shanghai, supporting the Guangdong-Hong Kong-Macao Greater Bay Area in piloting various innovative policies as well as steadily advancing the construction of the Hainan Free Trade Port and cooperation zones in Hengqin and Qianhai. At the same time, we will provide precise support for regional and industrial development. Based on the earlier implementation of pilot programs such as the "Research Funding Facilitation Policy" in Hetao and "Qianhai Hong Kong Enterprise Loans " in Qianhai, both located in Shenzhen, we will further enhance support for the facilitation of cross-border investment, financing and fund exchange.

Finally, in accordance with deployment requirements of "achieving positive interaction between high-quality development and high-level security," SAFE will build and improve a fully processed, full cycle and fully linked capital account opening-up and risk prevention and control system, firmly securing the bottom line to ensure that systemic financial risks do not occur. Thank you!

Nikkei: 

The PBC is actively planning the promotion of digital RMB, with research reaching the 10-year mark this year. What is the current progress with its empirical experiments in China? Additionally, in June of this year, the cross-border settlement pilot project for digital currencies, jointly developed by China and its Hong Kong region, Thailand and the UAE, entered the minimum viable product (MVP) stage. How do you evaluate the progress of this pilot project? Thank you.

Lu Lei:

Thank you for raising such cutting-edge questions. The construction of a legal currency system that aligns with the digital economy is a topic of great concern to central banks and international organizations. So far, there is no single model or successful paradigm. As you know, we have been actively planning, researching and promoting digital RMB for 10 years now. China's research and development of a digital RMB system aims to create a new system for the issuance and operation of RMB in a digital format that is tailored to the conditions of the digital economy. I need to emphasize that the digital economy, digital form of currency issuance and its operation represent a comprehensive reform, supporting the development of China's digital economy, improving the level of inclusive finance development and enhancing the efficiency of the currency and payment system operations. I have briefly introduced our goals and ideas to you. After more than 6 years of research and development, and over 4 years of pilot trials, spanning more than 10 years in total, we have preliminarily verified the feasibility and reliability of digital RMB in terms of theory, business and technology. We also aim to make it more compatible with the digital economy. Overall, progress has been smooth. I would like to provide a brief overview of the relevant situation.

First, a basic framework system has been established. Combining the overall situation of pilot projects with China's specific situation, we have initially formed a two-tier operational structure of "central bank plus operating institutions," with various systems being constantly improved.

Second, we have steadily expanding our R&D pilot projects, and continually exploring innovative application scenarios. At present, the digital yuan has been piloted in 17 provinces and equivalent administrative units, with applications spanning wholesale and retail, catering, culture and tourism, education as well as medical care. These pilots have yielded a batch of replicable and promotable application solutions both online and offline. The digital yuan has played a positive role in boosting consumption, promoting green transformation, and optimizing the business environment. By the end of June this year, the cumulative transaction amount of digital yuan had reached 7 trillion yuan.

Third, we have continually upgraded our services. On the one hand, we have consistently enriched the digital yuan product system, developing innovative products such as smart contracts, as well as barrier-free, age-appropriate and other functions. We have also promoted the wider acceptance of digital yuan to expand its coverage and bring greater convenience. On the other hand, we have continuously improved the digital yuan service system to offer greater convenience for foreign visitors to China. As you know, the digital yuan was used as an innovative payment method at the 2022 Beijing Winter Olympics, as well as the Chengdu Universiade and Hangzhou Asian Games in 2023. Next, the PBC will earnestly implement the spirit of the third plenary session of the 20th CPC Central Committee, grasp the general trend of digital development, continuously and steadily promote the research, development and application of the digital yuan, and consolidate the foundation for the development of the digital yuan.

This is the basic situation regarding the digital yuan, from its research and development to application. As you requested, I would like to delve into the cross-border digital currency experimental project currently underway. To be precise, such an experimental project is a multilateral central bank digital currency bridge project, which is led by the Bank for International Settlements (BIS) Hong Kong Innovation Centre, and is committed to exploring and solving the shortcomings of cross-border payments. Under the cooperation framework of the BIS, the Digital Currency Institute of the PBC, the Bank of Thailand, the Central Bank of the UAE and the Hong Kong Monetary Authority jointly participated in the project. Currently, the project has reached the minimum viable product (MVP) stage, enabling participating institutions within each jurisdiction to carry out real-world transactions in an orderly manner according to due procedures. In addition, the Group of 20 (G20) has put forward initiatives to improve cross-border payments, and several international organizations have studied the applicability of central bank digital currency in cross-border areas from different perspectives. The PBC is committed to actively participate in, conduct joint research and improve cross-border payments to foster connectivity of international financial infrastructure.

That is all from me. Thank you.

Economic Daily:

What are the new features and changes in China's international balance of payments in recent years? What will the trends be in the future? Thank you.

Li Hongyan:

Thank you for your questions; I'm happy to address them. The international balance of payments is a highly important indicator reflecting both domestic and external balance of an economy. It has been attracting widespread attention from markets, while its monitoring and analysis have been a focus of our work. Since the 18th CPC National Congress, China's economic strength has seen a historic leap, laying a solid foundation for the steady operation of the international balance of payments. In general, there are several features: the current account surplus is reasonable and balanced, cross-border investment is more active, an independent equilibrium has been maintained in the balance of payments, and foreign exchange reserves rank first in the world. Specifically:

First, the current account balance has expanded significantly, and has shown greater stability. In recent years, China has continuously promoted industrial transformation and upgrading, fostered integration between the service and manufacturing industries, and showed steady growth in exports. As the economy has developed and people's living standards have improved, China's import demand for overseas goods and services has also increased. In 2023, China's current account balance exceeded $7.3 trillion, an increase of 60% compared with 2012. At the same time, with the increasingly balanced, coordinated and sustainable economic development, China's current account surplus to gross domestic product (GDP) ratio has maintained at around 2% in recent years, which is within a reasonable and balanced range.

Second, two-way cross-border investment has become increasingly robust. In terms of direct investment, Chinese enterprises have strengthened their global presence and expanded their capital outflows. The stock of foreign direct investment (FDI) has leapt from 12th in 2012 to fourth in 2023 globally. China has also maintained its position as an important destination for foreign investors, with its investment stock ranking second in the world, while its investment structure has been continuously optimized. Concerning securities investment, the two-way opening of the financial market has progressed steadily, and the asset allocation demand of domestic and overseas investors has increased significantly. By the end of 2023, cross-border securities investment accounted for 17% of China's total foreign assets and liabilities, up 8 percentage points from 2012.

Third, an independent equilibrium has been maintained in the balance of payments. In recent years, the market-oriented formation mechanism of the RMB exchange rate has been continuously improved, the flexibility of the exchange rate has been continuously enhanced, and the automatic stabilizer function of the exchange rate in adjusting the international balance of payments has been continuously optimized. With the reform and development of the foreign exchange market, the ability of enterprise exchange rate risk management has significantly enhanced, and foreign exchange market transactions have become more rational and orderly. The balance of payments has gradually shifted from a pattern of surplus in both the current and capital accounts to a more balanced position with surplus in one and deficits in the other," maintaining a basic stability in foreign exchange reserves.

Looking ahead, China will further deepen reform comprehensively, continuously transform and upgrade its economic structure, and strengthen the resilience of its foreign exchange market. Under the support of these favorable factors, China's international balance of payments will continue to show a pattern of larger scale, optimized structure and basic equilibrium. At the same time, we will pay close attention to the changing situation, optimize the risk warning and response mechanism, guard against the risks of abnormal flow of cross-border funds, and safeguard China's economic and financial security. Thank you.

China News Service:

We recognize that high-quality development is inseparable from the advancement of financial system reform. Looking ahead, how will the central bank further refine its monetary policy framework? Thank you.

Lu Lei:

The reporter is very much concerned about monetary policies. We will have Mr. Zou Lan to answer this question.

Zou Lan:

Thank you for your question. PBC Governor Pan Gongsheng outlined the approach to improving the monetary policy framework at the Lujiazui Forum in Shanghai on June 19. Building on this, I'd like to provide an introduction that includes some updates on the latest progress.

The third plenary session of the 20th CPC Central Committee proposed deepening financial system reform and accelerating improvements to the central bank system. At its core, this involves enhancing the modern monetary policy framework with Chinese characteristics and building a strong currency. We will further improve the monetary policy framework with Chinese characteristics, considering economic and financial developments and conducting prudent assessments of monetary policy effectiveness.

First, we should consider optimizing the intermediate variables for monetary policy regulation. In recent years, China's economic structural transformation has accelerated. The financial market has developed and the financing structure has evolved. These changes have reduced the measurability and controllability of the money supply and its correlation with the economy. We will gradually shift focus from quantitative targets, using them more as observational, reference and anticipatory indicators. Instead, we'll pay more attention to price-based regulation tools such as interest rates. Simultaneously, in light of changing circumstances, we will study and improve the statistical criteria for money supply to ensure monetary statistics reflect the actual situation.

Second, we need to reform the interest rate regulation mechanism. Previously, we had multiple policy rates, making it unclear which one the market should use as a reference. Now, we have made it clear that the 7-day repo rate in the open market is the major policy rate, with the medium-term lending facility playing a secondary role in policy rates. We've changed the 7-day reverse repo from interest rate bidding to fixed-rate quantity bidding, fully meeting primary dealers' bidding needs. The interest rate is no longer a tender result but is determined by the central bank in accordance with the needs of implementing monetary policy. The quantity is no longer a means for the central bank to regulate liquidity but is jointly determined by primary dealers based on the policy rate and their market judgment. This helps boost institutions' initiative to manage liquidity.

In the future, we will further improve the market-based interest rate regulation mechanism. We'll appropriately narrow the width of the interest rate corridor to better guide market-based interest rates to operate steadily around the policy rates. Meanwhile, in terms of interest rate transmission, we'll focus on improving the quality of loan prime rate (LPR) quotes, granting financial institutions more power to set their interest rates, more accurately reflecting loan market rates, and promoting the smooth transmission of market interest rates from short to long term. To avoid affecting the transmission of policy rates to the LPR, the monthly medium-term lending facility operations will be scheduled after the LPR is published. The price will be determined by the bidding agencies' offers.

Additionally, we will continuously enrich our monetary policy toolkit. To implement the Central Financial Work Conference's requirement to enrich the monetary policy toolkit and increase treasury bond trading in the central bank's open market operations, the PBC has been conducting government bond trading since August. We released the "Announcement on Government Bond Transactions No.1" at the end of August, on the basis of strengthening coordination with financial departments and continuously optimizing the institutional arrangements for the issuance and trading of treasury bonds. In August, the PBC purchased short-term treasury bonds from primary dealers and sold long-term treasury bonds, with a net monthly purchase of 100 billion yuan in treasury bonds. The central bank's treasury bond trading primarily focuses on base currency supply and liquidity management. It allows for both buying and selling treasury bonds. Through flexible combination with other tools, short-, medium- and long-term liquidity management can be sound and targeted. At the same time, we will also take innovative steps to implement structural monetary policy tools in line with macroeconomic conditions and regulatory needs, continuously improving the efficiency of monetary policy.

Finally, we must further improve the transmission of monetary policy. This process actually has two stages. The first is transmission from the central bank to financial markets. By strengthening policy communication and expectation guidance, increasing monetary policy transparency, and enhancing financial institutions' capacity to set prices independently and rationally, we can improve the quality and efficiency of financial services. The second stage is transmission from financial markets to the real economy. We need to focus on removing barriers to policy transmission and strengthen coordination among monetary, fiscal, industrial, regulatory and other policies. We aim to promote supply-demand balance and shift economic policy focus toward areas benefiting people's livelihoods and boosting consumption. We will also improve how policies affect real economic factors like consumption, investment and other variables. These efforts will help improve the quality and efficiency of financial services.

That's all from me. Thank you!

Xing Huina:

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

National Business Daily:

Green finance has become a hot topic as China pursues its dual carbon goals: peaking carbon emissions by 2030 and reaching carbon neutrality by 2060. What work has the PBC done to promote innovation in financial products and services supporting the transition to green and low-carbon development? Thank you.

Lu Lei:

Thank you for your important question. I will answer it. As we all know, green development is a defining feature of high-quality development. The concept of green development is rich and multifaceted. We've preliminarily summarized that it encompasses many areas, including industrial restructuring, climate change response, pollution prevention and control, and eco-environmental protection. Therefore, it has broad development prospects. Due to the extensive prospects and the many areas involved, green development naturally has a strong demand for funding. Therefore, we might say green finance represents a new type of supply-demand relationship formed in the financial sector as a result of green development.

Focusing on green finance, the PBC has upheld the principle of "establishing the new before abolishing the old," supporting the faster accumulation of financial resources in green and low-carbon areas. First, we've enhanced policy guidance. This year, we took the lead in introducing the "Guidance on Strengthening Financial Support for Green and Low-Carbon Development." This document specifies goals and concrete measures for optimizing the standards system, strengthening information disclosure, and promoting product and market development. In addition, we've also leveraged green financial products like green loans and bonds, utilizing carbon-reduction support tools to provide more funding for the development of green industries. As of the end of the second quarter, China's green loan balance reached 34.76 trillion yuan, up 28.5% year on year. The carbon-reduction support tool has driven over 1.1 trillion yuan in carbon-reduction loans. The balance of green bonds stood at 1.99 trillion yuan, with cumulative issuance exceeding 3.7 trillion yuan. Simultaneously, we've strengthened interdepartmental cooperation, establishing a working mechanism for green financial services to support building a beautiful China. We've enhanced interdepartmental and cross-sector coordination and cooperation among industrial and financial departments and market entities, jointly promoting the green and low-carbon transition of economic and social development.

As far as I'm concerned, interdepartmental coordination and cooperation are crucial. The financial sector, other relevant departments and market entities should all work together.

After our recent work, we've identified effective ways to develop green finance, which we summarize as "two foundations and three key elements." The "two foundations" are: first, accelerating the development of emerging green industries and second, promoting the green transition of traditional industries. The "three key elements" refer to effective monetary and credit policies, financial market instruments, and interdepartmental coordination. These will constitute the focus of our follow-up work.

First, we'll refine the policy system. In accordance with the overall requirements for building a beautiful China, we'll introduce a series of green finance policies and arrangements. We'll expand the scope of carbon reduction support tools, extend the validity period of policies, and increase the scale of re-lending to provide more low-cost funding for green development and low-carbon transition. We'll include financial institutions' support for green and low-carbon development in our green finance assessment framework. By strengthening the application of assessment results, we aim to guide more financial resources toward green and low-carbon development.

Second, we'll expand financial market instruments. We'll build a high-standard green bond market, strengthening management of green bond issuance, duration and third-party evaluations. We'll particularly focus on preventing the greenwashing of financial bonds. We'll further diversify green bond types and broaden financing channels for green industries.

Third, we'll strengthen interdepartmental coordination. We'll establish and improve a regular information-sharing mechanism and refine the support system for green finance policies. We aim to enhance the systematicity, consistency, authority, and enforceability of green finance standards.

That's all I have to say about green finance. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thanks to all the speakers and to all our media friends for participating. Goodbye, everyone.

Translated and edited by Wang Ziteng, Wang Wei, Gong Yingchun, Ma Yujia, Mi Xingang, Zhou Jing, Liao Jiaxin, Liu Sitong, Yan Xiaoqing, Zhang Rui, Zhang Tingting, Li Huiru, Xu Kailin, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Daoxi, vice minister of emergency management

Mr. Zhou Tian, vice minister of emergency management and administrator of the National Fire and Rescue Administration

Mr. Huang Jinsheng, a member of the Party committee of the Ministry of Emergency Management and administrator of the National Mine Safety Administration

Mr. Wang Kun, a member of the Party committee of the Ministry of Emergency Management and administrator of the China Earthquake Administration

Chairperson:

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

Date:

Sept. 4, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Wang Daoxi, vice minister of emergency management; Mr. Zhou Tian, vice minister of emergency management and administrator of the National Fire and Rescue Administration; Mr. Huang Jinsheng, a member of the Party committee of the Ministry of Emergency Management and administrator of the National Mine Safety Administration; and Mr. Wang Kun, a member of the Party committee of the Ministry of Emergency Management and administrator of the China Earthquake Administration. They will provide briefings on relevant developments and take your questions. 

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

Wang Daoxi:

Laides and gentlemen, good morning. 

First of all, I would like to express my gratitude for your long-term interest in and support for emergency management work. Today, my colleagues and I will speak with you about how emergency management efforts have promoted high-quality development. 

Ensuring both development and security is a major principle underlying the governance of the Communist Party of China (CPC). Since the 20th CPC National Congress, General Secretary Xi Jinping has made a series of new conclusions on how to ensure high-quality development and greater security reinforce each other, as well as better safeguarding China's new pattern of development with new security architecture. In line with General Secretary Xi Jinping's important instructions as well as the decisions and deployments of the CPC Central Committee and the State Council, we have prevented risks, ensured safety and maintained stability with an ever-present sense of responsibility. These efforts have led to a favorable security environment for high-quality economic and social development, which can be summarized in four respects:

First, we have prioritized prevention and maintained a stable security situation. With regards to effective prevention as a fundamental principle and leveraging the functions of the State Council's Work Safety Commission, we have focused on strengthening responsibility implementation and addressed root causes of workplace safety accidents, resolutely preventing major and serious accidents. We have clarified responsibilities across the entire chain for "one matter," launching special initiatives on gas safety and electric bicycle safety as well as clearing fire escape routes. Across the country, 12.32 million illegally installed burglar-proof windows and billboards have been dismantled or modified, and 6.48 million new charging ports have been added in existing residential complexes and open public spaces. We have put equal emphasis on strict law enforcement and regulation as well as enthusiastic guidance and services, offering more timely assistance to address urgent public concerns. For example, we have established a "paired-up assistance" mechanism for key regions, dispatched expert teams to key industries and proactively helped enterprises solve real problems early on to support their safe development. As of the end of August this year, compared to the same period last year, the total number of workplace safety accidents nationwide decreased by 25.7%, with major and serious accidents down by 45.5%.

Second, we have enhanced relevant systems, making rescue operations more efficient. A comprehensive committee for disaster prevention, mitigation and relief has been established, and efforts have been made to enhance across-the-board coordination for disaster response. We have created a mechanism of command and coordination by the national emergency response headquarters, and built up an interconnected emergency response information network. We have accelerated the development of a safety risk monitoring and early warning system, and refined emergency response plans to ensure preparedness. Last year, additional treasury bonds were issued to support post-disaster recovery and reconstruction as well as reinforce disaster prevention, mitigation and relief capacities, with natural disaster response enhancement projects vigorously implemented. This year, China experienced multiple instances of prolonged heavy rainfall, breaking several hydrological and meteorological records and causing severe disasters in some regions. In response, we organized extensive flood prevention and combating efforts, pre-allocated relief funds in cooperation with the Ministry of Finance, and dispatched working groups to the front lines in order to provide guidance and assistance and resolutely win this tough battle. The China National Comprehensive Fire and Rescue Team worked tirelessly to rescue trapped individuals, demonstrating their essential role in emergency response and illustrating the true image of firefighters.

Third, we have focused on fortifying the foundation, significantly improving intrinsic safety. We have taken strengthening the foundation as a focus in our current emergency management work, addressing both the symptoms and root causes of problems. Maintaining order in accordance with the law, we have promoted the formulation and revision of several laws and regulations, including the Emergency Response Law and the Regulations on Coal Mine Safety. We have released a series of industry standards, integrating safety requirements into all stages including planning, project initiation, construction and operation. We have also adhered to promoting safety through advancements in science and technology, implementing the "smart emergency response" strategy. We have vigorously promoted mechanization and automation in high-risk industries to reduce the need for manual labor, leveraging information technology to drive emergency management modernization. Additionally, we have been committed to strengthening safety through quality workforce development. We have initiated an emergency response technology talent program and made great efforts to cultivate emergency management talent. At the same time, we have actively supported the development of community-level emergency management capacities, directing more resources and strengths to lower-level governments in order to reduce their burden while empowering them for emergency response.

Fourth, we uphold social co-governance, continuously strengthening safety by relying on the public. Development is for the people and relies on the people. We have fully mobilized enthusiasm across all sectors of society, encouraging widespread participation in public security management. We have regulated and guided the development of social emergency response teams and promoted the involvement of commercial insurance, credit supervision, and safety evaluation institutions in accident prevention and disaster relief, steadily bolstering collective prevention and control efforts. Since the beginning of this year, more than 310,000 public reports on workplace safety have been filed nationwide, with over 30 million yuan in rewards distributed. We have also publicly commended several exemplary cases where disaster information personnel successfully sounded alarms and organized evacuations to avoid danger. We have expanded various channels to cultivate a culture of safety, continuously intensified emergency knowledge popularization, and launched innovative initiatives such as Work Safety Month, Fire Safety Month, and Disaster Prevention and Mitigation Awareness Week. Additionally, we've bolstered safety training for key personnel of enterprises in high-risk industries, aiming to ensure that everyone prioritizes safety and knows emergency response.

The third plenary session of the 20th CPC Central Committee outlined strategic arrangements to strengthen the national security system and improve public security governance mechanisms. These plans provide a clear direction and momentum for deepening reforms in emergency management. Moving forward, we will fully implement the spirit of the plenary session with a reform and innovation mindset, adhering to the principle of balancing development with security. Our priorities are to fortify systems, refine mechanisms, enhance grassroots capabilities, and boost overall capacity. We will actively promote the modernization of emergency management systems and capabilities. Our goal is to effectively transform the strategic deployment of further deepening reform comprehensively into practical actions that advance the reform and development of emergency management.

That's all for my introduction. My colleagues and I are now ready 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.

N Video from Nanfang Metropolis Daily:

The third plenary session of the 20th CPC Central Committee has made strategic plans for further deepening reform comprehensively and set forth specific emergency management reform requirements. What measures will the Ministry of Emergency Management take to implement these requirements and further enhance the capacity and level of high-quality development?

Wang Daoxi:

Thank you for your question. I will answer it. The resolution from the plenary session includes a dedicated chapter on advancing the modernization of the national security system and capacity, as well as a specific section on improving public security governance mechanisms. This represents a major strategic initiative to implement a holistic national security approach. It aims to balance development with security and address major risks and challenges, thereby ensuring steady and sustained progress in the cause of the Party and the country. Based on the full implementation of the plenary session's decisions and plans, we will focus on three key areas:

First, we will focus on enhancing our rescue and relief capabilities. We are accelerating the integration and reform of national comprehensive fire and rescue teams to improve the response and support system for major public emergencies. We aim to quickly establish six regional rescue centers in northeast, north, central, southeast, southwest and northwest China, creating key powerful forces tailored to each region's disaster characteristics. To meet practical demands under extreme conditions such as road blockages, network failures, and power outages, we are increasing the development and deployment of advanced specialized equipment for aerial rescue, water rescue, personnel search and rescue, emergency communications, and engineering disaster response. We are also improving mechanisms for rapid allocation and delivery of disaster relief supplies to meet the diverse needs of affected populations, particularly for older people, women and children. Our goal is to ensure that rescue and relief efforts are not only swift but also compassionate. To refine the emergency response command mechanisms under the overall safety and emergency response framework, we will expedite the revision and issuance of the National Emergency Management System Plan and related specialized plans. This will further strengthen the Party's leadership and command in emergency management, clarify the responsibilities of relevant departments, and better ensure the optimization, coordination and efficiency of various forces and resources. At the national level, we have already established the emergency command headquarters. We will guide local authorities in building robust emergency command centers at the provincial, municipal and county levels, complemented by improved communication networks and information systems. This will enhance the comprehensiveness, systematization and professionalism of emergency command operations.

Second, we will focus on improving the quality of risk prevention. To enhance the mechanisms for identifying and addressing workplace safety risks and for conducting retroactive liability investigations, we will continuously optimize criteria for determining major hidden dangers. We'll improve long-term mechanisms for expert and specialized technical service organizations to participate in risk identification and mitigation, standardizing and professionalizing the process. We will also help enterprises establish and enhance regular self-inspection and hazard mitigation mechanisms, encouraging proactive risk identification and prevention to ensure safe development. Additionally,, we will intensify efforts to ensure the fulfillment of investigation and rectification responsibilities. This includes improving local government oversight systems for major accident risk prevention, and establishing mechanisms for relevant departments to review and approve the resolution of risk warnings. Entities that fail to investigate and rectify obvious major risks, especially those causing significant casualties, will be held accountable in accordance with laws and regulations.

Third, we will focus on strengthening our efforts at the primary level. In February, guidelines on enhancing primary-level emergency management capabilities were approved at the fourth meeting of the Commission for Further Reform under the CPC Central Committee. We are now swiftly modifying and improving these guidelines in line with the meeting's requirements and the guiding principles of the third plenary session of the 20th CPC Central Committee. After the guidelines are released, we will work with relevant departments to implement them thoroughly. We'll continuously enhance primary-level emergency management organizations' capabilities for command, risk prevention, practical response, emergency handling, and ensuring supplies and resources. By doing so, we will strengthen the first line of defense in emergency management. The first national comprehensive natural disaster risk survey has provided a clear picture of the hidden hazards across the country. We will continue to utilize the information gathered by the survey, controlling risks at their source and promoting meticulous risk management. These efforts will constantly improve comprehensive disaster reduction capacity at the primary level. Thank you.

China Media Group:

We've noticed that following the reform and restructuring of the fire and rescue service, its functions have expanded and its responsibilities have increased, presenting many new challenges. How has the national comprehensive fire and rescue team advanced its organizational structure and enhanced its professional rescue capabilities in recent years? Thank you.

Wang Daoxi:

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

Zhou Tian:

Thank you for your question. The functions of the nation's comprehensive fire and rescue service have significantly expanded since the reform and restructuring began. The annual number of emergency calls we responded to increased from 1.18 million in 2018 to 2.14 million in 2023, nearly doubling in five years. To meet these expanded responsibilities, we have faithfully implemented the important instructions of General Secretary Xi Jinping. We've further advanced the development of our organizational structure based on China's specific conditions and enhanced our professional rescue capabilities to meet real-world needs. By doing so, we have effectively accelerated the integration, transformation and modernization of our fire and rescue service, significantly increasing our operational effectiveness.

To further advance our organizational structure, we have intensified the urban-rural fire and rescue network by planning and building fire and rescue stations, special-duty stations and government professional firefighting teams. We've also improved enterprises' professional firefighting teams and small-scale fire stations, while guiding localities to establish 24,000 new fire stations in towns and subdistricts, staffed by over 95,000 personnel. We have also formed mobile teams, dispatching over 4,900 servicemen to 20 provinces, achieving coverage across all provincial-level regions and enabling nationwide mobility for major disaster-relief efforts. We have established six state-level regional emergency response and rescue centers in Hebei, Heilongjiang, Hubei, Guangdong, Sichuan and Gansu provinces. These serve as regional aviation rescue bases, emergency supply centers, and elite rapid-response forces, meeting regional disaster and accident response needs. We have focused on strengthening specialized capabilities, establishing over 5,000 specialized rescue teams for scenarios such as high-rise buildings, underground facilities, large-span spaces, hazardous chemicals, earthquakes, water rescues, geological hazards, and ice and snow conditions. Special-duty teams, as well as fire and rescue units, have also been established and enhanced. Based on local needs, some localities have established specialized teams for mountain, ice field, and high-altitude rescues. We've also set up six cross-border forest firefighting and rescue units, as well as 12 special rescue corps. The operational areas of two aviation rescue teams, in Daqing and Kunming, now cover 10 provinces.

In terms of improving professional rescue capabilities, we have promoted the building of national, provincial and municipal earthquake and water rescue training bases, increased the training of special rescue talents and have trained more than 83,000 teachers and technical personnel. We have ramped up efforts to launch practical training as well as have held the fire and rescue professional skill competition for firefighters and the skill competition for fire rescue dogs. We have kept a close eye on both major disasters and extremely complex disasters, enhanced the sharing of information and the joint operation of forces, deepened on-site familiarization drills and expert-assisted decision-making, and have achieved integrated dispatch, command and coordinated emergency response. We have strengthened the application of new technological equipment, accelerated the upgrading of conventional equipment, promoted research and development of high-precision "trump card" equipment and intelligent equipment, as well as have developed practical application technology. Over the past five years, the professional rescue capabilities of our fire and rescue teams have steadily improved, especially in the rescue operations of major disasters and accidents such as the 6.2-magnitude earthquake that jolted Jishishan county, Gansu province, the severe floods in the Beijing-Tianjin-Hebei region and the dike breach at the lake levee in Tuanzhou township, Hunan province, demonstrating the central role of the main force of emergency rescue and the national team.

Next, we will regard combat capability as the criterion, and rally firefighting forces and shoulder firefighting responsibilities to protect people's lives and property and promote economic and social high-quality development. Thank you.

Red Star News:

Improving the seismic resistance of buildings is one of the effective ways to reduce damage from earthquake. We have noticed that the China Earthquake Administration (CEA) is organizing the compilation of a next-generation seismic ground motion parameter zonation map to provide national standards for construction and anti-seismic design. Could you please brief us on the details of this project? Thank you.

Wang Daoxi:

I will invite Mr. Wang Kun to answer this question.

Wang Kun:

Thank you for your question. China is a country prone to earthquake disasters and has a very complex geological structure, so the risk of seismic activity varies significantly from region to region. Seismic ground motion parameter zonation is the division of territories into several zones according to the degree of earthquake hazard, and to set different earthquake fortification requirements for each zone. The seismic zoning map mainly provides standards for the planning, site selection and earthquake fortification of general construction projects, as well as a basis for economic and social development planning, territorial space planning, urban and rural planning and the formulation of social preventive measures, as well as emergency preparedness and response.

China has developed five generations of seismic ground motion parameter zonation maps since 1957. The first three generations of seismic zoning maps were used as "references" and "basis," and the fourth and fifth generations were used as "mandatory national standards." Therefore, it can be seen here that our earthquake fortification requirements are constantly improving. In 2022, the CEA officially launched the compilation of a new-generation seismic zoning map. The new-generation seismic zoning map takes risk prevention as the overall objective, featuring "multi-probability, broadband, high precision and integration of land and sea." It is expected to be completed by the end of 2025. At the same time, the revision of Seismic Ground Motion Parameter Zonation Map of China, a mandatory national standard, will commence. At present, all work is progressing smoothly. First, the collection and collation of basic data has been generally completed. I will elaborate here with some data. We have built a basic database containing 14,000 destructive earthquake catalogs, 230,000 small earthquake catalogs and 11,000 sets of strong vibration observation records of 1942 earthquakes in China and neighboring areas. Second, we have completed a national seismic tectonic environment analysis and potential seismic source division, as well as have carried out the construction of three-dimensional seismic source models in strong seismic zones, such as the Tangshan earthquake and the Tancheng earthquake. Third, we have established a series of key models such as seismic activity, seismic motion prediction and site seismic motion, and have built technical methods for seismic ground motion hazard calculations. Fourth, we have carried out integrated pilot projects with key models and technologies in representative areas such as the North China Plain as well as Sichuan and Yunnan provinces, and have completed the seismic hazard calculations in pilot areas.

The new ground motion parameter zoning map is expected to improve the country's seismic safety standards, based on lessons from the 6.2-magnitude earthquake in Gansu's Jishishan, the 7.8-magnitude earthquake in Türkiye and the 7.3-magnitude earthquake in the Taiwan region's Hualien. For eastern China's supertall structures, densely populated large commercial complexes, and other facilities, we've placed greater emphasis on the effects of long-period ground motion and the amplification caused by deep sedimentary basin layers. In western China's regions with concentrated large fault zones, we've adopted a three-dimensional epicenter model and a corresponding ground motion model to more accurately assess seismic activity levels near active faults. In short, this new generation of zoning maps will give full play to scientific and technological innovation and the practical application of research outcomes. It will better serve earthquake resistance efforts in general construction projects and formulation of various response plans, while effectively supporting earthquake disaster risk identification, assessment, and the development of a more earthquake-resilient society. Thank you.

The Poster News APP:

At the beginning of this year, the Work Safety Committee of the State Council issued the Measures on Prevention and Containment of Major and Serious Workplace Accidents in Mines. Could you please provide an update on the implementation of these measures? Thank you.

Wang Daoxi:

Mr. Huang will answer your question.

Huang Jinsheng:

Thank you for your concern about mine safety. Since the beginning of this year, the Ministry of Emergency Management and the National Mine Safety Administration have prioritized implementing measures nationwide and carried out special campaigns on regulation learning, responsibility clarification, solid implementation and safety assurance. We asked relevant departments to bear their responsibilities and implement the measures precisely, which effectively promoted stable and improved safety conditions in the country's mines. No major or serious workplace accidents occurred in mines after the measures' introduction. Through the end of August, the number of workplace accidents in mines and the death toll from those accidents decreased by 25.6% and 31.99%, respectively.

In terms of safety responsibility, we refined tasks for responsible parties, clarifying 15 tasks for enterprises, 15 for supervision departments, 15 for state administration, and six for local Party committees and governments, and guided them in implementing these tasks.

In terms of disaster risk prevention and control, we published a list of 1,128 mines with serious disaster risks, conducted special inspections of hidden hazards at 2,122 mines and carried out specialized water damage prevention inspections at 821 mines. By doing so, we identified and addressed 11,257 major potential safety hazards. Additionally, evacuation protocols during extreme weather warnings, evacuating 130,000 miners. We spared no effort to prevent major disasters and accidents.

In terms of cracking down on illegal activities, we carried out special inspections targeting concealed workplaces in coal mines, suspending operations in 725 places nationwide. During a campaign targeting security monitoring system fraud, 291 enterprises were exposed, 3,582 enterprises and 8,533 people in charge of enterprises were admonished, and 399 people were prosecuted.

In terms of improving safety awareness, we organized video training courses on workplace safety in mines, with more than 13,000 people participating and more than 700,000 studying online. These efforts enhanced safety production awareness among workers.

In terms of national mine safety supervision, we conducted safety oversight in Shanxi and Heilongjiang provinces. This effort led to the implementation of 388 and 68 new regulatory measures in these provinces, respectively. The mine safety supervision system carried out 5,558 governmental oversight actions, issued 2,069 rectification letters and supervisory recommendations, and admonished 1,697 people, which showcased the significance of national supervision in mines.

Mining remains a crucial yet hazardous industry with significant safety challenges, given its inherent high risks and fragile foundation. Looking forward, we will follow the guiding principles of the third plenary session of the 20th CPC Central Committee. We will advance the reform and development of workplace safety in mines by solving problems in individual cases and across the whole industrial chain. Workplace safety improvements will ensure a stable and secure supply of energy and mineral resources, supporting the country's high-quality economic and social development. Thank you.

China News Service:

In 2018, the CEA launched the China Seismic Experimental Site (CSES) project to study earthquake formation patterns in the country. Could you please provide an update on the progress of this project? How has its construction leveraged the supportive role of seismic science and technology, and how is it helping to modernize earthquake prevention and disaster alleviation? Thank you.

Wang Kun:

Thank you for your interest. The International Conference for the Decade Memory of the Wenchuan Earthquake was held on May 12. 2018. President Xi Jinping sent a letter to the conference, emphasizing the importance of scientifically understanding the laws of disasters and effectively reducing disaster risks. The central government also announced the construction of the CSES at the conference. The CEA's leading Party members group has firmly implemented the spirit of General Secretary Xi Jinping's letter, along with the disaster prevention, mitigation, and relief concept of "Two Commitments and Three Shifts." We are committed to integrating preventive efforts with disaster resistance and relief measures, while balancing regular mitigation and non-regular relief operations. This concept emphasizes a shift from post-disaster relief to pre-disaster prevention, from addressing single types of disasters to comprehensive mitigation, and from merely reducing losses to minimizing risks. Keeping in line with socioeconomic requirements and market rules and relying on science and technology, the CEA has strived to fulfill the overall goals of facilitating earthquake prediction, ensuring energy security, improving the resilience of cities, and mitigating disaster chains. Drawing on both domestic and international experiences, we are sparing no efforts to advance the construction of the CSES. 

The CSES is a major sci-tech infrastructure project to be constructed during the 14th Five-Year Plan period and the world's only seismic research facility focused on systematic studies of strong continental earthquakes. In 2023, the budgetary estimates were approved, and construction is now in full swing. The plan is to build 1,769 observation stations across Sichuan and Yunnan. These stations will monitor seismic activity, ground deformation, geochemical changes, and gravity fluctuations. Once completed, the CSES will be able to identify potential earthquake sources that may induce 6.5-magnitude or stronger earthquakes in block boundary belts. 

While constructing the CSES, we've insisted on delivering outcomes and providing services. Since 2018, the project has produced 15 scientific results, such as high-precision velocity structure models and Mohorovičić discontinuity models. We collaborated with the University of Science and Technology of China to launch the world's first AI-powered earthquake monitoring system, capable of accurately estimating earthquake source mechanism parameters within one second. We've also developed an AI-based automatic earthquake cataloging system, which triples the efficiency of manual work. We recently partnered with the National Supercomputing Center in Chengdu, Tsinghua University and other institutions to release the world's first large-scale seismic wave model with over 100 million parameters. These achievements provide crucial sci-tech support for enhancing smart earthquake monitoring and prediction, as well as modernizing earthquake prevention and disaster mitigation efforts.

We are prioritizing openness and cooperation in the CSES's construction and operation. Scientists from 13 countries, including the U.S., Russia, the Netherlands, Egypt, and Algeria, have contributed to the CSES's scientific research. Research universities, such as Peking University, the University of Science and Technology of China, and the Southern University of Science and Technology, have collaborated with the provincial governments of Sichuan and Yunnan in the construction of the project. Over 3,000 experts from China and abroad have attended the CSES annual conferences for exchanges in recent years, enhancing the project's academic influence. 

China aims to become the global leader in earthquake science and technology by 2035. To achieve this goal, Chinese seismologists will uphold and advance the scientific spirit, develop the CSES into a global hub for seismology and international cooperation in earthquake science and technology, as well as a global talent pool in this field. Efforts will be intensified to enhance China's self-reliance and strength in earthquake science and technology, facilitating Chinese modernization by providing high-standard earthquake safety services. Thank you. 

Cover News:

What measures have been taken to tackle hidden fire safety risks in key sectors while promoting a preemptive approach to public security governance? What progress has been made? What do you plan to do next? Thank you.

Wang Daoxi:

Mr. Zhou will answer these questions.

Zhou Tian:

Thank you for the questions. Fire safety is a crucial component of public security and directly impacts people's daily lives and work. We consistently uphold the principle of "people-first, life-first," closely monitoring key areas and critical links and implementing effective measures to address hidden fire safety risks. 

In terms of formulating regulations and standards, we strengthened efforts to address problems at their source and improved fire safety-related regulations and standards. We issued 23 sets of fire safety regulations, including those on the management of social fire protection technical services, fire safety management in high-rise civil buildings, and trial measures for fire safety management in leased factories and warehouses. We ensured the implementation of fire safety-related responsibilities and made strict and clear requirements regarding fire safety management. In collaboration with market regulation and urban-rural development authorities, we issued 68 national standards and 35 industry-specific standards for fire safety. These include the general code for fire protection of buildings and constructions, guidelines for preparing and implementing firefighting and emergency evacuation plans for workplaces, and rules for fire safety management in large-scale commercial complexes, providing technical support for social fire safety management. 

Regarding specialized rectification, we have adopted a "whole-chain" supervision method to address pressing real-world issues, continuously advancing concentrated efforts to rectify safety hazards related to electric bicycles and fire protection products. Concurrently, we have inspected 955,000 high-rise buildings and addressed 488,800 identified hazards. We have advanced standardized fire safety management in large commercial complexes exceeding 50,000 square meters and checked risks in labor-intensive enterprises within industrial parks, factories and mixed-use business sites with multiple operations and ownerships. We launched a campaign to clear fire escape routes and addressed over 3.76 million issues related to blocked evacuation passages, emergency exits and fire lanes.

In terms of public awareness education and training, we have intensified our efforts to promote fire safety education in businesses, rural areas, communities, schools and homes. For example, we organized summer fire safety campaigns and livestreamed fire safety classes for primary and middle schools. We also partnered with postal departments to distribute fire safety materials to households. To address issues like the illegal transfer of contracts, subcontracting, unauthorized hot work, unsafe operations and chaotic on-site management, we produced three specialized fire safety training videos for manufacturing plants, medical institutions and dining establishments. These videos were widely distributed to relevant organizations for training purposes.

To empower organizations to better manage their own fire safety, we have developed fire prevention guidelines, inspection instructions and management regulations tailored to new sectors and emerging industries. We have provided model inspection training, on-site guidance, appointment-based training services and follow-up technical assistance to improve organizations' capabilities in identifying, checking and rectifying fire hazards. We have focused on high-risk areas such as small-scale businesses, mixed-use facilities, and densely populated areas. In these areas, we have focused on key personnel and emergency response teams in organizations, and conducted large-scale fire safety drills, promoting knowledge and skills needed for fire prevention and self-rescue.

Moving forward, we will continue to enhance our public safety system and strengthen our fire safety management capabilities. We aim to develop a comprehensive fire safety work method that involves various departments and encourages public participation. These efforts are designed to support and facilitate high-quality social and economic development. Thank you for your attention.

China Emergency Management News:

Developing intelligent mine is crucial in promoting high-quality development in the mining industry. What progress has China made in developing intelligent mines? What measures will be taken in the future? Thank you.

Huang Jinsheng:

Thank you for your interest in intelligent mine construction, which is a specific measure for implementing important proposals put forward by General Secretary Xi Jinping regarding new quality productive forces. It also serves as a crucial means of shifting mine safety management towards a more proactive and preventive approach. In recent years, we have implemented a series of measures and introduced many policies to foster significant advancements in intelligent mine construction. 

To enhance top-level design, this April, the National Mine Safety Administration, in conjunction with the Ministry of Emergency Management, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Ministry of Education, issued the Guidelines on Accelerating Intelligent Mine Development and Enhancing Mine Safety. This document provides a systematic plan from a top-level design perspective.

To strengthen technological innovation, we have approved the establishment of five key laboratories related to intelligent mines under the National Mine Safety Administration. We have coordinated to list five projects, such as intelligent tunneling and open-pit autonomous mining, in key national research and development programs. We have also advanced collaboration among mine enterprises, equipment enterprises, universities, and research institutes and achieved breakthroughs in research of key technologies and equipment.

To ensure standard-led development, we have released a system framework for intelligent mine standards and guided relevant departments to set up and revise related standards and specifications. We have issued a specification for intelligent mine data fusion and sharing, which has broken down data silos and eliminated information barriers.

In terms of increasing policy incentives, we have promoted support with approved increase of coal production capacity, the standardization of workplace safety, the central government budget for investment and the withdrawal and use of enterprise workplace safety expenses, and have advanced the inclusion of intelligent equipment in the scope of support for large-scale equipment renewal.

In terms of adhering to demonstration and guidance, we have worked with the National Energy Administration to launch the construction of intelligent demonstration coal mines and have worked with the Ministry of Industry and Information Technology to solicit and announce two batches of 92 typical application scenarios for mining robots. In recent years, a number of typical cases have emerged, such as the Yujialiang Coal Mine of CHN Energy, the Dahaize Coal Mine of China Coal Group, the Sanshandao Gold Mine of Shandong Gold Group and the Xingshan Iron Mine of Shougang Mining Corporation.

With joint efforts from all parties, positive progress has been made in the intelligent construction of mines. By far, the country has built 1,642 intelligent mining workings, the number of coal mines with intelligent workings has reached 859, with over 30 kinds of 2,640 robots and 1,328 unmanned vehicles in use, as well as 17,000 fixed positions achieving unmanned operations.

In the next step, we will continue to offer more support in terms of policy standards, scientific and technological innovation as well as the application of demonstration, so as to advance the intelligent construction of mines to a new level and to lay an important foundation for the intrinsic safety of mines. Thank you.

Xing Huina:

One last question, please.

Phoenix Satellite Television:

As we all know, this year, affected by extreme weather, many areas in China have been hit by rainstorms and floods, with some areas seriously affected. What targeted measures have been adopted by the National Commission for Disaster Prevention, Reduction and Relief and the Ministry of Emergency Management (MEM) in regards to disaster relief and assistance? What appropriate arrangements and assistance have disaster victims received? Thank you.

Wang Daoxi:

Thanks to the reporter from Phoenix Satellite Television for your concern and attention to flood prevention and resistance and disaster relief. As you mentioned, this year's climate trends deviated from the average level of normal years. There were many heavy rainfalls, lasting for extended periods of time. Flooding of rivers occurred early and developed rapidly. Floods, hailstorms and geological disasters severely affected a wide range of areas and caused heavy losses to certain areas. Therefore, the task of disaster relief and assistance is very arduous. To ensure that disaster victims receive appropriate arrangements and assistance, the National Commission for Disaster Prevention, Reduction and Relief and the MEM have mainly taken the following targeted measures, which can be summarized as "three focuses."

First, we have focused on disaster prediction and activated disaster relief responses in an efficient and orderly manner. Before the flood season, we have actively advanced the building of a disaster relief planning system, strengthened the professional training of disaster relief and disaster information delivery teams, enhanced the pre-positioning of disaster relief materials to the front line of rural areas and have improved the disaster relief and assistance capacity at the grassroot level. During disasters, we have predicted development trends of disasters as well as needs for disaster relief and assistance, activating disaster relief emergency response in advance. The national disaster relief response has been activated for a total of 21 times this year. After disasters, we have dynamically adjusted response levels according to changes in disaster situations and have upgraded response levels for five times, especially in response to the disaster situation in Hunan, we promptly upgraded the disaster relief response to the second level. We have given a coordinating role to the National Commission for Disaster Prevention, Reduction and Relief, stepped up joint consultations and assessments and have organized and dispatched joint working groups to key cities and counties deeply affected by disasters and facing difficulties in relief efforts to offer guidance and help for disaster relief and post-disaster recovery and reconstruction. Overall, our response to disaster relief has become more timely, more frequent and involves more practical measures, continuing to send a strong signal that "the country is in action."

Second, we have focused on the needs of disaster-hit areas and quickly allocated central disaster relief funds and materials. Since the beginning of the flood season, we have worked with the Ministry of Finance to allocate nine batches of 3.125 billion yuan for central disaster relief funds in advance, which fully ensures the urgent need for disaster relief with higher allocation efficiency and greater support for disaster relief. We have also coordinated central and local reserve resources and worked with the National Food and Strategic Reserves Administration to allocate 21 batches of 473,200 pieces of central disaster relief materials, including folding beds, bedding and family emergency kits, to meet the needs of the public at the different stages of temporary refuge, relocation and transitional resettlement. In response to disaster conditions in various areas and urgent needs of the people, we have repeatedly activated the government-society coordinated support mechanism for emergency supplies and have allocated a large supply of food, daily necessities and other scarce materials to better ensure people's basic livelihood. 

Third, we have focused on key links and have worked at the front line to strengthen supervision and guidance. We have organized a number of inspection groups, expert groups and steering groups to coordinate and resolve difficulties and problems on the spot, publicized and explained assistance policies face to face and guided local governments to carry out disaster relief and assistance work. In particular, we have paid close attention to the management and services of resettlement sites, guided the orderly organization of material distribution and have strived to ensure basic necessities such as food and lodging for disaster victims, especially ensuring that there is food, water, clothing, temporary safe shelter and access to timely medical treatment. In addition, we have also coordinated to provide medical, cultural and psychological services to help disaster victims feel secure and comfortable. We have also seen in many resettlement sites that in spite of suffering disasters, the people have actively helped themselves and each other, and some have even willingly participated in volunteer services, which is very touching. At present, the post-disaster recovery and reconstruction work is in rapid progress, including emergency repair of infrastructure in disaster-hit areas and reconstruction and repair of collapsed and damaged housing. We will continue to follow up and strengthen guidance. I believe that with the joint efforts of all parties, disaster-hit areas will promptly be rebuilt into beautiful homes! Thank you!

Xing Huina:

Well, today's briefing is hereby concluded. Thanks to all speakers and friends from the media. Goodbye everyone.

Translated and edited by Xu Xiaoxuan, Wang Wei, Liu Caiyi, Liu Sitong, Li Xiao, Ma Yujia, Yan Bin, Yuan Fang, Lin Liyao, Zhang Junmian, Liu Qiang, Xu Kailin, Liu Jianing, Li Huiru, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Li Chunlin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Li Fei, vice minister of commerce

Mr. Ren Duanping, director general of the Business Registration Bureau of the State Administration for Market Regulation (SAMR)

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

Chairperson:

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

Date:

Aug. 30, 2024 

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this briefing held by the State Council Information Office (SCIO). The Opinions on Refining the National Market Access System issued by the General Office of the Communist Party of China (CPC) Central Committee and the General Office of the State Council has been publicly released. Today, we have invited Mr. Li Chunlin, vice chairman of the National Development and Reform Commission (NDRC), and Mr. Li Fei, vice minister of commerce, to introduce the relevant information of the opinions and answer your questions. Also attending today's press conference are Mr. Ren Duanping, director general of the Business Registration Bureau of the State Administration for Market Regulation (SAMR), and Mr. Wang Shancheng, director general of the Department of Comprehensive System Reform of the NDRC.

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

Li Chunlin:

Good morning. Thank you very much for your long-term interest in and support for the development and reform work. I am also very pleased to have this opportunity to speak with you today on refining the national market access system.

As an important document for implementing the guiding principles of the third plenary session of the 20th CPC Central Committee, the General Office of the CPC Central Committee and the General Office of the State Council recently issued the Opinions on Refining the National Market Access System, the full text of which was released to the public on Aug. 21. Now, I will briefly introduce the background, significance and main content of the opinions.

Market access is a prerequisite for business entities to participate in economic activities. Implementing a unified market access system is a major decision and deployment made by the CPC Central Committee and the State Council. The third plenary session of the 18th CPC Central Committee proposed the implementation of a unified market access system, the 19th CPC National Congress clearly stated the need to implement a negative list system across the board for market access, and the 20th CPC National Congress further identified the market access system as one of the basic systems of the market economy. In recent years, the NDRC, together with the Ministry of Commerce, the SAMR, and other relevant departments, has resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council, steadily promoting the development of the market access system. In 2018, the nationwide unified negative list for market access was issued, making China the first major economy to truly establish such a system. Four versions of the list have been released, with the number of items reduced from 151 in the 2018 version to 117 in the 2022 version, firmly establishing the "one list nationwide" management model for market access. Efforts have been made to further relax market access restrictions, with special measures implemented in Hainan, Shenzhen, the Guangdong-Macao in-depth cooperation zone in Hengqin, and Nansha in Guangzhou. A series of substantial reform measures have been introduced in areas such as commercial aerospace, international trading centers for electronic components and integrated circuits, unmanned systems in sea, land and air, and the modern seed industry. Market access efficiency evaluations have been carried out to promote reforms and improve the quality and efficiency of access services, ensuring the implementation of the market access system. Overall, the current market access system framework has been accelerated, supporting systems have been gradually improved, market access barriers have been effectively broken, and market dynamism and vitality have been further stimulated. This provides strong support for building a high-standard market system, a unified national market, and a high-standard socialist market economy.

As China enters a stage of high-quality development, higher requirements have been put forward for building a more refined market access system. The third plenary session of the 20th CPC Central Committee clearly required "refining the market access system to ensure greater accessibility for new forms of business and new sectors" and "doing more to remove barriers to market access." The opinions implement the guiding principles of the third plenary session, timely elevating the reform achievements of the market access-related systems and mechanisms to institutional arrangements, attracting widespread attention from society. This is also the first policy document issued at the central level specifically on improving the development of the market access system, which has important guiding significance.

The full text of the opinions consists of 10 articles, around 2,300 words, and is concise but rich in content. It revolves around "establishing an open, transparent, standardized and orderly market access system that fosters fair competition, clear rights and responsibilities, and robust oversight," making the latest deployments in aspects such as improving the management model of the negative list for market access, scientifically determining market access rules, setting reasonable market prohibition and permission access items, clarifying the adjustment procedures for market access management measures, strengthening the coordination of domestic and foreign investment access policies, orderly relaxing restrictions on access to the service industry, optimizing the market access environment for new business forms and new fields, expanding pilot programs for market access relaxation, ensuring the implementation of the market access system and enhancing organizational implementation. There are four highlights in the opinions:

First, we will continue improving list management to clarify the boundaries of government roles. The negative list mechanism serves as a critical tool for enhancing the market access system. It's essential to clearly define the government's role in market access, fully leverage the market's decisive role in resource allocation, and solidify these principles into a systematic framework. This approach expedites the shift from pre-approval to ongoing and post-event supervision. The opinions reinforce support for the "one list nationwide" model, addressing access rules, the determination of access items, and the procedures for adjusting access measures. This unified approach ensures the list's consistency, standardization, and authority, promoting more regulated market access management and better ensuring lawful and equal market entry for all business entities.

Second, we'll continue easing access restrictions to invigorate market potential and vitality. Market access is the first gateway to economic activity, and it's essential to progressively loosen these restrictions to facilitate the smooth flow of resources and foster a broader market space. We will implement a policy of easier entry coupled with strict oversight, opening up competitive sectors and significantly reducing access barriers for businesses. Furthermore, we will systematically ease access restrictions in the service sector. In particular, we will gradually cancel restrictions in those service industries that do not involve national security or social stability concerns, where robust market competition can improve the quality of supply.

Third, we will continue optimizing the market access environment and enhancing market entry efficiency. Market access is crucial for translating scientific and technological advances into productivity. We need to take a forward-looking approach in establishing a market access framework for new business models and sectors to better support the development of new quality productive forces. For the first time, the opinions target 10 emerging fields, including deep-water exploration, aerospace, aviation, life sciences, new energy, and artificial intelligence. This initiative encompasses guiding principles, platform support, the application and commercialization of research outcomes, and global research collaboration. Together, these efforts aim to tackle bottlenecks inhibiting the profound transformation and upgrading of our industrial systems, promoting innovative allocation of production factors and continuously boosting market access efficiency.

Fourth, we will continue expanding pilot programs for market access and dismantling implicit barriers to entry. It's vital to leverage reform trials and employ special policy tools to break down entry barriers in certain sectors and areas. The opinions require that we make deployments focusing on key areas and key productive forces in strategic emerging industries and future industries. We will use regulations, policies, technical standards, testing and certification, and data systems to remove various entry barriers, promoting the adoption of new technologies and products. Priority regions will be selected for market access trials, with phased special measures to ease access.

Moving forward, the NDRC, in collaboration with relevant departments, will implement the opinions and strengthen overall coordination. We will continue to refine the market access system, further optimize the access environment, and bolster development expectations. Our goal is to rapidly establish a new paradigm featuring "standard-driven access, list-based access, scenario-enhanced access, pilot-expanded access and regulation-backed access."

That concludes my introduction. Now, my colleagues and I are ready to answer questions. Thank you!

Xing Huina: 

Now, you may raise your hand to ask questions. Please identify the news organization you represent before asking.

CCTV:

We have noticed that the opinions lay out clear requirements for enhancing the negative list management model concerning market access. Could you share the key considerations behind this? What is the current progress on revising the updated edition of the market access negative list? Thank you.

Li Chunlin:

Thank you for the questions from the CCTV reporter. I am very glad to answer these questions. The market access negative list system and the revision of the list have attracted close attention from society. The negative list for market access clearly outlines sectors, fields and businesses that are off limit for investors and items which require government approval for market entry in our country. Governments at all levels take corresponding management measures in accordance with the law for matters involving market access. All types of business entities can fairly enter the sectors, fields and businesses not on the list in accordance with the law. Since the full implementation of the market access negative list system in 2018, the negative list has continued to shorten. As I mentioned, it has been reduced from 151 items to 117 items. The benefits of reform continue to increase with the list having undergone four dynamic revisions. The items have been reduced by about 60% compared with the pilot version. A large number of market entry restrictions in many fields such as elderly care and medical care have been loosened. Various market entities have more vitality and greater space to develop the economy and create wealth, so that the decisive role of the market in allocating resources can be fully exerted. At the same time, with the full implementation of the list, some new difficulties have also emerged. For example, the rules and standards for the establishment and adjustment of access measures are not sound enough, and there are still many barriers of various types at all levels to market access. The opinions adhere to a problem-oriented approach and make corresponding institutional arrangements.

In terms of improving "one list nationwide" management for market access, the opinions clearly state that all types of national access catalogs that have been compiled according to requirements, as well as industrial, investment, environmental and territorial space plans and other matters involving market access, shall be included in the negative list management. The national access system shall be promoted to strengthen integration and connection, intensify system integration and strive to achieve horizontal and vertical coverage. At the same time, the opinions state that it is strictly prohibited to establish access permits and add access conditions in breach of regulations and independently formulate negative lists for market access beyond the national negative list, or set up access barriers in the process of franchising, designated operation, testing and certification in violation of rules. In recent years, the NDRC has worked with relevant departments to clean up and cancel more than 20 negative lists related to market access set up in violation of regulations in various places, and the institutional rigidity has been continuously enhanced.

In terms of improving rules for market access, the opinions, for the first time, categorize and clarify the corresponding access rules according to the nature of different sectors and fields. For fully competitive fields, we implement wide access and strict management, and significantly reduce access restrictions. For fields involving national security, lifeblood of the national economy, layout of major productive forces, strategic resources development and major public interests, access restrictions can be set, but they must be carried out in accordance with laws and regulations. For new forms of businesses and new sectors, we respect the characteristics of their development, plan corresponding access systems in a forward-looking manner and better promote the development of new quality productive forces. For example, during the revision of the negative list for market access in recent years, a number of management measures, such as qualification licensing of firefighting technical service organizations, issuance of security training permits and permits for the establishment of nursing homes, have been canceled in succession. At the same time, access management is also implemented for important sectors such as financial holding companies in accordance with the law, which exemplifies this concept. 

In terms of improving the adjustment procedures for market access measures, the opinions detail specific requirements such as prohibition of entry and permission for access, as well as further propose that before adding or adjusting market access management measures the competent authorities should first conduct policy assessments and then apply for amendments to laws and regulations in accordance with legal procedures. Temporary access measures may be taken when major sudden risks to economic operation may occur, but they must be reported to the CPC Central Committee and the State Council for approval, which effectively strengthens the sanctity of the setting and adjustment of access policies. This also avoids the situation where individual departments or localities arbitrarily stop market access in certain areas, which is conducive to stabilizing market expectations.

These latest requirements put forward in the opinions have clarified the direction for the subsequent adjustment and implementation of the negative list for market access. Regarding the revision of the negative list for market access, the NDRC is currently working with the Ministry of Commerce, the SAMR and other relevant departments to promote the revision of the list in an orderly manner. The revised version has been formed and will be issued and implemented after approval in accordance with the prescribed procedures. The new version of the list will fully implement the requirements of the opinions as well as closely connect with the reform of the administrative approval system, the reform separating operation permits from business licenses and the new round of institutional reforms, promoting further reduction of items on the list and releasing more reform momentum for high-quality development. Thank you.

21st Century Business Herald: 

We have noticed that the phenomenon of "money can't buy satisfactory services" still exists. Could you please tell us what key measures will be taken next in terms of relaxing access to the service industry and improving the institutions and mechanisms for its development? Thank you.

Li Fei: 

Thank you for your question. I will answer this question. The third plenary session of the 20th Central Committee of the Communist Party of China has made important arrangements for refining the institutions and mechanisms for developing the service sector. The service industry is a crucial part of the national economy, a key support for the modern industrial system and a major player in driving economic growth, providing jobs, expanding investment, promoting consumption and improving people's livelihoods. In recent years, the Ministry of Commerce with relevant departments has continuously improved the policy system for the development of the service sector, and promoted the high-quality development of services in key areas, so as to meet the needs of industrial transformation and upgrading as well as the people's aspiration for a better life.

At present, the overall development of China's service industry shows signs of positive stability with service consumption maintaining rapid growth, investment in key areas expanding at an accelerated pace and service trade growing rapidly. However, challenges still remain, such as unsatisfying supply quality, untapped consumption potential and weak international competitiveness. Moving forward, we will work closely with relevant departments to focus on the following key areas:

In terms of continuously relaxing control over market access in the service sector, the opinions have made directional and targeted arrangements for relaxing market access, proposing to gradually remove access restrictions in service industries that do not involve national security or social stability and where sufficient market competition can enhance supply quality. At the same time, we will continue to ensure greater accessibility for business entities, eliminate unreasonable access restrictions and remove illegally set entry barriers.

In terms of accelerating the establishment of a new system of high-quality and efficient services, we will promote better alignment between supply and demand, foster high-quality development of service consumption, optimize supply, improve quality, enrich consumption scenarios and cultivate new growth points for consumption.

In terms of further promoting the deep integration of advanced manufacturing and modern services, we will focus on key links, propel high-quality development of producer services on a sector-by-sector basis and enhance the specialized, commercial and comprehensive service capabilities that target the manufacturing industry.

In terms of strengthening and refining service brands, we will cultivate producer service brands with international competitiveness, create service brands with high quality, strong innovation momentum and leading roles as well as leverage brand building to drive new growth in the service consumption market, thereby unleashing new consumption potential.

Thank you！

China News Service: 

We have noticed that previous pilot projects to relax market access were mainly carried out through the formation of special measures, such as the special measures introduced for Hainan, Shenzhen, the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and Nansha in Guangzhou. Could you brief us on the progress of these market access relaxation pilot projects and any considerations for the next step? Thank you.

Wang Shancheng: 

Thank you for your question. The opinions clearly state that efforts should be made to expand the scope of pilot projects for relaxing market access. The main considerations are as follows: on the one hand, the number of items included in the negative list for market access remains relatively high, and some items that are not yet ready to be fully opened nationwide need to be explored through pilot projects. On the other hand, market access policies for new business forms and new sectors also need to be continuously refined through pilot projects. By selecting certain regions to carry out these projects, we aim to promote the development of a more flexible and efficient market access policy system, gradually relaxing access and optimizing the environment in relevant sectors.

Since 2021, we have selected Hainan, Shenzhen, the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and Nansha in Guangzhou to continue pilot programs to expand market access. We have used special measures to relax market access as a key strategy, introducing a series of specific measures in fields such as healthcare, finance, transportation, culture and education. We have effectively relaxed requirements for market access in areas like data property, aerospace, electronic components, integrated circuits, deep sea exploration and the modern seed industry. Major progress has been made in stimulating the vitality of business entities and facilitating the flow of production factors. For example, in Hainan, we proposed improving the market accessibility in the commercial aerospace sector and easing market access to spaceport construction. The first two commercial space rocket launch pads in Hainan are nearing completion, and several major industrial projects have been introduced, greatly promoting the country's commercial aerospace sector. Another example is the pilot program for developing unmanned systems for land, sea and air in Hengqin, Nansha in Guangzhou and Hefei in Anhui. This initiative has achieved the "six unifications" in standard systems, data centers, operational management and control, testing and certification, communication protocols, and policies and regulations. This has effectively removed market access barriers such as operational systems, airspace planning, data security and scenario openings. This lays a foundation for the wider application of unmanned systems across land, sea and air in larger regions and even nationwide.

Moving forward, we will implement the requirements of the opinions, increase efforts to pilot expanded market access and quickly gain reform experiences that can be replicated and promoted. 

First, we will conduct trials to allow access to new business formats and fields. Focusing on strategic emerging industries, key areas of future industries, and the layout of major productive forces, we will introduce additional market access measures for deep sea exploration, healthcare, new energy, and artificial intelligence. We will actively explore more efficient and streamlined access mechanisms, promote the application of innovative achievements in key areas, and improve overall market access efficiency.

Second, we will optimize the management of market access procedures. We will further simplify access procedures and optimize the approval process. When excessive approval conditions affect market entry, we will simplify the conditions through pilot programs. At the same time, through pilot projects, we will explore establishing a comprehensive regulatory system that aligns with relaxed market access policies. We aim to accelerate the formation of a framework combining government regulation, enterprise consciousness, industry self-discipline and social supervision.

Third, we will increase efforts to replicate and promote successful pilot experiences. The opinions require effective implementation of deployed special measures to relax market access, policy evaluation, and promotion of successful experiences. Recently, we have conducted evaluations and supervision of the special measures in Hainan and Shenzhen. We will promote and apply some mature pilot experiences and measures that can be replicated on a wider scale. Thank you.

Chengdu.cn:

My question is for the SAMR. What effective measures will it take to further improve the market access system, especially the registration and management system for business entities? Thank you.

Ren Duanping:

Thank you for your question. Market access is the prerequisite for economic entities to participate in economic activities, and the registration management system of business entities is the basis and key content of market access. The SAMR has thoroughly implemented the principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee. We've adopted practical measures, actively promoted the improvement of the basic market economy system, accelerated the construction of a unified national market, and continued to improve the market access system. We've focused on deepening the reform of the business registration system based on subscribed registered capital, ensuring that subscriptions are paid on time as stipulated by law. We've deepened reform in key areas with an innovative spirit, strengthened system integration, reduced institutional costs of market access, and promoted a more mature and better-defined registration management system. This has spurred the innovation vitality and internal driving force of business entities, creating a first-rate business environment that is market-oriented, law-based, and internationalized.

Next, we will implement the opinions of the General Office of the CPC Central Committee and State Council on refining the national market access system, focusing on three aspects of work.

First, we will continue to deepen the reform of the business registration system based on subscribed registered capital. We will thoroughly implement the Company Law of the People's Republic of China and the State Council's provisions on the implementation of the Registration Management System for Registered Capital of the Company Law of the People's Republic of China. We will guide newly established enterprises to reasonably determine subscription terms in accordance with the law, steadily adjust the capital contribution terms of existing companies as per legal requirements, and promptly correct any obvious abnormal situations regarding companies' capital contribution periods and amounts. We will introduce measures for implementing company registration management, which will legally clarify the criteria and procedures for determining obvious abnormalities in registered capital, conditions and requirements for exempting and adjusting capital contribution terms, and separate register management. In high-security risk areas, we will work with relevant departments to study and establish legally classified scopes, proportions, and periods for paid-in registered capital. We will improve the management system for non-corporate market entities to ensure timely capital contributions in accordance with the law. We will accelerate the construction of a unified national registration system for market entities and strengthen smart access.

Second, we will continue to improve the legal framework for business entity registration. We will adhere to the new development philosophy, balancing development and security, vitality and order, and efficiency and fairness. We will maintain goal-oriented, problem-oriented, and reform-oriented approaches. We will accelerate the research and formulation of a basic legal system for business entity registration in accordance with the law. This will include clarifying the basic principles of registration management and unifying basic legal concepts and terms. We will also improve institutions and rules for managing business registrations, transfers, names, and leasing and contracting of market entities. Additionally, we will tighten legal penalties for business entity fraud. We will promote institutional innovation, fill institutional gaps, and develop legal systems and rules that effectively align with prevailing international commercial rules.

Finally, we will strictly enforce regulations against unfair competition and market intervention. We will advance both ex-ante measures and ex-post punishments, regulation and law enforcement, publicity and advocacy, and the correction of typical cases alongside institutional strengthening. These efforts will comprehensively remove market access barriers. We will strengthen supervision over both monopolistic and competitive businesses carried out by natural monopoly enterprises. This oversight aims to prevent these enterprises from abusing their dominant market positions in upstream and downstream competitive areas or from excluding or restricting market competition in these sectors. By focusing on the concerns of the public and businesses, we will advance anti-monopoly law enforcement to stop the abuse of administrative power that eliminates or restricts competition. Additionally, we will strictly implement the fair competition review system and resolutely rectify improper market interventions. These include the abuse of administrative power to restrict transaction partners or exclude and restrict business operators from bidding processes and other business activities. These efforts aim to remove restrictions and hindrances to market access for all entities.

That's all. Thank you.

Economic Daily:

To our knowledge, the NDRC has guided 10 provinces, including Yunnan, Guangdong and Fujian, in conducting pilot evaluations of market access effectiveness. The opinions proposed conducting evaluations of market access effectiveness nationwide. Could you talk about the relevant considerations and details?

Wang Shancheng:

Thank you for your question. Market access is key to balancing an efficient market with an effective government. The purpose of conducting market access evaluations is twofold. First, it aims to enhance the government's governance capacity by assessing the implementation of the market access policies and encouraging local governments to perform their duties efficiently in accordance with the law. Second, it focuses on improving market entry efficiency for businesses. By evaluating the environment for market access in various regions, we can promptly remove barriers, ensuring that all kinds of business entities can enter the market efficiently and smoothly.

Since 2021, the CPC Central Committee and the State Council have made important arrangements for establishing and implementing a market access effectiveness evaluation system. The NDRC has guided pilot evaluations in 10 provinces, including Fujian, Yunnan, Ningxia, Shanghai and Guangdong. After three years of exploration, these pilot regions have made significant progress in market access effectiveness evaluation. For example, Yunnan has evaluated the market access effectiveness of 16 prefectures (cities) and 129 counties (cities and districts), forming a provincial effectiveness index. Yunnan has actively promoted excellence through evaluation, and participants' scores have steadily improved, with positive feedback from business entities. The evaluation results have directly promoted adjustment and improvement in policies related to local tourism and reduced market access barriers. Anhui province has explored an evaluation model that considers both administrative bodies and business entities. The province has developed an indicator system tailored to the Yangtze River Delta region, and vigorously promoted "imperceptible" evaluation by constructing an information platform, improving access efficiency and ensuring the fairness of evaluation results. At present, the conditions for comprehensive performance evaluation are largely in place. A national general version of the index system has been developed, consisting of 18 indexes in five aspects, including the construction of a market access system, the removal of market access barriers, the implementation of access supervision, organizational mechanism guarantees, and the effectiveness of system implementation. A working model has been formed under the guidance of national ministries and commissions, with provincial (autonomous region, municipality) governments as evaluation subjects and municipal and county governments as evaluation objects, laying the foundation for the nationwide promotion of such evaluations.

Next, according to the arrangements made in the opinions, we will comprehensively carry out an evaluation of market access effectiveness. In terms of a timeline, we will further expand the scope of evaluation this year, and starting next year, we will aim to gradually achieve full coverage of market access effectiveness evaluations, making the evaluations a regular practice. Regarding evaluation indicators, the indicator system will consist of "common national indicators + specific regional indicators." The common national indicators will be uniformly formulated and published by the NDRC, while the region-specific indicators will be set by each locality based on their actual conditions to appropriately reflect local characteristics, thereby encouraging grassroots reform and innovation. As for the evaluation results, we will strictly implement relevant requirements. The results will primarily serve as a reference for localities in building market access systems, with a clear directive to avoid rankings and prevent any burden on localities or primary-level organizations in this regard. Through effectiveness evaluations, we aim to comprehensively reflect and scientifically assess the market access environment in various regions, thereby ensuring the solid implementation of market access system requirements and continuously improving the government's standardized and scientific management of market access. Thank you!

Science and Technology Daily: 

The Resolution adopted at the third plenary session of the 20th CPC Central Committee specifically mentions that we should "ensure greater accessibility for new forms of business and new sectors." We noticed that a special section in the opinions is dedicated to this, introducing many new highlights and concepts, with several pertaining to the frontier area of new quality productive forces. Could you elaborate on the considerations behind this?

Li Chunlin: 

Thank you for your question. I am a regular reader of Science and Technology Daily. The question that you raise concerning new quality productive forces is indeed very specialized. As you mentioned, the third plenary session of the 20th CPC Central Committee explicitly states the need to "ensure greater accessibility for new forms of business and new sectors," making special arrangements for the core issue of improving the market access system. Therefore, it is crucial to accurately grasp this key task and ensure that we align with standards and benchmarks in its implementation.

Currently, the new round of technological revolution and industrial transformation is developing rapidly, with disruptive technologies iterating and upgrading swiftly. However, there are still unclear access rules in some new forms of business and new sectors, with issues such as overly strict access management and a need for optimization in the access environment becoming increasingly prominent. Therefore, it is urgent to improve the relevant access systems and to relax access restrictions in an orderly manner in order to better promote the development of new forms of business and new sectors.

Let me give you an example: the low-altitude economy. Currently, many regions across the country are vying to develop the low-altitude economy. However, the development of the low-altitude economy brings about a series of issues, such as safety concerns, industry standards for products and regulations regarding flight access. For instance, what are the regulations like? What are the application scenarios? What is the development path for the industry? Though a prominent representative of new quality productive forces, the low-altitude economy could lead to issues like indiscriminate flying without proper regulations. Therefore, it is necessary to relax access restrictions in an orderly manner in order to better promote the development of new forms of business and new sectors. For instance, Article 7 of the opinions clearly outlines policy arrangements for optimizing the market access environment for new forms of business and new sectors, with many noteworthy measures:

First, regarding the optimization of access management methods, the opinions clearly state that with 10 new forms of business and new sectors, namely deep sea, aerospace, aviation, life and health, new energy, artificial intelligence, autonomic and trusted computing, information security, intelligent rail transit and modern seed industry, we should develop and implement specific plans to optimize the market environment for each field, promoting innovative allocation of production factors and improving access efficiency. The market access management for new forms of business and new sectors cannot simply follow the traditional administrative approval-based management model but should fully leverage market mechanisms. It should be guided by standards and scenarios to create a more flexible and resilient access management mechanism. Following the principle of "standards guiding, scenario opening, market driving, industry focusing and system upgrading," we should further optimize the access methods for new forms of business and new sectors. In the early stages of development, new forms of business and new sectors need nurturing, which requires providing appropriate application scenarios. Without application scenarios, there is no industrial development. Without standards, the industry will face various problems. In fact, this hinders the healthy, high-quality and rapid development of the industry to a certain extent. Therefore, it is essential to carry out top-level design and provide principles and pathways.

Second, is refining the innovation application mechanism. Currently, a large number of innovations struggle to reach the market due to many barriers between innovative achievements and the industrial system. Therefore, refining the innovation application mechanism is a critical aspect in improving market access, which is key to effectively bridging the gap between technology and the economy. The opinions propose leveraging promotion centers for advanced technology application and various innovation platforms for scientific and technological achievements application. It also calls for facilitating a smooth flow of industrial systems, innovation resources, capital, application scenarios and policy systems, thereby promoting the transformation of original, disruptive sci-tech innovations into actual productivity. For instance, under the policy of expanding market access, it clarifies that promotion centers for international advanced technology application can be established in comprehensive national science centers and international scientific innovation centers. The first such center, the International Advanced Technology Application Promotion Center in Hefei, Anhui province, was officially inaugurated in November 2022, with its board set to be established next month. The center has made notable progress in reforming the comprehensive allocation of new production factors such as technology, data, computing power, airspace and scenarios. Meanwhile, similar centers in Shanghai’s Pudong, Shenzhen and Guangzhou are also rapidly advancing. The opinions also call for fostering a market access environment for the application of innovations in frontier technology fields, and leading the application and standard development of all-space unmanned systems across land, sea and air. Additionally, the opinions advocate expediting the development of market access policy systems in areas such as green energy, and actively broadening market access for digital products. We will ensure the implementation of these key tasks while also providing experience and setting examples for innovation application in other frontier fields.

Finally, is refining the coordination of innovation resources. The opinions focus on key areas such as electronic information, computational science, deep-sea exploration, aviation and aerospace, new energy, new materials, biomedicine, quantum technology and the modern seed industry. The goal is to promote the establishment of collaborative research models in these cutting-edge fields by key enterprises, research institutions and related localities. Moreover, the opinions encourage active participation in the formulation of international market access rules and standards, and the facilitation of convenient and efficient innovation application in key areas. This is of great significance for strengthening strategic layouts in frontier fields, enhancing the capacity to allocate global advanced and high-quality production factors, and leading the development of rules and standards in new business forms and new sectors.

Refining the market access environment for new business forms and sectors is a new reform task assigned by the third plenary session of the 20th CPC Central Committee. We will follow the requirements of the opinions to the letter, ensure their thorough implementation, and effectively promote the high-quality development of new business forms and sectors through market access reforms. Thank you.

ThePaper.cn:

The opinions call for improving the management model of the negative list for market access, establishing sound market access rules, and implementing market access management in accordance with the law. Could you share how the market regulation authorities plan to advance related work? Thank you.

Ren Duanping:

Thank you for your question. In recent years, the SAMR has actively promoted the implementation of the market access negative list system, made government approvals more standardized, procedure-based and accessible, and continuously enhanced the operability and enforceability of the items on the list. Meanwhile, we have given full play to the foundational role of the market access negative list system, standardized operation scope registration and fulfilled the "dual notification" responsibility (before registration, the business authorities shall notify the applicants of the items that need to be reviewed and approved as well as the corresponding approval departments; after registration, the business authorities shall notify relevant review and approval departments of the registration information of the applicants). Through these efforts, we aim to expand electronic business license applications and actively provide standardized and convenient registration services. Moving forward, we will earnestly implement the Opinions on Refining the National Market Access System by focusing on four key areas.

First, we will continue to refine the market access negative list. We will continuously streamline and improve the items on the negative list in collaboration with the NDRC and MOFCOM. For listed items in the market regulation field, such as food production and operation, special equipment, as well as testing and inspection, we will advance the formulation and revision of relevant laws, regulations and departmental rules, and strengthen the development of safety technical standards, so as to continually enhance the operability and enforceability of the listed items.

Second, we will continue to make government approval services more standardized, procedure-based and accessible. In accordance with the laws, regulations and rules on the establishment and implementation of licenses, we will continue to improve the "Implementation Rules for Administrative Licensing Items in the Field of Market Regulation." For all administrative licensing items regarding market regulation, we will clearly define the basic elements, licensing conditions, application materials, approval procedures and approval time limits based on the category, profession and other features of the approval levels and objects. We will continuously optimize the approval process, shorten approval times and improve approval efficiency. Additionally. we will strengthen the standardization of approvals, enhance work ethics and refine window services. We will also improve the supervision mechanisms, and implement systems such as first-inquiry responsibility, full notification and time-limited completion to improve service efficiency.

We will continue to implement standardized registration for the scope of business operation. We will work to make sure that items requiring government approval are aligned with business activities, so as to provide more standardized registration services for business entities. We will proactively fulfill our responsibility of "dual notification. " Specifically, during the business registration process, we will notify enterprises of particular items related to their business activities that require government approval. We will also strengthen information sharing, promptly notifying relevant authorities of enterprise information so as to timely include these enterprises in regulatory oversight and achieve regulatory coordination.

We will continue to improve administrative services and improve the efficiency of market access. We will thoroughly implement the State Council's decision on promoting one-stop government services and take the lead in introducing this initiative to multiple items, such as restaurant registration. We will guide local governments to effectively optimize administrative processes, strengthen collaboration, streamline administrative systems and enhance data sharing. We will strive to greatly reduce the amount of time, steps, materials and trips needed for government services, in a bid to improve the sense of fulfillment among businesses and the public. We continue to expand the application for electronic business licenses. To date, 76.35 million business entities nationwide have downloaded electronic business licenses a total of 290 million times. These licenses have been used 493 million times for identity verification, online logins and as electronic signatures, with average daily usage exceeding 900,000 times. They have also been adopted by more than 1,700 business systems in various regions and government bodies, which has significantly reduced costs and improved efficiency. That concludes my response. Thank you.

Xing Huina:

The floor is open for one last question.

The Beijing News:  

The alignment of the "two lists," namely those concerning foreign investments and market access, have long attracted widespread attention. The opinion has also outlined specific requirements for enhancing policy collaboration related to access of both domestic and foreign investments. How will these developments impact the alignment of the "two lists"? Will there be special arrangements regarding this issue for the Hainan FTP and pilot free trade zones (FTZs)? Thank you.

Li Fei:

Thank you for your questions. Regarding the first question, the negative list for market access is a part of national treatment and is applicable to all types of business entities both at home and abroad. The negative list for foreign investment access, on the other hand, pertains specifically to foreign investment management, and is exclusively applicable to overseas investors. Therefore, these two lists have been closely aligned through adjustments.

First, in terms of institutional design, it is specified that the negative list for foreign investment access should outline special management measures, including requirements on equity and senior management. Areas outside the list will be managed in accordance with the principle of equal treatment for both domestic and foreign investments. Both domestic and overseas investors are subject to the regulations of the market access negative list.

Second, in addressing specific issues, these "two lists" have been adjusted in a coordinated manner. Market access restrictions lifted for foreign investments have also been removed for domestic investments. Likewise, market access restrictions imposed on domestic investments will, in principle, also apply to foreign investments as well, provided they do not violate international agreements and commitments.

Third, in policy implementation, we uphold the principle of ensuring national treatment, continuing to eliminate and remove all kinds of barriers that hinder fair market access without reducing the market access opportunities of existing business entities. This approach aims to ensure that all business entities are guaranteed equal rights to market access in accordance with the law. The requirements outlined in the opinion not only further clarify and consolidate established existing practices, but also serve as significant institutional achievements that strengthen the alignment of the "two lists."

Regarding the second question, as the pacesetter of the nation's opening-up endeavor, FTZs and Hainan FTP witness a strong foundation of reform and development, as well as vibrant foreign investments. They are subject to a much shorter list of restrictions for foreign investment access, and they enjoy a higher-level of opening up. As for market access, based on the unified national list, Hainan FTP and other related regions will implement special measures with further relaxed market access requirements.

Moving forward, we will provide guidance to related regions and fully put the "two lists" into practice. We will also continue to improve services for foreign enterprises and strive to develop practices that are applicable to other regions, in a bid to create an accessible environment featuring efficiency and convenience for all types of businesses. Thank you.

Xing Huina:

Today's press conference is hereby concluded. Thank you to all four speakers and friends from the media. Goodbye everyone.

Translated and edited by Wang Yiming, Wang Qian, Liao Jiaxin, Liu Qiang, Yan Bin, Yuan Fang, Mi Xingang, Huang Shan, Yang Xi, Liu Sitong, Xu Kailin, Li Huiru, Zhang Lulu, Xu Xiaoxuan, Ma Yujia, Zhu Bochen, Zhou Jing, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Zhang Jianhua, administrator of the National Energy Administration (NEA)

Wan Jinsong, vice administrator of the NEA

Song Wen, director general of the Department of Legal and Institutional Reform of the NEA

Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA

Chairperson:

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

Date:

Aug. 29, 2024

Shou Xiaoli:

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

Today, we are releasing the white paper titled "China's Energy Transition," and holding this press conference to introduce and interpret its main content. 

The white paper, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implements General Secretary Xi Jinping's important ideas and proposals on the high-quality development of energy. It systematically explains China's policies, principles and practices in advancing energy transition guided by the general secretary's new energy security strategy aimed at revolutionizing consumption, supply, technology and institutions, while strengthening all-round international cooperation. The white paper comprehensively introduces the positive achievements China has made in forming a new green energy consumption model, constructing a new energy system, developing new quality productive forces in the energy sector, and advancing the modernization of energy governance. It demonstrates China's efforts and contributions in continuously deepening international green energy cooperation, and advancing sustainable global energy development. The white paper calls on the international community to plan energy cooperation together, address global climate change, promote harmony between humanity and nature, and build a clean, beautiful planet. 

The white paper consists of a preface, main text and conclusion, totaling around 19,000 Chinese characters. The main text includes six sections: I. China's Path of Energy Transition in the New Era; II. Promoting Green Energy Consumption; III. Moving Faster to Build a New Energy Supply System; IV. Developing New Quality Productive Forces in the Energy Sector; V. Modernizing Energy Governance; and VI. Contributing to a Global Community of Shared Future.

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and the Foreign Languages Press, and is available at Xinhua Bookstore outlets across the country.

To help you better understand the white paper, we are glad to be joined today by Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA), to introduce relevant conditions and answer your questions. Also present today are Mr. Wan Jinsong, vice administrator of the NEA; Mr. Song Wen, director general of the Department of Legal and Institutional Reform of the NEA; and Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA. 

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

Zhang Jianhua:

Ladies and gentlemen, good morning. I am glad to join you today in witnessing the release of the white paper "China's Energy Transition." First, I would like to thank you for your interest in and support for China's energy sector. 

Since the 18th CPC National Congress, following a new energy security strategy aimed at revolutionizing consumption, supply, technology and institutions, while strengthening all-round international cooperation, China has accelerated its energy transition, and pursued a path of energy transition that is suited to its actual conditions and meets the changing needs of our times. Ms. Shou just introduced the structure of the white paper, and I will briefly introduce the main contents of the document from four aspects.

First, the white paper systematically expounds the fundamental concepts of China's energy transition, which can be summarized as five principles. Putting the people first, China has always prioritized meeting people's needs for a better life and ensured people have a greater sense of gain and fulfillment in energy use. Pursuing green and low-carbon development, we have accelerated building an energy supply system dominated by non-fossil fuels, and promoting harmony between humanity and nature. Serving national development, we have applied the practice of establishing the new before discarding the old and pursed an orderly transition, ensuring secure and stable energy supply while accelerating green transition development. Boosting innovation as an impetus for growth, we are relying on technological and institutional innovation to promote green, low-carbon, safe and efficient energy development. Expanding opening up and cooperation, China upholds the vision of a global community with a shared future, and works with all countries to promote sustainable energy development. China respects the rights of developing countries to independently choose their own transition paths, and advance energy transition in an equitable, just and orderly fashion. 

Second, the white paper comprehensively introduces China's achievements in energy transition practices, as demonstrated in the following four aspects: Clean energy development has made notable progress. By the end of 2023, the total installed capacity of power generation by wind and photovoltaic (PV) increased tenfold compared to a decade ago, with clean energy accounting for 58.2% of total installed capacity. Over half of the increase in total electricity consumption has come from newly added power generated by clean energy. The proportion of clean energy consumption in total energy consumption rose from 15.5% to 26.4%, while the proportion of coal consumption decreased by 12.1 percentage points. New achievements have been made in clean and effective energy utilization. In the past decade, China phased out over 100 million kilowatts of outdated coal power capacity, reducing pollutant emissions from the power sector by over 90%. The electrification rate of society-wide final energy consumption stood at 28%. Compared with 2012, energy consumption per unit of GDP decreased by more than 26%. Green energy technology has achieved new breakthroughs. China has built complete industrial chains for the R&D, design and manufacturing of wind and PV equipment, mastered the nuclear power technologies of third-generation pressurized water reactors (PWRs) as well as fourth-generation high-temperature gas-cooled reactors.  China has become a front-runner throughout the hydropower industrial chain. Institutional energy reform has achieved new progress. A diversified energy market structure is gradually taking shape, a unified and open energy market system is gradually improving, and an energy pricing mechanism reflecting market supply and demand is gradually forming. The role of the market in enhancing the consumption of clean energy, ensuring electricity supply, and optimizing resource allocation is increasingly evident. The third plenary session of the 20th CPC Central Committee made new deployments on further deepening energy reform, aiming to further improve the mechanisms for green, low-carbon development and accelerate the construction of a new energy system. 

Third, the white paper objectively demonstrates the contributions China has made to global green development. China has been a promoter and contributor in the global endeavor of energy transition. Over the past decade, China has been responsible for over 40% of the annual additions to global renewable energy capacity. The global share of non-fossil fuels in energy consumption rose from 13.6% to 18.5%, with China contributing 45.2% to this increase. Through sustained technological innovation, a sound system of industrial and supply chains, sufficient market competition, and the advantages of a super-scale market, China's new energy industry has developed rapidly and led to a drastic decrease in the costs of wind and PV power worldwide. China has strengthened cooperation on green energy with Belt and Road countries, and launched a significant number of "small yet smart" people-centered programs that provide these countries with clean, safe and reliable energy supply solutions.

Finally, the white paper also vividly illustrates China's proposal of working with other countries to jointly build a clean and beautiful world. Addressing the challenge of climate change and achieving sustainable energy use concerns the wellbeing of mankind. China is willing to work with the international community to expand pragmatic cooperation on energy transition; keep global energy industrial and supply chains stable, promoting open, inclusive and non-discriminatory flow of green energy products and technology; fulfill its role as a responsible major developing country together with other countries to improve global energy access; work with other countries to uphold the principle of equity, common but differentiated responsibilities, and respective capabilities to tackle challenges posed by climate change and protect our planet for the sake of human survival.

That is all for my introduction. Thank you.

Shou Xiaoli:

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

CCTV:

Over the past decade of the new era, China has advanced transition and reform in the areas of energy production, consumption, technical systems and international cooperation. What have been the major achievements in China's energy transition? Thank you.

Zhang Jianhua:

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

Wan Jinsong:

Thank you for your question. This is a very good question, and also the key point illustrated in the white paper.

Over the past decade, the energy sector has resolutely implemented the new energy security strategy proposed by General Secretary Xi Jinping that aims at revolutionizing consumption, supply, technology and institutions, while strengthening all-round international cooperation. We have advanced the reform of the energy development model, providing a strong guarantee for high-quality economic and social development and the building of a Beautiful China. The achievements of energy transition can be summarized in five aspects.

First, China's energy transition has fast-tracked clean energy development. According to our statistics, as of the end of 2023, the total installed capacity of non-fossil energy power generation had reached over 15 GW, surpassing its thermal power capacity for the first time. The electricity generated from clean energy was about 3,800 TWh, accounting for nearly 40% of the country's total electricity generation, up by around 15 percentage points from 2013. Over the past decade, electricity generated from clean energy has accounted for more than 50% of the increase in total electricity consumption, marking a growing share of green energy in China's energy mix. 

Second, China's energy transition has underpinned high-quality economic and social development. Over the past decade, investment in fixed assets in the energy sector totaled about 39 trillion yuan, with nearly 4 trillion yuan per year on average. The capacity for primary energy production has grown by 35%, providing a strong basis for steady and sound economic growth. We have established a complete industrial chain for energy equipment manufacturing. Technological innovations in new energy, hydropower, nuclear power, power transmission and transformation, and novel energy storage have accelerated, and the clean energy industry has become a new pillar of China's modern industrial system. 

Third, China's energy transition has met the people's need for a better life. Over the past decade, China's energy demand and supply have remained balanced. Energy prices have also remained generally stable, effectively ensuring energy security for more than 1.4 billion people. Over 100 billion yuan from the central budget has been invested into upgrading rural power grids. In 2015, we enabled all areas of the country to have access to electricity. Per-capita electricity consumption has doubled from about 500 kWh to nearly 1,000 kWh over this period. The scale of household PV power installations in rural areas has reached 120 GW. This has led to an income increase of 11 billion yuan for farmers and the creation of around 2 million jobs per year. 

Fourth, China's energy transition has synergized with high-standard eco-environmental protection. Compared with 2012, energy consumption per unit of GDP has decreased by more than 26%. Green and intensive development of energy and resources has been realized. The quality of China's refined oil products has reached advanced international levels. The average coal consumption of coal-fired power generation has reduced to 303 grams of standard coal per kilowatt-hour, with SO2 and NOX emissions of advanced coal-fired power generation units now comparable to the upper limits for natural gas power units. China's energy transition has effectively promoted significant improvements in the eco-environment and the building of a Beautiful China. 

Finally, China's energy transition has contributed to the global energy transition and a clean and beautiful world. In 2023, China's investment in energy transition reached $676 billion, making it the world's largest investor in this field. China has continued to expand opening up and cooperation, and has provided quality clean energy products and services to the world. In 2023, China's exports of wind power and PV products helped other countries reduce carbon dioxide emissions by about 810 million metric tons. China's new energy industry has added to the global energy supply, helped reduce the cost of the global energy transition, and contributed to the global transition to green development and efforts to combat climate change. Thank you.

Phoenix TV:

Data from the International Energy Agency shows that in 2023, China's newly installed renewable energy capacity exceeded the total of other regions worldwide, making it the largest contributor to the development of the global renewable energy industry. How has this been achieved? Additionally, what positive impact do you believe the energy transition will have on global green and low-carbon development? Thank you.

Zhang Jianhua:

Thank you for your questions. I'll address them. China resolutely follows the philosophy of green development in recent years, thoroughly transforming its growth model. By the end of 2023, China's installed capacity for renewable energy generation accounted for about 40% of the global total. Over the past decade, China's annual additions consistently comprised more than 40% of the global total, exceeding half in 2023. This has continually provided an impetus for global green development. The rapid growth of China's renewable energy sector can be attributed to three main factors:

First, continuous technological advancement. China has promoted initiatives like PV leader bases and large-scale new energy bases. These projects have promoted the demonstration and application of new technologies and accelerated the iteration and upgrade of technologies and products. Innovations have flourished in technologies such as PV high-efficiency crystalline silicon cells and perovskite cells. New world records for conversion efficiency have been repeatedly set, with mass-produced advanced crystalline silicon PV cells now exceeding 25% efficiency. Wind power technologies like long blades and high towers are globally leading, with offshore wind turbines reaching a maximum unit capacity of 18 megawatts.

Second, a complete industrial and supply chain. After years of development, China has built a relatively complete industrial and supply chain for new energy sources such as wind and PV. At the same time, China has actively integrated into the global clean energy industrial chain, sharing high-quality clean energy products worldwide. Chinese wind and PV technologies and products are exported to many countries and regions, supporting countries, especially developing ones, to access clean, reliable, and affordable energy.

Third, a favorable market environment. Amid rapid changes in the energy landscape both domestically and abroad, the Chinese government has dynamically improved policies and measures on the price of on-grid electricity generated from renewable energy sources, for promoting the absorption of electricity generated from new energy sources into power grids, and market allocation. These measures have fully leveraged the advantages of China's vast market to promote the healthy development of new energy. China has fostered an equal, open and inclusive market environment for new energy. This approach has attracted participation from various sectors of society in new energy development, fully unleashing the innovation vitality of the market. For example, China's PV industry now boasts over 100 listed companies.

As the world shifts toward green energy, China is accelerating its own renewable energy development while actively sharing high-quality and affordable clean energy products globally. This has effectively driven down costs for wind and PV development worldwide, providing tangible green power for the world's energy transition. It has created new opportunities for deepening international cooperation in clean energy and contributed China's strength to the global energy transition. Thank you.

Bloomberg: 

Many analysts have noted the staggering growth of clean energy generation this year and how it's been able to reduce thermal power generation over the summer months. Some speculate that China may have already peaked the emissions years before its 2030 target. What is the NEA's take on those assessments and does it think it's possible that China has already reached the peak emission? Thank you.

Zhang Jianhua:

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

Song Wen:

Thank you for your question. As you noted, China has maintained strong momentum in clean energy development, which my colleague illustrated with relevant data earlier. General Secretary Xi Jinping has emphasized that we pursue the goals of peak carbon dioxide emissions and carbon neutrality not under compulsion but of our own accord. Our commitment to these goals is unwavering. Energy is a key area for achieving peak carbon emissions and carbon neutrality. Following the decisions and arrangements of the CPC Central Committee and the State Council, we're actively promoting green and low-carbon energy transition based on China's energy and resource endowment.

As of the end of July, China's installed renewable energy capacity had reached 1.68 billion kilowatts, over 54% of total capacity. Over the past decade, China's growth in non-fossil energy consumption has contributed more than 40% to the global total. Annual non-fossil power generation increased by 2.2 trillion kilowatt-hours, equivalent to reducing carbon dioxide emissions by approximately 2 billion tons. This has notably curbed overall carbon emission growth across society. However, it is important to recognize that China is still a developing country. We are advancing the modernization of a huge population, which means energy demand will continue to grow as people seek better lives. There are also increasing uncertainties and unpredictable factors. Therefore, it still requires arduous efforts to achieve the dual carbon goals.

The third plenary session of the 20th CPC Central Committee proposed establishing new mechanisms to facilitate the transition from controlling the total amount and intensity of energy consumption to controlling the total amount and intensity of carbon emissions. Since the beginning of this year, the CPC Central Committee and the State Council have issued a series of policy documents on energy conservation and carbon reduction, including the recently issued Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development and the Work Plan for Accelerating the Establishment of a Dual Control System for Carbon Emissions. These documents outline the framework for green, low-carbon development and the dual carbon targets in the coming years. The energy industry is also conducting preliminary research for the 15th Five-Year Plan, focusing on goals and tasks for the next phase of the energy transition. We'll intensify efforts to promote high-quality renewable energy development, advance the green and low-carbon energy transition, and aim to increase the proportion of non-fossil energy consumption by about 1 percentage point each year. We're capable and confident of reaching peak carbon emissions before 2030 as planned. Thank you.

Xinhua News Agency:

The third plenary session of the 20th CPC Central Committee proposed deepening reforms comprehensively and modernizing China's system and capacity for governance. What capabilities will China strengthen in terms of the energy transition? Thank you.

Zhang Jianhua:

Thank you for the question. I'll answer it. The energy transition is a broad and profound systemic transformation of the economy and society, requiring a significant enhancement of the energy governance system and modernization of governance capacity. In recent years, China has leveraged the decisive role of the market in resource allocation through various measures, such as promoting reform, improving policies, and ensuring the rule of law. These efforts have given better play to the role of the government and created a favorable development environment for the energy transition. As you said, the third plenary session of the 20th CPC Central Committee proposed deepening reform of the energy management system and accelerating the planning and development of a new type of energy system, providing a clear direction for building the energy governance system and capacity. Next, we will focus on four key areas of work.

First, we need to deepen energy reform. We will establish a unified national electricity market, continue expanding the coverage of markets for spot trading of electricity, and further improve the allocation of electricity resources. We'll also establish and improve mechanisms for green and low-carbon development, accelerate the cultivation of green electricity and green electricity certificate markets, and improve the policies for promoting the absorption of electricity generated from new energy sources into power grids and for the regulation of such energy. Additionally, we will promote the safe, reliable, and orderly replacement of fossil fuels with non-fossil energy. We will promote independent operation of natural monopoly businesses and advance market-oriented reforms in the competitive areas.

Second, we need to improve energy legislation. We will formulate an energy law, compile an environmental code, accelerate revisions to the Renewable Energy Law, Energy Conservation Law, and Electric Power Law, and strengthen the enactment of laws on energy saving and efficiency improvement as well as prioritizing clean energy development and utilization. Moreover, we will implement incentive and constraint systems such as green certificates to promote green energy consumption and support green and low-carbon technology innovation. We will also promote the formulation and revision of laws and regulations guiding green and low-carbon energy use in key sectors.

Third, we need to strengthen development planning. We'll conduct thorough research and preparation for the 15th Five-Year Plan for energy, fully leveraging the strategic guiding role of national energy planning in major project layouts, public resource allocation, and social capital investment. We will balance development and security, clarifying an energy transition timeline and roadmap. Additionally, we'll improve standards for green and low-carbon energy development.

Fourth, we need to strengthen energy oversight. We will enhance the supervision of major energy plans and the implementation of clean energy projects. We'll increase oversight of the absorption of electricity generated from renewable energy sources into power grids and the construction and operation of adjustable energy supplies to ensure the effective application of major energy transition policies. We will also tighten supervision of market transactions, pricing mechanisms, and information disclosure to ensure the effective implementation of rules for new energy market participation. Thanks.

Reuters:

China's 14th Five-Year Plan set a goal to reach 1,200 gigawatts of installed solar and wind capacity by 2030. As of July, China achieved this target six years ahead of schedule. Since new energy development has exceeded expectations, will China further raise its 2030 target? Additionally, in 2025, the Paris Agreement requires signatory countries to propose their nationally determined contributions (NDCs) for 2035. Will China increase the ambition of its energy transformation targets in its next NDC? Thank you.

Zhang Jianhua:

Thank you for your questions and interest in our energy industry, particularly new energy development. We are very grateful. I'll defer to Mr. Li Chuangjun for the answer.

Li Chuangjun:

Thank you for your questions. On Dec. 12, 2020, President Xi Jinping announced at the Climate Ambition Summit that China's installed capacity for wind and solar power would exceed 1.2 billion kilowatts by 2030. China's energy industry has earnestly implemented the important instructions of General Secretary Xi Jinping, resolutely carried out the policies and deployments of the CPC Central Committee and the State Council, and vigorously promoted the high-quality development of wind and solar power. The scale of wind and PV installations has reached new milestones. By the end of July this year, China's installed capacity of wind power reached 471 million kilowatts, and that of solar power reached 735 million kilowatts, resulting in a combined capacity of 1.206 billion kilowatts.

China's rapid development of wind and solar power has significantly contributed to addressing climate change, ensuring energy supply, promoting the clean and low-carbon transition, and advancing global new energy development. China has become a key leader and promoter in global efforts to combat climate change and reduce carbon emissions. At the same time, to achieve carbon peaking and ensure the proportion of non-fossil energy consumption reaching about 25% of total energy use by 2030, China needs to continue promoting large-scale, high-quality development of wind and solar power.

Regularly updating NDCs is a bottom-up global climate governance mechanism established by the Paris Agreement. Under this mechanism, each party sets its climate targets based on national conditions. Since the beginning of this year, following the Paris Agreement and related decisions, relevant departments in China have been actively studying and evaluating the next round of NDC targets in light of new situations and changes. It is important to emphasize that China's commitment to its dual carbon goals remains unwavering. However, the path, method, pace and intensity to achieve these goals should and must be determined by China itself, without external influence. China will adhere to the principle of common but differentiated responsibilities and respective capabilities, and set well-conceived new goals and measures in light of the country's national realities. This will contribute significantly to jointly addressing climate change and building a clean and beautiful planet. Thank you.

21st Century Business Herald:

The action plan for quickly building a new type of power system (2024-2027) was released to the public recently. Could you please provide an update on the current progress of constructing such a system and outline the considerations for future steps? Thank you.

Zhang Jianhua:

Thank you for your questions. Mr. Wan will address them.  

Wan Jinsong:

Thank you for your questions; they are indeed pertinent. To drive the energy transition, it is imperative to vigorously develop new energy sources. To achieve this, we must expedite the construction of a new type of power system that is clean and low-carbon, secure and adequate, economical and efficient, supply-demand coordinated, flexible and intelligent. In recent years, our energy sector has strengthened overall planning, advancing the construction of the new power system through policies, platforms, capabilities and markets.

In terms of policies, we are continuously refining the policy framework for the new power system. Recently, as you have noted, the National Development and Reform Commission, the NEA, and the National Data Administration jointly issued the action plan to quickly build a new type of power system (2024-2027). Based on the current stage of development, the plan focuses on key areas urgently needing breakthroughs in the near term for the construction of the new system. By selecting typical and representative directions to advance work, it aims to address major issues through sharply focused efforts. We've proposed nine special actions to coordinate the development of the new power system. For instance, the plan proposes expanding the network of electric vehicle (EV) charging facilities. This will not only meet the charging needs of EVs but also promote greater new energy consumption through vehicle-grid integration. 

In terms of platforms, we're strengthening the power grid's role in resource allocation. We continue to improve the main grid structure, advance the planning and construction of trans-provincial and trans-regional transmission channels, and upgrade and transform distribution networks. By the end of 2025, China's trans-provincial and trans-regional transmission capacity is expected to reach 360 million kilowatts. The distribution network will be capable of accommodating around 500 million kilowatts of distributed new energy sources and approximately 12 million charging piles. The grid's capacity to carry and allocate power resources will significantly improve.

In terms of capabilities, we're strengthening flexible regulation capacity. We continue to promote the "three reforms" of coal-fired power plants in energy conservation, heat supply and flexibility. These efforts further improve coal power's efficient regulation performance and clean, low-carbon levels. We're coordinating the development of regulatory resources such as pumped storage and new energy storage while deeply tapping into demand response and regulation capabilities. Since the beginning of the 14th Five-Year Plan period, the country has completed the "three reforms" for coal-fired power units exceeding 740 million kilowatts. As of the end of June this year, the installed capacity of pumped storage nationwide reached 54.39 million kilowatts, while the installed capacity of new energy storage was 44.44 million kilowatts.

Regarding markets, we're fully leveraging their decisive role in resource allocation. We're actively promoting the construction of a unified national electricity market system. Through market transactions, we aim to guide the efficient and rational use of electricity, invigorate the vitality of business entities, and promote the large-scale optimization of electricity resources. In 2023, the volume of electricity traded in the Chinese power market accounted for 61.4% of total electricity consumption nationwide.

Looking ahead, we'll adhere to planning-led development, focusing on research and preparation for the 15th Five-Year Plan for energy and electricity development. We'll establish and improve working mechanisms, issue implementation plans for special actions, and efficiently and orderly advance the implementation of various actions for the new power system. We'll continuously enhance the grid's capacity for absorbing, distributing, and regulating clean energy. Thank you.

Guangming Daily:

I am particularly interested in issues related to sci-tech innovation. Sci-tech innovation is the core driving force behind China's energy transition. I've also noticed that the white paper outlines China's achievements in sci-tech innovation related to the energy transition. Could you please elaborate on the specific measures China has taken in this regard? Thank you.

Song Wen:

Thank you for your question. China has deeply implemented its innovation-driven development strategy in recent years, strengthening top-level design for energy technology innovation. We've established a "four-in-one" energy sci-tech innovation system that integrates major technology R&D, major equipment development, major demonstration projects and sci-tech innovation platforms. This approach promotes the deep integration of innovation and industrial chains, achieving important phased progress.

We're focusing on three key initiatives. First, we're promoting collaborative innovation. Leveraging major sci-tech projects and innovation platforms and the construction of major projects in the energy sector, we're strengthening collaborative innovation between industries, universities, research institutes, and end-users with enterprises as the main body. We've established and improved mechanisms for tackling key technologies and promoted the effective integration of technology R&D, result commercialization, and demonstration projects. Second, we're promoting the improvement of the policy framework. We've issued a series of strategic plans and industrial policies for sci-tech innovation in the energy sector, formulating innovation roadmaps and timelines. These support the development of new industries, models, and business forms, such as new energy storage, hydrogen energy, and the digital and smart transformation of the energy sector. Finally, we're accelerating the transformation of scientific achievements. We've continued to demonstrate pioneering major technological equipment and expedited the conversion of major energy sci-tech breakthroughs into real-world productive forces.

Next, the energy industry will continue to strengthen the role of technological innovation as the primary driving force, focusing on three key areas: First, we will fully unleash innovation potential. We will leverage the leading and driving role of innovation platforms to accelerate the overall efficiency of the energy technology innovation system, with enterprises as the primary contributors. Second, we will vigorously foster and develop new quality productive forces. We will promote technological advancements in areas such as new energy, nuclear power and smart grids. This includes actively nurturing new technologies, industries and business models, turning energy technologies and related industries into new growth drivers for industrial upgrading. Third, we will enhance the transformation and application of achievements. We will rely on major projects to promote breakthroughs, demonstrations, and the adoption of energy technologies and equipment. By creating a favorable environment for the early adoption of energy technology outcomes, we aim to continuously advance the iterative upgrading of new technologies and products through engineering applications. Thank you.

China Electric Power News:

Data shows that from 2013 to 2023, China maintained an average annual economic growth rate of 6% with an average annual energy consumption growth rate of 3.2%. Meanwhile, China's energy intensity decreased by a total of 26.1%, making it one of the fastest countries in the world in reducing energy intensity. How has China's energy usage evolved compared with the past? And what measures will be taken to consolidate this positive trend? Thank you.

Zhang Jianhua:

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

Li Chuangjun:

Thank you for your questions. Green is the cornerstone of ecological civilization, and China firmly upholds and practices the belief that lucid waters and lush mountains are invaluable assets. Since General Secretary Xi Jinping proposed the new energy security strategy of "Four Reforms and One Cooperation" in 2014, China has undertaken a series of green innovation initiatives, leading to an accelerated transformation in energy consumption patterns. As Mr. Zhang mentioned earlier, this transformation is primarily reflected in three key areas:

First, energy utilization has become more streamlined and efficient. China has consistently adhered to the principle of prioritizing energy conservation, enhancing efficiency in key energy-consuming sectors, and firmly curbing unreasonable energy consumption. Over the past decade, China has become one of the fastest countries in reducing energy intensity globally, resulting in an approximate saving of 1.4 billion metric tons of standard coal. As you mentioned, we have supported an average annual economic growth rate of 6% with an average annual energy consumption growth rate of 3.2%.

Second, the shift toward cleaner, low-carbon energy consumption has accelerated. The energy consumption structure has continued to optimize. Over the past decade, the proportion of coal consumption has decreased by a total of 12.1 percentage points, while non-fossil fuel consumption has more than doubled, with the level of electrification increasing by about 7 percentage points. In 2023, China's wind and PV power generation exceeded the electricity consumption of urban and rural residents, meaning that one-third of the electricity consumed nationwide was green electricity. The quality of oil products has achieved a three-level upgrade from the National III to National VI standards, and the population using natural gas has increased by 300 million, reaching 560 million people. Additionally, pilot applications of nuclear energy for heating and steam supply have been successfully implemented.

Finally, the concept of green energy consumption has rapidly taken shape. China actively promotes green and low-carbon lifestyles, vigorously advocates the excellent Chinese tradition of diligence and thrift, and is fostering a shift in lifestyle and consumption patterns toward simplicity, moderation, green, low-carbon and healthy living. We have launched campaigns to promote green living, organized themed activities such as National Ecology Day, stepped up efforts to promote green and low-carbon products, and encouraged the public to prioritize green transportation methods such as public transportation, cycling and walking.

Since the beginning of this year, documents such as the national guidelines to ramp up the green transition of socio-economic development and the action plan for energy conservation and carbon reduction for 2024-2025 have been implemented. These documents provide comprehensive guidance on promoting green transformation in key sectors, including industrial layout, spatial patterns, technological innovation and policy support. Going forward, we will ensure the effective implementation of these measures, actively expand green consumption, and accelerate the formation of green and low-carbon production and lifestyles. Thank you.

National Business Daily:

The white paper introduces the status of China's energy transformation. What advanced experiences and practices does China have in energy transformation? And what solutions has China contributed to the global energy transformation? Thank you.

Zhang Jianhua:

Thank you for your questions. I will address this. China's energy transformation faces two main challenges: ensuring energy security and accelerating green and low-carbon development. China has proposed a new energy security strategy and achieved significant results in energy transformation, forging a path that aligns with our national conditions and meets the requirements of the times. Our work has focused on five key areas:

First, we have established the vision of building a global community of shared future. We have proposed and implemented the vision of a global community of shared future and a community of life for humanity and nature, and taken an energy transition path of openness and cooperation to promote global sustainable development. Adhering to the principles of extensive consultation, joint contribution, and shared benefits, we have deepened energy transition cooperation with all countries under the Belt and Road Initiative framework and contributed China's strength to global green and low-carbon energy transition, in a bid to benefit people and the world.

Second, we have turned development blueprints into tangible projects. China has set goals for peak carbon emissions and carbon neutrality, fully harnessing the guiding role of national strategic plans. We have formulated medium- to long-term and five-year overall plans for the energy sector as well as plans for the development of renewable energy. These set specific goals, tasks and paths for green and low-carbon energy transition and development, which we have steadfastly advanced.

Third, we have focused on coordinating supply and demand. We have taken solid steps in "addition and subtraction" in this regard. On the supply side, we have delivered a strong performance in "addition" by improving the quality and expanding the quantity of non-fossil fuels. We have vigorously developed non-fossil energy, continuously optimized the energy structure and increased the proportion of non-fossil fuels in new energy demand. On the consumption side, we have excelled in "subtraction" through energy conservation and carbon reduction. Adhering to the principle that energy conservation is a primary energy source, we have tightened control over fossil fuel consumption, accelerated the clean and efficient use of fossil energy, and mobilized all sectors of society to use green energy and implement clean substitutes.

Fourth, we have established the new before abolishing the old and advanced energy transition in a well-ordered way. We have coordinated development and security, accelerating the transition while ensuring a safe and stable supply of energy. We have expedited the construction of a new electricity system, boosted the capacity of power grids to absorb new energy sources, and implemented reliable substitutes for fossil fuels in a well-ordered way. At the same time, we have also given full play to the supporting and guaranteeing role of traditional energy, promoting synergy and complementarity between new and traditional energy sources.

Fifth, we have balanced fairness and efficiency. On the one hand, we have intensified efforts to develop the energy market, promoting investment in new energy through market price signals. We have guided the transition by emphasizing the roles of thermal power as a basic guarantee and in systematically regulating power use. We have optimized energy consumption behavior and stimulated social demand for green energy. On the other hand, we have strengthened law-based governance, improving the legal framework for energy transition. We have strengthened market supervision, optimized public services, and created a stable, fair, transparent and predictable development environment for all types of business entities. This approach ensures an organic unity of efficiency and fairness in energy transition. Thank you.

Cover News:

China's EV industry has developed rapidly in recent years, but charging congestion occurs in some areas and during certain periods. What has the NEA done to improve EV charging infrastructure? Thank you.

Zhang Jianhua:

Thank you for your question. I'll invite Mr. Wan to respond.

Wan Jinsong:

Thank you for your question. China places great importance on the development of EV charging infrastructure, viewing it as crucial for promoting green, low-carbon energy transition and high-quality development in the transportation sector. Generally, national charging services for EVs have largely met the needs of the new energy vehicle (NEV) industry and the public's travel needs. However, as you mentioned, in some areas and during certain periods, such as holidays, particularly busy expressway service areas may have queues for EV charging. To address this issue, in recent years, the NEA has been committed to making improvements in three aspects and advancing its efforts in two ways.

First, we have improved the policy system. We issued policy documents, including the Implementation Opinions on Further Improving the Guaranteed Service Capacity of Electric Vehicle Charging Infrastructure. These documents have provided policy support and outlined specific work arrangements for layout plans, construction and operation, supporting power grids, and price rewards and subsidies.

Second, we have improved the EV charging network. According to the latest statistics, China had 10.6 million charging facilities as of July 2024, effectively meeting the charging needs of more than 25 million NEVs. In downtown areas of first-tier cities, the public charging service radius is already equivalent to gas stations. At present, charging piles have been installed at 95% of expressway service areas, forming an inter-city charging network covering "10 vertical, 10 horizontal and two rings of expressways" across China. Over one-third of the country's provincial-level regions have built charging piles in all their towns and villages.

Third, we have improved standards for EV charging. We issued 106 standards related to EV charging facilities, covering 21 professional fields and improving safety regulations across the industrial chain. At present, China's high-power direct current charging standard has reached a world-class level, with breakthroughs in wireless charging, roaming charges and other fields. The country's charging standard system is now on par with those of the United States, Europe, and Japan.

First, we should promote the rapid upgrading of charging technology. Currently, China has already established multiple routes of technology development, including conductive charging, battery swapping and wireless charging, with the full localization of DC charging power modules. Over the past five years, costs have been reduced by 90%. We have spearheaded globally the introduction of charging methods, such as charging pantograph s and group charging and control, rapidly popularizing high-power charging technology and achieving demonstration applications of vehicle-grid interaction.

Second, we should foster an industrial ecosystem. Currently, private enterprises account for over 70% of the equipment scale among charging station operators. We have gradually established a user-centric charging service system to ensure "someone builds, someone manages and sustainability." By integrating charging cloud services with industries, such as automobiles, finance and transportation, we have formed an "internet + charging" industrial ecosystem.

Next, we will accelerate the construction of a high-quality charging infrastructure system in accordance with the requirements of the action plan to build a system for new energy sources between 2024 and 2027 to support the green and low-carbon development of the transportation sector. We believe that with the continuous improvement of our country's charging infrastructure construction layout and service system, the issues of slow and difficult charging in some regions, and at specific times, will be further alleviated, and the charging experience for car owners will become more comfortable. Thank you!

Shou Xiaoli:

Due to time constraints, last question please.

Beijing Youth Daily:

Regarding non-fossil energy, I'd like to specifically ask about nuclear power. In recent years, China has achieved remarkable growth in terms of both scale and speed in developing nuclear power and has established a complete industrial chain for nuclear power technology. How can China's nuclear power industry ensure safer, greener, more efficient as well as diversified development in the future? Thank you.

Zhang Jianhua:

Thank you for your question and for your interest in our nuclear power industry. Nuclear power may be a niche product, but it is indeed a clean, low-carbon and efficient high-quality energy source, serving as an important base-load power source in the power system. Developing nuclear power is of great significance for ensuring energy security, promoting a green and low-carbon energy transformation, and helping achieve the goals of reaching peak carbon emissions and carbon neutrality. China's nuclear power industry actually started in the 1980s. After 40 years of exploration and practice, we have established a complete industrial system and are one of the few countries in the world with a complete nuclear power industrial system. The past decade of the new era has especially been the fastest period of development for our country's nuclear power industry, achieving historic accomplishments. We have accumulated rich experience and engineering capabilities in nuclear power technology research and development, engineering design, equipment manufacturing, construction, and operation.

You may have noticed that last week, the State Council approved five new nuclear power projects, totaling 11 units. Currently, China has approved a total of 102 nuclear power units in operation and under construction in the mainland, with a total installed capacity of 113.13 million kilowatts. This ranks first in the world. Currently, 56 units are in operation with an installed capacity of 58.08 million kilowatts. The 46 approved units, including those currently under construction, have an installed capacity of 55.05 million kilowatts. Therefore, combining both operational and under-construction units, China ranks first globally.

In recent years, our country's operational nuclear power units have maintained high levels of power generation, fully leveraging their role as baseload power sources. Although nuclear power accounts for less than 2% of the country's total installed capacity, it generates nearly 5% of the total electricity output. In particular, nuclear power has become an important supporting and primary power source in eastern coastal regions. In five provinces—Liaoning, Zhejiang, Fujian, Guangdong and Hainan—nuclear power accounts for more than 20% of the total electricity generated, playing a vital role in ensuring power supply.

The 20th National Congress of the CPC also made strategic plans for the active, safe and orderly development of nuclear power, charting the course for nuclear power development in the new era. In the future, we will follow the central government's deployment, balancing development and safety. We will adhere to the strictest standards for planning and approval, the highest quality for project construction, the most rigorous requirements for operation and management as well as the strictest measures for supervision and regulation to ensure steady and orderly construction progress. We will actively promote the comprehensive utilization of nuclear energy in heating, steam supply and seawater desalination, steadily increase the proportion of nuclear power in energy and electricity consumption as well as support the energy revolution and green and low-carbon development. At the same time, we are actively participating in global nuclear power construction, sharing China's experience and contributing to the global effort to combat climate change. Thank you.

Shou Xiaoli:

Thank you, Mr. Zhang Jianhua. Thank you to all the presenters and to all the journalists for participating. That's all for today's press conference. Goodbye!

Translated and edited by Liu Jianing, Wang Qian, Xu Kailin, Ma Yujia, Li Huiru, Mi Xingang, Huang Shan, Yan Xiaoqing, Yang Chuanli, Liu Sitong, Liu Caiyi, Yuan Fang, Yan Bin, Wang Wei, Wang Ziteng, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Qi Yanjun, executive vice minister of public security

Mr. Qiu Baoli, director general of the Bureau of Public Security Management of the Ministry of Public Security (MPS)

Mr. Li Jiantao, director general of the Bureau of Environmental Resources, Food and Drug Crime Investigation of the MPS and director general of the Bureau of Intellectual Property Crime Investigation of the MPS

Mr. Wang Qiang, director general of the Bureau of Traffic Management of the MPS

Chairperson:

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

Date:

Aug. 27, 2024 

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Qi Yanjun, executive vice minister of public security; Mr. Qiu Baoli, director general of the Bureau of Public Security Management of the Ministry of Public Security (MPS); Mr. Li Jiantao, director general of the Bureau of Environmental Resources, Food and Drug Crime Investigation of the MPS and director general of the Bureau of Intellectual Property Crime Investigation of the MPS; and Mr. Wang Qiang, director general of the Bureau of Traffic Management of the MPS, to brief you on relevant developments and to take your questions. 

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

Qi Yanjun:

Thank you, Ms. Shou. Hello, friends from the media.

Since the 20th National Congress of the Communist Party of China (CPC), public security organs nationwide have fully implemented the guiding principles of the congress and the second and third plenary sessions of the 20th CPC Central Committee, thoroughly studied and implemented the important remarks of General Secretary Xi Jinping on high-quality development, and carried out the arrangements of the National Public Security Work Conference. We have further innovated our philosophies, optimized measures and improved methodologies, with the aim of creating sound political, social, service and legal environments that are conducive for high-quality development. We have made new contributions to sustaining rapid economic growth and long-term social stability, which are two remarkable achievements. 

We have made every effort to strengthen political security, fostering a secure and stable political environment for high-quality development. We have fully applied a holistic approach to national security, prioritizing political security, closely guarding against and cracking down on infiltration, subversive, disruptive and destructive activities by internal and external hostile forces, to firmly safeguard the security of China's state power, systems and ideology. We have resolutely and initiatively cracked down on terrorism and separatism and continuously conducted special actions to combat violence and terrorism, firmly preventing violent and terrorist cases and incidents. We have thoroughly implemented the Global Security Initiative, deepened international law enforcement cooperation to maintain security, and made more partners in law enforcement and security cooperation. We have firmly safeguarded the legitimate rights and interests of Chinese citizens and legal persons overseas. 

We have made every effort to maintain the long-term stability and security of society, fostering a peaceful and harmonious social environment for high-quality development. We have upheld a people-centric development philosophy, carried forward and evolved the Fengqiao Experience (an approach to resolve social disputes at the community level) in the new era, and facilitated the improvement of public security governance mechanisms and social governance systems, advancing the Peaceful China Initiative to a higher level. In 2023, public security organs nationwide filed 4.8% fewer criminal cases than in 2022, whereas the number of public security cases being investigated and handled was on par with that in 2022. From January to July this year, the number of criminal cases filed dropped 30.1% year on year, achieving a 14-month decline streak; the number of telecommunications and online fraud cases filed decreased 23.8% year on year, falling for 11 consecutive months; and 99.94% of current homicide cases were solved, the highest rate in history. People's sense of security has constantly improved. Foreigners staying in China often praise it as one of the safest countries in the world. In 2023, the national public security index maintained a high standard, reaching 98.2% and remaining above 98% for four years in a row. 

We have made every effort to enhance coordinated reforms, fostering an excellent and efficient service environment for high-quality development. We have fully and faithfully applied the new development philosophy, further deepening the reform of public security related administrative services to continue unleashing the internal driving forces and creativity of society. Since 2019, we have fulfilled the duties and missions of public security authorities and rolled out a series of new reform measures to benefit both individuals and enterprises. We have advanced one-stop government services by improving the list-based management mechanism for relevant major tasks. We have diversified the methods for accessing administrative services, optimized related procedures, reduced the materials required, and minimized costs. In terms of benefiting individuals and enterprises, we have issued more than 240 reform measures to facilitate socioeconomic development and improve the business environment. In terms of public security and household administration, we have continuously deepened efforts in providing frequently used household administrative services across provinces and providing ID card related services outside home jurisdiction. More than 4.15 million household registration transfers have been handled across provinces, and 116 million ID cards have been renewed or reissued outside home jurisdiction. In terms of traffic management, we have rolled out 10 sets of new reform measures, benefiting more than 800 million people and cutting more than 70 billion yuan ($9.86 billion) in administrative costs for the public. In terms of integrated urban-rural development, the process of granting permanent urban residency to people moving out of rural areas has been advanced in an orderly manner. Since 2014, a total of 150 million of these people have been granted permanent urban residency in a steady and orderly manner. Nationwide, the registered urban population proportion reached 48.3% in 2023, up from 35.9% in 2014.

We have made every effort to improve public security through rule of law, fostering a fair and just legal environment for high-quality development. We have continuously deepened efforts in standardizing law enforcement, improving rule of law in public security work and the credibility of law enforcement, to let the public feel a sense of fairness and justice in our handling of each case and incident. We have upheld and fulfilled our commitments to unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting and guiding the development of the non-public sector. Based on the principle of equitable and law-based protection, we have investigated and handled 396,000 criminal cases involving intellectual property infringement and disruption of market order since 2019. We have insisted on boosting development and ensuring effective governance through good legislation, facilitating the formulation and revision of more than 50 laws and regulations related to public security. We have insisted on ensuring fairness and justice by standardizing law enforcement, setting up 3,055 management centers for law enforcement and case handling at city and county levels, which have become vivid examples showcasing the law-based governance of China. We have thoroughly promoted strict, standardized, impartial and civilized law enforcement, improved related methodologies, and standardized the language and conduct used in the process, achieving a better balance between law, reason and sense, and ensuring the timeliness, intensity and effect of law enforcement. 

On the new journey, public security authorities nationwide will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee, to gain a deep understanding of the decisive significance of establishing Comrade Xi Jinping's core position on the Party 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 will be more conscious of the need to maintain political integrity, think in big-picture terms, follow the leadership core, and maintain alignment with the central Party leadership. We will remain confident in the path, theory, system and culture of socialism with Chinese characteristics. We will uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership. We will also further deepen all-round reform of the public security system and pursue modernization with our work, increasing our contribution to building a great country and advancing the rejuvenation of the Chinese nation on all fronts through Chinese modernization.

That is all for my introduction. Next, my colleagues and I are ready to take your questions. 

Thank you, Mr. Qi, for your introduction. Let's move on to the question-and-answer session. Please identify the media outlet you represent before raising your question. The floor is now open for questions.

Hongxing News:

Today's China is a country of people who are on the move. We've noted that the third plenary session of the 20th Party Central Committee outlined plans for promoting integrated urban-rural development. What steps will public security agencies take to support this integration, especially in reforming the household registration system and granting permanent urban residency to eligible rural migrants? Thank you.

Qi Yanjun:

Thank you for your question. I would like to invite Mr. Qiu to answer it.

Qiu Baoli:

I'll answer this question. Household registration system reform is a critical issue attracting significant public attention. The third plenary session of the 20th Party Central Committee proposed implementing systems allowing people to obtain household registration and access basic public services where they permanently reside. We will push to see that eligible rural-to-urban migrants enjoy the same rights as registered local residents regarding social insurance, housing support, and access to compulsory education for their children living with them. We'll also accelerate the process of granting them permanent urban residency and explore establishing a unified national population management system. These efforts will guide further household registration reform. The MPS will work with relevant departments to conduct in-depth research and take effective measures to grant permanent urban residency to eligible rural-to-urban migrants in an orderly manner, promoting integrated urban-rural development.

First, we're committed to introducing policies that benefit people. We have accelerated the implementation of the household registration system at the place of habitual residence. Through the joint efforts of various regions and departments, most cities nationwide have lifted all restrictions on household registration. Next, we'll guide local governments to implement category-based and region-specific policies, adhering to basic conditions of legal and stable employment or residence, including leasing. We'll relax restrictions on household registration in cities with 3 to 5 million permanent residents and improve points-based household registration policies for megacities with more than 5 million permanent urban residents. These measures aim to better facilitate the urbanization of the rural migrant population.

Second, we have committed to offering convenient services to the public and ensuring easy access to commonly used government services. In recent years, public security agencies have made significant progress in advancing the handling of common government services on an interprovincial basis. As of the end of July this year, 2.4 million household certification services were handled interprovincially. Meanwhile, over 1.2 million resident ID cards were issued for first-time applicants interprovincially. More than 42.32 million resident ID cards were replaced and reissued across provinces and 73.62 million across prefectures. Building on the fully implementation of nationwide access to household registration transfer, resident ID cards and temporary resident ID cards, we will guide local governments to actively respond to new public expectations and demands. We will steadily advance the online completion of all procedures for common household administration services, such as reissuing, replacing and obtaining resident ID cards, so that tasks can be done without leaving home.

At the same time, we remain committed to carrying out reforms that benefit the public, actively exploring the establishment of a national unified household registration management system. In recent years, valuable practical experience has been gained in deepening the reform of the household registration system, which has laid a solid foundation for establishing a unified national household registration management system. Next, we will continue to deepen the reform of the household registration system and accelerate the integration of the function of resident ID cards and residence permits. Taking resident ID numbers as the unique identifiers, we will accelerate the interdepartmental connection and sharing of population information resources in accordance with the law and aggregate information on employment and education so as to better promote one-stop government services. We will advance legislation in the field of household registration management so as to provide a legal guarantee for a national unified household registration management system. Thank you.

China Police Daily:

In recent years, the MPS has continued to promote the reform of administrative management services and introduced a series of measures. Notably, in August 2023, the MPS issued 26 measures to support high-quality economic and social development. Could you please update us on the overall progress of these initiatives? Thank you.

Qi Yanjun:

Thank you for the question. The reform of administrative management services is an important vehicle for public security agencies to advance high-quality development. Since the 20th CPC National Congress, the MPS has launched a series of reform measures to support high-quality development, including the 26 measures you just mentioned. The implementation of these reform measures has achieved remarkable progress. Allow me to briefly outline this progress in three key areas.

In terms of serving and ensuring the implementation of major national strategies, we have continued to increase institutional support. We have further refined the household registration transfer policy and continued facilitating urbanization of the rural migrant population. At present, household registration restrictions have been comprehensively relaxed or lifted in all cities, except for a few megacities in the eastern region and some provincial capitals in the central and western regions. Focusing on serving coordinated regional development, we have studied and formulated a series of measures, such as certain measures for supporting accelerated growth in the central region. We have continued to enhance law enforcement coordination in the Beijing-Tianjin-Hebei region and the Yangtze River Delta, serving coordinated regional development through collaboration among regional police forces. We have advanced the institutional opening up of immigration management and enhanced the convenience of immigration and entry-exit administration. From January to July 2024, the number of foreign tourists visiting China for sightseeing (leisure) reached 5.722 million, with 3.803 million for meetings (business) and 1.723 million for visits to relatives and friends, rising by 403%, 81.5% and 107.4% year-on-year respectively.

In terms of serving the establishment of a modern industrial system, we have continued to unleash the vitality of innovation, entrepreneurship and creativity. We have highlighted service functions, established regular police-enterprise contact mechanisms, and innovated online and offline service models. We have developed several service brands to assist and protect enterprises, including the "11087 Qinqing in Zhejiang" by Zhejiang public security authorities and the "Qinqing in Fujian" brand by Fujian public security authorities. We have further facilitated the passage of vehicles for logistics and freight transportation. More than 270 cities above the prefecture level have lifted traffic restrictions on new energy light trucks, as well as smaller box trucks and enclosed trucks, promoting urban truck routes and serving nearly 30,000 enterprises. We have further regulated law enforcement involving enterprises and strictly regulated coercive measures that concern the personal rights of citizens as well as the sealing, sequestering and freezing of assets. We will take timely and effective actions against prominent law enforcement problems and protect the property rights and lawful rights and interests of business operators in accordance with the law.

In terms of efficient convenience for the people and benefits for enterprises, we have innovated and optimized public security administration services. We will continue to promote more public security administration services to be handled "online and on mobile devices; in one visit and in an integrated manner; nearby and in different places." As I just introduced, people can apply for identity cards, electronic driver's licenses and vehicle licenses outside of their home jurisdiction. Currently, residence registration transfer, identity cards, driver's licenses and passports can all be handled throughout the country. Comprehensive service windows for public security administration services have been set up in 24,000 police stations, where more than 100 government service items can be handled. In addition, more than 20,000 self-service devices have been installed in police stations across the country to provide the public with 24/7 services. Centering on the entire process and all links of people's travel, including license plate and certificate application, road traffic and traffic accident handling, we have launched several batches of reform measures, such as simplifying vehicle registration and transactions, optimizing the management of bus lanes in cities, and promoting online video quick handling of minor traffic accidents. So far, 250 million electronic driver's licenses have been issued. Electronic vehicle licenses have been piloted in 60 cities including Beijing, with more than 22 million vehicle owners issued with electronic vehicle licenses. These efforts have provided more convenient and efficient public security traffic management administration services for the public.

There is no end to the development of services. Next, the public security authorities will further innovate their concepts, improve their methods and optimize their measures to continuously enhance the efficiency of service management and more proactively lead high-quality development. That is all from me.

Dutch Public Broadcaster NOS:

Yesterday, the period of soliciting opinions closed for the newly proposed national network identification and authentication management, also referred to as "Wanghao" or "Wangzheng." These proposed measures caused backlash in China, including among leading intellectuals. How will your ministry guarantee that a transgression on one internet platform will not cause an individual to be excluded from all other necessary internet services needed in modern day life?

Qi Yanjun:

Thank you to the foreign journalist friend for your question. Recently, during the process of soliciting opinions on cyberspace IDs and certificates, many good opinions and suggestions have been put forward by all sectors of society, and we have paid interest to all of them. Regarding this issue, I would like to invite Mr. Qiu to answer.

Qiu Baoli:

I'll answer this question. Thank you for your interest in this issue.

As this journalist mentioned, on July 26, the MPS and the Cyberspace Administration of China (CAC) jointly released the draft measures for the administration of cyberspace IDs and solicited opinions, attracting widespread attention. On Aug. 25, the soliciting period ended, and we are now meticulously sorting through the opinions from all sides and fully incorporating everyone's suggestions. Regarding the issues of cyberspace IDs and certificates that everyone is interested in, the media has provided detailed interpretations of related issues last week. I recommend the journalist friend look into them. The explanations are very detailed and comprehensive, and can answer your questions.

However, it should be noted that after the implementation of the national cyberspace ID service, users will have an additional safe and convenient option. Original network identity authentication methods can still be used, and users can still access the internet normally without using cyberspace IDs or certificates. Thank you.

Hong Kong Bauhinia Magazine:

Currently, the topics of unmanned and autonomous driving are very popular. We also understand that the MPS has cooperated with the Ministry of Transport and other departments on numerous areas. What other considerations have the MPS made in promoting the development of unmanned and autonomous driving? Thank you.

Qi Yanjun:

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

Wang Qiang:

I'll answer this question. This is also an issue of great concern to all sectors of society. Intelligent connected vehicles (ICVs), commonly known as unmanned or autonomous vehicles, are currently a major high ground in the new round of scientific and technological revolution worldwide. Currently, through continuous technological accumulation and testing, China's ICV industry is advancing steadily. In this process, the public security traffic management departments and public security organs have fully leveraged their functions and protected the legitimate rights and interests of traffic participants in accordance with the law, continuously adapted to the development of autonomous driving technology, and actively cooperated with competent authorities to carry out management and support work. So far, a total of 16,000 license plates for testing autonomous vehicles have been issued, and 32,000 kilometers of public roads have been opened for testing, which has effectively supported the verification and updating of autonomous driving technology.

On the one hand, we are actively cooperating with competent authorities to promote road trials. Our country is currently forming a comprehensive management system for autonomous vehicles covering road testing, demonstration and application, market access and on-road operation. In terms of road testing and demonstration and application, in July 2021, the MPS jointly issued a document with the Ministry of Industry and Information Technology (MIIT) and the MOT, clearly stipulating the requirements for entities, drivers and vehicles involved in the technical testing and demonstration and application of autonomous vehicles on public roads, as well as the management of road testing and demonstration and application, and the handling of traffic violations and accidents. In terms of market access pilot program and on-road operation, in November 2023, the MPS jointly issued regulations with the MIIT and other departments, conducting a pilot program of market access for autonomous vehicle products that have undergone technical testing and are ready for mass production. Autonomous vehicles included in the MIIT's announcement after the access pilot program can purchase insurance, get registered and conduct pilot tests for on-road operation within designated areas. In addition, in the pilot application of the vehicle-road-cloud collaborative system, the MPS jointly issued a notice with the MIIT and other departments, refining and improving relevant management measures for road traffic safety management and cybersecurity.

On the other hand, we are also actively promoting the revision of the Road Traffic Safety Law. Detailed regulations have been established regarding road testing of self-driving cars, their on-road passage, traffic violations, accident handling and the pursuit of related responsibilities. Currently, the revision of the Road Traffic Safety Law has been included in the State Council's 2024 annual legislative agenda and the first category of the legislative plan of the Standing Committee of the 14th National People's Congress.

Additionally, we are proactively advancing the formulation and revision of relevant technical standards. In the areas of registration management, identity authentication, and safety and road traffic management for autonomous driving, we are actively promoting the development of eight national standards, including technical requirements for driving safety tests for intelligent and connected vehicles, as well as 10 public safety industry standards, such as elements and setup requirements for driving safety tests on public roads of intelligent and connected vehicles. We are also working closely with the MIIT and other departments to promote the establishment of a unified national technical standard system for autonomous vehicles.

Next, the MPS will balance development and security, actively cooperating with the MIIT, the MOT and other relevant authorities. We will promote the advancement of the autonomous driving industry and the transformation and upgrading of the automotive industry in a legal, secure, steady and orderly manner, serving the high-quality economic development of our country. Thank you.

CNR News:

We are aware that public security authorities play a crucial role in safeguarding ecological safety. To better protect our lucid waters and lush mountains, what specific measures will the public security authorities take in the future to combat eco-environmental crimes? What progress has been made? Thank you.

Qi Yanjun:

Environmental and ecological protection is indeed a matter of high concern for all sectors of society. I would like to invite Mr. Li to answer your questions.

Li Jiantao:

Thank you for your interest. In recent years, the public security authorities have resolutely implemented the spirit of General Secretary Xi Jinping's important instructions on eco-environmental protection, always adhering to the strictest systems and most rigorous rule of law to protect the ecological environment. In conjunction with relevant departments, they have effectively cracked down on environmental and resource crimes in accordance with the law. From January to July of this year, a total of over 30,000 criminal cases involving the environment and resources were filed and investigated nationwide. Our work primarily focuses on the following three key areas:

To prevent and control pollution, the public security authorities have lawfully cracked down on environmental pollution crimes. In collaboration with the Ministry of Ecology and Environment and other relevant departments, we have continuously carried out special operations to combat environmental crimes related to hazardous waste and to rectify issues of falsification by third-party environmental protection service institutions. A total of over 1,600 criminal cases involving environmental pollution have been investigated and dealt with. For instance, based on clues from the "Oct. 25" environmental pollution case in Hechi, Guangxi, the MPS organized public security authorities in Inner Mongolia, Jiangxi and other regions to conduct thorough investigations, dismantling a gang involved in environmental pollution crimes that spanned seven provinces and regions, and lawfully disposing of thousands of metric tons of electronic waste.

In the protection of biodiversity and natural resources, we have lawfully cracked down on crimes that damage environmental resources. We have closely monitored criminal activities such as endangering precious and near-extinct wildlife, and illegal hunting and fishing, continuously increasing our crackdown efforts. From January to July of this year, we filed and investigated over 16,000 criminal cases in these areas. The MPS organized public security authorities in 21 provinces and regions to carry out a"May 22" special operation for concentrated crackdown on illegal hunting, filing and investigating over 800 criminal cases, and delivering a heavy blow to the arrogance of the criminals. In collaboration with relevant departments, we have launched special operations such as the Chunfeng (spring breeze) action, lawfully cracking down on crimes such as damaging ancient trees and famous wood species, endangering national key protected plants, and illegal sand and mineral mining, filing and investigating over 8,800 criminal cases, and effectively protecting the safety of forests and mineral resources.

In ensuring national food security, we have lawfully cracked down on crimes that damage arable land. We have implemented the strictest arable land protection system with tough measures, actively participated in joint departmental enforcement, and lawfully cracked down on related crimes. From January to July of this year, public security authorities nationwide filed and investigated 3,600 criminal cases of destruction of arable land and other types of agricultural land. The MPS organized public security authorities in Inner Mongolia, Liaoning, Jilin and Heilongjiang to carry out regional campaigns against criminal damage of black soil. The number of such cases solved this year has doubled compared to the same period last year, effectively protecting black soil, also known as the "giant panda in cultivated land." At the same time, we have continued to crack down on the manufacture and sale of counterfeit and substandard seeds, chemical fertilizers and pesticides and other agricultural input related crimes, filing and investigating over 160 criminal cases, and effectively ensuring agricultural production.

Next, the public security authorities will deeply practice the concept that lucid waters and lush mountains are invaluable assets, accelerate the establishment of an ecological policing mechanism led by public security departments and involving joint operations with relevant departments, conduct end-to-end crackdowns on illegal and criminal activities, comprehensively protect lucid waters and lush mountains, as well as support green development throughout the entire process, facilitating the Beautiful China Initiative by ensuring security. Thank you.

Guangming Daily:

With the continuous improvement of living standards in rural areas, the demand for vehicles is also increasing. What measures have the MPS taken to improve transport management and better meet the needs of rural residents for vehicle use and convenient administrative services, and what progress has been made? Thank you.

Qi Yanjun:

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

Wang Qiang:

Thank you for your interest. With the comprehensive advancement of rural revitalization in recent years, the number of vehicles and drivers in rural areas has been growing rapidly at a rate in excess of 10 million a year. Currently, the number of motor vehicles and drivers in rural areas of China accounts for more than 50% of the national total. In order to better support the rural revitalization strategy, the MPS has instructed local public security authorities to further refine service measures, comprehensively extend traffic management services to rural areas, and better meet the needs of rural residents for convenient services.

First, we have further delegated traffic management duties to county-level authorities. Duties such as compact car registration and driver's license tests have been delegated to traffic management departments of county-level public security authorities at a faster rate. By the end of this July, 90% of counties and county-level cities nationwide have carried out compact car registration and 55% of them have carried out all-subject driver's license tests for compact cars. These efforts have significantly relieved the burden on rural residents who would have travelled back and forth to access these services. Meanwhile, we have further expanded the scope of duty for county-level vehicle administration offices. We have piloted registration services for medium-sized passenger cars and above in 174 county-level vehicle administration offices, providing residents with easy access to such service near their homes. At the same time, more efforts have been made to make county-level vehicle administration offices more standardized and better structured. We have improved facilities at county-level service centers, optimizing their service environment, implementing measures such as requiring no forms and copies at service windows and continuing to increase their service quality. 

Considering the frequent usage of motorbikes in rural areas, we have further improved the management of the driver's license test for motorbikes. We have upgraded the question bank for the motorbike license test and increased scenario-based questions with pictures, making the test more practical and targeted. We have also put forward measures like test appointments and carrying out tests in rural areas to help people living in rural areas be able to take the test and receive driving licenses more conveniently near their homes. 

In addition, considering the comparatively large number of traffic security risks in rural areas, we have focused on increasing the awareness and capabilities for people living in rural areas to proactively prevent such risks. Publicity and education are essential to further spread traffic security knowledge and enhance traffic civility throughout rural areas. Therefore, in recent years, we have taken further actions, such as publicity and education, to promote public awareness of road traffic security, compiling a brochure series of traffic security knowledge in rural areas. We have also worked with publicity departments, agriculture and rural affairs authorities, as well as other government organs, to launch the Beautiful Countryside Circuit Tour. By means of traffic security promotion wagons, experience camps, lectures and rural broadcasts, we have disseminated legal knowledge and protection tips involving traffic security among thousands of households throughout rural areas. By doing so, we have promoted the spread of law-based governance and traffic security knowledge in rural areas through multiple channels, influencing 430 million local people and strengthening public support for traffic civility. Thank you.

Beijing Youth Daily:

We have noted that the MPS has launched summer crackdown campaigns to maintain law and order for three consecutive years. What are the arrangements for this year's summer campaign? What is the progress so far? Thank you.

Qi Yanjun:

I will answer these questions. In June 2022, taking regular patterns and characteristics of cases often found in summer into consideration, the MPS Party Committee deployed all public security organs across the country to carry out a "100-day campaign" to crack down on illegal and criminal activities while maintaining law and order. This campaign successfully safeguarded social security and stability during the summer, winning public appreciation and becoming a highlight of the public security organs' contribution to maintaining social stability and serving the people. As the reporter just mentioned, this is the third year for us to carry out the "summer campaign." Our aim is to safeguard the people's safety through efforts in maintaining law and order during the summer, so as to ensure high-quality development with a high level of security.

Since the start of this year's "summer campaign," all public security organs nationwide have comprehensively implemented combat, prevention, management, control and construction measures based on the integrated mechanism of "intelligence-command-action." So far, we have launched two rounds of centralized and unified inspections and publicizing activities during summer nights, addressing 491 cross-regional cases with long criminal chains and huge impacts, such as those involving pornography, gambling, drugs, food, medicine, the environment, telecom and online fraud as well as cybercrime. Through these efforts, the "summer campaign" has made clear progress, with many prominent criminal behaviors cracked down on in accordance with the law, emergency cases and accidents appropriately handled as well as risks and hidden dangers effectively eliminated. During the campaign, reported crimes and public security offenses received by the 110 hotline fell by 18.1% and 10.9%, respectively. During this year's "summer campaign," the MPS has used information technology to directly extract all data, easing the burden at the primary level and ensuring objectivity and truthfulness. 

Next, the MPS will direct local public security organs to work according to their own summertime social security conditions, take stronger and more effective measures to crack down hard on all kinds of prominent illegal and criminal behaviors as well as make every effort to safeguard the people's safety and overall social stability. Continuous efforts will be made to make sure the "summer campaign" meets set targets and delivers concrete results. Thank you.

Tide News:

The public is quite familiar with police stations. Whatever trouble occurs, people turn to police stations for help. Police stations are primary-level public security organs and a window that has more contact with the people. During the process of enhancing the urban and rural community governance system, how will you better leverage the role of police stations in serving the public? Thank you.

Qi Yanjun:

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

Qiu Baoli:

This is indeed a pertinent question and I will answer it. Police stations are primary-level public security organs. Their police officers maintain the closest contact with residents and are most familiar with communities. In recent years, all urban and rural police stations have actively performed their duties in improving community governance, further promoting a community policing strategy in urban and rural areas as well as fully integrating with community self-governance and grid-based management. Relying on Party organizations at the community level, we have mobilized more than 23 million people in public participation in crime prevention and control, cultivated over 20,000 social organizations that help safeguard social security and carried out various safety activities, significantly promoting social harmony and stability at the grassroot level. Particularly, public security organs at ministerial and provincial levels have nominated 2,082 "Fengqiao-style police stations," applying and further developing the Fengqiao model for promoting community-level governance in the new era. Social disputes at the community level are numerous and wide ranging, accounting for more than 50% of reported cases received and handled by public security organs. Considering this, we have guided police stations to establish and improve mechanisms that align courts with police stations as well as station mediators and lawyers in police stations. By doing so, we have resolved social disputes through multiple channels and promoted comprehensive prevention and treatment of risks. As a result, more than six million cases of social disputes have been addressed annually, and more than 12 million requests for assistance from the public have been handled.

Going forward, the MPS will provide guidance for the public security organs nationwide to implement the guiding principles of the third plenary session of the 20th CPC Central Committee, and carry out the three-year work plan for police stations nationwide to enhance their work. We will promote further collaboration between the police and the public, and improve the primary-level governance system in rural and urban areas. We will implement the "Police Officers Visit Households" campaign, and organize the "Five Prevention" community outreach campaign, which involves engaging with local communities to promote awareness and the prevention of theft, fraud, drug abuse, conflicts and disputes, and public security incidents. By doing so, we are able to better respond to public concerns, and reduce crime and cases in communities. In this way, the police and the public will work together to create a safe and secure environment. We will dedicate ourselves to building "Fengqiao-style police stations," adhering to the mass line guided by exemplary models. We will promote effective Fengqiao-style practices to proactively address conflicts and risks, provide services for residents in communities, and consolidate the foundation of primary-level governance. To achieve the full coverage of "one police officer responsible for one village (grid)," we will equip villages (or communities) with auxiliary police officers or police assistants, and develop it with grid-based management and public services in synergy to jointly improve primary-level governance. We will boost public participation in activities such as patrols, encouraging neighbors to look out for each other, offering help for those in need, and providing educational programs. By doing so, we aim to foster a community of social governance based on collaboration, participation and shared benefits. We will actively participate in primary-level governance, and deepen the reform of establishing one comprehensive command room and two teams of police officers working in communities and as law enforcers, advancing the construction of the fundamental management center, and improving the collaboration mechanism between police stations, specialized police units and primary-level organizations. By doing so, we will ensure that police stations perform their duties in a more standardized, regulated and professional manner. Moreover, we will encourage directors of police stations to be part of the leading groups of towns, townships and communities, and encourage community police officers to be part of the leading groups of villages and communities, so as to enable them to conduct proactive and preventive policing in communities. Thank you. 

China News Service:

The protection of intellectual property (IP) is crucial for high-quality development, and strictly protecting IP will encourage greater enthusiasm for scientific and technological innovation. What efforts have the public security organs made to crack down on infringements, counterfeiting and other illegal activities infringing on IP rights? What achievements have been made in this regard? Thank you.

Qi Yanjun:

Thank you for your questions. Mr. Li Jiantao, as the chairperson said previously, is director general of the Bureau of Environmental, Resource, Food and Drug Crime Investigation. He is also director general of the Bureau of Intellectual Property Crime Investigation. As such, I'd like to invite Mr. Li to answer this question. 

Li Jiantao:

Thank you for your concern. In recent years, the public security organs nationwide have prioritized the protection of IP rights. We have organized the "Kunlun" series of special campaigns for six consecutive years to crack down on all kinds of crimes infringing on IP rights in accordance with the law, providing sound legal support for fostering new quality productive forces and promoting high-quality development. In June this year, the Bureau of Environmental, Resource, Food and Drug Crime Investigation of the MPS was given an additional title of the Bureau of Intellectual Property Crime Investigation in a bid to encourage the public security organs across the country to strengthen their professional teams, and provide more guidance for the endeavors to crack down on IP rights infringements. From January to July this year, public security organs across China have filed and investigated 21,000 cases of IP infringements and counterfeits. To be more specific, we have made efforts in the following aspects:

First, we have been firmly committed to the principle of strict measures in accordance with law. We have launched intensive crackdowns on violations of IP rights which the public are concerned about, including the production and sale of counterfeit goods, counterfeiting and piracy, so as to maintain a high level of deterrence against such crimes. Moreover, in order to meet the needs of sci-tech innovation and their industrial development, we have stepped up our efforts to combat infringements of commercial secrets and patent counterfeiting in the fields of new technologies, new industries and new business formats. Notably, we have intensified our efforts to tighten regulations on the filing of criminal cases related to infringements of commercial secrets, providing effective solutions to the pressing difficulties faced by some enterprises in reporting and collecting evidence for such types of cases. 

As Mr. Qi said, we have upheld and fulfilled the commitments to the public and non-public sectors, and made optimizing the business environment a top priority, protecting the legitimate rights and interests of all businesses in a law-based and equitable manner. As such, we are able to help build a market-oriented, law-based and international business environment. We have been committed to proactive and preventive policing. Given the problem of weak self-protection awareness among some enterprises, we have promoted some experiences and practices, such as the practices of the Zhejiang police which have specifically designated police officers to deal with IP-related policing matters and the practices of the Changsha Public Security Bureau in Hunan province which set up work stations in enterprises to protect their IP. By doing so, we aim to intervene, detect and deal with infringement risks as early as possible, so as to help enterprises improve their self-protection capabilities. 

IP protection is intertwined with a wide range of fields. As a result, we have attached great importance to inter-departmental coordination, so as to establish a collaborative work model that leverages professional expertise, mobilizes entire police forces, and fosters inter-departmental collaboration, and public participation. We have worked with departments responsible for IP, market regulation and copyright to enhance the connection between administrative law enforcement and criminal justice, and make joint efforts to launch crackdown campaigns. We have promoted the advanced experiences of Beijing's collaborative law enforcement mechanism, which combines the law enforcement forces of the public security organs and administrative departments, to ensure information sharing, joint analysis and decision-making, as well as mutual transfer of cases, so as to establish a collaborative governance mechanism.

In order to better fulfill our responsibilities for ensuring criminal protection of IP rights, we have been working to enhance our capabilities. This includes strengthening our foundational work in law enforcement systems, intelligence and investigative techniques. Therefore, a work system which is well-equipped to address practical matters has taken shape. Since last year, we have been actively promoting the practices of the Fujian Provincial Department of Public Security in setting up doctoral work stations to develop investigative techniques for IP protection. This has been helpful in strengthening professional and scientific research, and fostering specialized talents and top-notch investigation teams in different fields, which will improve our capabilities in overcoming difficulties. Thank you.

Shou Xiaoli:

There are still many questions, but we will take two final questions due to time constraints.

Haibao News:

In recent years, the rapid development of social media and new media has made life more convenient but also accelerated the spread of rumors. These online rumors mislead the public, damage the reputations of individuals and businesses, and disrupt social order. How are public security departments combating this issue? Thank you.

Qi Yanjun:

Mr. Wang will answer this question.

Wang Qiang:

Thank you, I'll take this question. As the journalist suggests, the "attention economy" has significantly increased the scope, speed, frequency and impact of online rumors in recent years, along with their social harm. In response, the MPS has prioritized this issue, directing public security departments nationwide to conduct special operations to combat and rectify online rumors. I'd like to take this opportunity to share our progress in these efforts this year:

First, we have taken strong action against self-media operators who create rumors to attract followers and make illegal profits. So far this year, public security agencies have investigated over 22,000 cases related to online rumors, dealt with over 25,000 individuals involved in spreading rumors, shut down more than 160,000 illegal accounts, and removed over 1.32 million pieces of false information from the internet.

Second, we've focused on uncovering and cracking down on organized online activities. These include "internet water armies" and hordes of fake online accounts companies and celebrities use to inflate their social media followings or criticize rivals. We've also targeted multi-channel networks that manipulate and spread rumors for profit. We have investigated 623 cases and arrested 3,397 individuals involved in such activities.

Third, we have strongly emphasized debunking rumors through public awareness campaigns. We use various methods, including police briefings, press conferences, media reports, publishing typical cases, and hosting publicity events to raise public awareness. So far, we have made over 3,600 typical cases public.

Finally, we've strengthened comprehensive governance measures for website platforms. Using major rumor cases as starting points, we've identified and rectified vulnerabilities on websites and platforms. We've taken action against 1,036 platforms and conducted individual interviews with key platforms for further rectification to enhance governance and regulations. Thank you.

China Central Television (CCTV):

According to the resolution made by the third plenary session of the 20th CPC Central Committee, China will deepen international law enforcement cooperation in the realm of security, so as to protect the lawful rights and interests of Chinese citizens and legal entities overseas. How do public security authorities engage in this cooperation and contribute to global security governance? Thank you.

Qi Yanjun:

Thank you for your question. In recent years, the public security authorities have actively implemented the Global Security Initiative, strengthening cooperation with law enforcement agencies worldwide. We've established cooperation mechanisms with foreign law enforcement bodies and conducted joint operations to combat transnational crime. These efforts protect China's overseas interests and firmly safeguard our national sovereignty, security, and development interests. At the same time, we've also proposed new concepts and approaches for security governance to the international community. We're sharing our achievements and experiences in building the rule of law and advancing the Peaceful China Initiative, while actively participating in global public security governance. I would also like to highlight that from Sept. 8 to 10, the Conference of Global Public Security Cooperation Forum will be held in Lianyungang. The forum has garnered significant global attention, with many high-level participants from numerous countries, demonstrating its wide-reaching influence. Our continuous efforts to strengthen international law enforcement cooperation are evident in initiatives like our collaboration with the Myanmar police to combat telecom fraud in northern Myanmar. Through effective cooperation, Myanmar authorities have transferred 10 major telecom fraud ringleaders, including Bai Suocheng, to China. To date, more than 50,000 suspects involved in telecom fraud in northern Myanmar have been arrested. Additionally, we have launched joint operations to combat crimes in the "Golden Triangle" region, working closely with law enforcement agencies in Laos, Cambodia, Thailand and other countries to crack down on transnational crimes that affect Chinese interests.

Moving forward, public security authorities will focus on these four areas:

First, we will strengthen cooperation. We'll work to establish closer, more practical bilateral law enforcement partnerships with foreign counterparts, signing cooperation agreements, setting up liaison hotlines, and establishing regular meeting mechanisms. These efforts will lay a solid foundation for combating transnational crime and protecting China's legitimate overseas interests. We'll also constructively participate in multilateral law enforcement organizations such as the United Nations, Interpol, the Shanghai Cooperation Organization, and regional law enforcement bodies, contributing China's wisdom and solutions to global public security governance.

Second, we will intensify crackdowns on transnational crimes that are particularly harmful to the public, such as online gambling, telecom fraud, and other severe offenses like kidnapping, murder and gang crimes involving Chinese citizens abroad. We'll strengthen practical cooperation with foreign law enforcement agencies in investigating cases, exchanging evidence, and apprehending and repatriating suspects. By leveraging Interpol's resources, we will maintain a high-pressure stance against all forms of transnational crime affecting Chinese interests.

Third, we will enhance protection. We will coordinate closely with foreign law enforcement agencies to intensify the protection of Chinese institutions, personnel, and interests abroad. In European countries with a high concentration of Chinese tourists, we'll continue to conduct joint patrols with local law enforcement agencies. Additionally, we will collaborate with relevant departments to strengthen security training and risk assessments for Chinese enterprises overseas, improving their risk awareness and response capabilities.

Additionally, we actively participate in U.N. peacekeeping operations. Since the 19th CPC National Congress, the MPS has dispatched peacemaking police officers to seven U.N. mission areas and the U.N. headquarters. Chinese peacekeeping police have faithfully fulfilled their duties, strictly adhering to U.N. regulations and local laws. They've significantly contributed to peace and stability in mission areas, earning widespread praise. Thank you.

Shou Xiaoli:

Thank you, Mr. Qi and other speakers. Thank you to the friends from the media for attending this press conference. Today's conference is now concluded. Goodbye.

Qi Yanjun:

Thanks to the friends from the media for your interest in and support for our work. Thank you.

Translated and edited by Liu Sitong, Wang Wei, Xu Kailin, Li Huiru, Wang Ziteng, Huang Shan, Yang Chuanli, Li Xiao, Zhou Jing, Gong Yingchun, Yuan Fang, Guo Yiming, Ma Yujia, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers: 

Mr. Ni Hong, minister of housing and urban-rural development

Mr. Dong Jianguo, vice minister of housing and urban-rural development

Mr. Qin Haixiang, vice minister of housing and urban-rural development

Chairperson:

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

Date:

Aug. 23, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Ni Hong, minister of housing and urban-rural development, to brief you on relevant developments and to take your questions. Also present today are Mr. Dong Jianguo and Mr. Qin Haixiang, both vice ministers of housing and urban-rural development.

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

Ni Hong:

Ladies and gentlemen, I'm very glad to meet you here and brief you on the high-quality development of housing and urban-rural development, and to answer your questions.

First of all, on behalf of the Ministry of Housing and Urban-Rural Development (MHURD), I would like to extend my heartfelt gratitude for your long-term interest in and support for the housing and urban-rural development.

High-quality development is a primary task in building China into a modern socialist country in all respects and a top priority in the new era. Since the 18th National Congress of the Communist Party of China (CPC), under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the MHURD has thoroughly implemented General Secretary Xi Jinping's important instructions and directives on housing and urban-rural development. We have fully and faithfully applied the new development philosophy on all fronts, taken solid steps, and forged ahead in a pioneering spirit. As a result, new milestones have been achieved in promoting high-quality development of housing and urban-rural development, contributing to the advancement of Chinese modernization.

I would like to highlight three key aspects:

First, in terms of housing and real estate, we have continuously improved real estate policies and refined the housing support system, striving to ensure all people have access to housing. By the end of 2023, the per capita floor space of urban residents exceeded 40 square meters; a total of over 64 million units of various government-subsidized housing and rebuilt housing in run-down urban areas were constructed, providing dwellings for more than 150 million people. All eligible families on subsistence allowances and low-income families struggling with housing have basically had access to housing. 

Second, in terms of urban areas, we have made solid efforts in advancing the urban renewal project, renovated old urban residential compounds and accelerated urban infrastructure construction, striving to promote high-quality urban development. By the end of 2023, the urban built-up area in China reached 64,000 square kilometers, and the proportion of permanent urban residents in the total population stood at 66.16%, meaning that over 930 million people live in urban areas. Urban functions and living environments have continued to improve. A total of over 250,000 old urban residential compounds have been renovated, benefiting over 44 million households and approximately 110 million people. 

Third, in terms of the construction industry, we have deepened reforms, and made the sector more industrialized, digitalized and environmentally friendly, so as to contribute to economic growth and better living standards. In 2023, the total output value of the construction industry reached 31.6 trillion yuan, and its value added reached 8.6 trillion yuan, accounting for 6.8% of the nation's GDP, and providing over 50 million jobs. 

Chinese modernization prioritizes people's livelihoods. A strong focus on people's well-being is the most prominent feature of our work in housing and urban-rural development. Looking ahead, we will thoroughly study and implement the guiding principles of the 20th CPC National Congress as well as the second and third plenary sessions of the 20th CPC Central Committee. Putting people first, we will focus on addressing the prominent problems that restrict the high-quality development of housing and urban-rural development, and take laying a solid foundation and deepening reforms as our main task. We will emphasize improving mechanisms, institutions and rule of law, and work toward providing green, low-carbon, smart and safe housing for the people. We will make coordinated efforts to advance various reforms in the housing and urban-rural sector, and speed up the fostering of a new development model for real estate. We will deeply implement the urban renewal project, and further promote the transformation and upgrading of the construction industry. Additionally, we will systematically develop "good houses, good residential compounds, good communities and good urban areas," build livable, resilient and smart cities, and promote common prosperity of urban and rural areas. Through these practical efforts, we aim to consistently meet people's aspirations for a better life and contribute to further deepening reform comprehensively to advance Chinese modernization. 

Moving forward, we will focus on the following reform initiatives: 

First, we will foster a new development model for the real estate sector, which can be summarized in four aspects. First, in terms of concepts, we should deeply grasp the principle that housing is for living in and not for speculation, and build quality houses that cater to people's new aspirations. Second, in terms of systems, we will rely primarily on the government to meet the essential housing need, while leveraging the market to satisfy the diverse needs for better housing. Third, in terms of institutions, we will reform and improve the institutions for real estate development, transactions and utilization, laying a solid institutional foundation for real estate transformation. Fourth, in terms of resource allocation, we will foster a new mechanism that connects the elements of personnel, housing, land and financing. 

Currently, the real estate market is experiencing significant changes in its supply and demand dynamics and remains in an adjustment period. However, with the implementation of various policies, positive changes have begun to emerge in the market. Considering China's ongoing urbanization process and the public's new expectations for quality housing, the real estate market still holds substantial potential and room for growth. As long as we maintain firm confidence, effectively implement city-specific policies, we can promote stable and healthy real estate market development.

Second, we will establish new urban planning, development and governance mechanisms. We will uphold the principle that cities should be built by and for the people, meeting new demands as urban development transforms to urban renewal. We will further deepen urban planning, development and governance reform and institute sustainable urban renewal models and related policies and regulations. We will insist on an approach that conducts examinations and identifies problems first, then solves them as the priorities of urban renewal. We aim to create welcoming and resilient smart cities, enabling the people to enjoy more convenient, comfortable and fulfilling lives.

Third, we will promote the transformation and upgrading of the construction industry. We will insist on the guidance on standards and technological empowerment, focusing on reforming and improving a package of basic institutions regarding bidding on construction projects, project supervision, construction cost, completion acceptance and more. We will strive to create a modern construction industry system and shape a business environment upholding good faith conduct, legal compliance, and fair competition while pursuing quality. We will promote the high-quality development of the construction sector to provide high-quality construction products for society.

That's all I have to say for now. Next, we are happy to take questions from the media.

Shou Xiaoli:

Thank you, Mr. Ni. Now, the floor is open for questions. Please state the news organization you represent before asking your question. You may now raise your hand to be called upon.

People's Daily:

The central authorities urged swift action to foster a new development model for the real estate sector. Last month, the third plenary session of the 20th CPC Central Committee made clear requirements regarding this. How has this work progressed so far? What are your further considerations? Thank you.

Ni Hong:

Thank you for the questions. After the Political Bureau of the CPC Central Committee proposed fostering a new development model for the real estate sector, people have been paying close attention to this issue. We have been working with relevant departments to explore how to carry out this work. Mr. Dong will answer the questions.

Dong Jianguo:

The question from the People's Daily reporter addresses the acceleration of constructing a new development model for the real estate sector. This is a major deployment put forward by the CPC Central Committee to adapt to the trends of new urbanization and the significant changes in the supply-demand relationship of the real estate market. It's also a fundamental strategy to prevent and defuse risks in real estate and achieve high-quality development in the sector. The current development model of the real estate sector evolved gradually over a long period. Similarly, fostering a new development model will take time and needs to keep exploring new practices. Together with relevant departments, we have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, focusing on the following aspects:

First, we have improved the housing supply system. The key is to increase the construction and supply of government-subsidized housing. The State Council and relevant departments issued policy documents to guide local governments in deciding the construction and purchasing of housing according to demand, increasing the construction and supply of government-subsidized housing to satisfy the basic needs of salaried people for a home to live in.

Second, we have directed local governments to develop and implement both long-term and annual housing plans, creating a framework that aligns population, housing, land, and capital. After the MHURD issued a notice in February, different localities have gradually compiled and published annual housing development plans and started preliminary work and considerations for housing development plans for the 15th Five-Year Plan period.

Third, we have effectively promoted sales of completed housing in an orderly manner. We have guided local governments to select new real estate development projects, reach agreements for completed housing sales at the time of land transfer, and formulate supportive policies in line with local condition. Many localities have rolled out projects of completed housing sales, exploring the reform of commercial housing sales systems.

Fourth, we have implemented a coordinated urban real estate financing system and introduced a "white list" system, providing financial support for qualifying projects across various cities. Thanks to our efforts, the financing of real estate development enterprises is now based more on project-based assessments than corporate credit.

Fifth, we have explored and formulated systems for housing examination, housing pension and housing insurance system to establish long-term mechanisms for whole-life housing safety management. Currently, 22 cities, including Shanghai, are piloting this measure. Personal accounts have been set up through home buyers' payment for housing maintenance fund,. The focus of the pilot projects is for governments to set up public accounts.

Sixth, we built good houses that are eco-friendly, low-carbon, smart and safe. We have done some work in setting standards and examples. Next, we will also make efforts to establish systems and optimize services.

The new development model for the real estate sector is a model that emphasizes high-quality, coordinated and secure development. The third plenary session of the 20th CPC Central Committee identified accelerating the establishment of this new development model as a key measure to further deepen reforms. We will work closely with relevant departments, summarizing recent pilot practices and further strengthening top-design. With a focus on ensuring secure housing for the people, we will accelerate reforms to improve fundamental systems related to commercial housing sales, land management, finance, and fiscal and taxation sector. Through these reforms, we will promote institutional innovation, foster this new development model and drive industrial development. We are committed to implementing this task assigned by the Party Central Committee to promote high-quality development of the real estate sector.

Thank you.

CCTV:

As people's lives become more diverse, their expectations for housing have also increased. The MHURD has repeatedly emphasized that the public should live in better homes. My question is: what considerations and plans do you have for creating good housing in the next phase? Thank you.

Ni Hong:

Thank you for your question. I believe everyone is concerned about good housing. I share this concern personally, as I also want to live in a good home. I would like to address this question from three perspectives.

First, why should we build good housing? Second, what defines good housing? Third, how do we build good housing?

First, why should we build good housing? The CPC's founding mission is to sought happiness for the Chinese people and rejuvenation for the Chinese nation. The simplest and most basic understanding of happiness is living and working in peace and contentment. To achieve this, good housing is essential. Providing good housing for the people is required for fulfilling our Party's mission. Second, our reforms and development efforts ultimately aim to improve people's lives. Housing development in our country has now entered a new phase, shifting from simply providing housing to focusing on the quality of housing. As I mentioned in the opening remarks, the average urban housing area now exceeds 40 square meters per person, and people have new expectations for the functionality and quality of their homes. Therefore, we should apply new-generation information technologies, green low-carbon technologies and innovative construction techniques as well as new products and materials to housing development. We should guide the real estate and construction industries to prioritize quality, new technologies and better services over speed and quantity, enabling a true transformation of these industries. The Party Central Committee has made requirements, and the people have their expectations, so the MHURD must take action.

Second, what defines good housing? This is a matter of personal perspective and varies from person to person. With socioeconomic development, advancements in technology and changes in people's needs, the concept of good housing is continuously evolving. Different eras have different definitions of good housing, and even with various sizes and price ranges, there are diverse interpretations of what makes a good house. Everyone has their own idea of what constitutes a good home. However, I believe there are four key characteristics:

First is being green, which means ensuring that people live in healthy environments. This involves several aspects closely related to living conditions, such as room height, indoor temperature, humidity, air quality and lighting, all of which impact physical and mental health. Therefore, a good home should provide comfort, which requires careful design and construction, including proper sealing of doors and windows and effective soundproofing of walls. Recently, the MHURD sought public input on housing requirements. Soundproofing was ranked first, followed by preventing odors in bathrooms and leaks and cracks. Building a good home means addressing these concerns.

Second is being low-carbon, which means saving money for residents and conserving energy for society. How can we save money? In the construction sector, there are three stages: the production of building materials, the construction process and the full lifecycle utilization process, all of which involve energy and carbon consumption. A good house should be of high quality, perform well and have a long lifespan. Additionally, throughout its lifecycle, it should be more efficient in saving water, electricity, gas and energy, thus reducing costs and expenses for residents while also contributing to the conservation of energy and reduction of carbon for society.

The third feature is smart, bringing greater convenience to residents. With electric vehicles now being highly digitized and serving as mobile terminals, we envision "good houses" as larger non-mobile smart terminals, encompassing numerous application scenarios. For example, smart sensing technologies can monitor and adjust indoor conditions such as temperature, brightness, humidity and air quality based on specific needs. Furthermore, intelligent control allows for hands-free operation of doors, windows, lights, air conditioning and other household appliances through voice commands or sensors. Smart appliances, like smart refrigerators, will in the future notify us of low food supplies, reminding us to purchase essentials like eggs on our way home from work. Such systems can also alert residents about expired food. Therefore, I am confident that there are no limits to what we can accomplish. Consequently, in the construction of "good houses," we have allocated substantial space for technological innovation.

The fourth feature is safety, ensuring residents can live with peace of mind. This encompasses several aspects: structural integrity of buildings, designed to be robust and disaster-resistant; operational safety of utilities and systems, where sensors on water, electricity, gas and heating systems, including elevators, are installed to trigger alerts during faults or emergencies; and personal security of residents, where smart interconnected systems can detect unusual activities, ensuring the elderly and children enjoy enhanced safety while at home.

The concept of the "good house" still needs further innovations and adjustments through practice. As such, we invite all areas of society and friends from the media to make contributions and jointly explore ways to promote the construction of better houses.

Third, how do we build "good houses"? This task represents a systematic project, a novel application scenario and an emerging industry that could potentially establish a new competitive arena. These endeavors are not only crucial for satisfying people's living requirements, but are also instrumental in boosting domestic demand and ensuring economic stability through concentrated efforts in the following five main areas:

First, "good houses" must adhere to exemplary standards. We must refine our standards framework, enhancing criteria across designs, materials, construction and equipment. This includes improving standards for accessibility, senior-friendly features and smart technologies.

Second, "good houses" must be well designed. We will direct designers to carefully craft each structure, ensuring optimal utility and value for every square meter of houses.

Third, "good houses" require top-quality materials. We are committed to promoting the research and application of innovative materials, extensively developing eco-friendly construction materials, and consistently improving the performance of building materials in areas such as thermal insulation, heat shielding, waterproofing and environmental protection.

Fourth, "good houses" need excellent construction practices. We will intensify our application of technology, advocating for modern construction methods such as green and intelligent building techniques, aspiring to construct "good houses" with the precision and quality used in automobile manufacturing.

Fifth, "good houses" must have good services. We will advance residential services, significantly improving property management, and bolstering both online and offline support for services including elder care, child care and domestic help.

Our goal for new constructions is to create "good houses," whereas for existing structures, we plan to transform them into "good houses" through urban renewal initiatives.

After establishing "good houses," our broader vision extends to creating "good neighborhoods, good communities and good urban districts," to ensure that citizens live in greater comfort and peace of mind. Thank you.

The New Times: 

In recent years, urban renewal has gained significant attention across various regions, with many cities trending on social media due to their enhanced aesthetics and post-renewal charm. Could you share some successful experiences in urban renewal? What initiatives are planned next? Thank you.

Ni Hong: 

Urban renewal is an inevitable process in the development of cities. Existing buildings now far exceed new buildings. Therefore, maintaining the functionality and utility of these existing buildings through urban renewal is essential. Moreover, this process requires comprehensive reforms spanning planning, construction and management. Mr. Qin oversees this area, so I would like to invite him to answer this question.

Qin Haixiang: 

Thank you. Urban renewal operations are of great concern to us all. Implementing these actions is crucial for transforming urban development models and achieving high-quality development. This initiative was decisively outlined during the fifth plenary session of the 19th CPC Central Committee. Over recent years, we have consistently applied a two-pronged approach of addressing both issues and objectives: deploying policies, initiating pilot projects, and managing key efforts to solidly advance urban renewal nationwide. These efforts have yielded substantial results.

Allow me to briefly introduce some of the main tasks being undertaken in our urban renewal initiatives:

First, we have made a big push to renovate old urban residential compounds. This is an important part of urban renewal initiatives. In recent years, we have focused on serving the people, delivering convenience and security. We have launched three campaigns to improve residential conditions and living environments, namely, "corridor revolution," "environmental revolution" and "management revolution," which have achieved positive results. Since 2019, China has started the renovation of 258,800 old urban residential compounds, benefiting 44.34 million households and around 110 million residents. During this process, we have upgraded 326,000 kilometers of old pipelines for water, electricity, gas and heating, have installed 125,000 elevators and have added 72,700 community service facilities for elderly and child care. At the same time, we have implemented energy-saving renovations to 423 million square meters of buildings and have added 3.6 million parking spaces, 117,000 electric vehicle charging piles, 755,000 e-bike charging piles as well as over 28 million square meters of cultural, recreational and sports venues. While renovating old residential compounds, we have focused on small-scale projects to enhance people's overall wellbeing. Continuous efforts have been made to boost the construction of parks, green spaces and sports facilities near residential areas, including over 40,000 pocket parks and more than 100,000 kilometers of urban green paths. A total of 11,000 hectares of lawn has opened to the public in 6,100 parks, providing citizens with a greater connection to nature and more opportunities for outdoor activities and sports, making our cities more livable.

Second, we have accelerated the upgrading of urban underground pipelines. These initiatives are crucial for enhancing our cities' resilience and safeguarding people's lives and property. In recent years, we have guided localities to upgrade about 100,000 kilometers of pipelines for gas and water supply as well as sewage. Along with the upgrading, we have implemented urban lifeline safety projects by installing intelligent sensing devices to improve our capabilities for monitoring the safety of urban pipelines and bridges as well as conducting early warnings. These efforts have eliminated many security risks and shifted the infrastructure risk control method from passive response to proactive prevention, making our cities more resilient.

Third, we have been actively promoting the construction of smart cities. This is an essential requirement for modern urban development and governance. In recent years, we have strengthened coordination and increased efforts to build a city information modeling platform and an urban operation management service platform. These efforts have enhanced precise and scientific urban management and have promoted new urban infrastructure construction based on digital, internet-based and smart-tech development, making our cities smarter.

Of course, implementing urban renewal initiatives is a long-term task. For the next step, we will earnestly implement the decisions and requirements from the 20th CPC National Congress and the third plenary session of the 20th CPC Central Committee. Guided by the principle that cities should be built by the people and for the people, we will establish a sustainable urban renewal model and policy regulations to create livable, resilient and smart cities. This is an important reform task outlined at the third plenary session of the 20th CPC Central Committee. Guided by scientific principles, the laws of nature and the reality, we will work to pursue high-quality implementation of urban renewal initiatives. 

Our approach to urban renewal involves three key mechanisms: First, we will create and improve new institutions and mechanisms for urban renewal, which will be demand oriented and project based. Currently we are at a stage of upgrading existing resources, which with diverse participants and demands have brought great changes. We should pursue improved existing resources, a more complete range of functions and higher quality in light of actual demands. Second, we will carry out "physical examinations" for cities before urban renewal actions. We will establish and improve a working mechanism to implement "urban physical examinations" and urban renewal initiatives in a holistic way. Particularly, we should take the problems found through these "examinations" as the focus of urban renewal to solve pressing problems that impact people the most as well as shortcomings and weak links that affect cities' competitiveness, carrying capacity, security and sustainable development. Third, we will establish a policy coordination mechanism. We will improve relevant supporting policies in finance, taxation, land use and other fields, encourage the participation of private capital and create new models for urban renewal investment and financing.

Specifically, we will systematically promote the development of good houses, good residential compounds, good communities and good urban districts. Mr. Ni just made an introduction in this regard. We will focus on the following areas:

First, we will continue efforts to renovate old urban residential compounds and resolve problems such as installing elevators, parking shortages and charging difficulties. This year our plan is to renovate more than 50,000 old residential compounds. Based on this, a number of complete communities will be built as well as old blocks and old factory areas will be restored.

Second, we will constantly upgrade cities' "inner" constructions, mainly focusing on underground pipelines and cables. The third plenary session of the 20th CPC Central Committee made decisions and arrangements for strengthening the building of underground utility tunnels and the upgrading of old pipelines. This year, old pipelines with a total length of over 100,000 km are scheduled to be upgraded.

Third, we will vigorously promote the construction of safety projects regarded as lifeblood within cities. We will use digital measures to advance real-time monitoring on various public facilities including water supply, drainage, gas, heating, bridge and utility tunnels. In doing so, early detection, early warning and early disposal of security hazards will guarantee the safe operation of our cities.

Fourth, we will promote urban waterlogging control and have plans to remove the risk of flooding and waterlogging at more than 1,000 highly vulnerable points in 100 cities this year. We will accelerate the systematic construction of urban drainage and waterlogging prevention, and coordinate urban flood and waterlogging controls. An integrated operation and management mode, covering cities' water systems, drainage networks, and surrounding rivers, lakes, seas and reservoirs, will be set up and improved to make cities more capable for flood prevention and more resilient for safe operation. Thank you.

Jimu News:

At present, China's property market is in the process of adjustment and transformation. Could you brief us on the work that has been carried out and the progress that has been made in ensuring the delivery of housing for commercial housing projects? Thank you.

Dong Jianguo:

Thanks for your question. Ensuring the timely delivery of housing is a significant deployment made by the CPC Central Committee and the State Council. It is not only important work to guarantee people's livelihood and to effectively protect the legitimate rights and interests of property buyers, but also conducive to meeting various expectation, boosting confidence in the real estate market as well as preventing and mitigating relevant risks.

On May 17, the State Council held a teleconference to ensure the delivery of housing projects, and made overall deployments on this regard. The MHURD and relevant departments held a briefing at the SCIO on the afternoon of May 17, introducing and interpreting policies on this issue. After the briefing, a series of policies and measures on stabilizing the property market were released, and we stepped up work to promote the delivery of housing in an orderly manner. As a result of city-specific measures being implemented, the country's real estate market has seen positive changes.

To better ensure the delivery of commercial housing projects, the MHURD and the National Financial Regulatory Administration (NFRA) have carried out a campaign to comprehensively check the commercial housing projects under construction that have been sold but not yet delivered within the country. There are 3.96 million housing units nationwide that were supposed to be delivered in accordance with contracts by the end of this year. In order to accomplish this goal, we have worked energetically on the following aspects.

First, policies have been enforced to create synergy. At the national level, the MHURD and the NFRA have implemented the requirements of the overall plan on effectively ensuring the delivery of housing projects, jointly formulated policy documents and organized training on relevant policies for local governments and relevant departments. We have also specified work arrangements on ensuring the housing delivery and enhanced the effectiveness of the urban real estate financing coordination mechanisms. The Supreme People's Court has clarified supporting judicial measures for these issues, such as prudently taking property preservation measures for the real estate "white list" projects. At the local level, municipal governments were asked to introduce city-level action plans, make detailed arrangements and prepare specific disposal approaches for different projects in line with local conditions. Some provinces have formulated provincial overall plans on ensuring the delivery of housing projects, defining objectives and supporting measures.

Second, urban real estate financing coordination mechanisms have played a vital role. We have established a three-tier coordination mechanism at the national, provincial and municipal levels, and included all the eligible projects into the "white list." Commercial banks have be asked to ensure that those who have fulfilled their duties are not held accountable, and provide financial support for all qualified lenders. At present, more than 5,300 projects on the "white list" and loans valued at roughly 1.4 trillion yuan have been approved by Chinese commercial banks in accordance with approval procedures. These funds are being released in line with the progress of the projects, which strongly support their construction and delivery.

Third, we have followed the principle of "one project, one policy" to deal with projects by type. We have guided local governments to implement a disposal approach that assigns each project a different action plan, a special group, a bank, an auditor and a judge. This approach was first piloted in Zhengzhou, and is scheduled to expand throughout the country. For eligible projects, we include them into the "white list," and provide them with financial support to ensure their construction and timely delivery. For insolvent projects, we accelerate the bankruptcy and reorganization or liquidation of project development enterprises, and give priority to protecting the legitimate rights and interests of home buyers in accordance with the Supreme People's Court's regulations on debt repayment.

Fourth, we have made efforts to ensure the quality and timely delivery of projects. The goal of ensuring the delivery of homes is to hand over houses that meet the delivery conditions to buyers. We have established a national system for ensuring home delivery. Each delivery task shall be completed according to the contract signed with each household registering with an ID number and a contact phone number, ensuring that the objectives are achieved down to each household and each buyer. As soon as a home is delivered, it is recorded and marked as completed. Meanwhile, we guide local authorities to strengthen the supervision of project quality to ensure that delivered projects meet the conditions for moving in and avoid discrepancies between what is promised and what is delivered. In addition, the Ministry of Natural Resources has issued supporting documents to address the issue of certification for home delivery projects, striving to ensure that property ownership certificates for such projects are issued as required.

Ensuring the delivery of homes concerns the vital interests of the public. People paid for their homes and should receive them. Next, the MHURD, together with relevant ministries, will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council. We will always prioritize protecting the legitimate rights and interests of homebuyers, hold local governments, real estate developers and financial institutions accountable, take concrete measures, tackle difficulties and strive to ensure the successful delivery of commercial housing projects. Thank you. 

Cover News:

The urban work is closely related to the interests of the people, and has attracted great attention from all sectors of society. The reform resolution adopted at the third plenary session of the 20th CPC Central Committee proposed requirements for urban planning, construction and governance. What measures will be taken next? Thank you. 

Ni Hong:

Regarding the urban work, I would like to invite Mr. Qin to answer this question.

Qin Haixiang: 

Thank you for your question. Everyone is very concerned about urban construction and development since our cities are important carriers for advancing Chinese modernization. The CPC Central Committee and the State Council attach great importance to the urban work. Since the 18th CPC National Congress, General Secretary Xi Jinping has made a series of important remarks and instructions on urban work, guiding China's urban development to historic achievements. As Mr. Ni mentioned, China's urbanization rate has now reached 66.16%. The construction of urban infrastructure is accelerating, urban functions are continuously improving, and the carrying capacity of cities is steadily increasing. Our living environment has significantly improved, and cities have undergone great changes. People's sense of gain, happiness and security have significantly increased. 

Currently, urban development in China has entered a phase of urban renewal, shifting from large-scale incremental construction in the past to placing equal emphasis on quality improvement and renovation of its existing stock and structural adjustment of its increment. The urban development model has shifted from expanding the scale to improving the quality of cities. People now demand a higher standard of living, which requires us to adapt to the new development needs and further deepen reforms in urban planning, construction and governance. The 20th CPC National Congress has made important plans in these areas, and the third plenary session of the 20th CPC Central Committee has outlined key tasks for further deepening reform. We also feel a great sense of responsibility and will work with relevant parties to ensure effective implementation. 

There are several main considerations going forward.

First, we will thoroughly implement General Secretary Xi Jinping's important principle that "cities are built by the people and are for the people." We will take improving people's well-being as the starting point and goal of deepening reform, promote the implementation of urban renewal actions, solve the urgent and difficult problems facing the people, and continuously improve the quality of cities, making people's lives more convenient, comfortable and pleasant. 

Second, while adapting to the new requirements of high-quality development, we will shift our focus on reform from solving the problem of accessibility to improving quality. In the past, we mainly focused on accelerating construction, pursuing speed and scale. In the current stage of improving quality, we will strive to improve management capabilities and levels while continuing construction, and place greater emphasis on enhancing quality and efficiency. 

Third, we will deepen reforms in urban planning, construction and governance, and build a new mechanism that adapts to high-quality urban development. In terms of planning, we will adapt to practical needs of improving stock quality, optimizing functions and upgrading quality, enhance the urban planning system, and further deepen reform of urban planning and design mechanisms. In terms of construction, we will explore and establish sustainable urban renewal models and policies and regulations, strengthen the construction of underground integrated corridors and the upgrading of old pipelines, deepen actions to enhance urban safety and resilience, and innovate investment and financing mechanisms for urban construction and operation. In terms of governance, we will strengthen systematic thinking, focus on overall planning, improve the coordination mechanism for urban management, accelerate the construction and application of urban operation management service platforms, promote the integration of urban management into grassroots social governance, enhance grassroots service management capabilities, and advance the modernization of the urban governance system and governance capacity. Thank you.

Nanfang Daily, Nanfang Plus:

The Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization, adopted at the third plenary session of the 20th CPC Central Committee, called for an increase in the construction and supply of government-subsidized housing to meet wage earners' essential housing needs. What specific steps will be taken next to ensure the effective implementation of this policy? Thank you.

Ni Hong:

Regarding housing, there are two aspects: one is the guarantee system, and the other is the market mechanism. Both need to be managed and coordinated. Could Mr. Dong elaborate on how to achieve this balance?

Dong Jianguo:

The Nanfang Daily reporter's question addresses a key concern for urban families facing housing difficulties, new urban residents and young people. The Party Central Committee and the State Council place great importance on housing security work. Since the 18th CPC National Congress, we've steadily improved our housing security system and expanded government-subsidized housing construction. Last year, the State Council issued a document on the planning and construction of government-subsidized housing, categorizing it into rental and sale properties and exploring new approaches for the latter.

In accordance with the directives of the Party Central Committee and the State Council, we, together with relevant departments, have strengthened overall planning and guidance. We have instructed local governments to focus on constructing sale-type government-subsidized housing to quickly resolve housing difficulties for wage earners. Simultaneously, we have emphasized supplying rental-type government-subsidized housing, offering diverse solutions such as "a bed, a room, or an apartment" to address the housing needs of new urban residents and young people. In the first seven months of this year, construction began on 2.35 million units of government-subsidized housing and resettlement housing for urban village renovations, with over 440 billion yuan invested.

The third plenary session of the 20th CPC Central Committee called for increased construction and supply of government-subsidized housing. Our ministry will work with relevant departments to guide local governments in implementing and enforcing these directives.

First, we focus on planning. Government-subsidized housing planning is a crucial component of the overall housing development plan. We guide local governments to base their plans on regional economic capabilities, real estate market conditions, and the housing needs of various groups in difficulty. We emphasize "building and purchasing according to demand," tailoring government-subsidized housing plans to local conditions through five-year and annual plans. We prioritize allocating government-subsidized housing in areas with convenient transportation and well-equipped public facilities to promote a balance between work and residence. We also summarize and promote the experiences and practices of relevant cities, maintain and improve the rotation system for eligible residents, conduct regular application acceptance, and accurately assess the specific needs of these residents.

Second, we focus on improving the system. At the national level, we've issued a series of policy documents on planning and constructing government-subsidized housing, forming a relatively complete policy system. We are currently guiding local governments to align with the overarching national strategy and combine it with local realities. We encourage them to adhere to the principle of doing their best while acting within their means and to promptly introduce specific implementation opinions, management measures, and supporting policies. We also guide them to further refine and perfect the specific requirements for eligible recipients, protection methods, protection standards, distribution management, and other aspects to ensure the effective and orderly progress of all work.

Third, we focus on project construction. For projects in this year's plan, we are ensuring the implementation of fiscal, tax, land and financial support policies to expedite commencement and construction, enhance quality and safety supervision, and promptly initiate rental and sale arrangements for swift public occupancy. We will also enhance project planning and reserves, prepare for projects for the upcoming two years, and establish a rolling mechanism for project advancement that includes "implementing, reserving, and planning." Additionally, based on local real estate market conditions, we are actively promoting the acquisition of existing commercial housing stock for government-subsidized housing use, accelerating acquisitions for qualifying projects, and ensuring timely rental and sale arrangements.

Fourth, we focus on the "good house" model. Some may believe that "good houses" only refer to improved housing and commercial properties. This is a misconception. Government-subsidized housing is a heart-winning government project. It should be built as "good housing," which is the government's responsibility and obligation. Currently, various regions have identified a number of demonstration projects for government-subsidized housing, which are being developed to be "green, low-carbon, intelligent, and safe." We are continuously improving the quality of government-subsidized housing and striving to ensure that the public live in a healthy, safe, and convenient environment. Thank you.

China Construction News:

The protection and inheritance of urban and rural histories and cultures are related to urban and rural areas' high-quality development. What progress has been made in this regard? What are the considerations for the next step? Thank you.

Ni Hong:

It is our important responsibility to do a good job in protecting and inheriting historical and cultural heritage. In a city or a village, no matter how tall or new a building is, it will be replaced, but only history cannot be replaced. I will invite Mr. Qin to answer your question in relationship to protection efforts.

Qin Haixiang:

Thank you for your questions. I would also like to take this opportunity to thank all friends from the media for your concern and support when it comes to the protection and inheritance of urban and rural historical and cultural heritage. Cities and villages are important carriers of historical and cultural heritage. It is our important responsibility to protect and pass on precious historical and cultural heritage in urban and rural development. In recent years, we have thoroughly studied and implemented the principles from General Secretary Xi Jinping's series of important instructions on the protection and inheritance of historical and cultural heritage as well as the decisions and plans of the CPC Central Committee and the State Council, and have vigorously promoted the protection and inheritance of urban and rural historical and cultural heritage, achieving remarkable results.

First, a systematic work structure has been established to increase the protection and inheritance of urban and rural historical and cultural heritage. The three-tier management system for protection and inheritance work at the national, provincial, city and county levels has been improved, and the system for local housing and urban-rural development departments to report to Party committees on the protection and inheritance of historical and cultural heritage has been advanced. Various regions have put more emphasis on the historical and cultural protection. Working systems, laws and regulations have been continuously improved, and the holistic and systematic protection and inheritance of historical and cultural heritage has been continuously enhanced.

Second, a multi-tier and multi-element system for carrying forward historical and cultural heritage protection in urban and rural areas has been established. There are now 142 famous historical and cultural cities, 312 towns and 487 villages of historical and cultural value as well as 8,155 traditional Chinese villages. More than 1,200 historical and cultural blocks have been demarcated and 67,200 ancient buildings have been identified. A historical and cultural heritage protection system in urban and rural areas with distinctive features, rich variety and large numbers has taken shape.

Third, a favorable atmosphere has been created for the whole of society to jointly protect and inherit urban and rural historical and cultural heritage. Society as a whole has increasingly deepened its understanding of the important value of urban and rural historical and cultural heritage, and the vision of protecting and inheriting historical and cultural heritage has developed deep roots, becoming a general consensus. In recent years, we have co-produced large-scale documentaries such as "Wenmai Chunqiu" (Historical Cities and Their Cultures), " Wisdom in Traditional Chinese Architecture " and "Remembering Homesickness" with CCTV, which fully demonstrate the charm of China's excellent traditional culture. These documentaries have attracted widespread attention and have gathered a strong force from society as a whole to care about and support the protection and inheritance of historical and cultural heritage.

Fourth, we have created a dynamic atmosphere in which urban and rural history and culture are integrated with modern life. In urban and rural development, we have changed our focus from previous demolition patterns to renovation and maintenance, and have preserved a number of old blocks, alleys and lanes in their original conditions, retaining the original residents and vitality. We have carried out pilot projects for the protection and utilization of historic buildings, and have organized and implemented comprehensive environmental improvement projects for historical and cultural blocks, which not only improves living environments but also protects historical and cultural heritage, making the city more distinctive and attractive.

Protecting and inheriting urban and rural historical and cultural heritage is a long-term undertaking. Next, we will thoroughly study and implement Xi Jinping Thought on Culture, pay more attention to coordinating protection and development, protection and people's livelihood, protection and utilization as well as single and overall protection, thus focusing our work on the following four aspects.

First, we will focus on protection. We will guide local governments to continue to strengthen the identification of resources and include historical and cultural heritage of different types and historical periods with local characteristics into the protection list, ensuring that important historical and cultural heritage of each period is systematically protected.

Second, we will focus on utilization. Utilization is the best protection. We will continue to protect, repair and revitalize historical and cultural blocks as well as historic buildings, encouraging local governments to adopt more micro-renovation methods, just like those meticulous ways used in embroidery, and weaving, to make up for shortcomings in infrastructure and public service facilities, so that historical and cultural districts can be revitalized.

Third, we will intensify oversight. We will take strong steps to investigate and punish actions in breach of laws and regulations that damage historical and cultural heritage in urban and rural development. We will continue to do a good job in special assessments for the protection of historical and cultural cities, criticize places that fail to protect them, urge them to make corrections and rectify existing problems, guide local governments to establish a regular inspection and management system for the protection and inheritance of urban and rural historical and cultural heritage, and promptly discover and prohibit acts that violate laws and regulations.

Fourth, we will focus on fundamental work. We will make every effort to advance the formulation and revision of relevant laws and regulations to protect and inherit historical and cultural heritage in urban and rural areas, will accelerate research and formulation of standards, will drive local governments to carry out local legislation and issue local standards in accordance with actual conditions, and will continue strengthening the training of professional personnel. Simultaneously, we will continue to work on the publicity for protecting and inheriting historical and cultural heritage. We also hope that friends from the media will join us in telling the story of Chinese history and culture to pass on and promote excellent traditional Chinese culture.

Thank you!

Shou Xiaoli:

One last question, please.

Phoenix Satellite Television:

From "small and beautiful" projects including residential buildings, parks and schools to large infrastructure projects such as railways, bridges and airports, the construction capacity of China's construction industry has seen continuous improvements in recent years. While developing rapidly, the construction industry is also faced with the important task of improving quality and effectiveness. What are the considerations for improving and upgrading the construction industry at a faster pace? Thank you.

Ni Hong:

Thanks for your question. I will answer it. The construction industry is an important pillar industry for China's national economy. An industry being considered a pillar industry is dependent on its value added. Among various categories of the national economy, whichever industry accounts for over 5% of the GDP is a pillar industry. Just as I mentioned at the beginning, with a proportion of 7%, and 6.8% last year, the construction industry is an important pillar industry. It is also a traditional industry, closely related to the improvement of people's livelihoods. At the same time, it also plays a fundamental role in supporting the development of other industries. Building factories and facilities all require the development of the construction industry. Since the 18th CPC National Congress, we have thoroughly implemented the new development philosophy and have deepened the reform of the construction industry. We have made great efforts to implement an innovation-driven development strategy, promoting transformation and upgrading of the construction industry through technological innovation, transitioning China from a large country in construction into a strong country in construction, and helping the "Built by China" brand gain more recognition. Here are some representative highlights. 

First, we have developed important equipment for the country. We have developed a batch of world-class equipment with proprietary intellectual property rights including skyscraper building machines, shield tunneling machines and bridge girder erection machines, which are all very popular among many Belt and Road Initiative partner countries. 

Second, we have built iconic buildings. For example, the world's top engineering projects such as the Beijing Daxing International Airport, Hong Kong-Zhuhai-Macao Bridge and Shenzhen-Zhongshan Link have all been completed and put into use. Venues such as the National Speed Skating Oval, dubbed the "Ice Ribbon," and the National Ski Jumping Centre, dubbed the "Snow Ruyi," featuring cutting-edge technologies and Chinese style, have presented the scientific and technological strength of "Built by China" projects to the world.

Third, we have gone global. At present, we have built projects in 190 countries around the world and have received these countries' recognition. It can be said that a number of major projects built by Chinese construction enterprises have become landmark projects in these countries.

The third plenary session of the 20th CPC Central Committee has put forward new requirements that national standards should be elevated to guide the upgrading of traditional industries, and enterprises should also be encouraged to apply digital and new green technologies to transform and upgrade these sectors. This has brought new opportunities for the upgrading and transformation of the construction industry. We will work on the following four aspects.

First, in terms of reform objectives, we will work on establishing a modern system for the construction industry, advance the industrial, digital and green transformation and upgrading of the construction industry, and build high-quality buildings and houses that meet the needs of the times and the people.

Second, in terms of methods and paths, we will leverage science and technology to enhance the quality and performance of the construction industry's development, accelerate the integration of new-generation information technology with the construction industry and vigorously develop new construction methods, such as intelligent construction, green construction, and prefabricated construction. Based on this, we will coordinate all sectors of design, production and construction, drive the coordinated development of the entire upstream and downstream industrial chains, including building materials, construction equipment as well as components and parts, and realize standardized design, industrialized production, prefabricated construction, IT-based management and intelligent maintenance. 

Third, in terms of systems and mechanisms, we will improve the system of construction standards for construction projects and give priority to reforming basic systems related to project supervision, project cost and project completion acceptance. Simultaneously, we will continue to improve the safety supervision system for the construction sector and project quality as well as foster an honest, law-abiding and quality-oriented business environment that upholds fair competition.

Fourth, in terms of personnel training, we will focus on cultivating professional and dedicated personnel. We will launch a training plan for construction talents, and create opportunities and favorable conditions to cultivate leading talents, such as masters of survey and design. At the same time, we will cultivate young talents and enable aspiring young men to show their skills in the high-quality development of the construction industry so that they can stand out. We will call for the pursuit of superior workmanship and cultivate modern construction industry workers. Skill competitions will be organized to select the most skilled workers. We will adopt multiple measures to cultivate national-level craftsmen and skilled artisans. We have confidence in making "Built by China" projects gain the same worldwide reputation as "Made in China" products. Thank you!

Shou Xiaoli:

Thanks to Mr. Ni, all the other speakers and our friends from the media for participating. That's all for today's briefing. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Huang Shan, Liu Sitong, Wang Yanfang, Liu Caiyi, Liao Jiaxin, Zhou Jing, Li Xiao, Li Huiru, Lin Liyao, Liu Jianing, Wang Wei, Yang Chuanli, Yuan Fang, Yan Bin, Xu Kailin, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA)

Mr. Wang Shengbang, director of the Legal and Regulation Department at the NFRA 

Ms. Liao Yuanyuan, director of the Statistics and Risk Surveillance Department at the NFRA 

Mr. Yin Jiang'ao, director of the Property and Casualty Insurance Supervision Department at the NFRA 

Chairperson:

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

Date:

Aug. 21, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA), to brief you on relevant developments and to take your questions. Also present today are Mr. Wang Shengbang, director of the Legal and Regulation Department at the NFRA; Ms. Liao Yuanyuan, director of the Statistics and Risk Surveillance Department at the NFRA; and Mr. Yin Jiang'ao, director of the Property and Casualty Insurance Supervision Department at the NFRA. 

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

Xiao Yuanqi:

Thank you. Good afternoon. I'm very pleased to meet with you again to introduce the progress of the NFRA in promoting high-quality development. On behalf of the NFRA, I would first like to express our gratitude to friends from the media for your strong support, attention and assistance toward the financial work and financial supervision. My colleagues and I are all very willing to answer your questions.

Under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, the NFRA has fully embraced the political and people-oriented nature of financial work. We have promoted high-quality financial development to contribute to the building of a strong nation and the great rejuvenation of the Chinese nation. China has established a multi-tiered, broad and diversified financial institution system. The banking sector now ranks first globally in terms of size of assets, while the insurance market ranks second in the world. Since the beginning of this year, the NFRA has thoroughly implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC), as well as the second and third plenary sessions of the 20th CPC Central Committee, the Central Financial Work Conference, and the Central Economic Work Conference. We have adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, and focused on the major decisions and deployments of the Party Central Committee and the State Council, achieving new results in promoting high-quality development.

We have remained committed to deepening supply-side structural reform in the financial sector, and guiding financial institutions to adopt the right perspectives on performance and development, focus on their core responsibilities, enhance their capabilities, and transition toward more refined internal management, thereby promoting high-quality and sustainable industry development. I would like to share a few key figures with you: Asset growth has remained stable. As of the end of July, the total assets of banking financial institutions reached 423.8 trillion yuan, marking a year-on-year increase of 7%. The insurance industry's total assets stood at 33.9 trillion yuan, up 7.7% from the beginning of the year. Asset quality has remained stable, with the non-performing loan (NPL) ratio continuing to decline steadily. This year, credit risks have been generally under control. By the end of July, the NPL ratio of the banking sector was 1.61%, down 0.08 percentage point from the same period last year. The disposal of non-performing assets has also intensified, with banks disposing of 1.4 trillion yuan of non-performing assets in the first half of this year. Risk buffers have steadily increased. As of the end of July, the loan loss provision coverage ratio of banks was 216.7%, meaning that loan loss provisions were more than double NPLs. Additionally, by the end of the first half of this year, the capital adequacy ratio of banks stood at 15.53%, while the comprehensive and core solvency ratios of insurance companies were 195.5% and 132.4%, respectively, indicating that banks and insurance institutions are well-equipped to withstand risks. Liquidity has been improving steadily. The two main liquidity indicators for banks, the liquidity coverage ratio and the net stable funding ratio, both meet regulatory requirements. Therefore, China's banking industry is currently stable and improving, with controllable risks and key business and regulatory indicators within healthy and reasonable ranges.

Financial institutions have further enhanced their ability to serve the real economy, with a continued increase in financial supply, particularly for major strategies, key areas and weak links, becoming more precise and efficient. The total deposit balances held by all financial institutions has maintained steady growth. By the end of July, the balance of RMB loans reached 251 trillion yuan, an increase of 13.5 trillion yuan compared to the beginning of the year. The balance of bond investments by banking and insurance institutions stood at 103 trillion yuan, up 4.9 trillion yuan compared to the beginning of the year. The insurance fund investment balance stood at 31 trillion yuan, a rise of 7.4% compared with that at the beginning of 2024. These numbers reflect the supply side of financial funds. Moreover, the funding structure has been optimized. We have intensified our support for the advanced manufacturing and sci-tech innovation sectors. By the end of July, loans to the manufacturing sector rose 11.4% year on year, and loans to the high-tech industry increased by 13.9% year on year. In addition, financial services for micro and small enterprises, as well as for agriculture, rural areas and rural residents, have also improved. Inclusive finance lending to micro and small businesses rose 17.1% year on year by the end of July. Support for the health industry and silver economy has been strengthened. By the end of July, loans to the elderly care sector were up 16.1% compared to the beginning of the year. To support the in-depth integration of the digital economy with the real economy, loans to core industries of the digital economy increased 12.4% year on year. The insurance industry played an important role in the rapid recovery of life and work after disasters, providing effective coverage for damage caused by rainstorms, floods and other calamities. In the first seven months, insurance companies paid out a total of 1.39 trillion yuan in claims and benefits, a 30.2% year-on-year increase. By the end of July, the insurance industry provided financing support totaling 28.5 trillion yuan through bonds, stocks, and other means. These are some key figures I'd like to share.

In accordance with the decisions and arrangements made by the CPC Central Committee, we have constantly improved financial regulatory systems and mechanisms. As a result, the building of regulatory systems has accelerated comprehensively, regulatory and law enforcement capabilities have been strengthened, and financial regulation has become more digitalized and smarter.

Currently, the NFRA is earnestly studying the guiding principles of the third plenary session of the 20th CPC Central Committee. We follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, acquiring a deep understanding of the decisive significance of establishing Comrade Xi Jinping's core position on the Party 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 will continue to uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership. We will further align our thinking and actions with the guiding principles of the third plenary session of the 20th CPC Central Committee, ensuring that the principles, policies, decisions and arrangements related to financial work made by the Party Central Committee are thoroughly implemented. We will focus on further deepening reform comprehensively with a view to advancing Chinese modernization. We will celebrate the 75th anniversary of the founding of the People's Republic of China with our remarkable contributions.

That's all for my introduction. We would like to answer your questions now. Thank you.

Xing Huina:

Thank you. The floor is now open for questions. Before asking your question, please identify the media outlet you represent.

CCTV:

In May this year, the NFRA issued guidance on developing technology finance, green finance, inclusive finance, pension finance and digital finance in the banking and insurance sectors. Several months have passed. Can you introduce the work you have carried out and the achievements you have obtained? What measures will you take in the next step? Thank you.

Xiao Yuanqi:

These questions are of great concern to us. As you mentioned, the NFRA issued this guidance in May, and we appreciate your attention to it.

Developing technology finance, green finance, inclusive finance, pension finance and digital finance is a major task assigned to us by General Secretary Xi Jinping at the Central Financial Work Conference.

In terms of technology finance, we mainly focus on targeting the global frontiers of science and technology, the development of the economy, the major needs of the country, and the health and safety of our people. We have accelerated developing a financial system for scientific and technological innovation, concentrating on key links and vital areas. We've provided technology companies with financing services and insurance guarantees better adapting to their businesses and development phases. Meanwhile, we have advanced a virtuous circle of technology, industry, and finance. By the end of June 2024, the balance of loans to high-tech companies nationwide reached 15.3 trillion yuan, with credit loans and medium- to long-term loans each accounting for more than 40%. The loan balance grew 19.5% year on year. Since tech companies often can't provide sufficient collateral, we encourage banking institutions to offer credit loans. Moreover, as it takes time for scientific and technological innovations to become profitable products, we also encourage banks to provide more medium- and long-term loans to sci-tech businesses and industries. This approach ensures loan funds are more compatible with the development cycle of sci-tech firms and industries.

In the area of green finance, the NFRA has introduced guidance on promoting the high-quality development of green insurance and continued improving its work on green finance standards and evaluation. By the end of June, the green credit balance of 21 major banks was 31 trillion yuan, a year-on-year increase of 25.9%. Green insurance claim payments in the first half of this year reached 85 billion yuan.

Regarding inclusive finance, we have issued a notice on inclusive credit work in 2024 and guidance on promoting the high-quality development of inclusive insurance. These two documents have played an important role in advancing inclusive finance in the banking and insurance sectors. Meanwhile, we have further improved the inclusive credit system. By the end of June, the balance of inclusive loans to micro and small enterprises stood at 32 trillion yuan, registering a year-on-year growth rate of 17%.

For pension finance, the NFRA has cooperated with relevant departments to jointly promote private pension schemes. More than 60 million accounts have been set up, and over 500 products have been developed, covering savings deposits, wealth management and commercial pension schemes. We have vigorously advanced commercial pension schemes, accumulating a pension scale worth more than 6 trillion yuan and covering nearly 100 million people. We've also developed financial products for old-age care such as savings accounts, wealth management products and private pension schemes. Previously introduced as pilot projects in some cities and financial institutions, these products are now promoted nationwide.

For digital finance, the NFRA has issued guiding opinions on the digital transformation of the banking and insurance sectors. This aims to accelerate the development of digital financial products and services, as well as strengthen data capability and infrastructure construction.

These major works are what have been carried out recently. Looking forward, in terms of technology finance, the priority is to supervise and urge financial institutions to earnestly implement the full lifecycle financial service requirements for technology-based enterprises, and to guide and nurture more long-term and patient capital to invest in projects at the early stages, in small enterprises, over long time horizons, and in advanced core technologies. In terms of green finance, we need to further improve the relevant statistical systems while enriching the supply of green financial products, particularly enhancing the precision and effectiveness of green financial services. In terms of inclusive finance, our main focus is to further implement and refine the two aforementioned notices, as well as the Implementation Opinions of the State Council on Promoting the High-Quality Development of Inclusive Finance, to achieve effects. In terms of pension finance, we must steadily promote the development of commercial pension finance while requiring insurance institutions to design pension insurance products that are simpler, more convenient and more stable, in order to cater to the characteristics and needs of pension insurance. In terms of digital finance, we must further strengthen top-level design and overall planning, promote innovative applications of digital technologies in the financial sector, increase digital empowerment and enhance the management level of financial institutions. Thank you.

People's Daily:

In recent years, extreme weather and natural disasters have occurred frequently. Could you elaborate on the positive role that the insurance industry has played in responding to disasters and accidents? How can we further leverage functions of the insurance industry to assist in disaster prevention, mitigation, relief, and post-disaster recovery and reconstruction ? Thank you.

Xiao Yuanqi:

I'd like to invite Mr. Yin Jiang'ao to answer these questions. He often arrives at the frontlines of disasters promptly to expedite insurance services alongside insurance and financial institutions. Please welcome Mr. Yin Jiang'ao.

Yin Jiang'ao:

Thank you for your interest in this issue. In recent years, the frequent occurrence of natural disasters has caused significant losses to the people. For example, in the first half of this year, direct economic losses caused by natural disasters in China amounted to approximately 93.2 billion yuan, significantly higher than the 38.2 billion yuan recorded during the same period last year. The NFRA has earnestly implemented the important directives made by General Secretary Xi Jinping, as well as the decisions and deployments of the CPC Central Committee and the State Council, to promote the role of the insurance industry as an economic buffer and social cornerstone. We have actively responded to disasters and accidents as well as have serviced protection for people's livelihood specifically in the following aspects:

We have strengthened industry coordination and deployment. Facing disasters and accidents, under the unified deployment of relevant local party committees, governments and departments, we have prompted the banking and insurance industry, as well as financial regulatory bureaus in affected regions, to promptly activate emergency response plans, establish green channels, improve service standards and play an active role in disaster prevention, mitigation and relief.

We have guided the industry to provide effective claims services. As Mr. Xiao Yuanqi mentioned earlier, in the first seven months of this year, our insurance industry's claims payments totaled approximately 1.39 trillion yuan, representing a year-on-year growth rate of 30.2%, which is significantly higher than the 5.2% growth rate of premium income during the same period, indicating a rapid growth in claims payments. In response to disasters, we have encouraged the industry to introduce policies such as "three exemptions and four expediting measures" for auto insurance claims and "four expediting measures and two exemptions" for farmhouse insurance claims, ensuring timely and comprehensive compensation. As of now, approximately 2.8 billion yuan in insurance claims have been paid out in southern regions severely affected by disasters, such as Hunan, Jiangxi and Guangdong provinces. Insurance institutions have deployed approximately 87,000 personnel and dispatched nearly 58,000 survey and rescue vehicles, effectively help bring production and life back to normal in affected regions.

We have promoted industry collaboration in disaster prevention and loss mitigation. We have guided the insurance industry to play a risk reduction role in pre-disaster warning, in-disaster management and post-disaster rescue. For example, the insurance industry, in conjunction with relevant departments, recently conducted risk assessments for 143,000 enterprises, identifying approximately 540,000 risks and potential dangers. By facilitating rectification measures, we have achieved disaster prevention and loss mitigation.

In summary, the role of our country's insurance industry in responding to disasters and accidents is increasingly prominent. However, compared to the global average, there is still much to be improved. For example, in the first half of this year, global economic losses from natural disasters totaled approximately $120 billion, of which insurance payments accounted for roughly $60 billion, or about 50%. In contrast, insurance payments in China accounted for approximately 10% of disaster-related economic losses, indicating substantial room for growth.

Looking forward, we will follow the guiding principles of the third plenary session of the 20th Central Committee of the CPC and the Central Financial Work Conference to better leverage the functions of the insurance industry. In terms of institutional improvements, we will establish evaluation systems for insurance protection capabilities and refine mechanisms for graded responses to disasters and accidents. For pilot programs, based on the expansion of residential catastrophe insurance coverage's scope earlier this year, we will summarize the practices in Hebei, Hubei, Beijing's Mentougou district and other regions, and promote pilot programs across the country. In deepening reforms, we will expand the supply of agricultural insurance and improve co-insurance mechanisms to enhance risk prevention for major projects. In strengthening supervision, we will optimize standards for underwriting and claim settlements, enhance the quality and efficiency of insurance services and safeguard the legitimate rights and interests of consumers.

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

Market News International: 

In recent years, the net profit growth of Chinese commercial banks has continued to slow down, with private banks experiencing negative growth. What are the main reasons for this and how do you anticipate the future trend of bank's net interest margin? Thank you.

Liao Yuanyuan:

Thank you for the questions from this international media friend. In recent years, the growth rate for net profits of China's commercial banks has continued to slow down, mainly due to the continuous decline in lending rates and the narrowing of net interest margins. From January to July of this year, the average interest rate of newly issued corporate loans by banks fell by 39 basis points compared with the same period last year, and by more than 100 basis points from the previous high point in 2021. In the first half of this year, the net interest margin of commercial banks was 1.54%, a year-on-year decrease of 19 basis points and a decrease of more than 50 basis points from the previous high point. The narrowing of the net interest margin has led to a significant slowdown in the growth rate of banks' net interest income. Since the net interest income of China's commercial banks accounts for about 80% of their operating income, and the commercial banks in our country mainly engage in deposit and loan business, the slowdown in the growth rate of net interest income has a very significant impact on profits. Another factor affecting net profits is that commercial banks have continuously reduced service fees in recent years, with fee and commission incomes declining year on year for five consecutive years.

We all know that maintaining a reasonable profit level is crucial for banks to timely replenish capital, maintain stable operations and enhance their ability to serve the real economy. Faced with pressures from slowing profit growth, in recent years, commercial banks have tapped into internal potential to lower costs and improve efficiency through various measures. Currently, the profitability of Chinese commercial banks remains within a reasonable range. In the first half of this year, the net profit of commercial banks increased by 0.4% year on year, still achieving positive net profit growth. During the same period, the return on assets and return on capital of banks remained basically stable. Moving forward, the NFRA will guide banking institutions to continue strengthening refined management, optimizing the asset-liability structure, cultivating new profit growth points, and continuously improving profitability.

As you just mentioned, the net profit growth rate of private banks has turned negative. We have also noticed this. In the first half of this year, private banks overall remained profitable, but the net profits of several private banks declined year on year. This was primarily because these banks significantly increased their provision allocations compared to the same period last year, which directly impacted their current profits, leading to a temporary decline in net profits for private banks. Thank you.

Haibao News:

How can the five major regulatory requirements be specifically implemented to enhance the full-process and full-chain monitoring and early warning systems for financial institutions and activities? Thank you.

Xiao Yuanqi:

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

Wang Shengbang:

Thank you for your interest. Our primary responsibility at the NFRA is regulation. In line with the "five major regulatory requirements" clearly outlined at the Central Financial Work Conference, we are diligently implementing these requirements, emphasizing a strong and strict regulatory approach. We are leveraging the advantages of our four-tier vertical management system — headquarters, provincial offices, branch offices and sub-branch offices — working together at all levels to continuously strengthen financial risk monitoring and early warning, and enhance risk prevention capabilities. I would like to share several key aspects of our work.

First, we have emphasized the principle of "comprehensive coverage" to achieve full coverage in financial regulation. The Central Financial Work Conference proposed that financial regulatory activities must cover all areas. In accordance with the requirements of the CPC Central Committee and the State Council, financial regulation must cover not only legal but also illegal activities, and manage risks across the entire industry. We adhere to the principles of financial licensing and licensed operations, ensuring that we address both "violations in licensed operations" and "unlicensed activities." The NFRA has utilized new technologies and methods to strengthen information connectivity and improve the monitoring and early warning platform for illegal financial activities. This has improved our ability to identify illegal financial activities and entities, enabling dynamic monitoring, timely warnings, proactive intervention and early resolution.

Second, we have adhered to a risk-based approach and strengthened the prudential regulatory framework for financial institutions. Our regulation is grounded in a risk-based prudential framework, further clarifying the boundaries for the sound operations of financial institutions and guiding them toward prudent management. As you may know, last year the NFRA issued new versions of the "Commercial Bank Capital Management Measures" and the "Measures for the Risk Classification of Financial Assets of Commercial Banks." These two measures form the foundational framework for our prudential regulation. Their implementation will play a crucial role in enhancing the risk management capabilities of commercial banks, further guiding them toward prudent and regulated operations, and strengthening the banking sector's ability to withstand risks. You may have also noticed that two weeks ago, the NFRA officially released a draft of "Measures for the Risk Classification of Insurance Assets" on its website for public comment. This draft emphasizes the importance of identifying the underlying assets of insurance investments based on the principle of transparency and classifying them according to their actual risk, thereby systematically improving the risk management capabilities of insurance companies. Recently, we have also continued to revise the management measures for fixed asset loans, working capital loans and personal loans — part of what was previously known collectively as the "three measures and one guideline" — to further standardize the credit-granting processes of commercial banks and improve their efficiency in serving the real economy.

Third, we have implemented the "four early" requirements to enhance the forward-looking nature of risk warnings. The NFRA has done a lot of work to further improve the risk rating system for financial institutions. We have introduced regulatory rating measures for insurance companies, trust companies and corporate financial companies, which play a foundational role in risk regulation. We have also further developed the risk monitoring and early warning system, enriched the risk monitoring and early warning indicators, and established a regulatory big data platform. By using intelligent analysis tools, we have enhanced our ability to probe and identify risks, increasing the forward-looking nature of risk recognition and improving the precision of regulation. We are also drafting work procedures for early intervention in financial institutions to establish a system with strict constraints for early intervention. The aim is to achieve early identification, early warning, early exposure and early resolution of financial risks.

Fourth, we have increased regulatory intensity and improved regulatory effectiveness. We are implementing stringent regulatory requirements, enhancing oversight by the NFRA, and ensuring coordination among administrative licensing, off-site monitoring, on-site inspections, regulatory enforcement measures and administrative penalties. We are addressing market anomalies and focusing on "key issues" affecting financial stability, such as credit, investment and bills; "key individuals" who pose financial risks, including senior executives and shareholders; and "key behaviors" that disrupt market order, such as related-party transactions and circular capital injection. We are strengthening supervision and imposing strict penalties for illegal and irregular activities. Last Friday, you may have noticed that the NFRA published a draft of the "Regulations on Compliance Management of Financial Institutions" on its official website for public comment. This draft aims to comprehensively enhance compliance management requirements for financial institutions, clarify compliance management responsibilities, and foster a compliance culture that permeates all levels of financial institutions. Over time, compliance will become an intrinsic part of financial institutions, solidifying the micro-foundation of our financial stability. Thank you. 

Bloomberg:

Risk prevention and stringent regulation are important tasks for the NFRA in promoting the high-quality development of the financial industry. What progress has been made in the reform and risk mitigation efforts for small and medium-sized financial institutions? Will the consolidation of regional banks be accelerated in the future? Thank you.

Xiao Yuanqi:

This issue is very important, and many people are concerned about it. I will answer your question. Small and medium-sized banks and insurance institutions are a crucial part of China's financial system. As of the end of June, there were 3,830 small and medium-sized banks nationwide — including city commercial banks, rural commercial banks, rural credit cooperatives and village banks — with aggregate assets reaching 115 trillion yuan, accounting for 28% of the total of the banking industry. Their loan balance is 62 trillion yuan, with nearly 80% directed toward small and micro enterprises and the sectors of agriculture, rural areas and rural people. There are 163 small and medium-sized insurance companies, with aggregate assets of 9.7 trillion yuan, accounting for 30% of the total of the insurance industry. Overall, small and medium-sized financial institutions are operating steadily nationwide, and both their operating and regulatory indicators remain within healthy and reasonable ranges. For example, small and medium-sized banks have a capital adequacy ratio of 13% and a provision coverage ratio of 155%. The solvency of insurance companies, whether in terms of comprehensive solvency or core solvency, remains above regulatory thresholds. This is the basic situation.

Regarding the reform and risk mitigation you mentioned, and whether the consolidation of regional banks will be accelerated, our overall considerations and strong regulatory approach for the reform of small and medium-sized financial institutions include the following aspects:

In terms of reform, we adhere to the principle of seeking practical and steady progress, avoiding a one-size-fits-all approach. China is very large, and small and medium-sized financial institutions are distributed across various regions, from large cities to medium and small cities, counties, towns and villages. Each institution serves a different area, and each has its own unique circumstances. Therefore, we maintain the principle of adopting tailored policies for each province, each bank and each company.

In terms of regulation, our first priority is to strengthen corporate governance. We must reinforce the Party's leadership and convert the institutional advantages of Party leadership into governance effectiveness for these institutions. It is essential to establish and improve systems and procedures for major decision-making to ensure standardized operations. Additionally, we must enhance information disclosure and leverage market discipline and external supervision. This is the first point: strengthening corporate governance. The second point is enhancing the supervision of conduct, focusing on the behavior of major shareholders and strictly preventing large shareholders from manipulating or overriding small and medium-sized financial institutions. Regardless of whether they are large or small shareholders, we support financial institutions in making decisions according to corporate governance procedures and policies. The stable operation of small and medium-sized financial institutions is the most responsible approach toward shareholders, as it ensures that the value of shareholders and stakeholders is realized. We must also strengthen supervision of the behavior of directors, senior management and key personnel, primarily to ensure they diligently perform their duties, to assess their competence and to evaluate their performance outcomes. The third point is that small and medium-sized financial institutions should accurately identify their market positioning. The general principle is to pursue differentiated and specialized development. Differentiation is about avoiding complete homogeneity, while specialization refers to leveraging strengths to form core competitiveness. The fourth point is focusing on core responsibilities and businesses without blindly pursuing size and scale. Small and medium-sized financial institutions should pursue progress while ensuring stability, and avoiding overextending their capabilities and resources by chasing overly rapid growth, excessive scale or overly complex businesses. They should prioritize serving small and micro enterprises, supporting agriculture, rural areas and rural people, advancing rural revitalization, and serving communities and local areas. These are their strengths. By fully leveraging these advantages, small and medium-sized financial institutions have very broad prospects.

Of course, we also need to optimize the regional financial layout. This primarily involves optimizing the financial layout based on factors such as the scale of regional economic development, the total amount of finance, development trends and changes in financial demand. Regarding your question about whether the financial institutions in these regions will accelerate restructuring and layout, the optimization of regional financial layout is an ongoing process, and there is no issue of speed. The main consideration is to optimize the layout based on the total size of the local economy and finance, development trends and financial demand. The fundamental goal is to ensure that financial supply and services can meet the multi-level and diverse financial needs of market entities and financial consumers. Thank you.

Yicai:

The resolution of the third plenary session of the 20th Central Committee of the CPC stated that the mechanisms for protecting financial consumers and cracking down on illegal financial activities should be improved. We all know that protecting the legitimate rights and interests of financial consumers not only concerns the immediate interests of consumers but also plays a crucial role in preventing and defusing financial risks, as well as maintaining financial security and stability. Could you please elaborate on what efforts you plan to make in this area moving forward? Thank you.

Xiao Yuanqi:

This is an important question. Today, we are joined by the director general of the Legal and Regulation Department, so I would like to invite him to answer this question.

Wang Shengbang:

Thank you for your question. As we all know, the banking and insurance industry, or the financial industry, is highly relevant to the public. On both sides of a bank's balance sheet, the liabilities side represents people's deposits and a significant portion of the assets side is also closely related to the public, such as housing mortgage loans. Therefore, the operations of the banking and insurance industry are closely connected to the vital interests of our people. Protecting the legitimate rights and interests of financial consumers and safeguarding people's wealth is an inherent duty of our financial regulation, and can be said to be both the starting point and the goal. Only by effectively protecting the legitimate rights and interests of financial consumers, can we strengthen the public's confidence in the financial system and maintain financial stability. I fully agree with the reporter's view just now. Protecting the legitimate rights and interests of financial consumers is a concrete action showcasing the political- and people-centered nature of financial work. According to the Plan on Deepening Reform of Party and State Institutions, the NFRA is responsible for the overall coordination of consumer protection in the financial sector. Since last year, the NFRA has focused on improving new mechanisms for financial consumer protection and building a new framework for financial consumer protection. We have made some progress and conducted some explorations in several areas of the work.

First, we have established a financial consumer protection system with clearly defined responsibilities. In June this year, the NFRA, in collaboration with the People's Bank of China and the China Securities Regulatory Commission, established a coordination mechanism to enhance information sharing and cooperation on financial consumer protection. At the same time, the NFRA has strengthened its cooperation with courts, procuratorates, public security departments, internet regulators, and market regulators to jointly address cross-industry and cross-sector financial consumer protection issues, such as false advertising and misleading promotions. Additionally, the administration's branch offices at four administrative levels have established local financial consumer protection coordination mechanisms.

Second, we are strengthening whole-process protection for financial consumers. Prior to transactions, we require financial institutions to assess both the risks of financial products and the risk tolerance of consumers and investors. Institutions must adhere to the "triple appropriateness" principle: appropriate target customers, products and sales channels. This ensures that suitable products are offered through proper methods to qualified investors, preventing mismatches. We also aim to enhance consumer education to increase risk awareness. Post-transaction, we enhance protection through regulatory reporting and evaluation mechanisms to ensure compliance. To address the high volume of consumer-financial institution disputes, we need to explore establishing diverse financial dispute resolution mechanisms. We aim to implement the grassroots social governance practices of the new era, enhance the efficiency of dispute resolution, and better safeguard consumers' legal rights.

Third, we aim to enhance the responsiveness of financial consumer protection. We focus on key issues that affect people's daily lives, such as addressing forgotten insurance policies and notifying people about dormant bank accounts. Some individuals have forgotten about insurance policies purchased years ago, while numerous bank accounts lie dormant, unknown to their holders. Therefore, we are working to clean up these forgotten policies and remind people about dormant accounts, ensuring that our efforts genuinely benefit the public and reflect the warmth of financial regulation.

Fourth, we are creating a well-regulated and trustworthy financial consumer environment. We are advancing the development of an integrity system within the financial sector, establishing mechanisms to restrict dishonest entities, and increasing penalties for serious violations. We are also enhancing coordinated governance mechanisms in the financial consumer sector to combat illegal activities and regulate marketing practices. These efforts aim to strengthen consumer protection measures, laying a solid foundation for the sustained, healthy development of the financial industry. Thank you.

CNBC:

How do you view the impact of market interest rate fluctuations on the insurance industry? Thank you.

Yin Jiang'ao:

Thank you for your question. Interest rate management is crucial for insurance companies, especially life insurance companies, as it directly affects the industry's stability and high-quality development. Currently, China's insurance industry is undergoing a period of transformation and upgrading, which inevitably brings difficulties and challenges. The NFRA places great emphasis on the high-quality development of the insurance industry by following a coordinated approach and addressing both symptoms and root causes. We have taken multiple measures to push forward the insurance industry, especially the life insurance industry, to strengthen its management of profit sources and improve the quality of liabilities. To enhance interest rate margin management, we're guiding the industry to lower assumed life insurance product pricing rates at a proper time and establish a dynamic adjustment mechanism linking these rates to market interest rates. We're expediting the transfer of asset-side yields to liability fund cost rates, improving asset-liability matching. This reinforces how investment returns constrain settlement rates and dividend levels, ensuring realistic and reasonable customer benefits. Additionally, we are urging insurance companies to adjust product structures, optimize the illustration of policy interest rates, and reasonably guide market expectations.

In terms of cost and expense management, we have deepened the alignment of reported expenses with actual practices. This approach enhances life insurance products' precision and scientific management across various channels, improving operational efficiency. Additionally, we have guided the China Association of Actuaries in compiling the fourth set of experience mortality tables for the life insurance industry, providing a solid foundation for accurate and scientific pricing by insurance companies.

Looking ahead, we will continue to drive the insurance industry to transform its development approach, deepen supply-side reforms, and enhance efficiency while reducing costs, thereby promoting high-quality development in the sector. At the same time, we will follow development principles, strengthen the linkage between assets and liabilities, solidify the foundation for growth, and foster a favorable environment. This approach will ensure effective public insurance coverage while enhancing service quality and efficiency for the real economy, ultimately improving social welfare. Thank you.

The Paper:

Could you discuss the progress and achievements of the real estate financing coordination mechanism since its inception? What areas of concern remain? Thank you.

Xiao Yuanqi:

I'll defer to Ms. Liao, who has been directly involved in this work, to address these questions.

Liao Yuanyuan:

Thank you. In January of this year, the Ministry of Housing and Urban-Rural Development and the NFRA jointly issued guidelines for local governments to establish urban real estate financing coordination mechanisms. To ensure the effective implementation of the mechanisms, our two ministries set up a national task force in April to jointly concentrate on the work, while also guiding local governments to establish their own task forces to carry out related work. In June, with the approval of the State Council, the NFRA and the Ministry of Housing and Urban-Rural Development jointly issued a notice introducing several optimization measures to improve the efficiency and quality of the whitelist project recommendations. These measures are intended to further leverage the role of the urban financing coordination mechanism, address legitimate financing needs for real estate projects, and support timely and good-quality housing delivery.

The urban coordination mechanism requires cities to take primary responsibility and centers on specific projects. Through collective efforts, the mechanism has effectively supported the financing of real estate projects, achieving phased results. Currently, commercial banks have approved 5,392 projects on the "whitelist," with approved financing totaling nearly 1.4 trillion yuan. The mechanism has ensured timely funding for whitelisted projects that meet the criteria, playing a positive role in facilitating project completion and delivery, safeguarding the legitimate rights and interests of homebuyers, and stabilizing the real estate market.

Currently, to ensure the timely delivery of housing projects, urban coordination mechanisms are comprehensively gathering information on ongoing real estate projects within their jurisdictions that are under construction and have been sold, but not yet been delivered. For projects that need financing support through the whitelist, but have not yet met the criteria, the urban coordination mechanisms are urging banks to provide targeted advice and recommendations, and real estate enterprises to take timely measures to rectify problematic projects. Meanwhile, local governments are urged to strengthen coordination to ensure that projects meeting the whitelist criteria are promptly included in the program.

Since the beginning of this year, the NFRA has continuously guided financial institutions to provide real estate financing services through multiple channels. By fully utilizing various policy measures, including the urban coordination mechanism, banking institutions' financing of the real estate sector has maintained a steady and increasing trend. At present, the balance of real estate development loans has increased by over 400 billion yuan since the beginning of the year, commercial property loans have seen a 19% year-on-year increase, and merger and acquisition loan balances have increased by 21% year on year. From January to July, commercial banks issued a total of 3.1 trillion yuan in new personal housing loans, effectively supporting the rigid and improving housing demands of residents.

Next, the NFRA will resolutely implement the decisions and arrangements of the Party Central Committee and the State Council regarding real estate work, continue to promote the fulfillment of responsibilities among local governments, real estate enterprises and financial institutions in collaboration with relevant departments, and better leverage the role of the urban coordination mechanism. It will guide financial institutions to continuously improve real estate financial services, supporting the stable and healthy development of the real estate market. Thank you.

China Banking and Insurance News: 

My question is about agricultural insurance. What measures has the NFRA taken in recent years to promote agricultural insurance, serve agricultural production and standardize the development of agricultural insurance? What policy initiatives will be introduced going forward to promote the high-quality development of agricultural insurance? And, in response to current meteorological changes, what innovations will be developed in agricultural insurance products? Thank you.

Yin Jiangao:

Thank you for your question. Agricultural insurance is a crucial means to safeguard agricultural production. In recent years, the NFRA has been focusing on promoting the transformation and upgrading of agricultural insurance, enhancing its protection and service capabilities, and has achieved positive progress. In the first half of this year, agricultural insurance payouts amounted to 47.5 billion yuan, an increase of 5.1% year on year, benefiting 16.26 million rural households. Here are some key points:

We have focused on "expanding coverage, increasing varieties and raising standards" to broaden the scope of agricultural insurance and enhance its protection levels. This year, we have extended comprehensive cost insurance and planting income insurance for the three main grains — corn, wheat and rice — to all regions across the country. According to estimates, this has added approximately 400 billion yuan in insurance coverage for agricultural production nationwide. At the same time, we have added local specialty agricultural insurance products, such as comprehensive cost insurance and planting income insurance for sugar cane in Guangxi Zhuang Autonomous Region. Given the significant differences in agricultural production across the country, there is still considerable room for exploration in local specialty agricultural insurance.

We have promoted the standardization of agricultural insurance business and strengthened the protection of farmers' interests. We have introduced the Agricultural Insurance Underwriting and Claims Management Measures and the Agricultural Insurance Actuarial Regulations. We have also released the industry benchmark pure risk loss rate table for the cost insurance of the three main grains at the prefecture-level, primarily to support differentiated pricing in various regions. Additionally, we have arranged special annual inspections of agricultural insurance, strictly investigating and dealing with illegal and non-compliant activities, to promote business standardization.

We have strengthened the standardization of agricultural insurance, promoting the improvement of management and operational levels. We have organized the industry to compile service specifications for underwriting and claims in planting insurance, livestock insurance and forest insurance, and guided the industry to develop the Agricultural Insurance Product Development Guide, releasing model clauses for insurance of the three main grains, among others. Overall, we have achieved positive progress.

To promote the construction of an agricultural powerhouse, agricultural insurance must play a more pivotal role. For example, last year, China's added value of agriculture was approximately 9 trillion yuan, ranking first globally. During the same period, the amount of protection provided by agricultural insurance in China was around 5 trillion yuan, suggesting ample room for growth. Next, we will deepen the reform of agricultural insurance, broaden its service areas, and serve the high-quality development of agriculture. We will build a multi-level agricultural insurance product system, extending from protecting replacement costs to protecting economic value, and enhance the level of agricultural insurance protection. We will also promote the introduction of pure risk loss rates for major insurance types, industry model clauses for comprehensive cost insurance and planting income insurance, and precise policy documents for underwriting and claims, to promote the standardized operation of agricultural insurance.

In terms of climate change, we will also guide insurance enterprises to respond proactively and gradually launch innovative pilot projects such as weather-based index insurance and regional yield insurance. We will promote the gradual transformation of agricultural insurance from cost protection to income protection. We will also expand from covering only the production stage to covering the entire industrial chain. This will gradually form a comprehensive insurance protection system for agricultural development. Thank you.

Xing Huina:

One last question, please.

Science and Technology Daily:

In recent years, China has continued to strengthen financial support for scientific and technological innovation. What work has been carried out by the NFRA concerning the reform of technology finance? What aspects will be focused on in the next steps? Thank you. 

Wang Shengbang:

Thank you, media friends, for your keen interest in scientific and technological innovation. As you all know, China's economy is transitioning from a stage of high-speed development to one of high-quality development. Implementing an innovation-driven development strategy is a crucial focus. Within this overall strategy, sci-tech companies, particularly small- and medium-sized enterprises, play a vital role. Our primary tasks, both now and in the near future, are to further enhance innovation of technology finance, improve the financial sector's ability to serve scientific and technological innovation, and develop a sci-tech financial system that aligns with scientific and technological advancements. The NFRA has earnestly implemented the guiding principles of the third plenary session of the 20th CPC Central Committee and the Central Financial Work Conference. We have strengthened regulatory guidance to encourage banks and insurance institutions to increase their investment in sci-tech enterprises, giving priority to cultivating patient capital and long-term investment. As you all know, sci-tech enterprises have distinctly different characteristics from those in other industries. They are characterized by innovation-driven processes, technology intensity, high-growth potential, extended R&D cycles and high levels of uncertainty. Therefore, traditional financing models cannot fully adapt to their needs. In light of this, the NFRA has undertaken several initiatives.

First, we are improving the technology finance policy framework. The NFRA has issued guidelines on developing technology finance, green finance, inclusive finance, pension finance, and digital finance for the banking and insurance sector. We have also issued a document on technology finance, namely the notice on strengthening full life-cycle financial services for sci-tech enterprises. This notice further optimizes the service mechanism for offering credit loans to sci-tech enterprises, guiding banking and insurance institutions to provide differentiated and targeted financial services to sci-tech enterprises in different industries and at different growth stages. The aim is to continuously improve service efficiency and adapt to the financial needs of different companies. Financial needs encompass both financing and intellectual support, and they vary at different stages of a company's development. A sci-tech start-up may require equity investment initially. During the growth stage, it might need loan financing. Upon reaching maturity, the company may seek more insurance products to hedge against uncertainty and risks. 

Second, we are actively developing innovative financial products. We have regulated the development of exclusive financial services such as “loans + outbound direct investment,” technology insurance, and supply chain finance for leading sci-tech enterprises. The NFRA has worked with the National Intellectual Property Administration to implement paperless online registration for intellectual property pledge financing nationwide, facilitating the financing of sci-tech enterprises. We are guiding large banks in conducting intellectual property valuation. This is crucial because registration and valuation are important prerequisites for obtaining financing. Without accurate valuation, loan issuance and financing face challenges. As Mr. Xiao just reported, by the end of June, the loan balance for high-tech companies in China had increased by 20% year on year, and the balance of intellectual property pledge loans had reached 234 billion yuan, up 38% year on year.

Third, we are further leveraging the risk protection capabilities and long-term funding advantages of insurance capital. Sci-tech enterprises inherently face high levels of uncertainty, which naturally aligns with the risk protection function of insurance. By the end of June, insurance companies had provided 6 trillion yuan in insurance coverage for risks associated with various stages of scientific and technological activities, including R&D, industrial application of advances, and application promotion. We have also supported the removal of policy barriers that previously hindered insurance funds from engaging in equity investment and venture capital investment. Some large insurance companies are now actively participating in various funds and equity investments. As of the end of July, long-term equity investments from insurance funds had reached 2.7 trillion yuan.

Fourth, we are improving regulatory incentives for technology finance and enhancing professional service capacities in this sector. Sci-tech enterprises have distinct characteristics: they are often asset-light, have long R&D cycles, and face considerable uncertainties. In the past, when banks assessed creditworthiness, they focused on traditional enterprises' assets and credit history, an approach based on tangible evaluations. This method doesn't suit sci-tech enterprises. To address this, we're working on further improving the credit evaluation system. We're encouraging a shift from the traditional focus on checking financial statements and collateral toward assessing capabilities, products, and future prospects. While traditional credit ratings look backward, credit ratings for sci-tech enterprises need to look forward. We're encouraging banks to develop differentiated credit evaluation systems that align with the operational characteristics of innovative sci-tech enterprises.

Innovative sci-tech enterprises undergo a lengthy process, from developing a single patent or technology to achieving mass production. Consequently, short-term performance evaluations struggle to accurately measure the success of equity investments and loans in this sector. We are encouraging banks to explore relatively longer-term performance assessment schemes, appropriately increase their tolerance for non-performing loans, and establish mechanisms to ensure that those which have fulfilled their duties are not held accountable.

Next, we will earnestly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. With a reform-oriented mindset, we will take profound and practical measures to further advance the implementation of technology finance policies. We will establish comprehensive pilot zones for intellectual property financial ecosystems in areas with active scientific and technological innovation. These zones will provide diversified financial support to enterprises. We will explore the use of financial asset investment enterprises as platforms to expand the scope of equity investment pilot programs. We will investigate ways to raise the proportion of insurance funds that can be invested in venture capital funds. We'll support insurance companies' investments and encourage more insurance funds to act as long-term patient capital in the science and technology sector. We will also facilitate the participation of wealth management companies and other financial institutions in providing technology financial services in accordance with laws and regulations.

Thank you!

Xing Huina:

Due to time constraints, today's briefing is hereby concluded. If you have any questions, you can contact us after the briefing. Thanks to all the speakers and all our media friends.

Translated and edited by Wang Yiming, Wang Qian, Zhou Jing, Huang Shan, Wang Ziteng, Qin Qi, Yuan Fang, Mi Xingang, Zhang Junmian, Liu Caiyi, Yang Chuanli, Li Huiru, Xu Kailin, Wang Yanfang, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Liu Haitao, deputy commissioner of the National Immigration Administration (NIA)

Ms. Peng Ling, director general of the Department of Citizens Exit-Entry Management of the NIA

Mr. Liu Jia, deputy director general of the Department of Foreigners Management of the NIA

Chairperson:

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

Date:

Aug. 19, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Liu Haitao, deputy commissioner of the National Immigration Administration (NIA), to brief you on relevant developments and to take your questions. Also present today are Ms. Peng Ling, director general of the Department of Citizens Exit-Entry Management of the NIA; and Mr. Liu Jia, deputy director general of the Department of Foreigners Management of the NIA.

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

Liu Haitao:

Ladies and gentlemen, good morning. It's a great pleasure to meet you again. I would like to express my gratitude to you for your long-term interest in and support for the immigration management work. 

The third plenary session of the 20th Central Committee of the Communist Party of China (CPC) issued the resolution on further deepening reform comprehensively. Established in April 2018 following reforms, the NIA has firmly implemented the series of important instructions and directives of the CPC Central Committee with Comrade Xi Jinping at its core, regarding immigration management work. The NIA has continuously deepened immigration management reform as well as policy and institutional innovation, creating a secure, orderly and dynamic immigration management environment for high-quality development.

First, the NIA has significantly enhanced services to promote the nation's opening up and development. In line with the strategy of invigorating China through developing a quality workforce, we have implemented more proactive and effective immigration management policies to attract talent. This has involved improving a comprehensive response system for international talent in all links, including entry and exit, stay and residency, permanent residency, and social integration. We have facilitated and coordinated the introduction of a large number of international professionals across various fields such as science, education, culture, health and sports, including those urgently needed in critical sectors. These efforts have gathered an increasing amount of intellectual resources. By assembling the brightest minds from all over and fully drawing on their expertise, we aim to achieve greater self-reliance and strength in science and technology. We have proactively contributed to the creation of a new development pattern and accelerated the institutional opening up of immigration management. We have introduced over 300 measures to stabilize industrial and supply chains and to promote the development of shipping, saving shipping enterprises a total of 2.05 billion yuan in various fees since the beginning of the year. By helping enterprises ease difficulties, reduce costs and increase efficiency, we have consolidated and enhanced our new advantages in participating in international competition and cooperation. Furthermore, we have vigorously promoted personnel exchanges and interactions, issuing over 110 policies and measures to facilitate the entry of foreign nationals into China. We have continuously refined polices for visa-free entry, visa-free transit and port visas among others, leading to a steady rise in the number of foreign visitors. Recently, "China Travel" has gone viral online, with more foreign tourists witnessing firsthand a China that is open, confident, civil and safe. They have also personally experienced China's development achievements and the positive, united and hardworking spirit of its people. The 144-hour visa-free transit policy, which has become very popular recently, now covers 37 ports and 54 countries, and I believe vividly illustrates the high-level opening up and high-quality development of China's immigration management services.

Second, the NIA has consistently taken practical measures to make it easier for the public to obtain documents and handle procedures. In recent years, we have been dedicated to addressing people's expectations regarding exit and entry processes. To simplify document acquisition, we have introduced several policies, including "one-trip" and "nationwide accessibility" services for gaining exit and entry permits, full online processing for exit and entry permit replacement and reissuance, mainland services for replacing and reissuing the Mainland Travel Permit for Hong Kong and Macao Residents, and options for Taiwan residents to obtain mainland travel permits online, at ports or through centralized agencies. These initiatives have made obtaining exit and entry permits faster, smoother and more economical for the public. To streamline customs clearance, we have taken measures to ensure that Chinese citizens wait no longer than 30 minutes in line, reducing the average inspection time to 45 seconds per person. Our customs clearance speed has been among the fastest in the world. To enhance service satisfaction, we have established the Government Service Platform of the National Immigration Administration, offering one-stop services including service appointment, document processing and exit-entry record inquiries. We have also launched the 12367 service hotline, providing 24/7 policy consultation. Additionally, we have rendered the use of exit-entry permits more convenient, so that Hong Kong, Macao and Taiwan residents, as well as overseas Chinese, can enjoy convenience in 35 areas such as travel, communication and financial services, simply by using their exit-entry permits. 

Third, we have safeguarded national security and stability of borders through new efforts. High-quality development depends on high-level security. These last few years, we have always adhered to enforcement that is strict, standardized, impartial and civilized. We protect lawful actions, crack down on illegal ones and guide people to abide by the law, maintaining the normal order in entry and exit administration according to the law. The entry-exit and border inspections at ports are tight. Foreigners' visas are signed and issued in adherence with the rules. Border patrol and control have been strengthened. For four straight years, we have conducted special actions to combat criminal activities disturbing border management, cracking down on illegal border crossings, cross-border gambling and electronic fraud, the smuggling and trafficking of drugs as well as other cross-border illegal and criminal activities. This has resulted in a continuous decrease in the number of illegal border crossings, with the security situation at the border continuing to improve. After years of efforts, the order of entry-exit administration is the best in history. Immigration administration is becoming a brand-new window for China's efforts in advancing law-based governance and ensuring security. 

The third plenary session of the 20th CPC Central Committee raised new requirements on further deepening reform and promoting modernization in immigration administration while injecting new momentum for implementation. We will thoroughly study and implement the spirit of the third plenary session, stepping up efforts to boost development while ensuring security, increasing vitality while maintaining order, and strengthening regulation while improving services in order to continue our contribution to Chinese modernization.

That's all for now. Next, my colleagues and I are happy to take your questions. Thank you!

Xing Huina:

The floor is now open to questions. Please identify the news agency you work for first.

Red Star News:

We have noticed that since last year China has trialed unilateral visa-free policies for several countries and has implemented mutual visa-free policies with other countries. In particular, our immigration authority has extended the coverage of the 144-hour visa-free stopover policy and has adjusted as well as eased port visa application requirements, among other policies and measures, with the aim to facilitate foreigners travelling to China. What results have these measures achieved? Do you plan to roll out more facilitative measures? Thank you.

Liu Haitao:

Thank you for the questions. I will address them. I just mentioned that the hashtag "China Travel" has recently gone viral on social media platforms worldwide. Thanks to this, our policies and measures that provide convenience to foreign visitors, including the 144-hour visa-free stopover, have become well-known. Over the years, the NIA has worked with relevant departments to expand the scope of the visa-free policy to include more countries, and has carried out a series of policies and measures to facilitate foreigners coming to China. These policies can be summarized in three aspects, as I will explain. 

First, the 144-hour visa-free stopover policy offers convenience to foreigners. The visa-free transit policy has been implemented since January 2013, with eligible countries and ports, length of stay, and areas for stay continuously being optimized. Since the beginning of this year, this policy has further released dividends, attracting foreign tourists and making the increasing openness of China more well-known.  

Second, differentiated visa-free transit policies attract foreign visitors from diverse regions. These policies include: 144-hour visa-free entry for foreign tour groups to Guangdong via Hong Kong and Macao; 144-hour visa-free entry for tour groups from ASEAN countries to Guilin, Guangxi; 30-day visa-free stay for visitors from 59 countries entering Hainan; and 15-day visa-free stay for foreign tour groups on cruises across China's coastal provinces. Recently, we launched a 144-hour visa-free transit for foreign tour groups entering Hainan via Hong Kong and Macao. More than 5.9 million foreign tourists have benefited. 

Third, we have innovated port visa policies to attract foreign businesses by further easing the requirements for port visa applications. Foreigners who urgently need to come to China to engage in business, trade, visits and other activities can apply for port visas with 100 relevant authorities in 73 cities. We provide many convenient services for foreign business personnel and investors, including re-entry visas, to ensure their easy entry and easy stay. 

These policies are complementary and synergistic, and the benefits are multifaceted. The most direct change they bring is the rapid increase of foreign visitors to China. According to NIA statistics, from January to July of this year, a total of 17.25 million foreigners have entered China via different ports, an increase of 129.9% year on year. The number of port visas issued was 846,000, an increase of 182.9% year on year. 

The most significant impact has been the direct boost to China's inbound tourism market. According to data released by the National Bureau of Statistics in 2023, foreign tourists visiting China spend an average of 3,459 yuan daily, which is expected to directly boost consumption by over 100 billion yuan.

Moving forward, we will continue to optimize and improve policies and measures such as visa-free transit. We plan to expand the scope of activities, increase interconnected regions, and enhance our openness strategy. These efforts will further increase the value and appeal of our policies. Additionally, we will actively coordinate with relevant departments to improve convenience for foreigners visiting and staying in China.

I would also like to extend an invitation to our friends from around the world. We welcome you to visit China at your convenience and experience firsthand the beauty of China in the new era. China's doors are always wide open to you. We welcome your visit. Thank you.

The Poster News APP:

Currently, residents in 20 cities, including Beijing, can apply for and renew their exit-entry documents online without requiring an in-person visit. Could you share the experiences gained from these pilot programs? Will the scope of these trials be expanded in the future? Thank you.

Liu Haitao:

I'd like to invite Ms. Peng to answer your questions.

Peng Ling:

Thank you for your question. To further advance online reforms in immigration services, we launched a pilot program on May 6 this year in 20 cities, including Beijing, allowing local residents to apply for and renew their exit-entry documents entirely online. In the past three months, we have issued documents to more than 70,000 people, earning widespread praise from the public.

Our experience can be summarized as follows: First, we prioritize convenience for the public as the primary focus of reform. The "fully online process" has expanded options for handling exit-entry documents, allowing people to apply with just a few clicks anytime, anywhere, saving applicants significant time and effort. This meets the public's expectations for immigration management services that can be fully handled online and strengthens our confidence to continue deepening reform based on people's needs. Second, we prioritize the protection of citizens' personal information. We enforce strict security standards and rigorous measures. We have established a robust network security system to safeguard information storage and transmission, ensuring the absolute security of citizens' personal information. Third, we focus on problem-solving. During the pilot phase, some applicants reported issues with the online system's user-friendliness and low acceptance rate for submitted photos. In response, we quickly optimized over 20 functional modules and created step-by-step instructional video guides, continually boosting user experience and satisfaction.

Since the beginning of this year, the implementation of convenient measures, including the fully online process, has boosted the issuance of entry and exit documents. To date, we've issued 15.82 million regular passports and 61.73 million exit-entry permits and endorsements for Hong Kong, Macao and Taiwan, representing year-on-year increases of 25% and 6%, respectively.

Next, we will promptly evaluate the outcomes of the pilot programs. Following the principles of "safety first and orderly progression," we plan to gradually expand the range of pilot cities, document types, and eligible applicant groups, allowing more people to enjoy the benefits brought by these reform measures.

Thank you.

People's Daily:

In recent years, with China's rapid economic development and increasing openness, mainland residents have shown a strong demand for international travel, business and study. The number of travelers crossing national borders has been steadily rising. What measures has the NIA taken to serve and support mainland residents' exit and entry needs, and what have been the results? What favorable policies or measures are planned for the future? Thank you.

Peng Ling:

Thank you for your question. As you noted, our country's high-quality socio-economic development has increased mainland residents' desire for international travel. Public interest in immigration management services is strong, with high expectations for international standards and work performance. In response, we are committed to establishing a modern immigration management system and mechanism that aligns with new institutions for a higher-standard open economy.

First, we have always adhered to performing our duties according to the law, having firmly established the concept of strict, standardized, impartial and civilized enforcement as well as resolutely preventing and cracking down on illegal and criminal activities that involve the field of exit and entry while effectively safeguarding the legitimate rights and interests of citizens. By continuously improving our governance capabilities, we have established a lawful, safe and orderly exit and entry management, providing solid and smooth guarantees for Chinese citizens and enterprises to go global.

Second, in the reform driven by the one-stop government services initiative, we have continuously streamlined application documents, optimized certificate issuance procedures, scientifically set up service windows, and increased technological empowerment. As a result, the entry/exit documents application has evolved from a nationwide, one-stop service that required a one-time visit to an intelligent express service that is fully processed online and doesn't require any visit.

Third, we have continually enhanced the efficiency of entry and exit and border inspections. By setting up dedicated channels for Chinese citizens at ports with heavy passenger traffic, we have brought warm feelings to those traveling afar and returning home. Express lanes have been established at over 200 land, sea and air ports to further shorten customs clearance time and improve travel experiences. Furthermore, we have implemented joint inspection and one-time release at the Hong Kong-Zhuhai-Macao Bridge and Hengqin Port, effectively alleviating congestion at large ports.

Additionally, to safeguard the entry and exit rights and security interests of Chinese citizens, we have collaborated with diplomatic departments to promote more countries to facilitate the entry, stay and residency of Chinese citizens. We proactively strengthen security risk warnings, guiding citizens to avoid dangerous regions and preventing personal harm and property losses. We also respond to and cooperate with our overseas institutions around the clock, promptly and properly handling overseas emergencies and actively providing emergency services and support to citizens and their families.

In the next step, we will continue to wholeheartedly do practical and beneficial things and solve difficulties for the people, providing more high-quality, efficient and convenient immigration management services for the vast number of people entering and leaving the country, continuously enhancing people's sense of fulfillment, happiness and security.

Thank you!

Global Times:

On Dec. 1 of last year, the NIA officially launched the issuance of a new ID card for foreign permanent residents, also known as the "five-star card." May I inquire about its current effect and the conveniences it offers in use? Thank you.

Liu Jia:

Thank you for your questions. The "five-star card" is a legal identity document issued by the NIA to eligible foreigners who have been approved for permanent residency in China. The issuance of this card is an important measure of the NIA to implement the strategy for making China a talent-strong country as well as to serve and safeguard the country's high-standard opening up and attract talents and investment. Since Dec. 1 of last year, the number of international talents applying for the new Foreign Permanent Resident ID Card, or the "five-star card," has increased by 30% year on year, which is closely related to the facilitation that the card brings. Allow me to briefly introduce some of its conveniences.

In terms of transportation, the "five-star card" can be used to purchase train, air and bus tickets online and offline. It can also be used for ticket checking, check-ins and security checks at airports, train and bus stations and other venues equipped with self-service devices by simply swiping the card. For accommodations, the "five-star card" can be used alone to check in and register at hotels by swiping the card. In terms of communications, it can be used to apply for fixed-line telephones, to register mobile phone accounts and to subscribe to broadband services at telecommunication service outlets. For financial services, the "five-star card" can be used as proof of identity to open accounts, manage finances and conduct other businesses at commercial banks, insurance companies and securities firms. Additionally, the "five-star card" has been integrated into the system for access to all government services through one single portal, enabling holders to enjoy mobile payments, utility bill payments, public transportation and other services via over 30 internet applications such as WeChat, Alipay and Douyin. It is fair to say that the "five-star card" is as convenient and user-friendly as a Chinese resident identity card in public service areas.

To facilitate the renewal of the "five-star card," we have implemented a service that facilitates the submission of application by card holders at service locations near their permanent residences. In the next step, we will work with relevant authorities to further expand the social application functions of the "five-star card," making it even more convenient and user-friendly. Thank you!

CCTV:

With the rapid development of China's economy and the continuous expansion of its opening-up policy, Chinese ports are experiencing a significant surge in the volume and speed of inbound and outbound traffic for both people and goods. Given this situation, what measures has the NIA taken to ensure the security and smooth functioning of ports nationwide? What achievements have been made?

Liu Haitao:

Thank you for your questions. I'll answer them. According to the NIA, 341 million inbound and outbound trips were made from January to July this year, an increase of 62.34% year on year. Additionally, 18.176 million cross-border trips were made by various modes of transport, including aircraft, vehicles, ships and trains, representing a 52.09% year-on-year increase. These figures demonstrate that an open China provides enjoyable travel for passengers and ensures the smooth transport of goods. This smooth flow is closely tied to the immigration administration's policy support.

As for the effectiveness of these policies, I would say they can be encapsulated by the terms "more convenient" and "more efficient."

First, we have more efficiently ensured the smooth flow of industrial and supply chains. We've set up customs clearance "green channels" for major cargo flights at hub airports and implemented priority processing for critical and time-sensitive shipments. We've enacted simplified border procedures for direct round-trip flights and connecting flights. Additionally, we've introduced a one-stop border clearance policy for international passenger and cargo flights on direct round-trip routes entering and exiting the country. For maritime ports, we've adopted time-saving and cost-reducing measures to help businesses, including 10 measures to promote the construction of shipping hubs in the Yangtze River Delta, 16 measures to support shipping enterprises, and a zero-wait policy for inbound international vessels and a zero-delay policy for outbound vessels. Moreover, we have fully digitized border inspection services for matters requiring government approval, with more than 95% of border inspections now processed entirely online. We have introduced "fast channels" at land ports for key cross-border freight vehicles, ensuring immediate inspection upon arrival and expedited customs clearance. As such, 78,000 China-Europe freight train trips have enjoyed immediate inspection upon arrival at border crossings, with an average annual growth rate of 23.4%. The China-Europe Railway Express now delivers vegetables and fruits from Henan and Shandong provinces to Europe 30 days faster than maritime shipping. 

Second, we have streamlined entry and exit procedures at border crossings for greater convenience. As I mentioned previously, the average border inspection time for Chinese citizens has been reduced to 45 seconds. I'd like to share two more data sets that are highly representative. The average clearance time per person at over 2,400 fast lanes in all 227 designated inspection ports for travelers nationwide is less than 15 seconds. As a result, over 1 million inbound and outbound travelers now enjoy efficient and convenient border clearance services every day. The average customs clearance time for vehicles at Hengqin port is no more than 2 minutes. Thanks to the new border inspection model, ports cooperate with each other to implement one-off customs clearance. This promotes the integrated development of Hengqin and Macao. There are a lot of other data sets similar to this. For example, we have implemented facilitation arrangements for border entry and exit for Belt and Road countries in 24 ports, setting up more than 200 special channels. This has enabled 10.66 million inbound and outbound trips by personnel from countries along the Belt and Road in the first half of the year, a 1.6-fold increase compared with the same period last year. Moreover, we've introduced a policy of 24-hour direct transit without border checks this year at nine hub airports: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Xiamen, Chengdu and Xi'an. Therefore, over 2 million travelers have enjoyed this direct transit service without undergoing border check procedures in the past seven months. 

Going forward, the NIA will continue to actively and prudently advance the institutional opening-up of immigration management. We aim to offer more support for Chinese enterprises, products and personnel venturing abroad while attracting more foreign investment, investors and enterprises. These efforts are designed to serve and promote high-quality development. Thank you. 

Zhinews of Shenzhen Satellite TV:  

With the rapid development of the Guangdong-Hong Kong-Macao Greater Bay Area and the high-quality development of Belt and Road cooperation, Hong Kong and Macao are integrating themselves into China's overall development at an unprecedented scale and depth. In July, the NIA, in accordance with the law, began issuing mainland travel permits to non-Chinese permanent residents of Hong Kong and Macao. What benefits does this new policy offer? How has the permit issuance process progressed so far? Thank you.

Liu Haitao:

You raise a good question. This matter has been receiving a lot of attention online recently. I would like to invite Ms. Peng to answer your question.

Peng Ling:

Thank you for your question. Non-Chinese permanent residents of Hong Kong and Macao participate in and contribute to the development of the two special administrative regions. Granting them with mainland travel permits is a major reform measure that embodies our full and accurate implementation of the One Country, Two Systems policy. It also aligns with the new demands and expectations of the Hong Kong and Macao societies, significantly accelerating institutional openness in the field of entry and exit.

There are advantages for permit holders in contrast to the previous requirement of a passport for travel. First, the permit's five-year validity allows for unlimited travel to and from the mainland, facilitating spontaneous trips. Furthermore, each entry allows for a stay of up to 90 days on the mainland, fully meeting the practical demands of investment negotiations, business collaboration, scientific exchanges and personal visits. Additionally, permit holders benefit from expedited customs clearance, as they are exempt from filling out entry cards and can use fast-track lanes at border inspections, thereby experiencing China's speed and efficiency.

Since the policy took effect on July 10, in just over one month, nearly 30,000 non-Chinese permanent residents of Hong Kong and Macao have applied for permits. Some individuals have already enjoyed the enhanced efficiency and convenience of this streamlined border crossing process on the very day they received their permits.

Looking ahead, we will further explore and expand the practical applications of the One Country, Two Systems policy in the realm of entry and exit strategies. Our goal is to enhance mutual exchanges between the peoples of the mainland, Hong Kong and Macao, continually injecting new impetus into the socioeconomic development of Hong Kong and Macao. Thank you.

China Daily:

Just now, Mr. Liu mentioned that the NIA has facilitated, coordinated and served the introduction of a large number of international talents in various fields such as science, education, culture, health and sports. Could you provide more details on the outcomes achieved so far and outline the future plans in this respect? Thank you.

Liu Jia:

Thank you for your question. General Secretary Xi Jinping pointed out that "to develop our cause well, it is essential to select the best minds of the world." In recent years, based on China's national conditions and the needs of high-quality economic and social development, the NIA has systematically optimized and improved visa, residence, permanent residence, naturalization and other policies and measures, providing strong support and guarantees for international professionals living and working in China.

First, we aim to attract and retain more talent. We have relaxed visa regulations, allowing eligible foreigners to obtain multiple-entry visas valid for up to 10 years at Chinese embassies and consulates abroad. For those unable to secure visas before arrival, entry visas can be issued at ports of entry. In cases where legitimate reasons necessitate frequent international travel, we offer facilities to issue or renew multiple-entry visas. Notably, professionals invited to engage in technical collaborations, economic and trade activities at leading Chinese universities, research institutions and renowned companies, as well as high-level talents and their teams working in China, are eligible for multiple-entry visas valid for two to five years.

Second, we aim to ensure a secure and supportive environment for talent. To facilitate this, we have streamlined and simplified the procedures for international talents working and living in China. In collaboration with relevant departments, we have implemented a "one-stop" service for foreigners applying for work permits and work-type residence permits that allows for simultaneous applications, approvals and issuances. We support leading domestic universities, research institutions and large enterprises in their efforts to recruit international talents. Additionally, those transferred within their organizations across regional boundaries are exempt from the need to reapply for residence permits. Qualified high-level foreign professionals are allowed to hold concurrent positions for innovative and entrepreneurial activities upon registration. Furthermore, we have actively engaged with employers, carefully aligning talent supply with demand, establishing linkage mechanisms and consistently devising strategies to help organizations attract and retain talent.

Finally, we aim to improve the living standards of international talents residing in China. We have issued a new version of the foreign permanent resident ID card, known as the "five-star card," and promoted convenient social applications. We have launched the China Immigration Service Hotline 12367 that provides 24/7 service worldwide, and launched the NIA website covering the six official languages of the United Nations. We have also promoted the construction of immigration service centers and sites, which have greatly improved the quality of life for international talent in China.

Next, we will implement the plan set forth by the third plenary session of the 20th CPC Central Committee to "explore avenues for establishing an immigration system for highly-skilled personnel." We will actively collaborate with relevant departments to enhance policy research and refine system design, with the aim of providing highly-skilled personnel working and living in China with more comprehensive, convenient and efficient immigration management policies. Thank you.

New Yellow River App:

Could you elaborate on the new characteristics and changes in illegal land border crossings and smuggling at ports in recent years? Additionally, what measures has the NIA taken to ensure the safety and stability of the nation's borders and the normal order of exit and entry, and what results have been achieved? Thank you.

Liu Haitao:

Thank you for your question. I will address this. In recent years, with changes in the international landscape and regional geopolitical situations, illegal activities affecting border management have also exhibited new trends and characteristics. In the field of immigration management, this is primarily reflected in two aspects: First, in border areas, illegal exits of Chinese nationals have been curbed, with the number of apprehended individuals decreasing by 30% compared to last year. However, due to various factors, there has been an increase in the number of foreign nationals illegally entering for work through cross-border smuggling. We have been closely monitoring this. Second, at open ports, domestic and international smuggling gangs have been collaborating. They recruit individuals, falsify invitation letters, defraud social security payments and mask would-be smugglers as businesspeople or qualified company employees to obtain travel documents. These gangs then organize them to engage in cross-border criminal activities abroad. There remains a notable phenomenon of criminal groups organizing mainland residents to travel via Hong Kong and Macao to countries in East Asia, Southeast Asia, Europe, and Central and South America for transit smuggling.

To ensure the safety and stability of national borders and the normal order of entry and exit, the NIA has coordinated and guided immigration management institutions nationwide to deepen the integrated approach of "strike, investigate, manage, treat and coordinate" in combating all forms of illegal activities affecting national border management.

We have continuously carried out special crackdown operations. As I mentioned earlier, we have been conducting the "Mongoose" operation for four consecutive years. The mongoose, a natural enemy of snakes, symbolizes our operation. Relying on the "Mongoose" initiative, we have strengthened supervision over major and serious cases, and centrally deployed cluster campaigns. This approach has enabled concentrated analysis of similar cases, collaborative investigation of cross-regional cases, and comprehensive strikes against entire criminal networks. We have successfully severed numerous smuggling routes and effectively dismantled many illegal profit chains, effectively deterring the audacity of criminals both domestically and abroad.

We have enhanced targeted inspections at border ports. In fulfilling our statutory responsibilities for border inspections, we promptly analyze trends in cross-border crimes such as smuggling and dynamically adjust targeted inspection measures to rigorously monitor and prevent illegal entry and exit activities.

We have strengthened border patrols and controls. We have improved the three-dimensional border defense system by leveraging physical, technological and human defenses. This includes effective management of mountain passes, trails and ferry points that connect to external areas, further reinforcing the border defense line.

We have also implemented source management in critical areas. By integrating the dual strategies of enforcement and governance, we have integrated anti-smuggling efforts into grassroots comprehensive governance. We have conducted concentrated rectification activities in these areas, closing down non-compliant and illegal intermediary agencies and investigating non-compliant and illegal businesses. As a result, smuggling in critical areas has been effectively curbed.

We have continuously deepened international law enforcement cooperation, strengthening collaboration with relevant countries and regions. We have improved mechanisms for sharing intelligence, jointly investigating and handling cases, and pursuing and capturing fugitives. Efforts in the overseas "Mongoose" operation have been ramped up, resolutely squeezing the space for criminals abroad to evade justice.

Since this year, more than 22,000 illegal and criminal cases that obstruct border administrations have been solved nationwide, resulting in the arrest of over 39,000 criminal suspects. More than 6,000 illegal immigrants have been apprehended and 103 fugitive targets who had fled abroad have been successfully captured in cooperation with relevant countries. The effectiveness of these actions in deterring and combating such crimes continues to grow. Moving forward, the NIA will remain focused on the overall situation of national political security as well as economic and social development. We will unwaveringly apply a holistic approach to national security. With higher standards, more detailed planning and more concrete measures, we will maintain a strong and sustained crackdown on various crimes that hinder national (border) security. Our goal is to fully safeguard national political security, border stability and the proper order of entry and exit. Thank you!

21st Century Business Herald:

In recent years, the NIA has released a series of policies to facilitate personnel exchange between mainland and Hong Kong, Macao and Taiwan. What are the policies' effects? What future deployment and arrangements can we expect? Thank you. 

Peng Ling: 

Thank you for your questions. In recent years, we have continued to innovate policy provisions and have rolled out measures that facilitate mainland citizens' travel to and from Hong Kong and Macao. First, in promoting the movement of talent, we have piloted the issuing of a "talent visa" in Beijing, Shanghai and the Guangdong-Hong Kong-Macao Greater Bay Area for six professional categories in the fields of science, education, culture and health. So far, over 23,000 high-level talents have been issued these visas, allowing them to make unlimited trips to Hong Kong and Macao for periods of 1 to 5 years. Each stay can last up to 30 days, providing ample time for research exchanges and academic discussions, which significantly facilitates the free, convenient and efficient flow of talent and technology. In promoting economic and trade exchanges, business personnel can apply for business permits conveniently at over 4,000 entry-exit service windows across China. The duration of each stay in Hong Kong and Macao has been extended from 7 to 14 days. In advancing the development of the tourism industry, we have added 10 new cities, including Xi'an and Qingdao, as eligible for "individual visit schemes," increasing the total number of included cities to 59. In addition, we have allowed tourist groups to make multiple trips between Macao and Hengqin via the Hengqin Port, supporting the integrated development of tourism between Hengqin and Macao. 

At the same time, we have been continuing to introduce entry and exit policies and measures that facilitate Hong Kong, Macao and Taiwan residents' travel to and from the mainland. In serving Hong Kong and Macao residents, we have introduced policy allowing Hong Kong and Macao residents to replace and renew their mainland travel permits on the mainland, ending over 40 years of requiring residents to return to Hong Kong or Macao to complete these processes. Like mainland residents, they can now enjoy the convenience of applying in a single visit at a nearby service window and receiving the permit through postal delivery. So far, 312,000 people have benefited from this service. In serving Taiwan residents, we have focused on addressing their needs and have established specialized windows for Taiwan compatriots and companies, as well as entry-exit service stations. Since the beginning of this year, we have issued 798,000 certificates to Taiwan residents, a 21.6% year-on-year increase. We fully support Fujian province in building a demonstration zone for the integrated development across the Straits, rolling out 10 convenient measures including online application for the mainland travel permits for Taiwan residents. They can also apply for longer travel permits upon arrival or entrust travel agencies to make the application and then retrieve the documents upon arrival at the port of entry. These measures enable Taiwan compatriots to enjoy the benefits of integrated development and kinship between Fujian and Taiwan. The number of Taiwan residents applying for residency in Fujian has now exceeded the total of the previous 10 years. In addition, we have established an ID verification service platform for entry-exit documents to better serve Hong Kong, Macao and Taiwan residents living and working on the mainland. Together with 17 other departments, including the Ministry of Transport and the People's Bank of China, we have actively promoted the convenient use of the mainland travel permits for Hong Kong and Macao residents and the mainland travel permits for Taiwan residents in areas such as government services and public services on the mainland, ensuring that they can handle affairs smoothly and travel with peace of mind with just one certificate. So far, we have provided free, real-time identity verification services to 110 million people.

Looking ahead, we will continue to deepen reform and innovation in entry and exit administration services, better maintain the long-term prosperity and stability of Hong Kong and Macao, and actively promote the integrated development across the Straits. Thank you!

Xing Huina:

Next question, please. I notice two journalists have their hand raised. 

China News Service:

As the number of inbound and outbound travelers continues to rise, we would like to know what assistance the immigration authorities provide for them when they encounter problems and difficulties during entry and exit activities. Thank you.

Liu Jia:

Thank you for your question. Pressing difficulties and problems that concern inbound and outbound travelers the most are also the focus and responsibility of immigration authorities. China's 12367 immigration service platform, launched on April 8, 2021, has become a "customer service center" to help solve these difficulties and problems.

Why put it this way? First of all, the 12367 service platform is "capable of answering" all inquiries, and it always responds whenever there is a question. As the first government hotline in China that provides direct, bilingual human services in Chinese and English to both domestic and overseas callers, it has received and handled in the past three years of operation a total of 12.768 million calls with regard to immigration-related service consultation, suggestions and advice. The service covers 147 countries and regions around the world. Moreover, the 12367 service platform is capable of "handling problems", as it can offer timely and effective access to services. Besides the hotline, the NIA's official website, "National Immigration Administration Government Service Platform 12367" mobile app as well as WeChat and Alipay mini programs also have access to the functions of the "12367 online service," providing 24/7 bilingual human service or intelligent real-time response services in Chinese and English, truly offering a service that is always online, dutiful and continuous.

In addition to 12367, we also have launched a government website in the six official U.N. languages of Chinese, English, Russian, French, Spanish and Arabic, and offer functions such as guidance on immigration management, and office information query, making facilitations for Chinese and foreign personnel to inquire about China's immigration management services, keep abreast of relevant laws and regulations, and obtain other information they need. Since the website went online, the number of visits in total has been over 1.58 billion.

In the next step, we will continue to optimize the 12367 service platform and multilingual versions of our website, expand channels and functions of services, and make greater efforts to provide more efficient and convenient services to facilitate the entry and exit of personnel. Thank you!

Xing Huina:

Last question, please.

Nanfang Metropolis Daily:

The resolution adopted at the third plenary session of the 20th CPC Central Committee said that China will pursue high-standard opening up. It also stressed that we will improve relevant measures to make it more convenient for people from outside the mainland to live, receive medical services and make payments on the mainland. What arrangements have been made by the National Immigration Administration with regard to that? Thank you.

Liu Haitao:

Thank you for your question. I will take it. The third plenary session of the 20th CPC Central Committee adopted the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization, putting forward specific requirements for improving relevant measures to make it more convenient for people from outside the mainland to live on the mainland, improving the support mechanisms for recruiting talent from overseas, and exploring avenues for establishing an immigration system for highly-skilled personnel, thus sending a clear signal of expanding high-standard opening up. Immigration management work is at the forefront of opening up as well as at the intersection between domestic and international dual circulation. To thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee and safeguard high-quality development, it is critical to steadily expand institutional opening up on the basis of ensuring security. We will take the revision of the Exit and Entry Administration Law of the People's Republic of China as an opportunity, accelerating the improvement of the immigration management institution that has comparative advantages and is aligned with international economic and trade rules, so as to provide a sound immigration management environment for fostering a new development paradigm, accelerating the development of new quality productive forces and promoting high-quality development.

In combination with the functions of immigration management, I believe that we can make great progress in the following aspects.

First, we will further support the work related to attracting, gathering and keeping talent. In combination with the characteristics of cross-border flow of talent and the developmental law of talent cultivation, we will focus on key links such as facilitating the entry and exit of highly-skilled personnel, their stay and residency, permanent residency, as well as naturalization as Chinese nationals and restoration of Chinese nationality, and vigorously attract overseas high-level talent to pursue their development, business and other innovative ventures in China, enhancing the confidence of global talent in their long-term development in China.

Second, we will further advance high-standard opening up. We will contribute to the development of new institutions for a higher-standard open economy. We will introduce new policies for immigration management to serve major national strategies, minimize social costs and boost the vitality and creativity of market entities. We will empower the development of new quality productive forces, make the institutional supply of the immigration management better adapted to the development of strategic emerging industries and future industries, improve the system of immigration management policies and regulations, making them conducive to the smooth flow of various quality production factors, and propel immigration management to better integrate into and serve the modern economic system. We will facilitate personnel exchange between China and other countries, continuing to optimize the visa-free transit policy, regional visa-free entry policy and port visa policy, and thus making it easier for foreign nationals to work, study and travel in China as well as promoting high-standard opening up through institutional opening up in the area of immigration management.

Third, we will further improve government services for immigration management. We will make administrative approval more efficient. Just now, my two colleagues also shared some information. In the next step, we will make more frequently-used services be accessible at one stop, near people's homes, online and at one time. We will facilitate customs clearance, carry out reservations for rapid customs clearance of cross-border vehicles, promote the mode for fast vehicle customs clearance as well as the mode for mobile inspection and release, continue to explore application of innovative facial recognition and other technologies in the field of border inspection and customs clearance, strengthen the construction of new inspection infrastructure and cutting-edge equipment, further optimize the inspection process, and improve the efficiency of customs clearance, so as to ensure the efficient and smooth flows of personnel, commodities and other factors of production. We will refine social integration services, expand convenient application scenarios for entry and exit documentation, accelerate the multi-channel, multilingual and intelligent development of the 12367 service platform, create an "Internet+" government service brand that is globally-oriented, has complete functions and enjoys high public satisfaction, and make greater effort to remove obstacles and chokepoints in various services for overseas personnel that are traveling, working and living in China.

Thank you!

Xing Huina:

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

Translated and edited by Xu Xiaoxuan, Wang Wei, Liu Sitong, Wang Qian, Liu Caiyi, Wang Yiming, Wang Ziteng, Gong Yingchun, Huang Shan, Liao Jiaxin, Li Huiru, Yang Chuanli, Liu Qiang, Liu Jianing, Xu Kailin, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration

Mr. Wang Guowei, deputy director general of the Department of Comprehensive Planning of the SAMR

Mr. Zhou Zhigao, director general of the Department of Competition Policy Coordination of the SAMR

Mr. Liu Sanjiang, director general of the Bureau of Quality Development of the SAMR

Chairperson:

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

Date:

Aug. 16, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration, to brief you on relevant developments and to take your questions. Also present today are Mr. Wang Guowei, deputy director general of the Department of Comprehensive Planning of the SAMR; Mr. Zhou Zhigao, director general of the Department of Competition Policy Coordination of the SAMR; and Mr. Liu Sanjiang, director general of the Bureau of Quality Development of the SAMR.

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

Pu Chun:

Thank you. Ladies and gentlemen, good morning. I'm very glad to attend this press conference with my colleagues, and to speak with you about how market regulation has supported high-quality development in recent years. 

The 20th National Congress of the Communist Party of China (CPC) drew a grand blueprint for building a modern socialist country in all respects, with high-quality development being the top priority in this endeavor. In recent years, market regulatory authorities have adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully and faithfully applied the new development philosophy on all fronts. They have better coordinated efficiency and fairness, vitality and order, as well as development and security, striving to fulfill their role in supporting overall high-quality development. The achievements are mainly reflected in five aspects:

First, market regulation systems and rules have consistently been improved. We have focused on refining a unified market regulatory framework. For example, we have facilitated introducing and implementing the regulation on the registration management of market entities as well as the revised Company Law and its supporting rules. We have amended the Anti-Monopoly Law, pushed for the introduction of regulations for fair competition reviews, and advanced the revision of interim regulations on the disclosure of information regarding companies' practices. Additionally, we have issued an interim regulation against unfair competition in cyberspace. These efforts have provided strong support for constantly improving the systems underpinning the market economy.

Second, the development quality of business entities has been continuously increased. We have worked to unleash the internal driving forces and creativity of various business entities, establishing and refining an evaluation system for their development quality. We have launched 22 measures to promote the private economy's development, and promoted the practice of "getting one thing done efficiently" in areas such as business deregistration. We have provided precise and effective support for the development of self-employed individuals. In 2023, the number of registered business entities nationwide reached 184 million, with a year-on-year increase of 0.69% in business activity, and the average lifespan of exiting enterprises was extended by 0.64 years.

Third, the fair competitive market environment has been further optimized. We have thoroughly implemented policies for fair competition and continuously enhanced the rigid restraints of fair competition review. We have strengthened regulation and law enforcement against monopolies and unfair competition, effectively ensuring fair market competition. Since the implementation of the mechanisms for fair competition, a total of 1.62 million policies and measures have been reviewed nationwide, abolishing or revising 93,000 policies and measures that eliminate or limit competition. Since the beginning of this year, we have investigated and prosecuted, in accordance with the law, four cases of monopoly agreements and market dominance abuse, 6,076 cases of unfair competition, and 10 cases of abusing administrative power to exclude or restrict competition. After the implementation of revised rules on declaration standards regarding the concentration of business operators, the number of declarations decreased by 13% year on year, making business investments and mergers more convenient. Surveys show that over 80% of enterprises are satisfied with the professionalism of competition-related law enforcement.

Fourth, stronger guidance and support on quality and standards have been provided. We have accelerated improvements to quality infrastructure to adapt to the modernized industrial system. Efforts have been focused on advancing key initiatives, including a special campaign to strengthen supply chains through quality improvement and signature projects to stabilize chains through standardization. We also formulated an action plan to promote equipment renewal and consumer goods trade-ins by improving standards. Since this year, 628 quality improvement projects have been launched nationwide to strengthen supply chains. We've also revised and newly formulated 84 key national standards. Additionally, we've announced 112 national standards in areas such as energy efficiency, home appliances and gas equipment. We've also established and refined quality certification systems for key industries and are accelerating the opening up of high-level certification and accreditation systems to support high-quality development. To date, 3.91 million quality certification certificates have been issued, covering over 1 million organizations. China has joined 21 international conformity assessment organizations and has signed 15 multilateral mutual recognition agreements and 128 bilateral cooperation and mutual recognition agreements.

Fifth, progress has been made in comprehensive market order governance. We've focused on regulating the use of discretionary administrative powers in market affairs to improve regulation-based law enforcement. The consumer environment has been further optimized by fully implementing a public complaint information disclosure system and improving recall management systems. We've developed and strengthened a market regulation safety responsibility system that emphasizes increasing efforts at the primary and grassroots levels to ensure tangible, real-world results. This approach has further enhanced our risk control mechanisms across key areas, including safety in food, drugs, industrial products and special equipment. So far this year, market regulation authorities at all levels have handled 315,000 cases, resulting in fines and confiscations totaling 1.7 billion yuan ($240 million). The national 12315 hotline platform has seen a 33.7% year-on-year increase in complaints, reports, and inquiries, recovering 2.04 billion yuan in economic losses for consumers. There have also been 150 automobile recalls involving 6.678 million vehicles and 485 consumer product recalls involving 3.129 million items.

The present and the near future constitute a critical period for our endeavor to build a great country and move toward national rejuvenation on all fronts through Chinese modernization. We will thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. Our efforts will focus on major reform tasks like building a high-standard socialist market economy, promoting high-quality economic development, building a unified national market, refining the systems underpinning the market economy, improving the institutions and mechanisms for fostering new quality productive forces in line with local conditions, pushing forward the innovative development of the platform economy while improving the system for its routine regulation, and enhancing the overall market regulation capabilities. These reforms will contribute our part to China's modernization through high-quality development.

That is all for my introduction. Now, my colleagues and I will be pleased 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.

Shenzhen Satellite TV:

An increasing number of people are paying attention to the credibility of business entities. Could you update us on the progress of building a credibility system for businesses? Thank you.

Pu Chun:

In recent years, market regulators have accelerated the development of a business credibility system. This includes establishing credibility records, publicizing credit information, promoting incentives for trustworthy behavior, penalizing trust breaches, and implementing categorized credit risk management.

Since its launch, the National Enterprise Credit Information Publicity System has averaged 131 million visits and over 16 million inquiries daily. Consumers and market participants can easily access comprehensive information about a business's operations and credibility, enabling them to make informed judgments. Information disclosure is now widely seen as a supervisory tool, demonstrating how credit oversight can facilitate public governance and support high-quality business development.

An increasing number of businesses are prioritizing their credit status. On the one hand, the SAMR has intensified its three-year campaign to improve business credit, focusing on laying a solid foundation, empowering leading market players, improving services, and enhancing overall credit levels. On the other hand, we are gradually refining the joint work system for credit restoration, ensuring that information on restoration outcomes is shared and mutually recognized and addressing redundant restoration processes.

Besides, we have continued to enrich our credit supervision toolbox and have implemented inclusive and prudential regulations. We have implemented, across the board, the classification management for enterprise credit risks, with classification results being regularly used in practices such as the random selection of inspectors and inspection targets and the prompt release of results. This random selection method has led to a 51.9% increase in the number of issues detected. Enterprises' credit information will be shared in various ways to all departments. By the end of July, 11.331 billion pieces of data had been directly provided and 2.032 billion interface call services has been offered, supporting coordinated supervision. We have explored sharing credit supervision data with platform enterprises, supporting Zhejiang province and Haidian district of Beijing in sharing such data with platform enterprises on a trial basis. In places like Shenzhen and Hangzhou, pilot work has been done to check information of individual businesses via WeChat and Alipay platforms. All these have contributed to the exploration of enhancing joint governance with platform enterprises. We have promoted the joint construction of credit initiatives in the Beijing-Tianjin-Hebei region and Yangtze River Delta Region, as well as initiated the joint construction of a credit system in the Guangdong-Hong Kong-Macao Greater Bay Area, empowering regional coordinated development and serving national major strategies. 

Going forward, the SAMR will follow the principle of "improving the social credit system and related oversight institutions" proposed by the third plenary session of the 20th CPC Central Committee, continuing to focus on the central task of building a market entities credit system. With enhancing enterprise credit as the main task, information collection and publication as the foundation, credit constraint and discipline as the key, dual random selection supervision model as the lever and credit risk classification as the basis, we will continue to leverage the role of credit to empower high-quality development. By doing so, the improvement of the credit environment will drive the improvement of the market environment, business environment and development environment. Thank you. 

People's Daily:

This year the State Council has launched an initiative to optimize administrative services and promote one-stop government services. What has the SAMR done to implement the initiative by the State Council? 

Pu Chun:

I'll ask my colleague, Wang Guowei, to respond to this question.

Wang Guowei:

Happy to answer your question. Since this year, according to the arrangement of the State Council, SAMR's work with relevant departments to promote one-stop government services has been with three services frequently encountered by residents and involving various departments. The three services are business information changes, business deregistration and opening a restaurant. 

What are one-stop government services? Previously, what seemed like a single matter to enterprises and residents actually involved multiple departments, requiring applicants to navigate various procedures step by step, which led to repeated visits to departments. Each department designed its own rules, with some departments requiring the completion of procedures in other departments before the applicants could proceed, resulting in reciprocal requirements and additional trips for applicants. This problem wasn't unheard of in the past, causing great inconvenience to residents. How do one-stop government services solve the problem? In short, it requires coordinated innovation and deep integration across the three aspects of systems, operations and technology.

First is system innovation. We need to shift from management rules that were designed primarily for government efficiency to rules that prioritize convenience for the public. For instance, we should reduce or eliminate the number of required documents wherever possible, so that applicants only need to visit one department.

Second is business process innovation. The handling processes should move from a sequential approach where one step follows another to a parallel approach. For example, with items that involve various departments, tasks are responded to, linked, circulated and handled through the coordination of these departments. This will make things much more convenient for enterprises.

Third is technological innovation. Online government services should evolve from simple passive reception to diversified scenario services based on the needs of the public. To this end, we have promoted interconnectivity across regions, departments and administrative levels. By leveraging digital technology, we have created an accessible, smart and convenient online government service system, where the public can complete their tasks entirely online.

Our innovative reforms in three key areas have yielded significant results, as evidenced by the following data. For enterprise information changes, we reduced procedures from seven to one, eliminated the need for 13 documents, and cut approval time by six working days. For enterprise deregistration, we reduced the number of procedures from 10 to four. For ordinary deregistration, we cut processing time from a minimum of 70 days to just 46 days, including a statutory notice period of 45 days, which is unlikely to be shortened or skipped because the legitimate rights and interests of creditors and other stakeholders need protection. For opening catering businesses, we reduced processing time from 37 to 15 working days and eliminated 14 previously required documents. These improvements demonstrate that our reforms have streamlined administrative procedures for enterprises and individuals, cutting time and costs while optimizing the whole process. As a result, we are now more confident in better addressing public concerns by upholding the spirit of reform and implementing related measures.

Looking ahead, the SAMR will follow the unified arrangements of the State Council, continue to deepen reform in one-stop government services to achieve new outcomes and improve the quality and efficiency of government services to benefit both enterprises and individuals. Thank you.

Cover News:

The resolution adopted at the third plenary session of the 20th CPC Central Committee emphasizes the need to enhance the binding force of fair competition review and to take stronger action against monopolies and unfair competition. What work has been done by the SAMR in this regard? Thank you.

Pu Chun:

My colleague Mr. Zhou will answer this question. 

Zhou Zhigao:

Fair competition is the cornerstone of a market economy and provides important support for high-quality development. In recent years, the SAMR has focused on high-quality development as our top priority. We have consistently worked to regulate market competition, ensuring fair competition and maintaining market order. Our work has mainly been in three aspects:

First, we have deepened anti-monopoly regulation and enforcement in key areas. Over the past two years, we have carried out special anti-monopoly enforcement actions in sectors related to people's well-being, enhancing regulation and enforcement in the fields of medicine, building materials, automobiles, and utilities. Since 2022, we have investigated and dealt with 60 cases involving monopoly agreements and abuses of dominant market positions. These actions have resulted in forfeitures exceeding 2.5 billion yuan, contributing to a steady improvement in market competition order. Meanwhile, we deepened regular anti-monopoly regulation in the digital economy and other areas. We unconditionally approved 48 notifications of platform operator concentrations in accordance with the law. We have fully leveraged major cases as cautionary examples to encourage business operators to sign industry-specific self-discipline pacts, issued warnings against monopolistic practices as per the law, urged and guided enterprises involved in various cases to restructure and meet compliance requirements, aiming to continuously optimize order across multiple industries.

Second, we have made efforts to conduct anti-monopoly reviews of cases of operator concentration. Since 2022, we have investigated and closed more than 1,900 such cases, conditionally approved 10, including Simcere's acquisition of Tobishi and Wanhua Chemical's acquisition of Yantai Juli Fine Chemical, and legally lifted the restrictive conditions over the case of Marubeni Corporation buying the entire stake of Gavilon Holdings, boosting enterprises' vitality in investment and mergers. Meanwhile, we reviewed simple cases and other cases separately, authorized market regulation departments in Beijing and four other provincial-level regions to conduct anti-monopoly reviews of some simple cases of operator concentration, and launched online systems to review these cases, thus improving the quality and efficiency of case reviews.

Third, we have supported and guided operators to enhance anti-monopoly compliance. This April, the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council revised and issued anti-monopoly compliance guidance for operators, detailing specific monopoly-related compliance risks, and established an incentive system for anti-monopoly compliance. Meanwhile, we released anti-monopoly compliance guidance for operator concentration and hosted a series of lectures on anti-monopoly compliance, aiming to support and guide operators in enhancing compliance management. We are intensifying efforts to establish national standards for fair competition compliance management among operators. We aim to create a collaborative governance model combining voluntary enterprise compliance, effective government guidance, and widespread public support.

As you just mentioned, the third plenary session of the 20th CPC Central Committee laid out explicit requirements for intensifying anti-monopoly measures. Moving forward, the SAMR will continue to enhance and refine its supervision and enforcement of these measures. Our goal is to better maintain market order, address market failures and ensure an environment for fair competition that bolsters the internal driving forces and creativity of the whole of society. By championing fair competition, we aim to promote high-quality development yielding even more substantial outcomes. Thank you.

CCTV:

The third plenary session of the 20th CPC Central Committee emphasized there will be no irresolution about encouraging, supporting, and guiding non-public sector development. Self-employed individuals are a vital component of this sector. How can the SAMR further promote the development of these individuals and enable them to thrive and contribute more significantly? Thank you.

Pu Chun:

Thank you for your interest in and concern for this group. As of the end of this June, the country had 125 million individuals registered as self-employed, accounting for 66.9% of all business entities. This significant number highlights their active role in stabilizing employment, fostering development and delivering real benefits to the people.

As the supportive "parental home" to these businesses, the market regulatory body will fully leverage their close ties with them. In collaboration with relevant departments, we aim to boost their internal drive and innovative potential through adopting a combination of measures, boosting high-quality development.

Our commitment includes improving mechanisms and measures. Currently, we are conducting research and working out a regulation to promote development and standardize registration management of self-employed individuals. This regulation will specify key initiatives for market regulators to boost the development of these individuals, effectively guiding registration authorities at various levels. We aim to address pivotal challenges such as the transition from individuals to corporate entities, succession of management rights and market exit strategies, thereby facilitating sustainable growth for these businesses.

We will continue strengthening our efforts in promoting the implementation of policies. We are advancing precise and tiered support for individual businesses categorized into three development stages: subsistence, growth and advanced development. This approach provides tailored assistance measures that meet the unique needs of each stage. Additionally, initiatives to recognize and cultivate renowned, distinctive, high-quality or emerging individual businesses are underway, which are expected to set industrial benchmarks and elevate sector standards comprehensively. By the end of this year, we plan to consolidate categorized data to establish a comprehensive national directory of self-employed individuals, ensuring clarity and precision in support initiatives.

We will continue strengthening our efforts in innovating service measures. This September, the SAMR, together with 13 other departments, will host the third National Month of Service for Individual Business Owners, under the theme of "Categorized Assistance, Energizing Vitality, Serving Development." This event will include 11 activities focusing on six themes from promotional training to employment matchmaking, boosting consumer convenience and financial support tailored to ensure the policy implementation and elevate service standards. We have also established a nationwide network for the development of individual businesses, designed to align resources from local governments, industry associations, internet platforms and financial institutions and meet the needs of individual businesses in terms of policy consultation, processing operation permit and business license, financial and tax management, recruitment and employment, and skill training. This network aims to facilitate a supportive ecosystem offering comprehensive, market-oriented, regular services tailored to the nuanced needs of this vibrant sector.

21st Century Business Herald:

Quality infrastructure is referred to as "the foundation of the foundation" and is an important technological provision for promoting high-quality development. What work has been done by the SAMR to strengthen the construction of quality infrastructure? How about progress?

Pu Chun:

My colleague Mr. Liu will respond to these questions. 

Liu Sanjiang:

Building high-level quality infrastructure is an important arrangement made in The Outline for Improving the Overall Quality of China's Economy. Here, I would like to briefly introduce the progress that the administration of market regulation has made in building high-level quality infrastructure.

In terms of optimizing management, we have been committed to building an efficient and authoritative national quality infrastructure management system. We have optimized the dual structure of government standards and market standards by advancing the reform and innovation of the standardized management, with a focus on stimulating the vitality of the market to formulate standards independently. Data shows that the total number of social organization standards increased by 45.3% from 2022 to 2023. With regard to the reform on measurement systems, we have launched pilot reforms to diversify measurement instrument certification, improving the management mode of national measurement technical specifications and advancing the construction of a modern and advanced national measurement system. At the same time, we have improved the quality certification management system, deepened the market-oriented reform of inspection and testing institutions, and strengthened industry supervision. As of the end of 2023, there are over 34,000 qualified private inspection and testing institutions in China. Over the decade, the proportion of private inspection and testing institutions in the total number of institutions has doubled, accounting for 63.47% of the total number of institutions in the industry.

In terms of capacity building, China's internationally recognized calibration and measurement capabilities have reached 1,879, ranking among the top in the world. We have established 202 national measurement benchmarks and issued 2,056 national measurement technical specifications. At present, we have issued more than 45,000 national standards and built a new standard system with Chinese characteristics, realizing the full coverage of primary, secondary and tertiary industries and social undertakings. The conversion rate of international standards has surpassed 83%. Concerning certification and accreditation of inspection and testing, China has led the world in the number of authorized certificates and certified organizations for many years. There are 17,870 accredited conformity assessment bodies and more than 54,000 qualified inspection and testing institutions, with an annual revenue of over 470 billion yuan, accounting for about 25% of the world's total. China has become the most dynamic and efficient market in the world. In addition, we have organized and carried out more than 200 inspection and testing capability verification and interlaboratory comparisons in various fields every year, continuously verifying and improving the technical capabilities of inspection and testing institutions.

In terms of improving service efficiency, we have carried out a number of actions for quality infrastructure assistance, such as the program on providing measurement services for small and medium-sized enterprises, a special action on benchmarking and compliance, and the action on certification and enhancement of quality management system for micro and small businesses, so as to promote the continuous release of service efficiency for quality infrastructure in different fields and industries. Among them, the action on certification and enhancement of quality management system for micro and small businesses has provided 32 billion yuan of financial credit support, such as loans for certified micro and small businesses, and nearly 40 million yuan of certification fees have been reduced and exempted. In particular, the administration for market regulation has also been promoting the "one-stop" services of quality infrastructure and has established 1,450 service stations nationwide. A number of typical service models that can be replicated and promoted have emerged, which have played an important role in strengthening the competitiveness of micro and small businesses as well as promoting the high-quality development of regions and industries.

Next, we will continue to promote the upgrading of quality infrastructure and improve its efficiency, carry out monitoring and comprehensive evaluation of the operation of quality infrastructure, innovate the integrated and collaborative model of quality infrastructure and continue to enhance the development of "one-stop" services for quality infrastructure, so as to provide more solid and strong support on quality to promote high-quality development. Thank you.

Hongxing News:

The third plenary session of the 20th CPC Central Committee proposed to build a unified national market, which would require breaking up various secluded small markets and their internal circulation. What measures have been adopted by the administration for market regulation to break up local protectionism and market segmentation? Thank you.

Pu Chun:

My colleague, Mr. Zhou, will answer this question.

Zhou Zhigao:

Thank you for your question. Just as you mentioned, breaking up local protectionism and market segmentation is of great significance to accelerate the construction of a unified national market. In recent years, the administration for market regulation has addressed both the symptoms and root causes, and has attached equal importance to efforts in both establishing new systems and abolishing old ones, working resolutely to break various forms of local protectionism and market segmentation with positive progress being achieved.

First, we have improved the mechanisms for fair competition with higher standards and have consolidated the foundational rules of law for building a unified national market. Building a unified national market requires comprehensive and unified mechanisms for fair competition. In June 2022, China completed the first amendment to the Anti-Monopoly Law after 15 years since its introduction, establishing a foundational role for competition policies from the legal perspective. In January this year, the State Council revised and raised the declaration thresholds for concentration of undertakings, facilitating investment, mergers and acquisitions of enterprises. On Aug. 1, the Regulations for Fair Competition Reviews officially came into effect and put forward specific requirements with 19 prohibitions from four aspects, preventing the introduction of policies and measures that would exclude or impede competition. The formulation and revision of these laws and regulations has laid a solid institutional groundwork for eliminating local protectionism and speeding up the construction of a unified national market.

Second, we further enhanced supervision and law enforcement, regulating improper administrative interventions in market competition. Since 2022, we have focused on public utilities and other key fields and strengthened law enforcement to prevent and stop the abuse of administrative power that excludes and stifles competition. So far, we've investigated and resolved 122 cases of administrative monopolies. In addition, we began reviewing and abolishing policies and measures that hinder the development of a unified national market and fair competition. We've fully implemented a fair competition review system to ensure institutions serve as a rigid constraint. We addressed numerous improper actions that restricted trade, impeded the free flow of commodities and factors of production, or excluded and restricted non-local businesses, aiming to eradicate closed "small markets" and fragmented "minor cycles."

Third, we bolstered public support for fair competition, encouraging all stakeholders to safeguard and promote it. Since 2022, we have organized an annual publicity week for China's fair competition policies with the theme "Unified National Market, Fair Competition for the Future." We have published annual reports on anti-monopoly law enforcement and carried out publicity activities to introduce fair competition laws and policies to government organs, Party schools, and enterprises. We've also intensified publicity and training efforts, vigorously promoting a culture of fair competition. I'd like to inform all our media friends that this year's publicity week for fair competition policies will kick off in September, and we welcome your support.

The third plenary session of the 20th CPC Central Committee made important deployments on building a unified national market. It proposed that we enhance the binding force of fair competition review, and review and abolish regulations and practices that impede the development of a unified national market and fair competition. Moving forward, the SAMR will thoroughly implement the guiding principles of the session and enhance the intensity and effectiveness of regulating improper administrative interventions in market competition, aiming to create a fairer and more vigorous environment for all business entities. Thank you.

Xinhua News Agency:

A series of trade-in policies have been introduced since the beginning of this year. The SAMR, alongside six other departments, also rolled out specific measures to facilitate and encourage equipment upgrades and consumer goods trade-ins. Could you share the progress made on these efforts? Thank you.

Pu Chun:

Thanks for your question. To implement the Action Plan for Promoting Large-scale Equipment Renewals and Trade-ins of Consumer Goods released by the State Council, the SAMR and six other departments have issued specific measures to encourage equipment renewals and consumer goods trade-ins by enhancing standards. We aim to develop or revise 294 key national standards by the end of 2025, with 129 slated for completion in 2024 and 165 in 2025. Through the development and implementation of these standards, coupled with policy support, we will facilitate the renewal of equipment and consumer goods trade-ins.

Since the launch of the standards-upgrading campaign, the SAMR has closely coordinated with relevant departments of the State Council to establish detailed working records, optimize processes, schedule work regularly, and assess and report progress. This approach has connected all stages of standards setting and accelerated the formulation and implementation of standards. At present, all 294 key national standards have been approved, with 55 already released, encompassing energy consumption, energy efficiency, pollutant emissions, production safety, electric vehicles, household appliances, household goods, civilian drones and other fields, playing a key role in promoting equipment upgrades and trade-ins of consumer goods. For example, in terms of energy consumption and efficiency, we introduced mandatory energy efficiency standards for power transformers, chiller units, and small- and medium-sized cold storage facilities. We also introduced mandatory energy consumption quota standards for coal-to-olefin, coal-to-natural gas and coal-to-oil business, as well as refining and chemical industries. The implementation of these standards, supported by relevant policies, helps drive technological transformation and equipment upgrades in enterprises.

High standards are the cornerstone of high-quality development, just as a solid foundation is essential for skyscrapers. The SAMR will continue to thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. We will adapt to the requirements of high-quality development by accelerating the implementation of our standards improvement initiative, continuously enhancing the national standards system, optimizing the standard supply structure, and elevating the overall quality of standards. For key products affecting people's safety, we will expedite the formulation and revision of mandatory national standards, strengthen their implementation and application, enhance the guiding role of standards, and maximize standardization efficiency. Thank you.

Phoenix TV:

The 2024 government work report proposes resolutely investigating and dealing with the imposition of arbitrary charges, fines and quotas. What measures is the SAMR implementing to curb arbitrary charges on enterprises? Thank you.

Pu Chun:

I'll invite Mr. Wang Guowei to answer this question.

Wang Guowei:

Arbitrary charges on enterprises increase their costs and undermine the business environment. Even if it's an isolated occurrence, it can substantially erode businesses' confidence in the economic climate. This conduct is unacceptable, and we must implement a stringent zero-tolerance policy. To address this issue, the SAMR has implemented directives from the CPC Central Committee and the State Council, launching a special campaign against irregular charges affecting businesses. To identify and resolve problems to the greatest extent possible, we have focused on strengthening four key measures:

First, we are focusing on key fee-charging entities. Regarding behaviors involving providing services or selling goods to businesses and collecting fees, four types of entities are more likely to engage in improper charging. First, administrative bodies, as well as public institutions and social organizations authorized by laws and regulations to perform public affairs management functions. Second, social organizations and public institutions entrusted by the government to undertake tasks and provide services that fulfill official responsibilities. Third, industry associations and chambers of commerce with significant industry influence. Fourth, business entities with advantageous positions in specific fields and market transactions. We will pay particular attention to and conduct thorough inspections of them.

Second, we are highlighting key industries. We'll focus on problems reported by government departments and affiliated units, industry associations, financial institutions, natural gas networks, and water supply companies, as well as issues raised by technology innovation and manufacturing enterprises. The aim is to help the real economy reduce external costs and increase internal momentum.

Third, we are investigating key illegal activities. In this campaign, we've investigated and dealt with relevant illegal practices in accordance with the law. These include unauthorized charges by administrative approval intermediaries, industry associations leveraging administrative power for improper fees, failure of administrative licensing departments and financial institutions to implement fee reduction policies, and natural gas networks and water supply companies not adhering to government pricing. This demonstrates our commitment to tackling the challenges faced by businesses.

Fourth, we are optimizing law enforcement inspection methods. To improve governance quality and effectiveness, this year, we organized cross-regional inspections in different locations and conducted key spot checks with national-level teams. We also implemented measures such as gathering business feedback and reviewing enforcement case files to ensure the timely detection and resolution of illegal activities.

The special rectification action has achieved positive results. Here are some figures: So far, a total of 44,800 units have been inspected, 1,253 cases have been filed, and 393 million yuan in unwarranted charges have been refunded.

Next, we will further smooth the channels for uncovering illegal and non-compliant activities, significantly improve our regulatory enforcement capabilities, and ensure the effective supervision and implementation of the Compliance Guidelines for the Charging Practices of Industry Associations and Chambers of Commerce. Additionally, we will also accelerate the introduction of the Measures for Handling Illegal and Non-compliant Charging Practices Involving Enterprises. By relying on the authority of the rule of law, we aim to systematically address the issue of arbitrary charges on enterprises, effectively reduce unreasonable costs and play a stronger protective role in the healthy development of enterprises. Thank you.

Yicai:

Regarding efforts to strengthen quality support and standard leadership, the SAMR is currently carrying out initiatives to strengthen quality in enterprises, across industrial chains and in counties. How is this work progressing? And what will the focus be in the next phase? Thank you.

Pu Chun:

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

Liu Sanjiang:

Thank you for your interest in the three key initiatives related to quality. Earlier this year, the SAMR deployed three key initiatives: strengthening quality in enterprises, across industrial chains and in counties. These initiatives aim to promote high-quality development across points, lines and sectors, and so far, the overall progress has been smooth. In terms of strengthening quality across industrial chains, we are primarily focusing on the quality improvement needs of key industrial chains such as integrated circuits, artificial intelligence, quantum information technologies and new energy vehicles. We have established 146 key tasks for breakthroughs, bringing together a large number of research institutions, top research universities and leading enterprises to collaborate on these challenges. This has strengthened quality support for key industrial chains, and we have achieved phased results. As for enhancing quality in enterprises and counties, work plans and indicator systems have been developed and are being gradually rolled out nationwide. Moving forward, we will focus on the following areas:

In terms of strengthening quality in enterprises, we will cultivate a group of leading enterprises that will contribute to building China into a "manufacturer of quality," thereby better leveraging quality to promote the growth and strengthening of enterprises. Specific measures include: formulating and issuing cultivation guidelines, establishing clear orientation guidance, and, while directing enterprises on "what to do," emphasizing guidance on "how to do it." We plan to organize an on-site experience exchange and promotion conference for leading enterprises to share their quality improvement experiences. We will guide various regions to base their actions on actual industrial development conditions, promote extensive exchanges of benchmark experiences in quality, and encourage more enterprises to learn from advanced examples and align with benchmarks. Our goal is to create a positive atmosphere for quality improvement through "comparing, learning, catching up, assisting and surpassing," thereby gathering strong momentum for building China into a manufacturer of quality.

In terms of strengthening quality in industry chains, we will continue to promote major landmark projects to better leverage the role of quality infrastructure in supporting the creation of complete industrial ecosystems and strengthening industrial chains. To address the weak links and urgent needs for core components, testing methods and other key technical standards essential for the development of key industries, we will accelerate the development of a batch of national standards and promote the establishment of a set of international standards. To address the issue of non-uniform measuring instruments in key industries, we will establish new methods for the transmission and traceability of measurement values and develop a batch of measurement technical specifications and measurement standard devices. To address the notable issues of missing testing methods and insufficient inspection capabilities for key products and important equipment, such as complete industrial robots and their core components, we will expedite the development of urgently needed inspection and testing methods. Regarding the imperfect certification and accreditation system for key industries, such as ultra-fast charging for electric vehicles, we will establish a set of quality evaluation and certification systems to help enhance the quality linkages of industrial and supply chains. Later this month, we will hold a national on-site experience exchange and promotion conference on strengthening quality in industrial chains in Guangzhou, which we welcome you all to attend.

In terms of building strong counties with quality, we will focus on cultivating a group of counties, districts and towns with strong qualities to better leverage quality in promoting sustainable urban development. This includes strengthening categorized development and construction guidance, and supporting various local quality innovation practices. We will establish a repository for counties (districts, towns) with strong qualities and enhance longitudinal monitoring and cross-comparison of quality conditions. We will hold experience exchange meetings for counties with strong qualities to share and promote cutting-edge experiences and distinctive practices, striving to create new regional advantages in quality development. That's all for my introduction, thank you.

Xing Huina:

The last question, please.

Economic Daily:

The third plenary session of the 20th CPC Central Committee proposed promoting the development of the platform economy and improving its routine regulation system. Could the SAMR share its thoughts on this?

Pu Chun:

I'll take this question. Now, internet platforms are integral to our work and daily lives. Ensuring their standardized and healthy continuous development is a widespread concern in society. The market supervision department attaches great importance to this field. From the strategic perspective of building new national competitive advantages, we emphasize both development and regulation. We actively support platform enterprises playing a crucial role in promoting innovation, increasing employment as well as international competition.

This year, we have organized six compliance promotion meetings for platform enterprises, focusing on areas such as regulating the "618" promotion activities and ensuring the safety of electric bicycles. We've established a routine communication mechanism with platform enterprises. We reinforced the responsibility of platform enterprises through compliance management and consistently conducted online market supervision actions to foster development and ensure safety, especially issuing compliance reminders during critical periods to maintain a regulated and orderly market environment within the platform economy. This helps secure a foundation for the high-quality growth of various business entities.

In terms of standardization, we've guided the release of the Big Data Standardization White Paper (2023 Edition), introduced 35 national standards that are critical to the flow of data and 22 national standards for e-commerce quality supervision. We have continued to formulate and improve the standards for e-commerce, cross-border e-commerce and other key areas. We have advanced standards related to e-commerce quality traceability and development evaluation. As the secretariat of the ISO Technical Committee on Transaction Assurance in E-commerce, we have actively engaged with international counterparts to build a global framework for e-commerce regulations. By promoting the integration and alignment of domestic and international e-commerce standards, we strived to facilitate the high-quality development of the platform economy.

Moreover, we have been building and enhancing the quality certification system in the field of data, intensifying our certification efforts in areas such as mobile internet applications, data security management and personal information protection, with over 300 certificates issued. We have promoted a comprehensive, multi-level mechanism for accrediting applications in quality certification, continuously enhancing the system's effectiveness and credibility, as well as bolstering data security awareness and personal information protection capabilities among platform enterprises.

In terms of regulatory measures, we have improved the smart regulatory rules in the field of market supervision and have initially formed a smart regulatory system and model that enables timely perception, rapid response, systematic supervision, proactive service and integrated governance. We are accelerating the development of the national online transaction supervision platform, enhancing our ability to provide early warnings and emergency response to major risks in the platform economy sector, and thus ensuring its healthy development.

That's all for my briefing. Thank you.

Xing Huina:

That concludes today's press conference. Thank you to our speakers and all the reporters for participating. Goodbye!

Translated and edited by Xu Xiaoxian, Wang Yiming, Wang Qian, Liu Jianing, Ma Yujia, Guo Yiming, Liu Sitong, Xu Kailin, Lin Liyao, Yuan Fang, Yan Xiaoqing, Liu Qiang, Wang Yanfang, Huang Shan, Zhou Jing, Liao Jiaxin, Li Huiru, Zhang Rui, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Ms. Li Yongjie, deputy China international trade representative (vice-ministerial rank) of the Ministry of Commerce (MOFCOM)

Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM

Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM

Mr. Zhu Bing, director general of the Department of Foreign Investment Administration of MOFCOM

Chairperson:

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

Date:

Aug. 2, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Ms. Li Yongjie, deputy China international trade representative (vice-ministerial rank) of the Ministry of Commerce (MOFCOM), to brief you on relevant developments and to take your questions. Also present today are Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM; Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM; and Mr. Zhu Bing, director general of the Department of Foreign Investment Administration of MOFCOM. 

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

Li Yongjie:

Ladies and gentlemen, good morning. I'd like to express my gratitude to you for your interest in and support for the commerce-related work. It's a pleasure to meet you here and speak with you on the high-quality development of commerce. 

The report to the 20th National Congress of the Communist Party of China (CPC) points out that "to build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development." MOFCOM has firmly implemented the decisions and deployments of the CPC Central Committee, fully and faithfully applied the new development philosophy on all fronts, and promoted the high-quality development of commerce. Our efforts have contributed to creating a new development pattern and advancing Chinese modernization through the development of commerce. This is mainly reflected in four aspects:

First, new progress has been secured in consumer spending. We have focused on enhancing the fundamental role of consumption in promoting economic development. During this process, we have introduced consumer goods trade-in programs and policies to boost automobile and home furnishing consumption, as well as to promote high-quality development of the catering industry. We have also launched the "Consumption Boosting Year" and "Consumption Promotion Year" series of activities. Additionally, improvement of urban and rural distribution facilities has been advanced. In 2023, the total retail sales of consumer goods reached 47.1 trillion yuan (about $6.6 trillion), setting a new record.

Second, foreign trade has gained new momentum. We have worked to stabilize the volume of foreign trade and improve its structure, rolled out the "1+N" policy package, and implemented a series of polices and measures aimed at promoting trade and assisting enterprises. Major events such as the China International Import Expo (CIIE), Canton Fair, China International Fair for Trade in Services, and Global Digital Trade Expo were successfully held. We have promoted the innovative development of trade in services and implemented a negative list for cross-border trade in services. In 2023, China maintained its position as the world's largest trader, securing rapid advancements in new growth drivers such as the "new trio" (electric vehicles, lithium-ion batteries and photovoltaic products) and cross-border e-commerce.

Third, new strides have been made in utilizing foreign investment. We have intensified efforts to attract and utilize foreign investment by introducing policies to refine the foreign investment environment and step-up efforts to attract more investment. We have actively cultivated the "Invest in China" brand and upgraded the foreign enterprise roundtables system. Moreover, we have proactively aligned with high-standard international economic and trade rules and piloted such alignment in free trade zones and ports, to develop new pacesetters for opening up.

Fourth, new breakthroughs have been achieved in international economic and trade cooperation. We have focused on promoting high-quality cooperation under the Belt and Road Initiative (BRI), and successfully hosted the Thematic Forum on Trade Connectivity of the Third Belt and Road Forum for International Cooperation. At the thematic forum, a series of economic and trade cooperation outcomes were achieved and the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development was launched. China has involved itself fully in the reform of the World Trade Organization (WTO) and facilitated practical outcomes at the 13th WTO Ministerial Conference. We have promoted the entry into full effect of the Regional Comprehensive Economic Partnership (RCEP), worked toward joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), and actively engaged in free trade agreement negotiations.

This year, business operations have been steady while making progress. New achievements have been made in high-quality development, contributing to national economic growth.

Consumption has maintained steady growth, with total retail sales of consumer goods reaching 23.6 trillion yuan in the first half of the year, up by 3.7%. The consumer goods trade-in policies are gradually taking effect, with over 450,000 applications for car scrapping and renewal subsidies submitted nationwide as of 9 a.m. today. The retail sales of new energy passenger vehicles grew by 33.1% in the first half of the year. Services consumption grew rapidly, with retail sales of services and catering revenue increasing by 7.5% and 7.9%, respectively, in the first half of the year. 

The volume of foreign trade has steadily increased and its quality has improved. In the first half of the year, imports and exports of goods totaled 21.2 trillion yuan, an increase of 6.1%; and imports and exports of services reached 3.6 trillion yuan, up by 14%. The contribution of goods and services imports and exports to economic growth reached 13.9%. The cultivation of new foreign trade growth drivers has accelerated, with cross-border e-commerce exports maintaining rapid growth and exports of competitive products such as ships and vehicles growing quickly in the first half of the year. According to a survey of 16,000 key foreign trade and foreign-invested enterprises conducted by MOFCOM, over 70% of enterprises expect export growth this year.

The "Invest in China" brand has become more attractive. A total of 17 major "Invest in China" events have been organized, widely promoting investment opportunities in China, and 12 foreign enterprises roundtables have been held. It has continuously become easier for foreign nationals to live and work in China. As the business environment has constantly been improved, 27,000 new foreign-invested enterprises were established in China in the first half of this year, with utilized foreign investment reaching 498.9 billion yuan. The structure of foreign investment attracted has been continuously refined, with the proportion of investment in high-tech manufacturing increasing by 2.4 percentage points compared to the same period last year.

Foreign investment and cooperation have grown rapidly. In the first half of the year, non-financial outbound direct investment reached 516 billion yuan, an increase of 19.5%. The turnover of overseas contracted projects amounted to 513.3 billion yuan, up by 4.7%.

The recently concluded third plenary session of the 20th CPC Central Committee made systematic plans for further deepening reform comprehensively. MOFCOM will thoroughly study and implement the guiding principles of the session, promote the establishment of a unified national market, and steadily expand institutional opening up. We will also deepen the foreign trade structural reform, further reform the management systems for inward and outward investment, improve planning for regional opening up, and refine the mechanisms for high-quality cooperation under the BRI. Through these efforts, we aim to make substantial achievements in commerce reform and development, thus making new contributions to advancing Chinese modernization.

Next, my colleagues and I are happy to answer your questions. Thank you.

Xing Huina:

The floor is now open to questions. Please identify your news agency before asking your questions.

Beijing Youth Daily:

Recently released data shows China's total import and export value of goods exceeded 21 trillion yuan in the first half of the year, up 6.1% year on year. This scale set a new record for the same period. How does MOFCOM view foreign trade performance in the first half of the year, and what are its evaluations and views on future foreign trade trends? Thank you.

Li Yongjie:

Thank you for your question. In the first half of this year, foreign trade operations have shown steady progress. Our goods trade has demonstrated strong resilience and market vitality, characterized by increased volume, improved quality and a stable market share.

From a quantity perspective, we've maintained scale. Here are some numbers: First, in the first half of the year, the total import and export value of goods reached 21.2 trillion yuan, a record high for the same period, up 6.1% year on year. The daily average import and export value was 116.31 billion yuan, which is over 40% higher than in the same period in 2019. Net export of goods and services contributed 0.7 percentage point to GDP growth. Second, export and import quantities increased by 12.7% and 3.1%, respectively, indicating active cross-border movement of goods. Foreign trade cargo throughput at national ports rose 8.8% in the first half of the year. Third, the number of foreign trade entities involved in exports and imports increased to 586,000, up 8.7% year on year, adding 47,000 entities, further boosting corporate vitality.

From the perspective of quality, the structure continues to be optimized. First, trade cooperation with emerging markets has deepened, with the proportion of our imports and exports with these markets rising to 64.9%. At the 135th Canton Fair, buyer attendance from Belt and Road partner countries increased by 25%, and transactions were also very active. Second, the export products have been continuously improved, with electromechanical products now comprising 58.9% of exports. High-tech and high-value-added products maintained rapid growth, with automobile and ship exports increasing by 22.2% and 91.1%, respectively. Electronic information products steadily recovered, with exports of integrated circuits and household appliances growing by 25.6% and 18.3%, respectively. Third, new drivers of foreign trade show positive progress. According to preliminary estimates by the General Administration of Customs, cross-border e-commerce imports and exports reached 1.22 trillion yuan in the first half of the year, up 10.5%, involving over 120,000 business entities. We actively pursued international cooperation on trade digitalization and sustainability. We've reached agreements on the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development with 39 countries. The market for green and low-carbon products is vast, with new energy vehicles exported to over 170 countries and regions. Fourth, the international market share remained stable with some growth. In the first quarter, the export international market share was 13.6%, a 0.2 percentage point increase year on year. China continued to maintain its position as the world's largest goods trading nation. Preliminary estimates indicate that the share stabilized at around 14% in the first half of the year.

Currently, the external environment's complexity and severity are increasing. We must fully recognize the serious difficulties and challenges in foreign trade. Several international organizations report that the global trade in goods has shown a moderate recovery since early this year. However, geopolitical tensions, increasing trade restrictions and intensified national industrial policy competition may have significant negative impacts. The WTO's latest monitoring shows a significant increase in members' import restrictions. Measures taking effect in 2024 are expected to affect $2.3 trillion worth of imports, 9.7% of global imports — the highest level since 2020.

Maintaining stable growth in both the quality and volume of foreign trade this year will require continued efforts in the second half. We will make good use of various multilateral and bilateral mechanisms to help businesses counter unreasonable trade restrictions, support enterprises in exploring international markets through platforms like the Canton Fair, and work to create a stable and predictable trade policy environment. Additionally, we will intensify efforts to cultivate new drivers of foreign trade and enhance the overall competitiveness of foreign trade. At the same time, we will continue to deepen mutually beneficial cooperation with trade partners to jointly maintain the stability and smooth operation of global industrial and supply chains. Thank you.

National Business Daily:

In the first half of this year, China's cross-border e-commerce maintained steady growth and exhibited positive development momentum. What measures will the MOFCOM implement to further promote the development of cross-border e-commerce?

Li Yongjie:

I will invite Mr. Li to answer this question.

Li Xingqian:

Thank you for your interest in cross-border e-commerce development. In the first half of the year, China's cross-border e-commerce imports and exports maintained stable growth. The growth rate reached 10.5%, 4.4 percentage points higher than overall national foreign trade growth. From a market perspective, our trade with countries like France, Belgium, Spain and Malaysia has grown rapidly. Consumer goods are the main export products, and some high-value-added products show strong growth momentum. For example, exports of office equipment increased by 50.7%, and camera exports grew by 30.7%. Imported goods from overseas are popular among domestic consumers, with food imports increasing by 22.8%, luggage imports growing by 70.8% and wine imports rising by 55.4%. Geographically, coastal regions such as Guangdong and Zhejiang are the main drivers of cross-border e-commerce trade, accounting for nearly 90% of the national total. According to a recent survey we conducted, nearly 80% of cross-border e-commerce enterprises are optimistic about growth prospects in the second half of the year.

Next, we will implement the plans from the third plenary session of the 20th CPC Central Committee, continue to adhere to the principle of encouraging innovation and conducting regulation in a tolerant and prudent way, and focus on doing a good job in two aspects:

On the one hand, we will optimize the service ecology. We will implement special policies for cross-border e-commerce, support the development of cross-border e-commerce to empower industrial belts as well as guide local governments to cultivate a number of development models. We will promote through on-site meetings between comprehensive pilot zones the exchange of experience with cross-border e-commerce. We will support the cultivation of cross-border e-commerce brands. At the same time, we will also give full play to the role of local industry organizations, improve the level of industry self-regulation as well as guide cross-border e-commerce companies to operate within compliance, to compete in an orderly manner and to actively fulfill their social responsibilities. In the second half of the year, we will also hold the 136th Canton Fair, which is also known as the "Autumn Fair." At the Canton Fair, we will continue to set up a special exhibition area for cross-border e-commerce. We will encourage Chinese logistics companies to strengthen international cooperation with host country's courier delivery companies, especially to increase efforts to enhance the "last kilometer" performance of cross-border e-commerce companies.

On the other hand, we will deepen international cooperation, actively participate in international multilateral and bilateral negotiation as well as take advantage of the bilateral joint economic and trade committees and standing working groups on promoting trade cooperation as communication mechanisms to promote the experiences, practices and achievements of our cross-border e-commerce development. We should vigorously develop "Silk Road e-commerce" and support comprehensive pilot zones for cross-border e-commerce. Industries and enterprises at all levels need to actively carry out international exchanges and cooperation. We encourage cross-border e-commerce platforms to expand their categories and service functions of goods, and support the healthy development of e-commerce platforms of consumer goods mainly for C-end, as well as the innovative development of e-commerce platforms for industrial equipment, semi-finished products and parts mainly for B-end. Thank you.

Tianjin Haihe Media Group:

The third plenary session of the 20th CPC Central Committee proposed to implement a strategy for upgrading pilot free trade zones and encouraged these zones to engage in pioneering and integrated explorations. How have the free trade pilot zones progressed this year? What explorations will be carried out in the next step? Thank you.

Li Yongjie:

I'll ask Mr. Zhu to answer your questions.

Zhu Bing:

"Implement the strategy for upgrading pilot free trade zones and encourage these zones to engage in pioneering and integrated explorations" -- we interpret "upgrading" and "exploration" here as further improving the construction quality of pilot free trade zones on the basis of the construction achievements of the past ten years, strengthening the function of the comprehensive experimental platform for reform and opening up, giving better play to the pioneering spirit of community-level organizations, paying more attention to the system integration of reform, and daring to brave uncharted waters and solve difficult problems, so as to accumulate new experience for comprehensively deepening reform and opening up. In September of last year, General Secretary Xi Jinping issued important instructions on deepening the construction of the pilot free trade zones (FTZs). The MOFCOM has carefully studied and implemented the important instructions of General Secretary Xi Jinping, accelerated the implementation of strategies to upgrade FTZs and has made progress in four aspects:

First, the pilot alignments have been promoted across the board. The pilot measures for the first batch of qualified FTZs and free trade ports (FTPs) to align with high-standard international economic and trade rules that promote institutional opening up have been fully implemented, and the overall plan for the Shanghai Pilot Free Trade Zone to fully dovetail with high-standard international economic and trade rules is also being accelerated. A number of projects and demonstration cases have been formed for importing remanufactured products in key industries and for supporting overseas personnel to provide professional services.

Second, the opening up of services has been steadily expanded. We have issued and implemented a negative list of cross-border trade in services in the FTZs, and have cooperated with the Ministry of Industry and Information Technology to expand foreign investment access in the telecommunications sector within the Shanghai Pilot FTZ and other regions, continuously improving the opening up of the service sector.

Third, breakthroughs have been made in key areas. We have worked with the Cyberspace Administration of China and other departments to support pilot free trade zones in formulating a negative list for cross-border data flows under the framework of the national data classification and hierarchical protection system. Currently, pilot FTZs in Tianjin, Shanghai and other areas are actively promoting relevant explorations.

Fourth, the benefits of innovation have been continuously released. We have released and promoted 47 institutional achievements with innovation as well as have promoted 349 items at the national level, effectively utilizing the demonstration and leading role of the comprehensive experimental platform for reform and opening up. In the first half of 2024, the actual use of foreign capital in the 22 pilot FTZs reached 103.96 billion yuan, and the total value of imports and exports reached 4.1 trillion yuan. Covering less than 0.4% of China's total land area, the 22 pilot FTZs attracted 20.8% of the country's total foreign investments and contributed 19.5% to national imports and exports.

Next, the MOFCOM will implement the guiding principles of the third plenary session of the 20th CPC Central Committee, promote pilot FTZs to carry out preliminary trials and to integrate exploration in a wider and deeper range of areas, and contribute to further deepening reform comprehensively as well as advancing Chinese modernization.

First, we will strengthen overall planning and system integration, enhancing the function of the comprehensive experimental platform for reform and opening up. We will further develop reform in a systematic, holistic and coordinated way by focusing on in-depth implementation strategies for the upgrading of pilot FTZs. At present, we are studying and formulating a comprehensive document on implementation strategies for the upgrading of pilot FTZs. We will launch a number of leading and integrated reform measures to explore more successful experiences that can be replicated and promoted for deepening reform comprehensively.

Second, we will deepen alignment with international high-standard economic and trade rules, raising the level of institutional opening up. In terms of aligning with rules, we will ensure the successful implementation, evaluation and replication of pilot projects in FTZs that seek to align with international high-standard economic and trade rules, aiming to help release policy dividends on a larger scale. At the same time, we will strengthen forward-looking research on these rules and conduct new pilot tests in areas such as property rights protection, the environment, government procurement, e-commerce and finance to achieve compatibility in rules, regulations, management and standards. Regarding the opening up of key areas, we will conduct in-depth research on further expanding the opening up of commodity, service and capital markets by relying on FTZs. We will use the two negative lists for foreign investment access and cross-border service trade as essential tools to expedite the opening up of relevant service sectors.

Third, we will strengthen integrated innovation across the entire industry chain, enhancing the development momentum of new quality productive forces. We will support FTZs to further deepen differentiated exploration, fully leveraging their advantages of a sound industrial foundation, high-level aggregation and strong innovation capabilities. We will promote innovative development throughout the entire industry chain by focusing on key areas such as bulk commodities, biomedicine, equipment manufacturing and the marine economy. We aim to achieve more institutionalized innovative outcomes in developing new quality productive forces.

That's all from me, thanks.

International Business Daily:

What new progress has China made in building a high-standard global free trade zone network in recent years? The third plenary session of the 20th CPC Central Committee proposed improving systems and mechanisms for high-level opening up and proactively aligning with international high-standard economic and trade rules. What steps will MOFCOM take next to further expand high-level opening up? Thank you.

Li Yongjie:

Promoting the construction of a high-standard global free trade zone network is an important task for MOFCOM. In recent years, following the instructions of the CPC Central Committee and the State Council, we have actively advanced relevant work and made good progress. So far, we have signed 22 free trade agreements with 29 countries and regions, and trade volumes with our free trade partners account for about one-third of China's total foreign trade volume. Our free trade partners are spread across Asia, Latin America, Africa, Europe and Oceania. In the first half of this year, we implemented three free trade agreements with Nicaragua, Ecuador and Serbia, signed an early harvest arrangement for the free trade agreement with Honduras, completed substantive negotiations on upgrading the free trade agreement with Peru, and officially started free trade agreement negotiations with El Salvador and negative list negotiations with New Zealand. The content of our free trade agreements is also continuously being enriched. For example, new contents, such as cooperation on standards and the digitization of trade documents, are gradually being included in the free trade agreements being signed or negotiated.

At the same time, free trade agreements have further helped to enhance the bilateral trade and investment. For example, since the China-Nicaragua free trade agreement took effect this year, the two countries have seen their bilateral trade volume rise 56% year on year in just half a year. Another example is the Regional Comprehensive Economic Partnership (RCEP). China's non-financial direct investment in other RCEP member countries reached $9.53 billion in the January–May period of this year, a 28% year-on-year increase.

Next, MOFCOM will resolutely implement the relevant arrangements and requirements of the third plenary session of the 20th CPC Central Committee and further expand the high-standard global free trade zone network.

First, we will expand its scope. We will continue to follow the CPTPP's accession procedures, further conduct bilateral consultations based on previous exchanges with all members, and advance the accession process. We will strive to conclude negotiations as soon as possible on version 3.0 of the China-ASEAN Free Trade Area, on free trade agreements with Honduras and El Salvador, and on upgrading free trade agreements with New Zealand and others. We will vigorously promote the China-Japan-South Korea FTA talks, as well as free trade cooperation with the Gulf Cooperation Council, Norway, Switzerland, Bangladesh and other countries and regions. We will expand our network of free trade agreements with receptive countries and regions, aiming to boost our trade volume with free trade partners to 40% of the county's total foreign trade by 2030.

Second, we will improve its quality. We will further open up trade in goods in newly signed free trade agreements, promote more products to be included in the zero-tariff list, advance negotiations on service trade and investment through negative lists, and further open up key areas such as telecommunications, healthcare and tourism. We will also actively incorporate into future free trade agreements high-level economic and trade rules in areas such as the digital economy, green economy, intellectual property and standards certification. We seek to build a new development pattern through high-level opening up and achieve mutual benefit and win-win outcomes with our free trade partners.

Third, we will increase its efficiency. We will continue to ensure high-quality implementation of all the signed free trade agreements such as the RCEP, further enhancing their utilization. We will actively launch promotional events and training to help enterprises fully leverage the preferential policies of these agreements. Such efforts aim to further promote the flow of goods, services and investments, allowing the agreements to benefit people on both sides better. Additionally, through the dividends of free trade cooperation, we aim to strengthen the cooperative ties between China and our free trade partners.

Fourth, we will promote reforms. We will further collaborate with relevant departments to actively align with high-standard economic and trade rules at the international level and in accordance with the requirements of the third plenary session of the Central Committee of the CPC, further advancing reforms in areas such as property rights protection, industrial subsidies, environmental protection, labor protection, government procurement, e-commerce and finance. At the same time, we will intensify efforts in pilot projects and promptly summarize and promote successful experiences. All these efforts aim to boost the integration and compatibility of rules, regulations, management and standards, as well as achieve a favorable situation where high-standard opening up and deep reforms can mutually support and reinforce each other. Thank you.

Cover News:

In March of this year, the MOFCOM and relevant departments jointly issued an action plan to promote consumer goods trade-ins. What results have been achieved? What further measures will be introduced in order to favor consumers with more tangible benefits? Thank you.

Li Yongjie:

Thank you for your questions. I'll invite Mr. Xu Xingfeng to answer them.

Xu Xingfeng:

First of all, thank you for your attention to consumer goods trade-ins. To promote this initiative is the decision and arrangement made by the Party Central Committee and the State Council with a focus on overall high-quality development. The MOFCOM and relevant departments have thoroughly implemented this initiative by introducing action plans and detailed rules for application of subsidies and have established an effective mechanism based on full respect for consumers' willingness, empowering them with convenience and motivation. In terms of vehicles, we have coordinated various parties and rolled out a combination of policies and measures focusing on the entire industrial chain encompassing the purchasing, driving, selling and scrapping of cars. In terms of home appliances, décor and kitchen and bathroom products, we have adopted measures to optimize recycling, making consumption more convenient, recycling more standardized and the circumstances more eco-friendly.

The journalist is interested in the results of our efforts, which can be demonstrated in two aspects. First is consumers' wide recognition. A recent survey conducted by relevant departments in over ten provinces and cities showed that more than 80% of consumers were aware of this policy and over 70% were willing to participate in it. The results are reflected in social recognition. Second is data. As the specific data just reported by Ms. Li Yongjie presents, by 9 a.m. today, we have received over 450,000 applications for vehicle scrapping and trade-in subsidies, showcasing robust growth. In the first half of this year, the recycling of scrapped vehicles increased by 27.6% year on year, and new energy passenger vehicles' retail sales have increased by 33.1%. In terms of home appliances, the retail sales of units above designated size increased by 3.1% year on year in the first half of the year, which was 2.1 percentage points higher than the same period last year. In terms of home décor and kitchen and bathroom products, the yearly growth of retail sales of furniture at units above designated size was 2.6%, indicating that the effects of the policy have been gradually emerging.

Recently, in accordance with the arrangements of the State Council, the National Development and Reform Commission and the Ministry of Finance have rolled out several measures to boost large-scale equipment renewals and consumer goods trade-ins. The efforts are ramped up with 150 billion yuan in ultra-long special treasury bonds to support different localities to make their own decisions and carry out consumer goods trade-ins. The subsidy standards are increased from 10,000 yuan for purchasing a new energy passenger vehicle and 7,000 yuan for purchasing a fuel passenger vehicle to 20,000 yuan and 15,000 yuan, respectively. 

In terms of home appliances, we offer subsidies for eight categories, including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household cookers and kitchen exhaust hoods. There are more detailed measures regarding home decoration and kitchen and bathroom products, providing support for old house renovation, kitchen and bathroom renovation, elder-friendly home modification and smart home solution consumption. We also support trade-ins of electronic bicycles, which is an addition. 

The journalist just asked about our plan to favor consumers with tangible benefits and further manifest the effects of the policy, which can be summarized into four keywords:

The first keyword is continuity. We have made adjustments with supportive policies by increasing the level of support and expanding the scope to cover more categories, and we should ensure continuity between previous and following policies. We will collaborate with relevant departments to promptly issue notices on further enhancing trade-ins of vehicles and home appliances, and introduce guidelines for upgrading home decoration and kitchen and bathroom products as well as implementation plans for trade-ins of electronic bicycles. The vehicle trade-in policy will also cover past cases. Those who previously received a subsidy of 10,000 yuan will be compensated an additional subsidy to match the new standard of 20,000 yuan, ensuring that early consumers do not suffer losses, which also reflects policy continuity.

The second keyword is guidance. We will encourage local governments to make their own decisions and improve their capabilities regarding trade-ins, guide them to improve supporting measures timely, and organize and implement the work effectively. We will further optimize subsidy review and fund allocations, speed up the review process, and improve service quality, to smooth the "last mile" of subsidy application and minimize the time for consumers from submitting applications to receiving subsidy funds. We will also implement measures such as facilitating sales of used cars, online cancellation of automobile registration and reverse invoicing of renewable resource recycling enterprises. These are supportive measures for promoting trade-ins, with the aim to ensure a smooth "venous circulation" in the trade-in process by continuously improving the renewable resource recycling system and making it more convenient for consumers to dispose of waste materials.

Third, publicity and promotion. To make this policy better known among the people, we hope journalists can pay more attention and be more supportive, using popular and easy to understand ways to step up this publicity and promotion at communities, enterprises, platforms, institutions and expos in order to increase the public's awareness. Moreover, we plan to step up publicity and promotion by providing trade-ins at various activities, including distinctive brand events of different regions and major expos for different industries, as well as organizing supply-demand matching activities. We will promote intelligently connected vehicles and smart home devices among other products highlighting quality and value for money to satisfy consumers' demand for trade-ins. 

Fourth, supervision and guidance. We will enhance follow-up efforts to evaluate the effectiveness of this policy by organizing comprehensive inspection for consumer product trade-ins, offering guidance for different localities and making better use of fiscal funds. The public has concerns over such trade-ins. They worry about false publicity, false price reduction and the selling of fake and low-quality products only to swindle subsidies. In view of this, we will smooth channels for filing complaints and lawfully crack down on these misconducts to create a favorable business environment. And we welcome media supervision. Let's work together to deliver good results. 

That's all I have to share. Thank you.

Phoenix TV:

My question is about consumption. This year, China launches a year-long program to stimulate consumption, and the MOC has organized and carried out a series of consumption promotion activities across the country, what measures will be taken next to spur the steady growth of consumption? Thank you.

Xu Xingfeng:

I appreciate your interest in this issue. Since the beginning of the year, the MOC has earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, boosting consumption by implementing policies and hosting activities. We have carried out a series of innovative activities to mark this year of consumption promotion, achieving remarkable results. According to Ms. Li's briefing, in the first half of the year, retail sales of consumer goods totaled 23.6 trillion yuan, up 3.7% year on year. The highlights of consumption in the first half of the year can be summarized by four terms: 

First, "steady" growth in bulk consumption. In the first half of this year, passenger car sales grew 3.3% year on year. New energy passenger vehicle retail sales grew 33.1% and accounted for 41.8% of all retail sales for passenger cars. Home appliance and furniture retail sales of businesses above designated size grew 3.1% and 2.6%, respectively, year on year. 

Second, "rapid" growth in service consumption. In the first half of this year, the retail sales of services grew 7.5% year on year, 4.3 percentage points higher than the growth rate of retail sales of goods. 

Third, "vitality" in new types of consumption. For example, in the first half of this year, online retail sales grew 9.8% year on year. The online retail sales of physical goods grew 8.8%. Online retail accounted for 25.3% of total retail sales. 

Fourth, "new" momentum in rural consumption. In the first half of this year, retail sales in rural areas reached 3.14 trillion yuan, up 4.5% year on year, 0.9 percentage point higher than the growth rate in urban areas. Per capita consumption expenditure of rural residents increased 7.6%, with the growth rate 1.5 percentage points higher than that of urban residents. 

The third plenary session of the 20th CPC Central Committee made arrangements for consumption related work. More recently, a meeting of the Political Bureau of the CPC Central Committee emphasized the expansion of domestic demands with the focus on boosting consumption. The economic policies will be more focused on improving wellbeing and promoting consumption. We will thoroughly implement the decisions and arrangements of the CPC Central Committee, upholding the three important roles of commerce related work (an important part of the domestic economic flow, an important link connecting domestic and international economic flow, and an important factor for the new development paradigm), and continuing to boost consumption. We will focus on five aspects in the second half of this year:

First, to make this year's consumption promotion activities great successes, providing the opportunity to enjoy a better life. With the aim to meet people's demand and address people's concerns, we will plan and launch serial high-quality activities. The campaign will have four features. Firstly, we plan to create four waves of consumption: one at back-to-school season, one at harvest season, one at ice and snow season, and one at family reunion season. Secondly, we insist on providing benefits for all. We will host lifestyle fairs to offer convenience to people within a 15-minute radius within urban areas, spur agricultural development through e-commerce and let urban and rural residents enjoy the harvest together. Thirdly, we will focus on intelligently networked vehicles and smart home devices as well as trendy domestic brands, driving up the volume of consumption of quality products by promoting both long-standing and newly established brands as additional growth points. Fourthly, we plan to promote consumption with different themes, such as hometown flavors, beautiful elderly life, scaling the heights and enjoying autumn scenery, fun with ice and snow and a celebration of the new year. We will provide diverse and quality products, including scenic views and gourmet food, for consumers to savor a beautiful life. 

Second, to step up efforts to promote consumer good trade-ins with the aim to stabilize bulk consumption. We have already given a briefing on this. Now, I'd like to stress that we will do a good job in hosting supply and demand matching activities, boosting unimpeded upstream and downstream industries in production, supply, and marketing. In addition, we will enhance policy alignment to truly and directly benefit the public. 

Third, to promote the high-quality development of service consumption and foster new drivers for consumption. Currently, consumers increasingly value pleasant experiences as well as mental and physical health. Boosting service consumption is an important measure to further expand and upgrade consumption. We will push the issuance of comprehensive documents to promote the high-quality development of service consumption, and wider openness in an orderly manner in the fields of telecommunications, internet, education, culture and medical care as well as encourage consumption in culture, tourism, elderly care, child care and housekeeping, with the aim to meet residents' demands for service consumption. 

Fourth, we will expand new types of consumption and nurture new consumption drivers. In the long run, we need to foster new areas of consumer spending. New technologies, industries and models have boosted emerging forms of consumption, such as digital, environmentally-friendly, and health-related consumption. These are new areas in the field of consumption. We will develop digital consumption further by implementing actions to boost it and holding promotional activities, such as "E-commerce Boosts Agriculture" initiative and "Silk Road Cloud Products" E-commerce Festival. We will continue to encourage the purchase of new energy vehicles, green intelligent home appliances, and green building materials in rural areas. Additionally, we will expand smart consumption and artificial intelligence-enhanced consumption scenarios, promoting smart devices such as intelligent home appliances, mobile phones and wearable devices. We will also promote health-related consumption and continue to carry out various activities to bring healthy consumption options into thousands of households.

The third plenary session of the 20th CPC Central Committee has outlined plans to actively promote the debut economy. We will accelerate implementation according to this arrangement, encouraging companies to release new products, open their first stores, and hold their first shows and exhibitions. We will continue to introduce new business forms, models, services and scenarios to meet consumer demand for fashion, quality and new trends.

The final point is to optimize consumption channels and promote consumption upgrading. We need to accelerate the development of international consumer center cities, pilot the reduction of restrictive measures on consumption in these cities, implement the debut economy, and improve cities' commercial capacity. We will continue to enhance the logistics system in rural areas and further unlock the consumption potential there. In short, urban and rural areas should interact with each other. That concludes my introduction. Thank you.

21st Century Business Herald:

Not long ago, MOFCOM announced data and information on China's use of foreign investment from January to June. This year, newly established foreign-invested enterprises in China have increased, while actual use of foreign capital has declined. How do you view the current situation of attracting foreign investment, and what tasks will you focus on next? Thank you.

Li Yongjie:

Let's invite Mr. Zhu to answer your questions. 

Zhu Bing:

Thank you for your attention to our efforts to attract and utilize foreign investment. As Ms. Li announced in her opening remarks, the actual amount of foreign capital utilized in the first half of this year was close to 500 billion yuan, maintaining a relatively high level compared to the past decade. Frankly speaking, the scale of foreign investment has experienced a year-on-year decline, primarily attributed to the exceptionally high base in the same period last year.

From a structural perspective, the composition of foreign investment has been continuously optimized. The proportion of actual foreign investment in China's high-tech manufacturing industry increased by 2.4 percentage points compared to the same period last year. Similarly, the proportion of foreign investment in the overall manufacturing industry also rose by 2.4 percentage points compared with the same period last year. These two instances indicate that the structure is being optimized and that foreign investors are actively adjusting their investment layouts across various industrial sectors. This trend aligns with China's broader initiatives to accelerate the development of new quality productive forces and advance new industrialization.

The underlying trend of China's economic recovery and long-term growth remains unchanged. China's comprehensive advantages — including its ultra-large-scale market, supply of high-quality industrial systems, and availability of high-end talent — continue to attract foreign investment. Most multinational companies are optimistic about long-term investment prospects in China, so they continue to increase their investments. As mentioned, nearly 27,000 new foreign-invested enterprises were established in the first half of this year, a 14.2% year-on-year increase. This figure demonstrates continued activity and continues the trend of rapid growth in the number of foreign-invested enterprises that we've seen since last year.

The third plenary session of the 20th CPC Central Committee detailed a comprehensive plan for attracting and utilizing foreign investment. Next, we will deeply study and implement the guiding principles of the third plenary session. We will uphold the Party's overall leadership, adhere to a people-centered approach, uphold fundamental principles and break new ground, strengthen institution building as our main task, stay committed to law-based governance on all fronts, and apply systems thinking. We will increase efforts to attract and utilize foreign investment. Moreover, we will pursue high-standard opening up to advance in-depth reform and high-quality development. Specifically, this includes the following aspects:

First, we will steadily expand institutional opening up. As previously mentioned when discussing pilot free trade zones, these areas play an important role in foreign investment, accounting for 20.8% — a significant share. Therefore, the work of pilot free trade zones is also crucial to foreign investment efforts. We will align with high-standard economic and trade rules mainly through pilot free trade zones and free trade ports. This will help achieve interoperability of rules, regulations, management and standards in multiple fields. We aim to leverage the exemplary role of pilot free trade zones and the Hainan Free Trade Port, while promptly extending qualified pilot measures to free trade zones nationwide.

Second, we will further relax market access. We will expand the catalog of industries that encourage foreign investment and publish the 2024 version of the negative list for foreign investment access. We will implement measures proposed by General Secretary Xi Jinping to remove all restrictions on foreign investment access in the manufacturing sector, meaning restrictions on the manufacturing industry throughout the country should be eliminated. At the same time, in light of our own development needs, we will promote orderly opening up in areas such as telecommunications, the internet, education, culture and medical care. We will also revise the Measures for Strategic Investment by Foreign Investors in Listed Companies to encourage more high-quality foreign capital to enter our capital market for long-term investment.

Third, we will deepen the reform of mechanisms and systems to promote foreign investment. We will focus on building the "Invest in China" brand and enhancing the effectiveness of key investment expos, including the notable China International Fair for Investment and Trade (CIFIT) hosted in Xiamen, along with other landmark events. We will improve the system for assessing the effectiveness of efforts promoting foreign investment, support regions in innovating their investment attraction models, and focus on advantageous fields to elevate the precision of investment solicitation, thereby drawing in more high-quality foreign capital.

Fourth, we will continue to enhance various opening-up platforms. This includes promoting comprehensive trials and demonstrations for expanding the opening up of the service sector. We will introduce new pilot projects to increase openness and innovation in fields such as value-added telecommunications, medical and health services, the digital economy, cultural tourism and transportation, and commercial aerospace and related niche consumption. This year marks the 40th anniversary of the establishment of the inaugural batch of state-level economic and technological development zones. We are committed to the high-quality development of these zones, which is crucial in catalyzing an open economy and fostering new quality productive forces. 

Fifth, we will continue to optimize the environment for foreign investment. Annual assessments will be conducted on the effective implementation of the "Opinions of the State Council on Further Optimizing the Business Environment for Foreign Investment and Increasing the Attraction of Foreign Investment," i.e. 24 measures for boosting foreign investment. Each policy and measure will be thoroughly implemented. In line with directives from the State Council, we are further refining the roundtable meeting system for foreign-funded enterprises, as well as the mechanism for handling complaints by foreign investors, providing timely assistance to enterprises in overcoming difficulties. This ensures that foreign enterprises enjoy national treatment in terms of access to production factors, qualification licensing, standards setting and government procurement, thereby sharing the dividends of China's reform and opening up.

That is all from me. Thank you.

Xing Huina:

Due to time constraints, we will take two final questions.

CCTV:

The third plenary session of the 20th CPC Central Committee just wrapped up recently, at which the importance of accelerating the development of new drivers for foreign trade was emphasized. Could you share the key initiatives undertaken by the Ministry of Commerce in this field this year? What are the plans or initiatives we can expect?

Li Xingqian:

Developing new drivers for foreign trade is an initiative responsive to both the laws of the market and global demands. This approach aims to refine the structure of our foreign trade offerings, boost trade efficiency and more effectively cater to the production and living needs of end-users by deepening international cooperation and fostering innovative practices within supply chains. The export-import situation in the first half of the year indicates that China's foreign trade has achieved substantial gains in four aspects, which are also the focuses of our efforts to nurture new drivers for foreign trade.

First, cross-border e-commerce has been boosted in terms of both import and export. Utilizing cutting-edge technologies and adapting to emerging market demands, cross-border e-commerce stands as a dynamic component of foreign trade and is a business mode widely favored by consumers worldwide. In the first half of this year, around 9 million small parcels were exchanged daily between China and various countries, facilitating the rapid delivery of Chinese products to international customers and bringing an increasing array of premium goods to the Chinese market via cross-border e-commerce platforms. This year, the Ministry of Commerce, in collaboration with other relevant departments, has rolled out special policies to support cross-border e-commerce and has organized on-site meetings, hosted targeted training programs and initiated measures for brand development and the cultivation of business entities. Looking ahead, we will enhance exchanges in cross-border e-commerce, bolster supply-demand connections, engage more deeply in international cooperation, and continue to expand comprehensive pilot zones for cross-border e-commerce.

Second, green trade has become a growing trend. Green trade not only involves trading in eco-friendly, low-carbon products and services, but also entails the green and low-carbon transformation of all elements of the foreign trade supply chain — such as R&D, procurement, manufacturing, logistics and marketing. We released a handbook on green and low-carbon transformation for foreign trade enterprises in the first half of this year and intend to publish further guides. Moreover, we have conducted thematic trainings and are swiftly developing a public service platform for green trade, with the aim to diversify services for foreign trade enterprises. Moving forward, our aim is to research and enact specialized policies for fostering green trade, progressively build a robust support system for related initiatives, cultivate a conducive international environment, and enhance the capabilities of foreign trade enterprises in sustainable and low-carbon operations.

Third, the digitalization of trade has been accelerated. This year, the Ministry of Commerce, along with relevant departments, has been vigorously promoting the application of digital technologies within trade sectors, achieving a paperless cargo release rate of up to 90% at some ports. We have organized numerous exchanges on trade digitalization and examined methodologies to facilitate the utilization of electronic bills of lading in finance and other sectors. At the same time, we are encouraging global collaboration by initiating digital pilots that cover the whole process of international trade with our trade partners. Future steps involve supporting regional- and enterprise-level efforts to explore practical ways to fully digitize trade processes, guiding foreign trade participants toward proactive digital transformation, refining the systems for trade digitalization, and deepening cooperation and exchanges within the international trade realm.

Fourth, expanding imports provides new momentum and opportunities for our trading partners. Actively increasing imports is a significant step in further opening up to the world, contributing to global economic development and demonstrating China's commitment as a responsible major country. We have made significant strides in facilitating imports. In the first half of this year, China's import volume reached 9 trillion yuan, an increase of 5.2% year on year. Going forward, we will continue to leverage platforms like the CIIE, the China International Consumer Products Expo, and the import section of the Canton Fair. We will advance free trade agreement negotiations with relevant countries and regions and support increased imports of high-quality products, turning China's vast market into a global opportunity. Thank you.

Xing Huina:

The last question, please.

Xinhua News Agency:

Could you brief us on the key achievements of high-quality BRI cooperation in the economic and trade sectors and share future plans? Thank you.

Li Yongjie:

Thank you for your question. Since 2018, General Secretary Xi Jinping has made a series of important statements on promoting high-quality BRI cooperation, providing direction and a framework for economic and trade cooperation with Belt and Road partner countries. Conscientiously following and implementing his directives, we have made major progress in continuously deepening pragmatic economic and trade cooperation with partner countries. I'd like to elaborate on this by focusing on the following three aspects:

First, the scale of our cooperation has continued to expand. From 2018 to 2023, our trade in goods with BRI partner countries grew from $1.9 trillion to $2.8 trillion, representing an average annual growth rate of 8.1% and increasing the share of the total trade from 40.6% to 46.6%. In the first half of this year, our trade in goods with BRI countries reached $1.4 trillion, accounting for 47.4% of total trade. From 2018 to 2023, our cumulative direct investment in these countries reached $180 billion, with an average annual growth rate of 5.9%. In the first half of this year, our non-financial direct investment in these countries reached $15.46 billion, accounting for 21.3% of our total outbound investment. From 2018 to 2023, the cumulative value of newly signed construction contracts with partner countries reached $1.3 trillion, and the actual turnover of Chinese contractors reached $800 billion. In the first half of this year, these figures were $93.35 billion and $58.92 billion, respectively, both exceeding 80% of the total.

Second, the quality of our cooperation has been steadily improving. Our trade structure has been consistently optimized. We have expanded exports of equipment and component parts with partner countries, contributing to local industrial growth. For example, our exports of electronic components, general machinery equipment and medical equipment in the first half of the year have seen rapid growth. At the same time, we have actively expanded imports of agricultural and industrial products from partner countries, providing them greater access to China's vast market. For example, in the first half of the year, we saw rapid import growth in agricultural products like dried and fresh fruits, nuts, barley and wheat as well as industrial products like automobile components. Our cooperation with partner countries has also expanded into new areas. We've signed investment and cooperation agreements with 42 partner countries in green development, the digital economy, and the blue economy. Moreover, we are actively expanding industrial cooperation in areas such as new energy vehicles and photovoltaics. The number of partner countries participating in our Silk Road e-commerce program has grown to 33. The quality of our cooperation projects has also seen significant improvements. Besides the completion of landmark projects like the China-Laos Railway we have introduced various "small and beautiful" livelihood projects related to agriculture, education and health care. We continue to enhance sustainability in BRI development. In the first half of this year, the value of new contracts for energy-saving and environmentally friendly projects grew by nearly 70%.

Third, the form of our cooperation has been diversified. We have strengthened communication with partner countries through bilateral mechanisms. We have established trade facilitation working groups with 24 partner countries, investment cooperation working groups with 64 partner countries, and joint venture mechanisms for trade in services with seven partner countries. We have also signed economic and trade agreements to unlock institutional advantages. We have signed 15 free trade agreements with partner countries and recently concluded bilateral investment agreements with countries like Angola. We are also leveraging platforms such as exhibitions and forums to deepen cooperation. We have successfully hosted six editions of the CIIE, attracting over 7,000 enterprises from Belt and Road partner countries. Additionally, we have achieved fruitful results in advancing cooperation and deepening exchanges through the China-Arab Cooperation Forum and the China-Africa Cooperation Forum.

Going forward, MOFCOM will continue to implement the guiding principles of General Secretary Xi Jinping on BRI cooperation, the major reform initiatives from the third plenary session of the 20th CPC Central Committee, improve the mechanism for high-quality BRI cooperation, and carry out the eight major measures for supporting high-quality Belt and Road cooperation, delivering real and substantive results for all participants. Thank you.

Xing Huina:

Due to time constraints, today's press conference is hereby concluded. Thank you to the four speakers and friends from the media. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Yiming, Wang Qian, Liu Caiyi, Zhou Jing, Liu Sitong, Wang Yanfang, Yan Bin, Yan Xiaoqing, Yang Xi, Ma Yujia, Liao Jiaxin, Guo Yiming, Li Huiru, Wang Ziteng, Wang Wei, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Zhang Shixin, deputy secretary general of the NDRC

Mr. Yuan Da, deputy secretary general of the NDRC

Mr. Xiao Weiming, deputy 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:

Aug. 1, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC), to brief you on relevant developments and answer your questions. Also present today are deputy secretaries general of the NDRC, Mr. Zhang Shixin, Mr. Yuan Da and Mr. Xiao Weiming.

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

Zhao Chenxin:

Thank you. Good morning. I am delighted to be here today alongside my three colleagues for this press conference.

Pursuing high-quality development is our top priority in the new era. Since the 18th National Congress of the Communist Party of China (CPC), the Party Central Committee with Comrade Xi Jinping at its core has pursued a strategy of national rejuvenation amid global changes of a magnitude not seen in a century, with a strategic vision, broad perspectives and deep commitment. High-quality development has been prioritized as the primary task in building China into a modern socialist country in all respects. By effectively leveraging reform and opening up as a crucial means, we have injected strong momentum into promoting high-quality development. The NDRC has diligently implemented the decisions and arrangements of the Party Central Committee and the State Council, faithfully fulfilling its duties of macro-management and comprehensive economic coordination. We have comprehensively deepened economic structural reforms, striving to pursue higher-quality economic growth and appropriately increase economic output. I would like to summarise our achievements in six aspects.

First, the macroeconomic governance system has continuously improved, significantly enhancing our economic strength. We have fully utilized the strategic guiding role of national development planning, and strengthened the coordination of fiscal, monetary, employment, industrial, investment, consumption, environmental protection and regional policies. Rigorous assessments of policy alignment with broader macroeconomic objectives have resulted in more forward-looking, targeted and effective macroeconomic regulation. Consequently, China's economic strength has reached new heights. In 2023, our GDP surpassed 126 trillion yuan (about $17.71 trillion); and for years, China has been the world's largest engine of economic growth, contributing over 30% to global growth.

Second, the science and technology innovation system has continuously improved, and the modern industrial system has grown robustly. We have continued to focus on developing the real economy. We have established a technology innovation system that enables enterprises to play a major role in innovation, guided by market demands and supported by universities, research institutes and end-users. We have actively advanced supply-side structural reforms, accelerated the transformation of traditional industries, fostered the growth of emerging sectors, continually optimized our industrial structure and accelerated the transformation of growth drivers. From 2013 to 2023, the value-added of high-tech manufacturing above designated size grew by an average of 10.3% annually, with China becoming the first country to have more than 4 million valid invention patents.

Third, the construction of our market system has achieved positive results, continuously energizing various business entities. Over the past decade, the building of a high-standard market system has steadily advanced, the market-based allocation of production factors has been deepened, a unified national market has been rapidly established, and the layout and structural adjustment of the state-owned sector have been improved. The system and mechanism for promoting the high-quality development of private businesses have been continuously improved. As a result, an institutional environment characterized by effective market mechanisms, vibrant microeconomic entities, and appropriate macroeconomic regulation has been gradually perfected.

Fourth, the establishment of a new system for an open economy has accelerated, and high-quality cooperation under the Belt and Road Initiative (BRI) has been solidly promoted. Over the past decade, a broader agenda of opening up across more areas and in greater depth has been advanced, continuously promoting institutional openness in rules, regulations, management and standards. The system of pre-establishment national treatment plus negative list for foreign investment has been fully implemented, accelerating the fostering of a world-class business environment that is market-oriented, law-based and internationalized. China has become a major trade partner for over 140 countries and regions and has signed more than 230 BRI cooperation documents with over 150 countries and more than 30 international organizations.

Fifth, reform and innovation in social programs have deeply progressed, continuously enhancing our capacity to ensure the people's well-being. Focusing on solving pressing difficulties and problems that concern the people most, we have introduced a series of reform measures in income distribution, employment, education, social security, elderly care, child care, health care and housing security. From 2013 to 2023, we have created over 140 million jobs in urban areas, and the per capita disposable income of residents has increased by an average of 6.2% annually in real terms. China has achieved the historic elimination of absolute poverty and built the world's largest education, social security and health care systems. Additionally, environmental protection in China has undergone historic, transformative and comprehensive changes.

Sixth, adhering to a holistic approach to national security, our capabilities to safeguard economic security have continued to improve. Our food production, purchase, storage, processing and sales systems have been continuously strengthened. Our total grain output in 2023 reached 1.39 trillion jin (695 million metric tons), achieving basic self-sufficiency of grain and absolute security of staple food. The energy revolution has been accelerated, continuously enhancing our green, low-carbon energy security capabilities. The installed capacity of renewable energy in 2023 exceeded 50% of the total installed power generation capacity nationwide. Moreover, China's newly-added installed capacity of renewable energy exceeded 50% of the global total. At the same time, China's industrial and supply chains became more self-supporting. The supply and prices of major commodities and raw materials have been kept stable in an effective and orderly manner. Data security capability building is continuously advancing, and the systems and mechanisms for financial risk prevention and control are gradually being perfected.

The present and the near future constitute a critical period for our endeavor to build a great country and move toward national rejuvenation on all fronts through Chinese modernization. We must continue to push forward with our reform efforts. We will thoroughly implement the principles of the third plenary session of the 20th CPC Central Committee and fully advance the major tasks of economic structural reform. We will focus on resolving bottlenecks and blockages that hinder high-quality development, as well as cultivating and enhancing endogenous driving forces for high-quality development. This approach aims to comprehensively promote Chinese modernization through high-quality development.

That concludes my introduction. My colleagues and I are now ready to take your questions. Thank you.

Shou Xiaoli: 

Thank you, Mr. Zhao, for the introduction. Now, the floor is open to questions. When asking your question, please begin by stating the media outlet you represent.

CCTV:

My question is for Mr. Zhao. Now that we're halfway through 2024, how would you assess the economic trends of the first six months? Additionally, what are your projections for the economy in the latter half of the year? Do you think macroeconomic policies need to be strengthened, and do you believe it's feasible to meet the economic growth targets set at the beginning of the year? Thank you.

Zhao Chenxin:

Thank you for your questions. Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's economic performance has been generally stable with progress. It has continued its trend of recovery and improvement, with new momentum and new advantages developing rapidly. High-quality development is advancing steadily, and the overall social situation remains stable. Specifically, I would like to introduce three aspects: First, the economy is growing reliably. Agricultural production remains generally stable, industrial growth is rapid, and the service sector is developing steadily. Consumption, investment, and export demand are pulling together harmoniously. Major economic provinces continue to play a pivotal role in economic development, driving a 5% year-on-year increase in GDP in the first six months. Considering rising uncertainties in the external environment and domestic economic risks and challenges, such an achievement is truly remarkable. Second, there's a steady improvement in quality. This is reflected by the accelerated cultivation of new quality productive forces, the rapid advancement of green and low-carbon development, and the quickening transition from old to new growth drivers. Let me give you a figure: In the first half of the year, the added value of the high-tech manufacturing industry and equipment manufacturing above designated size increased by 8.7% and 7.8%, respectively. Third, people's livelihoods continue to improve. Employment conditions, residents' income, price levels, and basic public services are improving.

Regarding the economic trends in the second half of the year, which you are most interested in, we need to view them comprehensively and dialectically. On the one hand, we must recognize several challenges. These include the increasing adverse effects of changes in the external environment and insufficient domestic effective demand. We also face differentiation in economic operations and numerous risks and hidden dangers in key areas. Additionally, we must acknowledge the growing pains associated with transitioning from old to new driving forces. These difficulties and challenges stem from both the intertwined external environment and the necessary pains of economic structural reform and the push for high-quality development. Looking back at our history of economic development, we can see that China's economy has grown stronger by overcoming one difficulty after another. On the other hand, we should also acknowledge the accumulation of positive factors and favorable conditions in economic operations. Externally, international trade growth has somewhat recovered, and emerging economies are developing rapidly. This benefits Chinese enterprises by leveraging their advantages to expand into international markets. In terms of macroeconomic policy, major initiatives deployed by the CPC Central Committee and the State Council are accelerating. These include implementing major national strategies, building up security capacity in key areas, and initiating a new round of large-scale equipment renewals and trade-ins of consumer goods. Projects such as ultra-long-term special bonds, central budget investments, local government special bonds, and the 2023 additional national bonds are all speeding up, forming substantial work volumes. It can be said that there is still ample space for counter-cyclical policy adjustments. Regarding high-quality development trends, various regions are developing new quality productive forces suited to local conditions. Emerging industries such as new energy vehicles are developing well, future industries are being systematically laid out, new driving forces are rapidly growing, and the green transition of our development model is steadily advancing. Regarding development vitality, the third plenary session of the 20th CPC Central Committee has outlined a series of major reform measures. These will effectively address deep-seated institutional barriers and structural contradictions, greatly stimulating market entities' enthusiasm, initiative, and creativity.

As we've seen in the news, the third plenary session of the 20th CPC Central Committee emphasized the importance of remaining firmly committed to accomplishing this year's economic and social development goals. On July 30, just two days ago, the Political Bureau of the CPC Central Committee made plans for economic work in the second half of the year. We will firmly ensure the implementation of these decisions. The decisions and arrangements of the CPC Central Committee and the State Council are being implemented quickly. As these policies take effect, the foundation for continuous economic recovery will be enhanced and solidified. We have the conditions, abilities, confidence and determination to overcome problems or challenges during development and transformation. We are poised to accomplish this year's goals successfully and to a high standard.

That's all for my introduction. Thank you.

21st Century Business Herald:

The meeting of the Political Bureau of the CPC Central Committee proposed making good use of ultra-long special treasury bonds to support major national strategies and build up security capacity in key areas. What progress has been made in this respect? What is the situation with major project approvals? What considerations do you have for the future implementation of supporting major national strategies and building up security capacity in key areas? Thank you. 

Zhao Chenxin:

Mr. Zhang, please answer the questions.

Zhang Shixin:

Thank you for your questions. Issuing ultra-long special treasury bonds to support major national strategies and build up security capacity in key areas is a major strategic decision and deployment made by the CPC Central Committee and the State Council. It focuses on the overall situation of building a great country and achieving national rejuvenation. It is an important lever for promoting Chinese modernization, driving high-quality development, and taking an active approach to development.

Recently, in accordance with the decisions and requirements from a meeting of the Political Bureau of the CPC Central Committee and the State Council's video conference on mobilizing support for the construction of projects to implement major national strategies and build up security capacity in key areas, the NDRC continues to promote one-stop government services, and has established and refined a collaborative working mechanism with 30 departments and agencies. We aim to comprehensively advance key tasks in both "hard investments" and "soft construction," and ensure high-quality implementation across all aspects of these projects.

Regarding "hard investments," we have worked with relevant departments to organize projects from top to bottom, employing rigorous screening and selection criteria. Priority has been assigned to major landmark projects spanning regions and river basins, ensuring these initiatives effectively implement major national strategies and build up security capacity in key areas. Currently, the list for the first two batches of this year's projects has been issued, focusing on areas such as accelerating scientific and technological self-reliance and strength, promoting coordinated regional development, enhancing food and energy security, driving high-quality population development, and comprehensively advancing the Beautiful China Initiative. We are currently working diligently to ensure rapid fund allocation and expedite the commencement of project construction.

In terms of "soft construction," we are adhering to the principle of combining project development with supporting reforms. We are accelerating research and formulation of policies, plans, and innovations in systems and mechanisms as part of our "soft construction" reform measures, aiming to improve investment mechanisms and enhance investment efficiency. To date, we have promoted the issuance of a series of policy documents, such as those aimed at promoting the high-quality development of venture capital. Relevant policies, measures and long-term mechanisms are being continuously refined and improved.

Next, we will thoroughly study and implement the guiding principles from the third plenary session of the 20th CPC Central Committee, adhering to the principle of putting equal emphasis on quality and efficiency. We will diligently carry out the follow-up work of organize and select projects, enhance digital monitoring and daily coordination, and conduct timely on-site inspections to accelerate project initiation. Simultaneously, in conjunction with project investments, we will promptly formulate and issue supporting policies and reform measures for "soft construction," continuously optimizing institutional supply to promote the achievement of our goals. Thank you.

Reuters:

We have noticed that the recent meeting of the Political Bureau of the CPC Central Committee emphasized expanding domestic demand with a focus on boosting consumption. It suggested that policy efforts should shift toward improving people's livelihoods, promoting consumption, and increasing people's income. Additionally, the government has recently earmarked a portion of treasure bonds to fund consumer goods trade-in initiatives. We would like to ask if this indicates a policy adjustment, as previously, our policy focus was mainly on investment and supply-side measures. Moreover, could you predict whether the policies to promote consumption will take effect soon and whether they will help achieve this year's goals? Thank you.

Zhao Chenxin:

Let's invite Mr. Yuan to answer the question. 

Yuan Da:

Thank you for your questions. According to the arrangements of the CPC Central Committee and the State Council, the NDRC, in collaboration with relevant departments, has recently allocated approximately 300 billion yuan in ultra-long special treasury bonds to facilitate large-scale equipment renewal and encourage consumer goods trade-ins. This includes directly allocating around 150 billion yuan to local governments to support consumer goods trade-ins, allowing the "real benefits" of the policy to reach consumers more quickly and conveniently, thereby better meeting residents' needs for consumption upgrades. We believe the policy effects will gradually become apparent.

The Political Bureau of the CPC Central Committee recently held a meeting to make comprehensive arrangements for economic work in the second half of this year. Moving forward, the NDRC will work with relevant departments to fully implement all assigned tasks, including facilitating large-scale equipment renewal and encouraging consumer goods trade-ins. We will further deepen reform comprehensively with a view to advancing Chinese modernization, strengthen macro regulation, deepen innovation-driven development, tap into the potential of domestic demand, and reinforce the momentum for economic recovery and growth. We must remain firmly committed to accomplishing the goals for this year's economic and social development, and will focus on the following six areas:

First, we will speed up the implementation of landmark reform measures. We will take the economic structural reform as an engine of progress and promptly introduce a batch of mature and tangible reform measures. This includes launching guidelines for the development of a unified national market, releasing a new version of the negative list for market access, and creating a fairer and more dynamic market environment. We will actively cultivate new growth drivers for foreign trade, expand trade in intermediate goods and green trade, and make greater efforts to attract and utilize foreign investment.

Second, we will enhance the intensity and effectiveness of macro policies. Macro policies will continue to be forceful and more effective, with additional policies introduced as the situation changes, thereby continuously improving the capacity for policy implementation. We will coordinate efforts in "hard investments" and "soft construction," combining project construction with policy, planning, and mechanism development to accelerate the construction of projects that implement major national strategies and build up security capacity in key areas. The policies and measures to intensify support for initiatives facilitating large-scale equipment renewal and encouraging consumer goods trade-ins will be implemented and are expected to deliver substantial results as soon as possible.

Third, we will actively expand domestic demand. We will place greater emphasis on promoting consumption, encouraging the purchase of commodities such as automobiles and home appliances, and improving and expanding service consumption in education, elderly care, child care and domestic services. We will also support the high-quality development of cultural, sports, and tourism sectors, continuously optimize measures to facilitate two-way travel, and make it more convenient for foreigners to travel in China. Additionally, we will promote effective investment by advancing the construction of 102 key projects listed in the 14th Five-Year Plan, accelerating the issuance and use of special-purpose bonds for local governments, putting in place a new mechanism for cooperation between government and private capital, and further stimulating private investment. We will also coordinate efforts in new urbanization and all-around rural revitalization and promote the implementation of major regional strategies.

Fourth, we will accelerate the development of a modernized industrial system. We will foster new quality productive forces tailored to local conditions, step up efforts to secure breakthroughs in core technologies in key fields, make a big push to foster emerging industries and industries of the future, and promote the transformation and upgrading of key industries. We will accelerate the clean-up in outdated and inefficient production capacity, promote the full integration of the real economy and the digital economy, and effectively reduce logistics costs across society.

Fifth, we will defuse risks in key areas in a steady and orderly manner. We will ensure the implementation of the new policies aimed at promoting the stable and healthy development of the real estate market, intensify our efforts to ensure the handover of buildings, and speed up building the new development model of the property industry. We will implement a package of debt relief plans, and continue refining the specific measures in a targeted manner. We will also deal prudently with financial risks, so as to strengthen the systems that safeguard financial stability and effectively prevent and mitigate systemic financial risks.

Sixth, we will work harder to ensure and improve people's livelihoods. We will ensure employment for key groups such as college graduates, boost people's incomes through multiple channels, and deepen the reform of public services like elderly and child care. We will make efforts to implement the action plan for energy conservation and carbon reduction for 2024-2025. Moreover, we will ramp up efforts in preventing and responding to extreme weather events and natural disasters, and ensure power supply during peak periods in summer. Thank you.

China News Service:

Mr. Zhao has introduced the remarkable achievements made in reforming the economic system. Over the past few years, China's economy has been experiencing continued growth, and new scientific and technological breakthroughs are constantly being made. We can see that more policies have been adopted to support private businesses, and the application of new technologies are making people's lives more convenient. Public services and ecological environment are getting better and better. All these reflect the achievements of China's economic system reform. As such, what efforts will be made to build a high-standard socialist market economy? Thank you. 

Zhao Chenxin:

Thank you for your question. I think your concern is mainly about the reform of the economic system. As you mentioned, since the Third Plenary Session of the 18th CPC Central Committee, China has made remarkable achievements in its reform of the economic system. These are the result of our all-round and systemic efforts. Over the past few years, China's socialist market economy has become more systematic, mature and well-shaped, injecting strong impetus into high-quality development. However, we need to understand that there are still some problems to overcome in advancing high-quality development. I think this perfectly fits the saying that everyone knows so well — the development of our cause shows us what needs to be changed, while reform is the means by which we change it. The NDRC will implement the guiding principles of the Third Plenary Session of the 20th CPC Central Committee, and take the building of a high-standard socialist market economy as its top priority. We will promote reform of the economic system, and ensure the implementation of major tasks. While properly handling the relationship between the government and the market, we will strengthen the reform in key areas and major fields, and give full play to the role of the "invisible hand" of the market and the "visible hand" of the government. We will lift restrictions on the market while ensuring effective regulation, so as to add impetus and vitality to economic and social development. To this end, we will ramp up our efforts in two aspects. 

First, we will boost the vitality of enterprises under all forms of ownership with further reform, and work unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector. When it comes to the reform of state-owned enterprises (SOEs), we will strengthen and improve management over the public sector, setting up the guiding systems for improving the layout of the state-owned sector and adjusting its structure, so as to guide the public sector to invest more in major fields that are crucial for safeguarding national security, supporting sci-tech progress, improving the national economy and people's lives, and providing public services. When it comes to the private sector, we will fully implement guidelines and supporting measures for boosting development of the private sector. The NDRC is working with multiple departments on the formulation of a law to support the development of the private sector. By doing so, we aim to protect the property rights of private companies and the rights and interests of entrepreneurs in accordance with the law, and improve the system and mechanism for private enterprises to participate in national major strategies. This will also help address the pressing difficulties and problems that concern business entities most, such as market access, access to factors of production, and impartial law enforcement. Moreover, we will refine the modern corporate system with distinctive Chinese features, and cultivate more world-class enterprises. Through these measures, we will ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete in the market on an equal footing, and are protected by the law as equals, thus enabling them to complement each other and develop side by side.  

Second, we will further advance the reform of the market system in a bid to make the market environment fairer and more dynamic. We will continue to carry out reform tasks listed in the action plan for the development of a high-standard market system. First, we will reinforce the institutional foundation for the building of a high-standard market system. Efforts will be made in such areas as property rights protection, negative list for market access, fair competition, innovation across the board, and social credit. For example, the negative list for market access, adopted in 2018, has been revised three times, greatly reducing the number of items on the list, and removing many entry barriers that the public and enterprises are highly concerned about. This has helped to inspire vitality in the market. Going forward, we will promote the introduction of guidelines on improving the market access system and publish a new version of the market access negative list. Moreover, we will introduce a batch of special measures to relax market access in a bid to explore further relaxing market access nationwide and providing a broader development space for various business entities. Second, when it comes to the allocation of production factors, we will continue to advance the comprehensive reform trials for the market-based allocation of production factors, and improve the system for the market-based allocation of resources and environmental factors, so that advanced and high-quality production factors can flow smoothly and be allocated effectively toward the development of new quality productive forces. Third, in order to boost the flow of the economy, we will accelerate the building of a unified national market, and formulate guidelines for the construction of a unified national market, making greater efforts to break down barriers and constraints such as local protectionism and market segmentation. Through these measures, we will continuously unleash the internal driving forces and creativity of the whole of society, and inject a steady stream of momentum into the advancement of Chinese modernization.

That is all for my introduction. Thank you.

Hong Kong Bauhinia Magazine:

Recently, the NDRC published a notice on comprehensively implementing the regular issuance of real estate investment trusts (REITs) in the infrastructure sector. The move has attracted significant attention from the capital market. What are the main changes in the regular issuance mechanism compared to the policies in the pilot phase? Thank you.

Zhao Chenxin:

I'll give the floor to Mr. Zhang to address this question.

Zhang Shixin:

Thank you for this question. The NDRC recently published a notice to promote the regular issuance of REITs in the infrastructure sector. This represents a significant step towards further advancing institutional and mechanism reforms in investment and financing while simultaneously fostering the development of a multi-tiered capital market. The move signifies that infrastructure REITs with Chinese characteristics have officially entered a new phase of regularized issuance.

Since the pilot program was initiated in 2020, the NDRC has recommended 67 infrastructure REIT projects to the China Securities Regulatory Commission (CSRC), including those involving offering new shares. Among them, 44 projects have gone public, raising 128.5 billion yuan in funds. The net recovered funds used for new investment have exceeded 51 billion yuan. These funds could potentially lead to a total investment of more than 640 billion yuan in new projects. Over the four-year pilot period, China's infrastructure REITs have seen continuous improvement in institutional arrangements and regulations, sustained growth in issuance scale, and a constant increase in asset types. Market performance remains generally stable, and related parties have become increasingly proactive in participating. Infrastructure REITs are gradually playing a significant role in promoting institutional innovation of investment and financing, deepening capital market reforms, and supporting the real economy. Therefore, the transition to the regular issuance of infrastructure REITs is underpinned by a solid foundation.

Based on the experience of this pilot program, the notice aims to establish a mechanism for regularly issuing infrastructure REITs. Guided by market-oriented and law-based rules, the notice upholds the principle of enhancing related institutional arrangements, standards and regulations while comprehensively improving the application and recommendation mechanisms. The new changes can be summarized in the following four aspects. First, the government review process has become more focused, with clear boundaries established between the roles of the government and the market. The notice specifies that the NDRC's review work will primarily focus on the basic requirements of the programs, their alignment with macro policies, compliance with investment-related regulations, and the use of recovered funds. The NDRC will no longer impose requirements on matters that should be decided by the market and implemented by businesses. Second, infrastructure REITs have been expanded into more sectors to further boost market vitality. New assets, including environmentally friendly and highly efficient coal power plants and elderly care-related infrastructure projects, have been added. The NDRC has also appropriately relaxed the requirements concerning offering new shares of specific projects and those with large-scale initial public offerings (IPO). The utilization of recovered funds has also become more flexible. Third, project application and recommendation administration procedures have been streamlined to enhance operational efficiency. In addition to simplifying administrative procedures and eliminating early-stage counseling, the notice specifies that provincial development and reform commissions or central state-owned enterprises (SOEs) are now authorized to submit applications directly. Concurrent with this, specific time limits for each procedure have been established. Fourth, the distinction between powers and responsibilities has been further clarified to ensure project quality. Maintaining the consistency of powers and responsibilities and strictly implementing the project withdrawal mechanism to promptly retract ineligible projects is essential. Additionally, more punitive and deterrent measures will be taken against institutions and agencies, as well as counseling and reviewing organizations that violate related regulations.

Moving forward, the NDRC will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee. It will put into practice the decisions and plans of the Party Central Committee and the State Council and strengthen collaboration with the CSRC. Taking the publication of the notice as an opportunity, the NDRC will launch a series of programs on policy communication and interpretation. We will also expedite the establishment of supporting institutional arrangements and regulations while organizing training and exchange events. These efforts will facilitate the smooth implementation of regular issuance mechanisms for infrastructure REITs. Moreover, the NDRC will work to put idle funds to good use, further facilitate a sound flow of investment, and better leverage the capital market's role in supporting the real economy to bolster high-quality economic growth. Thank you.

Phoenix TV:

What progress has been made in building a unified national market? How does this initiative contribute to facilitating high-quality development? What additional measures will the NDRC take to advance this initiative further? Thank you.

Zhao Chenxin:

I'll give the floor to Mr. Xiao to address these questions.

Xiao Weiming:

Thank you for your questions. Building a unified national market is a crucial aspect of developing a high-standard socialist market economy. This initiative is closely related to people's lives, therefore drawing significant public attention. Mr. Zhao has already addressed some aspects of this initiative just now. In recent years, the NDRC has collaborated with related state organs and local governments in accordance with the decisions and plans of the CPC Central Committee and the State Council, particularly the requirements outlined in the guideline of the CPC Central Committee and the State Council to accelerate the establishment of a unified domestic market. Following the general principle of establishing the new before abolishing the old, the NDRC has implemented a unified approach encompassing planning, execution and oversight measures. As a result, there has been a significant increase in consensus across all sectors of society, and the initiative's effect is gradually taking shape, with specific progress seen in the following two aspects.

First, by "establishing the new," we aim to improve basic institutional arrangements concerning property rights protection, market access, fair competition and social credit. For example, new regulations for fair competition reviews have officially taken effect today, Aug. 1, representing a significant enhancement to our foundational legal framework. In addition, the number of restrictions in the country's negative list for market access has been cut from 151 in 2018 to 117, with further reductions expected. Moreover, China has also expedited the construction of high-quality integrated multidimensional transportation networks. Currently, China ranks first globally in terms of both the length of high-speed railways in service and the length of completed expressways. China has also completed the construction of the world's largest fiber-optic and mobile broadband network. All these infrastructure projects have contributed to a continuous decline in the ratio of social logistics costs to GDP, which reached 14.2% in the first half of this year, a year-on-year decrease of 0.3 percentage point. China has also completed unified registration of immovable property, with data-related basic institutional arrangements improving continuously. The national 12315 consumer dispute resolution public platform has come into operation, taking the capacity of a unified goods and services market to a higher level. Additionally, list-based management measures have been implemented for administrative penalties and enforcement actions related to market oversight.

Second, by "abolishing the old," we aim to remove obstacles that hinder the development of a unified national market through substantial efforts. We have established a system for rectifying problems, admonishing those responsible, and issuing notice of criticism to typical cases related to improper interventions with the construction of a unified national market. We work to identify and resolve problems, particularly with a focus on local protectionism and market segmentation, which are major concerns for market entities. Through rigorous investigation and corrective action, we have rectified a number of prominent problems in sectors such as government procurement, new energy vehicles, energy resources and pumped storage. Both businesses and the people have tangibly benefited from these initiatives. Furthermore, we have promoted some local practices in standardizing provincial tender documents and introducing negative lists for compiling these documents.

Looking ahead, we will resolutely follow the resolution adopted at the third plenary session of the 20th CPC Central Committee, collaborate with pertinent bodies to consolidate these achievements, accelerate the enhancement of fundamental systems that are vital for fostering a unified national market, and advance the construction of unified markets in pivotal areas such as transportation, commercial logistics and energy market. We will continue to rectify prominent problems in key areas and vigorously eliminate local protectionism as well as market segmentation. Our new progress made in establishing a unified national market will significantly boost the development of a high-level socialist market economy.

That's all from me. Thank you.

National Business Daily:

We are rather concerned about the development of the private economy. It has been over a year since the Opinions of the CPC Central Committee and the State Council on Promoting the Development and Growth of the Private Economy was published. What progress has been made in this regard over the past year? What steps will be taken next to further boost confidence in the growth of the private economy? Thank you.

Zhao Chenxin:

I would like to direct these questions to Mr. Yuan Da.

Yuan Da:

Thank you for your questions. As Mr. Zhao mentioned, we have been consistently upholding and fulfilling the commitments to the public and non-public sectors. Following the CPC Central Committee and the State Council's publication of the Opinions on Promoting the Development and Growth of the Private Economy last July, the NDRC along with related departments has diligently worked to implement these measures effectively, thereby bolstering the progress of the private economy. I would like to briefly outline some of these endeavors.

First, we have continuously optimized the business environment. We have moved faster to build a unified national market, conducted special campaigns to resolve the issue of overdue payments to enterprises, and established the national financing credit service platform and the platform for recommending projects to the private capital, among others. We have built sound communication mechanisms to facilitate regular interactions between the government and private businesses at the national, provincial, municipal and county levels. Significant meetings focusing on the private sector were organized across various locations such as Wuxi, Jinjiang in Quanzhou, Wenzhou and Shenzhen, where we took the initiative to make interpretations of relevant policies and promote experiences.

Second, we have made a concerted effort to enhance support of elements and resources. We have introduced and implemented 25 measures on providing financial support for the private economy and have continuously improved the unified markets for urban and rural construction land and professional talent.

Third, our commitment to the rule of law remains unyielding. We are continuously enhancing a legal system related to enterprises and advancing the formulation of a private sector promotion law. A number of major wrongful criminal cases concerning property rights have been corrected.

Through the joint efforts of all parties, the private economy has maintained steady and sound momentum. In the first half of the year, the industrial added value of private industrial enterprises above the designated size grew 5.7% year on year, 3.8 percentage points higher than the same period last year. RMB-denominated exports by private enterprises rose 10.7%, outpacing the overall export growth by 3.9 percentage points and elevating their share of the country's total exports to 64.9%, a year-on-year increase of 2.3 percentage points. As of the end of June, more than 55 million private enterprises had been registered, marking a year-on-year increase of 7.8%; the number of self-employed individuals reached 125 million, up 5.1% year on year; and the total number of private market entities surpassed 180 million, accounting for 96.4% of the total.

Looking ahead, the NDRC will thoroughly implement the decisions and plans of the third plenary session of the 20th CPC Central Committee, giving full play to the interdepartmental joint meeting mechanism for fostering the expansion of the private economy. We will remain committed to the guidelines and polices for providing a conducive environment as well as numerous opportunities for the private sector, and advance the sustained and healthy development of the private economy. First, we will bolster policy support. We will support capable private enterprises in leading national initiatives to make breakthroughs in major technologies and provide private enterprises with greater access to major national scientific research infrastructure. We will refine financing support policies for private businesses, build a sound credit enhancement system for small and medium-sized enterprises within the private sector, and speed up efforts to alleviate financing difficulties and high financing costs. Second, we will remove obstacles to market access. We will work to see that the competitive areas of infrastructure are open to market entities in a fair manner, improve the long-term mechanism by which private enterprises participate in major national projects, and cultivate an open, transparent, and convenient market access environment. Third, we will strengthen legal guarantees. We will formulate a private sector promotion law. We will improve the legal framework for the long-term regulation of charges levied on enterprises and for clearing overdue payments owed to them. We will work to bolster law enforcement and justice administration to protect property rights and establish an efficient system for the comprehensive management of intellectual property rights. Thank you.

Market News International:

The NDRC recently expressed support for high-quality Chinese companies to borrow medium- and long-term foreign debt. Which industries and fields will this policy be mostly focused on? Thank you.

Zhao Chenxin:

Thank you for your question. Borrowing foreign debt, particularly medium- and long-term foreign debt, is a very important aspect of effectively utilizing foreign capital and expanding bilateral openness in China. Recently, to further enhance the convenience of cross-border investment and financing for enterprises, the NDRC has issued a notice supporting high-quality enterprises in obtaining medium- and long-term foreign debt to promote high-quality development of the real economy. It proposes a series of practical measures and related requirements, including appropriate simplification of the approval and registration requirements, streamlining the procedures, and preventing risks associated with foreign debt.

I'd like to briefly introduce it further. We have two main considerations for high-quality enterprises subject to relevant policies and measures. On the one hand, we focus on enterprises with prominent industry status and good credit. We aim to support competitive and creditworthy enterprises by reasonably lending them medium- to long-term foreign debt. This improves capital use efficiency based on the basis of their main operating financial indicators and credit ratings. Our goal is to improve the quality and standing of Chinese enterprises' overseas bonds overall and reduce risks such as debt default. On the other hand, we consider enterprises that play a leading role in promoting the high-quality development of the real economy. We treat companies of all industries, fields and ownership types equally, in line with national macro regulation and industrial policies. We support more high-quality enterprises in borrowing foreign debt according to their business development needs. This approach aims to better leverage foreign debt funds to serve high-quality development.

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

Guangdong Radio and Television:

The Shenzhen-Zhongshan Link recently opened to traffic. What benefits will this bring to the development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)? In recent years, the CPC Central Committee has deployed several major regional development strategies. What progress has been made? How will the NDRC work to promote the implementation of these strategies going forward?

Zhao Chenxin:

I will invite Mr. Xiao to answer your questions.

Xiao Weiming:

Thank you for your questions. The Shenzhen-Zhongshan Link is another major bridge spanning the Pearl River estuary. It's the latest super-large transportation project completed in the Guangdong-Hong Kong-Macao GBA, following the Hong Kong-Zhuhai-Macao Bridge. General Secretary Xi Jinping sent a congratulatory letter for its opening. The Shenzhen-Zhongshan Link is not only an important hub for infrastructure connectivity in the GBA but also a landmark project promoting the implementation of major regional strategies. Since its opening one month ago, traffic volume has exceeded 3 million vehicles, averaging 100,000 per day, accounting for nearly one-fourth of the total traffic volume across the Pearl River estuary. The driving time from Shenzhen to Zhongshan has been shortened from the original two hours to less than 30 minutes, and transportation between the east and west banks has become smoother. This has dramatically improved the flow of people and goods on both banks of the Pearl River estuary and has effectively promoted the advantages and leading role of east coast cities such as Shenzhen, injecting new impetus into the integrated development of the GBA.

Since the 18th CPC National Congress, General Secretary Xi Jinping has personally planned, deployed and promoted a series of major regional strategies. The NDRC, together with relevant authorities, has earnestly implemented these strategies. We have continuously established and improved institutional mechanisms for coordinated regional development. Our efforts have supported various regions in relying on their resource endowments and leveraging their comparative advantages. This approach has paved the way for a more reasonable division of labor and optimized regional development. As a result, we're creating a regional economic layout characterized by complementary advantages and high-quality development. Specifically:

In promoting the coordinated development of the Beijing-Tianjin-Hebei region, the main focus is on relieving Beijing of functions nonessential to its role as the capital. This approach drives the coordinated development of the region. At present, the CPC Beijing Municipal Committee, Beijing Municipal People's Congress, Beijing Municipal Committee of the Chinese People's Political Consultative Conference, Beijing Municipal People's Government, and more than 70 municipal government departments moved their offices to Beijing's sub-center, and nearly 30,000 personnel have moved to work there. Key municipal infrastructure in the start-up area in Xiong'an New Area has been completed and put into use. The first batch of universities, hospitals, and headquarters of China's central SOEs, which relocated from Beijing to Xiong'an New Area, are rapidly developing their new facilities.

Regarding the development of the Yangtze River Economic Belt, provinces and cities along the river have focused on jointly protecting the environment rather than large-scale development. They've systematically addressed sewage, garbage, chemical and agricultural non-point source pollution. The 10-year fishing ban is showing results, with the Yangtze's main channel achieving Grade II water quality for four consecutive years.

In terms of the construction of the Guangdong-Hong Kong-Macao GBA, convenient policies such as "Hong Kong Vehicles Heading North" and "Macao Vehicles Heading North" have been implemented more quickly. Major open cooperation platforms such as Hengqin, Qianhai, Hetao and Nansha have become more vibrant. Shopping trips to Shenzhen and Zhuhai have grown popular among Hong Kong and Macao residents.

Regarding the integrated development of the Yangtze River Delta, the combined GDP of Jiangsu, Anhui Zhejiang, and Shanghai remains about one-fourth of the national total. The industrial scale of integrated circuits, biomedicine and artificial intelligence accounts for three-fifths, one-third and one-third of China's total, respectively. The output of new energy vehicles accounts for two-fifths of the national total and one-fourth of the global total. The Yangtze River Delta has become an important engine of economic growth and a hub of innovation in China.

Hainan has achieved gratifying results in deepening reform, opening up across the board and building a free trade port.

In the Yellow River basin, efforts toward ecological conservation and high-quality development have shown notable progress. Ningxia Hui autonomous region has accelerated the construction of its pilot zone for ecological protection and high-quality development. Thanks to these efforts, the Yellow River's source again displays its "Thousand Lakes" beauty. The main channel of the Yellow River has maintained Grade II water quality for two consecutive years and has flowed continuously for 24 consecutive years. These achievements are remarkable.

Moving forward, the NDRC will speed up the implementation of issued policies and continue to plan and improve regional development strategies. We'll focus on implementation according to new circumstances and requirements, supporting all regions to better leverage their common and individual advantages. We aim to promote the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao GBA and other regions as drivers of high-quality development. We'll optimize systems and mechanisms for ecological protection and high-quality development in the Yangtze River Economic Belt and Yellow River basin. We will advance the high-standard, high-quality construction of Xiong'an New Area, accelerate Hainan Free Trade Port's development and cultivate a regional economic layout characterized by complementary advantages and high-quality development.

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

Shou Xiaoli:

There is great interest in development and reform work, and several reporters still have their hands raised. Due to time constraints, we'll take one last question.

ThePaper.cn:

How do you view the role of fixed asset investment in promoting high-quality development in recent years? What has the investment situation been like this year? What measures will be taken next to further expand effective investment? Thank you.

Zhao Chenxin:

Thank you for your questions; let me address them. I understand that your questions concern investment efforts, the investment situation and the role of government investment. We have always said that investment is the demand of the present and the supply of the future. In recent years, investment has played a very crucial role in stabilizing growth, adjusting structures, fostering new dynamics and preventing risks. Over the past decade, the total capital formation within China has contributed, on average, more than 40% to economic growth. Under considerable pressure of an economic downturn, it is even more important to leverage the key role of investment.

I will take this opportunity to also introduce the situation of government investment. Government investment plays a very important role in driving and amplifying effective investment, and it is also an important approach for us to address deficiencies, strengthen weak areas, solve difficult problems and handle practical issues. Let me lay out the specifics for you.

First, we have promoted projects that can help achieve strategic goals. The CPC Central Committee and the State Council have arranged a series of strategic tasks for high-quality development, involving some projects that are difficult to implement with social investment alone. For example, major projects such as power grids, high-speed railways, expressways and water conservancy projects span regions, river basins and fields. They require substantial funding, with coordination being very challenging. Their implementation can only be achieved through the driving and amplifying effects of government investment. Furthermore, although projects like national parks and those for green, low-carbon development have good social and ecological benefits, their direct economic benefits are not obvious, thus requiring government investment to guide and drive their implementation.

Second, we have promoted projects that improve people's welfare. From practice, it is evident that government investment plays a significant role in creating jobs, providing wage income and thereby driving consumption. For example, some journalists here have reported on the "work-for-relief" projects, where labor remuneration now accounts for more than 30% of funds earmarked for such investment projects in the central government budget; in 2023, the "work-for-relief" initiatives helped 2.53 million people gain employment, with an average income increase of over 14,000 yuan per person. Additionally, government investment has significantly supported a large number of projects in urban renewal, pollution prevention and control, elderly care, childcare, medical and health care as well as other areas related to people's livelihoods.

Third, we have promoted projects that solidify the foundation of security. The CPC Central Committee and the State Council have made significant arrangements concerning food security, energy security, and the security and stability of industrial and supply chains. Major projects such as high-standard cropland development and energy resource reserves require continuous, stable and large-scale financial investment. Government investment is indispensable in these areas. Government investment has played a very important role in expanding effective investment and has promoted high-quality development through the implementation of these projects.

Regarding the current investment situation that you are concerned about, investment has achieved stable growth, structural optimization and improved quality and efficiency this year. In the first half of the year, fixed asset investment increased by 3.9% year on year, with manufacturing investment growing by 9.5% and private investment rebounding to account for 51.9% of total investments. Moving forward, the NDRC will work with relevant parties to continuously enhance investment vitality through reform and innovation.

On one hand, we will fully leverage the driving and amplifying effects of government investment. We will establish a long-term mechanism for government investment to support the development of major projects that are of fundamental and far-reaching importance and serve the public interest, to coordinate the use of various types of government investment and to focus on guiding all parties to accelerate the cultivation of new development drivers. Specifically, we will make good use of ultra-long-term special government bonds and ensure the high-quality development of initiatives for implementing major national strategies and building up security capacity in key areas. We will effectively utilize the guiding and driving role of investments from the central government budget, accelerate the development of local government special bond projects, ensure the successful implementation of projects supported by funds raised from additional government bonds in 2023, promote the implementation of the 102 major projects under the 14th Five-Year Plan, and move faster to see more projects launched.

On the other hand, we will effectively mobilize the enthusiasm of private investment. We will improve mechanisms to stimulate and facilitate social capital investment, thereby driving the formation of a market-led mechanism for ensuring self-sustaining growth of effective investment. Specifically, we will make good use of the interdepartmental joint meeting mechanism to promote the development and expansion of the private economy, to implement a series of measures to encourage private investment, and to better implement the new mechanisms for government and social capital cooperation, continuously optimizing the investment environment and ensuring that private capital is confident, willing and able to invest. We will continue to recommend and introduce high-quality projects to private capital, a task that has been ongoing for some time, and will further promote the fair opening of competitive areas in infrastructure to business entities as well as support social capital in increasing investments in areas such as equipment upgrades, thus continuously expanding the investment space and allowing private investment to have choices as well as be able to invest effectively.

In short, we will maintain the current positive trends with stable investment growth, structural optimization, and quality and efficiency improvements, continuously leveraging the key role of effective investment and promoting high-quality development.

That's all for my answer, thank you.

Shou Xiaoli:

Thank you, Mr. Zhao, thank you to all the speakers, and thank you to all the journalists. That concludes today's press conference.

Translated and edited by Wang Yiming, Wang Qian, Liu Jianing, Ma Yujia, Mi Xingang, Wang Yanfang, Gong Yingchun, Huang Shan, Zhu Bochen, Zhou Jing, Wang Wei, Liao Jiaxin, Yan Bin, Li Huiru, Zhang Rui, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Dongwei, vice minister of finance

Mr. Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance (MOF)

Mr. Wang Jianfan, director general of the Budget Department of the MOF

Mr. Fu Jinling, director general of the Department of Economic Construction of the MOF

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 31, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Wang Dongwei, vice minister of finance, to brief you on relevant developments and answer your questions. Also present today are Mr. Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance (MOF); Mr. Wang Jianfan, director general of the Budget Department of the MOF; and Mr. Fu Jinling, director general of the Department of Economic Construction of the MOF. 

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

Wang Dongwei:

Ladies and gentlemen, good morning. I am delighted to meet with you here to introduce how the MOF promotes high-quality development.

First, on behalf of the MOF, I would like to express my heartfelt gratitude for your long-term concern, support and assistance regarding our financial work.

General Secretary Xi Jinping has emphasized that pursuing high-quality development is our top priority in the new era. In recent years, the MOF has focused on this main goal of high-quality development by continuously optimizing financial policy, ensuring funding for strategic tasks, strengthening fiscal and taxation systems, and deepening international financial cooperation to pursue higher-quality economic growth and appropriately increase economic output. Here, I will introduce four key areas.

First, we have strengthened and improved macroeconomic regulation. We have implemented proactive fiscal policies, and utilized a combination of tools such as deficits, special-purpose bonds, financial subsidies, interest discounts, and tax measures to promote sustained economic recovery and growth. On the one hand, we have optimized and improved tax and fee reduction policies to help reduce the economic burden on businesses and enhance their growth potential. This year, we have further improved the precision and effectiveness of these policies, with a focus on supporting technological innovation and manufacturing development. On the other hand, we have prudently determined the deficit rate and effectively used special-purpose bonds for local governments and treasury bonds to provide necessary support for economic and social development. Since the 20th National Congress of the Communist Party of China (CPC), we have allocated an additional 11.35 trillion yuan in special-purpose bonds to support around 90,000 projects aimed at addressing weaknesses and improving people's well-being, thereby encouraging increased effective social investment. Last year, we issued an additional 1 trillion yuan in treasury bonds, with most projects now already underway. This year, we have allocated 1 trillion yuan in ultra-long-term treasury bonds to support the implementation of major national strategies, enhance security capabilities in key areas, and facilitate a new round of large-scale equipment upgrades and consumer goods trade-in programs. Meanwhile, we have also strengthened the coordination between fiscal, monetary and industrial policies to better leverage their effectiveness.

Second, we have focused on strengthening financial support for major national strategic tasks and essential public welfare by increasing investment in key areas such as science and technology, education, agriculture and rural development, and ecological protection. We aim to enhance high-quality development. We have diligently implemented the requirement that Party and government departments must run on lean budgets, being thrifty with small expenses and generous with significant ones, allocating more financial resources toward promoting development and safeguarding public welfare. In this year's budget, the top four areas of fiscal expenditure are education, social security and employment, agriculture, forestry and water resources, and health, accounting for nearly 50% of the total. Additionally, we have strongly supported greater self-reliance and strength in science and technology, significantly enhancing our country's innovation capacity, with our national innovation index ranking steadily rising to 10th globally. The level of public welfare continues to improve, with the minimum subsistence allowance for rural areas increasing by 73.3% since 2017, and the minimum subsistence allowance for urban areas rising by 45.4% on average. Basic old-age insurance covers nearly 1.1 billion people, and over 1.3 billion people are enrolled in medical insurance. The environmental sustainability of our economic development has continuously improved. Over the past decade, we have supported an average annual economic growth rate of 6.1%, with an average annual energy consumption growth rate of 3.3%. Since the 13th Five-Year Plan (2016-2020) period, the average PM2.5 concentration in cities at the prefecture level and above has decreased by 28.6%, and the proportion of surface water bodies with water quality rated "good" nationwide has increased by 21.6 percentage points. We can say that the skies are bluer, the mountains are greener, and the waters are clearer.

Third, we have focused on building a high-standard socialist market economy. We have continued to deepen reform of the fiscal and tax systems, aiming to inject vitality and boost momentum for high-quality development. The reform of the budget system has deepened comprehensively. The efficiency of fiscal resource allocation and the effectiveness of fund use have improved constantly. The sound tax system has been established. The system taxing personal income on the basis of both adjusted gross income and specific types of income has been optimized and refined. Reforms on value-added, consumption, resource, and environmental taxes have continued to advance. These efforts have accelerated the formation of a unified national market and facilitated economic transformation and upgrading. The fiscal relationship between the central and local governments has continued to improve. The system of transfer payments has operated more soundly, and incentive and constraint mechanisms through transfer payments have been set up to boost high-quality development. From 2022 to 2024, the central government transfer payments to local governments totaled approximately 30 trillion yuan, propelling coordinated regional development and ensuring equal access to basic public services.

Fourth, we have promoted alignment with high-standard international economic and trade rules, deeply engaged in global economic governance, and continuously promoted high-standard opening up. China's overall tariff level currently stands at 7.3%, lower than the 9.8% WTO accession commitment. We have applied lower temporary import tariff rates to about 1,000 products and implemented preferential conventional tariff rates with 32 countries and regions. This approach benefits our people with quality products and allows the global community to share opportunities created by China's development. We have implemented "zero tariff" and offshore duty-free shopping policies in Hainan province to boost openness. We have also pursued the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative. Furthermore, we have actively participated in multilateral mechanisms such as the G20 and BRICS and promoted high-quality Belt and Road cooperation.

Moving forward, the MOF will fully implement the guiding principles from the 20th CPC National Congress, as well as the second and third plenary sessions of the 20th CPC Central Committee. We will also earnestly implement the deployments made at the meeting of the Political Bureau of the CPC Central Committee held on July 30. Our focus will be on continuously enhancing macro-fiscal control, deepening reform of the fiscal and tax systems, and improving the efficiency of fiscal governance. These efforts aim to maximize our financial sector's contribution to building a great country and moving toward national rejuvenation on all fronts.

Thank you for your attention. My colleagues and I are now ready to take your questions.

Xing Huina:

Before asking your question, please raise your hand and identify your news agency. 

CCTV:

We've noticed that issues such as advancing consumption tax reform and developing local tax systems have been widely discussed recently. Therefore, what specific plans does the MOF have for improving these tax systems? Thank you.

Wang Dongwei:

Thank you for your question. I've noticed the extensive media coverage of these issues, as well as the valuable insights and suggestions offered by experts and scholars.

Since the introduction of the tax revenue-sharing system in 1994, and especially following the third plenary session of the 18th CPC Central Committee, our fiscal and tax systems have continued to improve. The current local tax systems have gradually developed, playing a crucial role in ensuring financial strength of local governments and supporting sustained, healthy economic and social development. However, as China's economy is transitioning to a stage of high-quality development, we recognize that our local tax systems still require improvement. We need to optimize the structure and allocation of tax rights and address other prominent issues.

The third plenary session of the 20th CPC Central Committee has provided comprehensive arrangements and clear requirements for deepening fiscal and tax system reforms. I'll address your question in three aspects:

First, we will expand the sources of tax revenue at the local level. Currently, the central government collects excise tax, a major revenue generator, primarily at the production and import stages. We plan to move excise tax collection further down the production-to-consumption chain, with the power of collection steadily being passed to local governments. This transition will consider the division of revenue between central and local governments and tax administration capabilities. Implementation will be item-specific and phased, aiming to expand local revenue sources and encourage improvements in local consumption environments. We will look into rolling the urban maintenance and construction tax, education surcharges, and local education surcharges into one single local surtax. Local governments will have the authority to set the rate for this tax within a predetermined range. We also plan to reform the environmental protection tax to include volatile organic compounds in its scope.

Second, we will moderately expand local tax rights. In recent years, in legislations on local taxes, such as the Environmental Protection Tax law, Resource Tax Law, and the Tax Law on Farmland Used for Non-agricultural Purposes, provincial-level government has the authority to set the rate for these taxes within a predetermined range and implement tax deductions and exemptions, among other administrative rights. Moving forward, while maintaining the central government's unified legislation and the right to begin collecting certain types of taxes, we will explore ways to give more power to local authorities in determining elements of local tax systems and their implementation.

Third, we will regulate the management of non-tax revenue. Non-tax revenue primarily belongs to local authorities and is a crucial component of local financial resources. We plan to regulate the management of non-tax revenue, appropriately delegate some management authority to local governments and allow them to tailor their practices to local conditions. We will further reform the system of paid use for natural resources. All revenues generated on the basis of the exercise of administrative power, government credit, and state-owned resources and assets will be placed under government budget management. For toll highways, we will adhere to the "beneficiary pays" principle to optimize related policies.

Next, we will fully implement the tasks outlined in the third plenary session's resolution, thoroughly explore and assess specific reform plans as well as launch them once they are mature.

Thank you.

China Daily:

This year, extreme weather events have been frequent in China with many areas experiencing natural disasters, such as rainstorms and floods, and some provinces have even been severely impacted. Could you please elaborate on the work that the Ministry of Finance has done to support local disaster reduction and relief efforts? What are the considerations for the next steps? Thank you.

Wang Dongwei:

I will have my colleague, Mr. Fu Jinling, answer this question.

Fu Jinling:

Thank you for your questions. As you mentioned, since the start of this year's flood season, China has experienced 23 instances of widespread heavy rainfall, affecting over 20 provinces, autonomous regions and municipalities to varying degrees with torrential rains and floods. Some areas have even suffered from the impact of heavy rainfall repeatedly. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the Ministry of Finance has always adhered to the principles of putting people and their lives first. We have focused on three aspects: "building mechanisms, strengthening safeguards and prioritizing efficiency," effectively ensuring the safety of people's lives and property.

In terms of building mechanisms, the Ministry of Finance closely coordinates with the departments of emergency management, agriculture, water resources and transportation to establish three stable and efficient work mechanisms. This includes a disaster information sharing mechanism, a rapid approval and allocation mechanism for central natural disaster relief funds, and a tiered responsibility mechanism for post-disaster recovery and reconstruction. Each department closely monitors the occurrence, development and changes in natural disasters across regions, strengthens disaster reporting as well as conducts pre-research, anticipation and prediction in response preparation. Once a major natural disaster emergency response is initiated, the Ministry of Finance immediately disburses funds through the rapid approval and allocation mechanism for disaster relief funds, supporting local authorities in organizing timely rescue and relief efforts and properly resettling affected populations. After the disaster, efforts are accelerated to support recovery and reconstruction to quickly restore order to production and daily life in the affected areas.

In terms of strengthening safeguards, since the beginning of this year, the central government has allocated 11.5 billion yuan in disaster relief funds to localities, providing strong financial support. These funds include natural disaster relief funds for the relocation, settlement and emergency rescue of affected populations, agricultural disaster prevention and relief funds for restoring agricultural production, water conservancy disaster relief funds for repairing water-damaged water conservancy facilities, and funds for emergency road clearance and infrastructure construction. In 2023, an additional 1 trillion yuan in government bonds was issued, specifically for post-disaster recovery and reconstruction and enhancing disaster prevention, mitigation and relief capabilities, providing solid financial support for disaster prevention and mitigation efforts across the country this year.

In terms of prioritizing efficiency, since the beginning of this year, the Ministry of Finance has activated the rapid approval and allocation mechanism for natural disaster relief funds six times. The central natural disaster relief funds were disbursed within 24 hours following disasters such as the breach of the Dongting Lake dike in Yueyang, Hunan province, the outbreak of flash floods and mudslides in Ya'an, Sichuan province, and the collapse of a highway bridge due to torrential rains in Shangluo, Shaanxi province. This provided financial support to ensure that the affected populations had a place to stay, hot meals and clean drinking water. At the same time, the Ministry of Finance bears in mind that disaster relief funds are money for critical needs of the people, always strictly supervising its use as well as resolutely and seriously investigating and punishing any violations as soon as they are discovered.

China is currently in the critical flood control period from late July to early August, heightened by the active phase of typhoons, the flood control situation has become increasingly severe and complex. Next, the Ministry of Finance will resolutely implement the important speeches of General Secretary Xi Jinping and the guiding principles from the meeting of the Standing Committee of the Political Bureau of the CPC Central Committee on July 25. We will always maintain a tight focus on flood prevention and control, continue to strengthen close communication with relevant departments, carefully track the development and changes of the disaster situation, timely allocate disaster relief funds, and resolutely win the tough battle of flood prevention, control and disaster relief. Thank you.

South China Morning Post:

Many experts believe that the fiscal policy in the first half of the year was tight, leaving significant room for further action. Given that economic growth in the second quarter was below expectations, how will the financial department intensify its efforts in the second half of the year? Will there be large-scale stimulus or expansionary fiscal policies? Thank you.

Lin Zechang:

Thank you for your questions. In 2024, our proactive fiscal policies have been moderately strengthened, improved and made more efficient. Key arrangements were announced following the "two sessions," and since the beginning of this year, we've been actively implementing these decisions in line with the CPC Central Committee's directives, providing robust support for the economy's recovery and improvement.

I would like to share some figures with you. In the first half of the year, the national general public budget expenditure totaled 13.7 trillion yuan. Central government transfer payments to local governments reached 8.99 trillion yuan, accounting for 88.1% of the annual budget. The additional 1 trillion yuan in government bonds issued last year has been fully allocated to local governments and primarily invested in projects. As for this year's new local government bonds, 1.9 trillion yuan had been issued by July 26, with a focus on areas including new infrastructure and new industries, and special bond quotas are allocated to regions with well-prepared projects and high usage efficiency. Additionally, 1 trillion yuan in ultra-long-term special bonds has been allocated this year to support major projects, with 418 billion yuan issued by July 24. Meanwhile, we are strictly adhering to the requirement for Party government bodies to practice frugality, striving to be more efficient with government spending.

Various macroeconomic policies, including fiscal policies, are now showing results, bolstering internal momentum for economic development. The economy is stable and continues to advance steadily. In the first half of the year, GDP grew by 5% year on year. The trend of industrial transformation toward "new" and "green" is becoming more pronounced. Investments in high-tech industries increased by 10.6% year on year, while technological upgrades in manufacturing saw a 10% increase. These developments mark new progress in high-quality development.

Moving forward, we will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee and the recent meeting of the Political Bureau of the CPC Central Committee. We will intensify policy implementation to promote sustained economic recovery and improvement. Our focus will be on four key areas of work:

First, we will better leverage the amplifying effect of government investment. Based on needs and project readiness, we will issue and utilize ultra-long-term special government bonds on schedule. This proactive approach aims to support the implementation of major national strategies and enhance security capacity in key areas. We will guide local governments to expedite the issuance and use of special bonds, accelerate the deployment of additional government bond funds and central budget investments, and increase tangible outcomes.

Second, we will intensify efforts to promote large-scale equipment upgrades and the replacement of consumer goods. A notice has been issued to allocate approximately 300 billion yuan in ultra-long-term special government bond funds to support and advance these initiatives. We will actively collaborate with relevant departments to ensure the effective implementation of these measures.

Third, we will continue to strengthen basic living standards. This will be achieved by implementing fiscal and tax policies in areas such as employment, education, elderly care and healthcare, as well as enhancing financial support and reinforcing the safety net for people's livelihoods.

Fourth, we will strengthen fiscal revenue and expenditure management. We will strictly organize revenue collection in accordance with laws and regulations, and avoid excessive taxes and fees. We will rigorously control non-essential and non-priority expenditures to ensure that fiscal funds are used effectively. Additionally, we will enhance accountability across all levels of government to ensure stable management of local finances.

That's all from me. Thank you.

CNBC:

What changes has the directive of the third plenary session brought to the fiscal relationship between the central and local governments? In which areas are these changes mainly reflected? Thank you.

Wang Dongwei:

Mr. Wang Jianfan will answer your questions. 

Wang Jianfan:

Thank you for your questions. The fiscal relationship between the central and local governments is a fundamental component of our government structure's division of powers and responsibilities. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the adjustment and improvement of this intergovernmental fiscal relationship. We've made advancements in deepening fiscal and tax system reforms, achieving multiple breakthroughs and significant progress. We've essentially completed reforms delineating fiscal powers and expenditure responsibilities in key areas. We've also made timely adjustments to revenue allocation between central and local governments, gradually improved the fiscal transfer payment system, and pushed forward with reforms of fiscal systems below the provincial level. Fiscal system reforms have been crucial in enhancing the central government's macroeconomic control capabilities, motivating local governments to drive economic development, and promoting the formation of a unified national market. These changes have effectively propelled sustained and healthy economic and social development.

The third plenary session of the 20th CPC Central Committee laid out a series of new directives for reforming and improving the fiscal relationship between the central and local governments, setting clear goals and directions for deepening fiscal system reform.

In terms of revenue division, we will place more fiscal resources at the disposal of local governments and will expand the sources of tax revenue at the local level. We will take steps to move excise tax collection further down the production-to-consumption chain, with the power of collection steadily being passed to local governments, while optimizing the ratio for taxes shared between the central and local governments. We'll standardize the management of non-tax revenues and appropriately delegate some non-tax revenue management authority to local governments, allowing them to implement differentiated management based on local conditions.

In terms of transfer payments, we will improve the system of transfer payments, overhaul special transfer payments, and increase the scale of general transfer payments. These will help ensure that the fiscal resources of prefecture- and county-level governments are commensurate with their powers. We will establish incentive and constraint mechanisms through transfer payments to promote high-quality development. We will focus on overhauling special transfer payments and increasing the scale of general transfer payments. This aligns with the goal of reforms to place more fiscal resources at the disposal of local governments.

Regarding the division of fiscal powers and expenditure responsibility, the central government will hold more fiscal powers as appropriate and raise the proportion of central government expenditure accordingly. In principle, the expenditures commensurate with such powers should be allocated from the central government, and such powers to be delegated to local governments should be reduced. No requirements for supporting funds from local governments in violation of regulations shall be made. When it is necessary to delegate fiscal powers to local governments, the relevant funds should be arranged through special transfer payments. 

Following the guiding principles of the third plenary session of the 20th CPC Central Committee, the MOF will make efforts to establish a fiscal relationship between the central and local governments that features well-defined powers and responsibilities and the appropriate allocation of resources, with an optimum balance between regions. We will ensure the implementation of reforms with relentless perseverance to keep the central and local governments fully motivated. Thank you.

China Financial and Economic News:

The resolution said that China will improve institutions and mechanisms for fostering new quality productive forces in line with local conditions, as well as the systems for promoting full integration between the real economy and the digital economy. Looking ahead, what kinds of proactive fiscal policies will be implemented to create new growth drivers and strengths? Thank you.

Wang Dongwei:

Thank you for your question. This is an important issue, and it's also a complex one. Our overall consideration is to effectively implement a series of fiscal and tax policies that support scientific and technological innovation, ultimately driving industrial upgrades. Let me briefly introduce five aspects of this approach:

First, we will focus on strengthening the foundation and targeting key areas to support and enhance technological innovation capabilities. We will continue to prioritize science and technology as a key area of fiscal expenditure. The central government earmarked 370.8 billion yuan toward science and technology expenditure in this year's budget, marking a 10% year-on-year increase. We will substantially support the integrated development of scientific and technological innovation and industrial innovation. We will continuously scale up investment in basic, applied and frontier research while refining the investment mechanism for basic research, which features a combination of competitive funding and stable support. Several major national sci-tech innovation projects will be launched. We will also strive to secure breakthroughs in core technologies within key fields, promote the integrated and clustered development of strategic emerging industries, and accelerate the cultivation and growth of future-oriented industries. 

Second, we will focus on expanding channels and boosting empowerment to promote the deep integration of the real and digital economies. A series of policies and measures have been introduced to support this integration. Here, I would like to introduce two pilot programs. First, we launched a three-year pilot program for the digital transformation of small- and medium-sized enterprises in 2023. This program will be rolled out in 90 cities in three phases. Currently, 66 cities have already begun implementing the pilot. The second program is to allocate 18 billion yuan, which will also be distributed in three batches, to support 60 cities in conducting pilot programs for new technological transformations in the manufacturing sector.

Third, we will focus on removing obstacles and boosting consumption to propel high-quality development in the service industry. Several pro-growth measures have been introduced to support a new round of large-scale equipment upgrades and consumer goods trade-ins. Ultra-long special treasury bonds have been issued recently, worth approximately 300 billion yuan. We will fully implement the decisions and deployments of the CPC Central Committee, enhance local governments' capabilities in promoting consumption, and foster new modes and new forms of consumer spending. In addition, we will improve the commercial circulation network layout and launch pilot programs for building modern commercial circulation systems. We will launch special funds dedicated to the disposal of waste electrical and electronic products, with a budget of 7.5 billion yuan this year, to promote recycling. We will allocate over 11 billion yuan to support demonstration projects in key overseas-oriented industries, such as electronic information, construction machinery, and medicine, improving the quality and efficiency of foreign trade.

Fourth, we will focus on strengthening weak links and improving efficiency to reinforce the development of modern infrastructure. We will comprehensively use policies such as additional issuance of treasury bonds, special local government bonds, vehicle purchase tax funds, and central government budget for investment, improving the quality and efficiency of infrastructure efforts. Since 2022, approximately 18 billion yuan has been allocated to support and reinforce national comprehensive freight hubs in 25 cities, and such work will continue this year. We will support the digital transformation of major expressways, improving their carrying capacity, traffic efficiency, and safety levels. Simultaneously, we will help about 200 counties nationwide boost development of rural charging and battery-swapping facilities, addressing the shortfall in infrastructure. This initiative will increase the consumption of new energy vehicles in rural areas.

Fifth, we will focus on tackling difficulties and removing choke points, so as to enhance the resilience and security of industrial and supply chains. We will support efforts to resolve bottleneck issues in industrial and supply chains by implementing a combination of policies. We will also provide support to boost key industrial chains such as integrated circuits, industrial machine tools, medical equipment, instruments, industrial software as well as basic software, and to build industrial and supply chains that are self-supporting and risk-controllable.

That's all for my answer. Thank you.

National Business Daily:

The State Council executive meeting studied boosting support for large-scale equipment upgrades and consumer goods trade-ins. What new measures will the central finance authorities take in this new round of equipment renewals and consumer goods trade-ins?

Wang Dongwei:

My colleague Mr. Fu Jinling will answer this question.

Fu Jinling:

Thank you for your question. This currently is a hot topic and a policy that is eagerly anticipated by people from all walks of life.

At the beginning of this year, General Secretary Xi Jinping presided over the fourth meeting of the Central Financial and Economic Affairs Commission, making comprehensive arrangements for large-scale equipment renewal and consumer goods trade-ins. Recently, the State Council held an executive meeting to make plans for boosting support in this regard. The MOF has been committed to implementing the decisions and plans of the CPC Central Committee and the State Council, researching and proposing a package of policies and measures. The ministry has made definite arrangements for the allocation of roughly 300 billion yuan in ultra-long special treasury bonds, increasing support in key areas with equipment renewal and further enhancing at the local level the capacity for consumer goods trade-ins. These efforts mainly focus on three aspects:

First, we will focus on greater efforts to boost investment and consumption confidence. We will provide further support for equipment renewal and replacement within key areas. For instance, in terms of automobile scrapping and renewal, for those who scrap passenger cars meeting certain criteria and then purchase new energy or fuel vehicles, we will increase the subsidy per vehicle from 10,000 yuan and 7,000 yuan to 20,000 yuan and 15,000 yuan, respectively, doubling the previous amounts. In terms of agricultural machinery scrapping and renewal, the subsidies for scrapping machinery like combined harvesters and seeders, and replacing them with the same type of machinery, will be increased by no more than 50% based on the current standards. In terms of loan interest subsidy, the interest discount for equipment renewal loans will be increased from 1 percentage point to 1.5 percentage points per annum, subsidized by the central government, further reducing financing costs for business entities.

Second, we will focus on meeting a wider range of investment and consumption needs. We will extend the support scope for equipment renewal to include the energy and power sectors as well as upgrading old elevators. We will also include in the support scope for consumer goods trade-ins the replacement of individual passenger cars, home appliances and electric bicycles, as well as the purchasing of materials for the renovation of old houses, kitchens and bathrooms, and home modifications for the elderly's convenience. These measures aim to better satisfy the people's needs of upgrading consumption and to continuously raise their quality of life.

Third, we will focus on better support to enhance the capacity for promoting consumption locally. Subsidy funds for the scrapping and renewal of cars and old operating freight vehicles, the renewal of new energy buses and their batteries as well as home appliance trade-ins will be jointly covered by the central and local finances in an overall ratio of 9:1. To be specific, the central finance will cover 85%, 90% and 95% of the subsidies in the eastern, central and western regions, respectively, significantly easing the local expenditure pressure. Additionally, local governments will be granted greater decision-making power. Apart from the categories with supporting standards clearly defined by the central financial authorities, a certain amount of funds will be allocated for local governments to conduct trade-ins for other categories of consumer goods in light of local conditions. The specific supported categories and standards will be determined by local governments to better unleash consumption potential.

That's all for my answer. Thank you.

ThePaper.cn:

Considering the current fiscal revenue and expenditure situation, how can local governments ensure a necessary level of spending intensity? What measures will the MOF take to better ensure sufficient fiscal strength of local governments? Thank you.

Wang Jianfan:

Thank you for your questions. From January to June, local general public budget revenue reached nearly 6.6 trillion yuan, with a year-on-year growth of 0.9%. The relatively small growth rate in the first half of the year can be attributed to several factors. First, tax deferrals for micro-, small and medium enterprises raised the base figure last year. Second, the continued decline in prices of some energy and mineral products has impacted the realization of general public budget revenue. Third, the policy introduced in the middle of last year to increase the special additional deductions for individual income tax has this year led to a delayed reduction in revenue. Additionally, land transfer revenue, which has garnered significant attention, amounted to 1.53 trillion yuan in the first half, a decrease from the same period last year but with a narrowing decline. Overall, local fiscal revenue growth showed a monthly rebound trend from January to June. During this period, local general public budget expenditures reached 11.8 trillion yuan. Monitoring indicates that expenditures for basic living needs, salary and governments function at the primary level are secure, and expenditures on key sectors such as social security, employment, education, agriculture, forestry and water resources are well protected.

Furthermore, as reflected in the 2024 budget report, the central government has increased transfer payments to local governments. The total central-to-local transfer payments for 2024 are 10.2 trillion yuan, with 8.99 trillion yuan already being allocated by the end of June, accounting for 88.1% of the total.

Comparing these figures, we see that in the first half of the year the central government allocated 8.99 trillion yuan in transfer payments, while local general public budget revenue was 6.6 trillion yuan and general public budget expenditures were 11.8 trillion yuan. From both the revenue and expenditure perspectives, fiscal resources are sufficient to cover expenditures.

In summary, local fiscal operations generally remain stable. Looking forward, the MOF will resolutely implement the decisions made at the third plenary session of the 20th Central Committee of the CPC, further deepen the reform of fiscal and taxation systems, improve the budget system, refine the fiscal transfer payment system and ensure that the fiscal resources of prefecture- and county-level governments are commensurate with their powers. Thank you.

Cnr.cn:

My question is about ensuring citizens' wellbeing. In recent years, China has invested significantly in society and people's livelihood, as was mentioned by the minister earlier. The third plenary session of the 20th Central Committee of the CPC also made new arrangements for ensuring the people's wellbeing. What work has the MOF done to promote a sound social security system and to support employment and medical services? Moving forward, what are the plans and considerations? Thank you.

Wang Dongwei:

I'll invite Mr. Lin Zechang to answer these questions.

Lin Zechang:

Thank you for your questions. Social security is closely tied to the people's wellbeing and social equity. Since the 18th CPC National Congress, the CPC Central Committee has placed the development of the social security system in an even more prominent position. In line with the decisions and deployments of the CPC Central Committee, the MOF has prioritized support for ensuring and enhancing the people's wellbeing, focusing on issues of concern to the general public. In 2023, nationwide fiscal expenditures on social security, employment and healthcare totaled 6.23 trillion yuan, accounting for 22.7% of the country's general public budget expenditures for the year. Pensions have steadily increased, and a multi-tiered and multi-pillar old-age insurance system has become more robust with a basic elderly care system taking initial shape. Subsidies for basic medical insurance have continued to be raised with the per capita government subsidies for basic medical insurance for rural and non-working urban residents increasing to 640 yuan, and the reimbursement rates for hospitalization expenses covered by basic medical insurance for urban employees and rural and non-working urban residents stabilized at 80% and 70%, respectively. Social assistance policies have become more targeted, with the average monthly standard for urban and rural subsistence allowances reaching, per person, 786 yuan and 621 yuan, respectively. The employment-first strategy has been fully implemented, promoting overall employment stability. Supporting policies on childbirth have been improved, and public-interest childcare service demonstration projects have been organized and carried out. In general, people's livelihood in fiscal funding arrangements has continued to be prioritized, ensuring people's living needs are better met.

The third plenary session of the 20th Central Committee of the CPC made new arrangements for ensuring people's wellbeing. The MOF will increase investment, improve mechanisms and work with relevant departments to effectively address the concerns of the people, in accordance with the requirements of the CPC Central Committee.

In terms of elderly care, we will improve the unified national management system for basic old-age insurance funds, refine the mechanisms for financing and adjusting benefits and gradually raise the basic pension benefits for rural and non-working urban residents under the basic old-age insurance scheme. We will provide supports to boost the supply of basic elderly services, work faster to shore up weaknesses in rural elderly care services and ensure that the basic elderly care needs of groups with special difficulties are met.

In terms of medical services, we will refine the mechanism for financing basic medical insurance for rural and non-working urban residents, deepen reforms of medical insurance payment methods, improve the unified management of major disease insurance and medical assistance scheme, and tighten oversight over medical insurance funds. We will improve the public health system and deepen the reform of public hospitals to see that they better serve the public interest. We will also strengthen the top-level design of the insurance schemes for long-term care.

In terms of employment, we will strengthen coordination and synergy with employment policies and make sure our efforts are aligned with them. We will enhance the employment support system for key groups, such as college graduates and migrant workers, develop a sound system for lifelong vocational skills training, and work hard to tackle structural unemployment.

In terms of childcare, we will improve the policy system and incentive mechanisms for boosting the birth rate, enhance the development of a public-benefit childcare service system, and strive to build a childbirth-friendly society.

That is all from me. Thank you.

N Video from Nanfang Metropolis Daily:

The MOF previously mentioned that more efforts will be made to strengthen coordination between fiscal and financial policies, allowing further leverage of fiscal funds. What measures will the MOF take to promote high-quality development of key areas such as micro and small enterprises, agriculture, rural areas, rural residents, and technological innovation? Thank you.

Wang Dongwei:

I will answer this question.

In recent years, while implementing proactive fiscal policies, we have placed great emphasis on coordinating with monetary, industrial and other related policies. We have effectively utilized tools such as fiscal interest subsidies, grants and subsidies, policy-based financing guarantees and policy-based finance, giving play to the leverage role of fiscal funds and encouraging more financial resources and nongovernmental investment into key areas such as modern industries, inclusive finance and green development. This approach promotes a high-level virtuous cycle among technology, industry and finance.

Here are a few points I'd like to introduce:

First, we will enhance the quality and effectiveness of the policy on providing subsidies for agricultural insurance premiums. In 2023, China's agricultural insurance premiums reached 140 billion yuan, among which nearly 80% were from government subsidies. This year, its agricultural insurance premiums are expected to reach 160 billion yuan. The agricultural insurance policy covers 16 bulk agricultural products, including grain, cotton and sugar, as well as over 500 local distinctive agricultural products, providing approximately 4.5 trillion yuan in risk protection for over 160 million farmer households. This year, the central government's budget for agricultural insurance premium subsidies is 56.2 billion yuan, with 19.3 billion yuan allocated for the comprehensive implementation of full cost insurance and planting income insurance for the three major staple grains (rice, corn and wheat) nationwide. In the second half of the year, we will also expand the coverage of full cost insurance and planting income insurance for soybeans in an orderly manner, to support and consolidate national food security and the supply of important agricultural products.

Second, we will strengthen government financing guarantees to support technological innovation. We have just launched a special guarantee plan to support technological innovation. By enhancing the risk-sharing and compensation efforts of the National Financing Guarantee Fund, we aim to encourage banks and policy guarantee institutions to strengthen financing support for technology-based small and medium-sized enterprises (SMEs). We have increased the maximum guarantee amount for a single enterprise from 10 million yuan to 30 million yuan, thereby mobilizing more financial resources to support technological innovation.

Third, we will better leverage the guiding role of government investment funds. Currently, the central authorities are supporting the development of government investment funds, such as the National Integrated Circuit Industry Investment Fund and the National Manufacturing Transformation and Upgrade Fund, to drive nongovernmental investment, thereby effectively supporting the implementation of major national strategies. For example, the National SME Development Fund, with a total scale of 35.7 billion yuan, has invested in 42 sub-funds, helping these projects raise more than 480 billion yuan in new equity financing. In addition, more than 70% of the fund has been invested in over 1,200 newly established SMEs. Moving forward, we will further enhance the leverage role of government investment funds to support the rapid development of new industries, new models and new growth drivers.

Fourth, we will thoroughly implement the policy of providing fiscal subsidies for interest payments, which is also a key measure for equipment renewal. The central government will pay 1.5% of the interest payments of those qualified business entities for two years. Totaling 20 billion yuan, such fiscal subsidies will support these business entities in equipment renewal and technological transformation, which are expected to drive related loan volumes to over 660 billion yuan. We will actively, prudently, and orderly advance the pilot program for providing loan interest subsidies to develop high-standard farmland, guiding more financial resources and nongovernmental investment into the agricultural sector.

Lastly, we will strengthen agricultural credit guarantee services. As of the end of June, there were 1.1 million agricultural credit guarantee projects nationwide, with an outstanding balance of 395 billion yuan. Moving forward, we will increase support for new agricultural business entities and make greater efforts to enhance credit guarantee services for the production of key agricultural products such as grain and soybean oil.

That is all from me. Thank you.

Xing Huina:

Thank you to all the speakers and participating journalists. Today's press conference will end here. Goodbye, everyone.

Translated and edited by Wang Yiming, Wang Qian, Liu Sitong, Wang Yanfang, Zhang Rui, Huang Shan, Qin Qi, Li Huiru, Lin Liyao, Zhang Junmian, Li Xiao, Wang Ziteng, Liu Caiyi, Wang Wei, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Zhao Zenglian, 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

Mr. Lin Shaobin, deputy director general of the Department of General Operation of the GACC

Chairperson:

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

Date:

July 30, 2024

Xing Huina: 

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we are joined by Mr. Zhao Zenglian, vice minister of the General Administration of Customs of China (GACC), who will brief you on relevant progress and take your questions. Also present at today's press conference are Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC; and Mr. Lin Shaobin, deputy director general of the Department of General Operation of the GACC.

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

Zhao Zenglian:

Thank you. Good morning. I would like to start by extending my appreciation for your long-standing interest in and support for our work concerning the customs sector. Also, a special thank you to everyone for attending the press conference on a rainy day.

On Sept. 11 last year, in a letter replying to workers in the Khunjerab Pass, a land port on the China-Pakistan border in China's Xinjiang, General Secretary Xi Jinping specified the duties and missions of customs authorities in safeguarding borders and driving development. He emphasized that customs authorities should uphold security at the nation's borders while promoting high-quality development and high-level opening-up. This provides overall guidance and principles for the work of the customs sector. Since the 18th National Congress of the Communist Party of China (CPC) in 2012, customs authorities have strived to create a new chapter in high-quality development, making specific progress in the following aspects.

Safeguarding borders means firmly guarding the red line of border security and providing strong support for achieving high-quality development.

Specifically, customs authorities have resolutely safeguarded people's well-being and safety by strictly enhancing border health and quarantine work, which serves as the first line of defense, and by implementing stringent inspections for imported foods and merchandise. In the first half of the year, customs authorities nationwide identified a total of 29,000 cases of infectious diseases and more than 30,000 batches of food and merchandise that failed to meet health certification standards.

We have resolutely safeguarded the country's biosecurity at the nation's borders and strictly prevented the introduction of alien invasive species. In the first half of the year, customs authorities nationwide intercepted pests a total of 37,000 times.

We have resolutely safeguarded political, economic and comprehensive security at ports, strengthened port supervision, comprehensively enhanced tax administration, and maintained a tough stance against trafficking. In the first half of the year, customs authorities nationwide supervised a total of 2.73 billion metric tons of imports and exports, collected 1.05 trillion yuan (about $145.3 billion) in tax, and filed and investigated over 3,000 cases of smuggling offences and crimes, with a value in excess of 54 billion yuan.

We have also resolutely applied a holistic approach to national security, shouldered our political responsibility of safeguarding border security in a steadfast manner, and firmly protected the defense line at ports, the red line of supervision, as well as the fundamentals of security.

In addition, driving development means continuously reforming and improving customs supervision mechanisms and institutional arrangements, while enhancing supervision efficiency and service capacity. The aim is to contribute customs authorities' wisdom and strength to achieving high-quality development.

Specifically, customs authorities have introduced more high-quality policy measures. In recent years, we have rolled out nine policy packages in succession, comprising a total of 209 measures, to ease business difficulties, facilitate foreign trade and stabilize growth. We have also introduced 12 policy packages, containing 227 measures, to enhance regional coordination.

We have strived to foster a world-class port-based business environment that is market-oriented, law-based and internationalized. In collaboration with relevant government bodies and local governments, we have launched special initiatives for cross-border trade facilitation for seven consecutive years. This year's initiative has already been carried out in an orderly manner across 13 provinces, districts and municipalities, and 20 cities.

We have strived to build high-level opening-up platforms. We have continuously enhanced innovation in customs supervision mechanisms concerning comprehensive bonded zones and pilot free trade zones (FTZs). We have also provided strong support for the establishment of new hubs for opening-up, such as the Hainan Free Trade Port, the Guangdong-Macao In-depth Cooperation Zone in Hengqin, and the Shanghai Eastern Hub International Business Cooperation Zone. Among the seven batches of pilot FTZ development experiences that the State Council has deemed applicable to other regions, customs authorities have contributed over 38%.

We have also expedited the development of new growth drivers in foreign trade. We have advanced reforms in customs supervision for cross-border e-commerce, and supported the development of new business forms such as those involving market procurement, overseas warehouses and bonded maintenance. Additionally, we have taken a more proactive approach in providing service for trade involving the "new trio," namely, electric vehicles, lithium-ion batteries and photovoltaic products, as well as intermediate goods.

Since the 18th CPC National Congress, China's foreign trade has grown by an average of 1.6 trillion yuan annually, an amount equivalent to the yearly foreign trade volume of a medium-sized country. China has topped the world in total volume of trade in goods for seven consecutive years, becoming a major trade partner for more than 150 countries and regions. Currently, the number of foreign trade businesses in the country has doubled compared to 2012. Exports of automobiles, integrated circuits and lithium-ion batteries, which are high-tech and green products with more added-value, have increased in 2023 by 730%, 180% and 1,520%, respectively, compared to 2012. These statistics objectively prove that since the 18th CPC National Congress, the scale of China's foreign trade has increased, its structure has improved, and its vibrancy has enhanced.

Reform is crucial in fulfilling our dual mission of safeguarding our borders and promoting growth, while also driving high-quality development.

The GACC has evolved through opening up and thrived on reform. Over the past 46 years, reform has been the cornerstone of our operations. We have progressed from paper-based to paperless clearance, from mutual exchange of information, mutual recognition of inspection results and mutual assistance in law enforcement to nationwide integrated clearance. Customs, inspection, and quarantine procedures, which used to involve two separate enforcement actions and two sets of procedures, are now streamlined into a single declaration, inspection, and release process. Reform has consistently empowered and enhanced customs supervision and clearance processes, significantly improving the safety, efficiency, and speed of procedures for goods, items, postal parcels, and personnel. We have largely achieved the reform goals of effective control, liberalized processes, and rapid clearance. These improvements have significantly enhanced the sense of security and satisfaction among businesses and the public.

The third plenary session of the 20th CPC Central Committee has made sound plans and systematic arrangements for further deepening reform comprehensively to advance Chinese modernization. In response, the GACC has swiftly mobilized. Last week, our Party committee organized a special meeting to discuss implementation, followed by a two-day training session for customs leaders nationwide. We've aligned our reforms with the broader context of China's modernization, focusing on intelligent customs systems. Our goal is to modernize customs services further, boosting China's modernization.

That's all for my introduction. Next, my two colleagues and I are ready 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.

CMG:

During your introduction, you described China's foreign trade as larger in size, more optimized in structure, and stronger in vitality since the 18th CPC National Congress in 2012. Could you further elaborate on this? How should we understand the high-quality development of China's foreign trade? Thank you.

Zhao Zenglian:

Thank you for your question. China's foreign trade volume has grown remarkably since the 18th CPC National Congress in 2012. By 2023, the total value of imports and exports increased by over 17 trillion yuan ($2.34 trillion) compared to 2012 – a figure comparable to the annual trade volume of a leading global trade nation. During the same period, the total volume of goods under customs supervision also grew by 54.5%. As we enter the new era, the focus has shifted toward high-quality development as China's foreign trade continues to expand. I'd like to elaborate on this by focusing on the following aspects:

First, innovation has strengthened the foundation of China's foreign trade development. In 2023, exports of high-tech products increased by 6% year on year, comprising 18.7% of total export value. Independent and innovative brands have enabled Chinese products to gain rising popularity overseas, ranging from traditional horse-faced skirts to multifunctional electronic products. Independently branded product exports grew by 9.3% in 2023, accounting for 21% of overall exports. 

Moreover, sustainability has become a hallmark of China's high-quality foreign trade development. Four of every 10 exported cars are electric, seven of every 10 exported railway locomotives are electric, and nearly 90% of exported batteries are lithium-ion. These figures demonstrate the sustainable nature of China's exports.

Recently, some have made exaggerated claims about supposed "overcapacity" in China's new energy industry. This is actually a false proposition that neither aligns with reality nor conforms to the laws of economic development. Take new energy vehicles, for example. The International Energy Agency estimates global electric vehicle (EV) sales will reach about 45 million units by the end of 2030. This figure is three times the global EV sales volume and five times China's EV production volume in 2023. Far from being in surplus, China's new energy products enrich the global supply of green goods and contribute to the global fight against climate change. The third plenary session of the 20th CPC Central Committee has further specified institutional guarantees for green development. In the future, China's green industry is bound to develop even better.

Third, coordinated regional development has consolidated the foundation of foreign trade. The eastern region remains pivotal to China's foreign trade, with total imports and exports exceeding 30 trillion yuan for three consecutive years. The central and western regions have effectively undertaken the country's industrial transfer, with the share of foreign trade increasing by nearly 7 percentage points. The three northeastern provinces have seen expanded foreign trade, with a growth rate nearly 1.6 percentage points faster than the national average. The Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and other major regional development strategies have become the main driving force of foreign trade, contributing nearly 60% of foreign trade growth since the 18th CPC National Congress in 2012.

China's pursuit of high-quality development has also provided our global trading partners with extensive market opportunities. The customs authorities have steadfastly implemented strategies to increase imports, expanding market access in an orderly manner. At present, more than 500,000 foreign companies are now registered with the GACC to import food and agricultural products. Since the 18th CPC National Congress, our country has seen its cumulative imports surpass 150 trillion yuan, achieving an average annual growth rate of 4.2%. Notably, there has been rapid growth in imports of consumer goods, including fruits, cosmetics, and maternal and infant products. The fundamental principle I aim to highlight is that the development of foreign trade is not founded on unilateral protectionism but on openness and cooperation that benefit all parties involved. The "small yards with high walls " strategy leads to nothing but self-isolation. The path to prosperity and progressive development inevitably lies in openness and sharing.

Moving forward, in accordance with the arrangements and requirements set forth by the third plenary session of the 20th CPC Central Committee, Chinese customs authorities will work toward new heights in institutional openness, continue to advance innovative policies and regulatory reforms in comprehensive bonded zones, optimize the innovation mechanism for the customs supervisory system in pilot free trade zones, and establish customs regulatory models that meet the demands of new quality productive forces. Our efforts aim to nurture a regulatory environment conducive to new business forms and models, including cross-border e-commerce, overseas warehousing, market procurement, and bonded maintenance. We will also strengthen research into foreign technical measures in trade and fully leverage customs' international cooperation consultation mechanisms. We will strive to eliminate unreasonable foreign technical trade measures, safeguard business entities engaged in foreign trade, and promote the sustainable, high-quality development of foreign trade. Thank you.

Phoenix TV:

We are interested in imports. In recent years, China has launched a series of policies to actively expand imports. The country has also ranked as the world's second-largest importer for many consecutive years. Could you elaborate on how China intends to share its development opportunities with the world through expanding imports? What specific measures and plans have the customs authorities implemented to expand imports? Thank you.

Zhao Zenglian:

You've raised excellent questions. There's a well-known saying, "A single flower does not herald spring; it is when a hundred flowers bloom that spring truly arrives in the garden." I would like to invite my colleague Mr. Lyu to answer your questions.

Lyu Daliang:

Since the 18th CPC National Congress, our country has implemented policies and measures to actively expand imports. Notably, we have established the world's first national import-themed expo, the China International Import Expo (CIIE), held annually for six consecutive years. The expo, celebrated as the "golden gateway" to the Chinese market, vividly demonstrates our commitment to sharing our development achievements with the world. We have expanded market access in an orderly manner, including approving the import of 477 varieties of high-quality agricultural products based on scientific assessments. We have also unilaterally opened our markets wider to the least developed countries, aimed at promoting mutual growth. Additionally, we have voluntarily reduced tariffs, resulting in the country's overall tariff level of 7.3%, which aligns closely with the average level of developed countries.

According to statistics, our efforts to expand imports have yielded substantial results. As previously noted, China has maintained its position as the second-largest importer for many years, with total imports rising from 11.49 trillion yuan in 2012 to 17.99 trillion yuan in 2023. Our consumer market continues to grow, driving cumulative imports of consumer goods to surpass 16 trillion yuan. The opportunities provided by the Chinese market benefit countries worldwide. In 2023, our imports originated from over 200 countries and regions worldwide, with imports of agricultural and electromechanical products from the least developed countries doubling from 2012.

We have implemented various measures to fulfil the national directive to expand imports. For instance, we have tailored clearance facilitation measures for each CIIE. Since the inaugural 2018 CIIE, we have introduced the innovative measure to support bonded exhibition and trading on an ongoing basis, effectively making the expo's effects permanent. We have refined inspection and supervision procedures for bulk commodities such as energy resources. By adopting the "release before inspection" approach for low-risk mineral products, we have effectively reduced clearance time. For high-tech items requiring vacuum packing, light-proof packaging, or constant temperature storage, we have introduced a new supervisory model that minimizes port interventions, enhancing the security and efficiency of customs clearance. Additionally, we have established a "green channel" for fresh agricultural products and expedited port clearance for them, ensuring that imported fresh produce retains its freshness for longer.

The third plenary session of the 20th CPC Central Committee emphasized the need to seize the initiative by opening China's commodity, services, capital, and labor markets wider to the outside world in an orderly manner. China's door will only open wider. Moving forward, the customs authorities will implement the decisions and plans of the Party Central Committee, further innovate the supervision of import clearance and support the development of key open platforms, such as the CIIE and the China International Consumer Products Expo. Recently, we introduced the Facilitation Measures of the Customs for the Seventh China International Import Expo of 2024 and released the Customs Clearance Notice to facilitate smooth customs clearance for participating enterprises. We will also take prudent and well-ordered steps to expand market access for agricultural and food products, innovate inspection and quarantine modes as well as broaden the scope of pilot programs for "release before inspection" and third-party certification. This will provide improved customs clearance supervision and services, support the expansion of imports and turn China's huge market into a significant opportunity for the world.

That's all for my answer. Thank you.

Zhinews of Shenzhen Satellite TV:

Special customs supervision zones, with comprehensive bonded zones as the mainstay, are crucial platforms for the high-quality development of China's foreign trade. Could you please provide some information on this topic? What are the plans for the next steps? Thank you.

Zhao Zenglian:

I would like to invite Mr. Lin to answer. 

Lin Shaobin:

Thank you for your questions. Since the launch of reform and opening up, China has established six types of special customs supervision zones: bonded zones, export processing zones, bonded logistics parks, cross-border industrial zones, bonded port zones and comprehensive bonded zones. As mentioned by the reporter, these special customs supervision zones are key platforms for the high-quality development of China's foreign trade. The proportion of import and export value through these zones has increased from 2013 to 19.2% in 2023. These zones contributed nearly one-fifth of the country's total import and export value while occupying less than 0.005% of the national land area. Since the third plenary session of the 18th CPC Central Committee, we have actively promoted the integration of these special supervision zones into comprehensive bonded zones. Currently, there are 172 special customs supervision zones nationwide, including 165 comprehensive bonded zones. Comprehensive bonded zones have three main advantages, which I will briefly introduce.

First, comprehensive bonded zones offer a full range of business functions. These zones can engage in various activities such as processing and manufacturing, cross-border e-commerce and bonded maintenance. They are shifting from a model focused solely on external activities to one of two-way openness, both inward and outward. For example, according to the current national maintenance product catalog, bonded maintenance services can now be carried out within the zones. We have fostered the coordinated development of comprehensive bonded zones and free-trade zones, and supported enterprises in developing bonded aviation maintenance services. For instance, at Xiamen Port bonded aviation maintenance services achieved an import and export value exceeding 160 billion yuan in 2023, serving over 100 airlines across dozens of countries and regions, and delivering excellent results.

Second, comprehensive bonded zones benefit from favorable tax policies. These zones enjoy various tax incentives, including bonded policies, tax rebates and tax exemptions. Goods entering the zones from abroad are subject to bonded policies. Goods entering the zones from domestic areas are treated as exports and are eligible for tax rebates. Additionally, machinery, equipment and office supplies needed for production within the zones are exempt from import duties and value-added taxes.

Third, comprehensive bonded zones facilitate the circulation of goods. Over the years, the customs authorities have continuously reformed and innovated their supervision and service methods. On one hand, enterprises within the zones can easily transfer bonded goods through account management. On the other hand, enterprises can use vehicles of their own choosing, allowing bonded goods to move conveniently between different zones. The advantages in processing and logistics within comprehensive bonded zones have attracted clusters of advanced manufacturing industries, such as the electronic information manufacturing industry. For example, Chongqing, leveraging its comprehensive bonded zones, has achieved the highest global production and sales volume of laptop computers for eight consecutive years.

The third plenary session of the 20th CPC Central Committee emphasized the need to develop new institutions for a higher-standard open economy. Moving forward, the customs authorities will continue to enhance the vitality and competitiveness of comprehensive bonded zones by focusing on five aspects: policy supply, function expansion, procedure simplification, process optimization and system improvement. Our goal is to elevate the development of comprehensive bonded zones to higher levels, broader dimensions and deeper fields. Thank you.

The Poster News APP:

The business environment at ports directly impacts the efficiency of international trade. What measures has the customs administration implemented to enhance the business environment at ports, and what plans are in place for further improvement in this area? Thank you.

Zhao Zenglian:

Thank you for your question. As the lead agency in optimizing the port business environment, the GACC has spearheaded a special campaign to enhance cross-border trade for seven consecutive years. We've collaborated closely with relevant departments and local governments, expanding our pilot program to 20 cities. Our efforts have focused on four key areas: implementing effective policies and measures, upgrading services, strengthening hardware, and building a platform.

We have implemented effective and practical policies and measures. For instance, we've established "green channels" for expedited customs clearance of fresh agricultural products, enabling priority inspection and prompt passage through customs for these items. As a result, imported cherries in the Beijing-Tianjin-Hebei region can now reach related wholesale markets from the port within five hours. Furthermore, we've eliminated the quarantine inspection requirement for seven categories of animal and plant products, including fresh vegetables and plant-derived Chinese medicinal herbs. This has significantly reduced the time and cost for enterprises during the customs clearance process.

Upgrading services means we have constantly optimized the supervision model and customs clearance procedures. For example, we introduced "ship side delivery" and "direct loading at port" so enterprises can unload their imported goods or load exported goods after completing relevant procedures in advance. We have innovated a linked unloading supervision model and realized a direct connection between goods from ports along the Yangtze River and Shanghai Yangshan Port. As a result, the transportation time for segments within China's borders has been reduced by half, and logistics costs have decreased by one-third. We also implemented the reform of "one-stop laboratory testing," streamlining procedures for tax-related tests with different requirements into a process of "sampling once, submitting for testing once, and receiving results once."

Strengthening hardware means we use advanced facilities and equipment as well as next-generation digital technologies to improve the efficiency of supervision. For example, we use unmanned aerial vehicles (UAVs) to assist customs officers in checking grain and other bulk commodities. UAVs can fly directly into a ship's hold to fetch samples, and robots can replace or assist customs officers in inspecting hazardous goods with risks of explosion, leakage or biosafety. We are implementing a port modernization project. Currently, 56 ports in 21 regions are being transformed into smart ports.

Building a platform refers to creating a comprehensive cross-border service platform featuring "one-stop, big data, multi-function, standardization and convenience" through the "single window" of international trade. The platform has realized direct integration with more than 30 departments and built and launched 889 service functions across 24 categories. At present, the number of registered users has reached more than 8.8 million, with a daily declared business volume of 26 million transactions. Thanks to this "window," enterprises do not need to run errands and can conduct business at any time.

We should continue to make the port business environment even better than it already is. Next, we will implement the requirements of the third plenary session of the 20th CPC Central Committee with a focus on the following three aspects: First, we will continue to optimize the mechanism of the special campaign to promote cross-border trade facilitation. We will comprehensively advance the implementation of border and post-border facilitation measures, improving customs clearance efficiency and logistics performance across the entire import-export chain. Second, we will institutionalize good practices and experiences, such as personally delivering favorable policies directly to enterprises' doorsteps and thoroughly addressing and resolving each and every one of their problems, further helping to ease the difficulties of businesses. We will implement 17 convenient measures for advanced certified enterprises, thus enhancing business entities' sense of gain. Third, we will further enhance the system integration of reform and innovation and strengthen port facilities and data sharing through the dual driving forces of deepening reform and scientific and technological empowerment. Thank you.

Cover News:

This year's government work report mentioned the Smart Customs initiative for the first time. The GACC also stated that the initiative started comprehensive implementation this year. Could you please elaborate on the current progress of this initiative and what will be the priorities for the next step? Thank you.

Zhao Zenglian:

I'll invite Mr. Lin Shaobin to answer the questions.

Lin Shaobin:

Thank you for your questions. The Smart Customs initiative is key to promoting customs reform. Driven by practical needs, technical support and social expectations, the development of Smart Customs has been fully unfolded and has already realized certain results. Here, I would like to highlight three keywords in this respect: security, convenience and efficiency.

First, security. We aim to construct an intelligent "Great Wall" which is supported by big data and intelligent equipment, safeguarding customs security by precisely preventing and defusing risks. For example, during machine inspection operations, we utilize intelligent technology to review images to accurately identify discrepancies between import and export declarations and shipments, smuggled goods and other risks. This also effectively detects the invasion of exotic pets and other foreign species. Furthermore, we precisely combat the smuggling of weapons, ammunition, drugs, and endangered species and their products.

Second, convenience. We continuously optimize customs procedures and streamline supervision to best facilitate the cross-border mobility of passengers and goods. For example, we are advancing smart passenger inspection by deploying innovative equipment, which includes integrated smart channels, advance machine inspection and collaborative robots, enabling passengers to experience seamless customs clearance. Recently, as China has relaxed visa-free policies, more international friends came to our country for travel, and have praised the new intelligent customs clearance experience at ports.

Third, efficiency. We extensively applied new technologies and intelligent equipment to effectively enhance customs operational efficiency in risk identification, supervision and inspection as well as enterprise services. For example, we implemented intelligent, non-intrusive, and streamlined supervision, enabling imported and exported goods to undergo machine inspection seamlessly during loading, unloading or transportation, thus achieving immediate inspection upon passing. We have also piloted remote inspection, allowing enterprises to complete inspection procedures remotely with customs.

The goal of the Smart Customs initiative is to achieve seamless customs clearance, intelligent supervision, minimal disruption and comprehensive regulation, utilizing the intelligent technologies to contribute to building a great country and to promote high-quality development of our country's foreign trade.

Aligned with the overall goals outlined at the third plenary session of the 20th Central Committee of the CPC, our next step will focus on process optimization, information sharing and system integration to accelerate the development of Smart Customs. We will pursue steady progress while highlighting key areas, aiming to establish the basic framework of Smart Customs by 2026 and form a complete system by 2029.

Of course, the Smart Customs initiative is currently still in its initial stage. To develop it well and fast, we need the support and attention from all sectors of society, especially the media. We welcome your valuable suggestions to inspire us. Thank you.

21st Century Business Herald:

In the first half of the year, China's total import and export value of goods hit a record high, and the export growth rate exceeded market expectations. What are the driving forces behind China's high-speed growth with importing and exporting? In the face of risks, such as the Red Sea crisis, can China's foreign trade continue to grow steadily in the second half of the year? Thank you.

Zhao Zenglian:

The public are probably concerned over these issues. I'll invite Mr. Lyu Daliang to answer the questions.

Lyu Daliang:

Thank you for the question. As we all know, we released the data on imports and exports for the first half of this year on July 12. Since then, there have been many comments from different perspectives. For example, some pointed out that our foreign trade in the first half of this year saw stable growth in terms of both quality and volume, with many highlights. Others commented on the emergence of new growth drivers in China's foreign trade half-year report, and some noted that China's export performance had exceeded expectations. Overall, in the first half of this year, our foreign trade reached a new high, with ample vitality from business entities, solid advantages from traditional growth drivers and continuous emergence of new ones. The foundation for sound and steady growth in foreign trade is solid, and the achievements are hard-earned and encouraging.

According to our analysis, the rapid growth of our foreign trade in the first half of this year is mainly due to three factors. First, macro policies have been firmly advanced, with various regions and departments earnestly implementing the arrangements of the Central Economic Work Conference, and the policy dividends continue to be released. Overall, our economy has performed stably while also ensuring progress, domestic production has grown steadily, and consumer demand has continuously recovered. All of these have provided strong support for stable growth in foreign trade. At the same time, the marginal improvement in external demand has also helped enterprises secure orders and expand markets. This has been reflected through various global economic and trade data, while the latest forecasts from institutions such as the World Bank and the Organization for Economic Co-operation and Development have all raised global growth expectations for 2024. The World Trade Organization's Global Trade Barometer has also stayed above the boom-bust line for two consecutive quarters. Additionally, our industrial system is complete, technological innovation drives industrial innovation and new quality productive forces spur new growth drivers in foreign trade. These factors enable us to provide innovative and high-quality products to the world.

As for the trend you asked about, the current external environment is increasingly complex, severe and uncertain, with high geopolitical risks. Some countries practice unilateralism and protectionism, and the interference caused to the global production and supply chains is gradually becoming apparent. As you mentioned, issues like the Red Sea crisis leading to shipping blockages and rising freight rates place increased cost pressures on enterprises. We believe that there are still many challenges to maintaining growth in foreign trade in the second half of this year.

Of course, encountering difficulties along the way is normal. Supported by the advantages of a super-large domestic market and a complete industrial system, and safeguarded by various policies to stabilize foreign trade, especially the strategic arrangements of the third plenary session of the 20th CPC Central Committee on deepening the foreign trade structural reform, the development of our foreign trade will be injected with strong momentum, ensuring steady and continued progress.

In accordance with the Party Central Committee and the State Council's decisions and plans, the GACC will continue to implement various policies and measures to stabilize foreign trade, boost the growth of trade in intermediate goods, support the imports of advanced technology and equipment as well as key components, and promote the development of cross-border e-commerce and other new business forms, focusing on consolidating the positive trend of foreign trade. Meanwhile, we will closely monitor changes in the situation, strengthen data monitoring and analysis, and reserve and provide a new round of customs clearance policies to help enterprises lower burdens and costs, working to steadily increase the volume and quality of foreign trade.

That is all for my answer. Thank you.

Science and Technology Daily:

We've noticed that the "China Customs" WeChat public account often publishes news about interceptions of invasive species. Could you please share what measures customs authorities have taken to guarantee biosecurity at the nation's borders? Thank you.

Zhao Zenglian:

Thank you for your question, and thank you for your interest in "China Customs." My colleagues and I also check the public account every day. Just this morning, "China Customs" released news about our frontline customs officers intercepting another invasive species at the port. Seeing news like that always gives me mixed feelings. On the one hand, I feel relieved, but on the other hand, I know that there is still a long way to go. I'm relieved because our customs authorities are able to strictly guard the port defense line and have achieved substantial results. However, there is "a long way to go," because the global situation regarding major infectious diseases, animal and plant epidemics and invasive species is still complex and severe, and the biosecurity at our nation's borders faces a complex and challenging situation.

Faced with a situation like this, the GACC is determined to safeguard the biosecurity at our national borders, striving to build a full-chain regulatory system and working diligently across the three lines of defense: overseas, at ports and domestically.

The first line of defense is strengthening overseas risk monitoring. We actively participate in international biosecurity cooperation and co-governance, paying close attention to the dynamic distribution of major overseas infectious diseases, plant and animal epidemics, and invasive alien species. We promptly warn against risks and defuse threats, ensuring strict inspection and quarantine. In the first half of the year, the customs authorities monitored more than 80 infectious diseases from more than 200 countries and regions. They issued 28 announcements, warning notices, and risk warnings in a timely manner, as well as eight bans related to animal epidemics.

The second line of defense is strict control over port quarantine and inspection. We have built smart ports, implemented intelligent quarantine procedures, and strengthened front-line investigations. We have implemented an overall disease prevention and control plan featuring "one policy per country, one policy per disease, and one policy per port" at each entry point. Supported by the approach of simultaneous detection of multiple diseases, we strictly prevent the spread of epidemics and diseases by implementing comprehensive prevention of multiple diseases. We have carried out a three-year special initiative to strictly prevent the invasion of alien species and leveraged technological tools such as AI-powered image inspection to ensure invasive species have nowhere to hide. This is also a result of the development of a smart customs system. In the first half of the year, the customs intercepted 2,071 alien species nationwide, including "exotic pets."

The third line of defense is strengthening cooperation in prevention and control within China. We have established port cooperation and data-sharing mechanisms with various departments, including health, disease prevention and control, agriculture and rural affairs, ecological environment, forestry and grassland, and immigration management. We have also collaborated with the Supreme People's Court and the Supreme People's Procuratorate to enhance penalties for illegal activities and build a strict prevention and control chain from entry at the border to the doorstep of households.

Recently, Gongbei Customs investigated our country's first case of illegal introduction of alien species. The relevant court department is currently hearing this case. The third plenary session of the 20th CPC Central Committee requires the full application of a holistic approach to national security. Looking ahead, customs authorities will focus on "firmly guarding national biosecurity at border entry points." To achieve this, we will further improve national systems of supervision, early warning, and prevention and control for biosafety and biosecurity. Additionally, we will establish and improve multi-channel risk monitoring and multi-point trigger early warning mechanisms. We will also bolster regional cross-border biosafety cooperation mechanisms and port risk joint assessment, prevention and control mechanisms, and enhance the ability to detect, warn and deal with risks at an early stage.

Protecting our nation's biosecurity at its borders demands the collective effort of all society. I'd like to take this opportunity to appeal to the public once again through our friends in the media: please refrain from illegally introducing or purchasing alien species. I would also like to ask all of you to help us spread awareness. Let's work together to protect our country's biological and ecological security. If you have any questions in this regard, please contact the customs hotline at 12360 for more information. Thank you.

China Financial and Economic News:

Cross-border e-commerce has been a hot topic in the economic field in recent years and has become a new driving force for foreign trade growth. Could you please elaborate on the latest development of cross-border e-commerce? What measures will customs authorities take to promote the development of cross-border e-commerce in the next step? Thank you.

Zhao Zenglian:

I will ask Mr. Lyu to answer your questions.

Lyu Daliang:

Thank you for your questions. The rapid development of cross-border e-commerce is a global phenomenon, building a direct bridge between more and more consumers and enterprises. I believe some of you may have a cross-border online shopping experience like me. Since the 18th CPC National Congress, China has rolled out a series of policies and measures, including establishing integrated pilot zones for cross-border e-commerce, improving and expanding the positive list of imported retail goods for cross-border e-commerce, as well as continuously developing new regulatory approaches for cross-border e-commerce customs clearance. These initiatives have promoted the accelerated development of China's cross-border e-commerce. According to customs statistics, China's cross-border e-commerce imports and exports in 2023 increased 1.2 times compared with 2018. Preliminary estimates show that imports and exports in the first half of this year were 1.22 trillion yuan, a year-on-year increase of 10.5%.

The robust growth of cross-border e-commerce has presented new challenges for customs oversight and services. Currently, customs authorities supervise more than 7 billion cross-border e-commerce express parcels and mail items annually, averaging about 20 million per day. In response to this situation, customs authorities have continuously developed new regulatory approaches, developed and applied cross-border e-commerce customs clearance service systems, and focused on improving the efficiency of cross-border e-commerce customs clearance. At the same time, practical measures have been taken to ensure that customs clearance is both fast and manageable. For example, we have carried out risk monitoring for imported food via cross-border e-commerce and sampling inspections for consumer goods. We've also launched a special initiative to comprehensively address the issue of "exotic pets" being shipped through cross-border e-commerce channels. These measures aim to ensure the quality and safety of cross-border e-commerce products and prevent the entry of prohibited items.

Chinese customs' regulatory practice on cross-border e-commerce has also provided experience for customs around the world. In 2018, we co-organized the first Global Cross-border E-commerce Conference with the World Customs Organization (WCO), and took the lead in drawing up the Framework of Standards on Cross-Border E-Commerce. Practical cases of Chinese customs' statistical methods for cross-border e-commerce have been continuously included in the Handbook on Measuring Digital Trade compiled by the World Trade Organization (WTO), the International Monetary Fund and the United Nations Conference on Trade and Development. We have actively participated in WTO's e-commerce negotiations and put forward our own suggestions. Chinese customs cross-border e-commerce commodity quality and safety control practices incorporate the WCO's good practice cases for cross-border e-commerce.

Next, Chinese customs will earnestly study and implement the spirit of the third plenary session of the 20th CPC Central Committee, and continuously improve the customs supervision system that is conducive to the development of cross-border e-commerce. Currently, we are working on promoting the inspection before shipment mode and have taken measures to expand the pilot scope of cross-border e-commerce retail export returns. We will also continue to optimize functions of the cross-border e-commerce customs clearance service system, further simplifying the process and optimizing services to better meet the needs of consumers and enterprises to "buy globally and sell globally." In short, we aim to make everyone's shopping experience smoother and help the country's cross-border e-commerce sector continue to develop with high quality. Thank you!

Xinhua Finance:

We have noticed that the central government in recent years has made a series of arrangements for coordinated regional development. What are the highlights of foreign trade development in relevant regions across the country? And what policies and measures has Chinese customs introduced to support coordinated regional development? Thank you. 

Zhao Zenglian:

Let's invite my colleague Mr. Lin to answer these questions. 

Lin Shaobin:

Thanks for your questions. Coordinated regional development is the internal requirement for achieving high-quality development. Since the 18th National Congress of the CPC, the CPC Central Committee has made more long-term and systematic strategic planning and overall arrangements for coordinated regional development, which has promoted both historical achievements and changes in coordinated regional development within the country, and has also injected surging momentum into Chinese modernization.

From the perspective of foreign trade, benefiting from the implementation of the national coordinated regional development strategy, regional foreign trade development is constantly moving towards a more balanced, higher level and higher quality direction, and each region also presents its own characteristics, complementary advantages and strengths.

The eastern region has borne the burden, contributing more than 70% to the country's foreign trade growth. The central and western regions have accelerated their development, with the average annual growth rate of imports and exports 4.5 percentage points higher than the national average. The imports and exports of the three northeastern provinces have set new records, reaching a historical high of 1.23 trillion yuan in 2023. In the first half of this year, imports and exports in the eastern, central and western regions and the three northeastern provinces all realized growth.

In particular, the Beijing-Tianjin-Hebei region, the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area have all played the important role as a source of foreign trade. The total foreign trade volume of the Beijing-Tianjin-Hebei region has crossed two-trillion-level mark, reaching a record high of 5.03 trillion yuan in 2023. With less than 4% of the country's land area, the Yangtze River Delta region has created more than one-third of the country's import and export value. Industrial clusters in the Guangdong-Hong Kong-Macao Greater Bay Area have outstanding advantages. In 2023, the nine mainland cities in the Greater Bay Area exported nearly 50% of the country's household appliances, nearly 80% of 3D printers and more than 90% of unmanned aircraft.

Chinese customs have aligned with the strategic deployment of the CPC Central Committee and the State Council's coordinated regional development, and has strongly supported coordinated regional development over the years. We have adopted a category-based and region-specific approach based on the unique advantages of different regions.

For example, we have established a unified "green channel" for key enterprises in the Beijing-Tianjin-Hebei region to develop key industries such as biomedicine, integrated circuits and artificial intelligence. We have vigorously promoted customs clearance facilitation in the Guangdong-Hong Kong-Macao Greater Bay Area, thus continuing to promote the reform of "combined ports" and "one port link" to connect inland ports with hub ports and "sea ports" to the "doorsteps" of enterprises through rivers. Taking Shunde's export of home appliances as an example, the logistics time has been shortened from seven days to about two days. We have also worked hard to create a favorable environment for foreign trade entities in developed regions with export-oriented economies, such as the Yangtze River Economic Belt and the Yangtze River Delta. We strongly support the opening of ports and the establishment of new comprehensive bonded zones in the central and western regions to create more and better platforms for local high-level opening up.

Next, we will introduce more and better targeted measures in accordance with the strategic deployment of coordinated regional development proposed by the third plenary session of the 20th CPC Central Committee. We will work together with everyone to draw a grand picture of coordinated regional development covering eastern, central and western China as well as synchronizing southern and northern China. Thank you!

Xing Huina:

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

Guangming Daily:

The third plenary session of the 20th CPC Central Committee proposed deepening the structural reform of foreign trade. How will Chinese customs implement the arrangements of the session and drive its self-reform to accommodate the new situation and new developments? Thank you.

Zhao Zenglian:

Thank you for your question. Studying and implementing the guiding principles of the session represent a major political task at present and for some time to come. Customs authorities nationwide have thoroughly studied and grasped the guiding principles of General Secretary Xi Jinping's important speeches and the plans and arrangements of the session, set off a rapid uptick in study and implementation, and worked with relentless persistence to ensure the implementation.

At present, the GACC has initially studied and formed a framework for implementation, which can be summarized as "1+1+4." The first "1" refers to one objective; the second "1" refers to one foothold ; and the "4" refers to four key tasks. The one objective is that in accordance with the overall objectives proposed by the session, we make timely adjustments to the overall plan for further deepening customs reforms comprehensively to advance the modernization of customs, ensuring that our objective is in line with the overall objectives proposed by the session and contributes to Chinese modernization through the modernization of customs. The one foothold is that we will advance the development of smart customs and the action on building a leading country in smart customs. Simply put, the four key tasks are as follows:

First, with a focus on advancing the modernization of China's national security system and capacity, we will further develop the customs' mechanism for safeguarding national border security. As the national customs authority with the largest trade in goods in the world, Chinese customs faces difficulties posed by various forms of trade, high demands of regulations, multiple risks and significant security pressure. In general, we will face and deal with five major risks including goods stuck in customs, concealed information, evasion of regulations, fraud, and threats to national security, people's health and eco-environment. As the Chinese idiom goes, virtue is one foot tall, the devil ten foot, meaning it takes constant vigilance to stave off evil. To tackle these issues, we must drive development through reform, boost vitality through innovation, and deepen reform of customs' supervision institutions and mechanisms. We have proposed improving three mechanisms: the mechanism for risk prevention and control, the mechanism for comprehensive regulation, and the mechanism for scientific and technological support. These mechanisms will solve prominent problems including how to accurately and efficiently identify and deal with risks, how to manage anomalies and safeguard the nation's borders, and how to realize intelligent and autonomous supervision.

Second, with a focus on improving institutions and mechanisms for high-standard opening up, we will further optimize the customs' mechanisms for promoting opening up and development. This is a topic you are also concerned about, which can be summarized into five areas. That is, we will put focus on building a high-standard socialist market economy, steadily expanding institutional opening up, conducting the structural reform of foreign trade, improving planning for regional opening up, and deepening institutional reforms related to the work of foreign affairs. We put forward 16 areas where we need to make breakthroughs. For example, to make breakthroughs in invigorating the foreign trade market, we will build a new type of customs supervision mechanism that is more efficient and fairer to ensure that we can lift market restrictions while ensuring effective regulation. This measure is based on credit rating-based regulation, risk classification, and categorized management. We will coordinate reform and sci-tech and implement intelligent supervision, ensuring that enterprises that break laws and regulations pay the price and smoothing the way for enterprises that have credibility.

Third, with a focus on enhancing socialist rule of law with Chinese characteristics, we will further improve customs regulations. Earlier this year, the Law on Customs Duties and the newly revised Frontier Health and Quarantine Law were promulgated successively, providing a more powerful legal basis for customs authorities to fully and effectively perform their relevant duties. We will further deepen reform comprehensively by improving customs laws and regulations, advancing reform and rule of law in a coordinated manner, and enhancing customs management institutions and mechanisms, to give better play to the role of the rule of law in consolidating foundations, ensuring stable expectations and delivering long-term benefits.

Fourth, with a focus on deepening institutional reforms related to the Party's leadership and Party building, we will further improve our institutions and mechanisms for exercising full and rigorous self-governance of the Party. Customs authorities are first and foremost a political organ. We will unswervingly uphold and strengthen the Party's leadership in further deepening customs reform comprehensively and improve our institutions and mechanisms for Party building as well as the working mechanism for ensuring that officials do not dare to be, are not able to be, and do not want to be corrupt. We will push forward a three-year action plan for enhancing capacities of customs workers, and advance the efforts of Party committees at three levels to raise their awareness of reform, strengthen their courage of reform and enhance their ability to reform, hence mobilizing the initiative, motivation and creativity of customs authorities to implement reform and promote development.

Regarding the above four key tasks, we have designed 59 measures. Next, we will further improve customs authorities' implementation plan focusing on the "1+1+4" general framework, clarify tasks, timings and priorities, make clear who are responsible for implementing these reforms, and flesh out their responsibilities. We will fulfill our duties and missions of safeguarding the nation's borders and promoting development, and serve well as guards for national borders to meet the expectations of the Party and the people, thereby contributing our efforts to Chinese modernization. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to the three speakers and all the journalists present here. Goodbye.

Translated and edited by Zhu Bochen, Wang Qian, Guo Yiming, Ma Yujia, Liao Jiaxin, Wang Wei, Liu Caiyi, Li Xiao, Zhang Tingting, Zhang Rui, Wang Ziteng, Liu Sitong, Mi Xingang, Li Huiru, Yan Bin, Huang Shan, Yang Xi, Wang Qian, Xu Kailin, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Hongzhi, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

Mr. Lin Qingmiao, director general of the Bureau of Enterprise Reform of the SASAC

Ms. Liu Shaowei, deputy director general of the Bureau of Financial Oversight and Operational Evaluation of the SASAC

Mr. Fang Lei, deputy director general of the Bureau of Scientific and Technological Innovation of the SASAC

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 26, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Wang Hongzhi, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), to brief you on relevant developments and answer your questions. Also present today are Mr. Lin Qingmiao, director general of the Bureau of Enterprise Reform of the SASAC; Ms. Liu Shaowei, deputy director general of the Bureau of Financial Oversight and Operational Evaluation of the SASAC; and Mr. Fang Lei, deputy director general of the Bureau of Scientific and Technological Innovation of the SASAC. Now, I'll give the floor to Mr. Wang for his introduction.

Wang Hongzhi:

Thank you. Good morning. At a time when the whole nation is deeply studying and implementing the guiding principles of the third plenary session of the 20th Central Committee of the Communist Party of China (CPC), I am very pleased to meet with you to introduce the situation of high-quality development of state capital and state-owned enterprises (SOEs). First of all, I would like to express my heartfelt thanks for your long-term care and support.

The just-concluded third plenary session of the 20th CPC Central Committee made major arrangements for deepening the reform of state capital and SOEs, fully reflecting the great importance that the CPC Central Committee with Comrade Xi Jinping at its core attaches to SOEs. People in this sector are deeply encouraged and excited. We will comprehensively and deeply study and understand, and effectively implement the decisions.

Since the beginning of the new era, the SASAC and centrally-administered SOEs have resolutely implemented the major directives of the CPC Central Committee and the State Council, firmly promoted high-quality development, and fully and faithfully applied the new development philosophy on all fronts. This has led to substantial, transformative changes in the reform and development of enterprises. Quality and efficiency have significantly improved, the intensity of sci-tech innovation has reached unprecedented levels, the layout and structure have been continuously optimized, the pace of high-quality development has been accelerated, and the strategic support of the state-owned sector has been brought into full play. These achievements can be seen in five areas:

First, the ability to create value has been significantly enhanced, providing a more solid foundation for the high-quality development of enterprises. We have continuously improved the high-quality development index system, implemented special actions such as quality and performance improvements, value creation and brand leadership, and continuously promoted enterprises to become stronger, better and larger. By the end of 2023, the total assets of centrally-administered SOEs reached 86.6 trillion yuan, 2.8 times that of the end of 2012. Added value, revenue and profits have all doubled compared with 2012. Efficiency indicators such as operating income profit margin and overall labor productivity have steadily increased, and the economic operation has maintained steady progress and improved in terms of quality and efficiency.

Second, the capability for sci-tech innovation has rapidly increased, providing stronger momentum for the high-quality development of enterprises. We have fully leveraged the advantages of the new system for mobilizing resources nationwide, making sci-tech innovation our top priority, deeply integrating into the national innovation system, optimizing the innovation ecosystem, strengthening innovation coordination, and focusing on breakthroughs in key and core technologies. During the 13th Five-Year Plan (2016-2020) period, the R&D investment of centrally-administered SOEs increased by an average annual rate of 14.5%. Over the past two years, R&D investment has exceeded 1 trillion yuan annually, achieving a series of landmark results in fields such as aerospace, deep sea, energy and transportation, and making significant breakthroughs in key materials and core components.

Third, the optimization and adjustment of the layout structure have been significantly advanced, providing broader space for high-quality development. We have focused on our main business, developed the real economy and built a modern industrial system. We have made substantial efforts in strategic reorganization and professional integration, leading to the restructuring and merging of 28 groups of 50 enterprises, and the establishment and acquisition of 15 centrally-administered SOEs. We have vigorously promoted the high-end, intelligent and green development of traditional industries, accelerated the formation of a systematic layout of strategic emerging industries, achieving a 32% growth rate in strategic emerging industry investment in 2023, with revenue exceeding 10 trillion yuan for the first time. The control and influence of the state-owned economy in important industries and key fields have been further strengthened, with new advantages in emerging sectors rapidly taking shape.

Fourth, major breakthroughs have been achieved in the reform of state capital and SOEs, further boosting the vitality of high-quality development of enterprises. We have stayed focused on our goals and adopted a problem-oriented approach to continue the implementation of a three-year action plan for SOE reform as well as an initiative to deepen and upgrade SOE reform. The modern corporate system with distinctive Chinese features has been continuously improved, and the reform to convert SOEs into standard companies has been fully completed. We have successfully relieved SOEs of their obligations to operate social programs and have resolved other longstanding problems they have experienced. Comprehensive breakthroughs have been achieved with reforms of the three systems of labor employment management, human resources and distribution. The state capital regulation system has fully leveraged its advantages in terms of specialization, systematization, rule of law and efficiency. A group of new modern SOEs have emerged, featuring new development models, new corporate governance, new operating mechanisms and new structures.

Fifth, the role played by the state-owned sector in serving the national economy and people's livelihood has been fully demonstrated, and the high-quality development achievements of enterprises have been shared among more people. We have maintained ‘for the people' as the essential attribute and have focused on serving the country's most fundamental interests. We have deeply implemented major regional strategies, actively undertaken major projects for the people's wellbeing such as the Sichuan-Xizang Railway and the west-to-east gas transmission project, solidly ensuring a stable and secure supply of basic energy and resources. Since 2013, the total tax and fee payments within the state-owned sector have exceeded 20 trillion yuan. The sector has also introduced and invested in various types of poverty alleviation funds that exceed 100 billion yuan, thus taking the lead in supporting the fight against major disasters and fully demonstrating the sector's sense of responsibility.

Next, we will resolutely implement the arrangements made at the third plenary session of the 20th CPC Central Committee, uphold and strengthen the Party's overall leadership over SOEs, deepen reform of state capital and SOEs, and work to refine the layout and structure of the state-owned sector. We will remain committed to helping state capital and SOEs get stronger, do better and grow bigger with their core functions and core competitiveness enhanced, making new contributions to building a great country and advancing national rejuvenation.

I will stop here for now. Next, my colleagues and I are willing to answer your questions. Thank you!

Xing Huina:

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

Xinhua News Agency:

The third plenary session of the 20th CPC Central Committee made strategic arrangements to further deepen reform comprehensively and to advance Chinese modernization. The resolution that was adopted at the session put forward a series of new requirements focusing on deepening reform of state capital and SOEs. What measures will the SASAC take to implement these strategic arrangements? Thank you.

Wang Hongzhi:

Thank you for your question. As I mentioned just now, the third plenary session made systematic plans to deepen the reform of state capital and SOEs, providing both directional guidance and practical requirements as well as serving as a program of action for our work on state capital and SOEs on the new journey. This week, the SASAC held seminars for heads of central government-owned enterprises and heads of SASAC local offices to study and implement the guiding principles from the session. We initially consider focusing on five aspects:

First, we will remain committed to helping state capital and SOEs get stronger, do better and grow bigger. This is the leading goal in deepening reform of state capital and SOEs. We will continue to accelerate the removal of systematical institutional barriers that impede development through reform, so as to appropriately expand and effectively upgrade the economic output of enterprises, increasing their control and influence capacity in key industries and areas as well as providing strong support for stable and healthy economic and social development.

Second, we will accelerate the formation of new relations of production that are more compatible with new quality productive forces. This is a distinct direction of deepening reform for state capital and SOEs, as well as a defining fact of our time. We will seize the opportunities of a new round of scientific and technological revolution and industrial transformation as well as accelerate the improvement of systems and mechanisms conducive to original innovation, the development of strategic emerging industries and the stimulation of talent vitality. We will also promote the spirit of outstanding entrepreneurs and scientists, advance reforms in organizational structures, operating mechanisms and management systems, and channel various types of advanced production factors toward the development of new quality productive forces.

Third, we will enhance core functions and improve core competitiveness. This is the fundamental requirement for deepening reform of state capital and SOEs. We will focus on the country's needs and most fundamental interests, continuously increasing the functional value of SOEs to forge their unique competitive advantages, and promote enterprises to better fulfill their economic, political and social responsibilities.

Fourth, we will fully deliver on the key reform tasks defined by the plenary session. At the level of the state-owned sector of the economy, our main focus is on refining the layout of the state-owned sector and adjusting its structure as well as steering state capital toward major industries and key fields that are vital to national security and serve as the lifeblood of the national economy, toward sectors such as public services, emergency response, and public welfare, which concern our country's prosperity and our people's wellbeing, and toward forward-looking and strategic emerging industries. At the state-owned enterprises (SOEs) level, the emphasis is on refining the modern corporate system with distinctive Chinese features and building more world-class enterprises. At the state capital supervision level, our focus is on improving the institutions and mechanisms for management and oversight, strengthening strategic coordination and improving regulatory effectiveness. We will also encourage enterprises to boldly innovate and pioneer, implement differentiated and tailored reform measures according to actual conditions, and to fully stimulate enterprise vitality.

Fifth, it is especially important to uphold and strengthen the Party's overall leadership. The fundamental guarantee for successfully completing the reform tasks laid out in the third plenary session is the leadership and capacity building of the Party. We will implement the guiding principles from the national meeting on building the role of the Party within SOEs, ensure that Party leadership is exercised in every aspect and throughout the entire process of reform, leverage the important role of the Party committees (the leading Party members groups) of state-owned enterprises in the governance system, promote the deep integration of Party building with production and operations, and ensure that the reform always moves in the right direction and achieves the anticipated results.

To conclude, in the current and upcoming period, the sector of state capital and central SOEs will treat the study and implementation of the guiding principles of the third plenary session of the 20th CPC Central Committee as a major political task. We will comprehensively study, fully grasp and thoroughly implement these guiding principles, while transforming the strategic tasks arranged by the CPC Central Committee into specific actions and measures. We will forge ahead with even greater vigor to improve and strengthen our work related to state capital and central SOEs, thereby adding new momentum to the advancement of Chinese modernization. Thank you!

National Business Daily:

We have noticed that promoting the coordinated development of state-owned and private enterprises is one of the key reform tasks in the new round of deepening SOE reform. Could you please update us on the progress of this initiative? What are the main considerations and plans for the next step? Thank you.

Wang Hongzhi:

Thank you for your questions. Working unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector is an important part of China's fundamental economic systems, and is also a strength of our system. There is a consensus that both SOEs and private enterprises are important entities in our national economy, with each playing a significant, indispensable and irreplaceable role. The SASAC has always placed great importance on the coordinated development of SOEs and private enterprises. Specific work plans have been formulated to guide and promote deep cooperation between SOEs and private enterprises in order for them to learn from each other's strengths and to compensate for each other's weaknesses, fostering mutual promotion and growth. This has achieved positive results. For more details, I will let Mr. Lin Qingmiao provide further information.

Lin Qingmiao:

Further leveraging the leading role of SOEs to promote the coordinated development of state-owned and private enterprises is a key task in deepening SOE reform. It is also an important cornerstone for building a high-level socialist market economy. In recent years, in the process of creating a new pattern of development and promoting high-quality development, we have been solidly advancing mutual promotion and coordinated development between state-owned and private enterprises. This can be summarized into "four cooperations":

The first is cooperation at the capital level. Since the initiative to deepen SOE reform, central SOEs have actively engaged in equity cooperation with private enterprises and other social capital, with amounts exceeding 390 billion yuan. As of now, central SOEs have invested in over 13,000 companies of various types through shareholding, thus achieving significant progress in capital cooperation between state-owned and private enterprises.

The second is cooperation along the industrial chains. Central SOEs have initiated joint actions, collaborating with upstream and downstream enterprises to reinforce and upgrade the weak links in the industrial chains, and to extend and solidify the industrial chains. This initiative drives the coordinated development of over 5,700 business entities. Behind each "chain leader" company there are numerous private enterprises participating and cooperating.

The third is supply chain collaboration. Central SOEs have lowered procurement thresholds and reduced transaction costs during the procurement process, thus strongly supporting the development of the private businesses. Currently, among the more than two million enterprises in the upstream and downstream supply chains that are directly driven by central SOEs, 96% are private small and medium-sized enterprises.

The fourth is cooperation in scientific and technological innovation. In strategic emerging industries and key areas for future-oriented industries, central SOEs have led to the establishment of 24 innovation consortia, collaborating with private enterprises, universities and research institutes to tackle key challenges. We have made breakthroughs in developing a large number of core technologies with independent intellectual property rights in key fields, such as industrial software, industrial mother machines, computing power networks, and new materials, etc. These advancements have made significant contributions to achieving greater self-reliance and strength in science and technology.

Next, we will improve the rules and institutions for cooperation between various enterprises including SOEs and private enterprises, continue to carry out the coordinated development and project promotion and partnering of SOEs and private enterprises, guide SOEs to build a collaborative and win-win supply chain ecosystem, encourage SOEs to expand openness and sharing of innovative resources, give full play to the strength of SOEs, private enterprises and other types of enterprises in resources, and continue to deepen cooperation for common development. Thank you!

21st Century Business Herald:

We have noticed that the overall production and business operation of central SOEs gained good momentum in the first half of this year. What are the features and highlights that are worthy of attention? What key measures will be put in place during the second half of the year that will further promote the high-quality development of central SOEs? Thank you.

Wang Hongzhi:

I would like to invite Ms. Liu to answer your questions.

Liu Shaowei:

Thank you for your interest in the production and operation of central SOEs. Since the beginning of this year, central SOEs have carried out special actions in a solid way to enhance quality and efficiency. Their economic operations have shown good development trends with stability, structure, quality and efficiency, which has effectively played a role as an anchor and ballast for the national economy. The main highlights and features can be summarized as the following, namely, "being stable in three aspects and showcasing excellence performance."

First, stable production and operation. In the first half of the year, the production and operation of central SOEs were stable and orderly, and the output of key products maintained a steady growth. For example, electricity generation and sales increased by 5.3% and 8.9% year on year, respectively, crude oil output saw a 0.9% year-on-year growth and raw coal output increased by 1.2% year on year.

Second, stable value creation. Their total profit reached 1.4 trillion yuan, an increase of 1.9% year on year. Net profit and net profit that is attributable to shareholders increased by 1.3% and 2.1% year on year, respectively, maintaining a coordinated growth with total profit.

Third, stable contributions to society. They have paid a total of 1.3 trillion yuan in taxes and fees, an increase of 0.5% year on year. The completed fixed asset investment increased by 3.3% year on year; in particular, investment in strategic emerging industries grew by 16.9% year on year and accounted for over 37% of total investments.

Their excellent performance is reflected in operating quality and efficiency. Their cumulative R&D investment reached 434 billion yuan, a year-on-year increase of 2.7%. The labor productivity on an annualized basis reached 789,000 yuan per person, a year-on-year increase of 4.6%. The revenue profit margin reached 7.4%, an increase of 0.3% year on year.

In the second half of the year, facing a complex external environment, we will focus on developing new quality productive forces and effectively advance better high-quality development of central SOEs through "three increases," "three new investments" and "three boundaries" management. "Three increases" mean that we will take the lead in increasing the production and supply of coal, electricity, oil and other important basic products, as well as transportation capacity, in a bid to ensure "increased supply;" we will make a concerted effort to enhance the efficiency of business operations, management and reform, in a bid to ensure "increased benefits;" and we will actively serve the national strategy to drive the common development of upstream and downstream industrial chains, in a bid to ensure "increased investment." "Three new investments" mainly refer to increasing investment in scientific and technological innovation and accelerating breakthroughs in technical bottlenecks in key areas; increasing investment in industrial renewal and accelerating the layout of new industries in new arenas; increasing investment in equipment renewal and accelerating the transformation and upgrading of traditional industries. The "three boundaries" management mainly refers to firmly observing financial boundaries, strictly controlling the rapid growth of debt scale while also relying on the treasury system to strengthen real-time penetration and intelligent supervision and resolutely upholding the bottom line of no major risks; stringently observing business boundaries, controlling irrelevant and excessive diversification, and concentrating superior resources to optimize main business and to strengthen the industry; strictly observing corporate boundaries, controlling the disorderly expansion of multi-layer structures, vigorously compressing management levels, reducing equity levels and the number of legal entities, and plugging management loopholes. Thank you!

CCTV:

In the current SOE reform, "enhancing core functions" has become a high-frequency word. Could you please introduce what SOEs have done in recent years to serve the country's economic and social development? What are the key arrangements for the next stage in this regard? Thank you.

Wang Hongzhi:

Thank you for your questions. Strengthening core functions is a clear requirement set by General Secretary Xi Jinping and the CPC Central Committee for SOEs. In recent years, the SASAC has guided central SOEs to focus on their mission and responsibilities, and advanced their efforts to assume duties with a holistic view and based on the overall situation, making positive contributions to economic and social development. These efforts are mainly reflected in three aspects.

First, central SOEs have created great material wealth, offering powerful support for increasing the country's economic strengths. As was mentioned in the opening remarks, central SOEs over the past decade have experienced a remarkable surge in their assets, revenue and profits. Central SOEs have contributed roughly one-seventh of the total national tax revenue through taxes and fees. Moreover, they submitted 1.5 trillion yuan of state capital gains and transferred 1.2 trillion yuan of state assets to social security funds. In 2023, central SOEs invested 5.1 trillion yuan in fixed assets, an 11.4% year-on-year increase, surpassing the growth rate of total fixed asset investment by 8.4 percentage points. This has bolstered confidence to stabilize social expectations.

Second, central SOEs have created significant strategic assets, offering strong support for the implementation of major national arrangements. They provide nearly 100% of the country's basic telecommunications services, 96% of power grid coverage, 67% of oil refining capacity, 54% of installed power generation and 25% of coal production. Central SOEs have served a crucial role in safeguarding energy resources and food security. They have actively contributed to the country's major strategies with regional development, including the large-scale development of the western region, the revitalization of northeast China, the rise of central China, and the trailblazing development of the eastern region. They have also provided effective support for the construction of the Xiong'an New Area and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin. Moreover, we have actively expanded our international business layout, significantly facilitating the systematic export of China's technology, equipment and products.

Third, central SOEs have created great social benefits, providing strong support for ensuring and improving people's livelihood. They have proactively contributed to rural revitalization efforts, and successfully completed the task of offering assistance to 246 key impoverished counties designated in the national poverty alleviation efforts. They have taken the lead to promote green development, reducing the energy consumption per 10,000-yuan output value by 17% during the 13th Five-Year Plan period (2016-2020). Central SOEs have also made great efforts to help small- and medium-sized enterprises (SMEs) overcome difficulties, such as maintaining low prices for telecom services, ensuring uninterrupted power supply for those in arrears during the pandemic, waiving rents as much as possible, and establishing industrial chain financial platforms to address financing challenges for enterprises upstream and downstream. Central SOEs are committed to ensuring the supply of energy resources and power, and have participated in emergency rescue and disaster relief. After a dike breach occurred in Dongting Lake earlier this month, central SOEs in the construction sector transferred over 100,000 tons of rock and enterprises such as the China Anneng Construction Group Corporation worked day and night to plug the breached dike. Thanks to these efforts, the task was brought to completion 13 hours ahead of schedule. Throughout this period, enterprises in the sectors of energy, power, telecommunications and food maintained uninterrupted 24-hour services, demonstrating central SOEs' strong sense of duty in tough situations.

Going forward, we will make stepped-up efforts to enhance the "values" in five aspects in a bid to ensure that enterprises can better fulfill their functions and responsibilities. First, we will enhance the added value. This aims to increase the overall contribution of central SOEs to GDP, and carry out added value accounting of the public sector. Second, we will enhance the function value. To achieve this, we will establish an evaluation system for state-owned enterprises in fulfilling their strategic missions so that we're able to evaluate enterprises' operational performances and their overall contributions in a more scientific manner. Third, we will improve the added value of economy. To achieve this goal, we will strengthen the mindset of "calculating first, investing later," and optimize the allocation and layout of state capital in a bid to improve value creation capability. Fourth, we will increase the share of revenue and added value made by strategic emerging industries, and make greater efforts to foster innovation-driven, higher-quality growth. Fifth, we will enhance brand value. To this end, we will foster more brands in central SOEs, ensuring their superior quality, outstanding advantages and independent intellectual property rights. By doing so, central SOEs' brand image will be enhanced. Thank you.

Securities Times:

In recent years, central SOEs have made remarkable achievements in the industrial application of scientific and technological advances, developing a lot of advanced equipment for the country, and have been awarded many prizes in science and technology. What measures will the SASAC implement to empower central SOEs as key drivers of scientific and technological innovation? What are the key tasks?

Wang Hongzhi:

I'd like to invite Mr. Fang to answer these questions.

Fang Lei:

Thank you for your questions. We really appreciate your interest in central SOEs' efforts with scientific and technological innovation. Central SOEs have been important hubs in national innovation chains and the backbone for building the country into a strong science and technology nation. In recent years, the SASAC has taken scientific and technological innovation as top priority and have made significant efforts to encourage central SOEs to strengthen scientific and technological innovation, leading to a substantial number of major scientific and technological achievements. We have intensified our endeavors in the following four aspects in a bid to give full play to the role of central SOEs as key drivers in scientific and technological innovation.

We are vigorously advancing breakthroughs in key core technologies. We have established a three-tiered collaborative system that integrates national overall planning, organizes central enterprises to jointly tackle challenges, and encourages companies to make breakthroughs proactively. Focusing on crucial areas such as industrial machine tools and industrial software, we have mobilized millions of researchers to work on the front lines of technological advancement, thereby effectively maintaining the stability of supply chains. In fields such as quantum information, deep space, deep earth, and deep sea exploration, we have established 97 original technology innovation hubs. We have also implemented 11 special initiatives, including "Strengthening Applied Basic Research," achieving significant breakthroughs in cutting-edge areas such as controlled nuclear fusion, 6G network architecture and brain-like chips.

We are focusing on empowering industry-leading enterprises to play a leading role in integrating production, education and research. We guide central enterprises to collaborate with universities, research institutes, and upstream and downstream companies to identify major needs and distill significant scientific questions. We have established 24 innovation consortia and selected 30 leading enterprises across the industrial chain to implement a "large-scale coordinated approach." This strategy promotes full-chain innovation from basic research to industrialization. We are also building a collaborative and efficient industrial innovation organizational mechanism. Additionally, we are proactively opening markets and scenarios to various innovative entities and promoting the application of first-generation equipment and initial batches of new products. Central enterprises are accelerating their transformation into supportive markets for independently developed products.

We are focusing on deeply integrating sci-tech innovation with industrial innovation. We encourage enterprises to use new technologies to upgrade and enhance traditional industries, implement digital transformation initiatives and "AI+" special actions, and accelerate the development of high-end, intelligent and green technologies. We have launched the industrial renewal and sailing initiatives, adhering to both intrinsic development and high-quality mergers and acquisitions. We are vigorously developing nine strategic emerging industries, such as artificial intelligence and biotechnology, and six future industries, including future manufacturing and future energy. We are also implementing the Sailing Enterprise Cultivation Program to rapidly build a group of innovative state-owned enterprises that are "entering new sectors, mastering new technologies, establishing new platforms, and implementing new mechanisms." Through these efforts, we aim to foster and grow new quality productive forces.

We are fully committed to improving the system and mechanisms for technological innovation. We adhere to top-level, practical and needs-oriented principles when refining investment policies. Technological innovation assessments now cover all industrial and research enterprises, with state-owned capital allocated for supporting technological innovation reaching 83% in 2024. For 2022 and 2023, annual R&D investments exceeded 1 trillion yuan. We are enhancing development mechanisms for sci-tech professionals. We encourage enterprises to establish long-term, results-oriented incentive mechanisms and profit-sharing mechanisms for the transformation of technological achievements. We have implemented several measures to support researchers, including a separate wage system that is not subject to overall limits, improved fault-tolerance and immunity mechanisms, and greater autonomy in research activities.

Next, state-owned central enterprises will thoroughly implement the guiding principles of General Secretary Xi Jinping's speech at a national science and technology conference. We will focus on strategically critical areas by further improving institutional arrangements, increasing R&D investments, attracting and developing high-level talent, and achieving international development. Our goal is to cultivate more leading technology enterprises to provide strong support for breakthroughs in key core technologies, enhance original innovation capabilities, and lead the development of a modern industrial system. These efforts will significantly contribute to accelerating high-level technological self-reliance and self-improvement, ultimately helping to build a strong technological nation. Thank you.

The Enterprise Observer:

A new round of large-scale equipment renewal is currently proceeding smoothly. Can you provide an update on the recent progress of related work by central enterprises? What are the considerations and arrangements for future work? Thank you.

Wang Hongzhi:

Thank you for your questions. The new round of large-scale equipment renewal is an important initiative by the CPC Central Committee, focusing on the overall goal of high-quality development. This initiative is widely anticipated across society and represents a significant opportunity for central enterprises to build development advantages. Last Friday, the State Council held a special meeting to deploy additional support for large-scale equipment upgrades. Recently, the SASAC also held a special progress meeting to mobilize related work. The meeting guided enterprises to effectively utilize support policies, coordinate technological upgrades, equipment renewals, and industrial upgrading, ensure initiatives are well-executed and accelerate high-quality development. Mrs. Liu will provide more details on this matter.

Liu Shaowei:

As Mr. Wang just introduced, SASAC recently held a meeting to advance large-scale equipment renewal for central enterprises. The main purpose of this meeting was to guide these enterprises to take the lead and focus on the "five accelerations," ensuring the implementation and advancement of related key tasks.

First, we are quickly upgrading equipment to advanced ones. By swiftly replacing and renovating production devices and equipment that have long service time, low efficiency and outdated technology, we are deploying equipment that is high-tech, highly efficient and highly reliable.

Second, we are speeding up the digital transformation. We are rapidly implementing a series of projects focused on achieving an "intelligent, digital and connected transformation." This involves deeply integrating cutting-edge technologies like artificial intelligence across all aspects of the manufacturing process, rapidly upgrading and replacing outdated equipment with intelligent solutions and extensively expanding our network infrastructure with new technological advancements.

Third, we are accelerating our green transformation efforts. These efforts focus on promoting a range of eco-friendly equipment, aiming to significantly reduce pollution, cut carbon emissions, save energy and lower consumption. We are also working to improve the energy efficiency management of our equipment by rapidly updating and renovating devices and equipment with subpar energy performance. Moreover, we are vigorously planning for the recycling and reusing of resources, thereby establishing a sustainable cycle of eco-conscious product development, manufacturing and recycling.

Fourth, we are stepping up the promotion of intrinsic safety measures. A series of renovations of outdated facilities is in progress to strengthen the application of safety technologies and apparatus. In areas vulnerable to safety risks, initiatives are being implemented to replace manpower with machines, automated solutions and robots. There is an enhanced focus on online monitoring and management of various hazardous sources, with the goal of improving accident and disaster prediction and prevention capabilities.

Fifth, we are advancing our efforts to reinforce effective supply. By developing a new range of devices and equipment, we are pushing forward their applications in various fields including industrial machinery, agriculture, healthcare, education and more. Our goal is to provide technologically advanced, green, low-carbon, energy-efficient and market-adaptive equipment.  

Moving forward, we will maintain the principle of offering all possible support, thus intensifying policy backing for investors. We will guide central SOEs to align closely with the trends of the new technological revolution and industrial transformation, performing a pioneering and exemplary role during this round of extensive equipment upgrades. In the next five years, central SOEs are expected to arrange equipment renewal and renovation with a total investment of more than 3 trillion yuan. Concurrently, we mandate that central SOEs treat different types of enterprises equitably when procuring equipment, focusing on acquiring equipment that is technologically advanced and offers the best value for money. This approach will allow equipment suppliers that are distinguished by superior quality and competitive prices to stand out. Thank you!

Yicai:

Currently, the action to deepen and enhance the reforms of state-owned enterprises has passed the halfway mark. Could you comment on the effectiveness of this round of reforms? What are the key tasks for the next stage? Thank you.

Wang Hongzhi: 

Thank you for your questions. The reform of state-owned enterprises has always been a topic of concern and interest across all sectors of society, which I touched upon in my opening remarks. Specifically, this action, aimed at deepening and enhancing the reform of SOEs, represents a major arrangement by the Central Committee of the Communist Party of China focusing on the roles and missions of state-owned enterprises within the new era. It is highly consistent with the arrangements regarding the reform of state assets and state-owned enterprises made at the third plenary session of the 20th CPC Central Committee. At this stage, over half of the scheduled tasks have been completed and the results, thus far, meet our expectations. For a detailed report, I will now turn over to Mr. Lin Qingmiao.

Lin Qingmiao:

I will further introduce some specific details. In our ongoing initiatives to deepen and enhance the reform of state-owned enterprises, we are cohesively advancing both reforms regarding their functions and roles and institutional reforms, fully leveraging the synergy. Reforms of functions and roles are focused on the missions and responsibilities of SOEs in this new era, with the goal of boosting their core functions and competitive strengths. This enables them to make significant contributions in areas like technological innovation, industry control and security support, thereby better aligning with national strategies. Institutional reforms aim to remove the institutional impediments that affect the high-quality development of SOEs, and to rejuvenate their vitality further. The achievements of these deepened and enhanced reform efforts can be summarized in four aspects:

First, the structural layout has been continuously improved. We have thoroughly implemented strategic restructuring and professional integration, enhancing SOEs' capabilities in serving national strategies and improving resource allocation efficiency. We have firmly implemented industrial renewal actions for central SOEs and launched initiatives to develop future-oriented industries. Emerging sectors are thriving, realizing breakthroughs in various fields. Traditional industries have experienced rapid transformation and upgrading to become high-end, smart and eco-friendly. Second, sci-tech innovation capabilities have continued to strengthen. Many enterprises' sci-tech innovation systems have been reshaped and optimized. SOEs' principal role in sci-tech innovation has become more evident. They've achieved breakthroughs in key and core technologies with inspiring sci-tech innovations across diverse fields. For example, the Chang'e-6 mission was the world's first to collect samples from the far side of the moon and return them to Earth, the C919 large passenger aircraft has been commercialized, and the Shenzhen-Zhongshan cross-sea passage has opened to traffic. Third, the modern enterprise system with Chinese characteristics has matured. Party committees (leading Party members groups) have effectively provided direction, managed the overall situation and ensured implementation. The development of boards of directors has continuously deepened, with related systems improving, and their capabilities in formulating strategies, making decisions and preventing risks enhanced. Enterprise managers work under the tenure system and contracts, and rewards and punishments are determined strictly according to evaluation results. Market-oriented operating mechanisms have improved. Fourth, regulatory efficiency has further improved. We have carried out industry-specific and enterprise-specific evaluations, making our guidance more targeted. We've enhanced supervision and accountability, coordinating different kinds of supervision to create synergy. 

Looking ahead, we will align and integrate important tasks in deepening and improving SOE reforms with the new missions and tasks assigned by the third plenary session of the 20th CPC Central Committee through coordinated implementation. We will focus on enhancing and expanding state-owned capital and enterprises to strengthen their core functions and competitiveness, realizing new breakthroughs with a greater strategic perspective and intensified efforts. We will focus on developing new quality productive forces. In line with national strategic requirements, we will further clarify key investment areas and directions, strengthening our input and planning in research on key and core technologies and forward-looking strategic industries. We will make efforts to enhance development vitality and momentum. We will improve institutional mechanisms for strengthening Party leadership within the context of corporate governance improvement. We will enhance the quality of boards of directors and deepen reforms to the three systems for labor employment management, human resources and distribution to quickly foster new and modern SOEs and create more world-class enterprises. We will focus on improving management and supervision mechanisms and systems. We will lift restrictions while ensuring effective regulation and continuously improve the efficiency of regulation and administrative services. These efforts aim to better protect and develop state-owned assets. Thank you.

ThePaper.cn:

Could you describe the work done by SOEs to quickly foster and develop new quality productive forces through leveraging their advantages? What achievements have been made? What key tasks will be taken to tackle the issues constraining new quality productive forces going forward? Thank you. 

Wang Hongzhi:

Thank you for your questions. Developing new quality productive forces is a major strategic initiative by General Secretary Xi Jinping and the CPC Central Committee. The third plenary session of the 20th CPC Central Committee also made special arrangements in this regard. SOEs play an important role in liberating and developing productive forces, and must contribute to accelerating the formation of new quality productive forces. Since last year, central SOEs have strengthened sci-tech and industrial innovation through unprecedented efforts, achieving positive results.

On the one hand, we have enhanced efforts to spur innovation, coordinating sci-tech and industrial development. We have implemented a series of special-purpose actions to build incubators for original technologies, upgrade industries, foster future-oriented industries, and promote artificial intelligence applications. We have promoted the profound integration of sci-tech and industrial innovation, applying new technologies and modes to catalyze emerging industries and new business formats. We have made breakthroughs with many key and core technologies, created numerous landmark products and developed a number of emerging industrial clusters, with the development of new quality productive forces showing great vitality. 

On the other hand, we have optimized the ecosystem for development, issuing more effective policies regarding new fields and frontiers for development. Taking the opportunity of deepening and improving SOE reforms, we implemented a package of support policies for developing new quality productive forces. For enterprises advancing sci-tech innovation and developing emerging industries, we give additional evaluation points and treat R&D expenditures as profits. This year, more than 80% of the operational budgets of state-owned capital was used for enterprise sci-tech research and industrial upgrading. A total of 250,000 key professionals and researchers received incentives in the form of equity dividends. These efforts created a powerful synergy for developing new quality productive forces.

Overall, central SOEs have formulated a holistic approach and systematic plan for developing new quality productive forces. They have been rapidly improving relevant working mechanisms and systems across various aspects. Looking ahead, we will fully implement the guiding principles of the third plenary session of the 20th CPC Central Committee and the National Science and Technology Conference. By focusing on innovation, industrial upgrading and reforms, we will pool advantageous resources and strengths, and position central SOEs as the primary field and driving force for developing new quality productive forces.

We will work to create an innovation hub and strengthen the primary growth driver for developing new quality productive forces. Focusing on national strategic needs, the development trends of science and technology and the needs of industrial upgrading, we will practice the new system for mobilizing resources nationwide on all fronts and firmly invest in areas with extended periods of research and development (R&D), large R&D investment as well as weak willingness of participation from enterprises of other ownerships. We will establish an upgraded version of the innovation consortia, promote closer collaboration between industries, universities and research institutes, and advance innovation throughout the whole process from basic research to industrial application.

We will work to build an industry leader and further develop the core carrier for new quality productive forces. By means of equipment transformation, technical research, technological upgrading and product development, we will promote the high-end, intelligent and green development of traditional industries. We will give priorities to both endogenous and extended development, continue to improve mechanisms for fostering emerging industries and step up efforts in planning development of new areas and new arenas.

We will work to create a pacesetter for reform and better adapt the relations of production to new quality productive forces. We will speed up the reform of organizational forms and management modes of enterprises, adopt more active, open and effective policies on talent and flexibly carry out various forms of medium and long-term incentives to encourage innovation and creativity. At the same time, we will develop new ways of organization, enhance cooperation among the upstream, midstream and downstream enterprises of the industrial chain and continue to optimize the industrial ecosystem for developing new quality productive forces.

Meanwhile, we also feel that developing new quality productive forces is not only a question that central SOEs must answer but also a common question for various market entities. We will deepen cooperation with various enterprises in new areas and new arenas to jointly develop new technologies and build new industrial ecosystems, advancing the development of new quality productive forces with concerted efforts and continuing to foster new growth drivers and new strengths.

Thank you!

Xing Huina:

Due to time constraints, we will take the last two questions.

Economic Information Daily:

We are concerned about central SOEs' development in the artificial intelligence industry. Previously, the SASAC has launched an initiative to advance AI-driven industrial upgrades. What progress has been made so far? What's the follow-up plan? Thank you.

Wang Hongzhi:

Thank you for your questions and your attention to central SOEs' development in the artificial intelligence industry. Artificial Intelligence is an important driving force for the new round of scientific and technological revolution and industrial transformation. It is also a key engine for the cultivation of new quality productive forces. For a period of time, central SOEs have made active explorations and bold attempts, with positive progress being made in the fields of computing power, data, large models and scenario applications. The development of artificial intelligence relies on cooperation and ecosystems. We will work with all sectors of society to make joint efforts within infrastructure, supply, demand and policy in order to advance industrial development with higher quality and faster speed, better empowering the high-quality development of the economy and society. With regard to this, Mr. Fang Lei will give you a detailed introduction. 

Fang Lei:

Well, let me answer your questions specifically. In recent years, the SASAC has been thoroughly implementing General Secretary Xi Jinping's important expositions on accelerating the development of artificial intelligence. We have conformed with the situation and taken the initiative to accelerate the development of artificial intelligence, stressing overall planning in our work. We have also taken it as the major direction for initiatives to advance industrial upgrading and foster new enterprises for emerging industries as well as formulated and issued action plans. We have organized symposiums on advancing the development of artificial intelligence for central SOEs, launched the AI+ special program, and, as Mr. Wang Hongzhi just mentioned, have made simultaneous efforts in computing power, data, algorithm and applications, with positive progress achieved mainly in four aspects. 

The computing power infrastructure has been consolidated at a faster pace. As of the end of June, the scale of intelligent computing power of central SOEs had doubled year on year. Massive computing clusters comprising 10,000 GPUs have been built in cities including Shanghai and Hohhot. The computing power platform has initially realized multi-core heterogeneous computing power scheduling, effectively supported the training and iteration of general AI large models with a parameter of 100 billion and above, and become more independent and controllable, providing solid support for large-scale application.

The development of AI basic models has been advanced steadily. We have supported general AI large models, such as Jiutian and Xingchen, to strengthen technical breakthroughs and ecological cultivation, and to push forward multimodal large models and cross-modal image generation capacities to catch up with the leading level in China. We have continued to promote the empowerment of large models to industries and have led central SOEs, private enterprises and institutions of higher learning to jointly build models for the industry.

Scenarios for application have been built at a faster pace. Over a hundred application scenarios have been built in areas such as new materials, communications and manufacturing. Large AI models have been primarily applied in areas including electricity, transportation and petrochemicals. Significant progress has been made in reducing costs and increasing efficiency in the areas of scientific research, production and customer services. A batch of high-quality datasets have been developed in such fields as logistics, finance and healthcare. Data governance tools have been developed and value-added services have been gradually offered, such as data processing.

The role in driving the development of industry has been continuously enhanced. Many central SOEs released standard products including software factories and 5G+AI new calling services at the 7th Digital China Summit and the World Artificial Intelligence Conference. They have strengthened cooperation with private enterprises such as Huawei and iFlytek in areas including intelligent networked vehicles and energy and chemical industries, formed supply and demand docking and have jointly developed and promoted the application of large AI models for the industry, creating a sound industrial ecosystem. 

Next, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) will accelerate the development of the artificial intelligence industry through application demonstrations. Centrally administered state-owned enterprises (SOEs) are confident, determined and capable of seizing strategic opportunities. They will work with various partners to provide intelligent computing resources, transform application scenarios and cultivate the industrial ecosystem. This will involve first to thoroughly explore and fully open high-value scenarios, as well as conducting supply-demand cooperation to create a set of industry application demonstration benchmarks. Second, exploring high-quality dataset standards and construction paths, thus building high-quality datasets for key industries in batches. Third, orderly advancing the construction of intelligent computing centers and platforms for both scheduling and operating computing power, as well as strengthening intelligent computing capacity supply to better serve small and medium-sized enterprises. Fourth, focusing on cutting-edge technologies to enhance foundational large model capabilities, improving large model evaluation systems, exploring and establishing industrial development communities and stepping up efforts to empower others. Thank you!

Xing Huina:

Last question.

Phoenix TV:

I'd like to ask a question about the Belt and Road Initiative (BRI). We know that in recent years, centrally administered SOEs have implemented the BRI, creating a number of major projects and landmark initiatives, such as the Jakarta-Bandung High-speed Railway and the China-Laos Railway. As the BRI enters a new stage of high-quality development, how will SASAC and centrally administered SOEs seize this historic opportunity to further promote higher quality and higher level development of the BRI? Thank you.

Wang Hongzhi:

Thank you for your question. Centrally administered SOEs are an important force in China's participation within international competition and cooperation and in the high-quality cooperation under the BRI. Since President Xi Jinping proposed the BRI in 2013, the central SOEs have actively engaged in this great practice. They have invested in and cooperated on over 5,000 projects in participating countries and regions, improving their international operations while creating significant economic and social value for partner countries. The specific achievements are reflected in three aspects:

First, we have deepened infrastructure cooperation. Traditional infrastructure cooperation has progressed steadily and new types of infrastructure cooperation has been actively carried out. A number of landmark projects and demonstration projects have been completed. For example, in the nine months since the Jakarta-Bandung High-speed Railway began operations, it has carried over 4 million passengers. Additionally, telecommunications companies' overseas service networks cover more than 40 participating countries, and the SEA-ME-WE 5 undersea cable project has greatly enhanced communication capabilities along the route.

Second, the focus on green development has become more prominent. We have actively practiced ESG concepts with these enterprises undertaking about 300 key clean energy projects, including hydropower, wind power and photovoltaic projects. Landmark projects such as the Belo Monte UHV DC Transmission Project in Brazil and photovoltaic power station in Qatar are operating smoothly, effectively helping host countries in their green transformation and low-carbon development.

At the same time, we have delivered more benefits to local people. These projects have created nearly one million jobs locally. Centrally administered SOEs actively engaged in livelihood projects. For instance, the Hualong One project that we invested in and built for Pakistan has met the electricity needs of two million local people, while the Côte d'Ivoire urban water supply project benefited 2.3 million people.

Last year, President Xi Jinping delivered an important speech at the third Belt and Road Forum for International Cooperation, proposing eight major actions. The recently held third plenary session of the 20th CPC Central Committee further made major arrangements for improving mechanisms to promote high-quality cooperation under the BRI. The central SOEs will thoroughly implement these plans, leveraging their advantages and strengths, deepening opening up and cooperation as well as accelerating the high-quality development of enterprises' international operations.

We will focus on expanding new channels for interconnectivity, deepening practical cooperation in traditional fields, such as infrastructure, and steadily expanding cooperation in new areas, such as health, green development and digital technology, to shape a new landscape of interconnectivity.

We will focus on creating new benchmarks for cooperation projects, deepening international cooperation in production capacity and equipment manufacturing as well as ensuring the construction and operation of benchmark projects, such as the Jakarta-Bandung High-speed Railway, the Hungary-Serbia Railway and the China-Pakistan Economic Corridor. At the same time, we will actively address livelihood needs and build more "small but beautiful" projects with considerable economic and social benefits.

We will focus on consolidating new cornerstones for secure development, adhering to market-oriented, law-based and internationalized operations. Thus, we will firmly establishing compliance awareness to strengthen risk prevention and control systems, ensuring the safety of overseas projects and personnel as well as helping to promote the steady, continued and high-quality cooperation under the BRI. Thank you!

Xing Huina:

Today's press conference ends here. Thank you to our speakers and to all of our media friends. Goodbye, everyone.

Translated and edited by Wang Yiming, Wang Qian, Li Xiao, Wang Yanfang, Zhang Rui, Huang Shan, Yan Bin, Wang Wei, Gong Yingchun, Yuan Fang, Qin Qi, Li Huiru, Liao Jiaxin, Liu Sitong, Xu Kailin, Zhang Junmian, Cui Can, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Han Jun, secretary of the leading Party members group of the Ministry of Agriculture and Rural Affairs (MARA)

Mr. Zhang Xingwang, vice minister of agriculture and rural affairs

Mr. Wang Lejun, chief livestock officer of the MARA

Chairperson:

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

Date:

July 24, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Han Jun, secretary of the leading Party members group of the Ministry of Agriculture and Rural Affairs (MARA), to brief you on relevant developments and answer your questions. Also present today are Mr. Zhang Xingwang, vice minister of agriculture and rural affairs; and Mr. Wang Lejun, chief livestock officer of the MARA.

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

Han Jun:

Ladies and gentlemen, friends from the media, good morning. Thank you for attending today's press conference and for your continued support of the agricultural and rural work. This is my first press conference since taking office at the MARA, and I am delighted to have this chance to speak with you today. I will update you on the high-quality development in the work relating to agriculture, rural areas and rural residents.

Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has given top priority to matters related to agriculture, rural areas and rural residents. We have triumphed in the fight against poverty, implemented the rural revitalization strategy, secured historic achievements and seen historic changes in our agricultural and rural sectors. Agricultural departments at all levels have borne in mind the country's most fundamental interests, rigorously applied the instructions of General Secretary Xi Jinping on agriculture, rural areas and rural residents, and consistently implemented the strategies set forth by the CPC Central Committee and the State Council. We have tirelessly strengthened national food security and promoted stable and qualitative growth in agriculture and rural development. We have made solid progress in building up China's strength in agriculture, and all-around rural revitalization has continuously achieved new results, providing strong support for economic recovery and high-quality development.

We are fully committed to ensuring the stable and secure supply of grain and important agricultural products, ensuring that the food supply of over 1.4 billion Chinese people remains firmly in our own hands. By implementing the strategy of sustainable farmland use and innovative application of agricultural technology for national food security, China's grain production has remained stable at over 1.3 trillion jin (650 million metric tons) for nine consecutive years, reaching 1.3908 trillion jin last year, with a per capita grain possession of 493 kilograms. This year's grain production, especially the summer harvest, has been bountiful, increasing by 7.25 billion jin to 299.56 billion jin, setting a new historical high. Particularly in recent years, we have focused on enhancing soybean production, which has improved our self-sufficiency rate by nearly 4 percentage points over two years. The supply of cotton, oil, sugar, meat, eggs, dairy, aquatic products, fruits, vegetables and tea is plentiful, with an increasing number of green, high-quality agricultural products making their way onto the dining tables of our citizens.

We have continued to consolidate and expand the achievements of poverty alleviation, firmly guarding the bottom line of preventing a large-scale return to poverty. During the transition period, we have maintained stable assistance work and policies, continuously consolidating and improving the results of rural compulsory education, basic medical care, housing safety and drinking water safety. We have effectively operated the dynamic monitoring and assistance mechanism to prevent people returning to poverty, focusing on strengthening industrial and employment assistance, and there has been no large-scale return to poverty.

We have vigorously improved agricultural technology and facilities, consistently elevating the modernization of agriculture. The contribution rate of agricultural technological progress has exceeded 63%, with the mechanization of the entire production processes of three staple crops (wheat, rice and corn) basically realized, as well as significant innovations in agricultural technology. We have built over 1 billion mu (about 66.67 million hectares) of high-standard farmland and significantly bolstered our disaster prevention and resistance capabilities. The 10 year fishing ban on the Yangtze River has shown significant results.

We have coordinated the promotion of rural development and governance, and the construction of a beautiful and harmonious countryside for people to live and work in has steadily advanced. We have extended infrastructure and public services into rural areas. Sanitary toilets are used by 75% of rural households. All towns, townships, and villages where conditions permit are now connected by paved roads. Tap water coverage in rural areas reaches 90%. More than 90% of administrative villages have access to 5G. The level of basic public services such as education, medical care and elderly care has continuously improved, and rural residents' self-organized cultural activities are rich and colorful. With rural revitalization, the vast number of rural residents have a greater sense of gain, happiness and security.

We have persistently deepened reforms to continuously stimulate the vitality of agricultural and rural development. We have adhered to consolidating and improving the basic rural operation system, continuously improving the reforms to separate rural land ownership rights, contract rights and use rights for contracted land, ensuring that the nature of public ownership of land does not change, the red line of arable land is not broken, and the interests of farmers are not harmed. The development of suitably scaled-up operations of land and trials to extend rural land contracts by another 30 years upon the expiration of second-round contracts are steadily underway. We have obtained a general picture of rural collective assets, and are now vigorously cultivating new types of agribusinesses, with more than 2.2 million farmers' cooperatives and nearly 4 million family farms. We have improved specialized agricultural services, continued to make good use of rural "specialty products," accelerated the integration of primary, secondary and tertiary industries in rural areas, vigorously cultivated new rural industries and new business forms, steadily promoted the granting of permanent urban residency to eligible people who have moved to cities from rural areas, and continuously created more channels for rural residents to find employment and increase their incomes. In 2023, the per capita disposable income of rural residents reached 21,691 yuan, and the income gap between urban and rural residents narrowed to a ratio of 2.39-to-1 from 2.81-to-1 in 2013. In the first half of this year, the per capita disposable income of rural residents was 11,272 yuan, an actual increase of 6.6%, 2.1 percentage points higher than the income growth rate of urban residents.

Gratifying achievements have been made in agricultural and rural development over the years. We owe these achievements to the leadership of the CPC Central Committee with Comrade Xi Jinping at its core and the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The third plenary session of the 20th CPC Central Committee has outlined systematic plans for the key tasks of agricultural and rural reform and development. The MARA will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the decisions and plans of the CPC Central Committee and the State Council, focus on building a strong agricultural sector, and take solid steps to deliver work related to all-round rural revitalization. By doing so, we will write a more splendid chapter on agriculture, rural areas, and rural residents on the new journey.

Next, my colleagues and I will be happy to answer your questions.

Shou Xiaoli:

Thank you, Mr. Han, for your introduction. Now, we will open the floor for questions. Please identify the media outlet you represent before asking your question. You may begin now.

CCTV:

The recently concluded third plenary session of the 20th CPC Central Committee has made systematic plans for further deepening reform, and rural reform is an integral part of it. Could you please tell us what the key points of the next step of reform are and how they will be advanced? Thank you.

Han Jun:

Thank you for your questions. The matters you highlighted are the focus of considerable attention across all sectors of society. We know that the recently concluded third plenary session of the 20th CPC Central Committee has made strategic plans for further deepening reform comprehensively to advance Chinese modernization. I also attended the entire third plenary session. Rural and agricultural reform occupies a considerable portion of the resolution adopted at the plenary session. The resolution dedicates an entire chapter to systematically outlining plans for promoting integrated urban-rural development. It also clarifies the key tasks of rural reform, providing important guidance and a foundation for promoting rural reform on the new journey. The MARA will thoroughly study and grasp the guiding principles of General Secretary Xi Jinping's important speeches, carefully plan and solidly implement the key tasks of agricultural and rural reform, and add momentum and vitality to all-round rural revitalization. We will focus on three aspects of work, which are also the key tasks in the three major areas of rural reform.

First, we will consolidate and improve the basic rural operation system. China's reform started in the countryside, and this year marks the 46th year of rural reform. Over these 46 years, what has been the most important achievement of rural reform? It is the establishment of the basic rural operation system. When presiding over the symposium on rural reform held in Xiaogang village of Anhui province on April 25, 2016, General Secretary Xi Jinping stressed that China's rural reform began with properly handling the relationship between farmers and land, and the most significant policy is that we must uphold and improve the basic rural operation system. We often say that the basic rural operation system is the cornerstone of the Party's rural policies. The basic rural operation system requires three pillar policies. First, we must uphold the collective ownership of rural land. Second, we must maintain household operations as the basis. Third, we must ensure that rural land contracting practices remain stable. The resolution adopted at the third plenary session of the 20th CPC Central Committee has outlined specific plans to consolidate and improve the basic rural operation system. The resolution stresses that we will move forward with well-organized trials to extend rural land contracts by another 30 years upon the expiration of the second-round contracts, deepen the reform to separate the ownership rights, contract rights, and management rights of contracted land, and develop appropriately scaled agricultural operations. As the second round of contracts will be extended for another 30 years upon expiration, rural land contracting practices will remain unchanged for 75 years, considering the first round of land contracts at the beginning of rural reform. This demonstrates the requirement for keeping rural land contracting practices unchanged over the long term. The MARA will act upon the arrangements of the CPC Central Committee and earnestly implement the policy of consolidating and improving the basic rural operation system, which is the major rural policy. This year, we have launched trials to extend rural land contracts in three provincial regions: Anhui, where I used to work, as well as Hunan, and Guangxi. Currently, other provinces are also conducting trials in their counties and townships. The general principle is to adhere to the overall extension of contracts and ensure that the contracted land of most farmers remains unchanged. That principle is clearly defined in the policies. Next, we will continue to guide the orderly transfer of land management rights, improve the framework for agricultural operations, enhance the commercial agricultural services, and better encourage the involvement of small agricultural households in modern agriculture. Can small agricultural households get involved in modern agriculture? That's entirely possible. Not long ago, I took a field trip to Hebei and met a 74-year-old lady. I asked her whether she still had land. She answered that she had a 6-mu (0.4-hectare) plot. I asked her whether she had rented the land out. She said no. I asked how she could till the land at her age. She explained that she found someone to help her by placing her land under a trusteeship, covering all aspects of farming. She calculates that placing the land under trusteeship can earn over 200 yuan more per mu than renting it out. She said that by doing that, she could make over 1,000 yuan more. So, why not do that? This 74-year-old lady can effectively manage her land under such commercial agricultural services. Therefore, there are diverse paths to agricultural modernization, and small agricultural households can indeed participate in modern agriculture. Here, I would also like to stress that land transfer must be conducted voluntarily, in accordance with relevant laws, and with proper compensation. Land transfer should not go against the farmers' will, harm their interests, or change the use of the land. We now have specific requirements that strictly forbid the advancement of land transfer by setting targets and tasks or by including the area and proportion of transferring land in performance assessments. In other words, no coercion should be used in relation to land transfer. This is the first key area.

Second, we will continue to put agricultural and rural development first. The resolution includes a dedicated section on "Improving supporting systems to strengthen agriculture, benefit farmers, and enrich rural areas." It makes specific arrangements such as improving the investment mechanisms for rural revitalization, optimizing the system of agricultural subsidy policies, refining the regular mechanisms for preventing rural residents from lapsing or relapsing into poverty, improving the mechanisms for ensuring the incomes of grain growers and see that the prices of grain and other major agricultural products remain at a reasonable level, and establishing an inter-provincial mechanism for major grain-purchasing areas to compensate major grain-producing areas. Prioritizing agricultural and rural development is a key strategy for addressing issues relating to agriculture, rural areas and the well-being of farmers. Specifically, this means prioritizing four areas: appointing officials, resource allocation, funding and public services. This is a clear directive from the CPC Central Committee, and we must translate these priorities into concrete reform measures. There is still much work to be done, and we will focus on implementing detailed and practical improvements. We will take stronger measures in official appointments, resource allocation, funding, and public services. These efforts will address the shortcomings in agricultural and rural development.

Third, we will continue to promote integrated urban-rural development. As General Secretary Xi Jinping emphasized, "Revitalizing rural areas should not be viewed in isolation. We should encourage the manufacturing sector and urban entities to support agriculture and rural development." We must coordinate our efforts in new industrialization, new urbanization, and all-round rural revitalization, establish and improve the institution and policy system for integrating urban-rural development, pursue greater urban-rural integration in planning, development and governance, and promote equal exchanges and two-way flows of productive factors between cities and the countryside, so as to narrow the disparities between the two and promote their common prosperity and development. Therefore, we need to work faster to grant permanent urban residency to eligible people who move from rural to urban areas, and implement the systems for allowing people to obtain household registration and access basic public services in their place of permanent residence. We will push to see that eligible people who have moved to cities from rural areas enjoy the same rights as registered local residents with regard to social insurance, housing support, and access to compulsory education for their children living with them. This is a significant policy. We will protect the lawful land rights and interests of former rural residents who now hold permanent urban residency, protect, in accordance with the law, their rights to contract rural land, use their rural residential land, and share in the proceeds from rural collective undertakings. I want to stress that current policies allow for the voluntary transfer of these rights in return for compensation, but this must be approached cautiously. For example, policies on relinquishing rural residential land rights must be prudent, ensuring farmers maintain a safety net while considering their long-term interests. The use rights of rural residential land are clearly defined by law as a privilege of rural collective economic organization members, and non-members cannot obtain these rights. This is explicitly stated in our laws and policy requirements. Using rural residential land to construct villas or private clubs is strictly prohibited. Additionally, allocating these lands to retired officials or employees returning to rural areas is forbidden. This policy baseline must be strictly adhered to. As the Resolution of the CPC Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization, adopted at the third plenary session of the 20th CPC Central Committee, clearly states, the current policy allows rural households to put houses under their legal ownership to good use by leasing them out, contributing them in the form of shares, and engaging in cooperative ventures. Localities can explore innovations in this regard to ensure that rural residents benefit more from the reform.

Thank you.

Red Star News:

The initiative to build high-standard farmland is a major project for ensuring China's national food security. In recent years, we have made significant progress on this front. Could you elaborate on our achievements and describe future plans to enhance the mechanisms for the development, acceptance inspection, and management and protection of high-standard farmland ? Thank you.

Han Jun:

Mr. Zhang will answer this question.

Zhang Xingwang:

Thank you for your question. High-standard farmland development is vital for ensuring national food security and directly impacts the livelihoods of rural residents. It is both a livelihood project and one that has strong public support. Mr. Han has already provided an overview of our progress in this regard. The CPC Central Committee attaches great importance to this project, which has also attracted widespread public attention. Under the guiding principles of General Secretary Xi Jinping and the directives from the CPC Central Committee and the State Council, various levels of agricultural and rural departments, supported by related departments and agencies, have intensified their efforts and made significant progress. By the end of last year, China had built over 1 billion mu of high-standard farmland, more than 10 million kilometers of field irrigation and drainage channels and over 27 million small-scale farmland water conservancy facilities. These efforts have significantly improved farmland's disaster resilience, ensuring stable production even during severe disasters and increasing yields under normal conditions. This has contributed substantially to the country's ability to maintain grain production at over 1.3 trillion jin (650 billion kilograms) for nine consecutive years. This year, the country has substantially increased investment standards for high-standard farmland, supporting further improvements.

The statistics introduced just now show that the development of high-standard farmland indeed involves numerous aspects and long processes, and covers extensive areas. To ensure the quality of this project, we have meticulously implemented a working mechanism with the central government responsible for overall planning, provincial-level governments assuming overall responsibility, city and county governments ensuring implementation, and the public participating. In collaboration with relevant departments, we have refined institutional standards, strictly focused on task implementation, and ensured its quality. The third plenary session of the 20th CPC Central Committee proposed to enhance the mechanisms for the development, acceptance inspection, and management and protection of high-standard farmland. We will adhere to the principle of putting quality first while attaching equal importance to quantity and quality, take firm and stringent measures, and do everything possible to ensure the quality of farmland development, truly achieving the goal whereby every acre developed is an acre successfully completed. We will focus our efforts in three main areas:

First, we will strengthen development management throughout the entire process. We will reasonably determine the development standards for high-standard farmland in different regions and types, guide various localities to further optimize layouts, clarify development priorities, carry out solid preliminary work such as project design, strictly assume local responsibilities for engineering quality management, and rigorously control quality at every stage, including selection, bidding, materials, construction and acceptance inspection.

Second, we will regularly conduct supervision and inspection. In the near future, the MARA will initiate a quality review and special rectification campaign for high-standard farmland development projects, focusing on issues such as irrigation facilities that are not electrified, not supplied with water, or not functioning properly. We will organize local inspections to identify and categorize issues that need rectifying. This year, we will also conduct random quality checks of projects nationwide on a regular basis. Any issues discovered will be assigned to local authorities for firm rectification, and those responsible will be held accountable in accordance with laws and regulations. Cases suspected of violating criminal law will be decisively transferred to judicial authorities for handling.

Third, we will implement multiple measures to strengthen post-development management and protection. We will collaborate with relevant departments to further refine the relevant systems, urging localities to synchronize plans regarding the parties responsible for management and protection, mechanisms, and supporting measures during the early stages of high-standard farmland development project planning. This will clarify the responsibilities and standards for farmland management and protection, ensuring that the post-development measures are effectively implemented and preventing any gaps or failures in our management. These efforts aim to reverse the tendency in some areas to focus on development while neglecting management, ensuring solid development and better management. Thank you.

Beijing Youth Daily:

At the beginning of the briefing, Mr. Han announced the good news that this year's summer grain yield has reached a historic high. How was such a bumper harvest achieved in the face of frequent meteorological disasters? Also, since the onset of summer this year, many areas have experienced droughts and flooding to varying degrees. Will these affect the autumn grain yield? What safeguards and measures are in place to help achieve abundant grain harvests year-round? Thank you.

Han Jun:

Thank you for your questions. Among the issues relating to agriculture, rural areas and rural residents, food is of the utmost concern. As a large nation with over 1.4 billion people, we must ensure that China's food supply remains firmly in our own hands and cannot afford any lapses in ensuring national food security. As I mentioned earlier, this year's summer grain production increased by 7.25 billion jin, which is the largest increase in the past nine years. This has had a significant effect on stabilizing prices and people's expectations. This year's bumper summer grain harvest can be attributed to two main factors. First, the cultivation area was stable, which is the foundation for increased production. If the area were not stable, there would be no foundation for a good harvest. Last year, various regions actively responded to the unfavorable conditions for autumn sowing and achieved as full planting as possible. The area of summer-harvested wheat reached 346 million mu, an increase of 475,000 mu from the historical high, which was not easy. The second major reason for the bumper summer grain harvest is the increase in yield per unit. Nowadays, agricultural yield increases mainly depend on increasing the yield per unit. To improve yield per unit, good seeds are necessary, but just having good seeds is not enough. Good seeds, good fields, good opportunities and good practices must be closely integrated, and good policies are also necessary. This year, the minimum purchase price for summer grain wheat was raised, which stabilized farmers' expectations. Comprehensive policies and coordinated efforts are ultimately reflected in the increase in yield per unit. This year, the yield per mu of summer-harvested wheat increased by 10 kilograms, a 2.6% increase, which is the largest yield increase in the last five years. We calculated that the improvement in yield per unit contributed over 90% to the increase in summer grain production. In the past two years, the MARA implemented large-scale actions to increase yield per unit, with a focus on major grain and oil crops such as corn, wheat and soybeans. Take wheat as an example. We integrated and promoted key technologies such as deep plowing and soil preparation, post-sowing compaction, and integrated water and fertilizer management. During critical farming periods, we fully implemented the "one spray, three protections" method (that features a spray mix of insecticides, fungicides, foliar fertilizers, and plant growth regulators), focusing on the unified prevention and control of diseases and pests, and emergency treatments. During the summer harvest period, we organized over 600,000 combine harvesters for cross-regional operations, which was quite spectacular. It is through coordinated efforts in increasing production and reducing losses that we achieved this bumper summer harvest. Working in the provincial government, I have a deep understanding of this. To ensure that our food supply remains firmly in our own hands, the main leaders in the provincial government must attach much importance to these technical measures. When these measures are in place, they will yield good results.

This year's summer grain output was a bumper harvest. This is good news. However, autumn harvests, accounting for three-quarters of the yearly output, are more important and attract more public attention. Since the beginning of this summer, floods have been wreaking havoc in the south while droughts are making trouble in the north. Heavy precipitation even changed some regions from being in drought to flooding within a few days. Before returning to Beijing, I worked in Anhui province, where there is both northern and southern climatic features. Northern Anhui first experienced extreme droughts, and then floods. Similar situation has also occurred in Henan province, where droughts changed into floods within a day or two. It is estimated that the current national crop damage area is larger than last year's, but the disaster area decreased by more than 6 million mu (400,000 hectares) year-on-year. According to our real-time monitoring, the country's area of autumn grain increased steadily over the previous year, and crop growth was generally normal. I went to Hebei province on Sunday to find out more about the droughts and then went to Heilongjiang province to check the crops. Since Henan recently has been severely impacted by the disaster, my colleagues went there as soon as possible to work with local governments on disaster mitigation and grain production.

We know that from late July to early August is a critical period not only for fighting against floods and droughts, but also for increasing autumn grain output. We will make all efforts to work on related sectors. I told my colleagues to fully estimate the difficulties and focus on flooding and drought prevention as well as disaster relief, especially in major grain-producing areas and hard-hit areas. Differential measures will be carried out in disaster-stricken areas. For waterlogged farmland, work will be focused on the management of ditches to speed up drainage. In some places, drainage ditches alongside roads and fields were blocked. Currently, we are working on dredging some channels to ensure the water be discharged. Corn cannot survive if it is drowned for three consecutive days. We will try every way possible to expand water sources so that drought-stricken farmland will be irrigated in time. For farmland with total crop failure, work will be focused on replanting and reseeding in accordance with local conditions. If a place is currently not suitable for growing grain that needs a longer growth cycle, it can be used to plant vegetables. In this way, we will not leave the farmland uncultivated. Recovery of agricultural production after disasters will be accelerated. We are now organizing agricultural technicians and employees of the agricultural and rural affairs departments at all levels to work at the grassroots level in person, providing precise guidance and fine services to villages and rural residents to guarantee autumn and full-year harvests. Thank you.

Nanfang Daily, Nanfang Plus:

At present, hog raising can help farmers turn a profit, but dairy and beef cattle breeding is still in the red. How will livestock production and supply change in the second half of the year? What measures will be taken to stabilize the development of animal husbandry? Thank you.

Han Jun:

Mr. Wang will answer your questions.

Wang Lejun:

Thank you for your questions. The production of meat, eggs and milk has increased since the beginning of this year. As Mr. Han just mentioned, the supplies of meat, eggs and milk are generally abundant. In H1, the output of pigs, cattle, sheep and poultry increased by 0.6%, egg production up 2.7% and milk yields grew 3.4% year on year. The market supply of livestock products was sufficient, with prices staying low. Take hog production as an example. Under the combined effect of market adjustments and production capacity regulation, hog production capacity has dropped from a high level and hog prices have taken the lead to rise, making hog breeding a profitable industry again. Our statistics show that hog farmers recently can earn 400 yuan after selling a single pig. Prices for dairy and beef cattle still has fallen sharply. In H1, beef and fresh milk prices fell 12.1% and 12.5% year on year, respectively. Beef and dairy cattle farming is suffering losses.

With regard to future development trends in H2, hog production is expected to maintain good momentum and perform well both in production and sales. I would like to share some statistics with you. In June, the number of breeding sow stocks reached 40.38 million. This is equivalent to 103.5% of the normal population of 39 million and within the green and reasonable range of production capacity regulation. At the end of June, the stocks of medium-sized and big pigs fell 6.4% year on year. However, as hog prices are rising, farmers may be reluctant to sell pigs now and may continue to feed big pigs to make them heavier and more valuable, therefore, the market supply is generally sufficient . Due to inertial growth of supply, prices for dairy and beef cattle will remain low in the short term, making cattle-raising business more difficult. Next, we will continue to strengthen our efforts to implement more effective measures.

Looking forward, the ministry will focus on the following five aspects to stabilize livestock production.

First, we will better regulate production capacity. Recently, hog production has stayed in a green and reasonable range. We will continue to keep 39 million breeding sow stocks as a "main switch" of regulation, do a good job in regulating production capacity and implementing policy and other supporting measures, striving to guarantee production capacity within a reasonable range.

Second, we will enhance early warnings and guidance. We will closely monitor the quantity changes of breeding sows, newborn piglets as well as medium and large pigs. Through this effort, we aim to guide pig farms and farmers to sell hogs at the right time to secure profits, avoiding price spikes or drops due to overstocking or sudden sales, particularly to prevent a significant drop in prices after the Spring Festival consumption peak next year. For beef and dairy cattle, we will guide farms and farmers to refine their herd structures and appropriately eliminate older and less productive cattle, thereby better matching production with market demand.

Third, we will focus on helping overcome difficulties. We will guide major milk-producing provinces in effectively implementing relief measures such as increased subsidies for raw milk purchases and spray drying of raw milk into milk powder, promoting cost-effective and efficient farming models. We will organize and implement policies aimed at expanding and improving basic breeding cattle, converting grain to fodder and promoting whole-county dairy production capacity. Additionally, we will guide local governments to increase credit and insurance support for farms and farmers to prevent excessive culling of breeding cows.

Fourth, we will prevent major animal epidemics. We will implement and improve regular epidemic prevention measures and continuously strengthen the prevention and control of major animal epidemics, such as African swine fever, highly pathogenic avian influenza and foot-and-mouth disease, as well as post-flood epidemic prevention. Preparations for autumn animal epidemic prevention will be made in advance to ensure no regional major animal epidemics occur.

Fifth, we will upgrade the industry. We will vigorously render the industry more modernized, organized and industrialized, aiming to extend its industrial chain and increase the added value of products. We will advance integrated development of farming and processing as well as encourage enterprises to improve the mechanism of helping farmers increase income through order-based production and signing purchase and sale contracts, thus ensuring farmers benefit more. We will continue to implement the soybean meal reduction and substitution initiative and advance the resourceful use of livestock and poultry waste, so as to promote green development in animal husbandry. Thank you.

Zhinews of Shenzhen Satellite TV:  

The national science and technology conference held last month made new deployments for achieving greater self-reliance in science and technology at a faster pace. Just now, Mr. Han also mentioned sci-tech innovation in agriculture. Could you share the measures the MARA has taken to accelerate agricultural sci-tech innovation and future plans? Thank you.

Zhang Xingwang:

Thank you for your interest in agricultural science and technology-related work. Just now, Mr. Han mentioned the major planning and arrangements in this regard. In fact, through years of work, we have deeply recognized the indispensable role of science and technology in ensuring stable grain production and high-quality agricultural development. The strength of science and technology keeps growing, and the potential for agricultural development largely lies in them. On the new journey of the new era, we must ensure the stable and secure supply of food and other important agricultural products for over 1.4 billion Chinese people. Given the limited arable land, the fundamental solution for stable and increased production lies in science and technology. As Mr. Han just said, our scientific and technical personnel are actively providing services and guidance on the front lines of agricultural production as well as disaster prevention and mitigation. Since the 18th CPC National Congress, significant progress has been made in agricultural sci-tech development. In 2023, advances in agricultural science and technology contributed 63.2% to agricultural development, an increase of about 10 percentage points compared to 2012. This is a remarkable achievement and a crucial reason for the stable development of our grain and agriculture in recent years. However, gaps still exist between our overall sci-tech level and advanced international levels. Globally, a new round of agricultural sci-tech revolution characterized by biotechnology and information technology is brewing major breakthroughs, and countries are vying for staying ahead of the curve. We must not fall behind. Currently, we are thoroughly studying and implementing the guiding principles of the third plenary session of the 20th CPC Central Committee and the national science and technology conference. We will work to achieve greater self-reliance and strength in agricultural sci-tech development in according to the decisions and deployments of the CPC Central Committee and the State Council.

First, we emphasize enhancing overall efficiency by improving the system. Currently, there is a certain degree of fragmentation, low-level repetition and homogeneous competition among agricultural research institutions. At the beginning of this year, our ministry established the Leading Group for Scientific and Technological Innovation and the Science and Technology Innovation Strategic Advisory Committee to concentrate on optimizing the agricultural science and technology innovation system. We aim to effectively leverage the role of national laboratories and further clarify how central, provincial and municipal-level agricultural research institutes fit within the overall framework. We will define the roles of research institutions, agricultural universities and agricultural technology enterprises. We are using policy guidance, innovative mechanisms and performance evaluation to mobilize and leverage the strengths of innovation entities of all types and at all levels. This approach will help these entities complement each other's advantages and move in a unified direction. We will utilize the new nationwide system to enhance overall efficiency and solve major scientific and technological issues constraining agricultural development.

Second, we emphasize innovation with a focus on industrial application. We insist that research topics originate from industry needs and that research results should be applied in production practices. We collect demands from industries, conduct research and demonstrations based on real-world scenarios, and have users evaluate and accept the outcomes. To determine the effectiveness of research results, we must assess their performance within the relevant industry. This approach addresses the disconnection between science and technology and the economy. In the first half of this year, 17 central ministries and commissions, including the MARA, jointly identified 401 technological needs. We have compiled the 2024 project application guide for the National Key R&D Program, which will be announced soon. These methods aim to further enhance the precision and effectiveness of research. We target critical industry needs, such as developing high-oil and high-yield soybean varieties and intelligent high-end agricultural machinery. We're concentrating efforts from various sectors to tackle these challenges. In this process, we must leverage the strengths of the Chinese Academy of Sciences, the education system, and the agriculture and rural affairs system. We should gather the country's true strengths in this field to address key challenges and fully utilize the pivotal role of leading agricultural technology enterprises in research and innovation.

Third, we emphasize ensuring scientific research effectively transitions into practical applications. We strive to connect the entire chain of scientific research, experimental development, and application promotion. By reforming and enhancing the agricultural technology extension system, we aim to leverage the leading role of the National Agricultural High-Tech Industry Demonstration Zones. We will improve service models such as technology commissioners, technology courtyards, and expert compounds, and support new types of agricultural business entities and technology service enterprises in providing technological services. This will accelerate the transformation of scientific and technological achievements into practical productive forces.

Additionally, we emphasize motivating and invigorating talent. We will improve talent incentive and evaluation mechanisms, select a number of agricultural research institutions and explore pilot reforms in evaluating scientific research personnel. We will vigorously promote the spirit of scientists in the agricultural sector and stimulate the innovative vitality of agricultural researchers. We will focus on leveraging major agricultural science and technology projects and important innovation platforms, such as the Seed Industry Revitalization Action Plan and key technological breakthroughs in agriculture, to cultivate and attract strategic scientists, leading scientific and technological talents, and innovation teams. In particular, we will emphasize cultivating young scientific and technological talent to continuously expand the agricultural science and technology talent pool.

Thank you.

Farmers' Daily: 

This year, China's No. 1 central document for 2024 recommends applying the experience of the Green Rural Revival Program and advancing all-round rural revitalization strongly and effectively. Could you provide an update on the progress of this work so far this year? How are different regions identifying key entry points based on their specific conditions to ensure that farmers truly benefit? Thank you.

Han Jun:

I will answer this question. As everyone knows, the theme of China's No. 1 central document for 2024 is to apply the experience of the Green Rural Revival Program and advance all-round rural revitalization strongly and effectively. The tasks for agriculture, rural areas and rural residents outlined in this year's No. 1 central document can be summarized as "two assurances, three enhancements and two strengthening measures." The "two assurances" focus on ensuring national food security and preventing large-scale poverty recurrence. I addressed both aspects when responding to reporters' questions earlier. The "three enhancements" aim to improve rural industrial development, enhance rural construction and raise rural governance standards. The "two strengthening measures" involve bolstering the dual drivers of technology and reform, while reinforcing measures to increase farmers' income.

As you all know, the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project was a significant decision made by Comrade Xi Jinping shortly after he began working in Zhejiang province. He spent 118 days visiting 11 prefecture-level cities and inspecting villages carefully to fully grasp the general situation of the province and its agricultural conditions. During my work in the agricultural sector, I have visited Zhejiang multiple times to research and study the implementation experience of the project. Over the past 20 years, the CPC Zhejiang Provincial Committee and the provincial government have steadfastly followed the direction pointed out by General Secretary Xi Jinping, with successive administrations carrying out the work, adhering to a consistent blueprint and exploring a scientific path for improving rural living environments, comprehensively promoting rural revitalization, and building a Beautiful China. The experience of the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project has gradually been promoted nationwide. Since the beginning of this year, various regions and departments have earnestly implemented the arrangements of the "No. 1 central document," learning from and applying the experiences of the project based on local conditions. They have strengthened organization, leadership, fiscal guarantees and financial support, implementing a great number of pilot demonstration projects. The key tasks of all-around rural revitalization have been steadily advanced and the achievements of poverty alleviation have continued to be consolidated, with the levels of rural industrial development, rural construction and governance being steadily improved. The overall situation of agriculture, rural areas and rural residents continues to show signs of stable improvement and quality enhancement.

Moving forward, we will take profound and real measures to promote the learning and application of the experience of the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project and achieve greater accomplishments in rural revitalization. The key is to learn the development philosophy, the right work approach, and promotion mechanisms of the project, especially to establish a long-term mechanism for promoting all-around rural revitalization. Learning from and applying the experience of the project and establishing a long-term mechanism for promoting all-around rural revitalization is a clear requirement put forward by the third plenary session of the 20th CPC Central Committee. Rural revitalization should run through the entire process of building a great country and national rejuvenation. How should this long-term mechanism be established? Since I started working in the ministry, I have thought hard and conducted research on this issue. Currently, we propose focusing on five main areas in our practical work:

We need to concentrate our efforts on accomplishing practical tasks that rural residents can feel and benefit from. We should aim to provide rural areas with basic modern living conditions. Starting with addressing the urgent needs and concerns of rural residents, we need to focus on improving rural living environments to promote the treatment of rural garbage and sewage and the renovation of rural toilets based on local conditions and improve the overall appearance of villages. We should accelerate shoring up weak links in infrastructure such as rural roads, drinking water and water supply, as these areas still have shortcomings and some are burdened with heavy debts. We must improve the public service system in rural education, elderly care, health care and culture.

We should focus on industrial employment to increase farmers' income. The central task of the "agriculture, rural areas and rural residents" work is to increase farmers' income and make their wallets bulge. In this regard, each region should develop "local specialties" based on local conditions, continuously expanding industries for rural prosperity and especially enhancing new rural industries and business forms. E-commerce is a new industry, with more and more agricultural products being sold online. Rural homestay is a new industry and also a new business form. When I worked in Anhui province, the number of homestays there doubled last year. Visiting homestays can generate income from renting out rooms, and more money can be made from meals. When guests leave, they may also buy local products they find tasty. The model of one sale leading to another maximizes agricultural comprehensive benefits. Therefore, expanding internal rural employment and increasing farmers' income have great potential in terms of new industries and business forms. We encourage enterprises to go to rural areas to develop agricultural product processing and tourism, and to involve farmers and help them get rich, rather than squeeze them out. In summary, we need to continuously expand channels for rural employment and opportunities to increase incomes to promote sustainable and stable growth in farmers' income, and make solid progress toward common prosperity.

We need to identify effective methods and practical tools to enhance rural governance. We should continue to strengthen grassroots Party organizations in rural areas and improve the rural governance system that combines self-governance, rule of virtue and rule of law under the leadership of Party organizations. In recent years, we have promoted some pragmatic and effective rural governance methods, such as the points-rewards system. Now, many rural areas across the country have implemented the points-rewards system, whereby households can earn points for having tidy courtyards, enthusiastically participating in collective welfare, or maintaining good mother-in-law and daughter-in-law relationships. These points can be exchanged for daily necessities, and points can also be deducted. Rural residents say that accumulating points is like accumulating virtue, which is a pragmatic and effective rural governance approach. We also need to leverage the positive role of village rules and regulations in promoting public order and customs, continuously changing outdated social mores and addressing prominent issues of people's concern such as high bride prices and extravagant funerals.

We will promote social civility in rural areas, from outward appearances to inner values. Rural revitalization should focus on both physical transformation and inner strength, aiming not only to fill farmers' pockets but also to enrich their minds. This involves advancing both material and cultural aspects of civilization. We will effectively organize and carry out a series of activities for rural cultural revitalization. Key initiatives include successfully hosting the Chinese Farmers' Harvest Festival and strengthening the protection and inheritance of excellent farming culture. Additionally, supporting people in rural areas in spontaneously conducting public cultural and sports 

We will build rural areas that are comfortable and beautiful to live in, and fit for work under the guidance of sound planning. The principle of "plan first, build later" is a key lesson from Zhejiang's Green Rural Revival Program. It is essential to start with practical conditions, approaching village planning in an organized and categorized manner, with a particular focus on enhancing the quality and effectiveness of these plans. It is not necessary for every village to have a plan; what matters most is practicality and effectiveness. Through sound planning, we can craft a distinctive and beautiful rural landscape. The city offers a vibrant life, while the countryside meets the people's aspirations better. By employing sound approaches, we can highlight the unique beauty of our villages. Thank you.

Shou Xiaoli: 

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

Sannongfabu:

Over the past few years, as resource and environmental constraints have tightened, we've noticed a shift toward greener farming practices. Can you tell us how green development in agriculture is coming along? Additionally, what plans are in place to further advance this initiative? Thanks!

Zhang Xingwang:

Thank you for your questions. If we take a walk in the countryside during this season, we will witness the influence and appeal of green initiatives. Green development is the basic characteristic of high-quality growth and is intrinsic to agricultural development. Since the 18th National Congress of the CPC, guided by Xi Jinping Thought on Ecological Civilization, we have continuously improved the systems and mechanisms for the green development of agriculture. We unveiled the first special plan for the green development of the country's agricultural sector during this period, accelerating the shift toward eco-friendly production methods and lifestyles. These green agricultural initiatives have yielded positive results. First, the quality of arable land has consistently improved, with the national average grade now at 4.76, up 0.35 compared to a decade ago, correlating to an increase of 35 kilograms of grain yield per mu. Second, agricultural water use efficiency has significantly improved. The effective utilization coefficient of farmland irrigation water is now 0.57, a 0.05 increase over the past decade, saving over 48 billion cubic meters of water annually. Third, the utilization rates for fertilizers and pesticides have seen substantial increases; they now exceed 41%. The comprehensive utilization rate of livestock and poultry manure reached 78%, that of straw exceeds 88%, and recycling of agricultural film has stabilized above 80% in recent years. We are continually progressing, transitioning ecological burdens into valuable green assets. Fourth, the number of high-quality agricultural products has increased, and the total count now stands at 78,000. This includes green, organic, and nationally renowned special and excellent new agricultural products, as well as those with geographical indications. The compliance rate for agricultural product quality and safety monitoring remains stable above 97%. Fifth, resource wastage has decreased, with a green distribution system for agricultural products progressively being established. A standout achievement is the expansion of cold storage facilities in many major production areas. These facilities have considerably reduced the waste of fresh produce, like vegetables and fruits, during preservation, transport and storage. For example, apples harvested last year and purchased this season still maintain almost the same superb quality and taste as when freshly picked. Such advancements showcase the success of our multi-faceted green development efforts, providing tangible benefits that enrich our everyday lives.

Next, we will thoroughly implement Xi Jinping Thought on Ecological Civilization, adhere to the concept that lucid waters and lush mountains are invaluable assets, and continue to promote a high-quality and green approach to agriculture, constantly enhancing the ecological foundation for high-quality agricultural development. Our focus will be on four aspects:

We will intensify resource utilization, mainly focusing on land and water. We will strengthen farmland protection and quality improvement, integrate land use with soil conservation, address degraded farmland, and promote water-saving practices in agriculture through agronomic, variety, engineering and management measures to enhance the efficient use of water in agriculture.

We will minimize input materials, mainly focusing on chemical fertilizers and pesticides. The overuse of chemical fertilizers and pesticides still persists in some regions. We will implement scientific fertilization and efficiency enhancement initiatives, and promote green and integrated prevention and control of crop diseases and pests, achieving reduction and efficiency gains. For example, the integrated approach to pest and disease prevention and control and the use of drones for pest control have significantly contributed to the green transformation of production methods.

We will recycle waste into resources, focusing on crop straw, livestock and poultry manure, and plastic mulch. We will develop green farming and breeding models such as pig-biogas-fruit and rice-fish systems based on local conditions, explore incentives for manure utilization, and promote low-cost and local utilization, focusing on converting waste into fertilizer, feed and energy. We will also promote the scientific returning of straw to the land to augment soil with organic matter, efficient straw removal, and the scientific use, recycling and disposal of plastic mulch, achieving both economic and ecological benefits.

We will promote low-carbon industrial chains, mainly focusing on developing eco-circular agriculture. Leveraging major projects such as national modern agricultural industrial parks, advantageous and characteristic industrial clusters, and towns with agricultural strengths that we are promoting, we will lead and drive the green and low-carbon development of the entire industrial chain.

Thank you.

Xinhua News Agency:

This year marks the fourth year of the transition period after winning the battle against poverty. How is the consolidation of the poverty alleviation results going? What are the plans for the next step? Thank you.

Han Jun:

Thank you for your questions. After winning the battle against poverty, how to consolidate and expand the achievements of poverty alleviation is a crucial issue which is highly valued by General Secretary Xi Jinping. He underscored that to ensure that there is no large-scale return to poverty, we should pay attention to monitoring and assistance to prevent people from falling back into poverty, boost internal forces, and continue to consolidate and expand the achievements of poverty alleviation. The task is the foundation and prerequisite for rural revitalization, and it is also the bottom line for comprehensively promoting rural revitalization. This work runs through the whole process of rural revitalization. After winning the battle against poverty, the CPC Central Committee clearly set a five-year transition period for consolidating and expanding the achievements of poverty alleviation. This year is the fourth year, and next year is the fifth year. For more than three years, we have maintained the overall stability of the assistance responsibility, policy support, regional collaboration and work system, and made concerted efforts in all aspects to firmly hold the bottom line of no large-scale return to poverty. The total number of people who were lifted out of poverty with new employment has now remained above 30 million for three consecutive years. Because the most important income of these people lifted out of poverty now depends on working, whether they work locally or elsewhere, their employment must be stable, which is the current situation. The per capita disposable income of rural residents in counties lifted out of poverty in 2021 was 14,051 yuan, and by 2023 it had increased to 16,396 yuan, with the growth rate consistently exceeding the national average for rural residents. In the first half of this year, 32.74 million people lifted out of poverty found jobs, and the per capita disposable income of rural residents in counties lifted out of poverty continued to grow rapidly. Now over the years in areas lifted out of poverty, there have been significant improvements to infrastructure during the process of poverty alleviation, including during the transition period. The appearance of villages has also undergone great changes. If you go to Jinzhai county in Anhui province, it is hard to imagine how poor it was in the past, but the people are now living good lives.

This year is a crucial year for consolidating and building on achievements in poverty alleviation and effectively dovetailing rural revitalization. As I just said, the five-year transition period will expire next year. Now everyone is very concerned about what to do after it expires? The third plenary session of the 20th CPC Central Committee made it very clear that we must refine the regular mechanisms for preventing rural residents from lapsing or relapsing into poverty as well as establish a system of multi-tiered and categorized support for low-income rural residents and underdeveloped areas. We are still studying the policy alignment after the five-year transition period expires. But one thing I think is for sure: the basic assistance and development-oriented aid for underdeveloped areas and low-income residents must be maintained for a long time, and can only be strengthened rather than weakened. We must firmly ensure no large-scale return to poverty with persistent efforts. To ensure this bottom line, the basic assistance and development-oriented aid for low-income residents and underdeveloped areas will only be increased rather than weakened, policy measures cannot be withdrawn, and the intensity of work must continue to increase.

Next, we will think of more ways to enhance the internal driving force of areas and people that have just shaken off poverty, so that the achievements in poverty alleviation will be more consolidated and more sustainable. We will improve and make good use of the monitoring and assistance mechanism to prevent people from slipping back into poverty, with the focus on two aspects. One is accelerating the establishment of a monitoring system to prevent rural residents from lapsing or relapsing into poverty. To further improve the efficiency of monitoring and identification, some big data could be better used to reduce the burden at the primary level. The other is accurately implementing measures of assistance to prevent monitored groups from lapsing or relapsing into poverty. Some of these assistance measures ensure basic living standards for people in difficulty. For those who are unable to work, this bottom line must be upheld. For those who are able to work, development-oriented assistance should be taken to help them find jobs, start businesses, carry out productive activities and increase income. In short, early detection and early intervention should be achieved to eliminate the risk of lapse or relapse into poverty. As of the end of June this year, a total of 60.4% of those being monitored nationwide had stabilized and eliminated risks, and the rest had received support. The 480,000 newly identified people this year had also received targeted assistance. Moving forward, we must speed up the study for a regular mechanism to prevent lapse or relapse into poverty that covers the rural population, and establish a multi-tiered and categorized assistance system for low-income rural populations and underdeveloped areas.

We will continue to strengthen industrial and employment support. In terms of industries, the proportion of central fiscal funds for policy alignment used to support industrial development should be kept stable at more than 60%. According to the actual conditions of areas lifted out of poverty, we will promote the improvement of assisted industries' quality and efficiency and improve the mechanism for uniting rural residents and driving growth of their income. In terms of employment, currently, income from nonagricultural work accounts for 68.7% of the income earned by people who have emerged from poverty. In this regard, we must make good use of labor cooperation, employment support workshops, public welfare jobs and other channels, and do everything possible to expand employment channels for people who have been lifted out of poverty, increase employment opportunities and ensure that the scale of employment is stable at more than 30 million.

We will do a good job in consolidating and building on the achievements in poverty alleviation and effectively dovetailing rural revitalization. We will focus on 160 key counties receiving national assistance for rural revitalization, 35,000 key resettlement areas for people relocated from inhospitable areas for poverty alleviation, as well as other key areas. We will deepen collaboration between the eastern and western regions and encourage stronger and targeted assistance from the central Party and government departments. We will further promote the "10,000 private enterprises revitalizing 10,000 villages" initiative as well as implement a number of projects to shore up weak links and boost development, so that areas and people that have shaken off poverty will not be left behind in comprehensive rural revitalization during the modernization process and will catch up and share the achievements of rural revitalization and modernization. Thank you.

Shou Xiaoli:

Thank you, Mr. Han Jun, as well as thank you to all the speakers and reporters for participating. This concludes today's press conference. Goodbye.

Translated and edited by Wang Yiming, Huang Shan, Xu Kailin, Guo Yiming, Ma Yujia, Zhang Rui, Wang Wei, Lin Liyao, Zhou Jing, Xu Xiaoxuan, Li Huiru, Liu Caiyi, Yuan Fang, Mi Xingang, Liao Jiaxin, Wang Ziteng, Yan Bin, Liu Sitong, Rochelle Beiersdorfer, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Liu Liehong, administrator of the National Data Administration (NDA)

Ms. Luan Jie, deputy director general of the Department of Policy and Planning of the NDA

Mr. Zhang Wang, director general of the Department of Data Resources of the NDA

Mr. Du Wei, director general of the Department of Digital Technology and Infrastructure Construction of the NDA

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, 2024

Xing Huina: 

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Liu Liehong, administrator of the National Data Administration (NDA), to brief you on relevant developments and to take your questions. Also present today are Ms. Luan Jie, deputy director general of the Department of Policy and Planning of the NDA; Mr. Zhang Wang, director general of the Department of Data Resources of the NDA; and Mr. Du Wei, director general of the Department of Digital Technology and Infrastructure Construction of the NDA.

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

Liu Liehong:

I would like to express my gratitude to you all for your interest in and care for the data-related work. The 20th Central Committee of the Communist Party of China (CPC) convened its third plenary session last week. Since then, the NDA has been actively studying, publicizing and implementing the guiding principles from the session. At this juncture, we are holding this press conference to brief you on the specific measures the NDA will take to implement the resolutions of the plenary session and to promote high-quality development of the national data sector. Since its establishment last October, the NDA has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and deeply grasped its functions. We have focused on advancing reforms to ensure data as a factor of production is allocated by the market, coordinated the development of a Digital China, digital economy and a digital society, aimed to better serve high-quality development through data, and opened new prospects for data-related work.

In terms of reforms to promote market-based allocation of data as a factor of production, we have accelerated the improvement of the foundational institutional system for data. To ensure that data can be produced, flow smoothly, be effectively utilized and remain secure, we have emphasized systematic planning and enhanced policy support. We have studied and drafted multiple institutional and regulatory documents guiding fields including data ownership, circulation and transaction, revenue distribution, security governance, development and utilization of public and corporate data, high-quality development of the digital economy, and data infrastructure construction. Through these efforts, we aim to transform China's vast data resources into new national competitive advantages. During this process, some localities have explored the structural separation of data ownership at a faster pace, advanced the improvement of mechanisms for data authorization, and sped up the improvement of the market system for data as a factor of production, providing strong support for local economic and social high-quality development.

We have accelerated the deployment of data infrastructure, thoroughly implemented the "East Data, West Computing" project, and promoted the development of a nationally unified computing network. Significant progress has been made in areas such as computing power layout, network transmission, monitoring and dispatch, computing-electricity coordination, and security protection. We have studied, developed and expanded policies and measures to foster the growth of the data annotation industry, publishing a list of cities tasked with building data annotation bases. Additionally, we have studied and formulated guidelines for data infrastructure construction, and initiated pilot projects for data circulation and utilization infrastructure, so as to create a secure and trustworthy environment for data flow and use.

We have strived to enhance the development and utilization of data resources. The NDA has, along with other related departments, issued a three-year action plan to promote the use of data as a factor of production (2024-2026), releasing the first batch of 20 exemplary data use cases, as well as identifying and promoting a number of typical application scenarios. At the same time, we are actively promoting reforms of public data resources management and operation mechanisms. By leveraging the development and utilization of public data, we aim to drive the integration and application of various data sources, and vigorously promote the development and utilization of enterprise data resources. Local data management authorities are also actively exploring ways to facilitate compliant and efficient flow and use of data, and establishing diverse application scenarios and models to better unleash the value of data as a factor of production.

In coordinating the construction of a Digital China, the digital economy and a digital society, we have sped up the building of a Digital China, issued the list of key points for the work on building a Digital China in 2024, and made plans for this year's key tasks. We have successfully held the 7th Digital China Summit, during which 470 high-level activities of all kinds were organized with 1.15 million people participating in the offline events in various forms. The full text of the Digital China Development Report (2023) has been released, systematically summarizing the important progress and achievements of the construction of a Digital China. At present, we are working with Guizhou province to prepare for the China International Big Data Industry Expo 2024. We hope all sectors of the society will pay more attention to the expo and actively participate in it.

We have deepened the role of digitalization in empowering high-quality economic development. We have issued key points of the work on the digital economy in 2024 this year, continued to promote the integrated development of the real economy and digital economy, kept focusing on high-quality development as the top priority, accelerated advancing the innovative development of the digital economy, and continued to foster and develop new quality productive forces. 

We have carried out overall planning for the development and construction of the digital society, unveiled a guideline on promoting the development of smart cities and the across-the-board urban digital transformation, and also formulated the list of key tasks for the implementation plan on facilitating common prosperity through a greater and better digital economy, promoting the sharing of digital dividends and effectively enhancing the sense of fulfilment from the digital society.

We have made greater efforts to advance international cooperation in the data field. In June, the inaugural meeting of the Singapore-China Digital Policy Dialogue mechanism was held in Beijing, which focused on strengthening exchanges and cooperation on the cross-border flow of data, artificial intelligence and other agendas China and Singapore are concerned about. We have carried out eight major measures for supporting high-quality Belt and Road cooperation and advanced policy exchanges and program cooperation with 14 countries that have jointly signed the Beijing Initiative on Belt and Road International Digital Economy Cooperation.

This year marks the 75th anniversary of the founding of the People's Republic of China. It is also a crucial year for achieving the objectives and tasks laid down in the 14th Five-Year Plan and an important year for making breakthroughs in laying the groundwork and accelerating the progress in the data work. Next, the NDA will thoroughly implement the guiding principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee, study and issue the guidelines on studying, publicizing and implementing the guiding principles of the third plenary session of the 20th CPC Central Committee, and review and apply the valuable experience we have gained from our efforts to deepen reform comprehensively since the launch of reform and opening up, especially in the new era. We will further promote reform related to the market-based allocation of data elements, coordinate the planning and construction of a Digital China, the digital economy and a digital society, accelerate the development of new quality productive forces, advance the in-depth integration of the real economy and digital economy at a faster pace, and speed up the cultivation of a national unified data market, so as to contribute the strengths of data to Chinese modernization. 

That is all for my introduction. My colleagues and I will take your questions. Thank you.

Xing Huina:

The floor is now open for questions. Please identify the media outlet you work for before raising questions.

Nanfang Daily, Nanfang Plus:

The third plenary session of the 20th CPC Central Committee has made plans for further deepening reform comprehensively to advance Chinese modernization. What role will data play in this? How will the NDA advance the reform related to the market-oriented allocation of data elements and effectively unleash the vitality of data? Thank you.

Liu Liehong:

Thank you for your questions. I will answer this one. The third plenary session of the 20th CPC Central Committee has made plans for accelerating the construction of the system and mechanism for digital economy and improving rules and institutions for the data market, pointing out the direction for advancing further reforms in the data field.

China is the first country in the world to consider data as a factor of production. Since the establishment of the NDA, we have deeply felt that data, as a new factor of production, has huge potential value and is constantly changing and evolving. Advancing reform related to the market-based allocation of data elements and promoting their smooth flow and efficient allocation are conducive to giving better play to the role of data, as a new type of production factor, in optimizing the combination of other production factors and achieving innovative allocation of production factors, creating new industries, business models and growth drivers, and promoting the cultivation and development of new quality productive forces. They are conducive to promoting the development of data-based sci-tech innovation capacity and enhancing the new competitive edge in the digital age, by leveraging the strengths of China's enormous market, abundant application scenarios and vast data resources. They are conducive to speeding up digital empowerment, driving economic growth drivers to shift from relying mainly on increasing input of factors of production to making development driven more by innovation, thus promoting high-quality development. They are conducive to improving public management and services, providing solid support for modernizing China's system and capacity for governance.

As data is distinct from traditional factors of production like land and capital, data work tends to be more complicated. For example, data exhibits both positive and negative externalities. On one hand, we promote its circulation and utilization to enhance resource allocation efficiency and foster new industries and business forms; on the other hand, we prevent privacy breaches, data abuses and other potential risks in a bid to achieve more efficient and more secure development. Additionally, as data work covers a broad scope, involves diverse entities and faces complex situations, we need to stimulate the driving forces of all parties and explore governance rules, methods and tools tailored to data characteristics, thereby improving governance effectiveness. For another example, data is both the result of and the resource for advancing digitalization, networking and intelligence. We need to accumulate data resources from digital transformation while deepening it through data development and utilization, with the aim to achieve positive interactions and coordinated development. What's more, it's challenging to balance data development and security. We should strengthen policy support for data development while adhering to data security laws and regulations, actively encouraging trials and exploring innovative development models. As such, to promote reforms related to the market-oriented allocation of data elements, we must rely on reform and innovation and harness the momentum of deepening reforms.

As part of our efforts to thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee, we will focus on reforms related to the market-oriented allocation of data elements, improve the market system and rules for data elements, foster an integrated national market for data, and promote the development and utilization of data elements.

We will adhere to the principle of "establishing the new before abolishing the old," and build and improve basic systems for data. With a focus on system building, we will strengthen top-level design and overall planning, work to formulate policies related to data property rights, circulation and trading, income distribution, and security governance, and expedite the construction of basic systems that accommodate the characteristics of data elements, align with market rules and meet development needs.

We will give full play to the pioneering spirit at the community level and advance data infrastructure construction. We will accelerate the development of a nationally unified computing network and data infrastructure. Just as food requires a cold chain, infrastructure is also necessary for data circulation. We will support local pilot projects to create a "cold chain" for data.

We will adhere to a problem-oriented approach and remove bottlenecks constraining data development and utilization. We will focus on addressing concerns regarding compliance in data supply and utilization, continuously explore new paths for developing and utilizing public data and enterprise data, vigorously promote the "Data Element X" initiative, and tap into and unleash the value of data elements.

We will stimulate and enhance social vitality to strengthen and expand the data industry. We will leverage market mechanisms more effectively, foster and expand data enterprises, improve the data circulation and trading ecosystem, and cultivate a competitive, orderly, prosperous and dynamic data industry.

We will promote reform through opening up and strengthen international cooperation in the digital economy. We will pragmatically engage in mutually beneficial digital economy cooperation, strengthen cooperation platform construction, actively participate in the formulation of data governance rules, and develop new institutions for a higher-standard open economy. Thank you.

CNR:

As the digital foundation for Chinese modernization, computing infrastructure has always gained much attention. What has the NDA done to accelerate the construction of a unified computing network around the "East Data, West Computing" project? What are the considerations and plans for the next step? Thank you.

Liu Liehong:

Let's invite Mr. Du to answer your question. 

Du Wei:

Thanks for your question. In the digital economy era, computing power is a new quality productive force. To optimize the distribution of productive forces and give full play to the energy advantages of China's western regions, the country proposed the "East Data, West Computing" project. This initiative is based on a comprehensive consideration of factors, including energy supply, geological conditions, climate and environment, data transmission distances, and existing industrial infrastructure. In February 2022, China officially launched the project. This involved initiating the construction of national computing hub nodes in eight locations: the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, the Chengdu-Chongqing region, north China's Inner Mongolia autonomous region, southwest China's Guizhou province, and northwest China's Gansu province and Ningxia Hui autonomous region. Additionally, the project outlined plans for 10 national data center clusters.

Over the past two years, with the joint efforts of relevant departments and computing hub nodes, the "East Data, West Computing" project has made positive progress. As of the end of March this year, more than 1.46 million standard server racks have been installed in 10 national data center clusters, with the overall utilization rate reaching 62.72%, an increase of 4 percentage points over 2022. Network latency between eastern and western hub nodes has generally met the 20-millisecond target. Green power use in these data centers exceeded the national average, with the utilization rate of green power in some advanced data centers reaching about 80%. The power usage effectiveness (PUE) of newly built data centers dropped to as low as 1.10. The implementation of the project has driven growth in related industrial chains, including IT equipment manufacturing, information communication, basic software and green energy. It has also improved the overall level of national computing power.

At the end of last year, we worked with relevant departments to release an implementation plan to speed up the construction of a national computing power network. Five key tasks are outlined in the plan, including coordinating general computing power, intelligent computing power and supercomputing power; coordinating the layout of eastern, central and western regions and large, medium and small cities; coordinating the application of computing power, data and algorithms; coordinating the construction of computing power and green electricity; and coordinating the development of computing power and security. The national computing power network is an expansion and deepening of the "East Data, West Computing" project. It aims to promote efficient, coordinated scheduling of computing resources nationwide and form cross-regional and cross-departmental synergy. This development will provide inclusive, easy-to-use, low-cost, green and secure public computing services for all aspects of economic and social life.

The plan includes specific targets that require greater efforts to achieve. For example, by the end of 2025, new computing power in national hub nodes should exceed 60% of the national total, and green power should account for over 80% of power consumption in new data centers at these hub nodes. Next, we will work with relevant departments and localities to accelerate the construction of a national computing power network. This initiative aims to drive high-quality economic development through advanced computing power. Specifically, it promotes the coordinated development of multi-source heterogeneous computing power and concentrates various new computing capabilities at national hub nodes. It also encourages 400G/800G high-bandwidth all-optical connections between national hubs and demand areas. This includes guiding telecom operators to improve the efficiency of "public transmission channels" and promoting the deep integration of computing and networking. The plan promotes coordination between industry data and computing power, ensures reliable data circulation, and improves data processing capabilities and governance. It also promotes the integrated development of computing power and electricity, strengthening synergy between hub and non-hub nodes. This includes supporting non-hub nodes in the central and western regions rich in green electricity resources to integrate into the national computing power network. Finally, the plan aims to improve the security capabilities of the national computing power network and ensure that high-quality development and greater security reinforce each other. 

That's all for my answer. Thank you!

Yicai:

The NDA recently announced that this year it will successively release policy documents on data property rights, data circulation, revenue distribution and security governance, increasing policy provision. Could you please introduce the work objectives and specific arrangements? Thank you.

Liu Liehong:

I'd like to invite Ms. Luan to answer your questions.

Luan Jie:

Thank you for your question and for your attention to basic data systems. The construction of basic data systems is an important measure for further deepening comprehensive reforms and is a long-term, complex and systematic project. The third plenary session of the 20th Central Committee of the Communist Party of China explicitly called for accelerating the establishment of systems for data property rights attribution, market transactions, proceeds distribution and interests protection, enhancing data security governance and regulatory capabilities, and creating an efficient, convenient and secure mechanism for cross-border data flows. Since the establishment of the NDA, we have prioritized advancing the construction of basic data systems. We are expediting the drafting of policy documents related to data property rights, circulation and transactions, proceeds distribution and security governance. Our goal is to establish and improve basic data systems that create favorable conditions for "data to be available, to flow smoothly, to be used effectively and to be securely protected," continuously enhancing the systemic, holistic and coordinated nature of the market-oriented allocation reform of data elements.

First, we focus on addressing practical challenges by providing specific, clear and actionable rules and guidelines. In response to societal expectations for data property rights attribution, we are widely soliciting issues and difficulties in the field of data property rights from across the country. We conduct in-depth research, seek advice at the grassroots level and refine the rights of data ownership, usage and management to provide institutional guarantees for data supply, circulation and utilization. We emphasize studying specific countermeasures individually, aiming to provide concrete, clear and operationally effective property rights allocation solutions to help all parties confirm their respective rights.

Second, we are committed to promoting circulation and usage to support the cultivation of new quality productive forces and foster high-quality development. Currently, there is a widespread belief that the data element market is still in the phase of "expanding the market," with improvements needed in the scale, efficiency and rules of data circulation and transactions. To cultivate a unified national data market, efforts should focus on building a data circulation and transaction system and setting developmental goals for data circulation and transactions. Regarding the construction of the proceeds distribution system, we place greater emphasis on building incentive mechanisms, utilizing price formation mechanisms and fully mobilizing the enthusiasm, initiative and creativity of all parties involved.

Third, we focus on strengthening pilot explorations to ensure that policies and systems are both derived from practice and effectively guide practice. The data field is evolving rapidly with swift innovation, with policies and systems often lagging behind practical development. Therefore, we will make concise deployments for areas where the path is clear and use pilot programs to explore and advance areas where consensus has not yet been reached. Based on the results of pilot explorations and industry practices, we aim to develop institutions.

In addition, we uphold the security bottom line to resolutely safeguard national security and protect both personal information and business secrets. We aim to better coordinate development and security, explore new security governance mechanisms and integrate security throughout the entire process of data supply, circulation and utilization.

Currently, various documents are being refined promptly. Moving forward, we will implement the tasks and deployments outlined by the third plenary session regarding the construction of basic data systems. Following the principle of finalizing and releasing each document as it is ready, we will advance the issuance of these documents to provide institutional guarantees for unleashing the potential of data elements as well as supporting high-quality economic and social development.

That's all for my response. Thank you.

Xinhua News Agency:

As Mr. Liu just introduced, preparations for the China International Big Data Industry Expo 2024 are already underway. What are the differences between the big-data expo this year and in previous years? Can you introduce this year's highlights and special events? Thank you.

Liu Liehong:

I will take these questions. Thank you for your interest in the Big Data Expo. This year's Big Data Expo is the first to be organized by the NDA and hosted by the People's Government of Guizhou Province. The Big Data Expo has been held for 10 sessions since 2015. With years of experiences, the Big Data Expo has become an important platform for bringing together industry elite, setting the pace for avant-garde trends as well as pooling global resources.

This year's Big Data Expo is scheduled to be held in Guiyang city, Guizhou province from August 28 to 30. We hope that people from all walks of life will pay more attention to and participate in the expo. Themed around integrating digital and intelligent technologies to reshape the future and realize high-quality development of the digital economy, this year's expo features professional exhibitions, releases of achievements, industry exchange activities and serial special events. We hope that, by holding the Big Data Expo, we can further promote the high-quality development of the digital economy, fully tap the potential of data, contribute to building a digital China and take the data industry to new heights.

This year, with a greater emphasis on professionalism, we will invite relevant national ministries and commissions to release a number of high-level, distinctive and influential industry research reports, technical norms, typical cases, etc. Among them, the NDA will also release a series of achievements. This year's Big Data Expo will also be centered on three key areas, namely, the new frontier of the digital economy, basic data systems as well as data empowerment, focusing on industrial development, data space, international collaboration, artificial intelligence (AI), digital transformation, data circulation, digital governance, digital villages, computing power coordination, data security and other themes to carry out industry exchange activities, and select and release major leading sci-tech achievements.

This year, we will also highlight the service aspect, continue to foreground participating enterprises and carry out various activities such as product promotion, trade negotiations, cooperation exchanges and observation tours. We hope that, through the platform of the Big Data Expo, we can build bridges for more enterprises and help Chinese and foreign enterprises find opportunities for business cooperation.

This year we will also highlight the diversity of exhibitions. The theme of high-quality development of the digital economy will run through the entire process and every link of the expo. Six themed exhibition sections will be set up and will cover digital industry, integration of digital and real economy, data trading, digital governance, digital infrastructure and data security. We will invite data, industry, agriculture, finance and other sectors and institutions both at home and abroad to participate. The latest development dynamics, achievements and cutting-edge trends of the domestic and foreign data industries will be fully on display, so that all sectors of society can gain tangible benefits through the Big Data Expo.

Thank you.

Red Star News:

We have noticed that there are still some bottlenecks that restrict the availability, flow, usage and security of data. Regarding the issue of availability, what attempts and efforts have been made to expand the supply of public data? What are the plans for the next stage? Thank you.

Liu Liehong:

I would like to ask Mr. Zhang to answer these questions.

Zhang Wang:

Thank you for the question. Public data is generated by government departments at various levels and relevant enterprises and institutions while performing their duties and providing public services. This data is characterized by its strong foundation, relatively standardized management, and high economic and social value. As a result, both the market and society have placed great expectations on its potential. Currently, public data resources are developed and utilized in three main ways: sharing, opening, and authorized operation. Sharing refers to data sharing and exchange between government departments at various levels. This practice is mainly used to address information asymmetry between different departments and regions, helping governments at all levels better perform their duties and serve enterprises and the public more effectively. In recent years, the State Council has issued six batches of data-sharing responsibility lists, supporting services such as "one visit at most," "online services," and "one-stop government services." Opening refers to making public data or datasets available online, primarily to facilitate free access for enterprises and the public. According to relevant institutions, 226 localities nationwide have established public data platforms, including at the provincial and municipal levels, offering over 340,000 datasets. However, some data resources, while economically valuable, are sensitive. These need to be processed appropriately to ensure security while serving economic and social development. For such data, some regions and departments have begun providing services through authorized operations, accumulating some experience. However, there is still a need to strengthen policy guidance to both support development and regulate operations. 

To better promote the development and utilization of public data resources, the NDA will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee. We will focus on better leveraging market mechanisms to improve the efficiency and effectiveness of public data resource allocation and utilization in several areas. On the one hand, we will continue to enhance government data sharing and public data openness. On the other hand, we will treat authorized operations as an important supplement to sharing and openness, resolving unclear responsibilities in data supply and usage management and insufficient motivation for data provision. Our main approach is to promote the reform of public data resource management and operational mechanisms. We aim to clarify the responsibilities and obligations for data supply, usage and management, stimulating motivation for data provision and market innovation. We are establishing a public data resource registration system, standards for authorized operations, and corresponding information disclosure mechanisms. We're also clarifying compliance policies and management requirements while cooperating with relevant departments to enhance oversight of public data product and service pricing. For public data in governance and public welfare, we advocate conditional free use. We will also support and cooperate with various regions and departments to intensify the development and openness of public data resources. By promoting collaboration between ministries and provinces, as well as government and enterprises, and launching partnerships with relevant departments, regions, and operating entities, we aim to jointly create a positive ecosystem for data resources that ensures they are readily available, easily circulated, effectively used, and securely protected.

That concludes my answer. Thank you.

China Financial and Economic News:

The third plenary session of the 20th CPC Central Committee proposed the construction and operation of national data infrastructure to promote data sharing. What measures has the NDA taken to advance data infrastructure construction, and what specific work will be undertaken going forward? Thank you.

Liu Liehong:

Mr. Du, please answer the questions. 

Du Wei:

Thank you for your questions. As you mentioned, the third plenary session of the 20th CPC Central Committee issued relevant plans on the matter. Data infrastructure serves as the foundational support for the implementation of basic data systems and the efficient development and utilization of data. It is an important instrument for comprehensively promoting the high-quality development of a digital China, the digital economy and the digital society.

Specifically, the construction of data related infrastructure is based upon networks and computing facilities and involves the full cycle of data development and utilization, including data aggregation, processing, circulation, application, and operation, with the aim to utilize data as a productive factor and a kind of resource so as to create value. The construction of data infrastructure is the systematic integration of project construction and institutional development. It covers not only the development of facilities such as platforms and systems, but also designs of standards and norms, and mechanisms and systems. Additionally, it encompasses the application of technological innovations in privacy protection and data identification registration.

Over the past few years, various regions, industries and sectors have actively explored the construction of data infrastructure, resulting in the development of multiple technological solutions to privacy calculus, data spaces, blockchain and data switching service networks. These efforts have laid a solid foundation for the integrated construction of data infrastructure. Recently, the NDA has been organizing the formulation of guidelines on the construction of data infrastructure. This aims to clarify the concept, development vision and construction goals of data infrastructure under present conditions, build a social consensus, define construction directions and promote the establishment of a collaborative, large-scale, efficient, standardized and reliable data infrastructure service system.

Currently, we are focused on the circulation and utilization of data, targeting key industries and typical application scenarios. Based on unified directory identification, unified identity registration and unified interface requirements, i.e. a unified infrastructure foundation, we are deploying and initiating pilot projects for various technological approaches such as privacy calculus, data spaces, blockchain and data switching service networks. We plan data circulation and utilization infrastructure projects from the top down, supporting different cities in taking the lead in trials. By using real-world scenarios to drive technological advancements, we aim to enrich the supply of solutions and promote the efficient and trustworthy circulation and utilization of data across departments, levels, regions and entities.

In conclusion, the construction of the data infrastructure system is a long-term and systematic endeavor. Going forward, we will continue to advance the development of the data infrastructure system by placing greater emphasis on system integration, focusing on key priorities and achieving effective reforms, as required. The aim is to make new contribution to fully unleashing the potential of data elements and achieving their value. We welcome suggestions from all sectors of society, and invite everyone to jointly explore the mechanisms, paths and solutions for data infrastructure construction and contribute their wisdom to the high-quality development of the economy and society and the building of a digital China.

Thank you.

CCTV: 

We have noted that this year's government work report highlights the deepening of innovative development in the digital economy. Since the data industry is an important part of this, what measures will the NDA take next to cultivate and expand the data industry? Thank you.

Liu Liehong:

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

Zhang Wang:

Thank you for your question. Cultivating the data industry is a crucial aspect of the reform of the market-based allocation of data elements. It is also an important link in nurturing the digital economy and developing new quality productive forces. Many people are concerned about what the data industry entails and what forms it includes. We understand the data industry as an emerging industry formed by using data technology to develop data resources into products and services. The main players in this industry, according to our understanding, include enterprises engaged in data technology innovation, resource development and utilization, and data technology-empowered applications. Also included are enterprises involved in the circulation and trading of data products and services, as well as those engaged in the construction of data infrastructure.

It's important to recognize that data technology is advancing rapidly, and the data industry is continually evolving. We will closely monitor these changes to ensure we formulate better policies. Our commitment to nurturing and developing the data industry stems from several key factors:

First, data is a critical production factor. Its economic value is immense, and when utilized correctly, it can significantly enhance the allocation efficiency of other production factors such as labor, capital and technology. Therefore, whether the goal is nurturing new economic drivers or improving total factor productivity, accelerating the development of the data industry is essential to harness data's full potential and energy.

Second, the true value of data only emerges when integrated into economic and social activities. This integration relies on collection, storage, computation, management and application of data, as well as the circulation and trading of data products and services. Thus, it is important to cultivate a group of market players in the areas of technological innovation, resource aggregation, application empowerment, circulation and trading, and infrastructure development.

Third, while the data industry is intrinsically linked with the information and communication technology and internet industries, it possesses unique development characteristics. Current policies supporting high-tech and software companies do not adequately address the needs of data enterprises. By classifying the data industry as an emerging industry and formulating targeted policies, we can better address market concerns, enhance the sense of gain among data enterprises, and align with the laws of technological and industrial development. This approach will effectively pool resources, nurture a group of robust market entities, and enhance the industry's competitiveness.

The NDA places great importance on cultivating the data industry. In implementing the guiding principles from the third plenary session of the 20th Central Committee of the CPC, we are developing policies to promote the industry by leveraging market mechanisms and creating a fairer and more vibrant market environment. On the one hand, we are defining the nature and scope of the data industry, catering to market demands, and nurturing diverse market players. On the other hand, we are maximizing the decisive role of the market in resource allocation and supporting companies in accelerating development in areas such as resource aggregation, technological breakthroughs, product and service offerings, circulation and trading, and infrastructure development. Additionally, we recognize the importance of effectively utilizing policy instruments to facilitate appropriate arrangements in investment plans, talent development and industrial clustering. Many companies have actively involved in the policy drafting process, highlighting the market's keen anticipation in nurturing and expanding the data industry. Building upon thorough research and comprehensive consultations, we will speed up the introduction of supportive policies for the industry's growth.

That's all I have to say on this matter. Thank you.

Hong Kong Economic Herald:

I am particularly interested in China's international cooperation in the digital economy. Could you please share what work the NDA has done in this area? Furthermore, how is the administration planning to align with current development trends to further strengthen international exchange and cooperation in the field? Thank you.

Liu Liehong:

Thank you for your interest in international cooperation in the digital economy. I will answer this question. Data has become a fundamental resource and innovation driver for global economic development. The digital economy and green development are now key areas of focus and cooperation for countries worldwide. The NDA is responsible for promoting international cooperation in the data field and participating in the formulation of international digital governance rules. 

Since its establishment, the NDA has actively fulfilled its responsibilities. We've strengthened intergovernmental data trust and signed memorandums of understanding on the digital economy with over 10 countries, fostering pragmatic cooperation in this field. In June, we hosted the inaugural meeting of the China-Singapore Digital Policy Dialogue Mechanism in Beijing, engaging in thorough exchanges and cooperation on issues such as cross-border data and artificial intelligence. We've also been actively implementing the eight major steps for supporting high-quality Belt and Road cooperation and the Beijing Initiative for Digital Economy Cooperation. We're further aligning with international rules by participating in Digital Economy Partnership Agreement (DEPA) and the UN Global Digital Compact negotiations. Additionally, we're collaborating with relevant international organizations to establish standards in the data field. We're also committed to creating a favorable environment for the development of Chinese and foreign digital enterprises. We support and encourage Chinese companies, especially those in the digital sector, to expand their brands and quality products and services internationally, and to provide good solutions and experiences for digital transformation worldwide. We also remain committed to addressing practical issues for foreign companies in China and providing high-quality services. We welcome companies from all over the world to participate in China's process of marketizing and valorizing data elements, sharing in the dividends and opportunities of development.

Thank you.

National Business Daily:

At the end of 2023, the NDA released the "Data Elements X" Three-Year Action Plan (2024-2026), aimed at fully stimulating the potential of data elements. Could you please provide an update on the progress made in implementing this plan over the past six months? Additionally, what are your future work plans in this area? Thank you.

Liu Liehong:

I'll invite Ms. Luan to answer this question.

Luan Jie:

Thank you for the question. First, let me elaborate on the "multiplier effect" of data elements. This concept refers to data's role as a factor of production in large-scale socialized production. Data elements enhance overall factor productivity by synergizing with other factors of production, such as capital, land and labor. Moreover, data generates diversified value increments through multi-scenario applications and reuse by multiple entities. The fusion of diverse data catalyzes new industries and business models, triggering a multiplier effect on economic output. This phenomenon demonstrates the significant driving force that data, as a factor of production, exerts on economic development.

At the end of last year, the NDA, in conjunction with relevant departments, issued the "Data Elements X" Three-Year Action Plan (2024-2026). Since its implementation, and with the concerted efforts of various departments and localities, we have seen the development and utilization of data successfully driving data supply and circulation. We have made initial progress toward our set goal of using "effective utilization" to drive "sufficient supply" and "smooth circulation" of data.

We are witnessing a continuous enrichment of data-empowered scenarios. We launched a call for "Data Elements X" case studies, which received an enthusiastic response. At the seventh Digital China Summit, we unveiled an initial batch of 20 case studies, showcasing exemplary experiences across 12 industry sectors. By highlighting the integrated application value of data elements across different industries, we aim to continuously stimulate enthusiasm for data development and utilization.

We continue to stimulate innovation in data utilization. The development and utilization of data rely on the coordinated efforts of typical scenarios, high-quality data and innovative resources. In early May this year, we launched the 2024 National "Data Elements X" Competition, providing a platform for competitive exchange on data element development and utilization. To date, 28 localities have initiated local competitions, with each area focusing on practical issues and highlighting its own unique characteristics.

We are accelerating the exploration of data utilization mechanisms. We are addressing challenges faced in various industries regarding data element application, including insufficient supply, poor circulation and unclear application benefits. We are working with relevant departments to jointly research and formulate pilot plans for key industry sectors. These efforts aim to explore new pathways for data development and utilization that are industry-specific and adaptable to different scenarios.

Moving forward, the NDA will collaborate with relevant government bodies to implement the following three tasks. First, we will continue identifying and publishing exemplary cases regarding the use of data as a factor of production. We will release the second batch of such cases during the upcoming Big Data Expo in August, further leveraging their pioneering and demonstrative role. At the same time, we will also launch the national finals for data use solutions in October. The final will draw on experience from various competitions across the country, exploring excellent data use solutions that are valuable, effective and applicable to other areas, in a bid to continuously diversify the enabling environment for data use. Furthermore, we will establish more pilots for data use. Focusing on the tasks of implementing policies, promoting supply, ensuring circulation and demonstrating effectiveness, we will work with relevant government departments to publish and implement pilot plans on data use in key sectors.

That covers everything for now. Thank you.

Xing Huina:

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

The Poster News APP:

Small and medium-sized enterprises (SMEs) are a key focus of the overall digital transformation drive. While SMEs in China are expediting their digital transformation efforts, they still face certain challenges. How can we address these challenges? Thank you.

Liu Liehong:

Thank you for your interest in SMEs' digital transformation. I'll take this question. We believe that smart and digital transformation reflects the overwhelming trend of development, and it is a necessity for SMEs. In recent years, the digital transformation of SMEs in China has shifted from theoretical plans to large-scale practice, evolving from a policy-driven approach to a value-driven strategy. While many businesses have made significant progress, challenges remain. Companies that excel in this area are often those with strong core competitiveness, marketable products and high-cost performances. These companies also emphasize the enabling role of digital measures, focus on key areas such as design, production, sales and services, and achieve high effectiveness in business operation, management and related services. Therefore, we believe that SMEs' digital transformation should focus on two aspects. First, SMEs need to enhance their capacities for innovation. For SMEs, strengthening sci-tech innovation means using digital technologies to improve their efficiency in research and development, production as well as sales and services, thereby building core competitiveness. In the meantime, SMEs need to make their products smarter and more digital, further improving their sustainable development capacity in aspects concerning smart delivery measures and brand building. Second, SMEs need to strengthen the use of data throughout the industrial chain. As SMEs often face insufficient data supply, we need to further leverage data's role to connect and drive innovation. We need to enhance data integration throughout the industrial chain. We also need to create a data circulation and utilization system where leading enterprises play a dominant role and upstream and downstream enterprises help in transforming this system in a coordinated manner, in a bid to provide targeted solutions tailored to specific enterprises. .

Moving forward, the NDA will collaborate with relevant state organs to continue creating a conducive environment for SMEs' digital transformation. To strengthen policy support, we will enhance inter-departmental coordination and build synergy. We will launch and implement related digital transformation projects, promote digital transformation in key sectors and improve public service platforms for various regions, industrial parks and industrial clusters. We will provide more solution and services, supporting leading enterprise and third-party digital service providers to build comprehensive platforms that facilitate digital transformation, in a bid to promote coordination across industrial chains. To further leverage the enabling role of data, we are studying and formulating policies concerning the development and utilization of business data resources. We will improve the efficient supply of public data resources. In accordance with market principles, we will also promote the joint development and utilization of business data among enterprise of all sizes, so as to continuously meet the data resource needs of SMEs and other enterprises. We will further implement the three-year action plan to promote the use of data as a factor of production and enhance SMEs' capacity in data utilization, aiming to reduce costs while increasing efficiency. To create an environment for digital transformation, we support relevant parties in developing digital products, services and solutions that are small-scale, easy to use, portable and precisely suited to the need of SMEs. In this way, we aim to create an ecosystem for digital transformation that integrates supply and demand, highlights collaboration throughout the industrial chain and features value-driven approaches. We also encourage and support internet platforms and leading enterprises to leverage their strengths by opening their digital resources and transformation measures to SMEs, thus helping SMEs to achieve digital transformation. Thank you.

Xing Huina:

This concludes today's press conference. Thank you to Mr. Liu Liehong, the other three spokespersons and our friends from the media. Goodbye, everyone. 

Translated and edited by Xu Xiaoxuan, Wang Ziteng, Yang Xi, Liu Caiyi, Yan Bin, Lin Liyao, Qin Qi, Xiang Bin, Liao Jiaxin, Zhu Bochen, Wang Qian, Ma Yujia, Wang Wei, Wang Yanfang, Yuan Fang, Liu Sitong, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Sun Shuxian, vice minister of natural resources and administrator of the State Oceanic Administration

Ms. Guo Fang, vice minister of ecology and environment

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 11, 2024

Xing Huina:

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

Today, we are releasing the white paper "Marine Eco-Environmental Protection in China," and holding this press conference to introduce and interpret its main content.

The white paper, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and Xi Jinping Thought on Ecological Civilization, systematically introduces China's policy concepts for creating a marine eco-environment for harmonious coexistence between humans and the ocean. It comprehensively outlines the key measures China has taken in coordinating marine eco-environmental protection, systematic governance of the marine eco-environment, and advancing green and low-carbon maritime development. It also showcases China's extensive international cooperation efforts in marine eco-environmental protection and its contributions to building a maritime community of shared future. The paper calls on all countries to jointly protect the marine eco-environment and promote sustainable development for a cleaner and more beautiful world. 

The white paper consists of a preface, main text and conclusion, totaling around 27,000 Chinese characters. The main text includes seven sections: I. Improving Marine Eco-Environment for Harmonious Coexistence Between Humans and the Ocean; II. Coordinating Marine Eco-Environmental Protection; III. Systematic Governance of the Marine Eco-Environment; IV. Science-Based Conservation and Restoration of Marine Ecosystems; V. Strengthening Supervision and Administration of the Marine Eco-Environment; VI. Advancing China's Green and Low-Carbon Maritime Development; VII. Carrying Out All-Round International Cooperation on Marine Eco-Environmental Protection.

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and the Foreign Languages Press, and is available at Xinhua Bookstore outlets across the country.

To help you better understand the content of the white paper, we have invited Mr. Sun Shuxian, vice minister of natural resources and administrator of the State Oceanic Administration, and Ms. Guo Fang, vice minister of ecology and environment, to introduce relevant information and answer your questions.

First, I will give the floor to Mr. Sun for his introduction.

Sun Shuxian:

Ladies and gentlemen, good morning. It is a pleasure to witness the release of the white paper "Marine Eco-Environmental Protection in China" with you today. First, I would like to thank you for your interest in and support for marine eco-environmental protection.

The white paper presents a full picture of China's ideas, actions and achievements in marine eco-environmental protection. We hope it will help people from all walks of life and the international community obtain a more comprehensive and in-depth understanding of China's marine eco-environmental protection efforts, further strengthening communication and cooperation.

The ocean is a treasure trove of natural resources and a strategic area for high-quality development. Today, global marine security, development and governance face a series of prominent challenges. China has always actively promoted the global marine governance process and is a firm advocate for and active participant in marine eco-environmental protection.

General Secretary Xi Jinping emphasized the need to "care for the ocean as dearly as we treasure our lives." Since the 18th National Congress of the Communist Party of China (CPC), under the guidance of Xi Jinping Thought on Ecological Civilization, China has launched a series of campaigns of fundamental, pioneering and long-term significance, achieving historic transformations and significant progress. These efforts have resulted in a series of landmark accomplishments and have charted a unique path of harmonious coexistence between humans and the ocean, reflecting Chinese characteristics.

First, the concept of marine eco-environmental protection has innovatively evolved while maintaining fundamental principles. We have prioritized eco-environmental conservation, deepened our understanding of marine natural laws and included eco-environmental progress in the overall plan for marine development. We adhere to a coordinated approach that includes both land and sea, river and sea linkage, and systematic governance, transitioning from single-element to holistic strategies, and from "end-of-pipe treatment" to "whole-chain management." We emphasize technology-driven, multi-partner governance, public participation and win-win cooperation, enhancing comprehensive governance capabilities from multiple perspectives. This has produced exemplary cases of building a Beautiful China and harmonious coexistence between humans and the ocean, such as the "Xiamen Approach," vividly demonstrating the implementation of China's eco-civilization philosophy.

Second, China has made progress in protecting its marine eco-environment through continuous exploration. China was the first country to propose and enforce red lines for ecological conservation. It has made efforts to improve the marine protected areas system and implement major marine eco-environmental conservation and restoration projects. By doing this, the country has significantly improved the marine ecosystem in terms of diversity, stability and sustainability. Moreover, China has ensured that its management of sea areas has transitioned from a two-dimensional to a three-dimensional approach. Rapid progress has been made in technologies for developing and harnessing marine renewable power, and China's ability to use marine resources economically and intensively has been improved. Furthermore, China has improved its legal and institutional frameworks. We have used land, sea, air and space in monitoring and supervision to strengthen the country's marine ecosystem early warning and monitoring capabilities, improving our capacity to prevent and mitigate marine disasters. These efforts have built a strong security shield for the marine ecology.

Third, China has reached a consensus with countries worldwide on marine eco-environmental protection. Since 2012, China has submitted over 800 proposals to international organizations, actively engaging in formulating international rules and regulations for environmental protection and resource conservation. The country has signed Belt and Road cooperation agreements with more than 50 countries and international organizations, enhancing synergy with major cooperation initiatives such as the United Nations' 2030 Agenda for Sustainable Development and the U.N.'s Ocean Decade. Moreover, Blue Partnership cooperation has become more dynamic. China has provided extensive foreign assistance and training, contributing insights and strengths to tackle global challenges to the marine eco-environment.

My friends, the blue planet where we live is the shared home of all humanity, and mankind rise and fall together in a community with a shared future. China stands ready to work hand in hand with the international community to lay the foundation for a marine eco-civilization and pursue the green development of our oceans.

That's all I have for now. Thank you.

Xing Huina:

Thank you, Mr. Sun. Now, let's invite Ms. Guo to give us an introduction.

Guo Fang:

Ladies and gentlemen, friends from the media, good morning! It is my great pleasure to be here with you today. On behalf of the Ministry of Ecology and Environment, I would like to express my sincere gratitude to all our friends from various walks of life. Your long-standing concern and support for China's efforts in protecting the marine eco-environment have been truly appreciated.

As Mr. Sun mentioned, General Secretary Xi Jinping has shown the utmost support and placed high hopes on the building of a marine eco-civilization and the protection of the marine eco-environment. Since the 18th CPC National Congress, under the guidance of Xi Jinping Thought on Ecological Civilization, China has made unprecedented transformations in marine eco-environmental protection. Our main efforts have been focused on the following four areas:

We have adopted a systemic approach and deepened the reform of land-sea coordinated institutions and mechanisms. China is working on a protection and governance framework that ranges from mountain tops to the ocean, and the reform of marine management and governance has been steadily advancing. In the 2018 reform of State Council institutions, the responsibilities of marine environmental protection were incorporated into those of the Ministry of Ecology and Environment. Additionally, supervisory agencies were established to monitor the marine eco-environment in three river basins and sea areas. By taking these steps, we have prioritized both ecology and environment and integrated the management of land and marine resources. As a result, a comprehensive governance system featuring land-sea coordination and river-sea connectivity has taken shape. This system facilitates coordination among different departments and improves cooperation among various regions.

We have put people first and made remarkable achievements in the efforts to build beautiful bays. China is committed to pursuing environmental benefits for the public and has designed and implemented the 14th Five-Year Plan for Marine Ecological and Environmental Protection and the Optimized Action Plan for Building Beautiful Bays. Our focus is on key programs, such as building over 110 beautiful bays and intensifying our endeavors to clean up marine waste at 65 bays, promoting the recycling of marine plastic waste.

Today, I have also brought a small item for all my journalist friends. This beautiful scarf is actually made from three recycled plastic bottles, which were collected during a volunteer beach cleanup activity in Nansha district, Guangzhou city. We are working diligently to transform all 283 bays nationwide into beautiful ones by 2035. Our goal is to materialize the amazing view depicted in the picture: clear seawater, clean beaches, desirable habitats for fish and seabirds, and harmony between humans and the sea.

We have made efforts to address key points and problems, resulting in the continuous improvement of the eco-environment in coastal waters. China has prioritized key sea areas located at strategic convergence points along its coast, such as the Bohai Sea, the Yangtze River Estuary-Hangzhou Bay, and the Pearl River Estuary. By adopting targeted governance policies, China has made remarkable achievements in improving eco-environment quality in these regions. Statistics show that in 2023, 85% of the coastal waters had good to excellent water quality, an increase of 13.7 percentage points from 2018. This improvement has been consistent for six consecutive years. Moreover, since 2021, 24 typical marine ecosystems have shed their "unhealthy" status.

We are committed to governing the sea according to the law, continuously strengthening the supervision and enforcement of marine ecological protection. China protects its waters with the strictest systems and the most stringent legal measures. The Marine Environment Protection Law has been amended three times and revised once. We have also formulated and revised seven administrative regulations and over 10 departmental rules, creating a solid legal framework. We always adhere to strict supervision and law enforcement, investigating more than 53,000 sewage outlets to the sea and rectifying over 16,000. We continuously conduct special supervision and law enforcement actions like the "Green Shield" and "Blue Sea" initiatives. We have implemented three rounds of central government environmental protection inspections, identifying and addressing more than 200 prominent marine-related issues.

After persistent efforts, everyone can feel that the seawater has become clearer in recent years, the beaches are cleaner, seabird populations have increased, and the coastal wetlands are more beautiful. The continuous improvement of the marine ecological environment is a vivid portrayal and powerful proof of the historic, pivotal and all-encompassing changes in China's ecological and environmental protection. Next, we will continue to promote the comprehensive management of key marine areas, fully advance the development of beautiful bays, and consistently meet the public's desire to enjoy and connect with the sea.

As the poem says, "True friendship knows no boundaries; even those thousands of miles apart can be close neighbors." With this in mind, I sincerely invite friends from home and abroad to visit China's various coastal regions. Come and experience firsthand the excellent environment, beautiful ecology, and effective governance of China's bays. We are also eager to exchange ideas with other nations, learn from each other, and cooperate pragmatically to jointly promote the development of a maritime community with a shared future and to keep our blue planet perpetually pristine.

That's all I have to share for now. Thank you.

Xing Huina:

Thank you, Mr. Guo, for the introduction. We will now proceed to the Q&A session. Members of the media are welcome to ask questions. Please identify your news organization before asking your questions.

CNR:

We know that China hosts a variety of typical marine ecosystems, including coral reefs, mangroves and seagrass beds. Could you please elaborate on the measures implemented in recent years to protect and restore typical marine ecosystems? Going forward, how do you intend to consolidate the existing protection achievements? Thank you.

Sun Shuxian:

Thank you for your question. Marine ecosystems provide various essential ecological services that support our survival, economic productivity and quality of life. In recent years, the Ministry of Natural Resources has adhered to the principles of respecting, complying with, and protecting nature. We have vigorously protected and restored typical marine ecosystems, striving to enhance their diversity, stability and sustainability. Our main efforts have been focused on the following areas:

Regarding current status surveys, in 2020, we completed nationwide surveys of typical ecosystems such as coral reefs, seagrass beds, and coastal salt marshes. We have essentially grasped the distribution and ecological conditions of various typical ecosystems and identified prominent ecological issues and the main threats and risks they face.

In terms of early warning and monitoring, we conduct regular ecological early warning and monitoring for key areas and issue early warning products. These efforts provide a fundamental basis for marine ecological protection and restoration.

In terms of ecological assessment, we regularly evaluate the conditions of typical ecosystems. Some of you might have noticed that in June this year, we issued the first "China Marine Ecological Early Warning and Monitoring Bulletin." The monitoring results showed that the overall conditions of ecosystems such as coral reefs, seagrass beds, coastal salt marshes, and mangroves are predominantly good to excellent.

Regarding ecosystem protection, we've included most typical marine ecosystems, including mangroves, coral reefs and seagrass beds, within our ecological protection red lines, where strict protection measures are implemented. Additionally, human activities that do not meet management requirements and severely impact the structure and function of these ecosystems are gradually being phased out.

In terms of ecosystem restoration, we have actively mobilized both central and local financial resources to protect and restore degraded and damaged typical marine ecosystems. Our goal is to restore these ecosystems and their service functions.

Going forward, we will take multiple measures to continuously strengthen the protection and restoration of typical ecosystems. First, we will stay attuned to dynamic changes, continuously enhance our surveys and assessments of the status quo of typical marine ecosystems, and gradually improve our systems for continuous observation, monitoring, and early warning. Second, we will strengthen our protection management strategies, strictly enforcing the ecological protection red line system, integrating land and spatial planning with regular check-ups and assessments every five years, promptly identifying and incorporating other typical ecosystem distribution areas, and enhancing oversight and control of marine and island development projects that may impact typical ecosystems. Third, we will implement scientifically based protection and restoration measures. We'll improve our approach through category-based policies, enhance our scientific and technological support capabilities, and strengthen our complete process, including tracking, monitoring, effect evaluation, and post-restoration management, to ensure the effectiveness of our restoration efforts. Additionally, we will actively explore and promote the realization of the value of ecological products, pilot the valuation of ecological products, encourage social capital to participate in the protection and restoration of typical marine ecosystems, and foster a social atmosphere of joint development and shared benefits. Thank you!

China News Service:

The white paper introduces the legal framework of China's marine eco-environmental protection. I would like to ask, what work has China done in this regard? How can the marine eco-environment be protected through the rule of law? Thank you.

Guo Fang:

Thank you for your questions. A sound ecological environment must rely on the rule of law. We often say that we control pollution in a targeted, law-based and science-driven approach, with the legal framework for pollution control being the core concept in China's eco-environmental protection. This means we should rigorously carry out supervision following the laws and regulations, and protect the ocean with the strictest system and the strictest rule of law. I would like to answer your questions from two aspects: legislation and enforcement.

First, in terms of legislation, China has formulated a comprehensive law on marine eco-environmental protection, namely, the Marine Environmental Protection Law. Since 2012, it has been amended three times and revised once. In particular, the Marine Environmental Protection Law was revised last year to 124 articles in nine chapters from 97 articles in 10 chapters, with 27 articles added, while only eight articles were not revised. There have been many institutional innovations and practical measures. For example, land and sea planning is regarded as a principle of marine eco-environmental protection, with detailed provisions focusing on marine garbage management, supervision of sea-entering sewage discharge outlets, and the prevention and control of polluted river water entering the sea, while the scope, intensity, methods and procedures of punishments were expanded. 

The Wetlands Protection Law, the Fisheries Law, and the Coast Guard Law respectively make specific provisions on the protection of coastal wetlands, marine fishery resources as well as marine environmental law enforcement. 

Besides the national level, local governments in coastal areas are also actively making laws. For example, Hainan province introduced regulations for the protection of coral reefs and giant clams, and Xiamen issued regulations on the protection of the Chinese white dolphin population and their habitat. The effects have been obvious: the Chinese white dolphin population has increased from 60 in the early 1990s to nearly 80 now. It is said that citizens in Xiamen's downtown can see the Chinese white dolphin.

Concerning law enforcement, the Ministry of Ecology and Environment, the China Coast Guard and other departments have established a mechanism for supervision and law enforcement to jointly carry out special law enforcement actions such as "Green Shield" and "Emerald Sea" based on routine patrols and law enforcement. From 2020 to 2022, China conducted more than 19,000 inspections on marine engineering projects, drilling platforms, islands and ocean dumping sites, handled over 360 cases of illegal activities involving land reclamation from the sea, ocean dumping and island eco-environmental damage. Severe punishments have been imposed for violations and crimes in key areas of marine eco-environmental protection.

Next, the Ministry of Ecology and Environment will continue to cooperate with legislative agencies in compiling the Ecological Environment Code, improve the legal framework for the marine eco-environment, and protect the marine eco-environment under the rule of law. Thank you.

Nanfang Daily, Nanfang Plus:

In recent years, China has continued to promote the construction of beautiful bays. What progress has been made so far? In this process, how have local governments adapted measures according to local conditions to better realize "bay-specific policies" and "respecting the distinctive beauty of bays"? What are your plans for the future? Thank you.

Guo Fang:

Thank you for your questions. I have just introduced the achievements of building beautiful bays. The building of beautiful bays is a priority in marine eco-environmental protection. Our work is progressing smoothly and has produced clear effects. We have mainly focused on three areas: first, is the top-level design of the "three five-year plans;" second, is the comprehensive governance of "bay-specific policies;" and third, is the leading role of innovation at the grassroots level.

First, the top-level design of the "three five-year plans." As we all know, the goal of environmental protection cannot be achieved overnight and requires long-term efforts. Starting with the 14th Five-Year Plan for Marine Ecological and Environmental Protection, we have adhered to the "three five-year plans" and strived to accomplish the building of 283 beautiful bays across China by 2035. At present, 11 coastal provinces (or autonomous regions or municipalities directly under the central government) have formulated provincial construction plans and implementation plans for 130 bays, drawing up layout plans and implementation systems for comprehensively promoting the construction of beautiful bays from the central to local governments.

Second, we have adopted comprehensive governance with bay-specific policies. Every bay construction project must address common issues such as nearshore pollution control, eco-environmental conservation and restoration, and environmental rectification of shores and beaches. These are topics the media also pays close attention to. However, we're mindful of potential homogenization during construction. To prevent this, we have adopted tailored policies for each bay, fostering unique strengths and characteristics based on natural endowments and local conditions. By the end of 2023, we had completed half of the 1,682 specific tasks set for the 14th Five-Year Plan (2021-2025) period. Nearly two-thirds are now completed, and the rest are in progress. In 2023, 167 out of 283 bays nationwide had over 85% of their seawater areas rated as excellent. Flagship species like Bryde's whales, Chinese white dolphins, and black-faced spoonbills frequently appear in multiple bays. These bay-specific policies have led to diverse beauty. Let me share some impressive examples. Zhangbei Bay in Rizhao, Shandong province, has built a 28-kilometer-long coastal greenway. Meanwhile, Beihai in Guangxi Zhuang autonomous region has restored 3.3 kilometers of beach, creating a beautiful silver landscape stretching for over three miles. You can try to find time to visit these places with your children during the summer vocation.

Third, we strongly encourage examples of innovation at the primary level, particularly in institutional, mechanism, and technological aspects. By selecting outstanding cases of beautiful bay construction, we have formed a series of excellent practices to be replicated in other parts of China. For example, Shenzhen's Dapeng Bay is home to over a dozen active green marine non-profit organizations that conduct coastline protection initiatives spanning tens of kilometers, inspiring the public to become participants and supervisors in beautiful bay construction. Tangshan Bay in Hebei province utilizes shellfish-algae reef ecosystem reconstruction technology, restoring 4,000 mu of seabed into a vibrant underwater landscape with oyster reefs, seagrass beds, and abundant marine life.

The Recommendations on Advancing the Beautiful China Initiative on All Fronts, issued by the Party Central Committee and the State Council at the end of last year, puts forward clear requirements and specific arrangements for building beautiful bays. Moving forward, we will earnestly implement these requirements. We will leverage continuously improved top-level design and increasingly effective primary-level practices to reinforce each other. This approach will drive the high-quality building of beautiful bays more effectively. Thank you!

Shenzhen TV Zhi News:

We understand that coastal areas, due to industrial agglomeration and high resource demands, often face significant pressures related to eco-environmental protection. This has, to some extent, constrained the economic and social development of these areas. Therefore, what efforts have been made in recent years to balance resource development with ecological protection, and to promote the development of the marine economy in coastal regions? Thank you.

Sun Shuxian:

Thank you for your question. The development of the marine economy in coastal areas has been a topic of great concern in recent years. The MNR has adhered to the principle of balancing development and protection, actively supporting high-quality marine development through high-level protection. Our main efforts have been focused on the following aspects:

In terms of optimizing the spatial development and protection pattern of the ocean, we have implemented the marine-related requirements of the Outline of the National Territorial Space Plan (2021-2035) issued by the Party Central Committee and the State Council. We have formulated spatial plans for coastal zones and nearshore waters, drawn red lines for marine eco-conservation, defined marine ecological space and areas for development and utilization, and comprehensively optimized distribution arrangements for key marine utilization activities.

To strengthen the protection of marine resources, we have issued the Notice on Further Improving the Protection of Land and Sea Resources. This notice simplifies and optimizes the requirements and procedures for demonstrating sea area use in relevant projects. We have also implemented strict controls for new land reclamation and island utilization projects.

To promote efficient and intensive use of marine resources, we have steadily advanced a multi-rights system for sea areas, shifting from a two-dimensional to a three-dimensional management approach. We've begun exploring legal ways to grant transfer, mortgage, and lease rights for uninhabited islands, gradually expanding the role of market-based allocation in the marine sector.

We've strengthened green and low-carbon technological innovation to promote the marine industry's transformation. We have intensified technological research and development in areas such as seawater desalination, ocean energy development, marine biological resource utilization, and marine engineering equipment. These efforts are injecting new momentum into and shaping new advantages for the high-quality development of the marine industry.

Currently, China has achieved remarkable progress in marine industry development and marine ecological protection. Just now, Ms. Guo provided a comprehensive overview of the continuous optimization of the eco-environment. In terms of marine economic development, in 2023, China's marine economy GDP reached 9.9097 trillion yuan, increasing by 6% year on year, with a growth rate 0.8 percentage point higher than that of the national GDP. The marine economy is experiencing a strong recovery, improving in terms of both quantity and quality, and has become a new engine for national economic growth. Thank you.

Global Times:

My main interest is the issue of inland sea ecological management, as this is considered a global challenge. The Bohai Sea is China's only inland sea. As such, could you provide an overview of the ecological governance efforts in the Bohai Sea in recent years? What exemplary measures have we taken that could serve as models for other countries and regions worldwide? Thank you.

Guo Fang:

Thank you for your questions, and for your interest in the governance of the Bohai Sea. As you mentioned, inland seas extend deep into the continent and are only connected to the open ocean by straits, often resulting in small sea areas, slow water exchange rates, poor marine environmental capacity and significant human activity. These characteristics make inland seas a challenge for marine environmental governance. There are many international examples, such as the Chesapeake Bay in the United States, the Baltic Sea in Europe and the Seto Inland Sea in Japan, all of which have through years of management practices. The Bohai Sea is China's only semi-enclosed inland sea and has experienced ecological difficulties such as nearshore water quality deterioration, ecological degradation, resource depletion and frequent disasters. China attaches great importance to the governance of the Bohai Sea and has been continuously working on it. Particularly since 2018, we have carried out two rounds of key comprehensive governance campaigns, achieving significant results. In 2023, the proportion of nearshore areas in the Bohai Sea with good to excellent water quality reached 83.5%, an increase of 18.1 percentage points compared to 2018, exceeding our average growth rate.

In the practice of governing the Bohai Sea, China has explored and developed a comprehensive inland sea ecological governance model that integrates land and sea management, with three key elements.

First is coordinated land-sea management. The pollution in the Bohai Sea is mainly due to an excess of nitrogen and phosphorus nutrients. While the problem seems to be in the sea, its roots are on land. In recent years, improvements to the Bohai Sea's water quality have been achieved by controlling the two "pathways" of seagoing rivers and sea-entering discharge outlets. We have implemented a comprehensive approach to control total nitrogen in seagoing rivers and conducted meticulous work on inspecting, measuring, tracing and managing sea-entering sewage discharge outlets. We have established a mechanism to control land-sea pollution encompassing "river basin-estuary-nearshore sea areas." I can report to you today that the water quality of the Bohai Sea continues to improve.

The second key is pollution reduction and capacity expansion. Pollution reduction is relatively straightforward; it involves reducing the discharge of pollutants into the sea through measures such as cutting total nitrogen emissions from seagoing rivers and rectifying sea-entering sewage discharge outlets. Capacity expansion, as Mr. Sun mentioned, involves enhancing the marine environment's capacity through the protection and restoration of coastal wetlands and ecological shorelines. For example, the restoration of coastal salt marshes and seagrass beds in the Yellow River and Luan River estuaries has effectively enhanced the region's capacity to accommodate and degrade pollutants. By simultaneously addressing pollution control and ecological restoration, we have effectively promoted the improvement of the Bohai Sea's marine ecological environment.

The third key is regional coordination. Managing the Bohai Sea involves multiple departments and regions. In the governance process, China's institutional advantages have been fully demonstrated, with all resources and forces being mobilized effectively. We have established a coordination and collaboration mechanism with clear responsibilities and divisions of labor, promoting joint efforts. We have improved the collaborative governance and consultation notification mechanisms for nearshore waters and strengthened the joint prevention and control mechanisms for the upstream and downstream of seagoing rivers, ensuring the implementation of various governance tasks. The results of the Bohai Sea governance are the outcome of collaborative efforts.

These three key elements of the comprehensive governance of the Bohai Sea have become a new model for global inland sea ecological governance, reflecting China's approach and wisdom. We look forward to strengthening technical cooperation and exchanges in this field with relevant countries. Moving forward, we will continue to maintain our efforts in the governance of the Bohai Sea to promote continuing improvements to its ecological environment. Thank you.

CCTV:

According to the white paper, China was the first country in the world to propose and enforce red lines for ecological conservation. Can you share how the red lines for marine eco-environmental conservation were drawn? What role do they play? What are the considerations for safeguarding these red lines? Thank you.

Sun Shuxian:

Thank you for your questions. Red lines for marine eco-environmental conservation have attracted wide concerns from the public. Since 2019, in combination with the formulation of a territorial spatial plan, the Ministry of Natural Resources has worked with the Ministry of Ecology and Environment, the National Forestry and Grassland Administration and other departments to establish the red lines for eco-environmental conservation. During this process, we have adhered to the principles of achieving full coverage of areas that are eligible, following a fact-based approach and have prioritized the inclusion of areas with critical ecological functions, such as biodiversity conservation and coastal protection, as well as the most ecologically fragile areas, such as coastal erosion under the ecological conservation red lines, on the basis of the marine eco-environmental importance assessment. At the same time, red lines have also covered undeveloped and uninhabited sea islands, habitats of rare and endangered marine species and migratory birds as well as spawning sites of important fishery resources, thus playing a key role in protecting the habitats and migration of marine life and birds.

To date, China has drawn red lines covering a total area of 150,000 sq km, including mangrove forests, coral reefs, seagrass beds and other typical marine ecosystems, forming an important blue eco-environmental shield.

To fortify the regulation of red lines for marine eco-environmental conservation, we have also worked with relevant departments to issue A Notice on Strengthening Management of Red Lines for Eco-Environmental Conservation (Trial), regulating the specific types and management requirements for allowing limited human activities and the specific circumstances and approval procedures for the occupation by major national projects, as well as clarifying the regulatory responsibilities of the departments overseeing red lines for eco-environmental conservation. Based on that, in combination with local conditions and considering both principles and flexibility, provinces and cities have introduced more operational regulation requirements for ecological conservation red lines with more local features.

Next, we will strengthen the coordination with local governments and carry out marine eco-environmental conservation performance evaluations on a regular basis. We will intensify the publicity to enhance awareness from all sectors of society to strictly safeguard red lines for marine eco-environmental conservation and gather social forces to jointly safeguard red lines for marine eco-environmental conservation. Thank you!

CRNTT:

The marine issue concerns the whole world. What progress has China made in engaging in global marine governance? In addition, what are the considerations with regard to advancing international cooperation and exchanges in marine eco-environmental conservation as well as providing Chinese solutions for global marine governance? Thank you.

Sun Shuxian:

Indeed, the current marine-related issues concern the whole world, drawing attention from not only coastal states but also inland countries. China has been attaching great importance to international exchanges and cooperation on marine eco-environmental protection. I would like to briefly talk about the gains of cooperation in the following three aspects.

First, we have continued to deepen cooperation in key areas with Belt and Road Initiative partner countries as well as actively expanding global partnerships. We have issued a series of cooperation documents such as The Vision for Maritime Cooperation under the Belt and Road Initiative, The Principles for Blue Partnership, and The Belt and Road Blue Cooperation Initiative. China has signed maritime cooperation agreements with over 50 countries and international organizations, laying a solid foundation for practical cooperation.

Second, we have continued to advance the development of cooperation platforms and launched more joint projects. We have established joint marine research centers, laboratories and other cooperation platforms with nine countries, such as Indonesia and Thailand. Marine cooperation mechanisms have been built with EU, African, Southeast Asian and island countries. We have provided technical support and training programs on capacity building for relevant coastal states and island countries in the areas of marine scientific research, marine disaster prevention and mitigation, marine eco-environmental protection and plan formulation concerning exploitation and utilization of marine resources. We have also launched a series of concrete and practical joint projects.

Third, we have taken an active part in the global governance of the marine environment. We have participated and played a constructive role in the whole process of the negotiations for the Biodiversity Beyond National Jurisdiction (BBNJ) agreement. We have responded positively to the U.N. Ocean Decade initiative and shared our practices and experiences in marine research, environmental protection, and disaster prevention and mitigation. We have held a series of international exchange activities including the World Coastal Forum and the World Ocean Week in Xiamen, providing experiences and examples for protecting global marine ecology and environment. 

Going forward, we will take multiple measures to further enhance international cooperation and exchanges for marine eco-environmental protection. First, we will continue to expand our "blue" circle of friends. We will advance cooperation in areas including coordinated maritime management, marine research, marine observation and disaster prevention and mitigation, eco-environmental protection, and capacity building. Second, we will improve the development of cooperation platforms and mechanisms. We will implement the Ocean Decade Action Plan of China, create well-known brands for international cooperation such as the World Coastal Forum, and create more public products and services for the international community. We will actively participate in the global governance of the marine environment, carry out in-depth cooperation with the U.N. and its specialized agencies as well as regional organizations, conduct multilateral and bilateral consultation concerning important agendas in marine ecology, contribute Chinese wisdom and solutions, and display the image of a major responsible country with concrete actions. Thank you.

Beijing Youth Daily:

Just now, Mr. Guo introduced some of the changes to the Marine Environment Protection Law following its latest revisions. We also noticed that in the latest version, the law has included a series of new regulations on the protection of marine biodiversity. What is the current situation regarding marine biodiversity? And what work will be done going forward to restore biodiversity? Thank you. 

Guo Fang:

Thank you for your questions. The world is paying more and more attention to the topic of biodiversity you mentioned. As a Chinese saying goes, "All beings flourish when they live in harmony and receive nourishment from Nature." Biodiversity gives the Earth its vigor and vitality and is the root and lifeline for all life on Earth. The ocean is the largest ecosystem on Earth and a treasure trove rich in biodiversity. By protecting marine biodiversity, we are extending the oldest and most beautiful story of life. 

China is a major maritime country. We have recorded over 28,000 species of marine life, accounting for 11% of the marine life known in the world. It is one of the countries with the richest marine biodiversity in the world. China attaches great importance to the protection of marine biodiversity and has been advancing protection and restoration as well as regulations and governance. The newly revised Marine Environment Protection Law has also given priority to protecting marine biodiversity and required improvements to the systems of investigation, monitoring, assessment and protection, as well as the protection and restoration of important marine ecological corridors.

According to the 2023 communique on China's marine ecology and environment, the condition of 24 typical marine ecosystems under monitoring has generally improved. Since the beginning of 2021, all "unhealthy" areas have been eliminated, with marine biodiversity steadily improving. With the help of the media, there are more and more reports and pictures concerning harmonious coexistence between marine life and humanity. For example, the Chinese white dolphins in the Pearl River Estuary and Sanniang Bay and the Bryde's whales in Shenzhen Bay and Weizhou Island, have become local internet celebrities and city representatives.

In December 2022, the 15th Meeting of the Conference of the Parties to the U.N. Convention on Biological Diversity (COP15) established the Kunming-Montreal Global Biodiversity Framework, which was a landmark event. Based on that framework and with the approval of the State Council, the Ministry of Ecology and Environment has worked with relevant departments to formulate and issue China's Biodiversity Conservation Strategy and Action Plan (2023-2030), which takes the ocean as an important area and a key objective and will focus on strengthening the rehabilitation and restoration of the marine ecosystem including estuaries, bays, mangroves, coral reefs and seagrass beds. Just now, Mr. Sun has also made a detailed introduction in this regard. 

Next, the Ministry of Ecology and Environment and other relevant departments will implement the requirements of the Kunming-Montreal Global Biodiversity Framework, carry out China's Biodiversity Conservation Strategy and Action Plan, guide and urge coastal areas, in combination with the building of beautiful bays, to systematically launch refined investigations, focus on carrying out ecological protection, restoration and rehabilitation, and continue to strengthen investigation and monitoring as well as supervision and management, taking multiple measures to protect marine biodiversity. Thank you.

Xing Huina:

Please continue with your questions. There are two reporters with their hands raised.

China Daily:

We have noticed that the Ministry of Natural Resources has guided coastal areas to launch a series of major projects for marine eco-environmental protection and restoration. Could you share some more details on that? And what measures have been taken to preserve and restore the eco-environment? Thank you.

Sun Shuxian:

Thank you for your interest. Since the launch of the 13th Five-Year Plan, we have applied both natural rehabilitation and artificial restoration methods, and organized and implemented a series of major projects, with 175 projects having been implemented that have now delivered substantial results. I would like to answer your questions in combination with several specific examples.

One is the problems of "hard seawalls" destroying the ecological functions of coastlines. We have undertaken ecological renovation of seawalls, leveraging ecosystems' natural disaster mitigation capabilities to enhance the resilience of coastal zones. Another example is the problem of degradation of coastal wetlands caused by artificial structures and invasion of alien species. We have restored the ecological functions of these wetlands by demolishing artificial structures and promptly replanting mangroves, salt marsh vegetation and seagrass after removing invasive species. Our ecological restoration measures also include rehabilitating mangrove forests, coral reefs and seagrass beds, as well as protecting and rescuing rare and endangered species. We've implemented engineering measures such as renovating seawall openings, dredging, and managing bays. Generally, we have taken category-based, region-specific measures in accordance with local conditions and timing.

At present, marine eco-environment protection and restoration projects have yielded remarkable social, ecological, and economic benefits. These efforts have effectively reduced regional ecological degradation, significantly improved marine ecosystem quality, and strengthened ecosystem connectivity, stability, and integrity. I'd like to share two examples with you. The first is Xiamen, Fujian. Since 1988, starting with the comprehensive management of Yundang Lake, Xiamen has gradually implemented comprehensive management projects in the western sea area, Wuyuan Bay, Xinglin Bay, the eastern coastal area, and Maluan Bay. Through coordinated land and marine development and river-sea linkage, Xiamen has achieved systematic governance. This presents a vivid picture of the "Xiamen Approach," which features harmonious coexistence between humans and nature. Recently, many media outlets have visited Xiamen, and I believe they were all impressed by what they saw.

Additionally, Beihai in the Guangxi Zhuang autonomous region has implemented the "Blue Bay" improvement project. The initiative has basically curbed the deterioration of sea area environmental quality and coastal wetland degradation. It has also established connectivity along the shorelines of Yintan Beach and steadily increased the area of mangrove forests, yielding significant ecological, economic, and social benefits.  

According to statistics, since the launch of the 13th Five-Year Plan, we have improved and restored 1,680 kilometers of coastlines and over 50,000 hectares of coastal wetlands nationwide. These efforts have improved the structure and function of typical marine ecosystems, effectively restoring habitats for rare and endangered species such as Chinese white dolphins and horseshoe crabs (Tachypleus tridentatus). Additionally, we have mitigated disruptions to the East Asian-Australasian Flyway, a route for migratory birds. Furthermore, our initiatives have also enhanced the sense of fulfillment and happiness of people living near and interacting with the sea, and built a safety barrier for the high-quality development of coastal regions. Thank you.

Hong Kong Bauhinia Magazine:

The whitepaper mentions that the Blue Circle project, a new model of marine plastic waste management initiated by Zhejiang province, won the United Nations' 2023 Champion of the Earth award. How has the promotion and application of this model for marine plastic waste reduction progressed so far? What insights and solutions has China contributed to the protection and governance of the global marine eco-environment? Thank you.

Guo Fang:

Thank you for your recognition of the Blue Circle project. The control and treatment of marine plastic pollution is indeed a global challenge and a public concern. Taizhou, Zhejiang province, has explored and developed a new management model for marine plastic waste. By leveraging big data and blockchain technology, this model has made it possible to simultaneously achieve marine plastic pollution control, high-value recycling and utilization of resources, and prosperity for all fishermen while realizing ecological, social, and economic value. As a result, it stood out among 2,500 applications globally and won the United Nations' 2023 Champion of the Earth award, which is no small feat.

At present, the promotion and application of the Blue Circle are advancing at a fast pace. As far as we know, this model has been extended not only throughout Zhejiang province but also to the Yangtze River Delta region and coastal regions in southeast China. Blue Circle demonstration centers have been set up in Fujian, Shandong and Hainan. This model has gained global recognition and has been promoted and applied in Singapore, France, Germany, Korea, Japan, Thailand and Switzerland. The recycling system now includes not only the original, relatively single category of waste plastic bottles but also fishing nets and gear used for marine aquaculture.

With advanced technical solutions, an innovative operation mode, and high-quality marine recycled plastic products, the Blue Circle model has gained favor with many multinational corporations, industry associations, financial institutions and even overseas government agencies, attracting an increasingly diverse range of participants. Building on this success, the Ministry of Ecology and Environment has collaborated with multiple departments to issue the Action Plan for the Cleanup of Marine Litter in Coastal Cities. This plan aims to further advance the recycling and collection of marine litter, providing more materials for projects such as the Blue Circle. We believe that it will play a positive role.

Since the 18th CPC National Congress, coastal areas have pioneered innovative practices in marine eco-environment protection and governance. There are outstanding examples, including the Blue Circle you mentioned, the Xiamen Approach, which Mr. Sun presented in detail, and the governance of the Bohai Sea, which I just introduced. We have also achieved landmark accomplishments with recognition, influence, and reputation through the evaluation of excellent cases in the Beautiful Bay initiative. At present, the evaluation of the third batch of cases is underway. Through these efforts, we aim to provide new ideas and paradigms for global maritime governance.

These experiences and explorations belong both to China and to the rest of the world. China is willing to work with all countries to open a new chapter in building a maritime community of shared future, jointly preserve the Blue Homeland on which we rely for our subsistence, and leave a blue sky and clean ocean for future generations. Thank you.

Xing Huina:

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

Translated and edited by Wang Yiming, Wang Qian, Gong Yingchun, Ma Yujia, Zhang Rui, Zhou Jing, Zhang Tingting, Wang Ziteng, Zhang Junmian, Liu Caiyi, Xu Kailin, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Li Xiaopeng, minister of transport

Mr. Fei Dongbin, administrator of the National Railway Administration

Mr. Song Zhiyong, administrator of the Civil Aviation Administration of China

Mr. Zhao Chongjiu, director general of the State Post Bureau 

Chairperson:

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

Date:

July 10, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Li Xiaopeng, minister of transport, to brief you on relevant developments and answer your questions. Also present today are Mr. Zhao Chongjiu, director general of the State Post Bureau (SPB); Mr. Song Zhiyong, administrator of the Civil Aviation Administration of China (CAAC); and Mr. Fei Dongbin, administrator of the National Railway Administration.

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

Li Xiaopeng:

Ladies and gentlemen, friends from the media, good morning. I'm very pleased to meet you all here. I would like to express my gratitude for your long-term interest in, support, and help for, as well as supervision of China's transportation undertakings.

This year marks the 75th anniversary of the founding of the People's Republic of China. Over the past 75 years, China's transport sector has continued to grow. As General Secretary Xi Jinping pointed out, since the founding of New China, generation after generation of the Chinese people have worked in the spirit of opening roads through mountains and building bridges over rivers, and turned China into a country with vast transport infrastructure. Today, we are redoubling our efforts to build a country with great transport strength. Transport has become a frontier in China's modernization drive. This year is also the fifth year since the CPC Central Committee and the State Council issued the outline on building China's strength in transportation. In the past five years, we have carefully studied and implemented General Secretary Xi Jinping's major expositions on building China's strength in the transport sector, and continued to promote the high-quality development of transportation.

Over the past five years, our transportation infrastructure has been continuously improved. The total length of the comprehensive three-dimensional transport network exceeds 6 million kilometers, and the comprehensive east-west and north-south transport networks have become more complete.

Over the past five years, our passenger and freight transportation have continued to develop. Passenger travel has become more comfortable and convenient, and freight transport has become smoother and more efficient, moving toward the beautiful vision of enjoyable travel for people and smooth transportation of goods.

Over the past five years, our technological innovation has been continuously strengthened. Construction technology has leapt forward as a whole. Breakthroughs have been achieved in equipment research and development and the pace of smart transportation has accelerated. New technologies, new business forms and new models such as autonomous driving have flourished, and technological innovations in transportation have effectively promoted industrial upgrading.

Over the past five years, our green and low-carbon development has continued to improve. The transportation structure has been further optimized, and the efficient and intensive use of resources has been significantly improved. The green and low-carbon transformation of transportation has contributed to the construction of a Beautiful China.

Over the past five years, the big department system reform has continued to deepen. The comprehensive transportation governance capacity has been continuously improved, and the legal system, policy system and standards system have been further upgraded.

Over the past five years, our international cooperation has been continuously strengthened. We have continuously deepened bilateral and multilateral cooperation, promoted high-quality Belt and Road Initiative (BRI) cooperation, and continuously improved connectivity. We have signed more than 160 land, sea, air and mail-related agreements with more than 90 countries and regions.

Overall, in the five years since the issuance of the outline on building China's strength in transportation, our comprehensive strength in the transport sector has increased significantly, taking a big step toward the goals of satisfying people's needs, ensuring guarantees and being at the forefront of the world.

Next, we will comprehensively implement the guiding principles of the 20th CPC National Congress, the second plenary session of the 20th CPC Central Committee, and the upcoming third plenary session of the 20th CPC Central Committee, fully and faithfully apply the new development philosophy on all fronts, contribute to the creation of a new development pattern, and pursue progress while ensuring stability. We will strengthen workplace safety, do a good job in flood control, drought relief, and emergency management and rescue, deepen the reform of the comprehensive transportation system, promote cost reduction, quality improvement, and effectiveness of transportation and logistics, promote the large-scale renewal of equipment, expand effective investment, strengthen global transportation cooperation, serve high-quality BRI cooperation, work to accelerate the boosting of China's strength in transportation, strive to be a frontier of China's modernization drive, and provide more solid and powerful transportation service guarantees in building a great modern socialist country and advancing national rejuvenation.

That is all for my introduction. Next, my colleagues and I are willing to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Li, for your introduction. We will now move to the Q&A session. Please identify the media outlet you represent before asking your question.

Economic Daily:

The fourth meeting of the Central Commission for Financial and Economic Affairs (CCFEA) called for the optimization of major transportation routes and corridors to unclog bottlenecks. In accelerating the boosting of China's strength in transportation, what progress has been made in this regard? What are your considerations going forward? Thank you.

Li Xiaopeng:

Thank you for your interest in the construction of major transportation routes and corridors. At present, the total length of China's comprehensive three-dimensional transport network has exceeded 6 million kilometers, as I mentioned. As part of this, the main framework of "six axes, seven corridors and eight trunk lines " has basically taken shape. The "six axes, seven corridors and eight trunk lines" are the main framework of the comprehensive three-dimensional transport network stated in the guidelines on developing a comprehensive transport network. The "six axes" refer to the main corridors between the four economic development poles of the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and the Chengdu-Chongqing Economic Circle, which are also the main transportation corridors in China. The "seven corridors" mainly refer to seven transport routes such as the western land-sea transport corridor. The "eight trunk lines" refer to eight routes such as the border passage. The main framework of "six axes, seven corridors and eight trunk lines" covers more than 80% of China's counties and serves about 90% of China's economy and population.

From a sectoral perspective, by the end of last year, the country's in-service railway network reached a total length of 159,000 kilometers, with more than 45,000 kilometers of high-speed railways. The nation's highway system extended to 5.4368 million kilometers, including 183,600 kilometers of expressways. Inland navigable waterways stretched for 128,200 kilometers, with 15,400 kilometers classified as Class III and above. The number of quay berths for production use amounted to 22,023, of which 2,878 were berths of 10,000-ton-class or above. In terms of civil aviation, there were 259 transport airports, of which 38 had an annual passenger throughput of 10 million or more, and 63 had a cargo and mail throughput of 10,000 tons or more.

In general, we have made remarkable progress in infrastructure development, especially in the construction of integrated, multidimensional transportation networks, particularly the main framework and trunk roads.

Though having achieved significant progress, there are still areas that require improvement. For example, there are weaknesses in the development of normal-speed railways. The capacity of inter-regional expressways as transport channels needs to be improved. Deficiencies exist in the construction of inland waterways and the connectivity of water transport systems. Moreover, comprehensive hubs need to gain greater influences. 

In the next step, we will further accelerate the construction of the main framework consisting of six axes, seven corridors, and eight channels and build demonstration corridors. We will also further complement and strengthen the national comprehensive freight hub chain by advancing a series of major construction projects, including the railway freight network project, the national highway connectivity improvement project, and the inland waterway transport system connectivity project. In summary, we will expedite the elimination of bottlenecks to make new contributions to the smooth flow of the national economy. Thank you!

Jinan Times APP:

As civil aviation passengers, we are very concerned about flight punctuality. Could you please share what specific measures the civil aviation industry has taken to improve operational efficiency and ensure flight punctuality? Thank you.

Song Zhiyong:

Thank you for your question. Flight punctuality is a topic of great concern to passengers and a task we attach great importance to. Flight punctuality affects passengers' travel experience and reflects the overall efficiency and smoothness of civil aviation transportation organizations. It is an important indicator of high-quality development in civil aviation. The key to improving flight punctuality lies in enhancing the operational efficiency of civil aviation. In recent years, we have taken multiple measures and comprehensive policies to improve operational efficiency, including the following:

First, we have optimized airspace structures and increased airspace capacity. With the continuous release of dividends from national air traffic management reforms, the supply of airspace resources has continued to improve. By establishing major air corridors and optimizing airspace structures, we have increased flight handling capacity in high-traffic airspace, effectively alleviating the pressure caused by rapid flight growth. For example, in 2022, the Beijing-Guangzhou air corridor was opened. This major north-south air traffic artery, connecting China's Beijing-Tianjin-Hebei region and the Guangdong-Hong Kong-Macao Greater Bay Area, was expanded from a single pair of routes (one for each direction) to a dual pair of routes (two for each direction), increasing airspace capacity by nearly 40%. There are plans to open 10 such air corridors, with seven already completed and operational. The eighth, the Shanghai-Kunming air corridor, will be opened in September this year, providing airspace support for efficient flight operations. This corridor primarily aims to ease the air traffic jam along the east-west route linking Shanghai and Kunming.

Second, we have improved operational standards and enhanced the level of coordinated transportation. Airlines, airports, and the air traffic management authority are the three main entities in civil aviation operations. We have formulated targeted policies and measures on flight organization of airlines, ground support at airports, air traffic flow management, and evaluation methods for airport gate docking rates. To optimize operational standards, we raised specific requirements for reducing the minimum interval between aircraft operations, shortening ground taxing time, reducing runway occupancy time, and increasing the rate of aircraft docking near terminals. This year, we also issued measures on civil aviation collaborative operation management, establishing a three-tier collaborative system for civil aviation operations at national, regional and airport levels that integrates negotiated decision-making, joint implementation, and dynamic management, to continuously improve the efficiency of matching route capacity with flight traffic.

Third, we have promoted the application of new technologies to enhance operational efficiency. Civil aviation is a field where large numbers of new technologies emerge. In recent years, we have optimized and improved our operational methods by embracing new technologies. This has allowed us to continuously enhance safety and operational efficiency. For example, widely used Category II and III instrument landing systems, performance-based navigation, and in-flight head-up display s can enable aircraft to safely take off and land in low visibility conditions, significantly reducing weather-related disruptions. In the next step, during the construction of smart civil aviation, we will further enhance operational efficiency by promoting new technologies and models such as proximity landing and takeoff, the Point Merge System, and trajectory based operations.

Through these efforts, civil aviation has maintained a flight punctuality rate of above 80% for six consecutive years. In the first half of this year, despite a 13.4% year-on-year increase in flight volume, the flight punctuality rate reached 86.37%. We're currently in the thunderstorm season, which is the most stressful and challenging period of the year for ensuring reliable flight operations. Nevertheless, we have made preparations to maintain safe operations while minimizing weather-related disruptions. Our goal is to ensure smooth travel for all passengers. We also hope that everyone can provide more understanding and support for our work in civil aviation. Thank you.

CCTV:

We're aware that the large-scale renewal of transportation equipment is an important task for the transport authorities this year. Could you please tell us what deployments and plans the MOT has in this regard? Thank you.

Li Xiaopeng:

Thank you to the reporter from CCTV for your question. The large-scale renewal of transportation equipment is one of our key priorities this year. The promotion of a new round of consumer goods trade-ins and large-scale equipment upgrades is a significant initiative put forth by the CPC Central Committee and the State Council, with a focus on China's overall high-quality development. The large-scale renewal of transportation equipment plays a crucial role in achieving high-quality development. The effort will help stimulate investment, improve infrastructure and drive industrial upgrading. Additionally, it contributes to energy saving and carbon reduction goals while is also helping to lower logistics costs. Overall, it delivers both immediate and long-term benefits.

For the transportation industry, the scale of equipment is substantial. As of the end of last year, China possessed more than 20,000 railway locomotives, over 12 million operational vehicles, approximately 120,000 water transport vessels, and nearly 700,000 public and electric buses. Among these, a significant portion of the equipment needs updating, representing a considerable scale of renewal.

We are fully implementing the decisions and plans of the CPC Central Committee and the State Council. In collaboration with the National Development and Reform Commission, the Ministry of Finance, and other relevant departments, we have formulated an action plan. Moving forward, we plan to carry out actions in seven areas: first, accelerating the elimination and renewal of old diesel commercial vehicles; second, scrapping and renewing old commercial ships; third, replacing urban buses with electric ones; fourth, eliminating and renewing old locomotives; fifth, replacing old postal and courier equipment; sixth, upgrading and renovating logistics facilities and equipment; seventh, improving standards. These seven areas cover all fields and departments of transportation. We will strengthen leadership, coordinate cooperation, improve policies, and accelerate implementation. Thank you.

Hong Kong Bauhinia Magazine:

Recently, the Guangzhou-Foshan South Ring and the Foshan-Dongguan intercity railways officially opened, connecting with the Dongguan-Huizhou and Foshan-Zhaoqing intercity railways. Additionally, the Shenzhen-Zhongshan cross-sea passage was also put into operation. The "one-hour commuting circle" in the Guangdong-Hong Kong-Macao Greater Bay Area is rapidly taking shape. Could you please tell us what work the National Railway Administration has done to promote the "four-network integration of rail transit" and support development strategies for regions? What specific measures are being taken? Thank you.

Fei Dongbin:

Thank you for the question. The concept of integration of "the four networks" refers to the integration of trunk, intercity, suburban, and urban railways. It primarily focuses on the integration and connectivity of urban subway systems with intercity and suburban railways. As national-level strategies for regions are implemented, the demand for the integration of "the four networks" has increased. The CPC Central Committee and the State Council have made specific deployments in strategic plans such as the Outline for Building China's Strength in Transport and the Outline for National Comprehensive Transport Network. The main challenge in achieving this integration is the lack of unified systems, standards, and management practices between subways and railways. To address these issues, we are coordinating with relevant departments and provinces. We've selected the Guangdong-Hong Kong-Macao Greater Bay Area as a pilot region to vigorously promote this integration effort. Our aim is to create a rail transit integration development model with Chinese characteristics.

Since the beginning of this year, we have supported and guided the opening of the Guangzhou-Foshan South Ring and the Foshan-Dongguan intercity railways, achieving the connection of four intercity railways. These new lines have integrated with the existing Foshan-Zhaoqing and Dongguan-Huizhou intercity railways, enabling operations with a similar function to buses across the network. At the same time, we've established a special work team in collaboration with relevant departments of Guangdong province, related enterprises and public institutions, and industry associations. We have jointly formulated an implementation plan with Guangdong province to advance the integration of "the four networks" in the Guangdong-Hong Kong-Macao Greater Bay Area. We are currently accelerating the implementation of this plan and, on this basis, developing industry standards with Chinese characteristics to guide "four-network integration" initiatives across the country.

Next, building on the pilot project in the Guangdong-Hong Kong-Macao Greater Bay Area, we will coordinate the promotion of "four-network integration" on a larger scale, vigorously advancing regional integrated development to better serve the implementation of major national strategies. We will focus on connecting facilities, ensuring ticketing system interoperability, establishing mutual trust in security checks, sharing information, and coordinating management.

In terms of facility connectivity, we will concentrate on the interconnectivity needs of multiple operating entities and multi-level rail transit. We'll draw up technical standards for the connectivity of infrastructure, locomotives, passenger transport vehicles, traction power supply, and communication signals while also researching to build interconnectivity access rules.

In terms of ticketing system interoperability, we will establish relevant standards for system interoperability and payment compatibility. We'll develop an implementation plan for ticketing system interoperability projects and actively promote a "one-time ticket purchase, one-time payment" service model.

In terms of mutual trust in security checks, we will promote the coordination and mutual recognition of railway and subway security check standards. We'll also improve transfer conditions, upgrade and strengthen security check facilities and equipment, and further streamline security check processes.

Regarding information sharing, we will explore mechanisms and channels for open data sharing. We'll establish standards for data collection and data security management, as well as promote the open sharing of various types of information.

In terms of coordinated management, we aim to develop and refine relevant institutional measures. This includes improving licensing for railway transport infrastructure, vehicles, and driver qualifications. We'll also promote management interoperability between railways and subways in areas such as equipment utilization, operational organization, and personnel management.

Thank you.

China Transport News:

We all know that convenient and efficient postal and express services have become an indispensable part of people's lives. What measures have relevant departments taken to ensure smooth delivery services while solving the "last-kilometer" problem? How will you promote the high-quality development of the postal and express delivery industry in the future? Thank you.

Zhao Chongjiu:

Thank you for your questions. The postal and express delivery industry has become an important sector closely related to China's economic and social development and people's lives. It has developed rapidly in recent years. We know that in 2023, China's express delivery volume exceeded 132 billion parcels, and in the first half of this year, 80 billion parcels have been delivered, a 23% increase compared to the same period last year, continuing to show a trend of rapid growth.

The postal and express industry is becoming increasingly important in economic activities. This industry involves door-to-door logistics services, for which both trunk line transportation and terminal delivery are crucial. As you mentioned, solving the "last-kilometer" problem is a very important part of our work. Over the years, we have made a lot of efforts in this regard and achieved a series of very good results. Here I will briefly introduce the main features of our work.

First, an expanding network has provided more convenient services. The postal and express sector has actively developed a modern delivery service network system of "hubs + channels + networks." At the terminal end, various service methods such as home delivery, smart lockers and courier stations have been developed. This variety in terminal services has enriched the supply of courier services and better met the public's diverse needs. People's demands for courier services are becoming higher and more diverse, and the industry is actively exploring various methods in terminal services to better meet these needs.

Second, industrial integration has provided stronger support for the real economy. The express delivery industry supports modern commercial and trade circulation. The smooth flow of parcels has greatly boosted the circulation of goods and the development of the retail industry, promoting the rapid growth of sectors such as e-commerce livestreaming and cross-border e-commerce. We have also actively supported modern agriculture by implementing the "courier station in every village" project, building over 1,200 county-level public delivery service centers and more than 300,000 village-level integrated delivery logistics service stations. The courier network has become an important channel for transporting agricultural products from villages to cities and for transporting consumer goods from cities to villages. We have also supported advanced manufacturing by integrating courier services into production lines, directly connecting production, supply and sales, and injecting new vitality into the development of the real economy.

Third, stronger growth drivers have laid a more solid foundation for development. We have continued to spur industrial innovation through sci-tech innovations. Advanced technologies such as intelligent sorting and security screening systems have been widely adopted, and the express delivery industry has played an increasingly prominent leading role in the logistics sector. We have actively leveraged the advantages of the system of "larger government departments", fully utilizing multi-modal transport to achieve door-to-door, one-bill and one-ticket services. In addition, experiments in high-speed rail express delivery have proven useful, and air-express delivery capacity has continued to increase. We have also actively explored low-altitude logistics scenarios such as drone delivery. Unmanned vehicles, drones and unmanned warehouses have been widely used. Scientific and technological developments have continuously promoted the restructuring of logistics organization, driving industry progress.

Fourth, we have improved the quality of our work to provide more effective services for the people. We have focused on solving pressing difficulties and problems that concern the people most in the postal and express sector, constantly taking special rectification measures. Express services catering to cold chains have developed rapidly. We have also introduced special measures to end unjustified charges for courier services in rural areas, continuously improved the handling of complaints, and actively carried out the "Nuanfeng Campaign " to care for and support couriers. As a result, the sense of gain and happiness of people using postal services has significantly increased.

In the first half of 2024, the public satisfaction score for courier services reached over 83 points, increasing by 2 points compared to the same period last year, indicating greater public satisfaction.

Next, focusing on promoting high-quality development of the industry, we will continue to empower the industry through digitalization and the application of smart technologies, and foster and develop new quality productive forces in line with local conditions. We will apply digital and smart technologies to every step from collecting, transferring and transporting to delivering parcels, effectively boosting total factor productivity. We will strengthen the construction of the delivery service network, optimize the layout of delivery hubs in line with city cluster development, continuously advance the construction of a rural delivery logistics system, and improve the international delivery service network to enhance internal and external connectivity. We will continue to deepen industry collaboration, promote the integration of service chains with advanced manufacturing, and better serve economic development. We will continuously strengthen business entities, and actively create a sound environment in which enterprises under all forms of ownership can compete and grow on a level playing field. Thank you.

Nanfang Daily, Nanfang Plus:

With the low-altitude economy rapidly growing and low-altitude flights becoming increasingly common, how can the CAAC fulfill its industry management responsibilities and promote the development of this sector? Thank you.

Song Zhiyong:

Thanks for your question. China's low-altitude economy, based on traditional general aviation and the emerging unmanned aerial vehicles (UAVs) industry, has experienced robust growth in recent years. I'd like to share some data with you. Currently, the number of UAV companies holding valid Remotely Piloted Aircraft Systems (RPAS) Air Operator Certificates exceeds 14,000. Additionally, over 225,000 individuals hold UAV operator licenses. In the first half of this year, nearly 608,000 UAVs were newly registered, representing a 48% increase compared to the end of 2023. The cumulative flight time of UAVs reached 9.816 million hours, an increase of 134,000 hours over the same period last year. These figures clearly indicate that China's low-altitude economy is entering a new phase of rapid growth.

To foster the sound development of the low-altitude economy, the CAAC, as the industry's regulatory body, is committed to fulfilling its responsibilities by adopting a comprehensive approach to promote the innovative development of new types of UAVs while accelerating the transformation and upgrading of traditional general aviation. Building upon its efforts in strengthened top-level design and planning guidance, the CAAC has focused on the following five aspects:

First, strengthen airworthiness certification system and capacity building. We have worked on airworthiness certification of traditional piloted aircraft, optimized technical standards in the UAV sector, and explored and innovated the UAV airworthiness certification modes to better adapt to the airworthiness review requirements for the UAV research and development, design and production.

Second, optimize infrastructure construction standards. In response to the new demands for planning, layout and function of general airports in the development of the low-altitude economy, we've improved construction and operation standards for general airports, temporary taking-off and landing points, and vertical taking-off and landing sites. We've also guided local authorities in improving infrastructure planning and construction for UAV usage.

Third, promote the construction of low-altitude service and guarantee systems. We've expedited the implementation of airspace classification and management to fully utilize low-altitude airspace resources. In collaboration with local governments, we've made efforts to enhance the communication, navigation and surveillance capabilities of low-altitude UAVs in space, air and on land. We've also improved the flight service system at national, regional and flight service station levels, gradually providing one-stop service for low-altitude flights.

Fourth, strengthen safety operation supervision. We've further clarified and implemented regulatory responsibilities of all parties, and established safety operation rules and regulatory policies for various flight activities under converged operation scenarios, including transport aviation, general aviation and UAVs.

Fifth, standardize market management. Focusing on market access, supervision during and after implementation, and consumers rights protection for different scenarios and business forms, we've worked to stimulate market vitality, standardize market order and expand market scale, aiming to establish a favorable industrial ecology for the low-altitude economy.

Moving forward, we will continue to actively participate in the formulation of various relevant international standards and policies of the International Civil Aviation Organization (ICAO), promote China's low-altitude economy and share our operational experience in this sector. These efforts aim to build a better global policy environment for the industry's international expansion.

The Poster News APP:

As we have observed through our daily reporting, rural road construction is important for improving people's travel and quality of life. In May this year, General Secretary Xi Jinping made important instructions on further promoting the construction, management, maintenance, and operation of roads in rural areas, and called for the implementation of a new round of rural road upgrading campaigns. What aspects will the MOT focus on next to facilitate people's travel and improve their daily lives? Thank you.

Li Xiaopeng:

Thank you for your interest in rural roads. The construction, management, maintenance and operation of roads in rural areas is initiated and promoted by General Secretary Xi Jinping. It is a moral and political project that is for the people's wellbeing and grounded in the needs of the people. It has made an important contribution to poverty alleviation and the building of a moderately prosperous society in all respects. As of the end of last year, the total length of China's rural roads stood at 4.6 million kilometers. As General Secretary Xi Jinping emphasized, the project has achieved notable achievements in boosting the sense of fulfillment, happiness and security among rural residents, and has brought them wealth, happiness, connectivity and revitalization.

As you just mentioned, on the 10th anniversary of General Secretary Xi Jinping's first important instructions on the project, in May this year, he once again made important instructions on it, fully affirming the achievements of the project and putting forward clear requirements and expectations for promoting its high-quality development on the new journey of the new era. We must study his instructions carefully and implement them thoroughly.

We will continue to work hard and make sustained efforts. China has a vast territory, extensive rural areas, and uneven levels of development. Rural roads represent our most extensive infrastructure network, serving the largest population and providing the most widely accessible public service. Their strong public welfare nature demands our consistent effort on this new journey.

We will improve policies and regulations, promoting the formulation of Regulations on Rural Roads and developing the 15th Five-Year Development Plan for Roads to solidify the general framework of the country's rural roads system.

We will further enhance governance capacity by deepening the reform of the rural roads management and maintenance system, optimize the "road-chief" long-term operating mechanism, and continuously stimulate the impetus and vitality for high-quality development of the construction, management, maintenance and operation of rural roads.

We will also implement a new round of initiatives to improve rural highways. These include enhancing the road network, safety measures, transportation services, governance capabilities, travel amenities, beautiful village development, industrial support, and employment and income generation opportunities.

Moving forward, we will thoroughly study and implement the important instructions made by General Secretary Xi Jinping. In cooperation with all regions and departments, we will continue to promote high-quality construction, management, maintenance, and operation of roads in rural areas. We strive to write a new chapter in building China into a country with great transportation strength, particularly in rural areas. This effort will provide strong support for advancing Chinese modernization.

China Daily:

Recently, the Trans-Caspian International Transportation Route (TITR) was launched, further improving the accessibility and convenience of regional logistics. What measures has the transportation department taken to ensure smooth international logistics channels and improve the international logistics supply chain system? What specific work has been carried out in this regard? Thank you.

Li Xiaopeng:

Thank you for your interest in international logistics. Accelerating the construction of an international logistics supply chain system is crucial to ensure smooth domestic and international circulation, facilitate the export and import of goods, and maintain the security and stability of global industrial and supply chains. In recent years, we have undertaken a series of efforts to strengthen network construction, enhance service capabilities, and boost exchanges and cooperation.

First, we have strengthened overall planning and top-level design. Together with relevant departments, we have formulated a series of policies and measures to promote the building of diversified international logistics channels and encourage collaboration between logistics companies and firms throughout their industrial chains.

Second, we have actively expanded our international logistics network. China has established maritime shipping routes to major ports worldwide, with container shipping routes connecting more than 100 countries and regions. For years, China has ranked first globally in maritime transport connectivity. In terms of air cargo, our international air cargo service has extended to over 60 countries and regions. Hong Kong and Shanghai have emerged as the first and third largest international air cargo hubs, respectively. Additionally, China has signed agreements on international road transport with 22 Belt and Road partner countries. As for rail transportation, China-Europe freight trains have reached over 220 cities in 25 European countries. Overall, China has made significant progress in developing its global logistics network.

Third, we have redoubled our efforts to enhance international freight services. China has developed an international logistics service system with international shipping as the mainstay, supplemented by international air freight, China-Europe freight trains, international postal services, and international road transport. More than 95% of China's foreign trade is seaborne, and international air freight has become the primary mode of transport for high-end goods that are high value-added and time-sensitive. In 2023, China's express delivery sector handled 3.11 billion parcels all around the world, including those from Hong Kong, Macao, and Taiwan, effectively supporting the rapid development of cross-border e-commerce. Last year, China-Europe freight trains operated a total of 17,000 trips, shipping 1.9 million twenty-foot equivalent units. Additionally, China's international road freight volume rose by 105% year on year. We have made significant progress in transport services across shipping, air freight, international postal services, and international road transport.

Regarding the TITR mentioned by the reporter, we organized its opening ceremony on July 3 in cooperation with transport authorities in Kazakhstan. Chinese President Xi Jinping, who was on a state visit to Kazakhstan, and Kazakh President Kassym-Jomart Tokayev attended the ceremony. This marked the first time vehicles from China arrived at a Caspian Sea port using a highway link, signifying the establishment of a comprehensive, multi-dimensional network integrating road, rail, air and pipeline transportation. This development strongly supports the security and stability of the China-Europe logistics supply chain.

Moving forward, we will collaborate with relevant departments to focus on opening-up and cooperation. We aim to promote the construction of diversified international logistics channels and continue to advance international logistics connectivity. Thank you!

National Business Daily:

In recent years, China's postal and courier industry has seen robust expansion, making life more convenient for people but also posing certain security risks. What specific measures has the State Post Bureau taken to ensure the safety of delivery channels? Thank you.

Zhao Chongjiu:

Thank you for your questions. As you mentioned, the rapidly growing express delivery industry has provided significant convenience for people while also introducing certain security risks. We recognize that the delivery network encompasses many service points and extensive transportation routes. It has wide coverage and involves the separation of people and goods. The industry is also quite economical, offering both affordability and speed. Unfortunately, criminals can exploit these characteristics for various illegal activities. Moreover, the process involves multiple elements and stages, including parcels, personnel, vehicles, facilities and data exchange. This complexity makes safety management challenging. Given that delivery services are closely related to people's daily lives, their safety is crucial to both national security and public well-being. The postal administration, along with the entire industry, has consistently adhered to a people-centered development philosophy, balancing development and safety. We are committed to ensuring the safety and smooth operation of delivery channels while maintaining industry stability. To address these challenges, we have primarily focused on the following areas of work:

First, we have actively improved the safety management system for the postal and express delivery industry. In line with the characteristics of the industry, we have established a three-in-one model of real-name registration, parcel inspections at collection and machine-based security checks. Real-name registration means that senders must provide their real names when sending items, inspections at collection refers to conducting simple checks during the collection process, and we have also installed security screening equipment, forming a three-in-one risk prevention and control model. We have issued regulations on items prohibited for delivery and deepened comprehensive delivery safety management. 17 departments have jointly launched special actions to ensure safe delivery, strengthening efforts to fight terrorism, drugs, pornography and illegal publications, as well as crack down on telecommunications and internet fraud, thereby contributing to greater safety in China.

Second, we have conducted regular hazard inspections and rectifications. We have implemented a three-year action plan to fully tackle basic safety issues, focusing on four key areas: non-compliant equipment and facilities, inadequate on-site management, improper employee clothing, and non-compliant operational practices. These special rectifications aim to standardize safety management of mail and parcel delivery services, effectively preventing major safety production accidents. We will strengthen safety supervision and administrative law enforcement, and urge the headquarters of delivery enterprises to fulfill their unified management responsibilities across the network and strengthen manual and tech-based inspection capabilities to improve the basic safety level.  

Third, we have increased the implementation of technology-based safety management projects. We have launched the "Green Shield" project for supervising safety in delivery channels, established a big data management platform, and carried out technology development and application for intelligent security screening and intelligent audio-visual monitoring in the industry. This allows for the dynamic tracking of mailed items, detection of potential hazards, early warnings for incidents, control of risks and traceability of responsibilities. At the same time, we have promoted the application of privacy waybills and strived to build a technological "protective shield" to safeguard personal information security.  

Fourth, we have ensured the stable operation of the industry. We have protected the legitimate rights and interests of couriers, strengthened the training of safety inspectors in the industry, and promptly investigated and resolved conflicts and disputes. We have promoted delivery enterprises to sign labor contracts with their employees and pay social insurance for them, and promoted the implementation of policies related to stabilizing terminal delivery fee calculations and vocational training policies. We have strengthened network stability monitoring, continuously improved the mechanism for smooth operation of the industry, promptly identified and addressed issues such as mail and parcel backlogs and network interruptions, and actively created a safe and stable delivery service environment. Currently, nearly 500 million parcels are processed every day, and the industry's overall security risks are controllable.  

Next, we will thoroughly implement the overall national security concept, vigorously enhance the safety management capabilities of delivery channels, provide high-level safety guarantees for the industry's high-quality development, and make new contributions to safeguarding national security, social stability and the safety of people's lives and property. Thank you.

Shou Xiaoli:

There are two reporters with their hands raised. We'll take two final questions.

Jimu News: 

On May 1, the national railways recorded 20.69 million passenger trips, setting a new single-day record. What achievements has the railway sector made in boosting the country's strength in transport and in serving economic and social development? What are the key tasks going forward? Thank you.

Fei Dongbin:

Thank you for your interest in the railway sector. As a backbone of the comprehensive transportation system, railways serve as important national infrastructure, a major livelihood project, and a main artery of the national economy. In recent years, while strengthening its own development, the railway sector has made notable achievements in promoting the building of a nation with strong transportation and serving economic and social development. The key achievements are as follows:

The scale and quality of the railway network have been continuously improved. By the end of last year, the length of railways in operation in China reached 159,000 kilometers, including 45,000 kilometers of high-speed rail, forming a well-structured, extensive, well-arranged, safe and efficient railway network.

Railway transportation services have been constantly improved. The passenger and freight railway system embraces a more diverse range of goods, and transportation capacity continues to improve. Services such as online ticket and meal booking, high-speed rail transit and multi-modal transport have made travel and logistics more convenient and efficient.

The upgrading and replacement of equipment and technology have accelerated, and the innovative application of independent, intelligent and green technologies has been sped up. High-speed rail technology has set international benchmarks, and the Fuxing high-speed train has won the special prize of the National Science and Technology Progress Award. The CR450 science and technology innovation project has made significant breakthroughs, and the new energy locomotives developed by CRRC have rolled off the assembly line for the first time.

We have achieved remarkable outcomes in enhancing Belt and Road Initiative cooperation. Bilateral and multilateral cooperation and exchanges in the railway sector have been deeply promoted. Projects such as the China-Laos Railway, Jakarta-Bandung High-speed Railway, and Mombasa-Nairobi Standard Gauge Railway have achieved significant benefits. China-Europe freight trains have truly helped form a "golden transport channel" for trade between Asia and Europe.

Next, we will closely follow the decisions and deployments of the CPC Central Committee and the State Council, focus on key tasks, and continue to promote high-quality railway development, contributing to the great cause of building a strong country and achieving national rejuvenation.

We will optimize the layout, strengthen connectivity, build up lines and reinforce links in the railway network. We will enhance the construction of general-speed and heavy-haul railways, accelerate the development of intercity and suburban railways, and promote the integrated development of comprehensive transportation infrastructure.

We will enhance the railway sector's sci-tech innovation system, advancing basic research and cutting-edge technology innovation. Our focus will be on making breakthroughs in core technologies for key areas, striving to achieve self-reliance and strength in science and technology in the railway sector.

We will deepen the restructuring of the transport network, facilitating a shift of bulk commodity transport from road to rail. We'll extend dedicated railway lines to ports, industrial parks, factories and mines. We will vigorously develop intermodal rail-water transportation, high-speed rail freight, and cold-chain logistics, thereby reducing the logistics costs of the whole society.

We will promote the research, development and application of new equipment, technologies and products, forge a modern railway industrial system, and enhance the green and low-carbon transformation through large-scale equipment renewals.

We will deepen bilateral, multilateral and regional cooperation and exchanges in the railway sector. We will promote railway connectivity with neighboring countries, accelerate the construction of the New International Land-Sea Trade Corridor, improve the quality and efficiency of the China-Europe Railway Express, and better serve the high-quality development of the Belt and Road Initiative.

Thank you.

Shou Xiaoli:

This will be the last question.

Yicai:

Reducing overall logistics costs is an important measure to improve economic efficiency. In 2023, the ratio of total logistics costs to GDP decreased compared with the previous year. What measures will the Ministry of Transport take to further reduce logistics costs? Thank you.

Li Xiaopeng:

Thank you for your interest in our efforts to reduce costs, improve quality, and enhance efficiency in the distribution process.

Effectively reducing logistics costs nationwide is a key task in this year's national economic agenda. As key fields, the transportation and logistics industries play an important role in achieving this goal. In recent years, we have made significant efforts to reduce costs, improve quality, and enhance efficiency, achieving positive results.

First, we have been continuously improving the transportation and logistics infrastructure network. As mentioned earlier, we have built the world's largest high-speed rail network, the most extensive expressway network, the biggest port cluster, and the most comprehensive postal and express delivery network, all of which play crucial supporting roles in logistics development.

Second, freight logistics continue to operate efficiently. In 2023, we handled approximately 150 million tons of cargo transportation and delivered 445 million postal and express deliveries daily. The efficiency of cargo transportation and circulation has maintained a high level.

Third, we've seen continuous optimization of our transportation structure. In 2023, the proportion of cargo transported by railways and waterways increased by 1.4 and 3 percentage points, respectively, compared to 2017. This indicates an ongoing improvement and optimization of the transportation structure.

Fourth, transportation and logistics operations have become more efficient and convenient. We have effectively reduced logistics costs by vigorously developing multimodal transport. For example, Ningbo-Zhoushan Port has innovated a "single document" system for multimodal transport, achieving "one-time consignment, one price quotation, one document throughout and one settlement" for sea-rail combined transportation. This has helped to reduce logistics costs by approximately 500 yuan per container on average.

Although we have made various achievements, there is still significant room for improvement compared to developed countries in the logistics industry. For instance, while the cost of individual logistics segments is relatively low, the operational cost of the entire chain remains high. In addition, the efficiency of resource allocation and circulation needs further improvement. Furthermore, the adjustment of our transportation structure and the development of multimodal transport services must be further deepened to achieve broader implementation of the "single document" system and "single container" system nationwide.

Next, to address the aforementioned issues, we will organize and carry out a special action to reduce costs, improve quality, and enhance efficiency in transportation logistics. We will devote significant effort to make structural, systemic, institutional, technical, comprehensive, and operational improvements in this regard. We will accelerate the construction of the main framework of the integrated multidimensional transportation networks, especially the implementation of the inland waterways connectivity project and the railway freight network project. We will advance the strengthening and extension of national comprehensive freight hubs, ensuring smooth transportation and logistics infrastructure networks. Furthermore, we will adjust the transportation structure, leveraging the comparative advantages of various transportation modes, promoting appropriate use of highways, railways, waterways, and airways, and continuously advancing multimodal transport services. We will encourage the construction of dedicated railway lines into ports, industrial parks, and factory areas, improving the combined efficiency of comprehensive transportation. Additionally, we will also improve the standards and management for the "single document" system and "single container" system in multimodal transport services, accelerate the cultivation of multimodal transport operators with full-service capabilities, steadily expand the scale of international shipping fleets, aviation fleets, China-Europe freight trains and international road transport, thereby improving the diversified international logistics network.

We believe that through the concerted efforts of all parties, greater results will be achieved in reducing costs, improving quality and boosting efficiency in the transportation and logistics sector. This will lead to a more complete network, more efficient operations, more optimized management and more considerate services. We will work to pursue high-quality development and make greater contributions to constructing a modern industrial system and creating a new pattern of development. Thank you.

Shou Xiaoli:

Thank you, Mr. Li. Thank you to all the speakers and the journalists who participated today. Today's press conference is hereby concluded. Goodbye, everyone.

Translated and edited by Yan Bin, Yuan Fang, Wang Ziteng, Liu Sitong, Liu Caiyi, Wang Yanfang, Li Xiao, Ma Yujia, Lin Liyao, Li Huiru, Cui Can, Yan Xiaoqing, Zhang Junmian, Huang Shan, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.